Important Updates
Important Updates
May 21, 2025 | South AfricaSouth Africa: Extended Duration of Stay for Nationals of Lesotho
May 22, 2025 | United KingdomConstruction Management: Immigration White Paper: What it Means for UK Construction
May 22, 2025 | 🌐Minimum Salary Changes Announced
May 21, 2025 | United KingdomLBC: Youth Mobility is a Good Start - But Britain’s Immigration System Still Needs a Business Reset
May 21, 2025 | United StatesNegocios Now Names Associate Ana Gabriela Urizar to NYC-TriState Latinos 40 Under 40 Class of 2025
May 21, 2025 | South AfricaSouth Africa: Extended Duration of Stay for Nationals of Lesotho
May 22, 2025 | United KingdomConstruction Management: Immigration White Paper: What it Means for UK Construction
May 22, 2025 | 🌐Minimum Salary Changes Announced
May 21, 2025 | United KingdomLBC: Youth Mobility is a Good Start - But Britain’s Immigration System Still Needs a Business Reset
May 21, 2025 | United StatesNegocios Now Names Associate Ana Gabriela Urizar to NYC-TriState Latinos 40 Under 40 Class of 2025
May 21, 2025 | South AfricaSouth Africa: Extended Duration of Stay for Nationals of Lesotho
Subscribe
Fragomen.com home
Select Language
  • English
  • French
  • French - Canadian
  • German

Select Language

  • English
  • French
  • French - Canadian
  • German
ContactCareersMedia
Search Fragomen.com
  • Our Services
    For EmployersFor IndividualsBy IndustryCase Studies
  • Our Tech & Innovation
  • Our People
  • Our Insights
    Worldwide Immigration Trends ReportsImmigration AlertsEventsMedia MentionsFragomen NewsBlogsPodcastsVideos
  • Spotlights
    Navigating Immigration Under the Second Trump AdministrationHumanitarian and Evolving Legal Pathways (HELP)Vietnamese ImmigrationImmigration Matters: Your U.S. Compliance RoadmapFragomen Consulting EuropeAustralian Immigration: New Skills in Demand Visa
  • About Us
    About FragomenOfficesResponsible Business PracticesFirm GovernanceRecognition

Our Services

  • For Employers
  • For Individuals
  • By Industry
  • Case Studies

Our Tech & Innovation

  • Our Approach

Our People

  • Overview / Directory

Our Insights

  • Worldwide Immigration Trends Reports
  • Immigration Alerts
  • Events
  • Media Mentions
  • Fragomen News
  • Blogs
  • Podcasts
  • Videos

Spotlights

  • Navigating Immigration Under the Second Trump Administration
  • Humanitarian and Evolving Legal Pathways (HELP)
  • Vietnamese Immigration
  • Immigration Matters: Your U.S. Compliance Roadmap
  • Fragomen Consulting Europe
  • Australian Immigration: New Skills in Demand Visa

About Us

  • About Fragomen
  • Offices
  • Responsible Business Practices
  • Firm Governance
  • Recognition
Select Language
  • English
  • French
  • French - Canadian
  • German

Select Language

  • English
  • French
  • French - Canadian
  • German
ContactCareersMedia
  • Insights

Navigating the UAE Corporate Landscape: Choosing the Right Jurisdiction for Your UAE Company

February 9, 2024

Country / Territory

  • United Arab EmiratesUnited Arab Emirates

Related contacts

Elena Caron porthole

Elena Caron

Corporate Services Director

Dubai (DIC), United Arab Emirates

Email

[email protected]

T:+971 4 8181 709

Related offices

  • Dubai (DIC)
  • Dubai (DIFC)

Share

  • Twitter
  • Facebook
  • LinkedIn

Share

  • Twitter
  • Facebook
  • LinkedIn

Related contacts

Elena Caron porthole

Elena Caron

Corporate Services Director

Dubai (DIC), United Arab Emirates

Email

[email protected]

T:+971 4 8181 709

Related offices

  • Dubai (DIC)
  • Dubai (DIFC)

Share

  • Twitter
  • Facebook
  • LinkedIn

Share

  • Twitter
  • Facebook
  • LinkedIn

Related contacts

Elena Caron porthole

Elena Caron

Corporate Services Director

Dubai (DIC), United Arab Emirates

Email

[email protected]

T:+971 4 8181 709

Related offices

  • Dubai (DIC)
  • Dubai (DIFC)

Share

  • Twitter
  • Facebook
  • LinkedIn

Share

  • Twitter
  • Facebook
  • LinkedIn

By: Elena Caron

While setting up a company in the UAE is a quite streamlined process, selecting the optimal jurisdiction requires careful consideration due to the multitude of options available.

With more than 50 jurisdictions, including seven mainland Emirates and more than 45 free zones, it is crucial to understand the key factors influencing this decision.

This blog provides an overview of the key factors to consider when deciding in which jurisdiction to set up a company in the UAE.

Choosing the Right Emirate

  • Abu Dhabi: As the largest Emirate and the UAE’s capital, Abu Dhabi hosts federal government offices and it is particularly advantageous for businesses intending to collaborate with the country’s federal government. Abu Dhabi is an aspiring global financial centre, growing innovation hub and leading energy producer, with a strong focus on oil exports and commerce.
  • Dubai: Renowned as a dynamic and modern business hub, Dubai offers world-class infrastructure and a business-friendly environment. The city's commitment to supporting startups and minimal bureaucracy make it an ideal choice for companies aiming to start and scale efficiently.
  • Northern Emirates: Focused on industries like logistics, manufacturing, real estate and tourism, the Northern Emirates provide opportunities for quick and cost-effective business setups, especially for new market entrants.

Mainland vs. Free Zone

Understanding the nuances between mainland and free zone set-ups is paramount and could have a significant impact on the business. These are the key differences:

  • Limitations on conducting activities: Companies operating in the mainland have access to both local and international markets and can conduct business across all emirates. In the free zones, businesses are restricted to operating within the free zone or internationally and may face limitations in dealing with government entities. Some free zones offer dual licenses to operate in both free zones and the mainland using the same business license, without leasing additional office space or having a local shareholder. Such licenses are issued by: D3; DAFZA; DIFC; DMCC; ADGM; ADAFZ; KIZAD; TwoFour54.
  • Ownership: All free zone LLCs may have 100% foreign ownership. Unless they are eligible for 100% foreign ownership based on their activities, mainland LLCs may require a local sponsor who must have at least 51% ownership of the company.
  • Corporate tax: In free zone jurisdictions, businesses can avail the benefit of a 0% corporate tax regime if they earn qualifying income. Mainland companies are subject to 9% corporate tax for taxable income above AED 375,000. Large multinationals may be subject to higher corporate tax rates, subject to meeting certain criteria.
  • Employee quota: Employee quota in the free zones is allocated based on office space. In mainland jurisdictions, the quota allocation depends on multiple criteria including business activities and compliance with all applicable UAE labour regulations.
  • Emiratisation: There are no Emiratisation requirements in the free zones. On the mainland, employers with 50 workers or more, regardless of the economic sector, are subject to specific Emiratisation ratios. Effective 1 January 2024, companies with 20-49 employees operating in 14 key economic sectors are also subject to Emiratisation requirements.
  • Wage protection system: WPS is an electronic salary transfer system that ensures timely and complete payment of agreed-upon wages. Currently, it is applicable in all mainland jurisdictions and select free zones, such as JAFZA and, most recently, DMCC. 
  • Minimum capital requirements: The minimum paid-up capital varies from free zone to free zone and sometimes it depends on the proposed activity. On the mainland, there is no prescribed minimum share capital, but the entity should have adequate capital to achieve the purposes of its incorporation.

Which free zone?

Free zones in the UAE have typically been established to accommodate general or industry-specific activities, including:

  • Jebel Ali Free Zone Authority (JAFZA): focused on trade, imports and exports;
  • Dubai Airport Free Zone Authority (DAFZA): focused on aviation and logistics; 
  • Dubai International Financial Centre (DIFC) and Abu Dhabi Global Market (ADGM): focused on the financial services industry;
  • Dubai Media City (DMC): focused on technology, media and telecommunications;
  • Dubai Multi Commodities Centre (DMCC): focused on the commodity trade and services sector; 
  • Khalifa Industrial Zone Abu Dhabi (KIZAD): focused on industrial services;
  • Hamriyah Free Zone (HFZ): focused on logistics and trading companies; and
  • Ras Al Khaimah Free Trade Zone (RAKFTZ), Ajman Free Zone (AFZ) and Fujairah Free Zone (FFZ): focused on an array of general activities.

Assessment

Navigating the landscape of setting up a company in the UAE demands a strategic and informed approach. While the process itself is designed to be relatively straightforward, the critical decision lies in choosing the right jurisdiction based on your business objectives, industry focus and long-term goals. Entrepreneurs should carefully assess their business activities, ownership preferences and tax implications to align with the most suitable jurisdiction.

Moreover, staying abreast of recent developments and regulatory changes is crucial. The UAE, known for its proactive approach to business facilitation, may introduce new initiatives or policies that can impact your company set-up. Keeping a pulse on new requirements is essential for sustained compliance and success.

Need to know more?

For further information on UAE company formation requirements, please contact Senior Manager Elena Caron at [email protected].

This blog was published on 9 February 2024, and due to the circumstances, there are frequent changes. To keep up to date with all the latest updates on global immigration, please subscribe to our alerts and follow us on LinkedIn, X, Facebook and Instagram.

Country / Territory

  • United Arab EmiratesUnited Arab Emirates

Related contacts

Elena Caron porthole

Elena Caron

Corporate Services Director

Dubai (DIC), United Arab Emirates

Email

[email protected]

T:+971 4 8181 709

Related offices

  • Dubai (DIC)
  • Dubai (DIFC)

Share

  • Twitter
  • Facebook
  • LinkedIn

Share

  • Twitter
  • Facebook
  • LinkedIn

Related contacts

Elena Caron porthole

Elena Caron

Corporate Services Director

Dubai (DIC), United Arab Emirates

Email

[email protected]

T:+971 4 8181 709

Related offices

  • Dubai (DIC)
  • Dubai (DIFC)

Share

  • Twitter
  • Facebook
  • LinkedIn

Share

  • Twitter
  • Facebook
  • LinkedIn

Related contacts

Elena Caron porthole

Elena Caron

Corporate Services Director

Dubai (DIC), United Arab Emirates

Email

[email protected]

T:+971 4 8181 709

Related offices

  • Dubai (DIC)
  • Dubai (DIFC)

Share

  • Twitter
  • Facebook
  • LinkedIn

Share

  • Twitter
  • Facebook
  • LinkedIn

Explore more at Fragomen

Media mentions

Construction Management: Immigration White Paper: What it Means for UK Construction

Manager Kirsty Moore and Trainee Solicitor Christina Azntaridou discuss the UK government's immigration white paper's potential impact on construction hiring.

Learn more

Media mentions

LBC: Youth Mobility is a Good Start - But Britain’s Immigration System Still Needs a Business Reset

UK Managing Partner Nadine Goldfoot reflects on how the UK’s immigration system might adapt to better support business and short-term mobility.

Learn more

Awards

Negocios Now Names Associate Ana Gabriela Urizar to NYC-TriState Latinos 40 Under 40 Class of 2025

Negocios Now names Associate Ana Gabriela Urizar to its NYC-TriState Latinos 40 Under 40 Class of 2025 list.

Learn more

Video

Digital Nomad Visas Explained: How to Travel and Work Remotely

Learn the key requirements for digital nomad visas and find out which countries you can apply to as a remote worker or freelancer. 

Learn more

Media mentions

Financial Times Adviser: Relocating to the UK: An Immigration Lawyer’s Guide for US clients

Practice Leader Olga Nechita provides practical guidance on navigating UK immigration routes, settlement options and key considerations for applicants.

Learn more

Video

New DOLE Rules for Employing Foreign Nationals | #MobilityMinute

Senior Business Immigration Consultant Missy Mae Makil discusses the new DOLE rules for employing foreign nationals in the Philippines.

Learn more

Media mentions

Research Professional News: Immigration White Paper Offers Employers Costs without Clarity

UK Government Affairs Strategy Director Shuyeb Muquit examines how the UK’s new Immigration White Paper could affect talent mobility and growth in the life sciences sector.

Learn more

Media mentions

An Interview with Partner Abeer Al Husseini (الاقتصادية)

Partner Abeer Al Husseini discusses recent changes in Saudi Arabia's commercial regulations, their impact on international businesses and how they support Vision 2030.

Learn more

Awards

Fragomen and Talent Beyond Boundaries Win "Partnership with an International Charity" at Better Society 2025 Awards

Fragomen and Talent Beyond Boundaries received the “Partnership with an International Charity” award at the 10th Annual Better Society Awards.

Learn more

Blog post

Freelance Licence in the UAE: What You Need to Know in 2025

Corporate Services Director Elena Caron outlines essential information and updates regarding obtaining a freelance licence in the UAE, highlighting key requirements and benefits for freelancers.

Learn more

Media mentions

Global Mobility Lawyer: Immigration White Paper Sends Message That the UK is “Closed for Business”

Partner Rajiv Naik discussed how UK employers can prepare for immigration reforms by reviewing policies and aligning mobility with workforce planning.

Learn more

Blog post

A System Reset Presents Challenges and Opportunities: The UK’s Immigration White Paper in Focus

UK Government Affairs Strategy Director Shuyeb Muquit discusses how the UK’s Immigration White Paper presents both challenges and opportunities, highlighting the need for a system reset to address immigration issues effectively.

Learn more

Media mentions

Construction Management: Immigration White Paper: What it Means for UK Construction

Manager Kirsty Moore and Trainee Solicitor Christina Azntaridou discuss the UK government's immigration white paper's potential impact on construction hiring.

Learn more

Media mentions

LBC: Youth Mobility is a Good Start - But Britain’s Immigration System Still Needs a Business Reset

UK Managing Partner Nadine Goldfoot reflects on how the UK’s immigration system might adapt to better support business and short-term mobility.

Learn more

Awards

Negocios Now Names Associate Ana Gabriela Urizar to NYC-TriState Latinos 40 Under 40 Class of 2025

Negocios Now names Associate Ana Gabriela Urizar to its NYC-TriState Latinos 40 Under 40 Class of 2025 list.

Learn more

Video

Digital Nomad Visas Explained: How to Travel and Work Remotely

Learn the key requirements for digital nomad visas and find out which countries you can apply to as a remote worker or freelancer. 

Learn more

Media mentions

Financial Times Adviser: Relocating to the UK: An Immigration Lawyer’s Guide for US clients

Practice Leader Olga Nechita provides practical guidance on navigating UK immigration routes, settlement options and key considerations for applicants.

Learn more

Video

New DOLE Rules for Employing Foreign Nationals | #MobilityMinute

Senior Business Immigration Consultant Missy Mae Makil discusses the new DOLE rules for employing foreign nationals in the Philippines.

Learn more

Media mentions

Research Professional News: Immigration White Paper Offers Employers Costs without Clarity

UK Government Affairs Strategy Director Shuyeb Muquit examines how the UK’s new Immigration White Paper could affect talent mobility and growth in the life sciences sector.

Learn more

Media mentions

An Interview with Partner Abeer Al Husseini (الاقتصادية)

Partner Abeer Al Husseini discusses recent changes in Saudi Arabia's commercial regulations, their impact on international businesses and how they support Vision 2030.

Learn more

Awards

Fragomen and Talent Beyond Boundaries Win "Partnership with an International Charity" at Better Society 2025 Awards

Fragomen and Talent Beyond Boundaries received the “Partnership with an International Charity” award at the 10th Annual Better Society Awards.

Learn more

Blog post

Freelance Licence in the UAE: What You Need to Know in 2025

Corporate Services Director Elena Caron outlines essential information and updates regarding obtaining a freelance licence in the UAE, highlighting key requirements and benefits for freelancers.

Learn more

Media mentions

Global Mobility Lawyer: Immigration White Paper Sends Message That the UK is “Closed for Business”

Partner Rajiv Naik discussed how UK employers can prepare for immigration reforms by reviewing policies and aligning mobility with workforce planning.

Learn more

Blog post

A System Reset Presents Challenges and Opportunities: The UK’s Immigration White Paper in Focus

UK Government Affairs Strategy Director Shuyeb Muquit discusses how the UK’s Immigration White Paper presents both challenges and opportunities, highlighting the need for a system reset to address immigration issues effectively.

Learn more

Stay in touch

Subscribe to receive our latest immigration alerts

Subscribe

Our firm

  • About
  • Careers
  • Firm Governance
  • Media Inquiries
  • Recognition

Information

  • Attorney Advertising
  • Legal Notices
  • Privacy Policies
  • UK Regulatory Requirements

Our firm

  • About
  • Careers
  • Firm Governance
  • Media Inquiries
  • Recognition

Information

  • Attorney Advertising
  • Legal Notices
  • Privacy Policies
  • UK Regulatory Requirements

Have a question?

Contact Us
  • LinkedIn
  • Youtube
  • Instagram
  • Facebook
  • Twitter

© 2025 Fragomen, Del Rey, Bernsen & Loewy, LLP, Fragomen Global LLP and affiliates. All Rights Reserved.

Please note that the content made available on this site is not intended for visitors / customers located in the province of Quebec, and the information provided is not applicable to the Quebec market. To access relevant information that applies to the Quebec market, please click here.