Mainland, free zone, or offshore — structured right.

United Arab Emirates

How we work in the UAE

LISORBIS advises on structuring and coordinates the engagement from Islamabad. Anything that requires a local licence, including advice on UAE law, filings, registrations and representation, is carried out by licensed professionals from established firms we collaborate with, engaged for your matter. LISORBIS remains your single point of contact throughout.

Overview

Since 2021, the UAE Commercial Companies Law (Federal Decree-Law No. 32 of 2021, building on 2020 reforms) has permitted 100% foreign ownership 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 historically. A limited number of strategic sectors still require a UAE national partner. Federal Decree-Law No. 20 of 2025 further amended the law with new tools for structuring investments — including multiple share classes, drag-along/tag-along rights, and extending the law's scope to free zone companies that carry on activities onshore. We help you choose deliberately, not by default.

Where we can help

What actually determines your structure.

General information, last reviewed September 2026, and not advice on UAE law. Specifics are confirmed with licensed local counsel at the time of engagement.

Mainland

Since the 2021 reforms, most commercial and professional activities permit full foreign ownership on the mainland. A mainland licence allows you to trade directly across the UAE and to bid for government work, which free zone entities generally cannot do directly.

Free Zone

Free zones have long 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 licence, or a separate mainland branch, though onshore-access rules have started to ease this in some zones.

Offshore Holding

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.

Corporate Tax

Since June 2023, the UAE applies a 9% federal corporate tax on taxable income above AED 375,000 (taxable income up to that threshold is taxed at 0%). Qualifying Free Zone Persons can retain a 0% rate on qualifying income if substance requirements are met. Small Business Relief, which allows eligible resident businesses with revenue of AED 3 million or less to elect to be treated as having no taxable income, was due to end with tax periods ending on 31 December 2026; in August 2026 the Ministry of Finance announced its extension to tax periods ending on or before 31 December 2029. Large multinational groups may also be subject to a 15% domestic minimum top-up tax.

Structuring a business in the United Arab Emirates?

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