Mainland vs. Free Zone vs. Offshore Companies in Sharjah: Which One is Right for You?

The Emirate of Sharjah, the United Arab Emirates, is one of the best sports aloof economics and commerce in the regions of the world and even a center of business visions. There are indeed a host of choices for the business persona to become running in Sharjah-the three most common types of companies (structures) in Sharjah include the Mainland, Free Zone, and Offshore. Each has its unique advantages, legislation, and restrictions. Here, we outline the detailed characteristics of these three modules to enable you to pick out the one that best caters to your business needs.

1. Mainland Company

The mainland company is operated under the Sharjah Economic Development Department (SEDD) and it allows businesses to work in the local as well as the international market.

Key Features:

• Initial fees are known, and local service agents are responsible for certain legal activities, but they are also eligible to own 100% of the business in almost all cases.
• No limitations, companies are free to choose where in UAE they would like to do business.
• It is entitled to support and participation of the government in their projects.
• Subject to UAE corporate tax laws.
• It has to have a real office (at least 200 sq. ft.).

Ideal For: Businesses looking to operate in the UAE marketplace, submit offers to government projects, and need a local presence in Sharjah.

2. Free Zone Company

A Free Zone Company is a company established within a Free Zone in Sharjah, for instance, Hamriyah Free Zone or Sharjah Airport International Free Zone (SAIF Zone). These companies offer various incentives to the companies. 280

Key Features:

• 100% foreign ownership is allowed without a local sponsor or partner.
• Profits and capital can be fully repatriated to their home country.
• There are no corporate nor personal income taxes.
• Customers duty exceptions for all import and export processes happen in the free zone.
• Distribution is a way that can be used to trade directly with the mainland; otherwise, a distributor or mainland branch is needed. (unknown at this time if this last one if applicable or not)
• The business process has been made more efficient and the business has also lower operational costs because of it.

Ideal For: Businesses which focus on international trade, manufacturing, logistic, e-commerce and companies that are not interested in having a direct presence in the mainland UAE market.

3. Offshore Company

An Offshore company is registered in Sharjah but it cannot operate a business within the UAE. Offshore businesses are usually reserved for international business and asset protection.

Key Features:

• 100% foreign ownership with no local sponsor required.
• No corporate or income taxes.
• No requirement for physical office space in the UAE.
• Can hold assets, own property (in designated areas), and operate bank accounts.
• Cannot engage in business activities within the UAE.

Ideal For: Companies requiring the most tax-efficient structures, international trading companies, entities holding asset, or those seeking financial privacy.

Which One Should You Choose?

Choose a mainland company if flexibility is what you are looking for and also your main goal is to get involved in government projects through official means.

 Choose for a Free Zone Company which is the cost-effective and the most attractive option if you want low taxes, an easy and convenient process of company formation, and international trade problems and or disputes.

You should opt for an Offshore Company, if you require a separate entity for international transactions, asset protection as well as tax benefits without the need of having a base in the UAE.