Want to do a big job in the UAE? Please check this company registration strategy!

At present, the global business landscape continues to expand, and more and more foreign companies are turning their attention to the UAE, a hot business land full of opportunities. However, when you are new to the UAE, the first key decision is to choose the company's place of incorporation-whether it is a free zone full of features or a continental zone with unlimited potential. Today we will have a good chat to help you make the most suitable choice for you.

Free Zone Company

there are more than 40 free zones in the UAE, each of which is like a "small world" tailored for foreign companies ".

The biggest attraction of the policy advantage free zone is the ultra-high tolerance for foreign investment. From 2021, although 100 per cent foreign ownership is also allowed in some businesses in the mainland, the free zone has been at the forefront in this regard, allowing foreign investors to wholly own the company without concern. Moreover, for eligible free zone enterprises, the corporate income tax rate of "qualified income" is directly 0%, and most of the hard-earned money can be put into their own pockets!

Development opportunities In the free zone, offshore companies can be set up, such as holding intellectual property rights and providing virtual services. Offshore companies are particularly convenient to operate. In addition, free zone enterprises are not restricted by the Emiratisation plan, do not have to worry about meeting the requirements of compulsory employment of Emirati citizens, and can form their own teams more freely. Moreover, in terms of import and export products, the free zone has natural geographical advantages and policy convenience, which is very friendly for export-oriented businesses such as international logistics and cross-border e-commerce.

mainland company

take a look at mainland companies, which apply UAE federal law and are regulated by the Ministry of Economy of each emirate. After the introduction of the new company law in 2021, the mainland's attitude towards foreign investment has become more friendly. Previously, foreign companies had to appoint local agents in the UAE to set up branches. Now this mandatory requirement has been abolished. Foreign enterprises or individuals can set up 100 percent of foreign companies in most non-strategic industries.

Market prospects For those companies that want to conduct business directly in the mainland, the advantages are very obvious. They can directly reach local customers without the help of distributors or agents, which greatly reduces intermediate costs and improves operational efficiency. Moreover, the business choices of enterprises in the mainland area are wider than those in the free zone, and there are opportunities to undertake government business, which can bring stable income and good reputation for enterprises.

Need to consider the factors in the mainland registered companies also have some need to pay attention to the place. Under certain circumstances, enterprises need to employ UAE employees on a pro rata basis, which may increase the difficulty and cost of human management to a certain extent. In addition, compared with the free zone, the tax burden of companies in the mainland is heavier, and some industries still require local agents. These are factors that must be carefully considered before making decisions.

Teach you how to choose

1. Be the boss of cross-border e-commerce and international logistics: Free Zone is your best choice, 0 tax +100% holding!

2. Entrepreneurs who want to deeply cultivate the local market in UAE: Going directly to mainland companies, although the cost is higher, can connect with local customers and is more cost-effective in the long run!

In general, free zones and mainland companies have their own advantages. If your business is mainly oriented to the international market, focusing on tax incentives, corporate decision-making independence and offshore business operation convenience, the free zone is undoubtedly the best choice; but if you pay more attention to the vast space and rich business opportunities of the local market, you are willing To invest more energy in tax and manpower management, the mainland can meet your needs.

Zhuoxin Enterprise provides agency services such as domestic and foreign company registration, bank account opening, annual tax return, agency bookkeeping, trademark registration, ODI Overseas Investment Filing, etc. If you have any business needs in this area, please feel free to consult our online customer service!