UAE Company Registration

The United Arab Emirates (UAE) continues to be a prime business hub, bridging the East and the West with its advanced infrastructure, pro-investment policies, and global connectivity. Entrepreneurs and international corporations have multiple pathways for company formation, most notably through Mainland or Free Zone entities. The newly introduced 9% federal corporate tax applies only to profits above AED 375,000, keeping smaller businesses tax-free. Add to this a 0% personal income tax and only 5% VAT on most goods and services, and you have a robust ecosystem that draws in startups, SMEs, and multinational enterprises alike.

Types of Companies

1. Mainland Company

   • Formed under the Department of Economic Development (DED) of the relevant emirate.
   • Allows you to trade anywhere within the UAE and internationally.
   • Requires a UAE national as a local service agent or sponsor if full foreign ownership is not permitted in certain activities (although many sectors now allow 100% foreign ownership).

2. Free Zone Company

   • 100% foreign ownership permitted, no requirement for local sponsors.
   • Designed for specific sectors such as media, technology, logistics, and finance.
   • Usually restricted to operating within the free zone or outside the UAE; local Mainland trade often requires partnering with a distributor or establishing a branch.

3. Offshore Company

   • Formed in jurisdictions like JAFZA Offshore or RAK ICC.
   • Primarily for asset protection, holding structures, or international trade; no local business activity in the UAE Mainland.
   • Beneficial for global tax planning, though does not provide a trade license for operating within the UAE.
     
     

Key Tax Considerations

• Corporate Income Tax:
  
  • 9% rate on taxable profits exceeding AED 375,000 per financial year.
  • 0% on taxable profits up to AED 375,000, supporting small businesses and startups.
• Value Added Tax (VAT): 5% on most goods and services within the UAE.
• No Personal Income Tax: Both residents and non-residents enjoy 0% tax on personal salaries or wages.
• Free Zone Tax Benefits: Many free zones offer corporate tax holidays or exemptions; however, these must be reviewed alongside new federal corporate tax rules to ensure compliance.
  
  

Registration Process and Requirements

1. Choose Mainland or Free Zone: Decide based on business activities, ownership preferences, and operational scope.
2. Trade Name Reservation: Submit preferred company names for approval to the relevant authority (DED for Mainland or respective free zone authority).
3. Initial Approval and Documentation:
   
   • Draft Memorandum of Association (MOA) or Articles of Association as required.
   • Provide shareholder IDs, passports, and other relevant paperwork.
4. Office Space and License Application:
   
   • Mainland companies must rent a physical office within the emirate.
   • Free Zone entities can often opt for flexi-desk or virtual office solutions.
   • Submit the final license application along with lease contracts (if required).
5. Corporate Bank Account Setup:
   
   • Obtain the necessary incorporation documents and license before opening a local business account.
6. Visa and Immigration:
   
   • Mainland and Free Zone companies can sponsor employee and investor visas.
   • Comply with medical tests, Emirates ID applications, and other immigration formalities.
     
     

Why the UAE?

• Strategic Global Hub: Convenient flight connections, world-class ports, and a central location between Europe, Asia, and Africa.
• Business-Friendly Environment: Streamlined registration, minimal bureaucracy, and efficient government eServices.
• Financial and Legal Stability: Mature banking sector, transparent regulations, and specialized courts (e.g., DIFC Courts) for commercial disputes.
• Skilled Multinational Workforce: Highly diverse talent pool across various industries.
• Lifestyle and Infrastructure: Modern amenities, safety, and attractive living conditions for expats and their families.
  
  

Ongoing Compliance

• Annual License Renewal: Both Mainland and Free Zone companies must renew their licenses yearly.
• Corporate Tax Filing: For entities that exceed AED 375,000 profit, file annual returns and pay the 9% corporate tax.
• VAT Returns: Quarterly or monthly filings, depending on turnover, to the Federal Tax Authority (FTA).
• Accounting and Audit:
  
  • Some Free Zones require annual audits; Mainland can have auditing requirements depending on business activity.
  • Maintain transparent financial records and bookkeeping in line with UAE regulations.
• Employment and Immigration Rules: Keep employee visas and labor contracts current, adhering to UAE labor laws.
  
  

Why Work With Us?
Our specialists guide you through every step—whether it’s selecting the ideal free zone, understanding Mainland ownership rules, or navigating the new federal corporate tax. We handle trade name approvals, documentation, license applications, and ongoing compliance so you can focus on growing your enterprise. Leverage the UAE’s unmatched connectivity, forward-thinking policies, and pro-business climate to accelerate success across the Gulf region and beyond.