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Incorporation Hub

Incorporation in the United Arab Emirates

Two main incorporation paths: onshore Mainland under the federal Commercial Companies Law (trades UAE-wide, deals with government), and the separate Free Zones route covering DIFC, ADGM, and 40+ commercial zones. 100% foreign ownership for most activities; 9% federal corporate tax (0% Qualifying Free Zone Person in the free-zone path).

Minimum capital

None fixed for a mainland LLC (free-zone minimums vary)

Timeline

Several days to ~2 weeks (mainland DED); see Free Zones page for DIFC/ADGM/commercial timelines

Corporate tax

9% above AED 375,000 ≈ US$102,000 (no free-zone 0% on the mainland path)

Annual audit

Yes (audited accounts required under the Commercial Companies Law)

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. 109 of 2023.

Sources used: the Commercial Companies Law (Federal Decree-Law No. 32 of 2021) and Cabinet Decisions No. 55 of 2021 (strategic sectors) and No. 109 of 2023 (UBO); relevant Department of Economic Development guidance (Dubai DET, Abu Dhabi ADDED, Sharjah SEDD); and UAE Federal Decree-Law No. 47 of 2022 (corporate tax) with Federal Tax Authority guidance.

Practical requirements

  • Onshore mainland companies licensed by an emirate's DED under the Commercial Companies Law.
  • Covers the LLC, PrJSC, PJSC, sole establishment, and branches.
  • Excludes DIFC and ADGM (their own laws) and the 40+ commercial free zones; see the UAE: Free Zones page.

Related guides

Further reading

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