How to Start a Business in Dubai: Freezone vs. Mainland vs. Offshore

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Introduction

Dubai is a global business hub offering three main business setup optionsFreezone, Mainland, and Offshore. Each has unique benefits, depending on your business goals, target market, and budget.

At DBM (Diligence Business Management), we help entrepreneurs and investors choose the best business structure in Dubai while handling licensing, visas, and compliance.

This guide compares Freezone, Mainland, and Offshore setups to help you make an informed decision.

 

1. Freezone Company Setup

✅ Best for: International businesses, startups, freelancers, and SMEs.

Key Features

✔ 100% foreign ownership (no local sponsor required).
✔ Tax exemptions (0% corporate tax for eligible businesses).
✔ Customized licenses (trading, services, e-commerce, etc.).
✔ Visa eligibility for investors & employees.

Popular Freezones in Dubai

  • AJMAN FREEZONE (Best for trading & commodities)

  • MEYDAN FREEZONE  (Ideal for finance & fintech)

  • SHAMS (Great for media & consulting)

  • RAKEZ (Affordable for SMEs & startups)

How DBM Can Help

🔹 Freezone selection based on your business activity.
🔹 Fast-track licensing & visa processing.
🔹 Flexible office solutions (virtual, flexi-desk, or physical).

 

2. Mainland Company Setup

✅ Best for: Businesses targeting the local UAE market (B2B & B2C).

Key Features

✔ No trade restrictions (can operate anywhere in UAE).
✔ Requires a local sponsor (51% Emirati ownership, unless in exempted sectors).
✔ Corporate tax applies (9% from June 2023 for profits over AED 375,000).

Common Mainland Business Types

  • LLC (Limited Liability Company) – Most popular for trading & services.

  • Sole Establishment – For individual entrepreneurs.

  • Branch of a Foreign Company – For global firms expanding to Dubai.

How DBM Can Help

🔹 Local sponsor partnerships (if required).
🔹 DED (Department of Economic Development) licensing.
🔹 VAT registration & tax compliance support.

 

3. Offshore Company Setup

✅ Best for: Asset protection, international trading, and holding companies.

Key Features

✔ Zero taxes (no corporate or income tax).
✔ No physical office required.
✔ Cannot trade within the UAE (only outside).

Popular Offshore Jurisdictions

  • Jebel Ali Offshore (JAFZA)

  • Ras Al Khaimah (RAK ICC)

How DBM Can Help

🔹 Fast offshore incorporation (3-5 days).
🔹 Bank account opening assistance.
🔹 Annual compliance & renewal support.

 

4. Freezone vs. Mainland vs. Offshore – Quick Comparison

 

Factor Freezone Mainland Offshore

Ownership 100% Foreign 51% Local* 100% Foreign Taxation 0% Corporate Tax* 9% (if applicable) 0% Tax Market Access UAE & Global Full UAE Market Outside UAE Only Office Requirement Flexible Options Physical Office None Required Visa Eligibility Yes Yes No

*Some mainland sectors allow 100% foreign ownership.
*Corporate tax exemptions may apply in freezones.

 

5. Which One is Right for You?

  • Choose Freezone if you want full ownership, tax benefits, and global operations.

  • Choose Mainland if you need direct access to the UAE market.

  • Choose Offshore for tax optimization and international business.

 

6. Why Choose DBM for Your Dubai Business Setup?

At Diligence Business Management (DBM), we offer:
✅ Expert guidance on the best business structure.
✅ Fast licensing & visa processing.
✅ Tax & compliance advisory.
✅ Ongoing PRO services (renewals, audits, banking support).

📞 Contact DBM today for a FREE consultation!

 

Final Thoughts

Dubai offers flexible business setup options, but choosing the right structure is crucial. Whether you need a Freezone, Mainland, or Offshore company, DBM ensures a smooth, hassle-free setup.

🚀 Ready to launch your Dubai business? Let DBM handle the paperwork while you focus on growth!

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