Company Formation

Company formation in UAE

From our Dubai office, Rissos Corporate Services will help you identify the type of company most appropriate for your needs, and facilitate the full formation and company maintenance procedure. Please contact us for more information or to arrange an initial private consultation.

So what are the differences between a freezone, mainland and an offshore company?

UAE Freezone Company

Free Trade Zones are designated areas with special tax, customs and import regimes. The UAE has 45+ Free Zones across all seven Emirates.

Free Zone companies offer significant advantages to the other UAE jurisdictions as they allow 100% foreign ownership and the ability to issue residency visas. Free Zone companies are playing an increasingly important role in international tax and residency planning and they can be presented in international trade and transactions as a solid legal and operating entity and demonstrate sufficient substance for domestic and foreign banks and tax authorities.

The UAE is a zero-tax jurisdiction and therefore Free Zone entities benefit from zero income and corporation tax, full repatriation of capital and profits and full import and export tax exemption.

Free Zone companies can only trade within the boundaries of its Free Zone or internationally and not directly with the UAE market.

Rissos Corporate Services works with all Free Zone jurisdictions including Dubai South (DWC), Dubai Multi Commodities Centre (DMCC), Jebel Ali Free Zone (JAFZA), Ras Al Khaimah Free Zone (RAKEZ) and Sharjah Media City (SHAMs) having developed strong business relationships which will help us ensure smooth and hassle free from start to end.

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UAE Mainland Company

A mainland company is a legal entity that can operate inside and outside the country without any restriction. A mainland license, also referred to as an onshore company.

The Department of Economic Development (DED) is the regulatory authority for issuing these licenses in the UAE. According to the amended UAE company law in 2021, a mainland company setup in Dubai, United Arab Emirates allows 100% ownership to the foreigners. In certain activities the company should appoint local service agent even though ownership of the company belongs to the foreign investors. The type of business you set up in the UAE will determine whether you need a local service agent. A local service agent, on the other hand, does not maintain shareholding authority and instead acts as the company representative in all administrative dealings with government departments.

The main four types of mainland companies are

Limited Liability Company (L.L.C.)
Professional Firm / Civil Company
Branch of Foreign company
Representative Office

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UAE Offshore Company

Offshore companies are the ideal choice for businesses who do not require any physical office space. The UAE follows the traditional International Business Company (IBC) structure through its offshore registries: Ras Al Khaimah International Corporate Centre (RAKICC) and Jebel Ali Freezone (JAFZA).

The UAE is leading the innovation of Offshore jurisdictions and is now considered superior to traditional jurisdictions such as the BVI or Cayman Islands as it is located within a sizable nation with real trade. An offshore structure in the UAE serves as a valuable tool for asset protection, wealth management, tax planning and succession planning and remains straightforward to incorporate and maintain.

Offshore companies are typically used for

International Trading Firms (excluding the region in which they are based) who do not need a physical presence.
Advisory and Consultancy companies – who provide advice anywhere around the world excluding the UAE.
Holding Assets – holding shares in foreign real estate, holding intellectual property, tax efficient structures, trust and fiduciary arrangements.
Being a “tax-free” business jurisdiction, offshore company formation in UAE is a worthwhile option for entrepreneurs across the world.

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