MAINLAND COMPANY

A Mainland Company or Local Company is a company which is licensed by the Dubai-based Department of Economic Development (DED).

There are different kinds of entities that can be registered under the Local Company category.

• Limited Liability Companies (LLC) are ideal for trading companies and have a 51/49 percent ownership where 51% is held by UAE national and 49% by the expatriate.
• Professional Companies which are only issued to qualified expatriates can have 100% foreign ownership and needs an UAE national as a local service agent.  These licenses are ideal for professional agencies, consultancies, salons etc.
• Branch of Foreign Company or Representative Office is suitable for foreign companies wanting to do business in UAE.

A Local Company has no geographical restrictions on doing business in UAE, can issue employment visas to owners and employees and in most cases, needs to have a physical office.

FREE ZONE COMPANY

The Free Zones are clearly defined parts of the territory of the UAE. Within their territory, you can find special conditions of taxation, customs fees, etc. Free Zones may vary by types of activity, amount of initial capital required, the cost of the annual license renewal as well as the range of services provided.

The benefits of having a business here are impressive:

• A Free Zone is 100% owned by the investor
• No tax for transfer of funds
• 100% capital repatriation

These are just some benefits from a wide list of advantages, offered by the government of the jurisdiction for foreign investors, willing to register a Free Zone company in UAE.

There are several Free Zones in Dubai and these are again categorized in terms of the activity of the proposed company.  Some of them are as follows:

• Dubai Creative Cluster Authority (DCCA)
• Dubai Multi Commodities Centre Authority (DMCC)
• Jebel Ali Free Zone Authority (JAFZA)
• Dubai Airport Free Zone Authority (DAFZA)
• Dubai Silicon Oasis Authority(DSO)
• Dubai Healthcare City Authority(DHC)
• Dubai World Trade Centre(DWTC)
• Dubai World Central (DWC)

Apart from Dubai, there are Free Zones in Fujairah, Ajman, Sharjah, Umm Al Quwain, Ras Al Khaimah and Abu Dhabi.

OFFSHORE COMPANY 

If you are trading outside UAE or looking for a vehicle to hold property, the best way would be to setup an Offshore Company. There are two types of Offshore Companies that Zenesis can setup: UAE Offshore Company and International Offshore Company.

Following are the benefits of having an UAE Offshore Company:

• The possibility to open special offshore bank accounts with full internet access
• Suitable if you are trading outside UAE and receiving payments or commissions and do not need visas.
• More economical to incorporate and maintain as compared to Local or Free Zone Companies
• The ability to invest your money in property, without being a resident of UAE.
• The ability for residents of high tax paying countries to reduce their taxes.
• The ability to protect your assets for local laws and inheritance taxes.

A UAE Offshore Company is a good vehicle to help with owning property and avoiding local inheritance problems that may arise on death of the owner of the property.

Here are the benefits of having an International Offshore Company:

• The possibility to open special offshore bank accounts outside UAE
• More economical to incorporate and maintain
• The ability to invest your money in property outside UAE
• The ability to have a consultancy business or for making commissions
• Useful for invoicing clients
• No disclosure of directors and shareholders
• No requirement for share capital and annual audit filing