Company setup and compliance in the UAE
Choose between mainland and free zone, obtain your licence, and keep corporate tax, VAT, payroll and licence renewals on one calendar.
- Tax authority
- Federal Tax Authority (FTA)
- Licensing
- Emirate economic department or free zone
- Currency
- UAE dirham (AED)
- Financial year
- Calendar year is common
Choose the right structure
| Entity type | Best suited to | Key points |
|---|---|---|
| Mainland LLC | Companies trading across the UAE and with local customers | Licensed by the emirate's economic department. Foreign ownership of up to 100% is permitted for most activities. |
| Free zone company | Companies serving international clients or specific industries | Licensed by the free zone authority. Free zones differ on activities, premises and fees. |
| Branch of a foreign company | Extending an existing company into the UAE | Registered in the mainland or in a free zone, with the parent remaining legally responsible. |
What setting up involves
The usual sequence. Order and requirements depend on the entity type and your ownership.
- Define the business activity and choose mainland or a free zone
- Reserve the trade name and prepare the incorporation documents
- Obtain the licence and arrange the registered premises
- Arrange visas and Emirates ID for owners and employees
- Register for corporate tax with the FTA, including for free zone companies
- Register for VAT if taxable supplies pass the mandatory threshold of AED 375,000, or voluntarily above AED 187,500
- Open a corporate bank account and set up payroll under the Wage Protection System
Recurring obligations after set-up
| Filing or obligation | Frequency | Typical due date |
|---|---|---|
| VAT return | Monthly or quarterly | 28th day after the end of the tax period |
| Corporate tax return | Annual | Within 9 months of the financial year end |
| Payroll and WPS salary files | Monthly | On the agreed salary date |
| Trade licence renewal | Annual | Before the licence expiry date |
General guide only. Rules, thresholds and due dates change by notification and differ by entity type and industry. We confirm the position for your company at scoping.
Our role in UAE
- Mainland versus free zone comparison for your activity
- Licence documentation and registered premises coordination
- Corporate tax and VAT registration support
- Bookkeeping, VAT return preparation and WPS payroll
- Group reporting for UAE companies owned from India or elsewhere
Where local law requires a locally licensed professional, such as a registered agent, company secretary or statutory auditor, we coordinate that role with a licensed provider.
Questions about UAE
Can foreigners own 100% of a UAE company?
In most mainland activities, yes, following the 2021 reforms. Some strategic activities still have local ownership requirements, and free zones set their own rules.
What is the corporate tax rate?
The standard rate is 9% on taxable income above AED 375,000, with 0% below that threshold. Qualifying free zone persons may benefit from a 0% rate on qualifying income. We confirm eligibility for your structure.
Who signs the audit?
Audit opinions are issued by a UAE-licensed auditor of your choice. We prepare IFRS-aligned books and schedules so the audit runs faster.
Other countries: United States United Kingdom Canada Australia Singapore India
Ready to set up in UAE?
Share your plans and we will reply within one business day with next steps.