Where to Open Your Business: Choosing Between Onshore and Offshore Free Zones in the UAE

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Many people believe that in terms of taxation, opening an onshore company is less beneficial than registering an offshore one.

Many people believe that in terms of taxation, opening an onshore company is less beneficial than registering an offshore one. However, if you open a business, let’s say, in a Dubai free zone and get a DIFC license (or a license to operate in another free zone), you will have no taxes to pay at all! You will be able to take the same benefit if you set up an offshore company in one of the UAE offshore free zones. Discover whether establishing and registration of your business in the mainland area would be a better choice compared with or an offshore free zone.

Initial information about the Emirates Free Zones

Each of the emirates has its own free zones, and each free zone was created for the development of one or more business industries, such as:

• Aviation;
• Banking;
• Oil and gas production;
• Tourism;
• Design, etc.

When You Can Set Up a Company in the Mainland Area

There are more than 30 zones in the UAE you can choose from depending on your business specifics and goals. It is an ideal solution for those who wish to set up an office in Dubai or another area, want to obtain a visa or conduct business across the UAE.

When You Should Register an Offshore Business in the Emirates

If you do not need to actually run your business in the Emirates, you may think of setting your company up in one of the UAE offshore free zones. You can still open a bank account in Dubai, but your business may not be carried out inside the Emirates and free zones. You cannot get a resident visa as well. As you can see, there are core differences between opening a company in onshore and offshore free zones. If you cannot make up a personal decision, you can hire a business consultant to help you.