How to start a business in Dubai? Starting a business in the UAE? Whether you’re a local entrepreneur or a foreign investor, choosing the right legal structure is one of the most important decisions you’ll make. The UAE offers several types of business entities, each with its own benefits, requirements, and legal implications. We offer accounting services in Dubai so we can introduce you in all what you need to know about taxes in Emirates.
In this article, we’ll break down the most common types of companies in the UAE – so you can start with clarity and confidence.
🇦🇪 1. Mainland company (Onshore license)
A mainland company allows you to do business across the UAE and internationally, with no restrictions on the number or type of clients. It is licensed by the Department of Economic Development (DED) in the respective Emirate.
Key features:
- Can trade directly with the local UAE market.
- No limit on visas (subject to office space size).
- Ideal for companies targeting government contracts or operating widely within the Emirates.
Ownership:
As of recent reforms, many activities allow for 100% foreign ownership, although some strategic sectors may still require a local sponsor.
🏙️ 2. Free Zone company
Free zones are special economic areas that offer 100% foreign ownership, tax benefits, and simplified setup processes. There are over 45 free zones across the UAE, including popular ones like DMCC, DIFC, JAFZA, and Abu Dhabi Global Market (ADGM).
Key features:
- Fast company formation process.
- 0% corporate and personal income tax in most zones.
- Import/export benefits.
- Offices and flexi-desk options available.
Limitation:
Free zone companies generally cannot trade directly with the UAE mainland unless they appoint a local distributor or open a mainland branch.
🌐 3. Offshore company
An offshore company is a legal business entity set up outside the UAE mainland and free zones, often used for international trade, holding assets, or wealth structuring. These are typically registered in JAFZA (Dubai), RAK ICC (Ras Al Khaimah), or Ajman Offshore.
Key features:
- 100% foreign ownership.
- No local office requirement.
- Ideal for international operations and asset holding.
- Cannot do business within the UAE.
Note: Offshore companies cannot issue UAE residence visas.
🧾 Choosing the right structure: Let us help – Qualira Accounting Office in Dubai
Selecting the right type of company depends on your goals, budget, and long-term strategy. At Qualira Accounting, we help you not only manage your books but also navigate the business setup process with clarity.
Whether you’re launching a tech startup in a free zone or planning to trade across the Emirates, we’re here to guide you every step of the way.
👉 Contact us for a free consultation and let’s build your business the right way from day one.
Your Team
Qualira Accounting Office in Emirates
info@qualira.ae
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