Mainland vs Freezone vs Offshore: How to Choose the Right Business Setup in the UAE
Starting a business in the UAE offers exciting opportunities, but choosing between Mainland, Freezone, and Offshore business structures can be overwhelming. Each option has its own set of advantages depending on your business goals, ownership preferences, and where you intend to operate. Let’s break it down to help you make an informed decision.
Key Differences: Mainland, Freezone, and Offshore Business Setups
Summary Comparison: Mainland vs Freezone vs Offshore
|
Feature |
Mainland |
Freezone |
Offshore |
|
Location |
Anywhere in the UAE |
Designated Freezone areas only |
Ras Al Khaimah (RAK) or JAFZA |
|
Ownership |
51% local sponsor, 49% foreign |
100% foreign ownership |
100% foreign ownership |
|
License Types |
Trading, Service, Industrial |
Trading, Service, Industrial (with restrictions) |
General Trading, Holding, Investment |
|
Operations |
In UAE & internationally |
Within Freezone & internationally |
Outside the UAE only |
|
Custom Duties |
5% on local sales |
5% on sales from Freezone to UAE |
Not applicable |
|
Office |
Flexible location |
Only within Freezone |
Not permitted |
|
Visa |
1 visa per 8 sqm |
1 visa per 8 sqm |
Not permitted |
|
Share Capital |
No minimum capital |
Varies, minimum AED 50,000 |
No minimum capital |
|
Audit |
Not mandatory |
Annual audit required |
Not required |
|
Setup Timeline |
10-20 working days |
20-30 working days |
15-20 working days |
|
Bank Account |
Allowed |
Allowed |
Allowed |
Which Business Setup is Right for You?
The decision between Mainland, Freezone, or Offshore comes down to your business objectives and operational needs. Here's a quick guide:
- Mainland is ideal for businesses looking for full operational freedom both within the UAE and internationally.
- Freezone is perfect for businesses focusing on international trade and seeking tax benefits without the need for a local sponsor.
- Offshore is the best option for those who want to enjoy tax benefits and global operations without a physical presence in the UAE.
Let Proficient Help You Choose the Best Business Structure
At Proficient, we specialize in guiding investors through the process of selecting the right business setup in the UAE. Whether you're considering a Mainland, Freezone, or Offshore structure, we provide expert advice and support to ensure that your business is set up smoothly and in full compliance with UAE regulations.
Contact us today to learn more about your business setup options in the UAE and how we can help you get started on the right foot.