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Mainland vs. Free Zone Business Setup

Once the decision has been made to start your company in Dubai, the next step is to figure out the jurisdiction of your company. The UAE offers business setup in Mainland, any of its 40+ free zones as well as offshore company formation. Depending on which business activities you wish to conduct in the UAE, investors can choose the location that best suits them.

Mainland businesses in the UAE fall under the direct supervision of the Department of Economic Development and have the economic freedom to conduct business anywhere within and outside of the country. On the other hand, free zones are industry specific economic zones that act as autonomous entities. In the UAE, both Mainland and Free Zone companies enjoy 100% business ownership by expats.

With the implementation of Corporate Tax in UAE, companies are gravitating more towards free zones as they are exempt from paying Corporate Tax. However, free zone entities are still required to register for Corporate Tax in UAE.