Mainland vs Free zone Company Setup

Dubai is always a prime attraction for business owners and it is the best place to start a business.  There are 3 different types of Business Setup in the UAE knowing which option is the best for your business and which one is the most profitable. The new business owners can start their business. On the other hand, the business owners face a lot of problems, while they want to start their business. We believe that, if being a business owner you want to start your business in Dubai, then you should have a clear idea about the company formation.

Mainland Company

Mainland companies are also known as onshore companies. With the help of the license, they all can run their business locally and even outside the United Arab Emirates.

Free Zone Company

As its name implies that it is the company, which is having its own rules and regulations behind running a business. There are around 40 free zones in Dubai. While opting for the Free Zone Company Formation, companies can easily grab advantages from tax optimization, and they can also get benefits from the incentives for the businesses.

Different Types of Business Setup in the UAE

  • Mainland business formation makes the business owner get the advantage from the employment visa. In other words, one can easily select employees for their company on their own. It is very much helpful in maintaining the workflow of the company.  But it is not possible in the free zone, as there are some terms and conditions for selecting employees.
  • Depending upon the type of the business, the cost of the mainland company setup and free zone company setup While you will choose mainland company setup, then there will be fewer import duties, but on the other hand, in free zone company setup, there will be higher import duties for a certain type of businesses.
  • In the case of the mainland company formation, the business owner must have a particular area, depending upon their business type. But in the case of a free zone license, one can set up their business without any physical space.
  • Having a local sponsor is very much important while choosing a mainland company formation. But Freezone company formation is completely different from it as it does not require any local sponsor or agent.
  • In the case of Mainland business formation, then the ownership of the foreign investor restricts to only 49% and the ownership is around 51%. Whereas the free zone company setup, there will be complete ownership of foreign ownership.


If still, you are having any doubt, then you take advantage of the services of Business Link UAE. They have the best team, who will resolve all your doubts related to business formation and make you in choosing the best company formation method according to your business type. You can directly visit them or avail yourself of the advantage of their free consultation services.

Corporate Sponsorship in UAE

Dubai is a big playground to flourish your corporate business. It is an international market that attracts customers from across the world. It is like a golden opportunity to set up your business in this trading hub especially when expo and shopping festival approaching the place. Like every coin has two sides, there’s another side to set up business in Dubai as well as have a corporate sponsorship in UAE.

Benefits of Corporate Sponsorship in Dubai

Here the Emirati holds 51% of the company share as stipulated by the law. It is not necessary for the UAE national to have any experience or qualification in the field of business he/she is sponsoring. This does not mean that the owner is second. All rights related to the company’s management, financial decisions, manpower management is taken by the owner. The sponsor avoids getting into these criticalities. Another amazing fact is that the corporate sponsor does not restrict to 51% of profit share, rather they decide to receive a lump sum payment annual as finalized while signing the contract. This step keeps all profit in the pocket of the business owner only.

set up business in Dubai

The major reason behind not opting for individual local sponsors and selecting corporate sponsors is individual liberty related to the company’s decision and financial security.

Documents Required:

You need to present all documents related to the company set up including id & education proofs, office space renting documents, bank statements, visas, etc.

Why Business Link UAE?

Go for corporate sponsorship in UAE with Business Link UAE. Here are some of the benefits you would want to have for your business too

  • Easy business set up
  • Quick and hassle-free documentation even in the Arabic language
  • Help finalize corporate sponsor in UAE
  • Assure no interference from the sponsor and complete control of the business with the owner
  • Retention of financial profits with the owner
  • The detailed contract between owner and sponsor to reserve the rights of both parties
  • Obtaining all kinds of visa and licenses