Business establishment in the UAE
Where can your business be licensed?
7 mainland authorities, 39 free zones and 3 offshore registrars, with different activity lists, ownership rules and approvals. Start from what you will do.
Operating models
How you can hold and run a business in the UAE. Most groups combine two or more.
| Model | Where | Ownership | Market access | Premises | Usually fits |
|---|---|---|---|---|---|
| Mainland LLC | Any emirate’s economic department | 100% foreign ownership for most activities. Strategic-impact activities (Cabinet Resolution 55 of 2021) still carry conditions. | Trade anywhere in the UAE, with government contracts open to you. | Physical premises with a registered lease (e.g. Ejari in Dubai) needed in most cases. | Retail, restaurants, contracting, local services, anyone selling directly to UAE customers or government. |
| Sole establishment / civil company | Mainland economic departments | Single owner (sole establishment) or professional partners (civil company). Owner carries unlimited liability. | Full UAE market for the licensed activity. | Premises required; some emirates allow home-based or shared-office variants. | Professionals, consultants, craftsmen and small owner-run businesses. |
| Branch of a foreign or UAE company | Mainland economic departments, or a free zone | Wholly owned by the parent; no separate legal personality. | Limited to the parent’s activities. | Premises required. | Established companies testing the UAE without a new entity. |
| Free zone company (FZE / FZ-LLC / FZCO) | Any of the 40+ free zones | 100% foreign ownership by design. | Inside the zone and abroad. Selling onshore needs a distributor, a mainland branch or (in Dubai) a DET permit. | Flexi-desk to warehouse, depending on the package and visa quota. | Exporters, regional HQs, consultants, e-commerce, tech, industry in zone facilities. |
| Free zone + mainland access | Dubai: DET branch licence or operating permit; DMCC and d3 dual licences; other emirates via a mainland branch | Keeps the free zone entity; adds onshore rights. | Onshore trade within the permit’s scope. Mainland income must be tracked separately for tax. | Depends on route; some permits need no new premises. | Free zone companies that won mainland customers. |
| Financial free zone entity (DIFC / ADGM) | DIFC (Dubai) or ADGM (Abu Dhabi) | 100% foreign ownership; common-law courts and own regulators (DFSA, FSRA). | Financial services under licence; non-financial firms and holding vehicles also welcome. | Premises within the centre, scaled to the licence. | Funds, fintech, family offices, holding companies, foundations. |
| Offshore company | RAK ICC, JAFZA Offshore, Ajman Offshore | 100% foreign ownership. | No trading inside the UAE; no visas. | Registered agent address only. | Holding shares, IP, property or international contracts. |
| Freelance permit / e-trader / home business | Free zone freelance permits; Dubai e-Trader; home-based licences in several emirates | Individual. | Limited activity list; often online or individual services. | None or home-based. | Solo professionals, creators and online sellers starting small. |
Indicative guide checked against public sources in November 2026. Authorities change activity lists, fees and rules often, and each zone’s list differs in detail. We confirm every activity and approval with the authority before you commit.
UAE set-up questions
What is the difference between a mainland and a free zone company in the UAE?
A mainland company is licensed by the economic department of an emirate and can trade anywhere in the UAE, including with government. A free zone company is licensed by a free zone authority, is fully foreign owned by design, and trades inside its zone and internationally; selling onshore needs a distributor, a mainland branch or, in Dubai, a DET permit.
Can a foreign investor own 100% of a UAE mainland company?
Yes, for most commercial and industrial activities since the 2021 amendments to the Commercial Companies Law. Activities with a strategic impact under Cabinet Resolution No. 55 of 2021, such as security, banking and exchange, and some fisheries services, still carry ownership conditions or extra approvals.
Can a Dubai free zone company do business on the mainland?
Yes. Executive Council Resolution No. 11 of 2025 lets Dubai free zone companies, except DIFC financial firms, operate in mainland Dubai through a DET branch licence or an operating permit. Mainland income must be recorded separately and is taxed at the standard corporate tax rate.
How many free zones are there in the UAE?
There are more than 40 free zones across the seven emirates. Dubai has the most. This guide lists 39 of the most used zones with their focus sectors.
What taxes does a UAE company pay?
Corporate tax is 9% on taxable profit above AED 375,000. A qualifying free zone person can pay 0% on qualifying income. VAT is 5%, with mandatory registration once taxable supplies pass AED 375,000 a year.
Not sure which route fits?
Send us your activities and where your customers are. We will come back with a jurisdiction comparison and the approvals you need.