Dubai free zone companies

Setting up a business in the United Arab Emirates will require relevant information that the investor or entrepreneur needs to be aware of, especially if one of his/her main goals is operating a free zone company in the mainland. Information regarding Dubai free zone companies and their possibilities to do business in the mainland is essential in this case.

In this article, you will learn everything you need to know about Dubai free zone companies and their capacity of doing business and operate in the mainland nowadays and the initiative that allows certain companies to run their businesses in Dubai mainland. Here you will also find additional information about the companies that are allowed in the mainland and more. Let’s observe:

1. What are the free zone companies and the mainland companies?

2. Differences between UAE free zone companies and Dubai mainland companies.

3. What is the initiative that permits Dubai free zone companies to operate on the mainland?

4. Activities that are allowed to perform once the investor obtains the permit.

5. What documents will you need to obtain the permit?

6. Some Dubai free zones in which you can set up your company.

7. How can Connectfz help you to obtain more information regarding this affair?

1. What are the free zone companies and the mainland companies?

Before starting, it would be good for investors and entrepreneurs to have a clear concept of free zone companies and mainland companies, which are very different types of businesses and, therefore, it is the reason why free zone companies were not allowed to do business in the mainland. In the case of Dubai free zone companies, it is now possible and here you will find out the reason.

In the UAE, free zone companies are located in areas known as free trade zones, in which it is possible to trade different types of goods, products, and services under free zone laws. Free zones are also known for being special places that help local and international companies to reach their goals and enter the market successfully, along with the different benefits that free zones provide. Nowadays, free zones are home to thousands of companies that you can see in any UAE free zone companies list on the web.

As for the mainland companies, these entities are licensed by the DED (Department of Economic Development), depending on the emirate in which these companies operate, and in this case, it would be Dubai. This type of company is allowed to do business in the local area and outside the country, which is possible due to the few restrictions that regulate Dubai mainland companies.

Depending on the business type and activities that you desire to perform, you will find many advantages and probably some disadvantages in both free zone and mainland jurisdictions. Keep reading to learn more about the differences between both jurisdictions and the benefits that they can offer to foreign investors and entrepreneurs to boost their businesses efficiently.

Here you can learn more about free zone companies running their businesses in Dubai mainland.

2. Differences between UAE free zone companies and Dubai mainland companies.

Differences between UAE free zone companies and Dubai mainland companies

Both types of companies have remarkable differences that can be turned into advantages or disadvantages depending on the investor’s point of view. If you analyze the information of Dubai free zone companies and Dubai mainland companies, you will be able to find the following contrasting elements:

  • Ownership: free zone companies do not have the need of requesting the presence of a UAE national agent. On the other hand, it is mandatory for mainland companies to have a local sponsor or service agent. The structure may vary according to the type of license that the mainland company requires. For instance, when it is about a professional license, 100% of shares are held by an ex-pat partner, and one UAE National agent is appointed as a local service agent. In the case of the commercial license, the LLC (Limited Liability Company) ownership structure will be the one for the company.
  • Visas facilities: the free zone license usually offers 2 visas only, but the number of visas can vary (from 3 to 6 visas max.) depending on the smart office package. As for the mainland license, the investor or entrepreneur can obtain unlimited visas depending on the number of hired employees.
  • Scope of business: free zone companies can only do business within the free zone they are located in or internationally. On the other hand, mainland companies are free to do business in the local market, the free zones, anywhere in the country, and abroad, which is a clear advantage if the investors look forward to expanding their business.
  • Office space: mainland licenses require at least 200 square feet to be leased out on annual basis and the DED (Department of Economic Development) will be the pertinent authority that must issue the license. As for the free zone license, it is incorporated with or without physical office space. It could be an advantage depending on the type of business that the investor manages.

Take into consideration that each of these differences can favor your business when expanding to the mainland, as long as they are convenient for the type of business that you manage in the free zone you are in.

Here you can read more about free zones and our top reasons why you should start a business in a UAE free zone.

3. What is the initiative that permits Dubai free zone companies to operate on the mainland?

Even though the free zone business entity operation has been restricted in the respective free zone, this situation was very different before. Previously, free zone companies had the alternative of expanding their businesses to the mainland, but then, authorities restructured the system and reduce it to two options; setting a different business in the mainland or setting a branch office. Besides, it was necessary to obtain approval from the DED (Department of Economic Development) to expand their business operations to the mainland effectively.

However, this case has been changing for the better in the last few years. There is a slow-changing process in the UAE law regarding this matter. An initiative has been developed by the Department of Economic Development to allow all Dubai free zone companies to be able to apply for a new permit, which will make it possible for these companies to run their businesses and operations in the mainland without having the need of opening a branch office.

Although these are excellent news for many investors in the country, it is worth mentioning that this initiative only applies to those companies that are located in the Dubai free zones. Besides, not all companies will be able to obtain the permit, but only the ones that are related to certain types of business activities, which we will mention next.

If you are planning to expand your Dubai free zone company’s operations to the mainland, this new initiative will be a great advantage for you to establish and achieving new goals without having to restructure a whole new business or a branch office or subsidiary on the mainland. By contacting a professional business partner, you will be able to learn more about this new law.

Here you can learn how to set up a foreign company branch in the United Arab Emirates.

4. Activities that are allowed to perform once the investor obtains the permit.

Dubai free zone companies

Among the activities that are now permitted to be performed thanks to this new initiative, you will be able to find the following ones:

  • Accounting and bookkeeping.
  • Accounting and office machinery rental.
  • Aircraft cleaning services.
  • Aircraft upholstery services.
  • Boat upholstery services.
  • Business events management.
  • Cargo loading and unloading services.
  • Cost control and risk management services.
  • Cyber security consultancy.
  • Data entry services.
  • Documents destroying storage.
  • Electronic chips programming.
  • Exhibition organization management.
  • Facilities management services.
  • Facilities resource management consultancy.
  • Feasibilities study consultancy.
  • Festival organization management.
  • Financial instruments quotation services.
  • Fine arts consultancies.
  • Health consultancies.
  • Health food consultant.
  • Health planning consultancies.
  • Information technology consultants.
  • Internet consultancy.
  • Logistics consultancy.
  • Management consultancies.
  • Marketing research and consultancies.
  • Media studies and consultancies.
  • Network consultancies.
  • Noise control, vibration, and acoustics consultancy.
  • Occupational safety training.
  • Parliamentary consultancy.
  • Pharmaceutical consultancies.
  • Product design services.
  • Project management services.
  • Public networking services.
  • Quality and standardization consultants.
  • Radiology centers consultancy.
  • Science and technology consultancy.
  • Sourcing and procurement consultant.
  • Spa and fitness clubs consultant.
  • Technical installation consultancies.

Remember that you will be able to obtain this permit only if your company is related to any of these types of business activities. Otherwise, you will have to open a branch office if you desire to expand your business to the mainland.

Here you can learn some of the best small business ideas to set up a successful company in Dubai.

5. What documents will you need to obtain the permit?

If you are interested in obtaining this permit, you will be required to gather two main documents to complete your application and allow your company to operate on the mainland. The first document you will need is a copy of your license and the second one will be a NOC (No Objection Certificate) from the owner of the building or property.

By having these documents, Dubai free zone companies will be allowed to perform any of the business activities that were previously mentioned without worrying about anything. In case the investors desire to perform any other business activities while possessing a free zone company in the country, maybe establishing branches of their companies could be a better choice.

Here you can learn the ways in which you can obtain a general trading license in Dubai to run your business efficiently.

6. Some Dubai free zones in which you can set up your company.

If you are interested in setting up your company in a UAE free zone, you can choose the one you like the most, after analyzing the information and benefits of each one. In Dubai, you will be able to find some of the most popular free zones in the country, including these:

  • Dubai Airport Free Zone (DAFZA).
  • Dubai Multi Commodities Centre (DMCC).
  • Dubai International Financial Centre (DIFC).
  • Dubai South Free Zone.
  • Jebel Ali Free Zone (JAFZA).

Each of these free zones and many others will be favorable for your business, and the best examples you can find are the successful companies located in them, such as the Dubai Airport Free Zone companies and many others.

Here you can learn more information regarding logistics and warehousing services in the United Arab Emirates.

7. How can Connectfz help you to obtain more information regarding this affair?

You can discover many options and solutions by contacting an efficient business partner such as Connectfz. Our team will guide you and give you the information and recommendations that you need to successfully achieve your goals, which in this case would be operating your free zone company on the mainland.

By requesting our different services, you can also improve your company’s operations and make it more profitable and efficient. For instance, you can request our UAE market entry services to help your company find a convenient place within the local market. Our tax advisory services would also help you a lot by giving you the information you need regarding taxes in the country.

But if you need to improve internal operations and duties, like your human resources department’s tasks, you can request our HR consultancy services, payroll services, visa services, recruitment and staff outsourcing services, and many others that might find useful to make your business grow while operating in the United Arab Emirates.

Would you like to contact Connectfz to know more about company setup in UAE free zones and business activities in Dubai Mainland? If you have any question, do not hesitate to call us on +97143316688 or email us at info@connectfz.ae, and you will talk to one of our representatives that will gladly answer all of your questions.