When it comes to setting up a business, the UAE is undoubtedly one of the best choices available. You have the option to establish your company in either a free zone or the mainland. Let’s explore which option might be the right choice for you. Both options come with their positives, drawbacks, and investment opportunities, depending on your business and its specific needs.

Why Choose Mainland?

A mainland company is an onshore entity registered with the relevant emirate’s government body. The Emirate’s Department of Economic Development (DED) issues its trade license. Here are the primary advantages of a mainland company:

Ownership: While certain business activities require a local sponsor or a UAE national partner, 100% ownership for expatriates is now also possible on the mainland.

Legal Structures: Various legal structures are available, including Sole Establishment, LLC, Holding Company, Branch, and Civil Company.

Commercial Activities: There are no restrictions on certain commercial activities as per your license.

Why Choose a Free Zone?

• Free zone companies can offer services to the global market.
• The free zones, benefit from zero tax policies.
• The UAE boasts over 45 free zones.
• Each free zone managed and administered by its own regulatory authority with unique laws and regulations.
• However, they cannot operate directly on the mainland..

Key Differences

• Government Clearance: A mainland company requires clearance from several government agencies, such as the Department of Economic Development, the Municipality of Dubai, and the Ministry of Labor. In contrast, free zones have their own regulations for businesses within their jurisdictions.

• Operational Scope: Mainland companies can conduct business anywhere in the UAE, while free zone companies are restricted to their respective free zones and cannot operate directly on the mainland without a local distributor.

Offshore Entity

An offshore company is ideal for entrepreneurs looking to establish a holding company in the UAE without conducting business within the country. It can facilitate international payments, manage trade, and benefit from a favorable tax regime. Additionally, an offshore company can help manage the ownership of a separate company within the UAE.

Choosing the right setup depends on your business goals and operational needs. We can assist you in evaluating these options to ensure you make the best decision for your business.