Dubai, a place of businesses hub. There are various types of businesses are flourishing here in UAE. As we all know this place is very well connected with whole world. Either in terms of geographical location or in terms of foreigner’s visits and accessibility. Though, till date many entrepreneurs are trying to get the push start in this region. As in result they can be able to establish their business in Dubai to boost the profits and marketed audience. You can establish your company in Dubai under various jurisdictions. Means, a Dubai mainland company, Dubai freezone company formation, offshore company, or limited liability company LLC.

Let us learn a bit about two categories of business formation company in Dubai which is Offshore company and Freezone company. These both concepts are very popular and widely practice in UAE.

What is offshore company?

An offshore company does not bound you to residing in UAE. In easy words, you can say this sort of company do not require physical office and your presence. Moreover, you only are established and registered in UAE as an offshore company owner. All your offices, physical appearance, are in your hometown or any other country. Being registered in UAE you can easily perform business activities, assets management, but all this will be outside from jurisdiction where it is incorporated. You can carry through your business activities outside the country. You can use this type of company license to hold real estate along with your shareholder, if any. This is conditional to many factors you can read other articles for more details.

You can enjoy the offshore company’s flexibility which is a mixture of quite many things. An offshore company can open an UAE based account and also allowed to invest within and outside the country.

What is Freezone company?

A freezone area is a place where you can easily store and receive products and goods without paying huge duties and taxes to the authorities of the country. This concept is come into existence to make businesses flourish and grow with maximum profits. This concept is very well known in international marketplaces as well. United Arab Emirates took this opportunity to increase the economic state of the country by allowing traders who only need to open a free-zone company just for their products settlement.
You can avail freezone services by getting a license from DED. Few of free-zones are dependent and required to mention the purpose of company. And a physical presence of company’s office is a must thing for a free-zone company in Dubai. And also, you can work in a virtual space of minimum area ft. On rental basis just for showing your physical appearance. At this moment of time UAE has more than 50 freezone areas working actively. You only need to check out your business nature and category is falling in free-zones classification or not. There are few restrictions for freezone company by UAE laws.

What are the main differences between offshore and freezone in Dubai?

There are few things that differentiate both of the company setups. Let’s discus them in bullet points:

  • In Freezone physical appearance is necessary while in offshore it is not mandatory thing.
  • You can avail a resident visa if your own a freezone company. Although you cannot own a residency with your offshore company license.
  • The cost of freezone company setup is around 11500 AED to 70000 AED. And an offshore company can be setup within around 10000 AED to 18000 AED. That is also dependent upon activities and business nature.


Either you choose offshore company or a freezone company both will be advantageous for your business. Because United Arab Emirates is the booming business hub all around the globe.

For any type of services in business setup. Either consultancy, license, immigration, attestation, and visas. You can reach out to us for all the solutions to your business setup in Dubai.