Business set up and operation in the UAE is easier than ever. The industry is growing and industrial economies of scale have been achieved that has allowed various products and services related businesses to grow in size and provide premium quality to the market.
One change that has occurred in the business environment in the UAE is that many different types of business set ups have been given legal status to accommodate different business activities in the UAE. It is not only the business activities but also the different aspects of commerce and economy that needed to be adjusted in the legal framework of the country.
The different business zones that have been setup in the UAE are part of the change in UAE’s business environment. Free zone companies, mainland companies and offshore companies have been given different legal statuses and all of them are regulated differently.
The different types of business setup
All three types of business setups have their advantages and disadvantages according to the nature of your business activity.
Mainland business setup
The mainland business setups are the most useful setups because these businesses face no restriction over the area or scale of their activities.
- They are allowed trade within Dubai and beyond the city as well.
- There are no corporate taxes for these businesses and they get 100% of the profit.
- There is a need for local sponsors however, the registration process and requirements are easy to fulfill.
Free zone business setup
Although Dubai free zone companies are not provided with the freedom that mainland businesses enjoy, it is a fact that free zones have been able to encourage and promote different business industries in the UAE.
- Free zones allow ancillary and support services to operate and provide services that complement the operations of the industries operating within the free zone.
- 100% ownership of the Dubai free zone companies can remain with the business owners and tax incentives can be enjoyed by investors.
- Some zones allow different business activities under the same trade license Dubai.
Off shore business setup
This is the third type of business that can be formed legally. The rules and regulations pertaining to businesses set up in off shore zones are different than those in other zones.
- The company can be setup by those living outside the UAE.
- Low taxation is one advantage of this type of business setup.
- No physical existence of such companies is required.
- Costs are low and corporate bank accounts can be opened for the business setup
- All information regarding this type of business setup is kept private.
How can you opt out of the three business set up types?
To choose the right type of business setup for yourself requires you to first establish the nature of your business. All three types have their own advantages and one should be preferred over the other only according to your requirements. KWS Middle East allows you to take an informed decision using their expertise in company formation of all three types.
Support services provided by the consultancy allow you to reach your targets quicker than you expect once you have set up your business. Secondary tasks like visa services, trademark registration and product registration can be handled by the experts at the consultancy while you can focus on the more important activities of your business. Knowledge of the firm will also allow you to obtain documentation and authorizations like the trade license Dubai, easily.