Following the 2025 amendments to the UAE Commercial Companies Law (Federal Decree-Law No. 20 of 2025), 100% foreign ownership is now permitted for most commercial, professional, and industrial activities on the mainland, not just in free zones — a significant shift from the 51%-local-partner rule that applied to many activities historically. A limited number of strategic sectors still require a UAE national partner. We help you choose deliberately, not by default.
Current as of 2026. Rules like these change — we confirm specifics at the time of engagement.
Since the 2025 reforms, most commercial and professional activities now permit full foreign ownership on the mainland. A mainland license lets you trade freely across the UAE and take on government contracts — something free zone entities can't do directly.
Free zones have always permitted 100% foreign ownership and offer faster setup. The trade-off: a free zone company generally can't sell directly to UAE mainland customers without a distributor, a dual license, or a separate mainland branch, though onshore-access rules have started to ease this in some zones.
For clients using the UAE primarily as a regional holding structure rather than an operating business, an offshore entity avoids the overhead of a physical office requirement.
Since June 2023, the UAE applies a 9% federal corporate tax on taxable income above AED 375,000 (profit below that threshold is taxed at 0%, permanently). Qualifying Free Zone Persons can retain a 0% rate on qualifying income if substance requirements are met. Small Business Relief — which lets businesses under AED 3 million in revenue elect 0% tax entirely — is currently set to expire for tax periods ending after 31 December 2026.
LISORBIS advises on strategy and structuring for United Arab Emirates. Filings, registrations, and any step requiring local admission to practice are carried out by a locally authorized representative or licensed professional in United Arab Emirates, working alongside our team.