The government of the UAE, in an effort to promote trade and business setup in UAE, has been working
on a policy of bringing diversified business setup in Dubai and different legal business entities.
The aim was to create an environment where all types of businesses from different industries could
not only survive but flourish because of the favorable conditions. Moderate paper work, quick
processes and moderate processing fees are part of the incentives provided to the businesses as
All those involved in company formation at Al Arabiya, Middle East know how to maneuver the process
of company formation for the company’s clients. Perfect knowledge of documents and processes allow
the consultancy to make processes quicker and the company to take a flying start.
Mainland company formation Dubai is one type of company formation that has proved to be fruitful for
those who want to own a business setup in Dubai.
The idea behind the creation of “free zones” globally was to build a model which encourages economic
activity i.e. provision of key benefits so that entrepreneurs and multinational firms establish and
freely conduct their business in free zone. Dubai free zones are the most favorable locations in the
Middle East for international operations as they offer complete ownership to a foreign investor,
zero taxation and customs privileges.
Unlike mainland’s heavy constitution and operating requirements for businesses such as appointment
of UAE national local sponsor – Dubai free zones’ policies and timeframe for new business setup is
way lighter and quicker as documentation work and administrative requirements are minimal and there
is no need to appoint local service agent to obtain license.
Any legal entity established with the purpose of making profit, outside the country of residence is
an offshore company. Such a company is often formed in a tax-free haven or an offshore financial
center and is also known as International Business Company (IBC) or Non-Resident Company (NRC).
Being a Non-Resident Company means that shareholders do not get visa and there is no physical office
for offshore company in UAE. Furthermore, Dubai offshore companies are not issued an operating
license which means they cannot conduct manufacturing, trading or professional services in UAE. They
are often incorporated for the purpose of managing offshore wealth, mutual funds, properties, hotels
etc. They are only granted certificate of incorporation.