New Company Formation

Mainland companies can trade directly in the UAE local market under a licence from the relevant economic department, free zone companies are licensed by individual free zone authorities and mainly operate within the zone or internationally, while offshore companies are typically holding or investment structures that cannot trade inside the UAE market.​

If your primary target is the UAE onshore market, a mainland company is usually the most suitable, as free zone and offshore entities generally cannot conduct onshore business without using specific intermediaries or additional structures.

Many free zones allow 100% foreign ownership as standard, and UAE legal reforms now permit 100% foreign ownership for a wide range of mainland activities, subject to each emirate’s rules and negative lists; offshore entities also typically allow full foreign ownership.

Mainland and most free zone companies can sponsor residence visas for owners and employees, subject to licence type and office/space requirements, whereas offshore companies usually cannot sponsor visas directly and are used mainly for holding or asset‑protection purposes.

Timelines vary by authority, activity, and documentation, but many free zone and mainland setups can be completed in a few days to a couple of weeks once KYC and approvals are in place, while offshore formations are often faster because they require fewer local operational steps.​

Prema Consulting compares mainland, free zone, and offshore routes against your business model, target markets, tax and compliance needs, and budget, then manages the entire registration, licensing, and banking process so you get a structure that works now and remains flexible as you grow.