Factors

Individuals

Partnerships

Limited Liability Company

S – Corporation

C – Corporation

Trusts & Estates

Legal Status

Owned by one individual

Owned by two or more partners

Separate legal entity

Separate legal entity

Separate legal entity

Legal entity holding assets for beneficiaries

Control and management

Proprietor is the sole owner

Shared control by partners

Managed by members or managers

Managed by shareholders and directors

Managed by shareholders and directors

Controlled by trustees or executors

Minimum and maximum members

Minimum: 1

2 or more

1 or more

1-100 shareholders

Unlimited shareholders

Varies based on trust or estate setup

Maximum: 1

Registration requirement

Minimal; local permits/licenses required

Partnership agreement; state registration

State registration

State registration + IRS election (Form 2553)

State registration

Estate/trust documents, probate

Capital raising options

Personal savings, loans

Partner contributions, loans

Member contributions, loans

Shareholder investments

Stock sales, loans

Funded by assets of the estate/trust

Liability protection

No personal liability protection

Limited, based on partnership type

Personal liability protection for members

Personal liability protection for shareholders

Personal liability protection for shareholders

No personal liability for beneficiaries

Taxation

Based on Individual Tax Brackets

Based on individual tax brackets
Flow-through to partners' personal tax returns

Flow-through or corporate tax rates
Can be taxed as partnership or corporation

Flow-through to shareholders' personal tax returns
Based on individual tax brackets

Taxed at the entity level (Corporate income tax)
Flat rate (21% as of 2024)

Own tax brackets and rates, which can differ from individual rates.

Compliance

Minimal, local regulations

Varies; partnership filings required

State filings, operating agreements

Corporate filings, IRS reporting

Corporate filings, IRS reporting

Estate or trust filings, probate

Continuity and succession planning

Ends with owner

Ends with partners subject to the agreement

Can continue with member succession

Can continue beyond shareholders

Can continue indefinitely

Ends per terms of trust or estate

Suitable for

Small, simple businesses

Small to medium partnerships

Small to large businesses seeking flexibility

Suitable to small to medium-sized businesses wanting to avoid double taxation

Suitable for larger businesses and intending to go public

Managing and distributing estate assets

Factors

Mainland Company Registration

Dubai Free Zone Company Registration

Dubai Offshore Company Registration

Unrestricted Trading

Mainland companies can trade anywhere within the UAE.

Limited to operating within the free zone and international markets.

Limited to international operations and not permitted to trade directly within the UAE.

Ownership & Leasing

Businesses can lease and own property in mainland areas.

100% Foreign Ownership without the need for local partners, but property leasing is limited to the free zone

No, Offshore companies cannot lease or own property in the UAE.

Operations

Access to public sector opportunities and broader market engagement.

Operate within designated free zones tailored to specific industries.

Market Access

Best suited for businesses offering direct services or products to UAE consumers.

Best suited for businesses focused on export/import and international markets

Best suited for holding companies, international trading, and investment activities.

Tax Benefits

No, but eligible for tax incentives depending on the sector

Exempt from UAE corporate taxes and certain regulations.

Exempt from local taxes and regulatory constraints.

International Operations

–

Focused on export/import and international trade.

Tailored for businesses focusing on global trade and asset protection.

Confidentiality

Standard regulatory requirements; less privacy

Moderate level of confidentiality; specific rules depending on the free zone

Offers privacy and financial efficiency.

Business Structures Available

1. Sole Proprietorship

2. Partnerships

3. Limited Liability Company (LLC)

4. Civil Company

5. Branch or Representative Office

6. Public Joint Stock Company (PJSC)

7. Private Joint Stock Company (PrJSC)

1. Free Zone Limited Liability Company (FZ LLC)

2. Free Zone Company (FZ Co.)

3. Free Zone Establishment (FZE)

1. Offshore Foundation

2. Offshore Trust

3. Limited Liability Company (Offshore LLC)

4. International Business Company (IBC)