Source-cited draft: company formation & entity choice for United Arab Emirates (tax year 2025) — rates, thresholds and rules with primary-source citations. Unverified; pending local-accountant review.
General reference only
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Source-cited draft. This skill is source-cited but has not been reviewed by a licensed practitioner. It may be incomplete, outdated, or wrong.
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| Entity types, capital and incorporation | Businesses set up either on the mainland (licensed by the relevant Emirate's Department of Economic Development) or in one of the UAE's free zones. The limited liability company (LLC) is the most common mainland vehicle; free zones offer FZ-LLC / FZE structures with their own registries. | |
| Mainland LLC | Limited Liability Company licensed by the Emirate's Department of Economic Development (DED); 100% foreign ownership now permitted for most commercial/industrial activitiesFederal Decree-Law No. 32 of 2021 (Commercial Companies Law) | |
| Free zone entity | FZ-LLC / FZE (single shareholder) / FZCO (multiple shareholders) registered with the relevant free zone authority; allows 100% foreign ownershipRelevant Free Zone Authority regulations | |
| Other entity types | Sole establishment, civil company (professionals), private/public joint stock company (PJSC/PrJSC), and branch of a foreign companyFederal Decree-Law No. 32 of 2021 (Commercial Companies Law) | |
| Mainland LLC minimum share capital | No fixed statutory minimum — capital must be adequate for the activity; in practice often set at AED 150,000 to AED 300,000 depending on activity/EmirateFederal Decree-Law No. 32 of 2021 (Commercial Companies Law) | |
| Free zone minimum share capital | Varies by free zone — many require no minimum, others range from about AED 1,000 to AED 50,000 depending on activity |
Businesses set up either on the mainland (licensed by the relevant Emirate's Department of Economic Development) or in one of the UAE's free zones. The limited liability company (LLC) is the most common mainland vehicle; free zones offer FZ-LLC / FZE structures with their own registries.
Other United Arab Emirates computations in the OpenAccountants library.
| Incorporation steps | Reserve trade name and get initial approval; draft and notarise the Memorandum of Association; secure a lease/office (Ejari for mainland); submit documents and obtain the trade licence; then register for corporate tax and (if applicable) VAT with the FTAFederal Decree-Law No. 32 of 2021 (Commercial Companies Law); relevant DED / Free Zone procedures |
| Typical timeline | Roughly 1 to 4 weeks depending on activity, authority and document readinessMinistry of Economy & Tourism — Establishing Companies |
| Typical setup cost | Roughly AED 10,000 to AED 50,000 (mainland) depending on authority and licence type; free zone packages commonly AED 12,000 to AED 30,000Invest in Dubai / DED licence fee schedules |
| Corporate tax registration | All companies (including free zone and 0%-rated) must register for corporate tax with the FTA within the deadline set by FTA Decision No. 3 of 2024Federal Decree-Law No. 47 of 2022 (Corporate Tax Law); FTA Decision No. 3 of 2024 |
| Core annual compliance | Renew the trade licence annually; maintain IFRS-compliant accounting records; file the corporate tax return within 9 months of year-end; file VAT returns if registered; keep records for at least 7 yearsFederal Decree-Law No. 47 of 2022 (Corporate Tax Law); Federal Decree-Law No. 32 of 2021 (Commercial Companies Law) |
| Audited financial statements | Required for many entities — including taxable persons with revenue exceeding AED 50,000,000 and Qualifying Free Zone Persons electing the 0% regimeMinisterial Decision No. 84 of 2025 (Requirements for Maintaining Audited Financial Statements) |
Rendered from the facts database. General reference only — confirm with a qualified professional before acting.
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