A mainland license, also referred to as an onshore license gives people the opportunity to run their business inside the UAE and internationally without any limitations. The Department of Economic Development (DED) is the regulatory authority for issuing these licenses in the UAE. According to UAE company law, a mainland company setup in UAE requires a local partner or a local service agent. The type of business you set up in the UAE will determine whether you need a local sponsor or a local service agent. A local sponsor will maintain 51% of the company shares, however rest assured that as the business owner, you can retain control of the business in exchange for a set annual fee. A local service agent, on the other hand, doesn’t maintain shareholding authority and instead acts as the company representative in all administrative dealings with government departments.
Free zone companies in UAE gives you 100% ownership and can enjoy 100 % tax free. The procedure and the cost for incorporating the free zone company depends on the free zone you choose and the type of the activity. A free zone company will be restricted to do direct business with the UAE local market. However, direct business with local market can be made through a distributer registered in the outside the free zone. There is no restriction for a free zone company to do business outside UAE and within the free zone. In Free zone companies can be registered as Establishment (single owner), Free Zone Company (maximum 5 shareholders) or Branch of your existing foreign company /Branch of a local company.
Setting up an offshore company means expanding your existing business overseas, and doing that can open up excellent business growth options for entrepreneurs. The major benefits of going offshore include tax exemptions, low capital investments and high level of confidentiality.
UAE is looked upon as a popular destination for offshore company formation, owing to its prominent location and rapid development. Offshore company formation in UAE has a lot to offer to the ambitious entrepreneurs to put them on a fast track to success. Being a “tax-free” business jurisdiction, offshore company formation in UAE is a worthwhile option for entrepreneurs across the world.
Offshore company formation in UAE allows 100% ownership and tax exemption for the shareholders. Confidentiality on shareholding structure, holding of assets and property on behalf of the company in UAE and abroad the UAE, the opening of multi currency Offshore bank account in Dubai making hike demand for UAE offshore company registration. Besides the traditional advantages of total tax /duty exemption, offshore companies established under the UAE regulations enjoy added benefits from U A E’s reputation for commercial transparency and it is strategic regional location.