UAE Business Zones
UAE Business Zones
Main Land
Main Land
The license fees for forming a company in the mainland is higher than cost of forming a company in Free zone and thus, it makes sense to setup a company in mainland only if you intend to provide services or sell products to customers in theUAE. However, the disadvantage with mainland is the 9% Corporate Tax which gets levied and therefore all exporters prefer to setup the company in the freezone. Mainland Companies are beneficial only if you intent to sell something in the Mainland like some Retail store or Restaurant etc. For somebody whose clients are mainly outside UAE, it makes sense to be setting up the company in a free zone.
MainLand
In Main land, You are free to do business with local and international Markets. if you wish to trade directly with the local market in the UAE, you’ll need to work with a mainland company who will charge a fee.
The license fees for forming a company in the mainland is higher than cost of forming a company in Free zone and thus, it makes sense to setup a company in mainland only if you intend to provide services or sell products to customers in theUAE. However, the disadvantage with mainland is the 9% Corporate Tax which gets levied and therefore all exporters prefer to setup the company in the freezone. Mainland Companies are beneficial only if you intent to sell something in the Mainland like some Retail store or Restaurant etc. For somebody whose clients are mainly outside UAE, it makes sense to be setting up the company in a free zone.
With in UAE and also with international market,you are free to do business with local and international Markets. If you wish to trade directly with the local market in the UAE, you’ll need to work with a mainland company. The license fees for forming a company in the mainland is higher than cost of forming a company in Freezone and thus, it makes sense to setup a company in mainland only if you intend to provide services or sell products to customers in the UAE. However, the disadvantage with mainland is having Mainland Company is that, VAT and Corporate Tax is applicable. Tax which gets levied and therefore all exporters prefer to setup the company in the freezone. Mainland Companies are beneficial only if you intent to sell something in the Mainland like some Retail store or Restaurant etc. For somebody whose clients are mainly outside UAE, it makes sense to be setting up the company in a freezone.
Free Zone
In Free zone you get the following benefits:
- 100% Foreign Ownership. Low Setup Cost.
- 100% transparent business setup services in UAE.
- 0% corporate and personal tax
- 100% company ownership
- 100% repatriation of capital and profits
- No currency restrictions, and
- 100% import and export tax exemption
The only drawback of registering a company in a Free zone is that a free zone cannot sell to retail customers located within UAE. It can deal with International Customers (Retail as well as Businesses) and can also deal with Registered Businesses in UAE but cannot deal with Retail Customers who are located inside UAE
FreeZone
In Freezone you get the following benefits:
- 100% foreign ownership. Low setup cost.
- 100% transparent business setup services in UAE.
- 0% corporate and personal tax
- 100% company ownership
- 100% repatriation of capital and profits
- No currency restrictions, and
- 100% import and export tax exemption
The only drawback of registering a company in a Freezone is that a freezone cannot sell to retail customers located within UAE. It can deal with International Customers (Retail as well as Businesses) and can also deal with Registered Businesses in UAE but cannot deal with Retail Customers who are located inside UAE
OffShore
In OffShore zone you get the following benefits:
- 100% foreign owner shop
- All shareholder’s details will be kept confidential by law.
- Get registered business address in Dubai.
- Tax free and friendly business environment
- Politicaly stable place with highly developing Economy
- Control free foreign exchange
UAE also has multiple offshore jurisdictions. Simply put, offshore companies are businesses that are registered in UAE but run outside of the country. Similar to freezones, different licensing authorities govern offshore companies in UAE. Each licensing authority has its own way of issuing, renewing, and cancelling a business license.
Some times external approvals are also required to setup a company. The licensing of business necessitates approval from authorities and certain ministries such as financial institutions and banks, insurance companies, Central Bank, Ministry of Economy and Commerce. Manufacturing businesses require the special consent from the Ministry of Industry and Finance, whereas medical and pharmaceutical products need approval from the Ministry of Health. For oil or gas production, there are several other authorities from whom you need approvals. Some major activities such as insurance and jewellery setups require a financial guarantee which is issued by a bank already operating in UAE.
Off Shore
In Off Shore zone you get the following benefits:
- 100% Foreign Owner Shop
- All Share Holder’s details will be kept confidential by law.
- Get Registered business address in Dubai.
- Tax free and Friendly business environment
- Politicaly stable place with highly developing Economy
- Control Free Foreign Exchange
UAE also has multiple offshore jurisdictions. Simply put, offshore companies are businesses that are registered in UAE but run outside of the country. Similar to free zones, different licensing authorities govern offshore companies in UAE. Each licensing authority has its own way of issuing, renewing, and cancelling a business license.
Some times external approvals are also required to setup a company. The licensing of business necessitates approval from authorities and certain ministries such as financial institutions and banks, insurance companies, Central Bank, Ministry of Economy and Commerce. Manufacturing businesses require the special consent from the Ministry of Industry and Finance, whereas medical and pharmaceutical products need approval from the Ministry of Health. For oil or gas production, there are several other authorities from whom you need approvals. Some major activities such as insurance and jewellery setups require a financial guarantee which is issued by a bank already operating in UAE.