Why Dubai is the Global Business Hub
Dubai has emerged as one of the world’s most attractive destinations for entrepreneurs and investors. With its strategic location, business-friendly policies, zero personal income tax, and world-class infrastructure, the city offers unmatched opportunities for companies of all sizes. However, before starting your business in Dubai, it is crucial to decide the right company structure—whether Mainland, Free Zone, or Offshore. Each has distinct benefits, limitations, and compliance requirements.
Types of Company Formations in Dubai
This guide explains the three primary structures for setting up a business in Dubai—Mainland, Free Zone, and Offshore—and helps you choose the right one based on market access, taxation, ownership, visa eligibility, and office requirements.
Mainland Company
A Mainland company is registered under the Dubai Economy & Tourism (DET) and allows you to operate across the UAE without restrictions.
Key Features
- Can do business anywhere in the UAE and internationally
- Ability to trade directly with the local UAE market
- No restrictions on the number of visas (depending on office space)
- Subject to UAE Corporate Tax (9%) if profits exceed AED 375,000
Best For: Companies targeting the UAE domestic market, retail businesses, and firms wanting government contracts.
Free Zone Company
Free zones are special economic areas that provide businesses with a wide range of incentives. Dubai hosts over 30+ free zones such as DMCC, DIFC, and Dubai Internet City.
Key Features
- 100% foreign ownership
- Full repatriation of profits
- No import/export duties within the free zone
- Easy setup process with modern infrastructure
- Restricted from trading directly in the local UAE market without a distributor
Best For: International trading companies, consultancies, IT firms, financial services, and startups seeking fast setup.
Offshore Company
An offshore company is primarily used for international operations and asset protection. These companies are registered in jurisdictions like JAFZA Offshore or RAK ICC.
Key Features
- 100% foreign ownership
- No corporate tax or VAT in most cases
- Ideal for holding structures, international trading, and asset protection
- Cannot conduct business within the UAE domestic market
- No requirement for office space or employees
Best For: International investors, holding companies, and businesses seeking privacy and asset structuring.
Comparison Between Mainland, Free Zone, and Offshore Companies
1. Market Access
- Mainland Company: Can operate across the UAE and internationally without restrictions.
- Free Zone Company: Can operate within the free zone and internationally. To trade locally, a distributor is required.
- Offshore Company: Limited to international operations only and cannot trade within the UAE.
2. Ownership
- Mainland Company: 100% foreign ownership allowed (post-2021 reforms).
- Free Zone Company: 100% foreign ownership.
- Offshore Company: 100% foreign ownership.
3. Taxation
- Mainland Company: 9% corporate tax applicable if profits exceed AED 375,000.
- Free Zone Company: 0% corporate tax for most activities, but some are subject to 9% depending on the business nature.
- Offshore Company: 0% corporate tax in most cases.
4. Office Requirement
- Mainland Company: Office space is mandatory.
- Free Zone Company: Flexible options — from dedicated desks to full-fledged offices.
- Offshore Company: No office space is required.
5. Visa Eligibility
- Mainland Company: Eligible for unlimited visas (based on office size).
- Free Zone Company: Eligible for visas based on office package.
- Offshore Company: Not eligible for UAE residency visas.
Steps to Register Your Company in Dubai
- Choose the right structure (mainland, free zone, or offshore)
- Select business activities (aligned with DET or Free Zone list)
- Reserve a trade name
- Prepare incorporation documents
- Obtain approvals & license
- Lease office space (if required)
- Open a UAE corporate bank account
Which Structure is Right for You?
- If you want to sell directly in the UAE → Choose Mainland
- If you want 100% ownership, tax benefits, and global reach → Choose Free Zone
- If you want asset protection and international operations → Choose Offshore
How Triam Group Can Help
At Triam Group, we specialize in guiding entrepreneurs and corporates through every stage of company formation in Dubai. From structuring advice, licensing, compliance, to opening bank accounts—our team ensures a seamless setup tailored to your business needs.
Starting a business in the UAE? Our Company Formation Services make registration fast and compliant.
