Mainland vs. Free Zone vs. Offshore Company

49% of the shares can be acquired by expacts. A local sponsor would be acquired the remaining of 51 percent

You can hold 100% of the company’s share. There is no need to create a local partner or a Service Agent.

You will own the business in full if located outside the UAE. No physical presence in the UAE

Every business in mainland is obliged to get at least 200 sq. ft. physical office.

No need for an office space. These businesses may operate without an office or have virtual offices

In the UAE you can’t have a physical office. You should do it outside the country

Free to operate anywhere in the UAE. They can also do business inside Freezone

A free zone company not permitted business outside Freezone.

They are free to do business outside Emirates. They are not allowed to do business in the UAE

At the end of each financial year, mainland companies must prepare audit

Not every FZ business needs to be audited. Exceptions are also applicable

The offshore company has no auditing mandate.

Depending on the office size / workplace size a resident visa is issued

Depending on the office size/workplace size a resident visa is issued.

No residency visas are issued to an offshore company

A business on the mainland is subject to minimum requirements for capital depending on its activity.

Depending on the emirate, a Free Zone company has a minimum capital requirement

There is no minimum capital requirement on an offshore company in the UAE.

The public can obtain the information of a mainland business on request

The public can obtain the information of a Freezone business on request

The names and identities of owners, directors and shareholders of offshore companies are not public

Need to take permission from authorities

Free Zones have their own laws for any organization within their jurisdiction to be licensed, and do not need authorities’ approval outside the free zone.

The authorities of the free zone of this competence shall ensure their approval