The short answer
Mainland companies can trade anywhere in the UAE; free zone companies trade inside their zone and abroad, and may pay 0% corporate tax on qualifying income. Every new company must register for corporate tax on time or face an AED 10,000 penalty. We set up the licence, bank account and tax registrations together.
Should I set up on the mainland or in a free zone?
Choose the mainland if most of your customers are UAE businesses or consumers, and a free zone if you trade mainly with other free zone companies or abroad. The tax angle matters as much as the licence: a free zone company can pay 0% on qualifying income, but income from mainland customers is often non-qualifying, and if it passes the lower of 5% of revenue or AED 5 million the company loses the regime for five years (Ministry of Finance). A mainland company pays 9% only on taxable income above AED 375,000 (Cabinet Decision No. 116 of 2022).
Get a first figure from our setup cost estimator.
When do DIFC or ADGM make sense?
When you need common-law courts, a regulated financial licence or a holding structure that investors already understand. DIFC and ADGM run their own company law, courts and registries in English. They are usually costlier than other free zones, so they suit fund structures, family holding companies, fintechs and regional headquarters rather than single-founder trading companies.
“an administrative penalty of AED10,000 for late registration of UAE Corporate Tax”
Which tax registrations does a new company need?
Corporate tax registration for every company, and VAT registration once taxable supplies pass AED 375,000 a year (Federal Tax Authority). The corporate tax deadline runs from your licence date, and missing it costs AED 10,000 (Cabinet Decision No. 10 of 2024). A new company with revenue up to AED 3 million can also plan to elect Small Business Relief, now available for periods ending by 31 December 2029 (Ministerial Decision No. 131).
How long does a corporate bank account take?
Usually two to six weeks after the licence is issued, depending on the bank, your shareholders' nationalities and how clearly you can document the source of funds. Banks decline files that are incomplete far more often than files that are complex. We prepare a single pack: licence, constitutional documents, UBO details, business plan, expected transaction flows and shareholder profiles.
Do you support acquisitions and valuations?
Yes. On the buy side we run financial and tax due diligence and help shape the sale and purchase agreement; on the sell side we prepare the business for scrutiny and build the valuation case. UAE-specific checks include free zone qualifying status, VAT history, UBO filings and any FTA audits in progress, since those liabilities transfer with the company.
Frequently asked questions
Can a free zone company sell to mainland customers?
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Often yes, through a distributor or with specific permits, but that income is frequently non-qualifying for corporate tax. Model it before you choose the zone.
Do I need a local partner on the mainland?
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For most commercial and industrial activities, foreign investors can now own 100% of a mainland company. A small number of strategic activities still have restrictions.
How many visas can I get?
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It depends on the licence, the office or flexi-desk you lease, and the zone or emirate. Use the estimator for a first figure and confirm with us.
Sources
- Ministry of Finance announces new decisions relating to Corporate Tax for Free Zones (Cabinet Decision No. 55 of 2023, Ministerial Decision No. 139 of 2023) — WAM, Emirates News Agency. Checked 16 October 2026.
- Cabinet Decision No. 116 of 2022 on the annual Taxable Income subject to Corporate Tax (AED 375,000) — UAE Ministry of Finance. Checked 16 October 2026.
- Registration for VAT (mandatory and voluntary thresholds) — Federal Tax Authority. Checked 16 October 2026.
- AED10,000 Penalty for Late Corporate Tax Registration (Cabinet Decision No. 10 of 2024) — UAE Ministry of Finance, 27 February 2024. Checked 16 October 2026.
- Ministry of Finance extends Small Business Relief to tax periods ending on or before 31 December 2029 (Ministerial Decision No. 131) — WAM via Aletihad, 7 August 2026. Checked 16 October 2026.