Company Setup Services in UAE
Company Setup Services in UAE: Mainland & Free Zone, 100% Foreign-Owned
Last updated: August 2026
Can Foreigners Own 100% of a Company in the UAE?
Yes. Since Federal Decree-Law No. 32 of 2021 on Commercial Companies took effect in January 2022 (as amended by Federal Decree-Law No. 20 of 2025), foreign investors can hold 100% ownership of most UAE mainland companies, without a UAE national shareholder or local sponsor. This replaced the previous requirement that UAE nationals hold at least 51% of a mainland LLC.
A limited list of activities considered to have “strategic impact”, including security, defence, banking, insurance and certain oil and gas activities, may still require Emirati participation or Cabinet-level approval. Some professional licences still require a UAE national to act as a non-equity Local Service Agent.
Earlier marketing material describing free zones as offering “no corporate tax for 50 years” predates the UAE’s federal corporate tax (2023), see the tax section below before using that line again.
Related: legal services in the UAE, accounting, payroll and corporate tax support in the UAE and PRO services in the UAE. View all business services in the UAE or book a consultation with our team.
UAE Company Structures
Mainland Company
A mainland company is established and licensed through the competent authority in the relevant emirate. An LLC is one of the most commonly used structures for commercial businesses. 100% foreign ownership is permitted for many mainland activities, meaning a UAE national shareholder is no longer generally required, though activities classified as having strategic impact and certain regulated sectors can be subject to specific ownership, licensing or approval requirements. A mainland structure is often suitable for companies that want to build a substantial operational presence and conduct business throughout the UAE.
Free Zone Company
The UAE has numerous free zones, each established for particular commercial, industrial, financial, technology, logistics or other activities. Free-zone companies generally allow 100% foreign ownership and can provide streamlined establishment procedures and sector-specific business ecosystems. The rules differ considerably between free zones, so the right one should be selected according to the company’s activity, customers, office and visa requirements, import/export needs and intended access to the UAE mainland market.
Branch of a Foreign Company
An established foreign company can also enter the UAE through a branch, subject to the requirements applicable to its activity and jurisdiction. Unlike a subsidiary, a branch is an extension of the foreign parent company rather than a separately owned company, attractive to international companies that want to operate under their existing corporate identity rather than establish a new UAE subsidiary.
Joint Venture
Foreign and UAE businesses can establish joint ventures for long-term business activities, specific investments or individual projects. A joint venture can be structured through an incorporated company, with the partners holding shares in the UAE entity, or, where appropriate, through contractual joint-venture or consortium arrangements. The appropriate structure depends on the project, activity, liability allocation, ownership requirements and licensing framework; a joint venture is typically structured within a mainland or, where permitted, free-zone setup rather than constituting a separate jurisdiction by itself.
Other Company Structures
Depending on the activity, emirate and regulatory framework, other structures may also be available, including private and public joint-stock companies, holding structures, partnerships and specialised entities.
Licence Types
- Trading Licence: for companies trading physical products
- Service Licence: for consultancy and other pure services
- Industrial Licence: for manufacturing and industrial activities
Mainland vs Free Zone
Mainland LLC
up to 100% foreign ownership for most activities, no restriction on office location, and the only structure that lets you trade directly with the UAE mainland market and bid for government contracts.
Free Zone company (FZCO/FZE)
100% foreign ownership, 100% repatriation of capital and profits, no personal income tax, and streamlined setup, but generally restricted from trading directly with the mainland without additional arrangements.
UAE Corporate Tax: What Actually Applies
Since Federal Decree-Law No. 47 of 2022, financial years starting on or after 1 June 2023 are subject to UAE federal corporate tax. Mainland companies pay 0% up to AED 375,000 of taxable income and 9% above it; businesses under AED 3 million revenue may elect Small Business Relief for 0% (currently legislated through 31 December 2026). Free zone companies only get the 0% rate on “Qualifying Income” if they meet the Qualifying Free Zone Person (QFZP) conditions, non-qualifying income is taxed at 9% regardless of free zone status. VAT at 5% (Federal Decree-Law No. 8 of 2017) applies separately to most goods and services above the mandatory registration threshold.
Which UAE Company Setup Is Right for You?
The best structure depends on what you want to do, where your customers are located, whether you need mainland access, your preferred ownership structure, staffing requirements and tax position. Speak with Meena Business Consultancy Services and we will assess your planned activity and help you determine which UAE company setup is most suitable for your business.
Frequently Asked Questions
Can foreigners own 100% of a company in the UAE?
Yes. Since Federal Decree-Law No. 32 of 2021 took effect in January 2022, foreign investors can hold 100% ownership of most UAE mainland companies and all free zone companies, without a UAE national shareholder or local sponsor.
What is the UAE corporate tax rate?
0% on taxable income up to AED 375,000 and 9% above it. Qualifying Free Zone Persons can receive 0% on qualifying income. VAT at 5% applies separately.
Which licence types exist in the UAE?
Trading, Service and Industrial licences, issued by the relevant mainland authority or free zone depending on the activity.