Overview
Among the 7 emirates of the UAE, a business setup in Dubai is continuously gaining popularity due to the availability of 100% business ownership, huge tax advantages, great infrastructure, and easy visa and business setup process.Â
Dubai, ‘The City of Gold’ is the ideal destination for investors, offering various business structures and jurisdictions to start your entrepreneurial journey.Â
When it comes to starting a company in the UAE, choosing the right jurisdiction is important to ensure your business’s success. Mainland, Freezone, and Offshore are key types of jurisdictions available in the UAE that have their unique advantages and regulations. Connecting with a business setup consultancy can advise you on the best business structure, considering the needs and goals of your business.Â
As an expert business setup consultancy in the UAE, here, we will help you understand the specific advantages and regulations relevant to mainland, free zone, and offshore business structures in the UAE.Â
Mainland/ Freezone/ Offshore: Which is right for business setup in Dubai?
Assisting people in their company formation in Dubai is not our job, it’s our passion. We are Arab Business Consultants who specialize in providing the best business setup services in Dubai Mainland, Free zone, and Offshore.Â
If you want to set up your dream business in Dubai, let’s discover the right jurisdiction for you together.Â
Mainland Company Setup in Dubai
Mainland business setup in Dubai allows you to choose from over 3,000 business activities and enjoy the freedom to trade and run business operations anywhere in the UAE and globally.Â
A mainland company in Dubai is licensed by the DED ( Department of Economic Development) which offers a prosperous future for business activities and professional ventures. Mainland business setup benefits you with location flexibility zero restrictions, broad working scope, complete business ownership, and access to lucrative government contracts.Â
Free Zone Company Setup in Dubai
Freezone business setup in Dubai refers to a specific type of business registration that allows you to enjoy 100% business ownership, tax benefits, and incentives provided by the government.Â
Currently, the UAE has around 67 freezones and new ones are continuously being added every year.Â
The main reason most of the investors prefer business setup in Dubai‘s free zone is there is no restriction on foreign ownership and companies are governed by an independent Free Zone Authority.Â
Offshore Company Setup in Dubai
Offshore business setup in Dubai allows you to carry out business activities outside the UAE. this kind of business entity is incorporated in one of the free zones of Dubai or any other emirate of the UAE. Dubai’s offshore business setup offers various advantages including restricted liability, huge tax benefits, complete business ownership, and more.Â
Difference between Mainland, Free Zone and Offshore Business Structures
While choosing a jurisdiction for business setup in Dubai, business ownership, scope, audit, available visas, capital requirements, and privacy are the main parameters that you need to consider. Based on these parameters here we have provided the key differences between a mainland, freezone, and offshore company in Dubai.Â
Business Ownership
Mainland Company: The investor can acquire only 49% of business shares and the remaining 51% should be acquired by a local sponsor in Dubai.Â
Freezone Company: The entrepreneur holds complete ownership of the business.Â
Offshore Company: The investors have complete business ownership if it is located outside the UAE.Â
Business Scope
Mainland Company: This business structure allows you to do multiple business activities anywhere in the UAE.Â
Freezone Company: It is not allowed to do business (manufacturing and selling) outside its free zone in the UAE.Â
Offshore Company: These companies are restricted to doing business activities inside the UAE but are free to run a business outside the Emirates.Â
Audit
Mainland Company: These companies have to prepare audits at the end of every financial year.Â
Freezone Company: Exect some businesses, free zone companies are not required to audit.Â
Offshore Company: Do not require any audit.
Visas
Mainland Company: Provide you with a residence visa depending on the size of the work premises. Â
Freezone Company: A Residence visa is provided based on the size of the office/ work premises
Offshore Company: Since there is no need for any office space so, it does not offer any residency visa.Â
Govt Authorities for Company setup
Mainland Company: permissions from authorities such as DED, Dubai Municipality, Ministry of Labor (MIL), Ministry of Interior (MOI), and more.Â
Freezone Company: These companies have their own rules, and do not require approvals from only free zone authorities.
Offshore Company: RAK (Ras Al Khaimah) and the JAFZA (Jebel Ali Free Zone) offer offshore company formation that requires approvals from related free zone authorities.Â
Cost of Company Set up
Mainland Company: Mainland business setup cost is comparatively higher than other business structures.Â
Freezone Company: Freezone business setup cost is comparatively less than a mainland company.Â
Offshore Company: This business structure offers a low-cost business setup in Dubai.Â
Conclusion: Ready for Your Business Setup in Dubai?
Mainland, Freezone, and Offshore are the most popular business structures available for business setup in Dubai. Here we have demonstrated the major differences between these business structures. Hope it will help you to identify the right business structure for your business.Â
If you need any suggestions for choosing a jurisdiction and starting a company in Dubai, you can connect with expert business advisers of Arab Business Consultants. We are here to provide you with the best PRO services, local sponsorship, VAT services, and virtual office setup services in the UAE.Â
Visit our website to get the latest updates on business setup in Dubai and the UAE.
