In today's climate of global transparency, the United Arab Emirates remains one of the most attractive jurisdictions for international business. However, approaches to data protection have changed significantly in recent years: the concept of "absolute secrecy" in offshore jurisdictions has been replaced by the legal security and confidentiality of onshore structures and free trade zones (FTZs).

Why do businesses choose onshore companies in FTZs?

The desire of owners to maintain data privacy is often driven not by a desire to engage in illegal activity, but by the need to protect assets from unfair competition and ensure personal security. Unlike traditional offshore companies, registering a company in a free zone (onshore) provides a business with real "economic substance," which is critical for dealing with banks and tax authorities.

Tools for Protecting Owner Interests

To ensure security of ownership and management, it is recommended to use the modern legal mechanisms adopted in the UAE:

• Choice of the Right Free Zone. The UAE offers dozens of specialized zones (such as DMCC, IFZA, or ADGM), each of which provides a high level of protection for shareholder registers from public access while maintaining the legitimacy of the business for international partners.
• Foundation and trust registration. For long-term capital protection and ownership anonymity at the holding level, private foundations in DIFC or ADGM jurisdictions are used. These structures allow for the legal concealment of ultimate beneficial owners from public registries while ensuring compliance with automatic exchange of information rules.
• UBO and tax compliance. Companies must have a register of ultimate beneficial owners (UBO) in accordance with UAE Cabinet Resolution No. 109 of 2023. When done right, these documents prevent dollar fines or account freeze-framing by the data writing within a regulatory system, as opposed to being in the public domain.
• Professional support. This includes registration, redomiciliation and document legalization procedures which involves in-depth conversations around current Free Trade Zone (FTZ) and Tax Authority (FTA) regulations.

Tax Transparency and Reputation

An onshore model in the UAE involves overhauling from an offshore-based infrastructure which stands to gain from 9% corporate tax (w.e.f June 2023) on profits exceeding a certain threshold while retaining tax residency. This allows owners and employees to apply for UAE residency visas through their founder company, bringing a new layer of integration into the Emirates legal framework.

If you want to establish a sustainable and secure business structure, we will assist you with the registration of an onshore company in no time at all without breaking any laws to protect your interests.

• Checked / Updated: 05.17.2026
• Published on: 08.13.2017
• Author: Andrey Melnichuk