Mainland or free zone
The first decision is jurisdictional. A mainland company is licensed by the emirate's economic department and may trade directly across the UAE market and contract with government entities. A free zone company is licensed by its zone authority and is generally confined to activity within the zone and internationally, unless it appoints a mainland distributor or opens a mainland branch.
Foreign ownership
Mainland companies are governed by the Commercial Companies Law. For most commercial and industrial activities, 100% foreign ownership is now permitted — the former requirement for a 51% UAE-national shareholder has been removed for those activities.
Federal Decree-Law No. 32 of 2021 on Commercial Companies, as amended by Federal Decree-Law No. 20 of 2025. Article 10 preserves a carve-out for activities of strategic impact, where the Cabinet may impose UAE-national participation or specific conditions.
Free zones have always permitted full foreign ownership within the zone. The 2025 amendment also clarified that the Commercial Companies Law reaches the mainland operations of a free zone company — for example, a branch or representative office operating outside its zone.
What the process involves
- Selecting the jurisdiction and licence category against your actual activity
- Reserving the trade name and securing initial approval
- Drafting the memorandum of association and corporate documents
- Securing the licence, establishment card and, where required, premises
- Residence visas for shareholders, staff and dependents
- Corporate bank account and tax registration
Tax registration is not optional
Every UAE company must register for Corporate Tax, including free zone companies and including those expecting a 0% outcome. A free zone company applies 0% only where it meets every condition of the Qualifying Free Zone Person regime.
Federal Decree-Law No. 47 of 2022 on the Taxation of Corporations and Businesses. Registration is mandatory; the standard rate is 0% up to AED 375,000 of taxable income and 9% above.
How we work
We advise on the structure before any filing — jurisdiction, ownership, tax position and banking — then handle formation end to end. You work with a licensed legal and tax advisory firm, not a formation agent.
This page is general legal information current to 2026, not legal advice, and does not create a lawyer–client relationship. Legislation and its application change; the position for a specific activity or structure must be confirmed on advice. AMAAN PRO – FZCO is licensed in the UAE for Corporate Service Provider, Management Consultancy and Tax Consultancy activities.