UAE allows company formation in free zone, mainland, or offshore. Business setup in UAE mainland requires a local sponsor and the license is issued by DED. Free zone companies can operate within a limited geographical region and the license is issued by particular free zone authority. Offshore businesses in UAE allow your company to trade outside UAE as well as take efforts to safeguard your wealth and assets. Offshore companies get a certificate of incorporation and not a trade license. All types of companies can be started in UAE and more than thousand activities are allowed by the Economic department.