UAE Company Setup- Mainland, Freezone, and Offshore

Setting up a business in the UAE is a strategic step that will give you a booming economy, tax benefits, and a geo-strategic position at the very gate of international trade. From Mainland to Freezone to the offshore setup, the UAE has come up with different aspects to cater to each and every kind of business need. At Business Heads, you are offered a full company formation service to guide you smoothly through the jungle of regulations of starting a business in the UAE. This will ensure that the setup is quick and hassle-free for you.

Mainland Company Formation in UAE

Establishment of a mainland company in the UAE allows companies to operate freely in the UAE and also everywhere around the world. In addition, unlike freezone and offshore companies, it enables a mainland company to take up almost any kind of business activity with an exception of a few reserved ones and also sell its products or services directly in the UAE local market without any restrictions.

Key Advantages of Mainland Company Formation:

Full Market Access:

Mainland companies can sell their products or render services within every part of the UAE without any constraints, which enables them to deal directly with the local and international markets.

Diverse Business Activities:

On the mainland, it is free to consider any kind of business activity, such as retail, manufacturing, professional services, etc.

Government Contracts:

A company on the mainland is allowed to bid for government contracts that are very gainful and in most cases are only open to companies registered on the mainland.

Strategic Location:

Businesses on the mainland enjoy the strategic location and infrastructure of the UAE, which allow access to some of the finest logistics, transport, and communication networks globally.

Process of Mainland Company Formation:Selecting a Business Activity:

First step to mainland company formation in Dubai is the selection of the right business activity, because this will determine the license types a company needs to obtain and other regulatory requirements. Choosing a Legal Form: Depending on the nature of the business, you have several options: LLC, Sole Proprietorship, or Branch Office. Finding a Local Sponsor:

In the case of some categories of business, one needs to have a local Emirati sponsor or partner who, at the minimum, possesses 51% shares of the firm. In some businesses, it is now been approved recently for full foreign ownership.

Acquiring a Trade License:

A trade license is imperative in the UAE for conducting business legally. It involves the submission of all the necessary documents and approval by the competent authority

Office Space Requirements:

Mainland companies are supposed to have a physical office space in the United Arab Emirates; such office space is mandatory for the completion of the registration process.

Freezone Company Setup in Dubai

Freezone company setup in Dubai is ideal for businesses looking for full foreign ownership, tax exemptions, and simplified import/export processes. Freezones represent those geographical areas, which offer different types of incentives to businesses; therefore, these zones remain a superior choice for international investors.

Key Benefits of Freezone Company Setup:

100% Foreign Ownership:

That means that, unlike in mainland companies, free zone companies can be fully owned by foreign investors without any requirement of a local partner or sponsor.

Tax Exemptions:

Free zones have tax advantages. It includes an exemption on corporate tax, import/export duties, and income tax.

Simplified Import/Export:

Free zones have easy access to international markets through simple customs procedures and are, therefore, ideal for trading and logistics businesses.

Repatriation of Profits:

They enable investors to repatriate 100% of their profits and capital for financial flexibility and security.

Scope of Business Activity:

The freezones host technology, finance, media, healthcare, and logistics-oriented businesses. Each has licenses suited to its specific industry or business area.

Freezone Company Setup Process:

Choosing the Right Freezone:

There are over 45 freezones in the United Arab Emirates, each with its unique services catering to particular industries or types of business activities. Finding the right free zone is a very important decision for your future business.

Freezone License:

The type of license to be obtained depends on the business activity. The most common types are trading, service, industrial, and e-commerce licenses.

Lease Agreements:

Freezone companies must lease an office or warehouse space in the free zone. Some free zones have flexi-desk or virtual offices.

Visa Eligibility:

Freezone companies can sponsor visas for employees and dependants. The number would depend on office area and the business activity.

Bank Account Setup:

After having the freezone license, the next process is opening a corporate bank account in United Arab Emirates. 

Offshore Company Setup UAE

The setting up of an offshore company in UAE has now become a very lucrative option for those companies seeking asset protection and international tax planning and privacy. The offshore companies cannot operate inside the UAE but are able to carry on their international business activities.

Key Benefits of an Offshore Company Setup:

Tax Efficiency:

The Cayman Islands will normally have zero-tax corporate entities and no VAT, thereby making it a very good tool in international tax planning.

Asset Protection:

This can be used for the holding of assets, such as property, intellectual property, and even investment in other venture capital firms. This provides a better facility in asset protection.

Confidentiality and Privacy:

In an offshore company, confidentiality and privacy are well managed, without the publication of shareholders and directors.

No Office Space:

No physical office in the UAE; therefore, no operational cost.

International Trade:

An offshore company can undertake international trade and open bank accounts to subsequently contract with overseas customers.

Offshore Company Incorporation

Selection of Offshore Jurisdiction:

There are different types of offshore jurisdictions in the UAE, like JAFZA Offshore and RAK ICC. The selection of the type of offshore jurisdiction to be used depends upon your objectives.

Business Name Selection:

It should also be acceptable under the rules of the jurisdiction in which incorporation is sought and also not include restricted words such as "bank," "insurance," etc.

Appointment of Directors and Shareholders:

There should be at least one director and one shareholder in an offshore company; the same individual or corporate body can act as both.

Preparing Documents:

The documents to be prepared are a copy of the passport, proof of address, and a business plan. The proposed documents must be forwarded to the concerned authority in the jurisdiction of incorporation.

Bank Account Setup:

It permits opening a multi currency bank account in UAE and even internationally for the offshore company, which makes all the transactions around the world easy.

Why Choose Business Heads for UAE Company Formation?

Customised Solutions: Your business is unique and special to us. Be it mainland, free zone, or offshore company setup; our team shall be happy to help you with customized solutions.

Expert Guidance: With several years of experience in the UAE market, we guide you through every step of the company's formation according to the local regulations and assure a smooth setup for the same.

Comprehensive Services: From obtaining licenses to opening bank accounts and visa processing, we offer end-to-end services to make your business journey smooth in the UAE.

Ongoing support: We do not stop at company formation but offer ongoing support and consultancy in growing your business profitably in the UAE.

Get Started with UAE Company Formation Today

Be it the mainland company setup, a free zone setup, or even an offshore entity setup; Business Heads are here to guide you through the process. Please feel free to contact us today to discuss your business objectives and learn how Business Heads can help you reach your aspirations in the UAE market.