Expert Guide
UAE Company Formation for Foreign Entrepreneurs
By Alena Makhnovskaya, Co-Founder · Head of Advisory, OmniTrust AE · Reviewed by Sergey Stepanov, Lead Co-Founder · Published 21 September 2026 · Updated 21 September 2026
Foreign entrepreneurs can own 100% of a UAE company in both Free Zone and (for most activities) Mainland structures — no local sponsor is required. The main decision is Free Zone (from AED 12,900, 3–4 business days, no mandatory office) versus Mainland (from AED 24,000, 1–3 weeks, DED/DET licensing, physical office required). Corporate tax is 9% on profit above AED 375,000/year and 0% below that threshold, with VAT at 5%.
Updated: 21 September 2026100% Foreign Ownership
Both Free Zone companies and most Mainland business activities allow 100% foreign ownership — a local UAE sponsor is not required for the large majority of activities under current regulations.
Choosing Your Structure
Free Zone registration (e.g. IFZA) starts from AED 12,900 and is typically completed in 3–4 business days, with no mandatory physical office for many packages. Mainland registration starts from AED 24,000, typically takes 1–3 weeks through the DED/DET, requires a physical office, and allows unrestricted trading across the UAE. See our full comparison: Free Zone vs Mainland.
Formation Process
- 1
Choosing jurisdiction and activity
We help select the Free Zone or Mainland structure and licence activity that matches your business.
- 2
Preparing documents
We prepare the incorporation documents and agree the company name and activity.
- 3
Submitting the application
We file the registration application with the relevant authority on the client's behalf.
- 4
Receiving the licence
The client receives the finished company with its trade licence and incorporation documents.
Tax Considerations
Since June 2023, the UAE applies a 9% federal corporate tax on profit above AED 375,000 per year; profit below that threshold is taxed at 0%. Free Zone companies meeting the Qualifying Free Zone Person conditions may retain a 0% rate on qualifying income. VAT is 5% and applies depending on the business activity. Last checked: September 2026 — confirm your specific tax position with a tax adviser. See Corporate Banking once your company is formed.
After Formation: Opening a Bank Account
Once the company is registered, the next step is usually opening a corporate bank account. Fast-track cases may start from approximately 5–6 business days; standard cases typically take around 2–4 weeks. See our combined Company Formation + Bank Account process if you want to start both at once.
Official Sources
- UAE Ministry of Economy — company registration and investment regulation
- Federal Tax Authority — Corporate Tax and VAT information
- Dubai Department of Economy and Tourism — Mainland licensing authority
Frequently Asked Questions
Company Formation FAQ
No, both Free Zone companies and most Mainland business activities allow 100% foreign ownership under current regulations.
Free Zone packages start from AED 12,900; Mainland licensing starts from AED 24,000. The exact cost depends on the activity and required visa count.
Free Zone formation typically takes 3–4 business days; Mainland formation typically takes 1–3 weeks.
Many Free Zone registrations, including IFZA, can be completed fully online without an in-person visit. Mainland formation requirements vary by activity — we confirm this individually.
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Company Formation in Dubai
Learn more →IFZA Company Formation
Learn more →Dubai Mainland Company Formation
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