Well, you’re contemplating setting up a biz in Dubai, right? The one question that pops into every entrepreneur’s mind is: Do you go for the mainland or the free zone? It’s simple to understand, but it can quickly go into confusing territory if you don’t pay attention to detail. I’ve seen many people go down that road of being lost for answers. That’s where Consulting.ae company setup guidance is of invaluable help to you.
Alright, so let’s take it apart like we’re having a coffee talk.
The UAE Mainland Company: What’s That?
The mainland business is registered in the Department of Economy and Tourism. It allows you to operate your business in all of Dubai and the UAE, no holds barred. You can negotiate business with the government, private businesses, or anyone off the streets.
For example, if you are in the business of retailing, restaurants, or services that require you to be mainland in the UAE, you should opt for the mainland. I mean, sure, there is some bureaucracy involved; you just enjoy more freedom in terms of setup.
What is a Free Zone Company Anyway?
A free zone is a specific area meant for attracting foreign investment. These mostly relate to things like media, tech, and healthcare. When you operate a business in a free zone, you will be accorded benefits such as full ownership and reduced documentation.
So this would be awesome for someone like you who may be working mainly from the net or working with exports or international customers. However, you can do this even as a local business here because you don’t necessarily need a storefront or a physical setup within the city or country for this.
However, what I found out was that you may need a local distributing partner or possibly a separate permission or license for directly conducting your biz here in the UAE.
Which One Gives You More Freedom?
Freedom means what exactly? When you consider that you may deal with anyone in Dubai without many worries, then the mainland will win hands down. But perhaps having 100% ownership with as few laws as possible? Then the free zone would be better.
Think about what you are doing day to day. Will it be seeing clients in Dubai, or will it be communicating via emails and money transfers? Either way will help determine what to do with your money.
What About Costs?
Free zones normally look like they cost less at the start. Free zones will have license deals, flexible office desks, and visa packages that can help reduce expenses at the start. Mainland options may require office space and approvals, increasing the cost.
However, the trick here is that it’s not merely about what the buying price will be. It might be cheap initially, but it might just be costing you money in the long run. It might be holding you back when you think about a year or two down the road.
What about Visas and Hiring?
Both allow you to obtain visas for yourself and your staff. Free zones have more defined visa options, while mainland companies may have more leeway, especially when expanding their staff.
If you can picture yourself employing a lot of workers or having multiple locations, the Mainland might work better for you. If your business remains small, a free zone would be okay.
Which One Fits Your Business?
It sounds weird, but companies do have personalities. Some companies are out there, public, and found within the locality. Then there are the silent or online companies that are global. Mainland would pertain to the former type of company, while the free zone refers to the latter type.
Take a pause there. Think about your business in a year from now. Where will your customers be? How will you be reaching them? That will answer your question.
Still Need Help? Are you still unsure and concerned about making mistakes? The consultants at Consulting.ae can help you out in making a decision according to the type of business and budget you have in mind. They provide genuine tips to ensure a smooth launch and growth of your Dubai business.
