Tax Free Company in 3 Days? Dubai Mainland Company Setup

TL;DR

Mainland companies in Dubai offer benefits such as the ability to do business directly in the UAE, easier access to bank accounts, faster incorporation process, and the ability to own property under the company name. However, mainland companies are more expensive and will be subject to a 9% corporate tax starting in 2023.

Transcript

hey it's the wealthy expat here if you are looking to establish a business in dubai you've probably heard about the differences between free zone companies and mainland companies both pay zero percent tax they work in different ways they allow you to do different things and there's also a little caveat that mainland companies are going to have movi... Read More

Key Insights

• 👻 Mainland companies in Dubai allow for direct business operations within the UAE, catering to UAE residents and customers.
• 🔒 Mainland companies require paying a 5% VAT on sales made in the UAE.
• 💨 Mainland companies offer advantages such as easier access to bank accounts, faster incorporation process, and the ability to own property under the company's name.
• 🚕 Mainland companies will be subject to a 9% corporate tax starting in 2023.
• 🥶 Mainland companies are more expensive to establish compared to free zone companies in Dubai.
• 📼 Mainland companies can be used to protect assets by purchasing property under the company's name.
• 👻 Mainland companies allow for full ownership by foreign individuals or entities, without requiring a local partner.

Questions & Answers

Q: What is the main difference between mainland and free zone companies in Dubai?

The main difference is that mainland companies allow you to do business directly in the UAE and cater to UAE residents and customers, while free zone companies have restrictions on doing business within the UAE.

Q: Do mainland companies in Dubai need to pay any taxes?

Mainland companies are exempt from income and corporate taxes but are required to pay a 5% VAT on sales made in the UAE.

Q: Are there any advantages to choosing a mainland company in Dubai?

Yes, mainland companies offer easier access to bank accounts, faster incorporation process, and the ability to own property under the company's name. They also allow you to establish better relationships with banks and gain more business opportunities with local funds and companies.

Q: Will mainland companies in Dubai be subject to any taxes in the future?

Starting in 2023, mainland companies in Dubai will be subject to a 9% corporate tax. However, it is likely that many companies will find ways to minimize or avoid paying this tax.

Summary & Key Takeaways

• Mainland companies allow you to do business directly in the UAE, catering to UAE residents and customers.

• Mainland companies require paying a 5% VAT on sales in the UAE but exempt from income and corporate taxes.

• Mainland companies offer easier access to bank accounts, faster incorporation process, and the ability to own property under the company's name.