Difference between Mainland and Freezone in Dubai

Known for its business-friendly environment and strategic location, Dubai offers entrepreneurs several options for setting up a business. Two of the main options are Mainland and Free Zone entities. Gaining a deeper understanding of the differences between these two options is not only beneficial, but essential to making an informed decision tailored to your specific business needs.

Mainland Company

A Mainland company is officially registered with the Ministry of Economy and regulated by the Department of Economic Development (DED).

Benefits:

• 0% minimum capital requirement.
• Diverse business activity options.
• Conduct business with other mainland and UAE companies.
• Multiple branches allowed across Dubai.
• No currency usage restrictions.
• Full repatriation of capital and profits.
• Easy registration process with no yearly audits.

Free Zone Company

A Free Zone Company operates within designated self-governing areas in each Emirate, overseen by the Free Zone Authority (FZA). The benefits associated with choosing a Free Zone Company highlight its efficiency and advantages:

• 100% ownership without local sponsorship.
• Quick and easy company formation.
• 100% repatriation of capital and profits.
• Exemption from import and export duties.
• Shareholder information remains private.
• Relatively easy recruitment policy.
• Business advice and networking support provided.

Differences between Free Zone company and a Mainland company:

Office Space

• Mainland: Must have a physical office registered with Ejari.
• Freezone: Choose between physical or virtual business location.

Visa requirements

• Mainland: No restrictions on the number of visas.
• Freezone: Some restrictions, typically 6-7 visas.

Trade Flexibility

• Mainland: Trade within any city in the UAE and internationally.
• Freezone: Trade freely with countries outside the UAE and other Freezones.

Audit

• Mainland: Financial audit is a requirement.
• Freezone: Some Freezones may not require a financial audit.

Approvals for Business Setup

• Mainland: Requires approvals from various UAE authorities.
• Freezone: Easier approval process, especially for exporting or re-exporting.

Understanding the nuances of Mainland and Free Zone structures is critical to a successful business setup in Dubai. As you embark on this entrepreneurial journey, carefully consider the nature of your business and operational requirements to select the option that best suits your goals and vision. For expert guidance and a seamless business setup, partner with DET Group - your trusted ally in navigating the complexities of Dubai's dynamic business landscape.