AboutCOMPANY FORMATIONS

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FreeZone

Free Zones are one of the most favoured types of company formation in the UAE for investors who wish to do business in the UAE. The investors who cater to an international client base find the free zone company formation in the UAE attractive due to its cost-effectiveness and quick business
setup procedures. There are more than forty UAE free zones to form a company, which are located in specially fenced geographical areas.

The free zones are basically designed for investors who conduct imports and re-exports and most free zones are located near ports and international airports. The free zones are controlled and regulated by the respective free zone authorities who issue the trade license for the investors. Though the procedure of business setup in Dubai Free Zone is much more straightforward.

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Mainland

Starting a business in the UAE mainland is a great opportunity for foreign investors to enjoy conducting business in the wider UAE market. The mainland company formation in Dubai is controlled by the Department of Economic Development (DED) of respective emirates which regulates and issue the trade license.

By completing the process of company incorporation in the UAE mainland, foreign investors can do business anywhere in the UAE. The legal structure of a mainland business is directly governed by UAE laws and regulations. Depending on the shareholding structure, the following types of legal structures can be set up in the UAE Mainland.

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Offshore

The offshore company formation in the UAE is considered a great way for foreign investors who seek asset protection and investment diversification with great tax benefits. The process of offshore company registration in the UAE offers foreign investors a great opportunity to be taxed in both the UAE and the countries of origin of the investors. The UAE has signed Double Taxation Avoidance Agreements (DTAA) with around 115 countries and the offshore company registration in the UAE. However, the investors are not allowed to do any business in the UAE after registering an offshore company in any emirates in the UAE. There are three offshore business jurisdictions in the UAE located in three emirates and they are: JAFZA Offshore (Dubai), Ajman IBC Offshore (Ajman), RAK ICC Offshore (Ras Al Khaimah)

The offshore investors need to hire the services of registered agents with authorities who can be the responsible manager for their companies. The registered local service agent’s name can be added to the National Economic Register as the responsible manager.

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