What Distinguishes a UAE Mainland Company from a Free Zone?

Dubai offers a wide range of alluring options for businesspeople and Indian investors interested in learning more about this sector. You have the choice of starting your business in a free zone or on the mainland in Dubai. Also, businesses of all kinds and types prosper in the UAE, enabling foreign nationals to pursue their aspirations in the area. You must decide where to launch your company once you are in Dubai. It might be a mainland firm set up in Dubai, where you register an LLC with 100% ownership and have easy access to the local market. But, you can also select any of the free zone administrations. Entrepreneurs in India can simply connect with the business consultants at LegalRaasta.

Registration of Mainland Companies in Dubai

Any corporation based on the mainland is regarded as an inland firm, which means it is not constrained by any geographical boundaries established by law. You can also do business locally and globally thanks to the Dubai mainland business setup in Dubai. You have the option to conduct business both inside and outside of the UAE for both commercial and professional licenses. Read Also This - How Can a Real Estate Business Be Established Up in Dubai The Department of Economic Development (DED) also handles licensing and regulations for all mainland firms. You can have total operational control over your mainland business setup in Dubai by engaging with a LegalRaasta legal advisor. For a little annual fee, we also become your sleeping or silent partners and don't interfere with your business.

Registration of Free Zone Companies in Dubai

You can select any of the more than 40 free zones in the United Arab Emirates, each of which is controlled by a distinct authority with its own set of laws and regulations. Specialty sectors are served by numerous specialized free zones, such as the Dubai Media City for media and public communication and the Dubai International Financial Center for financial enterprises. For company formation in Dubai, a free zone business framework is affordable and offers a productive environment where several businesses can coexist and grow. Hence, if you pick the appropriate free zone, your business will expand swiftly.

Advantages of Opening a Company in the Mainland

  • A Dubai Mainland company registration in Dubai enables everyone to hold 100% of their company, whether they are an Indian entrepreneur or a local investor. Also, for company establishment, the expats need the assistance of a local service agent. While helping with paperwork and company registration, they won't have any official authority within the company.
  • When you work for a mainland company, you are totally excluded from paying corporation taxes. Additionally, no minimum capital requirement is necessary. All you have to do is pay the legally required VAT, which is one of the lowest in the world at 5%.
  • The UAE government releases a number of government consignments each year, and your mainland company set up in Dubai will allow you to take advantage of this opportunity.
  • The UAE's currency restrictions do not apply to foreign companies operating on the mainland, so they are not a problem. Also, you may easily apply for a number of visas to guarantee your family's security while visiting the Emirates in order to start a business in Dubai.
  • The ability to start the business of your dreams in mainland business with access to the prestigious local market of Dubai. Due to the phenomenal boom that various industries have experienced on the mainland for company formation in UAE.
Read Also This - How can I Apply for a Free Zone License in The UAE

Benefits of free zone business

  • For company formation in the Dubai Free Zones, foreigners also need the assistance of a local service agency. While helping with paperwork and company registration, they won't have any official authority within the company.
  • Your private information is never made available to the general public in free zones, which have their own rules and concentrate on specific economic sectors for business formation in Dubai. Further corporate support in the form of resources, labour, and other factors is also provided by these distinct legislations.
  • You are able to repatriate all of your profits while forming a free zone business in Dubai. Also, both personal income tax and capital gains tax are completely waived for you. Also, there are seldom any taxes levied on import and export levies.

What Are the Steps in the UAE for Starting a Business?

Knowing what makes Dubai's commercial district so well-known around the world, the idea of starting a business here seems only reasonable. By using the steps below, you may obtain an understanding of how to start your new business in the UAE:
  1. Establish the legal structure and corporate operations.
  2. Establish a trading name for your business.
  3. Decide on the ideal site for your business.
  4. Hire a workspace.
  5. To start a business in Dubai, you must apply for a business license.
  6. Obtain the necessary outside approvals.
  7. Create a business bank account.
  8. To open a business in the UAE, the following documents must be presented:
  • Passport-size images.
  • Copies of everyone involver’s passports.
  • Copies of the visa or stamp page.

What separates mainland businesses from those in free zones?

Factors Mainland Free zone
Business Ownership 100% of mainland businesses are owned by expats. Each free zone has an own legal system that supports 100% corporate ownership.
Scope of Business You can start your firm in a variety of industries and take full advantage of the opportunities on the mainland. If you want to start a business in Dubai, the scope and level of diversification are slightly lower than they are on the mainland.
Office Space There is no need to invest in a physical office in mainland companies. In the event that a free zone company is established, there is no requirement to invest in a physical office.
Visa Eligibility By obtaining more workspace for your company, you can submit an application for the required number of visas. Regarding the acquisition of visas, there are no secret limitations. The maximum anticipated permits are roughly 6, and once this threshold is reached, there may be limits on the visa application for company establishment in Dubai.
Number of Partners To register a corporation in Dubai, your mainland firm can have a maximum of 49 partners. You are only permitted to have a certain number of partners for your free zone business.
Taxation Laws There are no personal or professional taxes owed by you. You only have to pay the VAT (5%). Taxes are completely exempt in free zones.
Bank Account It's simple to open a corporate bank account for your business on the mainland, and you can also take advantage of your online presence. Complex documentation is needed to open a bank account for your business in a free zone authority.
Approvals related to business setup The Department of Economic Development, Dubai Municipality, Ministry of Labor, and other government agencies are just a few of the agencies that mainland businesses must request approval from. For all businesses established within the boundaries of a specific free zone, there are a set of laws and restrictions that apply.
Capital prerequisite The legal form of a UAE mainland firm determines the minimum capital requirement for opening a company in Dubai. The Emirate in which the company is created determines the required minimum capital for a free zone firm.
Company Audit A mainland UAE corporation must perform a financial audit. The process for creating a financial audit for a free zone company varies depending on the government overseeing the zone, and some are excluded.


We trust that the key distinctions between a Mainland and Free Zone Business in the UAE have been made clear to you. With the aid of LegalRaasta Company Setup Service in Dubai, investors and business owners can realize their dreams of starting a company in the UAE's mainland and free zones, therefore you should choose the correct one. It's best to work with us; our legal professionals will take care of everything for you. All facets of company formation in Dubai are covered by us, including paperwork, banking, and licensing. Please feel free to contact our team of business counsellors and consultants if you have any questions concerning mainland and free zone companies in the UAE or their specific business setup costs.
Parmeet Chhabra, a skilled content writer and editor at LegalRaasta since 2020, with a writing journey of over 5 years, specializes in crafting informative web pages and blogs over diverse domains like education, legal laws, government licences, web development, etc.

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