The UAE is one of the world’s most attractive jurisdictions for entrepreneurs. Since 2021, 100% foreign ownership is permitted in most Mainland sectors. Here are the keys to choosing the right structure.
Mainland, Free Zone or Offshore: the differences
- Mainland: unlimited UAE trading, 100% foreign ownership
- Free Zone: 100% ownership, restrictions outside the zone
- Offshore: holding/investment only — no employee visa
Best Free Zones by sector
- DMCC: trade, commodities, crypto — most prestigious
- IFZA: excellent cost-benefit — popular with SMEs
- DIFC: finance and legal — English common law
- JAFZA: logistics and import-export — direct port access
- RAKEZ: most affordable — ideal for freelancers
Corporate Tax 2023
9% on net profits above AED 375,000 (~USD 102,000). Below that: 0% (Small Business Relief). Free Zone: 0% possible on Qualifying Income. 5% VAT if turnover > AED 375,000/year.