Even after the introduction of 9% corporate income tax UAE remains one of the lowest tax jurisdictions and a very attractive location for entrepreneurs from all over the world.
UAE Mainland companies are slightly more complex to register and maintain but if your business will be serving UAE clients or buyers, you will need a mainland company.
UAE Mainland companies still benefit from tax free dividends and capital gains making it a great option for holding companies. Corporate tax applies only from AED 375,000 but all companies are still required to register for corporate tax regardless of this threshold.
Quick Facts
Corporate Tax Rate
9%
Local Director Required
No
Audit Required
No
Complexity
Complex
Legal Information
Legal Information
Entity Type
Limited Liability Company (LLC)
Company Form
Limited Liability Company (LLC)
Liability
Shareholders' liability is limited to their contribution to the company’s capital. Personal assets are protected unless fraud or misconduct occurs.
Share Capital
No minimum share capital requirement, but it must be stated in the Memorandum of Association.
Company Name Rules
Must be unique and not similar to existing names. Must include “LLC.” Cannot contain offensive, religious, or misleading terms (e.g., “bank,” “insurance,” or “government” without approval).
Types of Shares Allowed
Ordinary shares only. No preferred shares.
Bearer Shares Allowed
No, bearer shares are not permitted.
Foreign Ownership Rules
100% foreign ownership allowed in most sectors, but some activities require a UAE national partner.
Redomiciliation
Allowed
Shareholders
1 shareholder (natural or legal person).
Directors
Minimum: 1 director (natural or legal person).
Secretary
Registered Address
Every LLC must have a registered office in the UAE.
Incorporation Timeline
Trade Name Reservation
1-2 business daysSubmit the proposed company name to the Department of Economic Development (DED) for approval.
Initial Approval
2-3 business daysObtain initial approval from the DED to proceed with company incorporation.
Preparation of Documents
3-5 business daysDraft the Memorandum of Association (MoA) and other incorporation documents.
Submission to Department of Economic Development
2-3 business daysFile the incorporation documents with the DED and pay the required fees.
Trade License Issuance
3-5 business daysOnce approved, the DED issues the trade license allowing the company to operate legally.
Tax Registration (If Required)
5-10 business daysRegister for corporate tax (if applicable) and Value-Added Tax (VAT) with the Federal Tax Authority.
Bank Account Opening
10-30 business daysOpen a corporate bank account. Processing time depends on the bank and risk assessment.
Labor and Immigration Registration
5-10 business daysRegister with the Ministry of Human Resources & Emiratisation (MOHRE) and General Directorate of Residency and Foreigners Affairs (GDRFA) for work permits and visas.
Compliance & Operational Setup
OngoingEnsure compliance with regulatory requirements, appoint accountants, and begin business operations.
Uae Corporate Taxation
Corporate Income Tax: 9%
Effective Tax Rate: 9%
Exemptions:
Income below AED 375,000 is tax-free.
Dividends and other profit distributions from UAE resident entities or foreign entities are exempt under participation exemptions.
Dividends and other profit distributions from UAE resident entities or foreign entities are exempt under participation exemptions.
No withholding tax on dividend distributions.
No withholding tax on dividend distributions under the UAE corporate tax regime.
Special Regimes
Anti-Avoidance Rules
Follows OECD guidelines with requirements for Master and Local Files; Advance Pricing Agreements (APAs) available.