If you plan to start a business in Dubai, one of the first decisions is obtaining a mainland license or a free zone license. Both options have their advantages and disadvantages, and it is important to understand the differences between them to make an informed decision. Click this link to check Dubai mainland license cost.
Mainland license
A mainland license allows you to conduct business activities anywhere in Dubai, including within the city limits. The license is issued by the Department of Economic Development (DED), the government body responsible for regulating businesses in Dubai. With a mainland license, you can conduct business with local clients and government entities, and you have access to the entire Dubai market.
One of the main advantages of a mainland license is that you can choose any business activity, and there are no restrictions on the number of visas you can obtain. You can also operate from any location within Dubai, and there are no requirements for a physical office space.
However, there are some disadvantages to obtaining a mainland license. The licensing process can be time-consuming and complex, and strict regulations must be followed. For example, a mainland license requires a local sponsor who holds a 51% share in the company, which means you will not have full control over your business. Additionally, certain business activities are reserved for Emirati nationals or companies owned by them, which means foreign-owned businesses cannot conduct them.
Free zone license
A free zone license allows you to conduct business activities within a specific free zone, an area designated by the government for specific types of businesses. There are over 30 free zones in Dubai, each with its own set of rules and regulations. Free zones are designed to encourage foreign investment, and they offer several advantages over a mainland license.
One of the main advantages of a free zone license is that you can have 100% foreign ownership of your company, which means you have complete control over your business. You also have access to a range of services and facilities provided by the free zone, including office space, warehouses, and support services. Additionally, there are no restrictions on the number of visas you can obtain, and the licensing process is generally faster and simpler than obtaining a mainland license.
However, there are some disadvantages to obtaining a free zone license. You are limited to conducting business activities within the free zone and cannot conduct business activities outside of it. Additionally, there are restrictions on the types of business activities that can be conducted within each free zone.