Business Setup In UAE

How To Business Setup In UAE Between Free Zone And Offshore Companies

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There are three major business jurisdictions in the UAE when it comes to forming a company: Free Zone, Mainland, and Offshore. The Free Zone and Offshore business jurisdictions are the most advantageous choices for foreign investors looking to easily business setup in UAE.

However, there are a few variations between Free Zones and Offshore jurisdictions in the UAE in terms of company structure, company setup procedures, and the essence of business operations.

What is a Free Zone Company in the United Arab Emirates?

A Free Zone Company may be formed in any of the UAE’s 40 or so Free Trade Zones. The Free Zone Establishment (FZE) is the most common company structure in a Free Trade Zone, with only one shareholder registered as the investor.

Then there’s the Free Zone Corporation (FZC), which may have two or more shareholders as shareholders. The UAE’s Free Zones have a variety of competitive company creation packages for investors looking to start a business in the area.

The Benefits of Investing in a Free Zone Company in the United Arab Emirates

One of the big benefits of a Free Zone Company in the UAE is that it can be owned entirely by foreigners. The investor will then repatriate 100% of the company income and capital to his or her home country.

The Formation of a Company in the UAE Free Zones

The Free Zone Company is an onshore company that is regulated by the respective Free Zone jurisdiction and is entitled to apply for a UAE residency visa, recruit workers, open a corporate bank account, buy land, sponsor employee and investor visas, and so on.

The method of business setup in Dubai Free Zones is relatively simple and requires little documentation. Depending on the nature of the company, the Free Zone authorities and other government authorities in the UAE can need a few approvals. It is best for the investor to enlist the help of a professional Business Consultant to complete the process of forming a company in the UAE’s Free Zones.

What is an Offshore Company in the United Arab Emirates?

A UAE offshore business is one that is registered with one of the UAE’s offshore jurisdictions. JAFZA, RAKICC, and Ajman Offshore are the three largest offshore jurisdictions in the UAE.

Highlights of an Offshore Company in the United Arab Emirates

Non-resident offshore companies in the UAE are regulated by the respective offshore jurisdictions. Investors and workers of an offshore company are not entitled to apply for UAE residency visas.

Key Business Benefits of Forming an Offshore Company in the United Arab Emirates

1. Tax Benefits

Any corporate authority or country’s tax regime does not apply to offshore companies. They pay no taxes on the income they generate. One of the main motivators for global investors to prefer offshore sector is the absence of taxes.

2. Confidentiality of Business

One of the main reasons why international investors choose to register an offshore company is to keep their ownership and investment assets private. There is no provision for an offshore corporation to maintain public records.

3. Ease of Setup and Low-Cost Maintenance

Setting up an offshore company is a relatively simple process that requires little paperwork. In the UAE, the procedure takes just two working days to complete, and the offshore company registration can be completed remotely without the involvement of the shareholder.

4. Having access to bank accounts.

Offshore companies registered with RAKICC in the United Arab Emirates are entitled to open bank accounts in the United Arab Emirates and other global business locations. Individuals can secure their assets by forming a holding company and transferring all of their assets to it.

Speak to our expert team at Immersion Group DMCC right away if you want to learn more about building a Free Zone and Offshore business setup in UAE!

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