UAE Free Zones & Off-shore Company Setup

Setting up a business in the United Arab Emirates (UAE) requires careful planning and adherence to regulatory requirements. Whether establishing a mainland company, free zone entity, or offshore business, proper incorporation and registration are essential for legal compliance, tax efficiency, and operational success.

Types of Business Incorporation in the UAE

✅ Mainland Company

• Registered with the Department of Economic Development (DED) of the respective Emirate.

• No restrictions on business activities within the UAE.

• Can engage in government contracts and operate anywhere in the country.

• Subject to 9% Corporate Tax on taxable income above AED 375,000.

✅ Free Zone Company

• Established within one of the UAE’s designated Free Zones.

• 100% foreign ownership permitted.

• Enjoys 0% Corporate Tax on Qualifying Income (subject to conditions).

• Restricted from conducting direct business in the UAE mainland without a local agent.

✅ Offshore Company

• Used primarily for holding assets, international trade, and wealth management.

• No physical office required in the UAE.

• Not eligible for UAE residency visas.

• Cannot conduct business within the UAE mainland.

Company Incorporation & Registration Process

1️⃣ Choose the Right Business Structure – Decide between LLC, Free Zone, Branch, or Holding Company.
2️⃣ Select a Trade Name – Register an approved business name with the relevant authority.
3️⃣ Obtain Initial Approvals – Secure licenses and approvals from the UAE government and Free Zone authorities.
4️⃣ Prepare Legal Documents – Draft and notarize the Memorandum of Association (MOA) and other required contracts.
5️⃣ Lease Business Premises – Acquire an office space or virtual office, depending on the license type.
6️⃣ Obtain a Business License – Apply for a Trade License from the relevant DED or Free Zone Authority.
7️⃣ Register for VAT & Corporate Tax – Ensure compliance with UAE tax laws if applicable.
8️⃣ Open a Corporate Bank Account – Complete the banking setup for financial transactions.

Key Considerations for Business Registration

✔ Ownership Structure – Understanding foreign ownership laws and sponsorship requirements.
✔ Tax Implications – Evaluating Corporate Tax, VAT, and Free Zone incentives.
✔ Legal & Regulatory Compliance – Ensuring proper documentation, licenses, and permits.
✔ Business Activity Restrictions – Identifying sector-specific requirements for operations.