Country guide

Company Formation in the UAE: Mainland or Free Zone

Since 2021, a foreign investor can fully own a company on the UAE mainland in most activities, without an Emirati partner or local service agent. You can also establish in a free zone if it suits your activity. We help you choose between the two routes based on your customers and activity.

Office Services

A service followed up by our office team

The service scope and price are confirmed in a written quote after reviewing the activity, country, and documents. VAT applies where applicable and government fees are separate.

Who can own?

  • Federal Decree-Law No. 26 of 2020, followed by Federal Decree-Law No. 32 of 2021 on Commercial Companies, removed the 51% Emirati-partner requirement and the Emirati service-agent requirement for foreign company branches.
  • Strategic-impact activities such as security, defence, banking, insurance and telecommunications require regulatory approval and may set a citizen participation percentage. Cabinet Resolution No. 55 of 2021 identifies them; the regulator issues its decision within no more than 14 working days from a complete application.

Common entities

  • Mainland limited liability company
  • One-person company
  • Foreign company branch
  • Free-zone company (each zone has its own licensing authority and rules)

Steps

  1. Choose the activity, emirate and licensing body: the emirate’s economic development department.
  2. Reserve the trade name and obtain initial approval.
  3. Prepare the articles of association and lease or premises agreement.
  4. Issue the commercial licence, then complete tax, visa and bank registrations.

Documents and legalisation

  • For individuals: passport and sometimes residence permit.
  • For foreign corporate partners: certificate of incorporation, articles of association, and shareholder or board resolution, legalised in the issuing country and by the relevant UAE bodies, with Arabic translation where the licensing body requires it.
  • The legalisation route varies by country and is identified for each file.

Typical timing

  • Timing differs by emirate, activity and document readiness.
  • Strategic-impact activities have the regulator’s maximum 14-working-day period after a complete application.

After formation

  • Corporate tax is 9% on taxable income above AED 375,000, and VAT registration follows the size of taxable supplies.
  • Investor and employee visas and bank-account opening.

Frequently asked questions

Do I need an Emirati partner?

No, for most mainland activities. Strategic-impact activities identified by the regulator are the exception.

Which is better: mainland or free zone?

Mainland is for direct dealings with customers inside the UAE. A free zone suits certain activities and international dealings. We compare them for your activity.

Can I run my UAE company while I am in Saudi Arabia?

Yes, some steps can be completed under a power of attorney. Bank-account opening and residence procedures usually need your attendance.

Request a written quote

Send your activity and target country, and we will set out the steps and documents in the written quote for your case.

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Official sources

Last updated: October 2026

Information is general guidance based on the official sources listed and is confirmed in the written quote for your case.

Information on this site is general guidance based on published official sources and does not replace your written quote. Government fees and final decisions rest with the authorities.