Difference Between Dubai Free Zone and Offshore company Setup

Dubai Free Zone and Offshore


Having the right brain and team behind your company is a vital part of company setup. You might be new to it or need to know the current market status to take the right steps to ensure absolute success, that’s where Radiantbiz comes into play. Radiantbiz provides the right tools to ensure you the best choice for business setup in UAE. Having successfully assisted in setting up 1000+ companies Radiantbiz is the right place for your business needs and your wish to starting a business in Dubai.

Free zone

Free zone companies are those which are licensed to practice in the same free zone or internationally. Mainly used for imports/re-exports, free zone companies must follow special jurisdictions issued by the authorities concerned. The free zone is one of the preferred ways for expatriates to do business setup in Dubai.

Offshore zone

Offshore business setup in Dubai enjoy a majority of the perks of the free zone but the significant difference between the two is anonymity. Offshore companies enjoy a much more flexible structure as it allows them to keep details anonymous, unlike free zone. They also enjoy similar perks of ownership, like freezone. They are generally used as an asset for other companies working in or outside UAE.

Difference between free zone & offshore

The difference between free zone & offshore are as follows:-


Scope of business Does not allow direct trade in the local market however in case one does wish, they are required to pay 5% duty for the local market invoices. Apart from that free zone companies may do business in the same free zone or internationally. Offshore companies are also registered under free zone however they must not be substituted for free zone. Offshore companies enjoy many benefits of the free zone except for the fact that offshore companies may conduct their business activities externally and not inside the country.
Ownership Free zone companies enjoy 100% ownership Offshore companies also enjoy 100% ownership over their business
Office space Depending on the needs a company may or may not decide on leasing an office space. Companies can remain active through Flexi desks/smart offices. Companies under the offshore zone are not allowed the option of renting an office space as is the address of the company
Visa Facility In general free zone companies are issued 2 visas with 3-6 being issued as well. However, an office space must be leased to avail more visas No visas are issued for companies under this zone. Neither are letter of credits.

Why Radiantbiz is the best choice for free zone & offshore company registration

Radiantbiz is the best choice for your new company formation in Dubai because

  • We assist our clients with all the nitty-gritty details of company administration. We help you with your business formation in Dubai.
  • We provide the best resources to help you determine the right solutions for your business needs. We are your one-stop solution to setting up your business in the UAE.
  • We provide solutions for PRO services, VAT, auditing, accounting, etc.
  • We help our clients to choose the right bank for their everyday transactions. Aiming to make them more flexible and quicker for your Dubai business setup procedures.
  • We have great consultants that help our clients budget their options in the most effective way to set up and operate their offshore company formation in UAE on the right foot with the right financial foothold.
  • We also focus on website designing, and digital marketing as we choose the right tool for your business growth.

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