Flexibility to do business in DED over Free Zone
The most important and generally the first doubt of the entrepreneurs willing to setup business in dubai UAE. starts with the question whether a DUBAI MAINLAND License or a FREE ZONE LICENSE can fulfill their dream business. So here are the basic differences which the entrepreneurs should know before taking the final decision.
Reason to select Dubai Mainland Business Over Free zone
Freedom of working area
In Dubai Mainland License the entrepreneur can do the business all over the U.A.E and as well as outside U.A.E. Whereas in FREE ZONE entrepreneurs are fenced within that particular FREE ZONE jurisdiction and can do business only through a third party in mainland and hence there is a threat to disclose the business secret to the third party and also an increment in the product/service to reach the end clients which mugs up a negative evaluation.
Bank Account Opening
With a Dubai Mainland license banks are more keen to open the account quickly with less compliance issues and hence operating the finance of the business becomes smoothed whereas in free zone opening a bank account sometimes involve extra documentation to clear the compliance issues.
Reason to select Free Zone Over Dubai Mainland
Cost Effective
The new born entrepreneurs always look for a cost effective solution to start with their new idea and hence Free zone license can fulfill their wishes and provide them the first step instead of burning a hole in their pocket as Dubai Mainland doesn’t only comes with a heavy budget but it also comes with some external approvals from different authorities (RTA, DTCM,MOL etc) which makes the total cost sky reaching.
Ownership
Entrepreneurs can enjoy 100% owner ship for any legal type of license where in Mainland the entrepreneurs need to share 51% of share with a UAE National and can only attain a maximum 49% share of ownership.
Customs Duty
Entrepreneurs do not need to pay 5% Customs Duty if they are trading inside the free zone where in Mainland it’s required to pay 5% customs duty.
Final Words
Cost effectiveness can give you a start but to enhance your business it is always recommendable to go for a Dubai Mainland License. Dubai Mainland License will give you the window to contact and trade with any and every possible client you will meet in U.A.E. When you can have your base really strong in U.A.E. it will certainly help to also spread your network world wide.
This blog post is written by Ms. Ananya. Feel free to call today for a more detail. Please send inquiry to info[at]flyingcolour[dot]com or call +971 4 4542366.
