There are several reasons to consider mainland company formation in Dubai over free zone. You will be able to set up your office anywhere in the United Arab Emirates. Furthermore, mainland companies can benefit from a corporate tax exemption of 100 percent. These tax breaks are essential to the success of any enterprise. In addition, corporations operating in the mainland can also work on government contracts. This is not the case with free zone enterprises, as they can only work on commercial projects.
1: While free zones are advantageous for some businesses, mainland companies have more options for setting up a branch. In addition to choosing an office location, mainland companies can also open multiple branches in the UAE. Unlike free zones, mainland businesses can operate across the entire UAE economy instead of just in Dubai. One of the most significant differences between mainland and free zone corporations is the scope of business and the company’s ownership. Moreover, a free zone has a strict set of rules and regulations.
2: Another key difference between free zone and mainland companies is the tax benefits. For one, a free zone company is restricted to doing business within the free zone. But in a mainland company, there are no such restrictions. Moreover, a mainland company is not bound by the restrictions imposed by the government in the UAE. Thus, it is a better option for companies based outside the UAE. There are no currency restrictions, and capital can be repatriated without any difficulty.
3: While free zones are ideal for international businesses, they can be less ideal for some. Besides the tax benefits, mainland companies can also choose an office location for their company. This is particularly useful if you have multiple locations in the UAE. The mainland can also serve as a good home for multinational companies to conduct business in the region. This is a huge advantage for mainland companies.
4: Mainland businesses have more options. A free zone has many advantages, but a free zone has fewer advantages. For one, the free zone is very expensive. Mainland companies can afford to pay more. By contrast, a mainland company can have various options for establishing a business. It can even be used as a hub for international trade. The biggest advantage of a free zone is operating in different emirates.