Mainland (Onshore)

UAE mainland companies now benefit from up to 100% foreign ownership in most business sectors - under Federal Decree‑Law No. 26/2020 amending the Commercial Companies Law.
To operate, you must obtain a DED (Department of Economic Development) trade license and lease a physical office (typically 200 sq ft or more), which also determines visa allowances - generally one visa per 80 sq ft.
Costs include trade name reservation, initial and license renewal fees (the license fee is usually about 5% of annual office rent), plus rental expenses. Mainland companies enjoy full access to UAE markets - including government contracts and unlimited mainland operations. and sponsor visas up to their office capacity.

Free Zone

Free zones allow 100% foreign ownership, 0% corporate tax on qualifying income, 100% profit repatriation, and exemption from customs duties and VAT on inter-zone trade.

To receive the 0% tax benefit, companies must qualify as a “Qualifying Free Zone Person”, demonstrating:
• Adequate substance (staff, assets, expenses)
• Qualifying income from approved activities
• Transfer-pricing compliance and audited financials
• Non-qualifying revenue not exceeding AED 5 million or 5% of total revenue.

Office options are flexible - ranging from flexi-desks to full offices - letting you manage costs and visa allocation (typically 2–6 visas). Annual license fees vary by free zone and activity: AED 10,000–50,000 is common.

Offshore

Offshore entities (e.g. in JAFZA Offshore or RAK ICC) are intended for international business, asset holding, or intellectual property. They offer 100% ownership, no corporate tax, and no VAT, but cannot trade locally, lease UAE offices, or obtain UAE visas. Setup costs are minimal - usually agent and registration fees - making offshore the most cost-effective structure.

Choosing the Right Jurisdiction

• Mainland is ideal if you plan to serve local UAE customers, secure government contracts, or need unrestricted local trade and visas.
• Free zone is perfect for export businesses, online services, or company structures prioritizing tax efficiency and access to international markets.
• Offshore works best for international holding, asset ownership, or global trade without UAE presence.

Why Choose ACO Consulting?

At ACO, we offer end-to-end support - from advising on the ideal jurisdiction (mainland, free zone, offshore) to handling license applications, office sourcing, visa processing, and ensuring corporate tax compliance (including QFZP setup). We stay updated on licensing reforms and tax regulations to ensure your company is structured for operational success, regulatory compliance, and long‑term growth in the UAE.