Mainland vs Freezone vs Offshore: Choosing the Right Jurisdiction for Your Business
Dubai is a global business hub, offering multiple company formation options tailored to different business needs. Starting a business in Dubai requires choosing the right type of company structure. The three main options are Mainland, Free Zone, and Offshore, each with its own advantages and limitations. Your decision should align with your business activities, target market, and ownership preferences.
Free Zone Company
Free zones are designated areas offering tax benefits, full foreign ownership, and simplified business setup. However, free zone companies cannot conduct business directly in the UAE mainland without a local distributor.
Key Benefits:
- 100% foreign ownership
- Tax exemptions and full profit repatriation
- No local sponsor required
Limitations:
Restricted to operating within the free zone or internationally
Visa allocation depends on office space size
Mainland Company
A mainland company allows businesses to operate anywhere in the UAE and internationally. Recent regulatory changes now permit 100% foreign ownership in many sectors.
Key Benefits:
- No restrictions on doing business in the UAE
- Unlimited visa eligibility based on office space
- Ability to work with government entities
Limitations:
Office space is mandatory (minimum 200 sq. ft.)
Higher setup costs than free zone and offshore entities
Offshore Company
Offshore companies are ideal for businesses looking to manage international operations while benefiting from tax advantages. However, they cannot conduct business within the UAE directly.
Key Benefits:
- 100% foreign ownership
- No physical office required
- Cost-effective setup with minimal maintenance
Limitations:
Cannot operate within the UAE market
No visa eligibilit
The Business Jurisdiction Guide
Download The Business Jurisdiction Guide for a details comparison and expert insights to help you make the right decision.
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As you embark on your entrepreneurial journey in Dubai, DBS Corporate Services stands ready to support you at every step. From company formation and licensing to visa processing and ongoing compliance support, we ensure a seamless and hassle-free experience, allowing you to focus on growing your business and achieving success in the vibrant city of Dubai. Get a Cost Estimate and a Free Consultation today to turn your business dreams into reality.
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