The geographical location, tax-free status, and endless opportunities have made Dubai a haven for investors. The city provides a level playing field for everyone. Be it someone who owns a big business somewhere else and wants an expansion in the UAE or just setting up their first startup. However, if you are new to the business here, you must first understand the governing rules and regulations. The government authorities have created three different jurisdictions: free zones, mainland (onshore), and offshore. Imagine these as different domains and areas with varying opportunities and restrictions. A mainland company in any emirate is listed with the government of that particular Emirate. However, a free zone company will be in a specific jurisdiction of that Emirate. The registration processes and the operating terms and conditions will differ from each other.
Where you set up your company is largely dependent on the nature of your business. There are merits and demerits attached to opening a company in any one of the zones. Without a clear understanding of what benefits and limitations you will get by setting up your business in any of the jurisdictions, you may be unable to make the correct choice. We are drawing a thorough comparison between many factors in our discussion below so you can grasp the concept and make the right decision with your company setup in Dubai.
Prior to 2020, one of the biggest distinctions between a firm in any free zone and one on the mainland was that an investor could not have complete possession of their company onshore. The majority of the shares, 51%, would be owned by a local. However, after 2020, things changed for mainland firms as well. Even if you establish your company on the mainland, you may now have entire ownership. Entrepreneurs could own their free zone firms outright from the start. The same is true for offshore corporations that investors might entirely own.
Onshore companies can operate and do business anywhere in the UAE and worldwide. Free zone firms are restricted to working solely inside their jurisdiction. They can also collaborate with clients from other countries. However, offshore corporations are not permitted to undertake business within the UAE.
When you establish a company in the UAE, you will be given a trade license, a certification allowing you to run your business legally. If you are establishing a mainland corporation, you must register with DED. However, when setting up a free zone business, you must enroll with the relevant free zone authorities. We have got you if you are interested in business setup services in the UAE. You sit back and relax, and we will do the job.
Mainland businesses must have a physical address and location. The authorities verify that you have hired a workspace during the registration procedure. In this context, free zone enterprises benefit more. They can opt to work from virtual offices if they do not have any office space. Offshore businesses are not permitted to open an office in the UAE.
The cost of establishing a free zone firm in the UAE will be relatively substantial, as will the registration and licensing fees. A specific capital is also required to establish a firm in any UAE free zone. Setting up a firm on the mainland entails several processes and will be pricey. An offshore corporation is significantly less expensive than its two counterparts.
A mainland business setup in Dubai can issue as many visas as it needs. Of course, the number is also determined by the size of the office. Authorities in free zones limit the number of visas that may be issued from a single trade license, which varies by location. A UAE offshore company cannot issue any resident visa.
Setting up a business in Dubai is an exciting opportunity, especially with the city's reputation as a global business hub. Entrepreneurs from all over the world are drawn to its tax-friendly policies, modern infrastructure, and strategic location. However, if you’re a non-resident, you might face some challenges — especially when it comes to opening a […]
Starting a business in Abu Dhabi offers an array of opportunities, from tax advantages to access to one of the most dynamic economies in the Middle East. However, the process of company formation in Abu Dhabi can be complex, especially for those unfamiliar with the region’s regulations and legal requirements. If you’re planning to establish […]
Opening a personal bank account in Dubai can be a complex task, especially if you're unfamiliar with the local banking procedures. But don't worry, we're here to assist you through every stage of the process. Dubai's banking sector is robust, offering a wide range of options tailored to meet the diverse needs of its residents. […]
The United Arab Emirates (UAE) is a place where opportunities rise every minute. This dynamic nation has transformed itself into a global hub of innovation, commerce, and cultural diversity, offering a wealth of possibilities for individuals seeking to advance their careers, especially those related to the healthcare sector, like nursing. The UAE's healthcare sector is […]
Considering launching a small business in the United Arab Emirates (UAE)? This booming economy offers a wealth of opportunities! But where to start? You're in the right place! Starting a small business here can be exciting and rewarding. Let's dive into some great small business ideas in the UAE all with the potential to generate […]
Thinking about starting a company in Dubai Internet City? You’re in the right place! Dubai Internet City (DIC) is one of the best spots for tech businesses. This blog will walk you through the steps and benefits of a company setup in Dubai Internet City Dubai internet city which is a thriving free zone. Why […]
The UAE Blue Visa is a new type of long-term visa introduced by the UAE government. It’s designed to attract individuals who have made significant contributions to environmental protection both inside and outside the country. If you're an investor looking to make a positive impact and benefit from the UAE's booming economy, this visa could […]
Have you ever dreamt of studying abroad in a dynamic, forward-thinking nation brimming with cultural richness and exceptional academic opportunities? Then look no further than the United Arab Emirates (UAE)! In this article you will learn how to apply for a golden visa UAE for students and how to stay longer and enjoy more benefits, […]
If you’re an investor and you’re looking for the best place to start a small business, well we have the perfect location! Open your small business in Dubai! Yes you heard it right Dubai is full of opportunities and we at freezoner will help you step by step in the process, with some simple steps. […]
The UAE government and the Ministry of Finance launched a new corporate tax update. The new updates come as a review by the Federal Tax Authority on businesses' net profit. The UAE government seeks to achieve strategic economic goals by creating a fast-paced transformation in the legislative regulations. The corporate tax update was effective in […]
Still hesitant about acquiring the Golden Visa or facing some obstacles? Here are some new updates on the property Golden Visa that will urge you to make the right decision. The UAE government has launched new updates regarding the property Golden Visa to encourage more investors to apply for the Dubai Golden Visa. […]
In this ultimate guide, we will shed light on how to open a company in Saudi Arabia and answer why you should choose Saudi Arabia in the first place. Admittedly, Saudi Arabia is one of the supportive environments in terms of economic growth. Lately, the Saudi stewardship is launching several economic initiatives. One […]
