Dubai mainly has three corporate jurisdictions, free zones, offshore, and Mainland. There is a main difference between all these three jurisdictions, which has to do with their purpose of existence. Free Zones doesn’t allow the business to conduct business outside Dubai, UAE.  An  Offshore company is not allowed to do business inside the UAE. In contrast to both, Dubai Mainland companies can do business both outside and inside the UAE. Moreover, Mainland businesses have to obtain their license from the Department of Economic Development in Dubai.

In September 2018, the Foreign Direct Investment Law (FDI) came into the picture. At first, the law focused on new opportunities for foreign investors in some business sectors. In July 2019, an announcement regarding the relaxation of restrictions for certain business sectors was made.

Before 2020, an investor had to form a 49-51% ownership contract with UAE nationals. The law prevented foreigners from owning more than 49% of a company in Dubai Mainland, UAE. Since March 2020, 122 business activities over three primary sectors have been granted the opportunity for 100% ownership, with the respective authorities being tasked with implementation. Find the complete list of 122 business activities across the following business sectors here.

• Agricultural Sector
• Manufacturing Sector
• Services Sector

Compared to other jurisdictions, it has a high setup cost, but the benefits weigh in the favor of Dubai Mainland.

A comparison between the three jurisdictions will give you the difference but will not tell you which of them is better on the whole, as it depends wholly on a particular business’s needs. So, what we do is help applicants find the right fit for their businesses. Freezones allows an owner to retain complete ownership of their business, but you can only conduct business activities in that free zone. It is better to have all the information at hand before you take the step.

For finding out how to start a business in one of the free zones, refer to our guide: Steps to Start a business in UAE: A complete guide.

In order to get your business recognized as a legal entity, you will require a business license. In Dubai, the department of economic development grants licenses to mainland companies as well as individuals. For free zones, the business licenses are issued by private authorities.

Additionally, you have to understand the four types of business licenses available:

• Industrial License, which is issued to industries manufacturing goods.
• Commercial License, which is Issued to general trading businesses.
• Tourism licenses are reserved for tours and travel industries.
• Professional license, which is Issued to service-related businesses.

For getting a business license for Dubai Freezones, you need to get in touch with the respective authorities.

Now, we are sharing the requirements for getting a business license for Dubai Mailand:

• Approvals from the Department of Economic Development as well as other authorities are necessary and need to be presented with your business license application.
• The presence of at least one business partner is mandatory while applying for business licenses.
• You need to have a finalized Trade name, business activities, and business’s legal structure.
• You need copies of passports and residency visas of all the business partners and managers.
• Foreign business partners need a NOC from the local sponsor.
• You’ll also need a registered Ejari and tenancy contract for your finalized office space.

Once you submit these documents, you’ll be assigned either a transaction number or a payment voucher. After you make the final payment, you can collect your business licenses.

Dubai Freezone:

• Complete ownership
• Comparatively low business setup costs
• You can’t perform business outside the free zone
• Some business are subjected to audits
• Business License provided by private authorities

Dubai Mainland:

• Complete Ownership for 122 business activities across three agricultural, manufacturing and service sectors.
• High business setup costs.
• Business activities can be conducted locally as well as globally.
• All businesses are subjected to audits each financial year.
• Business License provided by the Department of Economic Development.

Communication Skills: Although it’s strange to say that comfort and communication skills are factors that one needs to consider before they hire a business consultant, they seem quite obvious to many and are often neglected. Their communication skills as well as personality factors into your whole business relationship. Therefore, it should be taken into consideration. Consultants that can clearly put their views and ideas into words are more confident and aware of the business.

Experience and Knowledge: Experience is a key factor in selecting a consultant. Fortunately for us, technology has presented us with a unique opportunity to track down testimonials, references, and reviews. It helps find out things about a consultant before we invest in them. Initially, when you contact a consultant, ensure that they know what they are talking about.

An authentic consultant will not just make helpful suggestions but will guide you through the process by leveraging their networks. Any knowledgeable consultant will be to understand your issues and provide solutions for them. There is a high chance that they have already experienced similar issues with other clients and so can quickly offer you a solution. And if they haven’t experienced this before, they’ll still try to come up with a solution for it.