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SFM IN PRESS

SFM holds a roadshow in Shanghai

27 October 2019

With the rapid development of the economic environment and the [..]

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European Union Adds UAE and Switzerland to Tax Whitelist

16 October 2019

In mid-October 2019, the European Union’s finance [..]

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FREE ZONES, ONSHORE, OFFSHORE: WHAT ARE THE DIFFERENCES?

Free zone entity (FZE)

Dubai has multiple free zones on its territory. The main characteristic of a Free Zone entity is that it allows the client to own 100% of the corporation. Therefore there is no need for a local sponsor. The Free zone entity is allowed to transact within the free zone and internationally.

An office space is mandatory and residence visas are possible depending on the size of the office / work premises.

In few specific free zones (such as DIFC, DMCC) there is a mandatory requirement for accounts to be kept and audited yearly, but in most other free zones, no accounting/audit requirement is necessary.

Onshore

This type of incorporation entails the use of a Local person as a partner or an agent, depending on the type of incorporation. This local partner or agent is entitled to a yearly fixed fee, which is usually predetermined by contract. The advantage is that this type of incorporation allows for the conducting of business throughout the UAE and internationally.

An office space is mandatory and residence visas are possible depending on the size of the office / work premises.

There are no accounting or auditing requirements.

Offshore

This follows your typical offshore IBC type incorporations, there is no need for an office to be rented and therefore it does not allow for the issuance of residence visas for this type of incorporation.

There is no accounting or auditing requirements.