AMER OFFICE DUBAI VS register ejari contract. FREE ZONE: WHICH IS RIGHT FOR YOUR BUSINESS?
You’re standing at a crossroads: Amer service centers in Dubai or a free zone setup. Both paths lead to a registered business, but the rules, costs, and benefits differ sharply. This guide cuts through the noise so you can pick the route that matches your goals, budget, and timeline.
WHAT IS AN AMER OFFICE IN DUBAI?
An Amer office is a physical desk or flexi-desk inside one of Dubai’s Department of Economic Development (DED) service centers. Amer is the brand name for DED’s customer-service counters. When you rent an Amer desk, you get a mainland trade license issued by DED, not by a free-zone authority.
Amer desks start at AED 15,000 per year for a flexi-desk and go up to AED 35,000 for a dedicated desk in prime locations. You pay the rent to the Amer center, and the center handles the tenancy contract (Ejari) and utility connections. The license is renewable annually, and you can add activities from DED’s mainland list.
WHAT IS A FREE-ZONE COMPANY IN DUBAI?
A free-zone company is registered under one of Dubai’s 30-plus free-zone authorities. Each free zone has its own regulator, license types, and office requirements. Most free zones offer flexi-desks, smart offices, or warehouses. You sign a lease directly with the free zone, and the free-zone authority issues the license.
Free-zone licenses start at AED 12,000 per year for a flexi-desk and can exceed AED 50,000 for a physical office in premium zones like DMCC or DIFC. The license is usually valid for one to three years, and renewal fees include the desk rent. Free zones allow 100 % foreign ownership and zero corporate tax on qualifying income.
WHICH ONE ALLOWS 100 % FOREIGN OWNERSHIP?
Amer offices on the mainland require a local sponsor who holds 51 % of the shares unless your activity is on the DED’s “100 % foreign ownership” list. That list covers over 1,000 activities, mainly in professional services, consulting, and e-commerce. If your activity is not on the list, you must find a UAE national or a corporate nominee to act as sponsor.
Free zones automatically allow 100 % foreign ownership for all activities. You do not need a local sponsor, and you retain full control of the company and its bank accounts. This is the biggest draw for international entrepreneurs who want to avoid shared ownership.
WHAT ARE THE OFFICE REQUIREMENTS FOR EACH?
Amer offices require a minimum of one physical desk inside an Amer service center. You cannot use a virtual address or a co-working space outside the Amer network. The desk must be registered under your trade name, and you must produce an Ejari certificate every year at renewal.
Free zones set their own office rules. Most zones offer flexi-desks that include a mailbox and a few hours of desk use per month. Some zones, like DMCC, require a physical office of at least 200 sq. ft. for certain activities. Others, like RAK Digital Assets Oasis, allow fully remote setups with no physical desk. Check the zone’s rulebook before you commit.
WHICH ONE GIVES ACCESS TO THE UAE MAINLAND MARKET?
An Amer-licensed mainland company can trade anywhere in the UAE without restrictions. You can sell to government entities, open retail shops, and bid on federal tenders. You also get a mainland visa quota based on your office size: one visa per 80 sq. ft. of rented space.
A free-zone company can only sell to mainland customers if it appoints a local distributor or sets up a mainland branch. The branch requires a separate DED license and a local service agent, adding cost and complexity. Free-zone visas are tied to the free-zone office: typically one visa per flexi-desk and one additional visa per 9 sq. m. of physical office.
WHAT ARE THE TAX DIFFERENCES BETWEEN AMER AND FREE ZONE?
Mainland companies with an Amer license pay 9 % corporate tax on annual profits above AED 375,000. They also pay 5 % VAT on taxable supplies and must file returns quarterly. The tax residency certificate is issued by the Ministry of Finance after one year of operation.
Free-zone companies enjoy 0 % corporate tax on qualifying income, provided they meet the “substance” requirements: a physical office, employees, and active business operations. They still register for VAT if their taxable supplies exceed AED 375,000 per year. The free-zone authority issues the tax residency certificate, often within 30 days of setup.
WHICH ONE IS FASTER TO SET UP?
An Amer desk and mainland license can be ready in 3–5 working days if you have all documents in order. You book an appointment online, visit the Amer counter, pay the fees, and walk out with a trade license. No external approvals are needed for most professional activities.
Free-zone setups take 7–15 working days. You submit documents online, wait for initial approval, sign the lease, and then receive the license. Some zones, like DMCC, require an in-person visit for biometrics. Others, like RAK Free Zone, offer fully remote registration. Delays often come from document attestation or bank-account opening.
WHICH ONE IS CHEAPER IN THE FIRST YEAR?
Amer flexi-desk packages start at AED 15,000, including license, desk, and one visa. You pay extra for additional visas, activity fees, and government charges. Total first-year cost for a single-owner consultancy is around AED 22,000.
Free-zone flexi-desk packages start at AED 12,000, but you must add visa costs, immigration card, and free-zone authority fees. A typical first-year cost for a single-owner consultancy in a mid-tier zone is AED 20,000–AED 25,000. Premium zones like DMCC or DIFC push the total above AED 35,000.
WHICH ONE IS CHEAPER IN THE LONG RUN?
Amer renewals cost about the same as the first year: AED 15,000–AED 20,000 for the desk and license. You avoid free-zone authority mark-ups, but you pay 9 % tax on profits above AED 375,000. If your revenue stays below the threshold, the