The UAE is well known for its natural resources, developed infrastructure, and abundance of businesses. People move there every year to make the most of it.

The UAE is well known for its natural resources, developed infrastructure, and abundance of businesses. People move there every year to make the most of it.

Why Free Trade Zone Is Better Than The Mainland?

There are about 45 UAE free trade zones filled with different foreign companies. "Why free trade zones?" you might ask. The UAE consists of seven emirates, and they all have different laws in place. Plus, the regulations differ when it comes to building a company on the mainland compared to free trade zones. For example:

  • If you want to open a local company on the mainland and work within emirates, 51% of the business should be owned by a local citizen – a so-called sponsor;
  • A sponsor of such a local company doesn’t take part in running the business; however, he receives an annual remuneration;
  • A company located on the mainland has no limitations as to its minimal authorized capital, while the amount for a free trade zone company depends on the local provisions, etc.

However, in some cases, businesses like legal, consulting and audit companies don’t require a sponsor and can work across the whole country. Also, don’t forget about getting a license. There are different types of them which include trading, service and industrial licenses.

Finding a Professional Consultant 

As you can see, building a company in the UAE can be tricky. Experts agree that the most favorable conditions for business are in free trade zones like Dubai. To learn more about it, you can just Google it like business registration Dubai and study the requirements yourself or you can trust professionals to do it.

S.H. Business Advisor company deals with establishing companies in the UAE every day. They can help you choose the suitable free trade zone, define the type of license you need, facilitate the process of getting a residency visa and tax certificate. In just one day you can become a proud owner of a Dubai company.

Published by Alyssa Moylan