One of the first and most critical decisions an Indonesian founder faces when expanding to the UAE is choosing the right jurisdiction: should you set up on the Mainland or in one of the dozens of Free Zones?

Your answer will directly impact your company's ownership, tax liabilities, and market access.

This decision is foundational and can be complex, as the regulatory landscape is designed to serve different business models. Making an informed choice from the beginning is crucial for long-term success and avoiding costly restructuring down the line.

Understanding the Difference

• Mainland: A Mainland establishment gives you the freedom to trade directly with the entire local UAE market and bid on government contracts. However, this often requires a local UAE National partner, though recent reforms have allowed 100% foreign ownership for many specific commercial and professional activities.
• Free Zone: This is the most popular route for international businesses. Free Zones offer 100% foreign ownership, 100% repatriation of capital and profits, and exemptions from import/export duties and corporate taxes. However, you are generally restricted to doing business internationally or within your specific Free Zone.

Conclusion

Making the right choice requires a deep understanding of your long-term goals. Before you take your first step, it is essential to consult with experts who understand the nuances of UAE law and the specific needs of Indonesian business models.