If you are going to register a
business then the very first thing that you will have to consider is the
selection of the best suited economic jurisdiction for your business. Yes,
there are two different economic jurisdictions in Dubai that you can choose
from. Either you will have to register your company in a Free trade zone or you
can setup it in the jurisdiction of Dubai mainland that is governed by Dubai Economic
Department. Both economic jurisdictions offer different types of advantages to
businesses and you will have to pick one that suits best for your business.
Following are a few things that you will have to consider to be able to choose
the best economic jurisdiction for your business:
1- Nature of your business
Nature of your business will play an important role in helping you decide
whether you should register your business with Dubai economic department or in
a Dubai free trade zone. The one thing that you must bear in mind here is the
fact that Dubai free trade zones are suitable for certain types of business and
same is the case with the businesses that you wish to register with Dubai
Economic Department. For instance, if you are going to register your business
in Dubai to access foreign markets that registering it with a Free trade zone
will be the best option for you. However, if you are going to setup your
business in Dubai to access local market then registering it with Dubai
Economic Department will be the best option for you.
2- Rules and Regulations
Another very important thing that you should consider when choosing the right
economic jurisdiction for your business is the rules and regulations that suits
best for its smooth operations. If you don’t know already, each Dubai free
trade zone has its own set of rules and regulations that differs from the
regulations of Dubai Economic Department and other free zones. Every Free trade
zone in Dubai has rules and regulations that are designed to provide business
friendly environment for specific types of businesses. For this reason it is
highly recommended for you to pick an economic jurisdiction after considering
their rules and regulations.
3- Duties and taxation needs of your business
Lastly but most importantly, you will have to consider the duties and taxation
needs of your business to choose the best economic jurisdiction. You will have
to pay import/export duties and taxes by operating your business in Dubai
mainland. Whereas, Dubai free trade zones are duty free zones that also offer
exceptional taxation relaxations.
