Company registration in UAE.

The UAE offers three main registration options. A mainland company registered with the Department of Economic Development (DED) can trade across the UAE and internationally, with 100% foreign ownership permitted in most sectors following 2021 reforms.

A free zone company operates within one of over 40 designated zones, offering 100% foreign ownership and streamlined setup, though trading is generally limited to the zone and international markets. A 2025 Dubai resolution now allows eligible free zone companies to operate on the mainland through a branch licence or temporary permit without forming a separate entity.

An offshore structure such as RAK ICC suits international trade and asset holding with no UAE onshore activities permitted. See our guide to nine business structures in the UAE for a full overview.

The primary difference is market access. A mainland company can trade freely across the UAE, while a free zone company is limited to its zone and international business, though Dubai’s 2025 Executive Council Resolution No. 11 now allows eligible free zone companies to access the mainland through a branch licence or temporary permit. Both structures permit 100% foreign ownership in most sectors, with exceptions for the mainland Strategic Activity List.

Key differences include:

• Cost and speed: free zones offer faster and lower-cost setup; mainland registrations require a physical office lease and DED fees
• Tax: qualifying free zone companies may benefit from a 0% corporate tax rate on qualifying income; mainland companies are subject to the standard 9% rate above AED 375,000
• Visa quotas: free zone quotas are tied to office space; mainland quotas are generally more flexible

See our guide to setting up a mainland LLC in the UAE for further detail.

Following the 2021 Commercial Companies Law reforms, mainland companies have no residency or nationality requirements for shareholders or directors, except for activities on the Strategic Activity List which require UAE national participation. Free zone requirements vary by authority but generally follow the same pattern with no residency restriction.

DIFC and ADGM entities require at least one director and shareholder with no residency requirement. Both require a registered address, either a leased office or a corporate service provider’s address.

Offshore structures such as RAK ICC require at least one director, one shareholder and a registered agent.

The Dubai International Financial Centre (DIFC) and Abu Dhabi Global Market (ADGM) are the UAE’s two financial free zones operating under independent common law frameworks based on English law. They are the preferred choice for financial services firms, family offices and holding structures that require an internationally recognised legal environment.

DIFC is regulated by the Dubai Financial Services Authority (DFSA) and ADGM by the Financial Services Regulatory Authority (FSRA), which is particularly well regarded for wealth management, fintech and special purpose vehicles. Both offer 100% foreign ownership, no personal income tax and full profit repatriation.

Minimum capital requirements vary by licence type and regulated activity. Incorporation typically takes around ten business days.

Timelines vary by structure:

• Mainland: two to three weeks from submission of complete documentation
• Free zone: two to three weeks; some zones offer expedited processing
• Offshore (RAK ICC / JAFZA): five to seven business days
• DIFC / ADGM: approximately ten business days

The main variables are completeness of documentation, complexity of the ownership structure and whether sector-specific regulatory approvals are required.

The UAE introduced federal corporate tax under Federal Decree-Law No. 47 of 2022, effective for financial years beginning on or after 1 June 2023, at 9% on taxable income above AED 375,000 and 0% below that threshold. Large multinationals with global revenues exceeding EUR 750 million are subject to a 15% Domestic Minimum Top-up Tax.

Free zone companies are not automatically exempt. A Qualifying Free Zone Person must demonstrate economic substance and keep non-qualifying income below the lower of 5% of total revenue or AED 5 million to benefit from the 0% rate on qualifying income.

There is no personal income tax or withholding tax on dividends. VAT applies at 5% above AED 375,000 in annual taxable turnover. See our guide to corporate income tax in the UAE for full detail.