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Why Dubai Mainland Setup is More Complex than Free Zone
Starting a business in Dubai is a popular choice for entrepreneurs due to its prime location, strong infrastructure, and supportive business environment. However, the process of setting up a business varies depending on whether you choose to establish your company in the mainland or within a free zone. While both options offer their own benefits, setting up in Dubai Mainland is generally more complicated and involves more steps compared to the simpler process of setting up in a free zone.
Physical Presence and Identification Requirements
When setting up a business in Dubai Mainland, the client’s physical presence is often required, especially if they do not have an Emirates ID. While some steps can be done online if they do have an Emirates ID, others must be handled in person. For those who have never been to the UAE, they must first obtain a Unified Identity Number (UID), which is a unique 8-10 digit number needed before moving forward with the business setup. This adds another step to the already complex mainland setup process.
Involvement of Multiple Approvals
Setting up a business in Dubai Mainland requires getting approvals from different government agencies like the Department of Economic Development (DED), Dubai Municipality, and the Ministry of Labour. These approvals can make the process longer and more complicated. Additionally, businesses must involve a local agent or sponsor, which adds more steps and can slow down the setup.
Trade Name Approval Process
Another reason why setting up in Dubai Mainland is more complex is the strict rules for approving a trade name. The trade name must meet specific guidelines and get approval from the DED, ensuring it follows local regulations. This process is more demanding compared to free zones, where the trade name rules are generally more relaxed.
Office Space Requirement and Visa Allocations
In Dubai Mainland, having a physical office is required. The size of this office directly affects how many visas the business can get, making it an important factor in the setup process. This requirement not only adds to the cost but also makes the setup more complicated, as finding the right office space can be challenging.
Free Zone Setup: A Simpler Alternative
On the other hand, setting up a business in a Dubai Free Zone is much simpler. The process is fast, often taking just 1-5 days to get a license. Free zones have their own rules, which means you don’t need approvals from outside government agencies. This makes the process easier and more attractive for entrepreneurs who want a quick and straightforward setup. Additionally, there is no requirement for a physical office, and visa allocations are not tied to office size, offering more flexibility.
How Can Choose UAE Help
At Choose UAE, we specialize in helping businesses navigate the setup process in Dubai, whether you choose the mainland or a free zone. Our experienced team can guide you through each step, making sure your business is set up smoothly and efficiently, tailored to your specific needs. Whether you choose the mainland or a free zone, we are here to help you get your license and start your business in Dubai.
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