Company Setup Services in UAE — Mainland & Free Zone, 100% Foreign-Owned

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Can Foreigners Own 100% of a Company in the UAE?

Yes. Since Federal Decree-Law No. 32 of 2021 on Commercial Companies took effect in January 2022 (as amended by Federal Decree-Law No. 20 of 2025), foreign investors can hold 100% ownership of most UAE mainland companies, without a UAE national shareholder or local sponsor. This replaced the previous requirement that UAE nationals hold at least 51% of a mainland LLC.

A limited list of activities considered to have “strategic impact” — including security, defence, banking, insurance and certain oil and gas activities — may still require Emirati participation or Cabinet-level approval. Some professional licences still require a UAE national to act as a non-equity Local Service Agent.

Earlier marketing material describing free zones as offering “no corporate tax for 50 years” predates the UAE’s federal corporate tax (2023) — see the tax section below before using that line again.

Licence types

• Trading Licence — for companies trading physical products
• Service Licence — for consultancy and other pure services
• Industrial Licence — for manufacturing and industrial activities

Mainland vs Free Zone

Mainland LLC: up to 100% foreign ownership for most activities, no restriction on office location, and the only structure that lets you trade directly with the UAE mainland market and bid for government contracts.

Free Zone company (FZCO/FZE): 100% foreign ownership, 100% repatriation of capital and profits, no personal income tax, and streamlined setup — but generally restricted from trading directly with the mainland without additional arrangements.

UAE Corporate Tax — What Actually Applies

Since Federal Decree-Law No. 47 of 2022, financial years starting on or after 1 June 2023 are subject to UAE federal corporate tax. Mainland companies pay 0% up to AED 375,000 of taxable income and 9% above it; businesses under AED 3 million revenue may elect Small Business Relief for 0% (currently legislated through 31 December 2026).

Free zone companies only get the 0% rate on “Qualifying Income” if they meet the Qualifying Free Zone Person (QFZP) conditions — non-qualifying income is taxed at 9% regardless of free zone status. VAT at 5% (Federal Decree-Law No. 8 of 2017) applies separately to most goods and services above the mandatory registration threshold.

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