There are three main types of business entities in the UAE: mainland, free zone and offshore. Mainland entities are registered under the UAE Commercial Companies Law and can operate anywhere in the UAE, but they require a local partner or sponsor who owns at least 51% of the shares. Free zone entities are registered in one of the many free zones in the UAE, which offer tax exemptions, 100% foreign ownership and other incentives, but they can only operate within their respective free zone or outside the UAE. Offshore entities are registered in one of the two offshore jurisdictions in the UAE, namely Ras Al Khaimah and Jebel Ali, which offer similar benefits as free zones, but they cannot conduct any business within the UAE.