Demystifying Business Licenses in Dubai: Mainland vs Free zone vs DMCC – Which is Right for Your Business?

Are you planning of settling in Dubai, UAE? One of the first considerations you will have to do is decide where you want to set up your business. Dubai the commercial hub of the UAE offers many options for budding entrepreneurs such as: The mainland? Free-zone? Or DMCC? All of these zones have their respective pros and cons.

In this blog, Infolinks Business Consultants will discuss the benefits and disadvantages of establishing a business in each of these zones and which zone can be the right for your business. So without further ado let us begin this blog and read the entire until the end.

Free Zone Companies

Free zones are places where goods can be purchased and sold at preferential tax and customs rates. Operating in one of Dubai’s 30 free zones will give you access to 100% foreign ownership, 100% corporation tax exemption, 100% repatriation, and 100% investment funding. Apart from this free zone offers multiple other benefits that we will discuss further in this blog. If you want to set up your company then by hiring one of the leading business setup companies in Dubai you can ensure a hassle-free experience of setting up your business in Dubai. Read why hiring Infolinks Business Consultant can help you in multiple ways in our blog section.

Mainland Companies

Mainland companies (sometimes referred to as onshore companies) gain access to the regional market and markets outside the UAE. You must first receive a permit from the Department of Economic Development (DED) of the emirate to register as a Mainland LLC company, which you can do with the help of your business setup consultants in Dubai. Visa restrictions do not apply to mainland companies. The size of the leased office space or commercial facility determines the number of resident visas that are given. As a result, your business may be qualified for additional resident visas the bigger the office space. One visa is typically given out for every 80 square feet.

DMCC (Dubai Multi Commodities Centre)

The major benefit of DMCC is that up to 6 different business activities can be performed under one license. Whereas in other zones this facility is not available. In DMCC, you can select between flexi desks that are 20 to 30 square meters, offices that are 200 to 265 square meters and up to 2,000 square meters each, or offices that span multiple levels. Along with business setup companies like Infolinks help businesses obtain business licenses in Dubai and Golden visas in Dubai as well.

Let us now See how to select between Free Zone and Mainland

Corporate Tax

Before registering a company in Dubai, whether on the mainland or in a free zone, it is crucial to check the tax rates. Companies with mainland locations will be required to pay Corporate Tax at 9% on income over AED 375,000 per year starting on June 1st, 2023. Companies that are situated in the Free zone, however, would not be subject to taxation.

As a result, if you want to take advantage of the Corporate Tax Exemption, you should register in the Free zone rather than on the Mainland of Dubai because companies registered in the Free zone are not required to pay Corporate Tax for 50 Years. Consult a reputed company for business setup in Dubai free zone to get all the processing done smoothly.

Clients That Can Be Worked With

Companies with mainland locations can readily deal with both domestic and international clients, but this is not true of businesses with free zone locations in Dubai. A company with a free zone location in Dubai can easily conduct business with foreign clients, however, there are some limitations when working with a company with a mainland location. A free zone company may be able to do business with Mainland Companies in some circumstances but not in others. Whichever zone you may choose getting a proper trade license in Dubai is necessary to work smoothly.

Office Space

Companies from the Mainland are not allowed to register in a virtual space and are required to have an office with a minimum square footage of 200. Although the office space can be anywhere, having one is required.

However, having an office location is not required for Free zone businesses. A business with a free zone location can also run through a virtual office space. Because it saves money, the majority of business owners opt to register their companies in virtual office spaces. This helps them save money and get all the advantages of a free zone in Dubai. Processing of commercial licenses in Dubai for a free zone can be easily done by hiring Infolinks Business Consultant in Dubai.

Approving Authority

The Department of Economic Development (DED), a government agency, issues trade licenses in UAE for a mainland company, and regardless of where the company is located inside the mainland, the laws are the same.

On the other hand, for the free zone the local authorities where the company is registered issue the license. Varied free zones have varied sets of rules, and some free zones have stricter laws and compliance requirements than others. In either case, starting a business in the Emirates shouldn’t be a difficult task for you after hiring reputed Business consultant companies like Infolinks.

Time Required For Business Set-up

As the free zone authorities are permitted to issue licenses directly, free zone enterprises are simple to incorporate. Getting permission from the Department of Economic Development may take more time when starting a business on the Mainland.

Visa Restrictions

Mainland businesses may apply for Visas based on the amount of office space they possess. The number of Visas that can be issued increases with office space. There are various limitations on the number of Visas that Free zone businesses may apply for. The typical range of Visa applications is between 1 and 6, albeit this can vary from free zone to free zone and the rules keep changing as well. You can read about the new set of visa rules in our blog section.

Concluding Lines

Depending upon the nature of your business, and your visa requirements you can choose between Free Zone, Mainland, and DCC in Dubai to set up your dream business. Contact team Infolinks to set up your business today.