Company Setup in the UAE: Mainland, Free Zone and Offshore

Choosing where to register is the decision that shapes everything afterwards: who you can sell to, how many visas you can hold, what your annual compliance costs, and how your Corporate Tax position works out. We set up mainland and free zone companies across the UAE and act as registered agent for offshore structures, so the recommendation you get is based on your activity rather than on whichever licence is easiest to sell.

The three routes compared

Mainland company registration

A mainland licence is issued by the Department of Economy in the relevant emirate and lets you trade across the whole UAE market, take on government work and open branches without restriction.

The ownership rule has changed. Until 2021 a mainland LLC needed a UAE national holding 51% of the shares. Amendments to the Commercial Companies Law removed that requirement for most activities, and foreign investors can now hold 100% of a mainland LLC across more than a thousand commercial, professional and industrial activities on the published positive list. A limited number of activities with strategic impact still require a UAE national partner or additional approvals, and some professional licences require a local service agent who holds no shares and no control. If you set up before 2021 and still have a nominee partner on your licence, the shareholding can usually be amended into your own name.

Free zone company formation

Free zones suit businesses trading internationally, providing services, or wanting to start lean. Ownership is fully foreign, setup is quicker than mainland, and costs start lower because a flexi desk satisfies the office requirement. Goods entering a free zone are not subject to customs duty until they cross into the mainland market, which is why re-export businesses favour them.

The zones differ in ways that matter: licence cost, visa quota, permitted activities, whether audited accounts must be filed, and how strict the banks are about the zone. We match the zone to your activity rather than defaulting to one.

Offshore companies

An offshore company is a holding and asset-protection structure. It cannot trade inside the UAE, lease UAE premises, hire staff locally or sponsor residence visas, and anyone told otherwise has been mis-sold. It is the right tool for holding shares, property or intellectual property, and for international trade conducted outside the UAE.

What drives the cost

• The licensing authority and, for free zones, which zone
• Your activity list, and whether any activity needs external approval
• Number of residence visas required
• Office type, from flexi desk to leased premises
• Share capital requirements, where the authority sets one
• Whether shareholders are individuals or corporate entities, since corporate shareholders need attested documents

We quote the full first-year cost, including government fees, rather than a headline licence figure with the rest added later.

What happens after the licence is issued

The licence is the start of the obligations, not the end of them. Every UAE company must register for Corporate Tax and file a return within nine months of its financial year end. VAT registration becomes mandatory once taxable supplies pass AED 375,000. Proper books have to be maintained throughout the year, and most free zones require audited financial statements before they will renew the licence. We handle all of it, which is why our setup advice tends to be more conservative than a licence broker’s.

Frequently asked questions

Do I still need a local partner for a mainland company?

Not for most activities. Since the 2021 amendments to the Commercial Companies Law, foreign investors can hold 100% of a mainland LLC across the activities on the positive list. Only a limited set of strategic activities still require a UAE national partner, and some professional licences need a local service agent who holds no equity.

How long does company registration take?

Three to ten working days for the licence itself once documents are complete. Residence visas add one to three weeks, and bank account opening is the longest step because it depends on the bank’s compliance review rather than on us.

Can I open a UAE bank account with a free zone company?

Yes, though banks apply more scrutiny to some zones than others. We prepare the application file and tell you honestly before you choose a jurisdiction if it is likely to create a banking problem.

Which is cheaper, mainland or free zone?

A free zone licence is usually cheaper to start, particularly with a flexi desk. Mainland becomes competitive once you need several visas or a physical office, and it is the only option if you must sell directly into the UAE market.

Can I convert my existing licence later?

You cannot convert a free zone company into a mainland one directly. The usual route is to register a new mainland entity and transfer the business across, or open a mainland branch of the free zone company. We plan the sequence so there is no gap in trading or visas.