Mainland vs free zone Dubai: which company setup is right for you?

Quick answer: A Dubai mainland licence suits businesses that need to trade directly across the local market, while a free zone suits businesses that value a simple setup and mostly serve international clients. Most activities now allow full foreign ownership on the mainland, and Dubai now offers a permit for free zone companies to operate on the mainland.

At a glance

Question	Short answer
Who licenses a mainland company in Dubai?	The Dubai Department of Economy and Tourism (DET)
Who licenses a free zone company?	The authority of the relevant free zone
Can foreigners own 100 per cent of a mainland company?	Yes for most activities, with exceptions for strategic and regulated sectors
Can a free zone company trade on the Dubai mainland?	Eligible companies can apply for a Dubai permit, or use a mainland branch or distributor
Is a free zone company tax free?	Not automatically. Treatment depends on qualifying conditions and the type of income
Does either licence allow regulated activity?	No. Regulated activities need approval from the relevant regulator

Introduction

Choosing between a mainland licence and a free zone licence is usually the first big decision when you set up a company in the UAE. This guide explains mainland vs free zone Dubai in practical terms: what each option allows, where you can trade, how ownership, premises, visas and tax status differ, and which questions decide the right fit. It is written for founders, consultants, e-commerce owners and companies relocating to the UAE. If you want the detail on each route first, read our guides to Dubai mainland company formation and free zone company setup.

What is a Dubai mainland company?

A Dubai mainland company is licensed by the Dubai Department of Economy and Tourism (DET). Once your licence covers your activity, you can generally trade across Dubai and the wider UAE market, including with private clients and public bodies.

Mainland ownership rules changed in 2021. According to the UAE government portal, Federal Decree-Law No. 26 of 2020 allows 100 per cent foreign ownership of mainland companies and removed the local service agent requirement for most activities. Activities of strategic impact still face restrictions or approvals. The portal lists examples such as security and defence, telecommunications, and banking, exchange, financing and insurance.

Mainland licences are grouped by category, such as commercial, industrial, professional and tourism licences. Some activities also need pre-approval from a regulator before the licence is issued.

What is a Dubai free-zone company?

A free zone is a designated area with its own authority, rules and approved activity list. A Dubai free-zone company is licensed by that free zone authority rather than by DET. Free zones generally allow full foreign ownership, and many are built around sectors such as trade, media, technology or logistics.

Each free zone sets its own licence types, workspace options and visa rules. Two free zones can therefore differ a lot, and “free zone” is not one single product.

Historically, a free zone company could not trade directly with the local mainland market without a distributor or a mainland branch. Dubai has since added a permit route, covered below.

Free zone vs mainland UAE: side-by-side comparison

Factor	Mainland	Free zone
Licensing authority	Dubai DET	The relevant free zone authority
Foreign ownership	Full foreign ownership for most activities, with exceptions	Generally full foreign ownership, set by each free zone
Trading in the local market	Direct trading under your licence activities	Traditionally limited. Dubai now offers a permit route for eligible companies
International trade	Allowed under the licence	Commonly a strong fit
Premises	Generally leased or approved premises	A range of workspace options, depending on the zone and activity
Visas	Depends on licence, premises and authority rules	Depends on the free zone’s rules
Government and tender work	Available to mainland licence holders as permitted	May need the mainland permit or a mainland entity
Regulated activities	Regulator approval required	Regulator approval and free zone approval required
Corporate tax	Standard UAE corporate tax framework	Special treatment possible for Qualifying Free Zone Persons that meet the conditions
Often considered when	You serve the UAE market directly	You serve international clients or want a sector cluster

Where can you trade?

A mainland company can trade within the licence’s approved activities across the UAE and internationally.

A free zone company can trade internationally and with other free zone companies. For the Dubai mainland market, there are three main routes:

The Free Zone Mainland Operating Permit. Dubai’s DET, through the Dubai Business Registration and Licensing Corporation and the Dubai Free Zones Council, introduced this permit in October 2025 under Executive Council Decision No. 11 of 2025. Eligible free zone companies holding a Dubai Unified Licence apply digitally through the Invest in Dubai platform. DET says it supports local trading and access to government tenders. Eligibility, approved activities and commercial terms should be checked on the official platform.
A mainland branch or a separate mainland company. This keeps the free zone entity and adds a mainland licence.
A local distributor or agent. This lets you sell into the mainland without holding a mainland licence yourself.

The permit is a Dubai framework. Free zones in other emirates follow their own rules.

Ownership, premises, visas and banking

Ownership. Check your exact activity against the official foreign ownership list before you decide. The list sets which activities can be fully foreign owned.

Premises. Mainland licences generally involve leased or approved premises. Free zones offer different workspace options depending on the zone and your activity. Confirm requirements with the licensing authority.

Visas. Both routes can support residence visas for owners and staff, subject to licence type, premises and authority rules. Approval is never guaranteed. See our UAE residence visa services for the process.

Banking. UAE banks assess each company on its activity, ownership, source of funds and compliance. Neither route guarantees an account. Plan your corporate bank account opening early and prepare clear documents.

Tax and compliance

Both mainland and free zone companies sit inside the UAE corporate tax framework. A free zone company may qualify for special treatment as a Qualifying Free Zone Person (QFZP). According to the Federal Tax Authority guide, this depends on meeting conditions, including adequate substance and earning qualifying income from qualifying activities. Income from mainland activity can be treated differently. A free zone licence does not by itself mean a company pays no tax.

Other duties can include company registration for tax, value added tax (VAT) where applicable, bookkeeping and ultimate beneficial owner (UBO) records. Our guide to UAE corporate tax registration explains the registration steps. This article does not give tax advice or state rates, so take advice from a qualified tax adviser.

Regulated activities need more than a licence

Neither a mainland nor a free zone licence authorises regulated activity by itself. Financial services, virtual assets, insurance, healthcare and education are examples that can need approval from a specific regulator.

For example, virtual asset activity in Dubai outside the Dubai International Financial Centre (DIFC) falls under the Virtual Assets Regulatory Authority (VARA). The DIFC has its own regulatory framework. The regulator can affect where you can set up, so check this before you choose a UAE business jurisdiction.

Mainland or free zone Dubai: how to decide

These prompts help you narrow the choice. They are not a recommendation for your specific case.

A mainland licence may fit if you:

Plan to sell directly to customers in Dubai or the wider UAE.
Want to bid for work with public bodies or large local clients.
Need a retail, hospitality or similar customer-facing activity.
Prefer one licence that covers local and international trade.

A free zone licence may fit if you:

Serve mostly international clients, remotely or from the UAE.
Want a sector-specific community or a simple, packaged setup.
Work in a field that a particular free zone is built around, such as media, technology or logistics.
Can meet the conditions for the special free zone tax treatment and want to keep them.

A mixed route may fit if you:

Start in a free zone and later add a mainland permit, branch or separate licence.
Need a free zone entity for one activity and a mainland entity for another.

Common mistakes to avoid

Assuming a free zone means no tax. Treatment depends on qualifying conditions.
Picking a jurisdiction before checking that your exact activity is allowed there.
Relying on old guidance. Ownership rules changed in 2021 and Dubai added the mainland permit in 2025.
Overlooking premises and visa rules until after the licence is issued.
Forgetting that regulated activities need their own approval.
Assuming a licence guarantees a bank account.

What about offshore companies?

An offshore company is a separate category. It is usually used for holding assets or international structuring, and it generally does not allow trading inside the UAE. If that is your goal, see our offshore company setup page.

Steps to take before you choose

Write down your exact business activity in plain language.
List where your customers are: Dubai, the wider UAE or abroad.
Check whether your activity is regulated and who the regulator is.
Check the foreign ownership position for your activity.
Compare premises, visa and workspace rules for each option.
Review the corporate tax position with a qualified tax adviser.
Plan for banking early and prepare your compliance documents.

Frequently asked questions

What is the difference between mainland and free zone in Dubai?

A mainland company is licensed by Dubai DET and can generally trade across the local market. A free zone company is licensed by a free zone authority and is traditionally focused on international trade, with Dubai now offering a permit for eligible companies to operate on the mainland.

Can foreigners own 100 per cent of a mainland company in Dubai?

Yes for most activities. Federal Decree-Law No. 26 of 2020 allows full foreign ownership of mainland companies, but activities of strategic impact and some regulated sectors remain restricted or need approvals.

Do I need a local sponsor for a mainland company?

For most activities, no. The requirement for a majority Emirati shareholder or local service agent was removed. Check your specific activity against the official ownership list.

Can a free zone company trade in the UAE mainland?

Eligible Dubai free zone companies holding a Dubai Unified Licence can apply for the Free Zone Mainland Operating Permit through the Invest in Dubai platform. Other routes include a mainland branch or a local distributor.

Which is better for an online or consulting business?

It depends on your clients and activity. A free zone is often considered when clients are mostly international. A mainland licence is often considered when you need to contract directly with local clients. An adviser can review your case.

Do I need a physical office?

Requirements depend on the licensing authority and your activity. Mainland licences generally involve leased or approved premises, while free zones offer a range of workspace options. Confirm with the authority.

Can I get a residence visa with either licence?

Both routes can support residence visas for owners and staff, subject to licence type, premises and authority rules. Approval is not guaranteed.

Is a free zone company exempt from corporate tax?

Not automatically. A free zone company may qualify for special treatment as a Qualifying Free Zone Person if it meets the FTA conditions. Income outside those conditions can be taxed differently. Take advice from a qualified tax adviser.

Does a trade licence allow regulated activities such as financial services or crypto?

No. Regulated activities need approval from the relevant regulator, such as VARA for virtual assets in Dubai outside the DIFC. Verify requirements before you set up or promote a service.

Can I start in a free zone and move to the mainland later?

Often you add a mainland route rather than move, for example through the mainland permit, a branch or a separate mainland company. Each option has its own requirements, so plan this before you choose.

Not sure which setup fits your business?

Choosing between mainland vs free zone Dubai depends on your activity, your customers, your premises and your visa and banking needs. Smart Zones UAE can help you review these points and the likely licensing pathway for your business. Request a UAE business setup assessment to discuss your situation with an adviser.

DXB sets new global benchmark as record traffic volumes become the norm

Dubai Airports today announced that Dubai International (DXB) welcomed 95.2 million guests in 2025, up 3.1% year on year, marking the busiest year in the airport’s history and the highest annual international passenger traffic ever recorded by any airport.

More significantly, 2025 was defined not by a single peak, but by sustained performance at record levels. DXB achieved its busiest day, month, quarter and year on record, operating at the edge of physical capacity while consistently delivering operational excellence. What would represent extraordinary strain elsewhere has become part of DXB’s normal operating rhythm.

December closed as the busiest month in DXB history, with 8.7 million guests, up 6.1% year on year. The fourth quarter was also the busiest ever, with 25.1 million guests, an increase of 5.9% compared to the same period in 2024.

Total flight movements reached 118,000 in Q4, up 5%, bringing the annual total to 454,800 a rise of 3.3% year on year. Despite continued growth in movements, average passengers per movement remained strong at 214, reflecting sustained deployment of larger aircraft and high load efficiency. The annual load factor stood at 77.6%, a marginal adjustment of 0.5 percentage points.

Consistency at Scale

Rather than a story of isolated surges, 2025 demonstrated DXB’s ability to operate continuously and deliver a superior guest experience at record levels through disciplined planning and close coordination across the oneDXB community comprising airlines, service partners and government stakeholders.

DXB efficiently managed 86.75 million bags in 2025, a 4.95% year-on-year increase, marking the highest ever baggage volume handled during the calendar year. Highlighting the airport’s commitment to operational excellence, 89% of all arriving baggage was delivered to guests terminating at DXB within 45 minutes of the aircraft arriving on stand. DXB continued to deliver world-class mishandled baggage performance at 99.75%, translating to 2.47 mishandled bags per 1,000 guests. Guest processing times also remained stable at scale, with 99.35% of guests experiencing waiting times of less than 10 minutes at departure passport control, while 98.8% waiting under 15 minutes at arrival passport control. Security check waiting times remained below 5 minutes for 98.9% of guests.

Broad and Balanced Global Connectivity

India retained its position as DXB’s largest country market with 11.9 million guests, followed by the Kingdom of Saudi Arabia at 7.5 million, the United Kingdom at 6.3 million, Pakistan at 4.3 million, and the United States at 3.3 million.

Several markets recorded particularly strong growth during the year. Traffic from China increased 16.6% to 2.5 million, Russia grew 6% to 2.8 million, Turkey rose 6.7% to 2.2 million, Egypt expanded 14.3% to 1.8 million, and Italy climbed 12.5% to 1.6 million.

London remained DXB’s busiest city destination with 3.9 million guests, followed by Riyadh at 3 million, Mumbai and Jeddah at 2.4 million each, and New Delhi at 2.2 million.

By the end of 2025, DXB was connected to 291 destinations across 110 countries, served by 108 international airlines, reinforcing its position as one of the most globally connected hubs in the world.
Paul Griffiths, CEO of Dubai Airports, said, “Airports are often defined by moments of intensity, but long-term performance is defined by how well those moments are sustained. In 2025, DXB showed that record traffic is no longer an exception, but part of its operating reality. That consistency at scale reflects the maturity of the system and the strength of collaboration across our oneDXB airport community to deliver excellence under growing demand. We expect traffic to approach 99.5 million in 2026, supported by close coordination across the sector and the oneDXB community.”

Outlook

With demand continuing to build and capacity carefully managed, Dubai’s airports are entering a phase where performance is defined not by how high it can surge, but by how reliably it can sustain growth while consistently delivering a superior guest experience. As traffic patterns evolve, the complementary role of Dubai World Central – Al Maktoum International (DWC) will continue to expand, ensuring the emirate remains prepared for the next era of global aviation.

Source: https://mediaoffice.ae/en/news/2026/february/11-02/dxb-sets-new-global

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UAE financial authority warns of unlicensed company

The UAE’s Capital Market Authority (CMA) has issued an important advisory to the public, warning individuals and investors against dealing with Volcano Capital Marketing Management, a company found to be operating without the required financial license.

In a notice published on Tuesday, January 13, the authority confirmed that Volcano Capital Marketing Management is not authorized to carry out any regulated financial activities or provide investment-related services within the UAE. The CMA emphasized that it bears no responsibility for any losses or transactions conducted with this unlicensed company.

The public is strongly advised to verify a company’s regulatory status before engaging in any form of financial dealings. The authority urged investors to always ensure that the firms they work with are registered and licensed under UAE law to protect themselves from potential fraud and financial misconduct.

This is not the first time the authority has issued such a warning. On December 4, the CMA cautioned residents about a Dubai-based company, Global Capital Securities Trading, which was posing as a legitimate capital trading firm. The entity was reportedly operating from a representative office linked to Global Capital Market Limited, but without proper authorization to conduct trading or investment activities in the country.

The UAE continues to take a firm stance against unlicensed financial operations, reinforcing its commitment to maintaining transparency, investor protection, and regulatory compliance across the financial sector.

Source: https://www.khaleejtimes.com/business/uae-financial-authority-warns-of-unlicensed-company?_refresh=true

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Corporate Tax Registration in the UAE: A Guide to Deadlines

The Federal Tax Authority (FTA) has announced revised deadlines for corporate tax registration in UAE. This initiative, part of the FTA’s ongoing taxpayer awareness campaign, aims to ensure resident juridical persons established before March 1, 2024, comply with their corporate tax obligations.

Registration deadlines are determined by the date a juridical person’s license was issued. The FTA clarifies that companies with licenses issued in January or February, regardless of the year, must register for corporate tax by May 31, 2024.

For entities lacking a license on March 1, 2024, a three-month grace period applies. These entities must register for corporate tax by May 31, 2024, to remain compliant.

The FTA has established a comprehensive registration schedule based on license issuance month:

March-April issuance: Deadline June 30, 2024
May issuance: Deadline July 31, 2024
June issuance: Deadline August 31, 2024
July issuance: Deadline September 30, 2024
August-September issuance: Deadline October 31, 2024
October-November issuance: Deadline November 30, 2024
December issuance: Deadline December 31, 2024

Publish 30 Mar 2024

Source: https://www.khaleejtimes.com/uae/uae-corporate-tax-know-about-registration-deadlines/

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SMART ZONES UAE MD Akeel Malik Unveils Key Insights On Dubai Business Setup

In today’s video interaction, we feature Akeel Malik, the Managing Director of SMART ZONES UAE. With SMART ZONES’ distinguished reputation as a premier licensing firm in Dubai, Akeel Malik’s pivotal contributions have significantly fostered the growth and prosperity of numerous businesses in the region since 2013.

Engaging in a dialogue with Adgully ME, Akeel Malik shares his invaluable insights, experiences, and perspectives on the myriad opportunities and challenges inherent in investing in or establishing businesses in the UAE. His profound expertise and unwavering dedication to guiding aspiring entrepreneurs undoubtedly position him as an exemplary leader in this dynamic field.

During the conversation, Akeel Malik delves into the practical aspects of initiating a business in Dubai. While acknowledging the myriad legal intricacies involved, he underscores how SMART ZONES’ extensive experience substantially streamlines these processes.

Furthermore, he sheds light on the unparalleled ease of starting a business in Dubai compared to many other nations, citing the minimal tax burdens and licensing formalities.

When prompted about the potential trajectory of ties between India and the UAE following Prime Minister Modi’s recent visit, Akeel Malik exudes optimism. He firmly believes that this visit will catalyze a significant enhancement in trade relations between the two nations in the foreseeable future.

For further insights into SMART ZONES UAE growth, progress, and future endeavors, please check the link

Work Bundle Launched In Dubai For 275k+ Companies, Expands To All Emirates Soon

The United Arab Emirates (UAE) has launched a unified Work Bundle platform, offering a streamlined solution for companies across the country to manage employee visa applications and renewals. This initiative brings together the services of five federal and local authorities into a single platform, facilitating data exchange and simplifying procedures.

Currently available in Dubai through the Invest in Dubai platform, the Work Bundle will soon be accessible throughout all emirates within weeks. This innovative platform aims to eliminate bureaucratic hurdles and expedite processes for businesses, particularly startups and entrepreneurs.

Dr. Abdulrahman Awar, Minister of Human Resources and Emiratisation, highlighted the platform’s role in attracting foreign investment. He emphasized the initiative’s contribution to the UAE’s ongoing digital transformation, showcasing its commitment to efficiency and ease of doing business.

The announcement, made in the presence of key officials from various government departments, underscores the collaborative effort behind this significant advancement. Leveraging Emirates ID and other digital tools, the Work Bundle empowers businesses to complete transactions quickly and effectively, reflecting the UAE’s commitment to embracing the pace of digital transformation.

Lieutenant General Mohammed Ahmed Al Marri, Director General of Dubai’s General Directorate of Residency and Foreigners Affairs, emphasized the platform’s role in attracting companies to the UAE. He highlighted the initiative as a testament to the nation’s rapid digital transformation efforts.

Publish 6 Mar 2024

Source: https://www.arabianbusiness.com/politics-economics/work-bundle-now-available-to-275000-companies-in-dubai/

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DIEZ Records Exceptional Growth, Profits In 2023, Bolstering Dubai’s Economy

The Dubai Integrated Economic Zones Authority (DIEZ) announced significant growth and record profits in 2023, highlighting its commitment to fostering Dubai’s economic diversification and global competitiveness.

DIEZ experienced a remarkable year financially. Operating profit surged by 64.6% compared to the previous year, total revenue climbed 8.1%, and the organization directly contributed 5.1% to Dubai’s GDP in 2021. These figures demonstrate DIEZ’s strong financial health and significant impact on the emirate’s economy.

Increased Business Activity:

Economic zones overseen by DIEZ witnessed a surge in activity in 2023. Company registrations jumped 15.3%, and the workforce within these zones grew by a substantial 30.5% to reach 70,000 individuals. This growth signifies the increasing attractiveness of DIEZ zones for businesses seeking to operate in Dubai.

Sheikh Ahmed bin Saeed Al Maktoum, Chairman of DIEZ, emphasized the organization’s commitment to stimulating investment and trade, enhancing Dubai’s GDP, and contributing to the Dubai Economic Agenda D33. He further stressed DIEZ’s dedication to solidifying Dubai’s position as a leading global investment destination.

Dr. Mohammed Al Zarooni, Executive Chairman of DIEZ, highlighted the organization’s dedication to bolstering Dubai’s economic competitiveness and contributing to the UAE Centennial 2071 and “We the UAE 2031” vision. He also emphasized DIEZ’s focus on fostering knowledge-based and innovative sectors and supporting small and medium-sized enterprises through a AED 500 million venture capital fund.

Focus on Future Growth:

DIEZ remains committed to driving future growth by focusing on key areas like artificial intelligence, sustainable development, and knowledge-sharing initiatives. These efforts aim to solidify Dubai’s position as a global hub for investment and innovation, ultimately contributing to the emirate’s ambition of becoming one of the world’s leading economies.

Publish 22 Feb 2024

Source: https://www.arabianbusiness.com/industries/technology/uae-to-host-first-gulf-only-esports-competition-in-push-to-become-global-gaming-hub

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DIFC Dubai Launches Initiative For Family Business Succession And Longevity

The Dubai International Financial Centre (DIFC) recognized the increasing demand for support among family businesses and spearheaded several initiatives in early 2023. This commitment was further solidified with the recent launch of a specialized program in collaboration with MIT Sloan Executive Education and the DIFC Academy.

Titled “Sustaining Family Business Success,” the intensive program (June 24-26, 2024) equips participants with the knowledge and strategies to navigate both regional and global expansion while staying true to family values. Participants will gain valuable insights into building future-proof enterprises that can thrive across generations, earning a prestigious MIT Sloan certificate upon completion.

Recognizing the critical need for adaptability in today’s dynamic landscape, DIFC Chief Strategy Officer Christian Kunz emphasizes Dubai’s ideal position as a hub for family businesses. “Our vibrant ecosystem, strategic location, and dedication to innovation create a unique offering,” he states, highlighting the blend of global opportunities and a supportive environment conducive to growth.

With only 20% of Middle Eastern family businesses reaching the third generation, this program aims to empower and ensure their longevity, contributing significantly to the UAE’s economic prosperity. MIT Sloan’s Faculty Director John Davis echoes this sentiment, stressing the need for redefined stewardship and building agility for long-term success. He emphasizes that “the traditional model of simply preserving family legacy is no longer sufficient. Building a future-oriented and adaptable enterprise, while generating diverse value streams aligned with family values, represents the new paradigm for success.”

The program incorporates six key pillars designed to address critical challenges faced by family businesses: Future Vision, Managing Turbulence, Governance, Talent, Succession, and Multigenerational Success. This comprehensive approach aligns with DIFC’s ongoing commitment to supporting family businesses, exemplified by initiatives like the Family Wealth Centre and Family Arrangements Regulations. These resources provide dedicated services, legal frameworks, and support structures to help families preserve their legacies across borders and generations.

By launching these initiatives, DIFC demonstrates its proactive approach to empowering family businesses and fostering their sustainable growth within the region’s dynamic economic landscape.

Publish 12 Feb 2024

Source: https://www.arabianbusiness.com/industries/banking-finance/dubais-difc-launches-new-initiative-to-boost-succession-planning-longevity-of-family-businesses

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How Can Opening a Company in Dubai – UAE Help Me Save On Taxation?

If you run a company in US, you need to pay a corporate tax of 21%, whereas in the UK, it will be 19%, in Canada its’s 15% and Australia is 30%. Thinking how much tax you need to pay if you run a company in Dubai? The answer is – 0%. Yes, business owners in Dubai can enjoy zero percent tax, if their profit falls within AED 375,000. And if it exceeds, corporate tax of 9% will be applicable. Are you interested in opening your business in Dubai to enjoy 0% tax benefits? Then this article is for you, as we explore the various ways in which opening a company in Dubai can help individuals and businesses optimize their taxation benefits.

0% Tax on Personal Income & Capital Gains

One of the most appealing aspects of establishing a company in Dubai is the absence of personal income tax. This means that individuals who reside in Dubai and operate their business there are not subject to personal income tax on their earnings. As a result, entrepreneurs can retain a higher portion of their income, leading to substantial tax savings compared to jurisdictions with high personal income tax rates.

Corporate Tax Exemptions

Dubai offers several corporate tax exemptions, making it an attractive destination for businesses. The UAE government has implemented policies that provide tax advantages to companies operating in free zones, such as Jebel Ali Free Zone (JAFZA), Dubai Multi Commodities Centre (DMCC), and Dubai Airport Free Zone Authority (DAFZA). These free zones offer 100% foreign ownership, zero corporate tax for a specified period (generally up to 50 years), and no restrictions on capital repatriation. Businesses can take advantage of these exemptions to maximize their profits and reinvest in their growth.

Value Added Tax (VAT) Benefits

While Dubai implemented a Value Added Tax (VAT) system a few years ago, the tax rate of 5% is relatively low compared to other countries. Furthermore, certain sectors and industries are exempt from VAT, such as healthcare, education, and essential food items. By carefully structuring their business operations and considering applicable exemptions, companies can effectively manage and minimize their VAT obligations, resulting in potential savings.

Double Taxation Avoidance Agreements

The UAE has entered into Double Taxation Avoidance Agreements (DTAAs) with many countries worldwide, including major economies. These agreements aim to prevent individuals or companies from being taxed twice on the same income in both their home country and the UAE. DTAAs provide relief by allowing businesses to claim tax credits or exemptions, thus avoiding double taxation. This not only reduces the tax burden but also enhances the attractiveness of Dubai as a global business hub.

Easy Setup and Business-Friendly Environment

Dubai offers a streamlined and efficient process for setting up a company, enabling entrepreneurs to establish their business quickly. The government has implemented business-friendly policies, including simplified company registration procedures, flexible visa regulations, and modern infrastructure. These factors, combined with the absence of complex bureaucracy, facilitate a conducive environment for business growth and expansion.

Conclusion

By opening a company in Dubai, entrepreneurs and businesses can benefit from a range of tax advantages. Additionally, Dubai’s business-friendly environment, ease of setup, and strategic location further enhance the appeal of this global business hub. However, it is advisable to seek professional advice from tax consultants or business setup experts in Dubai from Smart Zones^® UAE who can provide tailored guidance based on specific business requirements and individual circumstances.

Dubai’s DFSA reports a record number of licensed firms in 2023

Among all the registered firms, the authority observed an increase in Asset Managers and Hedge Fund Managers establishing a presence in DIFC

117 new firms licensed and registered in 2023.

The Dubai Financial Services Authority (DFSA) has announced a record-breaking number of firms licensed and registered since its establishment, achieving remarkable growth in 2023. 117 firms were registered during the year, marking an increase of 25 percent from the year prior.

Among all the registered firms, the authority noted an increase in Asset Managers and Hedge Fund Managers establishing a presence in the Dubai International Financial Centre (DIFC).

As of November 2023, the DIFC exchange, NASDAQ held the world’s largest listed ESG sukuk market valued at $27 billion.

Fadel Al Ali, Chairman of the DFSA, said: “The remarkable achievements of 2023 are a testament to our dedication to not only regulate the present but to also shape and govern the future. Our aim is to become a global benchmark as an international regulatory body, delivering excellence in tandem with the government’s strategic vision – including Dubai Economic Agenda D33.”

Publish January 23, 2024

Source: https://www.arabianbusiness.com/industries/banking-finance/dubais-dfsa-reports-record-number-of-licensed-firms-in-2023

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