- The Dubai Expo is set to be held next year, further solidifying Dubai’s global status.
- The Dubai government offers favorable guidelines for investors, allowing company formation in two regions: the free zone and the mainland.
- Dubai free zones offer benefits like 100% tax exemptions, 100% ownership, no import/export duties, and no capital deposit condition.
- However, businesses operating in free zones cannot conduct commercial activity on the mainland.
- For mainland businesses, the mainland offers a larger audience, government subsidies, trade with mainland companies, and shareholder board opportunities.
- For service sectors like real estate development and tech companies, free zones offer state-of-the-art infrastructure and modern workstations.
- For manufacturers of goods or suppliers, an L.L.C. on the mainland offers access to a large demographic segment and maintains business correspondence with stakeholders.
A company formation in Dubai will take you less than 24 hours if you follow the right guidelines. As a global city, Dubai is home to a number of small to mid-sized enterprises catering to a worldwide target audience. If you are also enticed by the prospect of a company formation in Dubai, then read on.
The Potential of Dubai
Dubai is home to the largest expat population in the Emirates. The city is a lifestyle destination for many. The diversity of norms and values means Dubai is always an alluring prospect for businesses. The Dubai Expo to be held next year (as a result of COVID-19) will further cement Dubai’s place as one of the leading cities in the world.
To appeal to both local and foreign investors, the Dubai government has laid out favorable guidelines for investors. As with the rest of the Emirates, company formation in Dubai can take place in two regions: the free zone and the mainland.
Free Zone Benefits
The benefits of opening a business in one of many Dubai free zones are particularly rewarding when you are part of a small to medium-sized enterprise and are not in a position to offer majority of the shares to an Emirati national. Other than that, the Emirati government has established 30 free zones to foster business in the region; chief among them is the Dubai Silicon Oasis. Here are some benefits of company formation in a Dubai-free zone:
- 100% tax exemptions on earnings
- 100% ownership of the business
- No import/export duties
- No condition of capital deposit
However, a business operating from the free zone will not be allowed to conduct any commercial activity in the mainland.
Mainland/L.L.C Company Benefits
If you take the normal route of a business setup on Dubai mainland, you’ll have more ground to play with. The purchasing power of consumers is greater than ever, and with the right mix of production, marketing and supply, you can easily create a need for your product/service. Here are some of the benefits of a company formation on Dubai mainland:
- Big Audience: Vast Opportunities
- Government Subsidies
- Ability to Trade with any mainland company in UAE
- The ability to get shareholders on board
So, Which One is Best Suited To Your Business?
Both forms of business have their pros and cons. Our verdict is that if your business is inclined towards the service sector, such as real estate development or tech companies, then we would suggest you setup a business in one of the designated free zones, as you will have access to state-of-the-art infrastructure and modern workstations. If you are a manufacturer of goods or supplier, then an L.L.C. on the mainland would do your business ambitions well. Since you will have access to a large demographic segment and be able to maintain business correspondence with your stakeholders,.