Mainland Vs Freezone, Find out which jurisdiction is better for your company

Dubai Mainland vs Dubai Freezone

If you dream to be an entrepreneur, undoubtedly Dubai is the place to be. The indigenous population of Dubai, the strategic location, the trading communities, the infrastructural outburst, the investment incentives and the world-class lifestyle has created an immense impact on the city, promoting many company formations in Dubai. Doing business in Dubai, is not only profitable but also contributes and encourages growth.

But did you know that Dubai is divided into special economic zones and jurisdiction?

Dubai is a prime region with maximum number of freezone jurisdictions offering numerous business opportunities. On the other, Dubai mainland company setups have the least restrictions and provides an easy, affordable and free trade possibilities, unlike freezone in Dubai. Nevertheless, it has always been a debatable topic among new investors and foreign commercial entities on whether to start mainland business in Dubai or setup a freezone establishment.

So, if you are having the same doubts and wondering if it is ideal to setup a freezone business or to go for LLC company formation in Dubai. Here is a comparative analysis to help you decide on what suits your business the best Dubai Freezones or Dubai Mainland.

Pointers Dubai Freezone Dubai Mainland  
Description & Authority Dubai Freezone is a special economic zone. It provides jurisdictional benefits and are categorized based on the activity or industry. Dubai freezones are monitored by an independent freezone authority appointed specifically for the given jurisdiction. Dubai mainland is a geographical area also treated as an economic zone monitored by the Department of Economic Development (DED) mainly preferred by professionals, trading entities and LLC business setups.
Ownership Company registration in Dubai freezone offer the major attraction of 100% ownership. Businesses in the Dubai freezones can be completely owned and managed by foreign entrepreneurs. With a free zone company registration in Dubai investors can apply for any type of license and get 100% ownership. Usually the main reason people go for Dubai freezone is the ability to have 100 percent ownership in the given jurisdiction. Company registration in Dubai mainland offers ownership in two ways – a professional company registration in Dubai will offer 100% ownership of the company. However, professional company registration in Dubai do need a UAE national as a local agent, as they help investors with governmental documentation and annual PRO services. A commercia, industrial or tourism license under an LLC company setup structure in Dubai requires partnership with a UAE national. The UAE national is given 51% partnership in the company. Partner with the right UAE local and get complete control over the company with a written legal document and the power of attorney to the company.
Area of Business Under a freezone company registration in Dubai, the areas of business operations are limited and can-do business outside the UAE. However, if freezone companies want to do business inside the country, they can appoint a local distributor, who has a company in Dubai mainland. Dubai mainland has no limitation geographically and can-do business in the UAE as well as internationally.
Licensing Process The process of getting a Dubai freezone license is easily done through a single window system. Although, an organization might require certifications from diverse judicial bodies. However, the process is integrated by an independent freezone authority. The freezone authority may be a private or a governmental entity, depending which freezone an investor decides to register the company in Dubai.   A company registration in Dubai mainland is completely regulated by the government authorities. Mainland company registration in Dubai requires investors to obtain a DED license from the Department of Economic Development. Registering a company in Dubai mainland requires certifications and permissions, depending on the business activity and legal structure of the company.  
Cost The cost of setting up a company in Dubai freezone depends on the freezone region an investor would want to register the company. Further, it also depends on the nature and the size of the company. A freezone company setup in Dubai may have a range of expenses such as minimum share capital, local agent, attestations, visa and immigration, bank procedures, etc. On an average a company setup in freezone may range anywhere between AED 42,000 to AED 60,000 & above.   The cost of company registration in Dubai mainland also includes numerous variables. Company registration costs will include license Fees, trade name registration, UAE service agent or UAE local partner fees, rent of the office space, Ejari fees, other administrative services and certifications – yet again conditional to the business activity and company structure. On an average the cost of company registration in Dubai mainland starts from AED 25,999 for a professional company setup and AED 29,999 for an LLC company setup all inclusive. (Know more). The nature of the business also defines the cost of company setup in Dubai; hence the cost may vary considering such terms.  
Limitations Company registration in Dubai Freezones may have limitation such as – Company registration in Dubai mainland may have certain limitations such as –

Would like to know how much would it cost for company registration in Dubai? And where exactly should you register in Dubai mainland or freezone?

If you are still not sure and are confused between Dubai mainland and freezones – just contact Shuraa Business Setup.

Shuraa Business Setup is a leading business setup service provider assisting establishments, entrepreneurs and SMEs in company formation across various jurisdictions. We recommend the right type of business setup for you and offer exclusively rates on company setup in Dubai. For more details send us an enquiry today! Call us on +971-44081900 or WhatsApp +971507775554.