How to Choose the Best Location in Dubai to Start A New Business

Business Setup,Business Locations,Company Formation

How to Choose the Best Location in Dubai to Start A New Business

Dubai is a bustling city with many options for company owners wishing to launch or grow their businesses. However, picking the ideal location for a firm is one of the most important decisions that entrepreneurs must make. Before choosing the location for your business set up in Dubai, it is crucial to get guidance from professionals in the field because the appropriate location can have a significant impact on a company’s performance.

In this article, we will elaborate on the key factors to consider when selecting the best location for company formation in Dubai. But before then, let’s examine the three industrial/trading zones or locations present in Dubai which are:

  • Free Zones
  • Offshore Companies
  • Mainland Location

Free Zones

The free zones in Dubai are places set aside where companies can operate with 100% foreign ownership and take advantage of tax exemptions, customs benefits, and other incentives . Businesses engaged in manufacturing, commerce, and import and export are popular in the free zones. Dubai International Financial Centre (DFIC), Jebel Ali Free Zone (JAFZA) and Dubai Multi Commodities Centre (DMCC) are some of the popular free Zones in Dubai.

Offshore Companies

Offshore businesses in Dubai offer a tax-effective way to conduct business in the UAE. International operations are permitted for offshore businesses, and there are no limitations on the remittance of capital or profits. The fundamental benefit of offshore companies is the complete absence of taxes, which enables businesses to maximize their earnings. Some of the well-liked offshore choices in Dubai are JAFZA Offshore, RAKICC, and Ajman Offshore.

Mainland Locations

Businesses wishing to operate in the UAE market can consider Dubai’s mainland locations. Businesses operating in the mainland must have a local partner or sponsor and adhere to UAE immigration and labor laws. Licenses for the mainland are issued by the Dubai Department of Economic Development, allowing companies to operate all over the United Arab Emirates. Retail, hotel, and service-based companies choose mainland locations for their business set up in Dubai because they provide more flexibility in terms of office space options and connectivity to regional markets.

Below are some factors to put into consideration when selecting the best location for your business in Dubai:

# Identify Your Business Needs and Goals

The needs and objectives of your company will determine the best location for it. Free zones provide tax exemptions and customs advantages, but they could have limitations on the kinds of commercial activity that are permitted. Offshore businesses offer tax-effective solutions for conducting business abroad, but they are not permitted to conduct business in the UAE market. Businesses may operate in the UAE market from mainland locations, although doing so necessitates a local partner or sponsor and adherence to UAE legislation.

# Target Market

You must make sure the market the location provides can improve your business possibilities. A company formation in an area of Dubai that does not provide the necessary services, resources, or markets for the goods you are selling is not advantageous. If your company, for instance, serves wealthy clients, locations like Dubai Marina or Palm Jumeirah can be appropriate. On the other side, regions like Jumeirah or Al Barsha may be a better choice if your target demographic is largely families.

# Access to Infrastructures and Amenities

Infrastructure plays a vital role in the success of any business. When choosing a location for business set up in Dubai, entrepreneurs should take into account facilities like shopping centers, dining options, proximity to airports and seaports, telecommunications services, public transit, and access to utilities like water and electricity when choosing a location. Downtown Dubai and Dubai Marina enables access to a lot of amenities while a less civilized area like the Arabian Ranches may not.

# Expenses and Fees for Setup

When choosing a location, the setup fees and charges for a business should be taken into account. You might not need to establish the firm in an expensive location if you’re thinking about starting small and planning to grow later. Once the business grows, you may open branches or more offices in the posh area.

# Possibilities for Growth and Expansion

The area in Dubai must offer your company the most chances for growth and expansion. You can gain insight into the likelihood of success at a location by doing research on the neighborhood, the types of businesses, and their track record. You shouldn’t open a business blindly in any of the areas of Dubai. Even if Dubai provides the best assistance for investors, you should think about all factors before spending your hard-earned money there.
RSN Consultancy Accounting & bookkeeping firm


Entrepreneurs seeking to establish a company formation in Dubai must carefully weigh their options before selecting a location that best satisfies their needs and objectives. The right location can have a big impact on your company’s success because free zones, offshore businesses, and mainland locations all have different benefits and drawbacks.You can make an informed decision and position your business for success in Dubai’s dynamic business environment by conducting in-depth research and getting expert advice.

Are you considering setting up a company in Dubai? RSN Finance can not only help you consult and help you set up the right choice for business formation but also assist in your accounting and bookkeeping services. Call us right away for a free consultation.

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