Comparison
Free zone vs offshore in the UAE
A free zone company trades, leases premises and sponsors residence visas. An offshore company does none of those things — it exists to hold assets. They are not price points on the same scale, and choosing offshore to save money is choosing a different product.
Side by side
| Criterion | Free Zone | Offshore |
|---|---|---|
| Can trade | Yes, within the zone and internationally | No |
| Residence visas | Yes, quota by package | None, ever |
| Premises | Flexi-desk to warehouse | Registered agent only |
| UAE bank account | Yes | Sometimes, and harder |
| VAT registration | Yes where thresholds are met | No |
| Typical use | Operating business | Holding shares, IP or property |
| Cost | AED 12,500–35,000 | Lower, but not comparable |
| Setup time | 3 days to 3 weeks | 2 days to 2 weeks |
Straight answer
How to decide.
The confusion here costs people a year. Offshore companies are sold as cheap UAE companies, and they are not companies in the sense most buyers mean — no visa, no office, no domestic trade, and a bank account that may not open. If somebody has offered you an offshore company as a route to living in Dubai, they have either misunderstood the product or are hoping that you have. Used properly, offshore is elegant: a holding entity above one or more operating companies, keeping shareholding clean and the operating businesses separable.
Questions
No. Offshore companies — RAK ICC, JAFZA Offshore, Ajman Offshore — cannot sponsor residence visas for anybody, including their own shareholders.
A free zone company is an operating business: it trades, leases premises and sponsors visas. An offshore company is a holding vehicle: it owns assets, has no premises and no visas, and cannot trade inside the UAE.
Offshore is cheaper, but they do different jobs. Comparing them on price is like comparing a filing cabinet to an office.