If you are contemplating setting up a business in Dubai, you will find that you have two options. You can opt for either a free zone company or an LLC. Both options have their own pros and cons, so to understand which one would be suitable for you, you need to understand the differences that are present between the two.
The Cardinal Differences
The main difference that you will find between the two is based on the requirements of setting up the business and the limitations that you will need to face. Let us provide you with a brief insight into this.
If you decide to open a free zone company, you can have complete ownership of it even if you are a foreign national. On the other hand, in the case of an LLC, only 49% of the shares of the company can be owned by a foreign national.
Furthermore, to set up an LLC, foreigners need to go through an extensive procedure where they must appoint some local sponsor or partner who would get the majority of the company’s share. You will also have to acquire approval from the Department of Economic Development and the Ministry of Economy if you want to set up an LLC.
A free zone company can conduct business in the free zone area alone. There are 45 free zones in UAE and from them, over 20 are in Dubai and each caters to a specific business category. The most famous free zones of Dubai are DMCC, JAFZA, Dubai Airport Free Zone, Dubai Internet City and many others. This is in contrast to an LLC where you have the option to trade all across the UAE. Thus, you will not have to face any restrictions with regards to the markets that you can approach for your business. Moreover, free zone is a tax-free zone, so you will not be required to pay taxes if you opt for a free zone company.
Making the Right Decision
At the end of the day, which one would prove to be a better option for you is something that depends on your preference and requirements. The type of business that you intend to start would also have a role to play in deciding how things pan out. Therefore, it is of utmost importance that you make the decision after a lot of thought so that you would not have to regret it sometime down the road. Ensure that you open a business that you would be able to manage with ease.
Once you do set up your business, you will also have to contemplate hiring auditing services for it so that you can keep close tabs on your financial progress. For this, you will have to avail one of the best auditing services in Dubai. There is no dearth of auditors in Dubai, and all that you need to do is make sure that you opt for someone who is capable of providing accurate and reliable results. This will enable you to detect the lapses in your company and make the required amendments. Auditing plays quite an integral role in the success of any business and, thus, is something that should be given importance.