Mainland LLC in United Arab Emirates
LLC · Formation from $4,100
Last verified: June 13, 2026
Corporate Tax
9.0%
State Tax
0.0%
Formation Cost
$4,100
Annual Fee
$3,000
Comparison Scores
Privacy, remote setup, banking, and tax efficiency
Calculate full formation cost
Break down one-time filing fees and recurring costs for any supported entity type.
Who Should Choose This?
Profiles that typically benefit from this entity
- Businesses planning to sell products or services directly to the local UAE market (B2C or B2B).
- Companies intending to bid on lucrative UAE government or semi-government contracts.
- Retailers, restaurants, and service providers needing a physical storefront in prime city locations.
- Entrepreneurs who want maximum flexibility in business activities and office locations across the UAE.
Who Should Avoid This?
Scenarios where another structure may be better
- Digital nomads or freelancers who do not need a physical office and operate entirely online.
- Businesses that only trade internationally and do not plan to sell to the UAE local market.
- Bootstrapped startups looking for the lowest possible setup and licensing costs.
Advantages
- +100% foreign ownership is permitted for most commercial and industrial activities without needing a local sponsor.
- +Direct and unrestricted access to the local UAE market without the need for a local distributor.
- +Ability to bid on lucrative UAE government and semi-government contracts.
- +No currency restrictions, allowing for 100% repatriation of capital and profits.
- +Flexibility to rent office space or open multiple branches anywhere within the UAE mainland.
- +A broad range of business activities can be combined under a single trade license.
Disadvantages
- -Subject to a 9% federal Corporate Tax on taxable profits exceeding AED 375,000.
- -Requires a physical office space and a registered tenancy contract (Ejari) for most licenses, increasing overhead.
- -Higher initial setup, licensing, and government fees compared to most Free Zone jurisdictions.
- -Stricter regulatory compliance, including mandatory financial record-keeping and potential audit requirements.
Formation Steps
Step 1: Determine your primary business activities and reserve a trade name with the Department of Economic Development (DED).
Step 2: Draft and notarize the Memorandum of Association (MoA) or a Local Service Agent agreement if required for your specific license.
Step 3: Lease a physical office space in the mainland and obtain an Ejari (official tenancy contract registration).
Step 4: Submit all legal documents, passport copies, and the Ejari to the DED to obtain initial approval.
Step 5: Pay the required DED license vouchers and market fees to receive your official Trade License.
Step 6: Register the company with the Ministry of Human Resources and Emiratisation (MOHRE) and GDRFA to process investor and employee visas.
Step 7: Open a corporate bank account and register for Corporate Tax and VAT with the Federal Tax Authority (FTA).
Cost Breakdown
Detailed breakdown of formation and ongoing costs
| Item | Type | Amount |
|---|---|---|
| DED Trade License Fee | Annual | $2,000 |
| Establishment Card & Compliance | Annual | $500 |
| Minimum Office Lease (Ejari) | Annual | $500 |
| Trade Name & Initial Approval | One-time | $200 |
| MoA Notarization | One-time | $300 |
| PRO / Agency Setup Fee | One-time | $600 |
| First year total | $4,100 | |
| Annual ongoing | $3,000 | |
Real-World Examples
Typical use cases for this entity type
- A global retail brand opening flagship stores in Dubai Mall and Mall of the Emirates, requiring a Mainland LLC to operate physical retail spaces.
- A construction and contracting firm bidding on major government infrastructure projects in Abu Dhabi and Dubai.
- A local B2B logistics and distribution company delivering goods directly to supermarkets and businesses across all seven Emirates.
Common Mistakes
Pitfalls to avoid during setup and operations
- Choosing the wrong business activity code, which can lead to operational restrictions or corporate bank account rejection.
- Underestimating the cost of mandatory physical office space and the associated Ejari registration in Dubai.
- Failing to register for Corporate Tax with the FTA on time, mistakenly assuming that 0% tax means no registration is required.
- Drafting a generic Memorandum of Association (MoA) without clear shareholder agreements, leading to future disputes.
- Delaying the corporate bank account opening process, which can take weeks due to strict KYC regulations in the UAE.
Other entity types
Other formation options in United Arab Emirates
Free Zone Company (FZCO)
- Tax
- 9.0%
- Formation
- $3,500
Free Zone Establishment (FZE)
- Tax
- 9.0%
- Formation
- $3,500
Offshore Company (IBC)
- Tax
- 9.0%
- Formation
- $2,000
Foreign Branch
- Tax
- 9.0%
- Formation
- $6,800
Representative Office
- Tax
- 9.0%
- Formation
- $4,080
Civil Company
- Tax
- 9.0%
- Formation
- $5,500
Sole Establishment
- Tax
- 9.0%
- Formation
- $3,500
Compare with Other Countries
| Country / Type | Tax | Formation | Annual |
|---|---|---|---|
| 🇦🇪 Mainland LLC(LLC) | 9.0% | $4,100 | $3,000 |
FAQ
Can a foreigner own 100% of a UAE Mainland LLC?
Yes. Following the 2021 Commercial Companies Law reforms, foreign investors can own 100% of a Mainland LLC for the vast majority of commercial and industrial activities without needing an Emirati sponsor.
Do I still need a local sponsor or agent?
For most commercial activities, no. However, certain strategic sectors (like defense or telecommunications) still require a local partner, and some professional civil companies require a Local Service Agent (LSA) who has no ownership stake.
What is the corporate tax rate for a Mainland LLC in 2026?
The UAE levies a 9% corporate tax on taxable net profits exceeding AED 375,000. Profits below this threshold are taxed at 0%. Small Business Relief may also apply for revenues under AED 3 million.
Can a Mainland LLC trade internationally?
Absolutely. A Mainland LLC has no geographical restrictions. It can trade directly within the local UAE market, across all Emirates, and internationally.
Is a physical office mandatory for a Mainland LLC?
Yes. To obtain and renew a Mainland trade license, you must have a physical office space and a valid Ejari (registered tenancy contract). Virtual offices are generally not accepted for standard DED licenses.
How long does it take to set up a Mainland LLC?
Typically, the process takes 1 to 3 weeks. The timeline can vary depending on whether your specific business activity requires external approvals from other government ministries.
Do I need to audit my financial statements?
Maintaining accurate financial records is mandatory for all businesses under the Corporate Tax law. Mandatory annual audits apply to companies with revenue exceeding AED 50 million or those in specific regulated sectors.
What is the main difference between a Mainland and Free Zone company?
Mainland companies can trade directly anywhere in the UAE and bid on government contracts. Free Zone companies are restricted to doing business within their specific zone or internationally, and must use a local distributor to sell goods to the UAE mainland.
Detailed Tax Rates
Corporate Income Tax
| From | To | Rate |
|---|---|---|
| $0 | $102,110 | 0.0% |
| $102,111 | No limit | 9.0% |
The UAE levies a 9% federal corporate tax on taxable profits exceeding AED 375,000. A Small Business Relief allows entities with revenue under AED 3 million to claim zero taxable income through the end of 2026.
Personal Income Tax (Top rate: 0.0%)
| From | To | Rate |
|---|---|---|
| $0 | No limit | 0.0% |
The UAE does not levy any personal income tax on individuals. Employees and business owners receive their salaries and dividends entirely tax-free at the personal level.
Capital Gains Tax
9.0%
Capital gains realized by a company are generally included in ordinary income and taxed at 9%, unless they qualify for the participation exemption (e.g., dividends and gains from qualifying shareholdings). There is no personal capital gains tax.
VAT / GST
5.0%
Registration Threshold: USD102,110
Non-resident providers of digital services and e-commerce platforms must register for VAT from their first taxable sale, as there is no registration threshold for foreign businesses.
Withholding Tax
The UAE currently applies a 0% domestic withholding tax rate on all cross-border payments, including dividends, royalties, and interest. The UAE also has a vast network of over 140 double tax treaties.
Payroll & Social Security
Social security contributions only apply to UAE and GCC nationals (typically 15% for employers and 11% for employees). Expatriate employees do not pay social security but are entitled to an employer-funded end-of-service gratuity.
Other Taxes
Excise Tax
Levied at 50% on carbonated drinks and sweetened products, and 100% on tobacco products and energy drinks.
Property Transfer & Municipal Tax
Dubai charges a 4% transfer fee on real estate transactions. Additionally, a 5% municipal tax is levied on residential rental value (10% for commercial), usually collected through utility bills.
Banking & Payments
Wio Bank
Remote-friendlyA leading digital bank in the UAE offering fast account setup for SMEs and mainland companies with an Emirates ID.
Emirates NBD
One of the largest traditional banks in the UAE, ideal for high-volume corporate banking but requires physical presence.
Mashreq NeoBiz
Remote-friendlyA dedicated digital business banking platform by Mashreq Bank, offering multi-currency accounts.
Wise Business
Remote-friendlyExcellent for international transfers and multi-currency holding, though local AED features may have limitations.
Payment Gateways
Stripe, PayTabs, Telr, Checkout.com, PayPal
Currency
AED
Multi-Currency: Supported
Account Opening
Opening a corporate bank account for a UAE Mainland LLC can be challenging and time-consuming due to strict KYC and AML regulations. While digital banks like Wio have streamlined the process, traditional banks often require the founder to have a valid Emirates ID and be physically present. Non-resident founders may face processing times of several weeks to months.
Practical Information
Timezone
UTC+4
Business Language
Arabic (Official) and English (Business)
Legal System
Civil Law (influenced by Islamic Sharia Law)
Ease of Doing Business
#16
IP Protection
Robust IP framework governed by the Ministry of Economy, offering trademark, patent, and copyright registration in line with WIPO standards.
Double Tax Treaties
142 countries
Notable treaties: United Kingdom, India, China, Germany, Singapore, Turkey
Visa & Residency Options
UAE Golden Visa (10-Year)
A long-term residency visa for investors, entrepreneurs, and highly skilled professionals, typically requiring a significant public investment or a successful startup.
Investor/Partner Visa (2-Year)
The standard residency visa granted to shareholders of a UAE Mainland LLC, allowing them to live, work, and sponsor dependents in the UAE.
Green Visa (5-Year)
A 5-year residency track for freelancers, self-employed individuals, and skilled workers that does not require a local sponsor.
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Changelog
Data updates and changes on this page
Updated corporate tax thresholds, 100% foreign ownership rules, and 2026 compliance requirements for UAE Mainland LLCs.
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