Best places to register businesses in UAE
Your business goals, activities, and preferences will determine where you register your company in the UAE—on the mainland, in a free zone, or offshore. Each choice has various benefits and considerations, so understanding the distinctions is critical for making an informed decision.
Mainland Company Registration:
Advantages:
Allows you to trade directly in the local UAE market without the need for a local partner (except for certain activities like legal consultancy).
Ownership:
Requires a UAE national to hold at least 51% ownership in the company, although various legal structures and agreements can mitigate the impact of this requirement.
Trade Restrictions:
Some activities require additional approvals or licenses from specific authorities.
Taxation:
Subject to corporate and income taxes, but the UAE does not levy personal income tax.
Flexibility:
More flexibility in terms of business activities, office locations, and hiring local and expatriate employees.
Cost:
Generally, the cost of setting up a mainland company is higher compared to free zones.
Free Zone Company Registration:
Advantages:
100% foreign ownership, no currency restrictions, and tax exemptions for a specified period (often 15-50 years).
Trade Restrictions:
Generally, free zone companies are limited to conducting business within the free zone or internationally, with restrictions on trading within the UAE mainland.
Flexibility:
More restricted in terms of business activities and office locations, but some free zones offer shared facilities and coworking spaces.
Cost:
Setting up a company in a free zone is often more cost-effective compared to the mainland, with various packages available to suit different business needs.
Ownership:
No requirement for a UAE national to be a shareholder or sponsor.
Offshore Company Registration:
Advantages:
Provides a level of privacy and asset protection, as well as the ability to hold global assets and bank accounts.
Trade Restrictions:
Cannot conduct business within the UAE but can hold investments, own property, and maintain bank accounts.
Ownership:
100% foreign ownership is allowed.
Taxation:
Exempt from corporate and income taxes.
Regulation:
Less regulatory compliance compared to mainland and free zone companies.
Affordable Business Set Up Consultants In UAE
The ideal site to establish your company in the UAE depends on your individual business needs and ambitions. Join hands with the business establishment experts at Startup Works to help you make the right choice to fulfil your dream venture.
