The United Arab Emirates is structured into two broad incorporation paths: onshore (Mainland), licensed by each emirate's Department of Economic Development, and a separate free-zone route covering the financial free zones (DIFC and ADGM) plus 40+ commercial zones. This page is the country-level guide and covers the Mainland route in detail; the Free Zones page covers DIFC, ADGM, and the commercial zones in one place.
The Mainland regime sits under Federal Decree-Law No. 32 of 2021 (Commercial Companies Law). Its distinctive feature is that a mainland company can trade anywhere in the UAE and deal directly with the local market and government, including retail and government contracts — something free-zone companies generally cannot do without a distributor or dual licence. Since 2021, most activities permit 100% foreign ownership; only a small list of strategic-impact sectors still requires Emirati participation under Cabinet Decision No. 55 of 2021.
The standard mainland vehicle is the Limited Liability Company ("LLC") with 1–50 shareholders. There is no fixed minimum capital (capital must be "adequate"), at least one manager is required, and the company needs a physical office or tenancy in the relevant emirate. Registration runs through the relevant DED — Dubai's Department of Economy and Tourism (DET), Abu Dhabi's ADDED, or Sharjah's SEDD — typically within several days to two weeks. Licence fees vary by emirate and activity, but indicative figures are AED 10,000–30,000 (≈ US$2,700–8,200) per year.
Federal layer applies to both paths: corporate tax at 9% on profits above AED 375,000 (≈ US$102,000) via the Federal Tax Authority, VAT at 5%, no personal income tax, and no withholding tax. Mainland companies do not get the free-zone 0% regime but may use Small Business Relief (revenue ≤ AED 3 million ≈ US$817,000) until end-2026. Audited financial statements are required under the Commercial Companies Law, and a Real Beneficiary (UBO) register is filed with the licensing authority under Cabinet Decision No. 58 of 2020.