Set up a company in the UAE, mainland or free zone, with one partner.
The UAE offers a genuinely attractive base for regional and global business, but the first real decision — mainland or free zone — shapes everything that follows: where you can trade, who can own the company, and how it is taxed.
Structures
Mainland or free zone
Ownership
100% foreign ownership
Core taxes
Corporate Tax & VAT
Choosing wrong is expensive to reverse. We help you decide, then set it up and keep it compliant.
Our role
United Arab Emirates
A market that’s easy to enter stays easy to keep in good standing
Entity setup and registrations
Banking
Compliance
Tax rates, thresholds and licensing requirements in the UAE change and vary by emirate, free zone and activity. Treat the figures above as a starting point — we confirm the current position with you before anything is filed.
Mainland or free zone
This choice shapes where you can trade, who can own the company, and how it’s taxed — get it right before anything else is filed.
Consideration | Mainland | Free zone |
|---|---|---|
Where you can trade | Across the UAE market directly, and on government contracts | Primarily within the free zone and internationally; onshore trade may need a local agent or distributor |
Ownership | Full foreign ownership now permitted for most activities | Full foreign ownership |
Best suited to | Businesses serving the local UAE market directly | Regional HQs, holding structures, services and trading businesses |
Setup | Licensed through the relevant emirate’s authority | Licensed and registered through the specific free-zone authority |
Beyond the licence
Trade licence
Issued by the relevant mainland or free-zone authority, plus registration of the entity.
Corporate tax
Registration under the UAE’s federal corporate tax regime, with attention to free-zone entities and qualifying income.
VAT registration
Required once turnover crosses the threshold, then periodic VAT returns.
Bank Accounts
UAE banks apply heavy diligence to new entities — our preparation and relationships materially improve the odds.
Ongoing accounting
Bookkeeping, economic-substance considerations, and the recurring filings each authority requires.
FAQs
United Arab Emirates
Frequently asked questions
Still have a question about setting up here? Talk to an expert
How do I choose between a UAE Free Zone, Mainland, or DIFC/ADGM financial hub?
The right jurisdiction depends on your business model, target clients, and regulatory needs: • Mainland: Ideal for companies trading directly with the UAE domestic market or bidding on local government contracts. • Free Zone (e.g., IFZA, Fujairah Creative Tower): Best for 100% foreign-owned trading, consultancy, or regional holding entities operating internationally. • DIFC / ADGM: Specialist common-law financial free zones designed for fund managers, financial institutions, private equity, and family offices.
Can a foreign fund manager operate in the DIFC without holding a direct DFSA license?
Yes. Under DFSA regulations, an External Fund Manager from a recognized jurisdiction can establish and manage a domestic DIFC fund without obtaining a direct DFSA license, provided they appoint a DFSA-licensed Fund Administrator like Spera to act as their local regulatory agent. Spera handles regulatory liaison, Maintains the unitholder register, and manages ongoing compliance, giving you a faster, cost-effective entry into GCC capital markets.
What are the UAE Corporate Tax requirements for new businesses?
All UAE entities, including Mainland, Free Zone, and Financial Hub companies must register for UAE Corporate Tax with the Federal Tax Authority (FTA): • Mainland & Standard Entities: Taxed at 0% on taxable income up to AED 375,000 and 9% on income exceeding AED 375,000. • Qualifying Free Zone Persons (QFZP): Eligible Free Zone entities can benefit from a 0% Corporate Tax rate on "Qualifying Income," provided they satisfy local substance requirements, transfer pricing rules, and file annual returns with audited financial statements.
How long does it take to set up a company and open a business bank account in the UAE?
Incorporating a Free Zone or Mainland entity typically takes 1 to 2 weeks. However, corporate bank account opening in the UAE requires stringent AML/KYC checks and substance verification, which can take between 4 to 8 weeks. Spera accelerates this process by preparing bank-ready compliance dossiers and introducing your entity directly to our local partner banking institutions.
What ongoing corporate secretarial and tax filing obligations will my UAE company have?
To remain in good standing in the UAE, your business must fulfill annual statutory compliance obligations: • Corporate Tax & VAT: Annual Corporate Tax returns filed within 9 months of financial year-end, plus periodic VAT returns if taxable turnover exceeds AED 375,000. • Ultimate Beneficial Ownership (UBO): Maintaining updated UBO registers filed with local licensing authorities. • Economic Substance Regulations (ESR) & Licensing: Annual trade license renewals, local registered agent requirements, and statutory accounting.