What type of company?
Planning to set up a company in the UAE but not sure which type would suit you the best? You are at the right place then, let us give you a quick overview.
There are several differences between a mainland and a free zone. The main differences lie in the nature of ownership, extent of liability, involvement of UAE nationals as partners or agents and nature of trade and economic benefits that can be achieved.
Some of the benefits of setting up a mainland company are: flexibility to do business in any part of the UAE, no limit on number of visas, wide range of business activities available for licensing, no corporate or personal taxes.
However, if you would prefer 100 per cent ownership of the enterprise without a local partner, you could go for a free zone company. It offers simple and quick licensing procedures, presence of the owner is not a requirement, no corporate or personal taxes.
Advantages of having a Local Mainland company:
- No taxes
- Direct access to local UAE market
- Almost no limitations on activities. Different approvals may be required for specific activities
- Easy to open bank account and to work with governmental bodies
- Large number of visas and less restrictions on nationalities compared to Free Zones
- No Minimum Capital Requirements
UAE Free Zone companies enjoy special conditions such as:
- 100% ownership of business, no requirement of local sponsor
- No corporate taxes
- Exemption from personal taxes
- Import/Export activities
- 3 years visas for investors, employees and family members
- Simple, fast and affordable recruitment and workforce processes
- Fast-track document clearance
- Different legal forms: FZE (1 owner) , FZC (2-5 owners), branch of foreign company
- Owner’s presence is not required
- Annual audit, NOC, capital is not required
- Affordable prices
- Straightforward procedure
- The widest range of activities including Travel, Finance and Real Estate consultancy
- Company registration even in 1 day
- UAE entry stamp is required (if applying for a visa eligible package)