Local companies are usually opened with the aim to either distribute the products in the local market or sell them as a retailer, or provide professional services to the end customers.

Local business within UAE can be done either through a Mainland company or a Free Zone company. The option you go for depends on your business activity.

If you are into intellectual services, such as management, advertising, IT, marketing, bookkeeping and other types of intangible services, you can have a Free Zone company in Dubai or any other Emirate. You will be able to provide the services throughout the UAE.

In case you are an importer of some products, your company can also be registered in any Free Zone. You will be able to import the goods to the UAE through any port or airport and sell them to the distributors, which have to be local companies.

If your company is into servicing the end customers or trading in retail, you have 2 options.

Option one is to set up your business in a Free Zone, which is integrated into the city, such as DMCC, Internet City, Healthcare City. You can rent a shop or a retail space to trade or provide your services to the public.

Option two is to register a local mainland company – it does not limit your business in terms of the location. You can rent any space in any area of Dubai except Free Zone areas.

There are certain types of businesses which can only be registered as a mainland setup, namely travel agency, real estate agency, hospital, school, rent-a-car agency, etc. Other typical mainland setups include beauty salons, coffee shops or restaurants, sport clubs, educational facilities.

Many local types of business need to be approved by the UAE authorities responsible for the type of business which is being registered. It could be Dubai Municipality for food or cosmetics trading, Land Department for real estate related activities, Ministry of Health for healthcare related services.