Let’s make it easy for you to understand the difference between both options and guide you properly how to start the right license type in order to have the legal platform and conduct your business ethically in the United Arab Emirates.
Majority of entrepreneurs get confused big time specially when they see very low prices for Free Zone registration that can start from 8,000 Emarati Dirhams to have a license, but majority of those options work for particular individuals who are looking to establish a specific business that conduct its business only inside the particular Free Zone Authority and doesn’t work for many others who basically aim to provide their activities over the mainland of the respective emirate.
Let’s make it a bit easier for you. Have a look at the questions below:
Are you planning to sell your products to individuals in Dubai?
- If you answer (Yes), you should consider Mainland.
- If you answer (No), you may think about Free Zone option or even an Offshore type of license.
Are you planning to have an Office in Dubai?
- If you answer (Yes) and you choose a Free Zone option, your office should be only inside the Free Zone you have chosen and CAN NOT be somewhere else.
- If you answer (No) and you choose a Mainland option, you can have a very cost effective Mainland License that DOES NOT require a physical office and operate based on a Flexi Desk.
Consultants used to promote the Mainland business in a wrong way that eventually reflected an absolute wrong feedback from entrepreneurs, while the Mainland license is considered as one of the most straightforward registration that gives you a complete ease of running your business without any restrictions and complications.
Free Zone gives eligibility to conduct business only inside the respective chosen zone and if you want to expand over the mainland you can do that only if you appoint a mainland entity as a Local Agent for you, so that you can sell your goods through that agent.
The Mainland Option, if registered in Dubai for example, gives you the freedom of conducting business all over Dubai without any geographical restriction unlike the Free Zone license.
The Free Zone license however can be very beneficial for some other projects that don’t involve or require providing direct activities over the mainland.
You know what, enough reading! Call one of our experts at Beyond Limits Business Center and you will get assisted instantly.
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