In Dubai, there are three primary types of business registration, each catering to different business needs and structures:
Mainland Company Registration
- Ownership: Requires a local sponsor (UAE national) who holds 51% of the shares, except for certain professional licenses where 100% foreign ownership is allowed.
- Licenses: Businesses can obtain various licenses such as commercial, industrial, or professional, depending on their activities.
- Market Access: Mainland companies can operate anywhere in Dubai and engage directly with the local market.
Free Zone Company Registration
- Ownership: Allows 100% foreign ownership without the need for a local sponsor.
- Licenses: Companies in free zones typically receive specific licenses tailored to their activities, such as trading, services, or manufacturing.
- Market Limitations: While they can trade internationally and within the free zone, they may require a local distributor to sell in the mainland market.
Offshore Company Registration
- Ownership: Typically allows for full foreign ownership.
- Licenses: Primarily used for international business activities and asset protection; offshore companies cannot conduct business within the UAE market.
- Tax Benefits: Offers significant tax advantages and confidentiality for owners.
Summary of Key Differences
Each type of registration serves different business models and objectives, allowing entrepreneurs to choose the best fit based on their operational needs and market strategy.
