Setting up in the UAE starts with one big decision: mainland, free zone, or offshore. Each has different ownership, activity, and office rules, so the structure should follow the business plan.
The three routes
Free zones (such as DMCC, IFZA or Meydan) offer 100% foreign ownership, streamlined setup and often no minimum capital, but typically limit you to doing business within the zone or abroad. A mainland company, licensed by the emirate’s economic department, can trade across the UAE — and since the 2021 reform, 100% foreign ownership is allowed for many activities. Offshore companies are used for holding and international structuring, not local trade.
Licence by activity
Your trade licence (commercial, professional or industrial) is tied to the specific activities you list, so getting the activity classification right matters.
Tax
The UAE introduced a federal corporate tax of 9% from June 2023, with thresholds and special rules for free-zone "qualifying income". VAT of 5% applies above the registration threshold.
For foreign founders
Choosing the right zone or the mainland, and the right activity list, has lasting cost and tax consequences. A verified UAE colleague can match the structure to your plan and handle the licensing and visas.
UAE free-zone and tax rules evolve quickly — confirm the current position with admitted UAE counsel.