The UAE has become one of the world’s most attractive places to set up a business, offering 100% foreign ownership, a low 9% corporate tax (with a 0% rate on qualifying free zone income), no personal income tax, and full repatriation of profits. Whether you incorporate on the Mainland to trade across the UAE, in a Free Zone for international and B2B operations, or Offshore to hold international assets, the UAE gives Indian entrepreneurs a strategic base between East and West with world-class infrastructure and access to a residence visa. Samkhya helps you choose the right jurisdiction and handle the entire setup.
Setting up in the UAE means first choosing between three jurisdictions. A Mainland company, licensed by the Department of Economic Development, can trade anywhere in the UAE and bid for government contracts, and now allows 100% foreign ownership in most sectors. A Free Zone company offers 100% foreign ownership, a 0% corporate tax rate on qualifying income, and quick setup, and is ideal for international and business-to-business activity. An Offshore company (such as RAK ICC or JAFZA Offshore) is used purely to hold international assets, shares, or intellectual property and cannot trade inside the UAE. The right choice depends on your target market, activity, and tax position. Each company needs a defined business activity, an approved trade name, and a registered presence in the UAE.
A UAE company offers powerful advantages:
A UAE company also has points to plan for:
To incorporate a UAE company, you generally need:
The UAE is open to foreign founders:
UAE companies are licensed either by the Department of Economic Development of the relevant emirate (for Mainland companies) or by the relevant Free Zone Authority (for free zone companies such as IFZA, DMCC, Meydan, or RAKEZ), while Offshore companies are registered with authorities like RAK ICC or JAFZA Offshore. The process is largely the same across jurisdictions: select the activity and jurisdiction, reserve the trade name, obtain initial approval, sign the incorporation documents (including the Memorandum of Association), and receive the trade licence. The company can then open a corporate bank account and apply for residence visas. Mainland setup is overseen by the emirate’s economic department and free zone setup by the zone authority, with free zone incorporation often completed in a matter of days.
For Shareholders and Directors:
For the Company:
UAE company setup follows a clear sequence:
Setting up your UAE company with Samkhya Corporate Services is simple. Just follow these easy steps:
From there, our team coordinates the trade name, licence, registered office, bank account, and visa process with the relevant authority.
A UAE company must keep up with annual and tax compliance:
The UAE levies Corporate Tax at 9% on taxable profits above AED 375,000, with 0% on profits up to that threshold; the rate applies to financial years starting on or after 1 June 2023. A Qualifying Free Zone Person can enjoy a 0% rate on its qualifying income, provided it meets the substance and activity conditions, while non-qualifying income is taxed at 9%. Small Business Relief can reduce taxable income to nil for UAE-resident businesses with revenue up to AED 3 million, available until 31 December 2026. A Domestic Minimum Top-up Tax of 15% applies to very large multinational groups under the OECD Pillar Two rules from financial years starting on or after 1 January 2025. VAT is 5%, with registration mandatory once taxable turnover crosses AED 375,000. There is no personal income tax, capital gains tax, or withholding tax on dividends.
| Feature | Mainland | Free Zone | Offshore |
| Licensed By | Department of Economic Development. | Free Zone Authority. | RAK ICC / JAFZA Offshore. |
| Foreign Ownership | 100% in most sectors. | 100%. | 100%. |
| UAE Market Access | Full access across the UAE. | Limited; needs a route to the mainland. | Cannot trade in the UAE. |
| Corporate Tax | 9% above AED 375,000. | 0% on qualifying income, else 9%. | Outside scope where criteria are met. |
| Setup Speed | About 2 to 4 weeks. | About 3 to 7 days. | Often within a week. |
| Office | Physical office required. | Flexi-desk or office. | No UAE office needed. |
| Ideal For | Local UAE trade and contracts. | International and B2B business. | Holding international assets. |
Can a foreigner own 100% of a UAE company?
Yes. Free zones have always allowed 100% foreign ownership, and since 2021 most mainland activities also allow full foreign ownership without a local partner.
How much is UAE corporate tax?
Corporate tax is 9% on taxable profits above AED 375,000 and 0% below that, for financial years starting on or after 1 June 2023. Qualifying free zone income can be taxed at 0%.
What is the difference between Mainland and Free Zone?
A Mainland company can trade anywhere in the UAE and bid for government work, while a Free Zone company offers 100% ownership and a 0% rate on qualifying income but is geared to international and B2B business.
Do I need to live in the UAE to set up a company?
No. Shareholders can reside abroad, though a UAE-resident manager and a registered office or flexi-desk are usually required. Setting up also lets you apply for a residence visa.
Is there VAT in the UAE?
Yes. VAT is 5%, and registration becomes mandatory once taxable turnover crosses AED 375,000. Many international free zone activities are zero-rated.
How long does it take to set up?
A free zone company can often be set up in 3 to 7 working days, while a mainland company typically takes about 2 to 4 weeks, depending on the activity and approvals.
