02 / STEP BY STEPHow it works, step by step.
Open any step for the detail.
03 / IN DETAILThe detail that matters.
| Feature | Mainland LLC★ Recommended | Free Zone | Offshore |
|---|---|---|---|
| Foreign ownership | 100% | 100% | 100% |
| Trade on UAE mainland | Yes | Via distributor | No |
| Government tenders | Yes | No | No |
| Office required | Yes | Flexi-desk ok | No |
| Corporate tax | 9% over AED 375k | 0% qualifying | 9% if UAE-sourced |
| Setup cost (from) | AED 15,000 | AED 11,900 | AED 12,000 |
The 2021 ownership reform turned the UAE mainland from a partnership requirement into a wholly-owned opportunity for foreign founders.
04 / FROM THE SOURCESWhat the official documents say.
Until 2021, a mainland UAE company normally needed a UAE national to hold 51% of the shares. The 2021 reform to the Commercial Companies Law removed that rule for most activities, so foreign investors can now own 100% of a mainland LLC outright.
A mainland company is licensed by the emirate's Department of Economic Development (DED) — for example Dubai Economy. Unlike a free zone company, a mainland LLC can trade directly anywhere in the UAE, rent offices across the emirate, and bid for federal and local government contracts.
The core setup steps are: reserve a trade name, get initial approval from the DED, sign the memorandum of association, secure a tenancy (Ejari) for office space, and then collect the trade licence. Most activities are licensed within a few business days once documents and approvals are in place.
Some regulated activities (legal, medical, financial, security) still require a UAE national as a local service agent or special approvals even after the 2021 reforms, so always confirm your specific activity with the DED.
A mainland LLC falls under the standard UAE Corporate Tax regime: 0% on taxable profit up to AED 375,000 and 9% above it. There is no minimum share capital for most activities, and the company can sponsor residence visas in proportion to its office size.
Mainland companies must keep proper accounting records, register for Corporate Tax with the Federal Tax Authority, and register for VAT once taxable turnover passes AED 375,000.
05 / THE KEY FACTSThe figures, with their sources.
| Fact | Value | Source |
|---|---|---|
| Foreign ownership of mainland LLC (since 2021) | 100% (most activities) | Commercial Companies Law (amended 2021) |
| Licensing authority | Department of Economic Development (DED) | UAE DED |
| Corporate tax | 0% up to AED 375,000, then 9% | UAE FTA |
| Minimum share capital | None for most activities | UAE DED |
| Can bid for government contracts | Yes (unlike free zone) | UAE DED |
| Typical licence timeline | A few business days | UAE DED |
| VAT registration threshold | AED 375,000 turnover | UAE FTA |
06 / SOURCES & DOWNLOADSKnow what this guide rests on.
Download the official documents
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