Setting up a UAE company
The licence is the easy part. Whether the company actually works turns on the free zone choice, genuine substance, and a bank that will open the account.
The concepts this turns on
Follow the chain in order, or open any term for the full definition and its legal basis.
- 01Free Zone CompanyStructure
A company incorporated within a designated UAE economic zone that permits full foreign ownership and operates under the zone’s own licensing regime. Free zone entities are a common route for non-residents establishing a UAE presence.
- 02Mainland CompanyStructure
A UAE company licensed by an emirate’s Department of Economic Development to trade directly in the local market, rather than within a free zone. Since 2021 most mainland activities allow full foreign ownership.
- 03
A UAE free zone entity that meets the conditions to benefit from a 0% corporate tax rate on its qualifying income. Keeping that status depends on adequate substance, audited accounts, and staying within the qualifying activity rules.
- 04UAE Corporate TaxTax charge
The federal corporate tax the UAE introduced in 2023, applying to business profits with a standard rate, a small-business relief for lower turnovers, and a zero rate on qualifying free zone income. An in-scope company must register and file a return even when no tax is payable.
- 05Economic SubstanceLegal test
The requirement that an entity claiming to be resident or active in a jurisdiction has genuine operations there, such as staff, premises, and decision-making, rather than existing only on paper. Substance rules determine whether a structure is respected for tax purposes.
- 06Registered OfficeObligation
The official statutory address of a company, used for legal correspondence from the registrar, tax authority, and courts. It must be a genuine address in the jurisdiction of incorporation where documents can be delivered and acknowledged.
- 07
The natural person who ultimately owns or controls an entity, however many layers of ownership sit in between. Identifying the UBO is a core requirement of anti-money-laundering and corporate transparency regimes.
Other situations
Is this your situation?
A director will review your enquiry and respond to scope the work and next steps.