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Why Do Most People Opt for Mainland Company Setup Over Free Zone?

Why Do Most People Opt for Mainland Company Setup Over Free Zone?

If you’re based in the UAE, you might be wondering, why do most people opt mainland company setup in Dubai over Free Zone? After all, the free zone offers all the benefits of a traditional business, like tax exemptions and the ability to conduct business with foreign investors. But there are other advantages to the mainland as well. Here are some of them. You can also trade with the mainland, which is beneficial if you want to scale your business.

Tax exemptions:

Mainland enterprises are entitled to receive tax exemptions for their activities. As long as the business is registered on the mainland, it does not need to pay corporate tax on its profits or capital. Companies registered on the mainland can also be 100 percent owned by the owner. No yearly audits are required to determine whether the business is registered correctly. In addition, the registration process is straightforward. This means that a mainland business owner does not have to worry about the costs of maintaining an accounting system and keeping track of the profits and losses.

Freedom to conduct business with foreign investors:

Until now, foreign investors have been required to partner with a local sponsor to open a business on the mainland. However, with the recent amendments, the government has allowed foreign investors to have 100% ownership of their businesses on the mainland. This policy will increase mainland business activity while providing more security to foreign investors. Read on to learn more about the advantages of setting up a mainland business. We have listed the top benefits of doing business in the UAE.

A mainland company can operate anywhere in the UAE:

One of the most common challenges when setting up a business in the UAE is deciding whether to open a free zone or a mainland limited-liability company. Although both types have their advantages, there are certain differences. A business must have a physical office space and pay tax in the free zone area on the mainland. Unlike the free zone, a mainland company can operate anywhere in the UAE.

The freedom to conduct business with foreign investors on the Dubai mainland is essential for the success of foreign entrepreneurs. For instance, the government offers a specialized visa to foreign entrepreneurs who establish a business in the UAE. It allows foreign entrepreneurs to work and live in the country for three years after establishing a company. However, foreign entrepreneurs must ensure that they comply with the requirements of the law. Moreover, the UAE government has strict laws protecting consumer interests and local businesses.