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Mainland in the UAE is also called an onshore company. It is licensed by the Department of Economic Development (DED) of the related emirate which is allowed to do business in the local market as well as outside the UAE without any restrictions.
UAE has about 40 free zones, and the corporation can operate in the same free zone incorporated in a defined emirate jurisdiction. Entrepreneurs seeking tax advantages choose to establish a free zone.
Free Zone vs. Mainland Companies: Key differences. Understanding mainland vs Freezone company setup options
100 % owned by foreigners.
Mainland: Physical office space of a minimum of 200 sq. ft is mandatory for any mainland company in the UAE.
Freezone: No office space required. virtual offices office is optional.
Mainland: A mainland company is free to do business anywhere in the UAE.
Freezone: Business manufacturing and selling) outside free zone not allowed
Mainland: An audit is prepared at the end of every financial year by the mainland companies.
Freezone: Auditing not required for all FZ companies.
Mainland: Depending on the size of the office or work premises, a residence visa is given.
Freezone: Residence visa granted Depending on the size of the office or work premises.
Mainland: According to the legal form of business, minimum capital requirements for mainland company formation vary.
Freezone: The Minimum capital requirement depends on the emirate for a free zone company formation .
Mainland: Required Permission from authorities like DED, The Ministry of Labour (MIL), Dubai Municipality & The Ministry of Interior (MOI).
Freezone: For the approval of any company inside its jurisdiction, free zones have their own rules, and outside the free zone, they don’t require approvals from authorities.
Originally posted 2021-09-29 09:46:26.