The UAE has become one of the world’s most attractive destinations for entrepreneurs and international businesses. With 100% foreign ownership, low taxes, strong banking, and global credibility, UAE company formation is a smart choice for startups, freelancers, and established businesses.
In this guide, we explain the two most popular options: Mainland and Free Zone companies, so that you can choose the right structure for your business.
Types of Company Formation in the UAE:
There are three main business structures in the UAE:
- Mainland Company
- Free Zone Company
- Offshore Company
This blog focuses on the Mainland vs Free Zone, as they are the most commonly used.
What Is a Mainland Company in the UAE?
A Mainland company is registered with the Department of Economic Development (DED) of a UAE emirate such as Dubai, Abu Dhabi, or Sharjah.
Key Features of Mainland Companies:
- 100% foreign ownership allowed for most activities
- Freedom to do business anywhere in the UAE
- Ability to work with government and local clients
- No restriction on the number of visas (subject to office size)
- Physical office address required
Best For:
- Trading businesses
- Service providers
- Retail shops and restaurants
- Companies targeting the UAE local market
What Is a Free Zone Company in the UAE?
A Free Zone company is registered within a designated Free Zone area and regulated by that Free Zone authority.
Key Features of Free Zone Companies:
- 100% foreign ownership
- 0% personal income tax
- 9% corporate tax only if profits exceed AED 375,000
- No customs duty for intra–Free Zone trade
- Business activities limited to the Free Zone or international markets
Best For:
- E‑commerce businesses
- Consultants and freelancers
- IT, media, and digital services
- International trading companies
Mainland vs Free Zone: Quick Comparison
| Feature | Mainland | Free Zone |
|---|---|---|
| Market Access | Anywhere in the UAE | Free Zone & International |
| Government Contracts | Allowed | Not Allowed |
| Office Requirement | Mandatory | Flexi-desk allowed |
| Visa Limit | Flexible | Limited |
| Ownership | 100% Foreign | 100% Foreign |
Taxation in the UAE
- No personal income tax
- Corporate tax is 9% only on profits above AED 375,000
- VAT is 5% (if applicable)
This makes the UAE one of the most tax‑efficient countries for businesses.
Can You Register a UAE Company Without Visiting?
Yes. In many cases, UAE company formation can be completed remotely, depending on business activity and jurisdiction. Documentation and verification can be handled online with professional assistance.
Why Choose Corpulate for UAE Company Formation?
Corpulate provides end‑to‑end UAE business setup services, including:
- Mainland and Free Zone registration
- Trade license assistance
- Bank account support
- Tax and compliance guidance
- Ongoing business support
We simplify the process so you can focus on growing your business.
Final Thoughts:
Choosing between a Mainland or Free Zone company in the UAE depends on your business goals, target market, and operational needs. Both structures offer strong benefits, global credibility, and tax efficiency.
If you are planning company formation in the UAE, professional guidance can save time, cost, and compliance issues.
Contact Us:
FAQ’s:
Yes. Foreign investors can own 100% of a UAE company in most business activities, both in Mainland and Free Zone jurisdictions, without requiring a local sponsor.
A Mainland company can operate anywhere in the UAE and work with government clients, while a Free Zone company is mainly restricted to operating within its Free Zone or internationally.
Yes. The UAE has introduced a 9% corporate tax, but it only applies if your business profits exceed AED 375,000. Businesses below this threshold are exempt.
In many cases, UAE company formation can be completed remotely. However, some activities or banking procedures may require a visit.
Company registration typically takes 3 to 10 working days, depending on the business activity, jurisdiction, and documentation.
Common documents include:
- Passport copy of shareholders
- Visa or entry stamp (if available)
- Business activity details
- Proof of address