Thinking about starting a business in the UAE? Great choice — the country offers a strategic location, a strong economy, and business-friendly regulations. But before you dive in, the first step is choosing where to set up your company.

The Three Main Types of Company Setup in the UAE:

1. Mainland Company
Regulated by: Department of Economic Development (DED)
Ideal for: Businesses wanting to operate across the UAE without restrictions

• Can do business anywhere in the UAE and internationally
• Can have office/retail space anywhere onshore
• 100% foreign ownership allowed in most activities

2. Free Zone Company
Regulated by: Specific Free Zone Authorities (e.g., DMCC, JAFZA, DIFC, etc.)
Ideal for: Startups, tech companies, e-commerce, or international trade

• 100% foreign ownership
• No import/export duties within the Free Zone
• Cost-effective setup
• Limited to operating within the Free Zone or outside UAE (unless partnered with a distributor)

3. Offshore Company
Regulated by: Offshore authorities like JAFZA Offshore or RAK ICC
Ideal for: International holding, asset protection, and wealth management

• No physical office required
• Cannot conduct business within the UAE
• Primarily for international trade or holding companies

Which One Should You Choose?
It depends on:

• Your business activity
• Your customer base
• Your need for physical space
• Your long-term vision