Market guide · United Arab Emirates
Company incorporation in the UAE
Set up on the mainland or in a free zone, owned 100% by you, and based in Dubai or anywhere in the Emirates.
- 100% foreign ownership, mainland or free zone
- Over 40 free zones, or full UAE market access on the mainland
- Company setup, tax, visas, and PRO from one team
100%
Foreign ownership
9%
Corporate tax above AED 375k
5%
VAT
0%
Personal income tax
Overview
Business setup in the UAE
Company incorporation in the UAE starts with one decision: mainland or free zone. The mainland, licensed by each emirate's Department of Economic Development, gives you the whole UAE market and government work. A free zone gives 100% ownership, a 0% rate on qualifying income, and a faster, lighter setup, but limits how freely you can sell to mainland clients.
Most foreign investors set up in Dubai, then add Abu Dhabi or other emirates as they grow. Our Dubai-based consultants provide company registration services across the UAE. They help you pick the right route and jurisdiction, register the company, and handle the license, tax, visas, and PRO work. For the full step-by-step on the Dubai mainland and free zones, see our company registration in Dubai page.
The first decision
Mainland vs free zone
The choice that shapes your tax, your office, and who you can sell to. Here is how they compare.
Mainland
Licensed by the emirate's economic department. Full access to the UAE market.
Foreign ownership
Up to 100% for most activities
Where you can trade
Anywhere in the UAE, plus government tenders
Corporate tax
9% on profit above AED 375,000
Office
A physical office on an Ejari lease
Best for
Selling to the UAE market, retail, F&B, contracting, services
Free zone
Licensed by a free zone authority. 100% ownership and a 0% rate on qualifying income.
Foreign ownership
100%, always
Where you can trade
Internationally and within the zone. Mainland sales need a distributor or branch
Corporate tax
0% on qualifying income, 9% on the rest
Office
Flexi-desk or office inside the zone
Best for
Export, holding, consulting, and services to clients abroad
A free zone license is not automatically tax-free. The 0% rate applies only to qualifying income, and only if the company meets the Qualifying Free Zone Person conditions, including real substance in the zone. A third route, offshore (RAK ICC or JAFZA), is for holding and international structures with no UAE operations.
Legal entities
Types of company in the UAE
Five common structures for foreign investors, beyond the mainland and free zone choice.
| Entity | Ownership | Best for |
|---|---|---|
| Mainland LLC | Up to 100% foreign | Selling across the UAE market |
| Free zone company (FZE / FZCO) | 100% foreign | Export, services abroad, holding |
| Branch office | Extension of the foreign parent | A parent operating under its own name |
| Representative office | Extension of the parent | Promotion only, no trading income |
| Offshore (RAK ICC, JAFZA) | 100% foreign | Holding and international structures, no UAE trade |
Free zones
UAE free zones
Over 40 free zones across the seven emirates. A few of the ones we set up in most.
DMCC
Trade and commodities
One of the world's largest free zones, in Dubai, strong for trading, commodities, and services.
DIFC
Finance and law
Dubai's financial center, under English common law with its own courts and regulator.
ADGM
Finance, Abu Dhabi
Abu Dhabi Global Market, a common-law financial center for funds, fintech, and holding.
JAFZA
Logistics and industry
Jebel Ali Free Zone, built around the port for trade, logistics, and manufacturing.
IFZA
Cost-effective setup
A Dubai free zone popular with SMEs and consultancies for flexible, lower-cost licenses.
RAKEZ
Industry and SMEs
Ras Al Khaimah's economic zone, competitive for manufacturing, trading, and small business.
Why the UAE
Why foreign investors choose the UAE
A low-tax, fully foreign-owned base with global connectivity and deep capital.
100% foreign ownership
Own your company outright, in a free zone or, for most activities, on the mainland.
Low, simple tax
9% corporate tax, a 0% free zone regime on qualifying income, 5% VAT, and no personal income tax.
Global connectivity
Two of the world's busiest airports and ports, linking Europe, Africa, and Asia.
40+ free zones
Sector-focused zones for finance, trade, logistics, media, and tech, plus full mainland access.
Deep capital and demand
A wealthy domestic market and a hub for regional headquarters and investment.
Residency and lifestyle
Investor and Golden Visa routes, with residency for you, your team, and your family.
Our services
Everything you need in the UAE
Company registration, accounting, tax, and visas, run by our Dubai consultants as one service.
Company formation
Mainland, free zone, or offshore, registered in the right jurisdiction for your activity.
Accounting & tax
Bookkeeping, VAT, and corporate tax registration and filing with the FTA.
Visas & PRO services
Investor, employee, dependent, and Golden Visas, plus renewals and government liaison.
Corporate tax
The 9% regime, the free zone 0% rules, and where your income actually lands.
Corporate bank account
Account opening with UAE banks, with the documents and substance they expect.
Golden Visa
Ten-year residency for investors, founders, and specialists.
How setup works
The setup process.
Four stages, once the mainland or free zone choice is made. Each stage’s typical duration assumes a clean case.
Stage 01
Structure and activity
We confirm whether the mainland or a free zone fits, match your activity to the right license, and pick the jurisdiction.
Stage 02
Name and approvals
We reserve your trade name and obtain the initial approvals from the authority or free zone.
Stage 03
License and office
We prepare the company documents, arrange the office or flexi-desk, and obtain your trade license.
Stage 04
Visas and banking
We issue the establishment card, arrange investor and staff visas, and open the corporate bank account.
Costs
What it costs to set up
Cost depends on the emirate, the free zone, the activity, and how many visas you need.
| Item | What to expect |
|---|---|
| Trade license | By emirate, free zone, and activity |
| Office or flexi-desk | Ejari lease on the mainland, flexi-desk options in free zones |
| Establishment card and visas | Per visa, for investors and staff |
| Name reservation and approvals | Government and authority fees |
| Professional and PRO fees | A fixed quote, based on your structure |
| Accounting, VAT, and tax filing | Ongoing, once you are licensed |
We quote a fixed fee before any work starts. Free zone packages bundle the license, a flexi-desk, and a set number of visas, while mainland costs depend on the office lease and activity. We size it to your plan, not to a package you do not need.
Tax and compliance
Tax and ongoing obligations
Low rates, but real registration and filing duties since corporate tax arrived.
The UAE charges 9% corporate tax on taxable profit above AED 375,000, and 0% below it. A free zone company can keep a 0% rate on its qualifying income if it meets the Qualifying Free Zone Person conditions, but income from mainland clients and other non-qualifying income is taxed at 9%. VAT is 5%, with registration required once taxable supplies pass AED 375,000. There is no personal income tax.
Two points catch people out. A free zone license does not make a company automatically tax-free, and every company, free zone included, must register with the Federal Tax Authority through EmaraTax and file. Large multinational groups, with global revenue above the international threshold, also face a 15% domestic minimum top-up tax from 2025.
Register early and keep clean books. Corporate tax registration is mandatory, returns are due within nine months of the year-end, and audited accounts now matter for the free zone 0% rate. We handle the FTA registration, VAT, and filings so the rate you expect is the rate you get.
From our UAE director
Most people arrive sure they want a free zone, or sure they want the mainland, before they have checked where their customers actually are. That one question, mainland reach against free zone tax treatment, decides most of the setup. We work it through with you first, then register, file, and handle the visas, so the structure fits the business and not the other way around.
Sohaib Ikram, Director, Emerhub UAE
Client reviews
What clients say
Rated 4.7 across 226 Google reviews.
“A smooth process from start to finish, from translating the documents to getting the license issued.”
Melvin Chong
“Handled by a professional team. Active follow-up, responding in less than 24 hours, and the project was done within the promised deadline.”
CK2 Kosasi
“They patiently took the time to understand my situation and made what I thought would be a stressful process smooth and easy.”
Verified client
Common questions
UAE company setup
What foreign investors ask before incorporating in the UAE.
Mainland or free zone, which should I choose?
It comes down to where your customers are. A mainland company can sell anywhere in the UAE and bid for government work, and it pays 9% corporate tax on profit above AED 375,000. A free zone company gets 100% ownership and 0% on qualifying income, but selling to mainland clients is restricted and that income is taxed at 9%. We work the decision through with you before anything is filed.
Can a foreigner own 100% of a UAE company?
Yes. Free zones have always allowed 100% foreign ownership. On the mainland, the old 51% Emirati partner rule was removed in 2021, so most commercial and industrial activities can now be 100% foreign-owned. A few strategic sectors, such as parts of banking and insurance, still require Emirati participation.
Is a free zone company tax-free?
Not automatically. A free zone company pays 0% only on qualifying income, and only if it meets the Qualifying Free Zone Person conditions, including real substance in the zone. Income from mainland clients and other non-qualifying income is taxed at 9%. Every free zone company must still register with the Federal Tax Authority and file.
How long does company setup take in the UAE?
A free zone license is often issued within days to a couple of weeks once documents are ready. A mainland setup takes a little longer. The corporate bank account is usually the slowest step, commonly a few weeks, so we start it early.
Do I need a physical office in the UAE?
On the mainland, yes, a registered office on an Ejari lease is part of the license. Many free zones are more flexible and offer flexi-desk or shared-office options that satisfy the requirement. We arrange a compliant address either way.
Can a free zone company do business on the mainland?
Not directly with mainland clients. To sell into the mainland, a free zone company usually appoints a local distributor or registers a mainland branch. Mainland income is taxed at 9% and, handled carelessly, can affect the free zone company's 0% status, so it is worth structuring up front.
What does it cost to set up in the UAE?
It depends on the emirate, the free zone, the activity, and how many visas you need. The main costs are the license, the office or flexi-desk, and visa fees. We quote a fixed fee for the setup before any work starts.
How do I register a company in Dubai?
You choose mainland or free zone, confirm the activity and legal form, reserve a trade name, get initial approval, sign the company documents, secure an office, and collect the license, then the establishment card, visas, and bank account. Our Dubai company registration page walks through it in detail, and our team runs the whole process for you.
Do you provide company registration services in Dubai?
Yes. Emerhub provides company registration and incorporation services across the UAE, with most clients setting up in Dubai. We handle the mainland or free zone setup end to end, from the trade name and license to visas, the bank account, and ongoing accounting and tax.
Why use a company registration consultant in the UAE?
The mainland-versus-free-zone choice, the activity list, and the corporate tax rules all shape the setup, and a wrong call is slow to undo. A UAE business registration consultant confirms the right structure before filing, deals with the authorities and free zones for you, and keeps the company compliant after launch.
Talk to our team
Setting up in the UAE?
Share your plans with the Emerhub team. We will recommend mainland or free zone, pick the jurisdiction, register the company, and handle tax, visas, and the bank account on your behalf.
Emailuae@emerhub.com
