Dubai is the world’s fastest growing employment hotspot in the world. Up to date, more than thousands of companies have been registered in Dubai mainland and free zones.
There are two options for business setup in UAE:
- Mainland business setup;
- Free zone business setup.
If you choose to conduct business in UAE mainland, you will be required the support of a local sponsor or a local service agent. The local sponsor will hold maximum of 51% of shares, and the remaining 49% of shares are for a foreign investor for industrial and trading companies. For a professional company set up, a local service agent is required, but in this type of company foreign investor will hold 100% of shares.
Second option is a free zone business setup. Free Zone Companies are businesses that 100% owned by the local or foreign investor who set it up. You don’t require a sponsor or an agent to act as a liaison to manage the venture.
A free zone business can only operate within the free zone and outside the UAE, which means no business can be conducted outside Free Zone within Dubai or any other Emirate.
This point poses a problem if your main market is Dubai/UAE.
However, you may legally appoint a broker or service agent for local market distribution.
On the other hand, if you setup a company in the mainland, you may carry out business activities both locally and internationally.
