Mainland VS Freezone Companies in UAE
Mainland Company A mainland company is simply an onshore company that is registered with the government authority of the relevant Emirate. The trade licence is issued by the Emirate's Department of Economic Development. A UAE Mainland Company is distinguished primarily by its unrestricted trading opportunities. When an investor invests in a mainland company in the UAE, the company is authorised to trade both in the UAE and outside the
Freezone Company A free zone company is one that is formed within a special jurisdiction that falls under the jurisdiction of a specific Emirate Free zone jurisdictions have their own rules and regulations, as well as a government regulatory body known as the Free Zone Authority. The Free Zone Authority is in charge of issuing trade licences. A UAE free zone is distinguished by the benefits of 100 percent foreign ownership and tax breaks. A free zone company is only permitted to conduct business within the free zone and outside of the UAE.
Difference between Mainland Company and Freezone Company
Now let us move on to the major differences between a Mainland and Freezone Company in UAE. Following are the some key differences• Ownership of Business • Scope of Business • Office Space • Visa Eligibility • Company Audit • Capital Prerequisite • Approvals related to Business Setup
Ownership of Business Mainland
If a foreign investor forms a business establishment in the UAE mainland, The UAE government has allowed for 100 percent foreign ownership for the businesses located on the mainland.
Freezone The foreign investor is the sole owner of the company. It is not necessary to assign the shares to a UAE local sponsor. As a result, the role of a local sponsor is irrelevant in this case.
Scope Of Business Mainland The foreign investor is the sole owner of the company. It is not necessary to assign the shares to a UAE local sponsor. As a result, the role of a local sponsor is irrelevant in this case.
Freezone Certain restrictions apply to companies incorporated in any of the UAE free zones. Free zone companies are permitted to conduct business both within the jurisdiction of the free zone and outside of
Office Space Mainland A minimum office space requirement of 140 sq.ft is required for a UAE mainland company when it comes to physical office space.
Freezone A physical office space is not required for a Free zone company. It is possible to establish a free zone company with or without premises. Virtual offices are permitted in the
Visa Eligibility Mainlan d
Freezon e
There are no visa eligibility restrictions
Certain restrictions apply to free zone
for mainland companies in the UAE. The number of
companies in terms of visa eligibility. In most cases, the
visas issued is determined by the size of the
number of visas issued ranges from one to six. The UAE
workspace.
visa packages differ depending on the free zone jurisdiction.
Company Audit
Mainlan d
Freezone
Financial Audit is mandatory for a UAE Mainland Company
The process of preparing a financial audit for a free zone company varies depending on the jurisdiction of the free zone.
Capital Prerequisite Mainland The legal structure of a UAE mainland company determines the minimum capital requirement.
The minimum capital requirement of a freezone company is set by the Emirate in which the company is established.
Freezone
Approvals Related to Business
Mainland The mainland companies must seek approval from the Each free zone has its own set of rules and regulations that are enforced by various government bodies such as the Department of Companies formed within the ju Economic Development, Dubai Municipality, and the Ministry of Zone.
Freezon Each free zone has its own set of rules and regulations that apply e to all companies that are formed within its jurisdiction. External approvals from government bodies and agencies that are not members of the free zone are not required for the establishment of a free zone company.
Conclusion I hope this clarified the major differences between a Mainland and a Free Zone Company in the UAE. Dhanguard assists investors and entrepreneurs in establishing their business dreams on the UAE mainland as well as in free zones. If you would like to learn more about establishing a mainland or free zone company in the UAE, as well as the costs associated with doing so, please contact our team of business advisors and consultants.
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