The United Arab Emirates is one of the world's major business hubs and thus attracts entrepreneurs from all over the world.
If you are one of them, then you need to know about the main types of companies that you can open in the UAE.
There are several types of company registration in the UAE, each of which has its own characteristics and advantages. Let's look at the three main types of companies in the UAE: mainland, offshore, and free zone. Smart Value will help you register an organisation of any type.
1. Mainland
Mainland companies are the most common type of business to start in the UAE. Enterprises registered on the mainland have the right to operate in any region of the UAE as well as beyond.
To register companies operating in most spheres on the mainland, you must have a local sponsor who owns 51% or more of the share in the business. An office of at least 13 square metres is also required. The income tax rate is 9%.
This type is common among small and medium-sized enterprises that plan to operate in the local and international market.
2. Offshore
Offshore organisations are companies that are registered in special jurisdictions within the UAE.
The main advantages of registering an offshore company are the absence of income taxes, the absence of restrictions on the movement of capital, and the confidentiality of information about the owners of the company. In addition, there are no office requirements.
Offshore companies are in demand for organising international financial transactions and property management.
3. Free zone
Free zones are free economic zones in the UAE, where foreign companies are provided with benefits for business development.
Companies registered in a free zone have the right to be 100% foreign-owned, pay no taxes on income and alienation of assets, but do not have the right to operate in the country.
To sell your products or services to the UAE market, you will need a contract with a company in its mainland.
