Choose the company type which suits your business needs the best!

UAE is a business haven & offers some of the best benefits to businesses. However, to make sure you can enjoy them all to the fullest, you need to make sure you choose the right type of company structure for your business.

Type of companies available in UAE:

1. Free zone company
2. Mainland company
3. Offshore company

How to choose the best company type in the UAE for your business?

Each type of company has specific requirements and offers you certain benefits. The wrong choice can result in loss of money or complications, for example, changing the company type, later on, is not possible, so to avoid any unnecessary hassles, it is imperative that you do due diligence before choosing the company type. Before you take this decision, you need to ask some important questions that can help you narrow down the most suitable options.

1. Which geographical area you will be doing business in; UAE, outside UAE, or both?
2. Would you need an office or physical space in the UAE?
3. Would you need to sponsor a visa for yourself, your family members, or any business employee?

These initial questions should help you eliminate one or two business types. For example, if you need to do business within the UAE or if you need a residence visa, then an offshore company is not an option for you. However, if you need to do business only outside the UAE, then offshore might be the best option for you.

Pro-tip: If you think in the future the answer to one of the above questions can change, then count it as a yes. For example, if you think you might need a visa in the future, then it is a yes!

When to choose the mainland?

• In case of need for full freedom to do business all across the UAE and/or outside of the UAE
• You want office space outside of the designated free zone areas
• Your business might require you to handle government contracts
• You will need multiple visa sponsorships. (The exact number will depend on your office size)
• You will be able to afford a minimum office space of 140sq ft.

(not an exhaustive list)

When to choose the free zone?

There are around 45 free zone areas in the UAE, each with its own rules, set up fees, and allowed business activities.

• You want complete ownership and don’t want to get a local sponsor
• You only need a virtual office space
• You will be ok with limited visa eligibility.
• You are fine with your business operating only in certain parts of the UAE like a store within a mall in a Freezone area

When to choose offshore?

The only case in which it makes sense to choose an offshore company is when you will not be doing any business in the UAE and all you need is company incorporation and a bank account.

Talk to us

If you need help or our consulting services to choose the right type of company or start the incorporation process, then get in touch with our consultants.