Mainland V. Freezone V. Off-shore
Located in the west of Dubai, Jebel Ali Free Zone is the oldest in the UAE, having been established in 1985. It is also one of the most popular. Many entrepreneurs choose to set up their business in Jebel Ali due to its rich infrastructure – surrounded as it is by the necessary amenities and transport links.
| PARTICULARS | MAINLAND | FREEZONE | OFF-SHORE |
| Place of incorporation | Anywhere in UAE with the Economic Department of the concerned state | Only in the designated areas with the concerned authority of the free zone | Can be established in Dubai and RAK free zone authority. |
| Ownership | 51% local sponsor: 49% expatriate | 100% expatriate ownership | 100% expatriate ownership |
| License Type
|
Trading or Service or Industrial | Trading or Service or Industrial | General Trading or Holding Companies |
| Activity Type | General Trading or Any specific trading or service or industrial activity with no restrictions | General Trading or Any specific trading or service or industrial activity, subject to certain restrictions | General Trading, Holding Companies for investments & approved properties
|
| Operations | Companies can operate anywhere in UAE & outside UAE
|
Companies can operate within the free zone & outside UAE. | Companies can only operate outside UAE & cannot enter into contract with any UAE company. |
| Custom duties
|
Chargeable at 5% on local invoices
|
Chargeable at 5% on local invoices only if goods are removed from the free zone for sale in the local market | Not applicable as trade within UAE is not allowed
|
| Office
|
Can be taken anywhere in UAE in the form of physical office or business Centre. Greater flexibility on choosing office space.
|
Can only be taken in the designated free zone area in the form of physical office or flexi desk
|
Not permitted |
| Visa
|
Possible on basis of office area, that is, 1 visa for every 8sqm of office space
|
Possible on basis of office area, that is 1 visa for every 8sqm of office space or as per the visa eligible as per the opted business Centre.
|
Not permitted |
| Share Capital
|
No minimum capital requirement
|
The minimum share capital requirement varies from free zone to free zone with the Minimum Capital being AED 50,000
|
No minimum capital requirement
|
| Audit | Not Mandatory | Annual Audit Required | Not applicable |
| Timeline for incorporation
|
10-20 working days subject to the type of activity. | 20-30 working days subject to the type of activity and the free zone. | 15-20 working days |
| Renewal requirements | Yearly | Yearly | Yearly |
| Bank Account | Allowed | Allowed | Allowed |