Free zone companies are exempted
from doing business outside their jurisdiction.
Free zone is a jurisdiction or a
region offering easy company formation, uniquely designed for international
businesses and foreign investors. Free zone companies in Dubai receive tax
benefits and 100% ownership to expatriates.
As per law, the Department of
Economic Development (DED) is the only accountable authority for issuing licenses
outside the free zone.
Free zone jurisdictions do not authorize
companies registered under the free zone authorities to conduct business in
Mainland Dubai. Most trading companies in the free zone are completely restricted to do business in
Dubai Mainland. But few professional companies are given leverage.
A restricted free zone company
can proceed with doing business in Dubai Mainland by getting specific license
approvals and the right documentation from the Department of Economic
Development (DED) in Dubai.
Free zone companies can also opt
to get connected with a distributor who has a DED license to further proceed
with doing business in Dubai Mainland.
Besides this, free zone companies
can conduct business in Dubai Mainland through a civil work company, limited
liability company or by establishing a branch office.
This depends on the type of
activity being conducted and the nature of business. Proposed location of the
business also matters. Trading companies act as distributors and sell outside
the free zone through other agents or re-sellers.
Service-related companies like
consultancy firms; are pretty straightforward. Contracting, Maintenance, Real
estate and some other businesses would be more suitable in a non-free zone
area.
Also, restaurants, gyms, retails
outlets which are very location dependent makes more sense to operate in the
non-free zone area.
For any further queries or to
understand the difference between a Mainland business setup and free zone
company formation speak to our professional business advisor.
The most important part is to
understand which jurisdiction best fits your line of business activity and how
economical the particular option is.
PMC Solutions DMCC is a Corporate
Service Provider specialized in designing bespoke solutions for Business Setup,
and Family Residency for foreign and local investors, willing to establish and
grow their businesses in the entire UAE.
PMC Solutions has been
established to provide complete company incorporation, administration and
management services in all major jurisdictions in the UAE where it is
pioneering the concept of Free zone and Offshore Incorporation.
No comments:
Post a Comment