Introduction

The United Arab Emirates (UAE) has firmly established itself as a global business hub, known for
its strategic location, investor-friendly policies, and diverse economy. Its business framework is
built on three primary structures: mainland companies, free zone companies, and offshore
companies. Each of these structures offers unique benefits, including varying levels of
ownership, taxation policies, and regulatory requirements, enabling businesses to choose the
model best suited to their objectives.
The UAE’s journey to becoming an economic powerhouse began in the 1970s, when the country
used its oil revenues to invest heavily in infrastructure and diversify its economy. This vision led
to the establishment of specialized economic zones, starting with the Jebel Ali Free Zone (JAFZA)
in 1985, which pioneered the free zone concept. These zones were created to attract foreign
investment by offering full ownership, tax advantages, and simplified business regulations.
Offshore structures were later introduced to support international trade and asset management,
further enhancing the UAE’s appeal as a global business destination.
Mainland companies, governed by UAE commercial laws, are ideal for businesses seeking to
operate in the local market. Free zone companies cater to export-driven businesses and provide
tax incentives and streamlined regulations, while offshore companies are designed for
international trade and financial planning, offering privacy and flexibility. Together, these
business structures have been instrumental in driving the UAE’s economic development and
attracting global entrepreneurs. This report will explore these structures in depth, focusing on
their features, benefits, and role in the UAE’s economic success.

Brief Overview of UAE Business Jurisdictions

Feature Mainland Free Zone Offshore

Business Operate in both UAE local Operate within the free Operate
Scope and international markets zone and international internationally; no
markets; limited access to access to UAE local
UAE local market market

Ownershi Requires a local 100% foreign ownership 100% foreign

p sponsor/agent for certain allowed ownership allowed
activities (51% local
ownership for some cases)

Market Direct access to UAE local Cannot trade directly in No direct access to
Access market and government UAE market; needs a local UAE market
contracts distributor

Physical Mandatory to have a Optional; co-working No physical office

Office physical office space spaces or virtual offices required
available

Residency Provides eligibility for Provides eligibility for No residency visas

Visas investor and employee investor and employee issued
visas visas

Tax Corporate tax may apply No corporate or personal No corporate or

 Benefits depending on activity income tax; import/export personal income tax
duty exemptions

Setup Higher due to office and Moderate, depending on Lower; primarily for
Costs regulatory requirements the free zone and license documentation and
type registration

Best For Businesses requiring Startups, SMEs, or Holding companies,

access to UAE’s local international businesses asset management,
market or government focused on trade, logistics, and international
projects or specialized sectors operations

Annual Compliance on Companies in UAE:

Annual compliance for Mainland Companies:
Mainland companies in the UAE must adhere to specific annual compliance requirements to
ensure legal operation under the UAE Commercial Companies Law (Federal Decree-Law No. 32 of
2021). Below is a detailed overview of these obligations:

1. Financial Reporting and Auditing

 Maintenance of Financial Records:
i. Companies must maintain accurate and up-to-date financial records for at least 5
years, as required by Article 26 of the Commercial Companies Law.
ii. Financial records should comply with International Financial Reporting Standards
(IFRS).
 Annual Financial Statements:
i. Companies are required to prepare annual financial statements, including a balance
sheet and profit and loss account.
 Mandatory Audit:
i. An independent registered auditor must audit the financial statements to ensure
accuracy and compliance.
ii. The audit report must be submitted to the relevant authorities upon request.

2. Corporate Governance
 Annual General Meeting (AGM):
i. Companies are required to hold an AGM within 4 months after the end of their
financial year.
ii. Key decisions made during the AGM include:
 Approval of financial statements.
 Appointment or reappointment of auditors.
  Approval of profit distribution or reinvestment plans.
 Appointment of an Auditor:
i. An auditor must be appointed by the shareholders during the AGM, as stipulated
under Article 27.

3. License Renewal
 All mainland companies must renew their trade license annually through the relevant
Department of Economic Development (DED).
 Renewal involves:
i. Submission of required documents, including the tenancy contract (Ejari) and
audited financial reports.
ii. Payment of applicable renewal fees.
iii. Ensuring compliance with all regulatory requirements.

4. Economic Substance Regulations (ESR)

 Companies performing relevant activities (e.g., holding companies, service centers,
distribution businesses) must file:
i. ESR Notification annually, even if the company is not conducting any reportable
activities.
ii. ESR Report if the company meets the substance requirements.
 Non-compliance with ESR may lead to penalties ranging from AED 20,000 to AED 50,000.

5. Anti-Money Laundering (AML) Compliance

 Businesses operating in high-risk sectors (e.g., financial services, real estate, gold trading)
must comply with Federal Decree-Law No. 20 of 2018 on Anti-Money Laundering (AML).
 Key requirements include:
i. Keeping accurate and up-to-date customer records.
ii. Filing Suspicious Transaction Reports (STR) with the UAE Financial Intelligence Unit,
if applicable.

6. Corporate Tax Compliance

 From June 2023, companies with taxable income exceeding AED 375,000 must register for
and file annual corporate tax returns as per the UAE Corporate Tax Law (Federal Decree-
Law No. 47 of 2022).
 Taxable entities must submit their returns within 9 months of the end of their financial
year.
7. Ultimate Beneficial Owner (UBO) Declaration
 Mainland companies must maintain and regularly update their UBO records in compliance
with Cabinet Decision No. 58 of 2020.
 Companies are required to submit UBO details to the relevant authorities annually or
whenever there are changes in ownership.

8. VAT Compliance (if applicable)

 Companies registered for Value Added Tax (VAT) must:
i. File VAT returns on a quarterly or monthly basis (depending on turnover).
ii. Maintain VAT-compliant invoices and records for 5 years.
iii. Ensure timely payment of VAT dues to avoid penalties.

Penalties for Non-Compliance

Failure to meet the above compliance requirements can result in:
 Monetary fines ranging from AED 2,000 to AED 50,000, depending on the violation.
 Suspension or cancellation of trade licenses.
 Legal liabilities for directors and shareholders.

Annual Compliance Requirements for Freezone Companies in the UAE

Freezone companies in the UAE must adhere to specific annual compliance requirements as
stipulated by the relevant freezone authorities and UAE laws. Below is a detailed overview of
these obligations:

1. Financial Reporting and Auditing

 Maintenance of Financial Records:
i. Companies must maintain accurate and up-to-date financial records for at least 5 years,
in line with freezone regulations and the UAE Commercial Companies Law.
ii. Financial records should comply with International Financial Reporting Standards (IFRS).
 Annual Financial Statements:
i. Companies are required to prepare annual financial statements, including a balance
sheet and profit and loss account.
 Mandatory Audit:
i. Audited financial statements may be required depending on the specific freezone
regulations (e.g., DMCC, JAFZA).
ii. An independent registered auditor must audit the financial statements, and the audit
report must be submitted to the freezone authority where applicable.

2. Corporate Governance
  Annual General Meeting (AGM):
i. While AGMs are not always mandatory in freezones, freezone-specific rules (e.g., DMCC
Company Regulations) may require certain governance measures.
ii. AGMs are used for decisions such as approving financial statements and appointing
auditors.
 Appointment of an Auditor:
i. Companies requiring audited financials must appoint an auditor, typically approved by
the freezone authority.

3. License Renewal
 Annual Trade License Renewal:
i. Companies must renew their trade licenses annually through the relevant freezone
authority.
ii. Renewal requires submitting updated documents such as lease agreements (if
applicable), trade licenses, and financial reports.
iii. Companies must pay renewal fees and meet any compliance requirements specific to
the freezone.

4. Economic Substance Regulations (ESR)

 Filing Requirements:
i. Companies engaged in relevant activities (e.g., holding companies, distribution
businesses) must submit an ESR Notification annually, even if not conducting reportable
activities.
ii. Companies conducting relevant activities must file an ESR Report to demonstrate
compliance with substance requirements (e.g., physical presence, employees, and
expenditure).
 Penalties for Non-Compliance:
i. Non-compliance may lead to penalties ranging from AED 20,000 to AED 50,000.

5. Anti-Money Laundering (AML) Compliance

 Key Compliance Requirements:
i. Companies operating in high-risk sectors must maintain accurate customer records.
ii. Companies must file Suspicious Transaction Reports (STR) with the UAE Financial
Intelligence Unit if any suspicious activity is identified.
iii. Freezones such as DMCC and ADGM impose additional AML compliance obligations
based on business activities.

6. Corporate Tax Compliance

 Tax Registration and Filing:
i. Freezone companies with qualifying income must register for corporate tax and file an
annual tax return.
ii. Companies eligible for the 0% tax rate (e.g., entities meeting freezone qualifying
income criteria) must still submit corporate tax returns.
iii. Returns must be filed within 9 months after the end of the financial year.
7. Ultimate Beneficial Owner (UBO) Declaration
 UBO Filing Requirements:
i. Companies must maintain and regularly update their UBO records.
ii. UBO details must be submitted to the freezone authority annually or whenever there are
changes in ownership or structure.

8. VAT Compliance (if applicable)

 VAT Filing and Maintenance:
i. Companies registered for VAT must file returns quarterly or monthly, depending on
turnover.
ii. Maintain VAT-compliant invoices and records for at least 5 years.
iii. Ensure timely payment of VAT dues to avoid penalties.

Penalties for Non-Compliance

Failure to meet the above compliance requirements can result in:
 Monetary fines ranging from AED 2,000 to AED 50,000, depending on the violation.
 Suspension or cancellation of trade licenses.
 Legal liabilities for directors and shareholders.

Annual Compliance Requirements for Offshore Companies in the UAE

Offshore companies in the UAE must adhere to specific annual compliance requirements as
stipulated by the relevant offshore jurisdiction (e.g., JAFZA Offshore, RAK ICC, Ajman Offshore).
Below is a detailed overview of these obligations:

1. Financial Reporting and Auditing

 Maintenance of Financial Records:
i. Offshore companies must maintain accurate and up-to-date financial records.
ii. Financial records should comply with International Financial Reporting Standards (IFRS),
if required by the offshore jurisdiction.
 Annual Financial Statements:
i. Offshore companies are generally not required to prepare and file annual financial
statements unless mandated by specific offshore jurisdiction rules.
 Mandatory Audit:
i. Audited financial statements may not be required unless the company conducts business
within the UAE or as per the rules of the offshore jurisdiction.

2. Corporate Governance
  Board Meetings:
i. Offshore companies are generally required to hold at least one board meeting annually,
as per the offshore jurisdiction's regulations.
ii. Meetings can often be conducted virtually or at the offshore registered agent's office.
 Appointment of an Auditor:
i. If required, an auditor must be appointed to review the company's financial activities.

3. License Renewal
 Annual Renewal of Registration:
i. Offshore companies must renew their registration annually through the offshore
jurisdiction's authority (e.g., RAK ICC or JAFZA).
ii. Renewal involves submitting updated company documents, including shareholder and
director details, and paying the applicable renewal fees.

4. Economic Substance Regulations (ESR)

 Filing Requirements:
i. Offshore companies conducting relevant activities (e.g., holding companies, service
centers) must file an ESR Notification annually.
ii. Companies meeting substance requirements must file an ESR Report to demonstrate
compliance.
 Penalties for Non-Compliance:
i. Non-compliance may result in penalties ranging from AED 20,000 to AED 50,000.

5. Anti-Money Laundering (AML) Compliance

 Key Compliance Requirements:
i. Offshore companies operating in high-risk sectors must maintain accurate customer
records and comply with AML obligations.
ii. Filing Suspicious Transaction Reports (STR) is required if any suspicious activities are
identified.
iii. Compliance is typically monitored by the offshore jurisdiction authority or registered
agent.

6. Corporate Tax Compliance

 Tax Registration and Filing:
i. Offshore companies are generally not subject to UAE corporate tax unless they conduct
business within the UAE.
ii. If applicable, offshore companies must register and file corporate tax returns as per UAE
Corporate Tax Law.

7. Ultimate Beneficial Owner (UBO) Declaration

 UBO Filing Requirements:
i. Offshore companies must maintain a UBO register and provide details to the offshore
 authority or registered agent.
ii. Any changes in UBO information must be reported promptly.

8. VAT Compliance (if applicable)

 VAT Filing and Maintenance:
i. Offshore companies are generally not required to register for VAT unless they conduct
taxable activities within the UAE.
ii. If registered, companies must file VAT returns and maintain VAT-compliant invoices for 5
years.

Penalties for Non-Compliance

Failure to meet the above compliance requirements can result in:
 Monetary fines ranging from AED 2,000 to AED 50,000, depending on the violation.
 Suspension or cancellation of offshore company registration.
 Legal liabilities for directors and shareholders.

VAT Registration:
1. Mainland Companies
 Mandatory VAT Registration:
Mainland companies must register for VAT if their taxable supplies and imports exceed
AED 375,000 annually. This includes both goods and services.
 Voluntary VAT Registration:
Businesses can voluntarily register if taxable supplies or expenses exceed AED 187,500
annually.
 Compliance:
Mainland companies must charge VAT on supplies and are eligible to claim input VAT on
expenses.

2. Free Zone Companies

Designated zones and non-designated zones in the UAE differ in their VAT treatment. Designated
zones are treated as being outside the UAE for VAT purposes for specific transactions involving
goods, provided certain conditions are met. Supplies of goods within or between designated
zones are VAT-exempt, while services within these zones are subject to VAT at the standard rate.
 Designation of Free Zones:
Free Zones in the UAE are categorized into:
i. Designated Free Zones (Exempt): These zones are considered outside the UAE for
VAT purposes for specific transactions like goods transferred outside the UAE. No
VAT applies under these specific conditions.
 ii. Non-Designated Free Zones (Taxable): Companies in these zones are treated
similarly to mainland companies.
 Mandatory VAT Registration:
Companies in both designated and non-designated free zones must register if they exceed
the AED 375,000 threshold.
 Voluntary VAT Registration:
Available for companies exceeding the AED 187,500 threshold.
 Special Rules:
i. VAT applies on goods and services supplied to the mainland.
ii. Movements of goods within designated free zones may be VAT-exempt under certain
conditions.

3. Offshore Companies
 No Physical Operations in the UAE:
Offshore companies generally do not operate physically in the UAE. Thus, they often fall
outside the scope of VAT.
 Mandatory Registration:
Offshore companies making taxable supplies in the UAE must register for VAT, regardless
of thresholds. This applies to non-resident businesses conducting taxable activities.
 Voluntary Registration:
If they meet the voluntary registration threshold of AED 187,500, they may register.
 Compliance Notes:
Offshore companies not making taxable supplies within the UAE are usually not required to
register for VAT.

Types of companies and Business Registrations in UAE

Mainland Companies:
Dubai Mainland
Dubai Mainland companies are licensed by the Dubai Department of Economic Development
(DED). They are permitted to operate within Dubai and across the UAE without restrictions. These
companies can engage in a wide range of business activities and have the flexibility to trade
directly with the local market. Recent regulatory changes allow for 100% foreign ownership in
many sectors, enhancing their appeal to international investors.

Abu Dhabi Mainland

Abu Dhabi Mainland companies are regulated by the Abu Dhabi Department of Economic
Development (ADDED). They enjoy the freedom to operate across the UAE market and can
participate in government tenders. The emirate offers various incentives to attract foreign
investment, including the possibility of full foreign ownership in specific industries.
Sharjah Mainland
Sharjah Mainland companies are governed by the Sharjah Economic Development Department
(SEDD). They benefit from access to both local and international markets, with the added
advantage of lower operational costs compared to other emirates. Sharjah's strategic location
between Dubai and the Northern Emirates makes it a favorable choice for businesses targeting
diverse markets.
Ajman Mainland
Ajman Mainland companies operate under the jurisdiction of the Ajman Department of Economic
Development (Ajman DED). They offer cost-effective business setup solutions and the flexibility
to operate throughout the UAE. Ajman's proximity to major ports and its investor-friendly policies
make it an attractive destination for various business activities.

Free Zone Companies:

Dubai Free Zones
Dubai hosts numerous free zones, each catering to specific industries. These zones offer benefits
such as 100% foreign ownership, tax exemptions, and full repatriation of profits. Notable free
zones include Jebel Ali Free Zone (JAFZA), Dubai Multi Commodities Centre (DMCC), and Dubai
Silicon Oasis (DSO). Companies established in these zones are generally restricted to operating
within the free zone or internationally, with limitations on direct trade within the UAE market.
Below is given a comparison of some of Dubai's most prominent Free zones: Jebel Ali Free Zone
(JAFZA), Dubai Multi Commodities Centre (DMCC), Dubai Silicon Oasis (DSO), and Dubai South.
Each offers unique benefits depending on the business activities, target market, and operational
requirements.

Feature JAFZA DMCC DSO Dubai South

Focus Logistics, Commodities, Tech, IT, Aviation,

Industries manufacturing, trade, finance, innovation logistics, e-
trading tech commerce

Location Jebel Ali Port Central Dubai (JLT) Dubai-Al Ain Al Maktoum
Advantage Road Airport & Expo
2020

Licensing High Medium-High Affordable Affordable

Costs

Office Warehousing, office, Premium offices in Affordable Flexi-desk to

Solutions industrial units JLT office/R&D large offices
spaces

Ease of Streamlined but Simplified for Simplified for Very startup-

Setup costlier traders tech firms friendly

Tax Benefits 100% tax exemption 100% tax 100% tax 100% tax
exemption exemption exemption

Best For Large-scale trading, Commodities, Tech startups E-commerce,

logistics financial services logistics
Costs relating to License Packages:
1. International Free Zone Authority (IFZA)
License Types:
 Professional License: For service-oriented businesses.
 Commercial License: For trading activities.
 Industrial License: For manufacturing and production.
Packages and Visa Quotas:
 Zero Visa Package:
i. Cost: Starting from AED 12,900.
ii. Visa Quota: 0 visas.
 1 Visa Package:
i. Cost: Starting from AED 21,130.
ii. Visa Quota: 1 visa.
 2 Visa Package:
i. Cost: Starting from AED 27,760.
ii. Visa Quota: 2 visas.
 3 Visa Package:
i. Cost: Starting from AED 34,390.
ii. Visa Quota: 3 visas.

2. Dubai Multi Commodities Centre (DMCC)

License Types:
 Trading License: For trading activities.
 Service License: For service providers.
 Industrial License: For manufacturing.
Visa Quotas:
 Visa quotas in DMCC are generally determined by the size of the office space:
i. Flexi Desk: Eligible for up to 3 visas.
ii. Serviced Office: Eligible for up to 5 visas.
iii. Physical Office: Visa quota increases with office size.
3. Dubai Silicon Oasis (DSO)
License Types:
 Service License: For service-based businesses.
 Trade License: For trading activities.
 Industrial License: For manufacturing.
Packages and Visa Quotas:
 Flexi Desk Package:
i. Cost: Starting from AED 18,000.
ii. Visa Quota: Up to 2 visas.
 Small Office Package:
i. Cost: Starting from AED 25,000.
ii. Visa Quota: Up to 4 visas.
 Medium Office Package:
i. Cost: Starting from AED 50,000.
ii. Visa Quota: Up to 8 visas.
Sources:
 Aurion Business Consultants
 Silver Oak Business Setup Services
 Amer Quick Plus

Abu Dhabi Free Zones

Abu Dhabi's free zones, such as Abu Dhabi Global Market (ADGM) and Khalifa Industrial Zone Abu
Dhabi (KIZAD), provide strategic advantages for businesses, including world-class infrastructure
and tax incentives. These zones are designed to attract industries like finance, logistics, and
manufacturing, offering streamlined processes for business setup and operations.
Khalifa Industrial Zone Abu Dhabi (KIZAD), Abu Dhabi Global Market (ADGM), Masdar City Free
Zone, and other free zones in Abu Dhabi are designed to cater to specific industries and business
activities. Here's an overview of their key differences:
1. Khalifa Economic Zones Abu Dhabi (KEZAD)
License Types:
 Trading License: For import, export, and trading activities.
 Service License: For service-oriented businesses.
 Industrial License: For manufacturing and production.
Packages and Visa Quotas:
 Work Station Package:
i. Cost: Starting from AED 11,000.
 ii. Visa Quota: 1 visa.
iii. Details: Includes a dedicated workstation within the free zone premises.

2. Khalifa Industrial Zone Abu Dhabi (KIZAD)

License Types:
 Trading License: For trading activities.
 Service License: For service providers.
 Industrial License: For manufacturing.
Packages and Visa Quotas:
 Zero-Visa Package:
i. Cost: Varies based on business activity.
ii. Visa Quota: 0 visas.
iii. Details: Suitable for businesses not requiring physical presence.
 Visa-Eligible Packages:
i. Cost: Varies based on the number of visas and office space.
ii. Visa Quota: Determined by office size; typically, 1 visa per 9 sq. meters.
iii. Details: Includes options for physical office spaces with corresponding visa quotas.

3. Masdar City Free Zone

License Types:
 Business License: Covers various activities including renewable energy, clean technology,
and more.
Packages and Visa Quotas:
 Flexi-Desk Package:
i. Cost: Varies based on business activity.
ii. Visa Quota: Up to 2 visas.
iii. Details: Provides access to shared desk space within the free zone.
 Private Office Package:
i. Cost: Varies based on office size.
ii. Visa Quota: Determined by office size; typically, 1 visa per 9 sq. meters.
iii. Details: Offers dedicated private office spaces with corresponding visa quotas.
Sources:
  Aurion Business Consultants
 Dubai Business Advisors
 Masdar City Free Zone Official Website

Sharjah Free Zones

Sharjah offers free zones like Sharjah Airport International Free Zone (SAIF Zone) and Hamriyah
Free Zone, known for their cost-effective setup processes and strategic locations. These zones
cater to a variety of industries, providing benefits such as 100% foreign ownership, tax
exemptions, and access to regional markets.
Below is given a comparison of some of Sharjah's most prominent Free zones:

Feature Sharjah Airport Sharjah Media City Sharjah Publishing City

International Free (SHAMS) (SPC)
Zone (SAIF)

Focus Manufacturing, trade, Media, entertainment, Publishing, printing, and

Industries logistics, aviation, and creative industries, distribution-related
services digital content businesses

Location Adjacent to Sharjah Central Sharjah, with Strategically located near

Advantage International Airport, access to nearby Sharjah International
ideal for trade and air business hubs Airport for global
freight distribution

Licensing Moderate to high; tailored Competitive, especially Moderate; focused on

Costs to industrial and logistics for freelancers and publishing and related
needs startups industries

Office Warehouses, industrial Flexible office spaces, Customizable offices, co-

Solutions plots, and office spaces co-working areas, and working spaces, and
virtual offices warehousing for
publishing needs

Ease of Streamlined but with Simplified and fast Easy and straightforward
Setup industry-specific setup, especially for for publishing-related
requirements freelancers businesses

Tax 100% foreign ownership, 100% foreign 100% foreign ownership,

Benefits no corporate or personal ownership, no corporate no corporate or personal
income tax or personal income tax income tax

Best For Trade and logistics Creative professionals, Publishers, book

companies, aviation- media startups, content distributors, and printing
related businesses, and creators, and businesses
manufacturers freelancers

Costs relating to License Packages:

1. Trading License
Purpose: For businesses engaged in import, export, distribution, or general trading of goods.
Relevant Packages:
 Sharjah Media City (SHAMS):
i. Cost: AED 8,050 (0 visa), up to AED 59,210 (6 visas).
ii. Visa Quota: 0-6 visas.
 Sharjah Airport International Free Zone (SAIF):
i. Cost: Starting from AED 10,800.
ii. Visa Quota: 3 visas for a standard package with flexi-desk.
 Sharjah Publishing City (SPC Free Zone):
i. Cost: Starting from AED 6,875.
ii. Visa Quota: Up to 20 visas under one license.

2. Service/Professional License
Purpose: For businesses offering services like consultancy, IT, marketing, or other non-trading
activities.
Relevant Packages:
 Sharjah Media City (SHAMS):
i. Cost: AED 7,325 (freelance package with 0 visa).
ii. Visa Quota: 0-6 visas for higher-tier service packages.
 Sharjah Airport International Free Zone (SAIF):
i. Cost: Packages start from AED 10,800.
ii. Visa Quota: 2-3 visas for flexi-desk setups.

3. E-Commerce License
Purpose: For businesses operating in online trading and digital commerce.
Relevant Packages:
 Sharjah Media City (SHAMS):
i. Cost: Starting from AED 8,050.
ii. Visa Quota: 0-6 visas based on the package.
 Sharjah Publishing City (SPC Free Zone):
i. Cost: Starting from AED 6,875.
ii. Visa Quota: Up to 20 visas for high-tier options.
4. Freelance License
Purpose: For individuals offering professional services or creative work.
Relevant Packages:
 Sharjah Media City (SHAMS):
i. Cost: AED 7,325 (0 visa package).
ii. Visa Quota: 0-1 visa.
 Sharjah Airport International Free Zone (SAIF):
i. Cost: Affordable packages, but primarily offered as part of co-working setups.
ii. Visa Quota: 1 visa.

5. Industrial License
Purpose: For manufacturing, production, or assembly activities.
Relevant Packages:
 Sharjah Airport International Free Zone (SAIF):
i. Cost: Starting from AED 18,000 for small facilities.
ii. Visa Quota: 5+ visas depending on the size of leased industrial space.
 Sharjah Publishing City (SPC Free Zone):
i. Cost: Custom pricing based on facility requirements.
ii. Visa Quota: Up to 20 visas.

6. General Trading License

Purpose: For businesses dealing in multiple unrelated product categories.
Relevant Packages:
 Sharjah Media City (SHAMS):
i. Cost: Starting from AED 15,000.
ii. Visa Quota: 0-6 visas depending on the package tier.
 Sharjah Airport International Free Zone (SAIF):
i. Cost: Starting from AED 20,000 for multi-activity licenses.
ii. Visa Quota: Up to 7 visas with office upgrades.

Sources:
  Sharjah Media City (SHAMS) Official Website
 Aurion Business Consultants
 Emirabiz Business Setup Consultants
 Jumeira Consultants
 Masaar Business Solutions

Ras Al Khaimah Free Zones

Ras Al Khaimah Economic Zone (RAKEZ) is a prominent free zone in this emirate, offering
customizable solutions for businesses across various sectors. RAKEZ provides benefits like 100%
foreign ownership, tax exemptions, and a strategic location with access to international markets.
Below is given a comparison of some of Ras Al Khaimah's most prominent Free zones:

Feature Ras Al Khaimah Economic Zone RAK Maritime City

(RAKEZ)

Focus Wide range: industrial, trading, services, Maritime-related industries,

Industries education, media, healthcare, and more shipbuilding, logistics, cargo
handling, and marine services

Location Central location in Ras Al Khaimah with Located near Saqr Port, providing
Advantage proximity to major highways and ports direct access to shipping and
marine trade routes

Licensing Competitive pricing for various license Moderate to high, tailored for
Costs types, including freelancer, industrial, maritime businesses and logistics
and commercial activities

Office Flexible options: warehouses, industrial Warehousing, docking facilities, and

Solutions plots, customized offices, and co-working customizable plots for maritime and
spaces logistics businesses

Ease of Simplified setup with a wide variety of Industry-specific setup

Setup license packages for startups and SMEs requirements, focused on maritime
activities

Tax Benefits 100% foreign ownership, no corporate or Same tax benefits as RAKEZ, with
personal income tax, and no customs additional advantages for shipping-
duties on imports/exports related activities

Best For Startups, SMEs, and large companies Maritime service providers, shipping
across multiple sectors companies, logistics firms, and
shipbuilding enterprises

Costs relating to License Packages:

Ras Al Khaimah Economic Zone (RAKEZ) offers a variety of license types and packages tailored to
diverse business needs. Below is an overview of the available license types, their associated
packages, and visa quotas:
1. BizStarter Package
  Visa Quota: 0 visas
 Cost: AED 5,499 per year
 Details: Suitable for startups and entrepreneurs seeking a cost-effective entry with shared
workstation access.

2. Two Visa Package

 Visa Quota: 2 visas
 Cost: AED 20,000 per year
 Details: Designed for small businesses requiring up to two visas with shared workstation
access.
3. Networking Package
 Visa Quota: 0 visas
 Cost: AED 11,400 per year
 Details: Ideal for professionals seeking networking opportunities without the need for
visas.
4. Entrepreneur Package
 Visa Quota: 1 visa
 Cost: AED 13,900 per year
 Details: Tailored for individual entrepreneurs requiring a single visa and access to shared
workspaces.
5. Partner Package
 Visa Quota: 2 visas
 Cost: AED 17,500 per year
 Details: Suitable for partnerships needing up to two visas and shared workstation facilities.
6. Enterprise Package
 Visa Quota: 4 visas
 Cost: AED 19,000 per year
 Details: Designed for larger enterprises requiring up to four visas with access to shared
workspaces.

Source:
Reflechir Corporate Services

Ajman Free Zone

Ajman Free Zone (AFZ) is known for its affordable setup costs and proximity to Ajman Port. It
supports a wide range of business activities, offering benefits such as 100% foreign ownership,
tax exemptions, and full repatriation of profits. AFZ is particularly attractive to SMEs and startups
seeking cost-effective solutions.
Costs relating to License Packages:
1. Freelance License Packages
Visa Quota: 0–1 visa
 Freelance Package (No Visa): AED 9,950
 Freelance Package (1 Visa): AED 19,390

2. Pioneer License Packages

Visa Quota: 0–1 visa
 Pioneer Package (No Visa): AED 8,950
 Pioneer Package (1 Visa): AED 18,390

3. Trading License Packages

Visa Quota: 0–2 visas
 Trading License (1 Activity, No Visa): AED 19,835
 Trading License (1 Activity, 1 Visa): AED 29,109
 Trading License (1 Activity, 2 Visas): AED 33,683

4. Service License Packages

Visa Quota: 0–2 visas
 Service License + Flexi Desk (No Visa): AED 22,435
 Service License + Flexi Desk (1 Visa): AED 31,709
 Service License + Flexi Desk (2 Visas): AED 36,283

5. General Trading License Packages

Visa Quota: 0–2 visas
 General Trading + Flexi Desk (No Visa): AED 25,035
 General Trading + Flexi Desk (1 Visa): AED 34,309
 General Trading + Flexi Desk (2 Visas): AED 38,883

6. E-commerce License Packages

Visa Quota: 0–2 visas
 E-Commerce (No Visa): AED 25,935
 E-Commerce (1 Visa): AED 35,709
 E-Commerce (2 Visas): AED 39,783
Additional Costs for Visa Processing
Visa Application Fee:
 Approx. AED 3,500–AED 4,000 per visa (one-time).
Medical Examination and Emirates ID Fees:
 Medical Examination: AED 500–AED 1,000 (depending on test type).
 Emirates ID Fee: AED 370–AED 750 (based on validity of 1–3 years).
Establishment Card Fee:
 Approx. AED 1,000–AED 2,000 (one-time).
Visa Stamping Fee:
 Approx. AED 500–AED 800 per visa.
Health Insurance:
 Approx. AED 700–AED 2,000 per year (mandatory for all visa holders).
Source:
Emirabiz Business Setup Consultants

Fujairah Free Zone

Fujairah Free Zone offers unique advantages due to its location adjacent to the Port of Fujairah. It
provides investment incentives like 100% foreign ownership, tax exemptions, and full
repatriation of profits, attracting businesses in sectors such as logistics, trading, and
manufacturing.
Below is given a comparison of some of Dubai's most prominent Free zones:

Feature Fujairah Free Zone Authority (FFZA) Creative City Fujairah

Focus Trading, manufacturing, logistics, oil & Media, creative industries,

Industries gas, industrial services entertainment, and freelancers

Location Adjacent to Fujairah Port and close to Strategically located in Fujairah

Advantage the airport, making it ideal for trade and with access to UAE's creative talent
logistics pool

Licensing Moderate; tailored for industrial and Affordable, especially for

Costs trading activities freelancers and startups in media

Office Warehouses, industrial plots, Co-working spaces, shared offices,

Solutions customizable office spaces virtual office packages

Ease of Straightforward; industry-specific Streamlined and fast setup,

 Setup requirements may apply particularly for media and
freelancers

Tax Benefits 100% foreign ownership, no corporate or Same tax benefits as FFZA,
personal income tax, no customs duties designed to attract creative and
media businesses

Best For Industrial companies, trading firms, Media professionals, content

logistics providers creators, freelancers, and creative
agencies

Costs relating to License Packages:

1. Commercial License
 Commercial FZE (Single-Owner, No Visa):
o Cost: AED 14,000 (new license); AED 13,000 (renewal)

o Visa Quota: 0 visas

o Details: Designed for individual owners without visa requirements.

 Commercial FZ LLC (Multi-Owner, No Visa):

o Cost: AED 17,000 (new license); AED 16,000 (renewal)

o Visa Quota: 0 visas

o Details: Suitable for multiple owners without visa needs.

2. Commercial Plus One (C+1) License

 Commercial Plus One FZE (Single-Owner, 2 Visas):
o Cost: AED 20,000 (new license); AED 17,500 (renewal)

o Visa Quota: 2 visas

o Details: Ideal for single owners requiring up to 2 visas.

3. Freelance Company License

 Freelance Company (4 Visas):
o Cost: AED 25,000 (new license); AED 21,000 (renewal)

o Visa Quota: 4 visas

o Details: Suitable for startups and freelancers needing up to 4 visas.

4. Baby Business Package

 Baby Business (6 Visas):
o Cost: AED 28,000 (new license); AED 24,000 (renewal)

o Visa Quota: 6 visas

o Details: Designed for small businesses with minimal overhead costs.

5. Genius Package
  Genius Package (15 Visas):
o Cost: AED 35,000 (new license); AED 31,000 (renewal)

o Visa Quota: 15 visas

o Details: Tailored for large companies with significant staffing requirements.

SOURCE : AURION BUSINESS CONSULTANTS

Offshore Companies:
Ajman Offshore
Ajman Offshore is a popular jurisdiction for businesses seeking quick and cost-effective setup. It
offers benefits such as no corporate taxes, 100% foreign ownership, and confidentiality of
shareholders' information. However, offshore companies are restricted from conducting business
within the UAE and are primarily used for international operations, holding assets, or as special
purpose vehicles.

Dubai Offshore (JAFZA Offshore)

Dubai's Jebel Ali Free Zone Authority (JAFZA) offers offshore company formation, allowing
businesses to enjoy benefits like no corporate taxes, 100% foreign ownership, and the ability to
own property in designated areas. JAFZA Offshore companies are prohibited from conducting
business within the UAE and are mainly utilized for international trade, holding companies, or
asset protection.

Ras Al Khaimah Offshore

Ras Al Khaimah International Corporate Centre (RAK ICC) provides offshore company formation
services with benefits such as no corporate taxes, 100% foreign ownership, and confidentiality.
RAK Offshore companies cannot conduct business within the UAE and are typically used for
international trading, asset protection, and holding intellectual property.