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The UAE remains one of the most accessible places in the world for a foreign entrepreneur to own and run a company outright. This guide explains what changed in the ownership rules, how mainland, free zone and offshore structures compare, what a business setup consultant actually does for their fee, and how to budget for the real cost of getting licensed, visa-ready and banked in 2026.
Yes. Under the UAE Commercial Companies Law as amended by Federal Decree-Law No. 32 of 2021, foreign investors can own 100% of most mainland companies without an Emirati partner or local service agent. Free zone companies have always permitted full foreign ownership. A short list of activities considered to have security, political or economic significance still requires Emirati shareholding or is restricted to UAE nationals.
Before the 2021 amendment, most mainland limited liability companies needed a UAE national to hold at least 51% of the shares, or a local service agent for professional licenses. The amendment removed the default nationality requirement for commercial and industrial activities. Each emirate's Department of Economic Development then published a positive list of activities eligible for 100% foreign ownership, and DED authorities confirm eligibility activity by activity at the licensing stage.
Because eligibility is decided per activity and per emirate, the same business line can be fully foreign owned in one emirate and still require a local partner in another. A consultant checks this against the current DED list before any paperwork starts, so it is worth confirming directly with the relevant DED or your consultant rather than assuming ownership rules are identical everywhere.
Activities the UAE Cabinet classifies as having strategic impact typically continue to require Emirati participation or additional security approvals. These commonly include:
This list is set and updated by federal and emirate-level authorities, so it should always be verified against the current DED or free zone activity list at the time of application rather than relied on from an older source.
A licensed consultant is not just a paperwork filer. Their value is knowing which jurisdiction, activity code and structure will actually get approved on the first submission, and managing the multiple government touchpoints a foreign investor cannot easily navigate remotely.
The right structure depends on where your customers are, whether you need a physical UAE office, and how you plan to move money and staff. The three structures are not interchangeable, and switching later usually means starting the licensing process again.
A mainland company is licensed through the emirate's Department of Economic Development and can trade directly with the UAE local market, government entities and other mainland companies without restriction. It requires a physical, Ejari-registered office and is subject to UAE corporate tax and Emiratisation rules once thresholds are met.
Free zones are purpose-built jurisdictions, each with its own regulator, fee schedule and permitted activity list, generally organised around a sector such as media, technology, logistics or financial services. Free zone companies enjoy 100% foreign ownership by default and can qualify for 0% corporate tax on qualifying income, but direct trade into the UAE mainland typically requires a distributor, a dual license, or a mainland branch.
Offshore companies, such as those registered in JAFZA Offshore or RAK ICC, are used for holding assets, international trade invoicing or group structuring. They cannot lease UAE office space, sponsor residence visas, or trade within the UAE, and are best suited to investors who do not need to be physically resident in the country.
| Feature | Mainland | Free Zone | Offshore |
|---|---|---|---|
| Foreign ownership | 100% for most activities | 100% | 100% |
| Access to UAE local market | Yes, direct access | Limited, needs a distributor or mainland branch for onshore trade | Not permitted, for international structuring only |
| Physical office requirement | Mandatory, Ejari-registered | Flexi-desk or office, varies by zone | Not required |
| Corporate tax treatment | 9% above AED 375,000 profit | 0% on qualifying income if conditions are met, 9% otherwise | Generally outside UAE corporate tax scope if no UAE-sourced income |
| Typical government setup cost | AED 15,000 to 50,000+ | AED 12,000 to 40,000+ | AED 8,000 to 20,000+ |
| Employee/investor visas | Based on office size and activity | Package-based, limited by zone quota | Not eligible |
Most free zones and some banks request a short business plan covering the activity, projected revenue, and hiring plan, particularly for licenses tied to visa quotas or for bank account opening.
These are issued by the DED or free zone once Steps 3 and 4 above are complete, and are needed to proceed to lease registration and license issuance.
Government and free zone fees change periodically and vary by activity, number of visas, and office type, so treat the figures below as an indicative starting range to budget against, and always request a written, itemised quotation before signing anything.
| Cost component | Indicative range (AED) |
|---|---|
| License fee (single activity, flexi-desk package) | 12,000 - 25,000 |
| License fee with multiple activities or dedicated office | 25,000 - 50,000+ |
| Per-visa cost (entry permit, medical, Emirates ID, stamping) | 3,500 - 7,500 |
| Cost component | Indicative range (AED) |
|---|---|
| DED license fee (standard commercial activity) | 15,000 - 30,000 |
| Professional or regulated activity license | 20,000 - 50,000+ |
| Ejari office registration (varies widely by size and location) | 10,000 - 60,000+ |
UAE corporate tax applies at 0% on taxable income up to AED 375,000 and 9% on taxable income above that threshold, for financial years starting on or after 1 June 2023. Businesses below the threshold still generally need to register with the Federal Tax Authority even if no tax is due.
Value Added Tax is charged at a standard rate of 5% on most goods and services. Registration is mandatory once taxable supplies and imports exceed AED 375,000 in the preceding 12 months, and voluntary from AED 187,500.
The UAE does not levy personal income tax on salaries, dividends or capital gains for individuals, which is separate from the corporate tax a company pays on its profits.
A free zone company that meets the conditions to be a Qualifying Free Zone Person, including earning qualifying income, maintaining adequate substance in the UAE, and meeting a de minimis limit on non-qualifying revenue, can apply a 0% corporate tax rate on that qualifying income. Income that falls outside the qualifying categories is taxed at the standard 9% rate. These conditions are set by the Federal Tax Authority and should be reviewed with a tax advisor for the specific free zone and activity involved.
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