Dubai, as one of the prominent commercial hubs in the Middle East, offers three main types of companies for registration. Mainland Companies They enable you to operate throughout the UAE and Gulf countries and establish an office anywhere in Dubai. Free Zone Companies With 100% ownership and special tax benefits, they have restrictions on domestic activities. Ultimately, Offshore Companies They are only allowed to operate outside the UAE and cannot have a physical office within the country. Below, each of these types of companies will be explained in detail.
1- Mainland Companies
One of the types of companies that can be registered in Dubai for Iranians, Mainland Company or the same MainLand It is. These companies are located within the territory of the UAE and in each of Emirates (Dubai, Abu Dhabi, Sharjah, Ajman, Fujairah, Ras Al Khaimah, and Umm Al Quwain) can be established.
Each emirate in the UAE A unique judicial and economic system It is available. In Dubai, this sector is managed under the Dubai Economic Department (DED). Mainland companies have the possibility to operate in All over the UAE And also in Gulf Cooperation Council Countries have.
If a company is registered on the mainland, especially in Dubai, the entrepreneur will have the authority to purchase or rent an office anywhere in the city. This feature makes mainland companies an attractive option for those looking to expand their operations in the UAE and beyond.
Advantages of registering a company on the mainland
Some of the advantages of registering a company on Dubai's mainland include:
- The company registration process on the mainland is very fast; the main administrative procedure can be completed within a few hours, and the entire process is finished within 2 weeks.
- By registering a company on the mainland, you can also obtain the country's tax residency.
- Additionally, business owners and their employees can obtain a 2-year UAE residence visa.
- With mainland company registration, financing is made much easier thanks to the excellent services provided by banking institutions.
- Registering a company in Dubai's mainland, according to the UAE's new laws, grants 100% ownership of the company to individuals.
- The only drawback that can be mentioned for this type of company is undoubtedly the requirement for a local partner or sponsor for certain specific types of activities.
An overview of the scope of activities for mainland companies
According to available data, companies established on Dubai's mainland can operate in more than 2,000 different sectors. You can find the complete list of these sectors on the Dubai Department of Economic Development website (DED) View.
To select the main business activity of the company, you should pay attention to the following points:
- When registering a company in Dubai, only one of the 2000 available sectors can be chosen.
- Selecting multiple different sectors simultaneously is only possible if the mentioned sectors belong to the same industry and are related to each other.
Types of commercial licenses available for mainland companies
In general, for companies registered in mainland Dubai, 3 different commercial licenses can be obtained. You can see the description of these licenses in the table below:
| License type | Business activity |
|---|---|
| Professional License | Providing professional services such as specialized consulting, intellectual activities, artistic fields, and similar areas. |
| Commercial license | Activities including import and export in the UAE, real estate consulting, health and medical services, construction, and other related fields. |
| Industrial license | Manufacturing various products in different industrial sectors. |
Recommended reading: Company license renewal in Dubai
2- Companies located in free zones (Free Economic Zone)
Another main category for Company registration in DubaiCompany registration in Free Economic Zones These zones are specifically designed for Attracting foreign investment And provide very attractive conditions for investors.
Register with Company registration in Dubai free zonesInvestors can benefit from the advantage of 100% ownership of the company and share capital. In addition, companies registered in these zones enjoy Special benefits and privileges That are directly related to their field of activity and industry.
These special conditions enable companies operating in free zones to make the best use of the facilities and services provided for business growth and development. Dubai free zones Offer unique opportunities for entrepreneurs and investors, making them a popular choice for company registration.
Advantages of company registration in Dubai free zones
Among the advantages of registering a company in the UAE free zones, we can mention the following:
- Companies located in free zones can engage in various types of international commercial activities and can conduct economic operations both inside and outside these zones.
- Owners who register their companies in free zones can have full control over the management and decision-making affairs of their companies.
- Owners and employees of companies registered in free zones can obtain UAE residence visas.
- Companies registered in free zones are exempt from certain laws related to the import of raw materials into the UAE as well as export duties on finished products.
- Companies registered in free zones enjoy full ownership rights over their assets and properties, including rights related to real estate.
- A company in Dubai free zones becomes a tax resident in the UAE, thereby being exempt from the tax laws of the home country (provided the entrepreneur holds a Tax Residency Certificate (TRC)).
Disadvantages of registering a company in Dubai free zones
Just as registering a company in Dubai free zones can bring many advantages, naturally it also entails some disadvantages. The most important of these disadvantages include:
- Some free zones in the UAE are dedicated only to certain industries and specific business sectors. Therefore, entrepreneurs’ activities and company registration in these zones may face limitations.
- Companies registered in Dubai free zones can only rent office space within the same free zone or strictly within the UAE territory. However, this rule does not apply to some free zones.
- Companies registered in free zones cannot participate in government tenders.
Business activities of companies registered in UAE free zones
Each free zone in the UAE has its own separate list of permitted activities within that zone. In this section, we will look at the most popular free zones in the UAE and review the permitted activities in each. It is worth noting that Sharjah Airport Free Zone is the most popular free zone in Dubai, where almost any type of activity is allowed without restrictions.
- Dubai Multi Commodities Centre (DMCC): More than 600 types of commercial activities, ranging from energy, healthcare, education, and finance to others.
- Jebel Ali Free Zone (JAFZA): Activities such as import and export, warehousing and storage, transportation, parking, import of raw materials, and more.
- Sharjah Airport Free Zone (SAIF): Almost all commercial activities, including buying and selling, importing and exporting gold and jewelry.
- Ras Al Khaimah Free Zone (RAK FTZ): More than 50 types of commercial activities such as industrial operations, warehousing, banking, financial and economic institutions, and others.
- Dubai Knowledge Park (DKP): Development of educational technologies, recruitment, language training, arts, skill development, and talent identification for children.
Types of Business Licenses in the Emirates Free Zones
Generally, 3 types of business licenses are issued for activities in Dubai Free Zones. You can see their descriptions in the table below:
| License type | Business activity |
|---|---|
| Service License | Specifically for companies engaged in activities such as specialized consulting, tourism, information, technology, healthcare, educational services, advertising, and design. |
| Import and Export License | Specifically for companies involved in import and export, wholesale or retail of various goods. |
| Manufacturing and Production License | Specifically for companies that want to utilize the UAE's infrastructure facilities for manufacturing and production. |
3- Offshore Companies
Entrepreneurs who do not wish to conduct their commercial activities directly within the UAE territory can opt for Offshore Company Formation to use in Dubai.
These companies are UAE Free Zones registered and can obtain a legal address in the same area. Additionally, offshore companies will be able to fully benefit from the incentives and legal privileges that the UAE government has allocated for foreign companies.
Offshore Companies are only permitted to operate outside the territory of the UAE and are not allowed to establish a physical office within the country. However, they can use their legal representatives' offices in the UAE.
Advantages of Offshore Company Registration in Dubai and the UAE
As mentioned in the previous section, applicants can enjoy all the benefits of company registration in the UAE by registering an offshore company. Some of the most important advantages include:
- Entrepreneurs can open corporate bank accounts in Dubai and UAE banks.
- Profit repatriation to the parent company in the UAE will be done at preferential rates and tariffs.
- Through offshore company formation, real estate can be registered in the country.
- Entrepreneurs applying for offshore company registration in the UAE can become shareholders of the company or hold shares in other registered organizations in the UAE.
Disadvantages of Offshore Company Registration in Dubai and the UAE
Just as offshore company formation in Dubai and other UAE regions can have advantages, it undoubtedly comes with some disadvantages for applicants. Some of the most important drawbacks include:
- Business activities can only be conducted outside the UAE.
- Offshore company formation does not lead to obtaining tax residency status.
- By registering an offshore company in Dubai, the company owners or their employees cannot obtain UAE residency.
- Opening bank accounts for offshore companies in the UAE can be very challenging.
- Offshore companies cannot have a physical address or office within the UAE.
- The activities of these companies are very limited across various commercial sectors and fields.
Offshore Company Activity Sectors in Dubai and the UAE
In general, offshore companies registered in Dubai can operate in most commercial sectors. However, there are exceptions where companies are not permitted to operate. None:
- Insurance
- Banking Services
- Oil and Gas Industries
- Precious Metals
- Media
- Aviation
It is also worth noting that the best sectors for offshore companies to engage in business activities include the following:
- Holding activities
- Real estate ownership
- Other forms of asset management
Types of business licenses for offshore companies registered in Dubai
Since the activities of offshore companies registered in Dubai or other Emirates areas are actually conducted outside the territory of the country, these companies do not need to obtain a business license. The only required document for their operation is the certificate of incorporation.
Final words
If you have always wondered Which company should we register in Dubai and Types of companies in Dubai are, without a doubt, this article provides a worthy answer. By reading this article and reviewing the resources available to you, you can make the right decision about choosing Company type and registering it in Dubai. Dear readers, for specialized information and free consultation, you can contact the experts of our team.
