When establishing a business in the United Arab Emirates (UAE), entrepreneurs often face the decision between setting up a mainland company or opting for a company located in a free economic zone. In this article, we aim to provide a comprehensive overview of the key differences between these two business structures. 

Mainland Company 

A mainland company is registered with the Department of Economic Development (DED) of each emirate in the UAE. This type of business enjoys the privilege of operating throughout the country and beyond its borders, but certain types of activities may require a local sponsor or local agent

Advantages of a Mainland company:

• Widespread Operation: Operate anywhere in the UAE and internationally without geographical limitations.
• Broad Activity Scope: Engage in a wide range of business activities without restrictions.
• Government Protection: Enjoy the oversight and support of government agencies to safeguard your business and its owners.

Free Zone Company 

A company operating in a Free Economic Zone maintains full ownership and enjoys a number of benefits over mainland companies. Free zones are governed by their own regulatory bodies and operate under their own laws and regulations.

Advantages of a Free Zone company:

• Business Scope: Operate within the free zone and conduct international business with ease.
• Visa Access: Simplified process for obtaining visas for employees.
• Streamlined Processes: Faster and more streamlined registration and licensing procedures.
• Specialized Facilities: Access to business-friendly infrastructure and facilities tailored to specific industries.

The choice between a company on the mainland and a free zone depends on the scope and nature of your business. If you intend to operate within the UAE and abroad –– then the solution is a free zone. However, if your company’s plans include only operations inside the UAE, a mainland company is preferable. 

Our experienced KAIDZEN BIZ team is here to guide you every step of the way, ensuring a smooth and successful launch for any type of company. 

Got questions? Reach out to our team—we’re here to help!