Choosing the right jurisdiction—Dubai Mainland (DED) or a Free Zone (e.g., DMCC, IFZA)—is the most critical decision an entrepreneur faces in the UAE. This choice dictates your tax status (0% or 9% Corporate Tax), market access, ownership structure, and regulatory obligations. Mistakes at this foundational stage lead to costly restructuring and legal hurdles later. FrankDigit Accounting Services specializes in a compliance-first approach to company formation.
We go beyond basic registration to structure your legal entity for immediate compliance with Corporate Tax, VAT, and ESR. Guided by Confidentiality, Transparency, and Integrity (CTI), Bilal Mogul’s team ensures your setup aligns precisely with your commercial goals—whether you target the local market or global exports—guaranteeing a successful and fully legal launch.
The choice between a Mainland Company (licensed by the Department of Economic Development, DED) and a Free Zone Entity (licensed by a specific Free Zone Authority, FZA) depends entirely on your target market and tax goals.
| Feature | Mainland Company (DED) | Free Zone Company (FZA) |
|---|---|---|
|
Market Access |
Unrestricted—can trade directly with the local UAE market and internationally. |
Restricted—primarily international trade; local trade requires a mainland distributor. |
|
Corporate Tax (CT) |
Subject to 9% CT on profits > AED 375,000; cannot claim QFZP 0% rate. |
Eligible for 0% CT on qualifying income, provided ESR is met. |
|
Ownership |
100% Foreign Ownership allowed for most activities (no local sponsor needed). |
100% Foreign Ownership always allowed. |
|
Office/Premise |
Mandatory physical office or attested Ejari required. |
Flexible—often allows virtual offices, flexi-desks, or hot desks. |
|
Accounting Mandate |
Annual Audit often required (depending on legal form/revenue). |
Annual Audit required by most FZAs for license renewal. |
We manage the entire legal and administrative process, ensuring your launch is swift and future-proof.
| Delieverable | How FrankDigit Delivers |
|---|---|
|
Jurisdiction & Activity Scoping |
Initial advisory to define the optimal legal structure (LLC, FZCO, FZE) based on your business activities and tax objectives (0% CT vs. Local Trade). |
|
Trade Name and Initial Approval |
Vetting and reserving your Trade Name with the relevant authority (DED/FZA) and securing the critical Initial Approval to proceed. |
|
MoA/AoA Drafting & Notarization |
Preparation of the Memorandum of Association (MoA) or Articles of Association, including mandatory notarization for Mainland entities. |
|
Corporate Tax & VAT Registration |
Immediate registration for Corporate Tax and VAT (if applicable) upon license issuance, ensuring compliance from the first day of operation. |
|
Attestation and PRO Services |
Attestation and PRO Services |
The establishment phase is where long-term tax and compliance risks are either eliminated or created.
For Free Zone entities, maintaining the 0% Corporate Tax rate requires adhering to the Qualifying Free Zone Person (QFZP) rules and demonstrating genuine Economic Substance (ESR). We structure the company’s activities and operational plan to meet the mandated Core Income Generating Activities (CIGAs) and assist with leasing and visa applications that prove adequate substance in the UAE.
Mainland company formation often requires more legal documentation and coordination, including securing a verifiable Ejari (tenancy contract) for the required physical office space, which directly determines the number of visas the company is eligible to sponsor. We manage the notarization of the MoA and all submission documents to the DED, ensuring adherence to the strict local formalities required for license issuance.
We provide streamlined process management, ensuring you move from concept to fully operational status efficiently.
- Decode (Diagnostic & Structure): We conduct a comprehensive assessment of your market, legal form, and tax goals, resulting in a firm recommendation on the optimal Mainland or Free Zone jurisdiction.
- Simplify (Document Management): We manage the reservation, secure all initial approvals, draft the legal documents (MoA/AoA), and manage the full cycle of mandatory government and notary submissions.
- Automate (Post-Setup Compliance): We complete the final Trade License issuance, handle the mandatory CT/VAT registration, secure your Establishment Card, and initiate the visa application process.
Ready to launch your UAE company with a flawless legal and tax foundation? Choose your jurisdiction wisely.
📞 Contact FrankDigit Accounting Services today for strategic Mainland and Free Zone Company Formation.