Company Setup

Dubai is currently the world’s most rapidly expanding employment hub, with over thousands of businesses registered in both its mainland and free zones. It is an exceptionally developed city in the United Arab Emirates, where commercial operations account for more than 45% of the country’s GDP.

Given that Dubai is the heart of business activities in the UAE, with strong economic indicators, there is no better time than now to invest in Dubai.

Many local and international businesses have been able to establish themselves in the Middle East with the assistance of Sprintz Solutions. Presently, they are enjoying the fruits of their investments in the market.

There are two options for business setup in UAE:

  • Mainland business setup;
  • Free zone business setup.

To conduct business in the UAE mainland, you must have the assistance of a local sponsor or a local service agent.

Industrial and trading companies must have a local sponsor who will hold a maximum of 51% of shares, while the foreign investor will hold the remaining 49%.

Professional companies must have a local service agent, but the foreign investors will have full ownership of the shares, amounting to 100%.

Advantages of Mainland Company Registration:

  • 0% corporate tax as well as 0% Personal income tax;
  • You can do business with any part of the UAE;
  • Mainland company setup in UAE has the flexibility to rent office everywhere;
  • A wide range of license types as well as activities are available;
  • It allows to conduct business in all of UAE;
  • Mainland Company Formation has no yearly mandatory audit.

The alternative option is to establish a free zone business. Free Zone Companies are wholly owned by the local or foreign investor who establishes them, and therefore, there is no need for a sponsor or agent to serve as a liaison to manage the venture.

However, a free zone business is only permitted to operate within the free zone and outside the UAE, meaning that it cannot engage in business activities outside of the Free Zone in Dubai or any other Emirate. This presents a challenge if your primary market is Dubai/UAE.

Nevertheless, it is possible to appoint a broker or service agent for local market distribution, which is legally permissible.

In contrast, if you establish a company on the mainland, you can conduct business activities both locally and globally.

There are several advantages that a free zone company can enjoy, including :

  • Free zone businesses are exempt from personal income and capital gain taxes.
  • 100% foreign ownership is permitted in free zone companies.
  • No corporate taxes are levied on free zone businesses.
  • Import and export duties are not applicable to free zone enterprises.
  • Capital and profits can be repatriated fully, up to 100%.
  • Free zone companies benefit from modern and efficient communication infrastructure.
  • Free zone labour laws are liberal, with no recruitment issues.
  • The working environment in free zones is attractive.
  • Free zone companies have access to excellent support services.

Operation-oriented services in the Middle East and other Countries