Compare popular UAE business setup jurisdictions

The UAE remains one of the world’s most attractive destinations for entrepreneurs and global corporations. With the 9% corporate tax now active for profits above AED 375,000, choosing the right jurisdiction is no longer just about 100% ownership. It’s about balancing tax efficiency, operational freedom and market access.

• Tax status and qualifying income: Some free zones offer 0% tax only on "qualifying income." Ensure your activity fits these rules to avoid the standard 9% rate. Large enterprises often need tax mapping across multiple entities.
• Market access and distribution: Mainland licences allow direct trade with the local market and access to government tenders. Free zones are designed for international trade but may require a local agent for mainland sales.
• Ownership and legal framework: Most sectors now allow 100% foreign ownership, but certain mainland activities still require a local partner. Consider whether you prefer civil law (mainland) or common law systems (DIFC, ADGM).
• Total setup budget: Beyond licence fees, factor in office space, mandatory health insurance and annual renewals. These costs vary widely and can impact smaller firms significantly.
• Visa and residency quotas Visa allocation is often tied to office size. If you plan to hire a large team, choose a jurisdiction with flexible expansion options.

• A Dubai mainland LLC is regulated by the Department of Economy and Tourism (DET). Since the 2021 reforms, foreigners can own 100 per cent of most commercial businesses here without a local partner.
• A physical office space within Dubai is a mandatory requirement for licensing.
• Best for: Retail, hospitality and local service providers.
• Suitability for SMEs: Ideal for retail outlets and customer‑facing service businesses.
• Suitability for Enterprises: Enables multiple branches under one corporate structure and eligibility for government contracts.

• Located in the heart of Dubai, the Dubai Multi Commodities Centre (DMCC) provides 100% foreign ownership and full repatriation of capital and profits.
• To register a DMCC LLC, a minimum share capital of AED 50,000 is required and must be paid up within three months of incorporation.
• Companies must maintain a physical office within the Jumeirah Lakes Towers (JLT) district.
• Best for: Commodities trading, fintech startups and service firms.
• Suitability for SMEs: Affordable flexi‑desks and fast registration.
• Suitability for Enterprises: Large commercial towers suited to consulting firms and regional headquarters and global trading networks for gold, diamonds and other physical goods.

As an international business services provider for DMCC, we offer streamlined advisory, registration, accounting and tax support for companies setting up here, especially in technology, innovation and sustainability sectors.

• The Dubai International Financial Centre (DIFC) is a specialized financial hub with its own independent legal system based on English common law. It is regulated by the Dubai Financial Services Authority (DFSA).
• Under current regulations, the DIFC no longer uses the LLC designation for new registrations; instead, it uses Private Company (Ltd) or Public Company (PLC) structures.
• Best for: Investment banking, wealth management, fintech and professional services.
• Suitability for SMEs: Innovation Hub with lower entry costs for fintech and tech founders.
• Suitability for Enterprises: Prestigious base for global financial institutions and international law firms, with independent courts based on UK common law.

• The Jebel Ali Free Zone (JAFZA) is one of the world's largest industrial and logistics zones, located next to the Jebel Ali port.
• A JAFZA LLC benefits from 100% foreign ownership and is exempt from customs duties on goods imported into the zone, provided they are not moved into the UAE mainland.
• Best for: Manufacturing, logistics and heavy industry.
• Suitability for SMEs: Small warehouses and integrated customs clearing.
• Suitability for Enterprises: Vast land plots for factories and logistics centres with direct sea and air links.

• An Abu Dhabi mainland LLC is regulated by the Abu Dhabi Department of Economic Development (ADDED).
• Similar to Dubai, 100% foreign ownership is permitted for many activities and has the right to trade anywhere in the UAE.
• The company must have a physical office or warehouse in Abu Dhabi.
• Best for: Construction, energy and government contracting.
• Suitability for SMEs: Access to smaller government sub‑contracts and local retail operations.
• Suitability for Enterprises: Legal status to bid for multi‑billion-dirham infrastructure and energy projects.

• The Khalifa economic zones Abu Dhabi (KEZAD) is an integrated trade, logistics and industrial hub located near Khalifa port.
• The standard minimum capital for a KEZAD LLC is AED 150,000. However, the actual requirement depends on the commercial activities planned by the business.
• KEZAD is unique because under a dual licence it allows companies to operate under both free zone and non-free zone status in certain areas, providing flexibility for those who need both international and local market access.
• Best for: Large‑scale industry and food processing.
• Suitability for SMEs: Ready‑to‑use light industrial units for manufacturing and engineering workshops.
• Suitability for Enterprises: Competitive land and utility rates, integrated supply chains and extensive transport links for heavy industries.

To assist with your decision-making, we have prepared an ‘at a glance’ table for the UAE that outlines the main company formation options, including both free zone and mainland jurisdictions. This table presents key details for each jurisdiction, along with the types of entities available throughout the UAE. It serves as a valuable resource for those looking to expand into the UAE region or set up a new business entity here.