Company Registration in UAE: Mainland, Free Zone, or Offshore?
The UAE is a global hub for business, offering entrepreneurs and investors a choice of jurisdictions for setting up their ventures. Navigating the options Mainland, Free Zone, and Offshore is the first crucial step in your journey to company registration in the UAE.
Choosing the right structure is key to meeting your business objectives, whether you aim for full market access or seek maximum tax efficiency. We’re here to guide you through the features and step-by-step process for each option to help you make an informed decision.
Mainland Company Registration in UAE: Full Market Access
A Mainland company, registered under the Department of Economic Development (DED) of the respective emirate, grants you the maximum scope of business activities and unrestricted access to the local UAE economy.
Key Features of Mainland Companies
- Registration: Under the Department of Economic Development (DED).
- Business Scope: Unrestricted free trading within the UAE and globally.
- Ownership: Recent laws allow up to 100% foreign ownership for most business activities.
- Requirement: Requires a physical office space with a registered Ejari or tenancy contract.
- Time Frame: Typically 5–10 working days.
Steps for Mainland Company Registration in the UAE
Choose Your Business Activity: Select Commercial, Professional, or Industrial activities.
Reserve Trade Name: Apply for approval via the DED’s online portal.
Initial Approval: Obtain an initial certificate confirming the government has no objection to your proposed activity.
Prepare Memorandum of Association (MOA): The MOA must be legally notarised as per UAE law.
Lease Office Space: Secure and register your office space (Ejari or tenancy contract).
Submission & Payment: Submit all required documents and process the final fee payment.
License Issuance: Receive your Mainland Trade License.
Free Zone Company Registration in UAE: Tax Benefits and Control
Free Zones are special economic areas that offer unparalleled benefits for international trade and specific industry sectors. This is the preferred route for entrepreneurs prioritizing complete control and tax advantages.
Key Features of Free Zone Companies
- Ownership: Offers 100% ownership to foreign investors.
- Benefits: Enjoy tax benefits, 100% repatriation of capital and profits, and minimal documentation.
- Market Limitation: Trading in the UAE Mainland is only possible through a local distributor.
- Selectivity: You must select a specific Free Zone (e.g., IFZA, SPC, SHAMS).
- Time Frame: Typically 7–10 working days.
Steps for Free Zone Company Registration
Select Free Zone: Choose a relevant authority based on your needs and budget.
Choose Activity & Structure: Define your business activity and legal structure (e.g., Free Zone Establishment (FZE) or Free Zone Company (FZC)).
Select Trade Names: Propose three company names according to the Free Zone’s rules.
Application & KYC: Submit your formal application, pay fees, and complete the mandatory KYC submission and approval.
Documentation: The Free Zone drafts the Memorandum of Association (MOA) and Resolution for you to sign.
Trade License Issuance: The trade license documents will be issued once all steps and third-party approvals (if any) are secured.
Offshore Company Registration in UAE: Global Privacy
An Offshore company is a corporate entity designed purely for international business, asset protection, and wealth management. It is not permitted to conduct any trade within the UAE.
Key Features of Offshore Companies
- Purpose: Strictly for International Business and holding assets.
- Physical Presence: No office space requirement and no corporate tax.
- Jurisdiction: You must choose an offshore jurisdiction (e.g., JAFZA, RAK ICC, Ajman Offshore).
- Time Frame: The quickest option, typically 5–7 working days.
Steps for Offshore Company Registration
Choose Jurisdiction: Select an appropriate offshore authority (JAFZA, RAK ICC, Ajman offshore).
Select Name & Structure: Finalise your company name and legal structure.
Submission & Approval: Submit all required documents for review.
Incorporation: The company is formally incorporated.
Issuance of Documents: Receive your official incorporation documents.