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Local, Free Zone, or Offshore: Which Dubai business setup suits you

There are a number of different business models in UAE that you are permitted to benefit from. These include the local business, free zone setup, and registration. Usually, business owners find it hard to make the right choice and are confused about which one will suit them the most. So, here is an overview of all three setups and then you can conclude which one would work the best for you.

Local business

For the individuals that look towards starting a retail business in UAE, the local company will work the best. It would be registered with Department of Economic Development, DED, and a commercial license would be offered if you have a local partner working with you and holding a 51% share. The commercial license allows you to conduct the activities such as wholesale and retail trade. You are allowed to do a number of different businesses that include construction, real estate, stockpiling, communication, transportation, retail trade, and a few more.

However, if you wish to carry a professional license than the commercial one, you can hold the 100% ownership of business to yourself despite you being a foreign investor.

Free Zone Company

A free zone company allows a person to hold 100% business ownership as a foreigner. There are no taxes applicable and the office and warehouses are also available for you. One can both rent as well as own a physical office but it has to be inside the free trade zones that are defined. Also, you can get visa for yourself as well as for the family members.

However, the marketing comes with some restriction and there are some limitations on your when conducting business in UAE. All the free zones come with certain regulations and every zone has a different set of activities that are permitted.

Offshore setup

This setup works best for the individuals that want to do business outside UAE only. However, they are willing to benefit from the local banking facilities and tax exemptions. Also, it gives you complete ownership of business too.

Moreover, you won’t be eligible for visa and can’t become a UAE resident with sponsorship of your offshore business.

 

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