One of the biggest dilemmas of company formation in the UAE is planning whether to set up in the mainland or in a free zone.
But this one decision literally signs you up for success in UAE’s business hub.
Choosing the right jurisdiction to operate in.
Now choosing the right one can be distorting; each jurisdiction has its own advantages, costs, and regulations, all of which are dependent on your target market, business model, expansion plans, and much more.
So why start a business in UAE free zones?
For new entrepreneurs and a more startup friendly environment, free zones are the way to go; they’re especially beneficial if you want to operate in a specific niche with ease and flexibility, as you can choose a mix and match of business activities under one business license, which even allows you to set up a shop or a store in the jurisdiction.
Company formation processes are comparatively quicker and way more cost effective.
However, businesses looking to scale in the market should opt for the mainland, as it allows companies to hire 20+ employees, which allows for greater expansion opportunities.
It is even more suitable for companies conducting more complex business activities, such as trading, real estate, consulting, etc., as they require vast market access.
Operating in the mainland also makes it easier for high risk nationals to obtain a visa in the UAE.