Questions, answered
Straight answers on Mainland and Free Zone setup, tax, visas and documents.
Company setup
What is the difference between a Free Zone and a Mainland company in the UAE?
The practical difference is market access, not ownership — both routes now allow 100% foreign ownership for most activities.
A Mainland company is licensed by the emirate's Department of Economy and Tourism. It can trade directly with customers anywhere in the UAE, bid for government contracts, and open branches across all seven emirates.
A Free Zone company is licensed by one of the UAE's 40-plus free zone authorities. Setup is usually cheaper, packages often bundle a fixed number of visas, and there may be corporate tax advantages if your income profile qualifies. Selling directly into the mainland market typically requires additional licensing or a distributor.
Do I still need a UAE national sponsor to own a mainland company?
For most business activities, no. Federal Decree-Law No. 26 of 2020 (consolidated into Federal Decree-Law No. 32 of 2021) removed the requirement for a majority Emirati shareholder for most mainland commercial and professional activities.
A local partner or service agent is still required for a defined list of strategic impact activities (such as defence, security, oil and gas, and certain regulated sectors). We check your specific activity before you commit.
How long does UAE company registration take?
For a straightforward setup with verified documents:
- Free Zone licence: 3–7 working days
- Mainland licence: 1–7 working days
- Residence visas: 7–15 working days per person
- Corporate bank account: 1–5 working days
What documents do I need to register a company?
Typically required documents include:
- Passport copies of all shareholders and the appointed manager (valid for at least 6 months)
- Passport-sized photographs with a white background
- Three proposed trade names in order of preference
- Intended business activities list
- Proof of address in your home country
Tax
Does my UAE company pay tax?
Yes — the UAE enforces federal Corporate Tax:
- 0% on taxable income up to AED 375,000
- 9% on taxable income above AED 375,000
- 5% VAT applies separately once taxable supplies exceed the mandatory threshold
Every UAE company must register for Corporate Tax with the Federal Tax Authority and file an annual return, even if they end up paying zero tax.
Do Free Zone companies pay 0% tax in the UAE?
Not automatically. The 0% rate applies only if the company is a Qualifying Free Zone Person (QFZP), and then only on its Qualifying Income. Other income streams are taxed at 9% without threshold relief.
Qualifying status requires maintaining adequate substance in the free zone (real staff, physical premises, and operating expenditures), adhering to transfer pricing regulations, and filing audited financial statements.
Visas
Can I get a UAE Golden Visa through my business setup?
Possibly, but company ownership alone does not automatically grant eligibility. The Golden Visa works via defined investment, entrepreneur, or specialised talent criteria set by UAE immigration authorities. We evaluate your background to determine your eligibility accurately before proceeding.
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