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.
Source-cited draft.Written from sources but not reviewed by a licensed practitioner, so it may be incomplete or wrong. General reference only; don't file or take a position on it without professional review.
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Every figure is drawn from this Tax Guide and cited to its source.
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)View source ↗
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 regulationsView source ↗
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/Emirate AED (approx — confirm with the relevant DED)Federal Decree-Law No. 32 of 2021 (Commercial Companies Law)View source ↗
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 AED (approx — confirm with the specific free zone authority)Relevant Free Zone Authority regulationsView source ↗
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 proceduresView source ↗
Typical timeline
Roughly 1 to 4 weeks depending on activity, authority and document readiness (approx — confirm)Ministry of Economy & Tourism — Establishing CompaniesView source ↗
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 30,000 AED (approx — confirm with the chosen authority)Invest in Dubai / DED licence fee schedulesView source ↗
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% regime AEDMinisterial Decision No. 84 of 2025 (Requirements for Maintaining Audited Financial Statements)
Rendered from the canonical facts model. General reference only — confirm with a qualified professional before acting.
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