Types Of Companies In Dubai- Mainland, FreeZone & Offshore Company

Introduction

Dubai has emerged as a global business hub, attracting foreign investors and entrepreneurs with its business-friendly regulations, tax incentives, and world-class infrastructure. Whether you’re a startup, a small business, or a multinational corporation, Dubai offers various types of legal entities to suit your business needs.

In this guide, we will explore the types of companies in Dubai and how to choose the right type of business there. 

Why Start a Business in Dubai?

Before diving into the different types of companies, let’s understand why Dubai is one of the best places to start a business:

• 100% foreign ownership in most business sectors.
• Zero personal and corporate taxes in free zones (subject to certain conditions).
• Strategic location bridging Asia, Europe, and Africa.
• Advanced infrastructure and business-friendly government policies.
• Access to global markets via world-class seaports and airports.

Dubai offers different legal structures that cater to both local and foreign investors. Let’s explore them in detail.

Numerous Types of Companies in Dubai

The types of business structure in Dubai is explained below:

1. Mainland Companies in Dubai

A Mainland company in Dubai is registered with the Dubai Economic Department (DED) and allows businesses to operate freely across the UAE and internationally.

Key Features:

• Can conduct business across the UAE without restrictions.
• Can take government contracts.
• Requires a physical office space.
• Subject to 9% corporate tax for businesses exceeding AED 375,000 profit (from June 2023).

Types of Mainland Companies in Dubai

a) Sole Proprietorship

• A business is owned and maintained by a single person, fully responsible for profits and liabilities.
• Best for freelancers, consultants, and professionals.
• 100% ownership for expatriates in professional services.
• Unlimited liability on personal assets.

b) Limited Liability Company (LLC)

• An LLC in Dubai is one of the most common types of legal structures in Dubai, suitable for small and medium enterprises (SMEs).
• Requires one to 50 shareholders.
• Offers limited liability to owners.
• Requires a local service agent in certain circumstances.
• May engage in a wide variety of commercial operations.

c) Civil Company

• A partnership between two or more professionals such as doctors, lawyers, and engineers.
• Suitable for service-oriented businesses.
• Foreign investors can own 100% of the shares but require a local service agent.

d) Private Shareholding Company

• A private shareholding company is a type of company in Dubai where shares are not publicly traded.
• Minimum capital of AED 2 million.
• Requires at least two shareholders.
• Best for businesses planning future expansion.

e) Public Shareholding Company (PJSC)

• A firm whose shares are publicly traded on the stock exchange.
• Minimum AED 30 million capital.
• At least 5 founders required.
• Highly regulated by UAE government authorities.

2. Free Zone Companies in Dubai

A Free Zone company in Dubai operates in designated zones offering tax benefits and ease of doing business.

Key Features:

• 100% foreign ownership.
• 0% corporate and personal income tax (for specific zones and conditions).
• No customs duties on imports/exports.
• Cannot trade directly in the UAE Mainland without a local distributor.

Types of Free Zone Companies in Dubai

a) Free Zone Establishment (FZE)

• A business with one shareholder.
• Ideal for sole investors.
• Limited liability protection.

b) Free Zone Company (FZC/FZCO)

• A company with two or more shareholders.
• Suitable for startups and SMEs.
• Allows multiple business activities.

c) Branch of a Foreign Company

• A foreign company can set up a branch in a free zone to conduct its business in Dubai.
• No additional share capital is required.
• Can undertake the same business activities as the parent company.

Popular Free Zones in Dubai:

• Dubai Multi Commodities Centre (DMCC) – Best for trading and commodities businesses.
• Dubai International Financial Centre (DIFC) – Ideal for financial services.
• Dubai Silicon Oasis (DSO) – Ideal for tech firms and IT companies.
• Jebel Ali Free Zone (JAFZA) – Best for manufacturing and logistics.

3. Offshore Companies in Dubai

An offshore company in Dubai is ideal for entrepreneurs looking for tax benefits and asset protection while operating outside the UAE.

Key Features:

• 100% foreign ownership.
• No corporate or income tax.
• No physical office is required.
• Cannot conduct business within the UAE.

Best Uses for Offshore Companies:

• Holding companies
• Asset protection
• International trading
• Wealth management
• Popular Offshore Jurisdictions in Dubai:
• JAFZA Offshore (Jebel Ali Free Zone Authority)
• RAK ICC (Ras Al Khaimah International Corporate Centre)

How to Choose the Right Type of Business in Dubai?

When selecting the right types of legal entity in Dubai, consider the following factors:

• Nature of business (trading, consulting, manufacturing, etc.).
• Ownership preference (100% foreign ownership or local partnership).
• Tax benefits and cost structures.
• Office space requirements.
• Need for local market access.

Conclusion

Dubai is more than just a booming economic powerhouse—it’s a gateway to global expansion. Whether you’re a solopreneur, a tech startup, or a multinational corporation, Dubai offers the right business structure, tax advantages, and world-class infrastructure to help you thrive.

Setting up a company in Dubai may seem overwhelming, but with the assistance of our experts, you can set up your business with ease. Our experts can help you with:

• Company registration (Mainland, Free Zone, Offshore)
• Business structuring & licensing
• Visa & compliance services
• Tax & corporate advisory
• Bank account opening assistance

Let us handle the complexities while you focus on growing your business! Get in touch with OnDemand International today.