Company Formation in United Arab Emirates

Last updated: April 2026.

The United Arab Emirates is the most-formed jurisdiction in the Middle East and one of the top three globally for non-resident incorporation. Three structures dominate: mainland LLCs (full UAE market access, 100% foreign ownership now permitted in most sectors), free zone companies (50+ free zones, 0% corporate tax for Qualifying Free Zone Persons, no customs duty), and offshore companies (RAK ICC, JAFZA Offshore — used for holdings and international structuring, no UAE operations). Corporate tax is 9% on profits above AED 375,000, with 0% below. Personal income tax is zero. The Small Business Relief regime — 0% corporate tax on profits up to AED 3 million until end-2026 — covers most early-stage businesses entirely.

We form UAE companies across all three structures: trade-name reservation, licence application, MoA drafting, Ejari or free-zone lease, FTA registration, residency-visa support, and bank account introduction. Fixed price, dedicated manager, all government and licensing fees included.

Quick facts	Value
Corporate Tax (mainland & non-QFZP free zone)	9% on profits above AED 375,000; 0% below
Free Zone QFZP rate	0% on qualifying income (substance + qualifying activities required)
Small Business Relief	0% CT until 31 Dec 2026 if revenue ≤ AED 3,000,000/year
VAT	5% (registration mandatory above AED 375,000 turnover)
Personal income tax	0%
Withholding tax (dividends, interest, royalties)	0%
Foreign ownership (mainland)	100% in most sectors (since 2021 reforms)
Foreign ownership (free zone)	100% — no local sponsor needed
Standard formation time	5–7 days (free zone), 2–4 weeks (mainland LLC)
Government fees	Included in our packages
Language of filings	Arabic + English
Currency	UAE Dirham (AED)

Why Form a Company in the UAE

Three things drove the UAE to its current scale as a formation hub: tax, market access, and reputation.

Tax remains the headline. Corporate tax was introduced only in June 2023 and is still capped at 9%, with 0% below AED 375,000 in profit. Small Business Relief takes that further — companies earning up to AED 3 million per year pay 0% corporate tax through to the end of 2026. Free zone companies that qualify as QFZPs pay 0% on qualifying income indefinitely (subject to economic substance). There is no personal income tax, no capital gains tax for individuals, no withholding tax on outbound dividends, interest, or royalties. The UAE has more than 140 double-tax treaties.

Market access has changed. The 2021 amendments to the Commercial Companies Law removed the historic requirement for a UAE national to hold 51% of a mainland LLC. Mainland companies in most sectors can now be 100% foreign-owned. This collapsed the historic case for free zones and reopened mainland as a serious option for any business that wants to trade directly with UAE customers.

Reputation as a regional hub. Dubai and Abu Dhabi sit at the centre of every Gulf, Middle East, North Africa, and South Asia trade flow. A UAE company is a recognised counterparty in every market in those regions. Access to Gulf banking, regional logistics infrastructure, and one of the world's busiest air-cargo hubs makes the UAE a natural base for any business operating across MENA, India, and East Africa.

The trade-offs in 2026: the new corporate tax requires real compliance work; economic substance requirements have tightened to qualify for the 0% free-zone rate; the Federal Tax Authority is enforcing the 3-month registration window after licence issuance with penalties; and the new mandatory e-invoicing system rolls out through 2026. None of this is fatal — it's just the price of the UAE growing into a mature corporate jurisdiction.

Company Types Available in the UAE

UAE corporate law gives you four practical structures. Choosing between them is the most important decision in UAE formation.

Mainland LLC (Limited Liability Company)

Licensed by the Department of Economic Development (DED) of an individual emirate (Dubai, Abu Dhabi, Sharjah, etc.). Permits trading throughout the UAE without restriction, including with government, freely with mainland and free-zone counterparties, and across all economic activities except those reserved for nationals (security, certain media, etc.). Since 2021, 100% foreign ownership is permitted in over 1,000 commercial activities. Subject to the 9% corporate tax above AED 375,000.

Free Zone Company (FZ-LLC or FZ Establishment)

Licensed by one of more than 50 free zone authorities — DMCC, IFZA, Meydan, RAKEZ, JAFZA, ADGM, DIFC, DSO, and many others. Each free zone has its own licensing rules, capital requirements, office options, and visa allocations. 100% foreign ownership is universal across free zones. 0% corporate tax is available for entities qualifying as Qualifying Free Zone Persons (QFZPs) — requires demonstrable economic substance in the free zone, qualifying-income-only revenue (transactions with other free zone entities or specific qualifying activities like manufacturing, logistics, holding, treasury), and no significant mainland UAE business. Restrictions on direct trading with the UAE mainland: free zone companies cannot generally invoice mainland customers directly without a mainland distributor or branch.

Offshore Company (RAK ICC, JAFZA Offshore)

A non-trading vehicle for holding international assets, intellectual property, real estate, or as a personal-asset structure. Cannot conduct business in the UAE. No UAE residency visa attached. Similar role to BVI BCs or Cayman exempted companies — favoured for international structuring and holding purposes. Light reporting, full confidentiality of beneficial owner (kept on register at the offshore authority, not public).

Branch of a Foreign Company

A foreign parent's UAE branch — mainland or free zone version. Not a separate legal entity. The parent's balance sheet faces UAE counterparties. Used when the foreign group needs UAE invoicing or local presence without a separate sub.

Form	Foreign ownership	Corporate tax	UAE market access	Visa eligibility	Common use
Mainland LLC	100% (most sectors)	9% above AED 375k	Full	Yes	Trading, services, retail, contracting
Free Zone (FZ-LLC)	100%	0% if QFZP, else 9%	Limited (free zone or international)	Yes	Trading, holding, services, manufacturing
Offshore	100%	n/a (no UAE income)	None	No	Holdings, IP, asset structuring
Branch	100% (parent's)	9% on UAE income	Per parent licence	Per parent	Foreign group presence

Step-by-Step Formation Process

Timing varies materially between mainland LLCs and free zone companies. The free-zone process is faster because everything happens within one authority. Mainland LLCs require coordination between the DED, the Federal Tax Authority, GDRFA (immigration), and Ministry of Labour.

Free Zone Company

Free zone selection. We recommend the right free zone based on your activity, visa needs, office requirements, and budget. DMCC for commodities, services, and crypto; IFZA for general trading and consultancy at lower cost; Meydan for media and creative; ADGM and DIFC for financial services; JAFZA for industrial and logistics.

Trade name reservation and initial approval. Submitted to the chosen free zone authority. Approval typically within 1 to 3 working days.

Documentation pack. Memorandum of Association, shareholder and director KYC, business plan summary (some free zones require this for regulated activities), lease agreement (most free zones offer flexi-desk and shared office options that satisfy the lease requirement at low cost).

Licence issuance. Trade licence and Establishment Card issued. Most free zones complete this 5 to 7 working days from a clean filing.

Federal Tax Authority registration. Mandatory within 3 months of licence issuance. We file at incorporation to avoid late penalties.

Visa applications and bank account. Investor visa and any employee visas processed in parallel. Bank account opening starts after Establishment Card issuance and typically takes 2 to 6 weeks.

Mainland LLC

Activity and trade name selection. DED approval of business activity and name (1 to 3 working days).

Memorandum of Association. Drafted and notarised at a UAE notary public. For 100%-foreign-owned mainland LLCs no local sponsor is required for the activities listed in the 2021 reforms.

Ejari registration. Mandatory commercial lease registered with the Real Estate Regulatory Agency. We coordinate with serviced-office providers for cf24 clients who do not need a dedicated office.

Trade licence. Issued by the DED. Typical timing 2 to 4 weeks from a complete file, depending on the activity.

FTA, Chamber of Commerce, and Ministry of Labour. Registrations completed in parallel after licence issuance.

Visa, Emirates ID, and bank. Investor visa, medical, and Emirates ID processed sequentially. Bank account opening begins after Emirates ID issuance for the resident director and takes 2 to 6 weeks.

End-to-end timeline from KYC clearance to operating company with bank account: 2 to 4 weeks for free zone, 5 to 9 weeks for mainland LLC.

Required Documents

For each shareholder, director, and authorised signatory:

Passport (clear scan of all relevant pages, including any prior UAE entry stamps)
Most-recent UAE entry stamp or visa page (where applicable)
Recent CV (required by most free zones and by UAE banks)
Proof of residential address dated within three months
Bank reference letter (some free zones and most banks require it)
For corporate shareholders: certificate of incorporation, MoA, register of directors, UBO declaration, bank reference, all attested by the UAE embassy in the country of issuance and Ministry of Foreign Affairs

The MoA must be notarised at a UAE public notary (we handle this remotely under power of attorney for non-resident shareholders).

Costs and Timeline

UAE formation costs vary widely by free zone, by activity, and by whether you need investor visas, office space, and customs codes. The structure is genuinely competitive: IFZA and RAKEZ at the lower end, DMCC and ADGM at the premium end, DIFC and ADGM higher again for financial-services-licensed structures.

Our packages cover full incorporation, all government and licensing fees, MoA notarisation, registered office or flexi-desk for year one, FTA registration, beneficial-owner registration, and a UAE bank account introduction. Investor-visa packages and Emirates ID processing are quoted separately by visa count. Contact us for a fixed-price quote matching your specific structure.

Typical timelines:

Structure	Day 1	Day 7	Week 2	Week 4	Week 6–9
Free zone (e.g. IFZA)	KYC submitted	Licence issued	Visa stamped	Bank account opened	Operations begin
Mainland LLC	KYC submitted	DED initial approval	MoA notarised	Trade licence issued	Visa, Emirates ID, bank account

Tax Overview for UAE Companies

The UAE corporate tax landscape changed materially in June 2023 and is still being phased in.

Corporate tax: 9% on taxable profits above AED 375,000 per annum. 0% below that threshold. There is no progressive scale — it is a flat 9% on the slice above AED 375,000.

Small Business Relief: 0% CT for any UAE resident person (including most companies) with revenue at or below AED 3,000,000 in the relevant tax period. Available for tax periods ending on or before 31 December 2026. Once you exceed AED 3 million in revenue in any year, you lose Small Business Relief permanently — even if revenue subsequently drops back below the threshold.

Free Zone QFZP regime: 0% CT on Qualifying Income. To qualify, a free zone entity must (a) maintain adequate substance in the UAE — real office, employees, decision-making in the free zone, (b) earn only Qualifying Income — defined by Cabinet Decisions, broadly transactions with other free zone persons or specific qualifying activities like manufacturing, logistics, distribution, holding, treasury, fund management, headquarters services, (c) not generate material non-qualifying income from mainland UAE persons (subject to a de minimis rule). Failure on any test moves the entity to the standard 9% regime for the entire tax period.

VAT: 5% standard rate. Mandatory VAT registration above AED 375,000 in annual taxable supplies. Voluntary registration available above AED 187,500. Zero-rated for exports outside the GCC and for international transport.

No personal income tax. No capital gains tax for individuals. No withholding tax on outbound dividends, interest, or royalties to non-residents, regardless of treaty status. No exchange controls.

Mandatory e-invoicing (the Electronic Invoicing System — EIS) is being rolled out through 2026 for B2B and B2G transactions. We include EIS setup in our accounting packages.

The UAE has more than 140 double-tax treaties, including with most EU member states, the UK, US (limited treaty), India, China, all Gulf states, most of Africa, and most of Latin America.

Banking for UAE Companies

UAE business banking has both the strongest traditional Gulf banks and a growing digital-bank tier. The market is split into three.

Traditional UAE banks include Emirates NBD, First Abu Dhabi Bank (FAB), Abu Dhabi Commercial Bank (ADCB), Mashreq, Dubai Islamic Bank, and Commercial Bank of Dubai. These remain the standard choice for established businesses needing trade finance, letters of credit, working-capital facilities, or escrow services. They typically require an Ejari or free-zone lease, full physical KYC of the resident shareholder/director, an Emirates ID for the principal signatory, and minimum-balance commitments — typically AED 50,000 to AED 200,000 depending on the bank and account type. Account opening takes 2 to 6 weeks.

Wio Business is the leading UAE-based digital bank for new companies. Founded in 2022, supported by ADQ and ADIB. Fully app-based, fast onboarding (often 5 to 10 days), zero-balance accounts available, integrated invoicing and accounting tools. Wio is the right first introduction for most cf24 clients with a free-zone setup and a smaller initial banking footprint.

International EMIs — Wise Business and Karbon — work for some UAE-incorporated companies depending on activity and beneficial-owner profile. Useful as a secondary multi-currency account paired with a UAE primary bank, particularly for cross-border invoicing and FX-sensitive payment flows.

For mainland LLCs needing trade finance or LCs, we lead with FAB or Emirates NBD. For free-zone structures focused on services, SaaS, consulting, or e-commerce, Wio or Mashreq's Neo Biz offering are typically the fastest path to operational banking.

Nominee Director Services in the UAE

The UAE permits nominee directors and shareholders, particularly in offshore structures (RAK ICC and JAFZA Offshore), where confidentiality of the beneficial owner is preserved on the offshore authority's private register. Mainland and free zone structures also allow nominees but with more public-record exposure.

For free zone and mainland UAE companies, nominee arrangements are subject to the UAE's beneficial owner regulations: every UAE company must declare its ultimate beneficial owners to the licensing authority, who maintain a private register. Public commercial registers do not generally show beneficial ownership in the UAE — only the registered shareholders. A nominee shareholder therefore provides operational privacy at the public-register level but does not exempt the structure from internal beneficial-owner disclosure to the authority and the UAE Ministry of Economy.

Nominee structures must be properly documented with declarations of trust, indemnity agreements, and clear principal-agent arrangements. The UAE legal framework for nominees is well-established and routinely used in legitimate international structuring. We provide nominee director and shareholder services where the structure is KYC-compliant, properly disclosed to UAE authorities, and used for legitimate confidentiality or governance purposes — not for evading sanctions, tax obligations, or beneficial-ownership disclosure to regulators.

Frequently Asked Questions

What's the difference between mainland and free zone in the UAE?

A mainland LLC is licensed by the Department of Economic Development of an emirate and can trade freely throughout the UAE, including directly with UAE customers, government, and across all sectors. A free zone company is licensed by one of 50+ free zone authorities and benefits from 100% foreign ownership and potential 0% corporate tax (for QFZPs), but cannot generally invoice mainland UAE customers directly without a distributor. Both allow 100% foreign ownership since the 2021 reforms.

How long does it take to form a UAE company?

A free zone company is typically licensed within 5 to 7 working days of a clean filing, with the bank account opening adding another 2 to 6 weeks. A mainland LLC takes 2 to 4 weeks for the trade licence and another 4 to 6 weeks for visa stamping, Emirates ID issuance, and bank account opening. End-to-end, expect 2 to 4 weeks for free zone and 5 to 9 weeks for a mainland LLC.

What is the corporate tax rate in the UAE?

The corporate tax rate is 9% on taxable profits above AED 375,000 per year. Profits below AED 375,000 are taxed at 0%. Small Business Relief provides 0% corporate tax for companies with revenue at or below AED 3 million per year, available through tax periods ending on or before 31 December 2026. Free zone companies qualifying as Qualifying Free Zone Persons (QFZPs) pay 0% on Qualifying Income, subject to economic substance and qualifying-activity tests.

Can a non-resident own 100% of a UAE company?

Yes. Free zone companies have always permitted 100% foreign ownership. Since the 2021 reforms to the Commercial Companies Law, mainland LLCs in over 1,000 commercial activities also permit 100% foreign ownership — no UAE national sponsor required. Some strategic activities (security, certain media, oil and gas) remain restricted.

Do I need a UAE residency visa to form a company?

No. A non-resident can be a shareholder and director of a UAE company without holding a UAE residency visa. However, opening a corporate bank account at most UAE banks is significantly easier when at least one shareholder or authorised signatory holds a UAE residency visa with an Emirates ID. We arrange investor visas where needed — typically 2 to 4 weeks after trade licence issuance.

Can I open a UAE business bank account from abroad?

Some UAE banks open accounts for fully non-resident-controlled companies, but most require at least one signatory with UAE residency. Wio Business and Mashreq Neo Biz are the most non-resident-friendly options for free-zone structures. Traditional banks (FAB, Emirates NBD, ADCB) typically require physical presence of the principal signatory at a UAE branch and an Emirates ID for the account opening. End-to-end timing for non-resident-controlled accounts ranges from 3 to 8 weeks.

What is QFZP status and how do I qualify?

A Qualifying Free Zone Person is a free zone entity that maintains the 0% corporate tax rate on Qualifying Income. Three tests must be met: adequate economic substance in the UAE (real office, employees, decision-making in the free zone), Qualifying Income only — defined by Cabinet Decisions and limited to transactions with other free zone persons or specified qualifying activities, and no significant non-qualifying income from UAE mainland sources beyond a de minimis threshold. Failure on any test moves the entity to the 9% standard rate for the whole tax period.

Get Started — Form Your UAE Company

A fixed-price quote in 60 seconds. Free zone licence in a week, mainland LLC in 3 to 4 weeks. Bank account introduction included. Investor-visa packages quoted by visa count.

Call +48 2222 5 2222 or email [email protected] to start.

If you need a UAE company faster than a fresh formation timeline, our sister brand offers ready-made UAE companies — already licensed, transferable in days.

Content prepared by Aleksandra Kowalska, Corporate Client Service. Approved by Tomasz Bielski, Managing Director.