Q: Who regulates Dubai Mainland companies and what are their advantages?

Dubai Mainland companies are regulated by Dubai Economy and Tourism (DET, formerly DED). Their main advantages include:- Ability to freely conduct business throughout the UAE and in international markets;- Capability to sign contracts with government departments and participate in tenders;- More open to foreign investors, with 100% foreign ownership allowed in most industries (only a few industries require 51% local shareholder ownership);- Office requirement is a physical office space (rentable or purchasable), offering high flexibility;- License fees are approximately AED 15,000 + 5% rent (EJARI), requiring a lease contract signed in the company's name.

Question 1

Who regulates Dubai Mainland companies and what are their advantages?

Accepted Answer

Dubai Mainland companies are regulated by Dubai Economy and Tourism (DET, formerly DED). Their main advantages include:
- Ability to freely conduct business throughout the UAE and in international markets;
- Capability to sign contracts with government departments and participate in tenders;
- More open to foreign investors, with 100% foreign ownership allowed in most industries (only a few industries require 51% local shareholder ownership);
- Office requirement is a physical office space (rentable or purchasable), offering high flexibility;
- License fees are approximately AED 15,000 + 5% rent (EJARI), requiring a lease contract signed in the company's name.

Question 2

What are the main differences in business scope between Freezone companies and Mainland companies?

Accepted Answer

Freezone companies are independent from the Mainland system in terms of registration, regulation, and operation:
- Can only operate within the freezone or in international markets, typically not allowed to trade directly with Mainland companies in the UAE;
- Enjoy higher tax incentives and foreign exchange freedom;
- Allow 100% foreign ownership without the need for a UAE local partner;
- Each freezone has its own independent regulatory authority and registration fee system.

Question 3

What are the characteristics of Dubai Silicon Oasis (DSO)?

Accepted Answer

Regulatory Authority: Dubai Silicon Oasis Authority (DSOA)Suitable Industries: Technology, IT, engineering services, light manufacturing, real estate management, general services.Registration Fees: Starting from approximately AED 22,000 (including Flexi Desk).Office Situation:- In addition to official offices within the free zone, there are some privately owned offices that can be used for license registration.- It also allows companies with Ministry of Economy licenses to operate.Suitable Clients: Small and medium-sized enterprises, startups, cost-sensitive companies.

Question 4

Which types of enterprises is DIFC (Dubai International Financial Centre) primarily aimed at?

Accepted Answer

Regulatory Authority: DIFC Authority + DFSA (Financial Services Regulatory Authority)Suitable Industries: Investment banking, law firms, accounting firms, family offices, funds, wealth management.Geographic Location: Core area of downtown Dubai.Registration Fees: Starting from approximately USD 45,000 (including shared workspace).Office Situation: The DIFC area mostly consists of high-end self-owned office buildings, with leasing channels primarily handled through official or authorized agents.

Question 5

What are the industry positioning and leasing requirements of DMCC (Dubai Multi Commodities Centre)?

Accepted Answer

Regulatory Authority: DMCC AuthoritySuitable Industries: Trade, gold, crypto assets, consulting, technical services, and many other fields.Location: JLT (Jumeirah Lakes Towers).Registration Fees: Starting from approximately AED 35,000 (including shared workspace).Office Requirements:- Must rent or purchase an office or shared space within the DMCC free zone;- Most office buildings are freehold properties, available for rent or purchase.

Question 6

What is the positioning and registration cost of JAFZA (Jebel Ali Free Zone)?

Accepted Answer

Regulatory Authority: JAFZA Authority (under DP World)Suitable Industries: Trade, manufacturing, logistics, automotive, shipping, engineering, warehousing, etc.Location: Jebel Ali Port, the largest industrial and import-export free zone in the Middle East.Registration Fee: Starting from approximately AED 55,000 (including workstation).Office Situation: Mostly owned by the authority or long-term lease structures, with few buying opportunities; companies must rent factories or offices through official channels or from already established enterprises.

Question 7

What are the special requirements for free zones under Tecom jurisdiction?

Accepted Answer

The Tecom system includes multiple themed parks (such as Internet City, Media City, Knowledge Park, etc.),
requiring companies to rent officially approved office spaces, and does not accept registration with properties outside the parks.

Question 8

Why is the flexibility of Meydan Freezone popular among small and medium-sized enterprises?

Accepted Answer

Regulatory Authority: Meydan Free Zone AuthoritySuitable Industries: Service, trade, consulting, holding companies.Location: Meydan area.Registration Fee: Starting from approximately AED 15,000 (including shared desk).Feature: Allows companies to set up offices in other areas of Dubai, only requiring submission of an NOC (No Objection Certificate) to Meydan.

Question 9

What is the regulatory background and applicable industries of Trakhees?

Accepted Answer

Regulatory Authority: Department of Planning and Development – Trakhees (Dubai Planning and Development Authority)Affiliated Group: Ports, Customs and Free Zone Corporation (PCFC)Suitable Industries: Trade, commercial services, engineering, logistics, maintenance, real estate management, etc.Registration Fees: Starting from approximately AED 18,000 + office rental.Office Requirements: Must use office buildings or park spaces approved within the regulatory scope of Trakhees.

Question 10

What are the common office areas under Trakhees?

Accepted Answer

The areas under Trakhees jurisdiction are mostly located in port surroundings and industrial park zones, commonly including Jebel Ali, Ports Zone, and affiliated commercial building clusters, suitable for businesses engaged in warehousing, maintenance, and trade.

Question 11

What are the main steps generally included in the Dubai company registration process?

Accepted Answer

1. Determine company type and registration area (Mainland or specific Freezone);2. Choose a company name and submit for pre-approval;3. Prepare documents and business plan (passport copies, shareholder information, etc.);4. Sign MOA (Memorandum of Association) and submit to regulatory authorities;5. Complete lease contract and EJARI registration;6. Pay registration and license fees;7. Receive business license and visa quota approval.The entire cycle varies from about 7 to 30 working days depending on the area.

Question 12

What factors should investors consider when choosing between a free zone or a mainland company?

Accepted Answer

Key considerations include:- Target market (whether cooperation with local UAE clients is needed);- Budget and registration costs (e.g., significant cost differences between DIFC and Meydan);- Industry regulatory requirements (specific free zone qualifications needed for finance, manufacturing, technology, etc.);- Office flexibility and future expansion plans.

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Overview of Dubai Company Registration and Main Free Zones