Difference between Mainland, Free Zone, and Offshore in Dubai
For a foreigner, it might get difficult to understand the concept of 'free zone,' 'offshore,' and 'mainland' in Dubai. One must have complete knowledge of what each jurisdiction provides to its businesses. Hence, to clear away the confusion, a differentiation table has been prepared.
|
|
Mainland |
Free Zone |
Offshore |
|---|---|---|---|
|
Ownership |
An expat can own 49% of shares in their company for business setup in mainland Dubai. A local sponsor must be appointed who will own the majority of shares |
A foreigner can have complete ownership of their business in any of the Dubai free zones. There is no need for appointment of local sponsor or a service agent |
A full ownership is granted to an expat in offshore Dubai only if they have a business outside the UAE |
|
Visa |
A residence visa can be obtained depending on the size of the work premises |
A residence visa can be obtained depending on the size of the work premises |
There is no need for an office space for an offshore company, hence residence visa is not granted |
|
Cost of Business Setup |
High |
Medium |
Low |
|
Audit Requirement |
It is mandatory for mainland companies to prepare audit by the end of financial year |
Only a free zone company and a free zone establishment have to prepare audit in free zone |
It is not mandatory for an offshore company to prepare audit for the company |
