LLC · LLCMainland limited liability company
Law: Federal Decree-Law No. 32 of 2021 on Commercial Companies, as amended by Federal Decree-Law No. 20 of 2025
The usual company for doing business in the UAE market, licensed by an emirate's economic department. A separate legal person whose partners are liable up to their capital contributions.
- Members and managers
- Up to 50 partners; one natural or legal person may own an LLC alone, and companies may be partners. One or more managers appointed by the partners. Full foreign ownership is allowed for most activities since 2021; activities of strategic impact, such as defence, banking, insurance and telecoms, need regulator approval (Cabinet Resolution 55 of 2021).
- Share capital
- No federal minimum; emirate licensing authorities may set amounts for some activities. Several classes of shares are allowed since the 2025 amendment.
- Public register shows
- Trade-licence data — name, licence number, activities, legal form and status — on the emirate's economic-department portal. Beneficial-ownership data are not public.
- Accounts and audit
- Statutory accounting records; the Commercial Companies Law requires an LLC to appoint an auditor. The trade licence is renewed every year with the emirate authority.
- Tax
- Corporate tax at 0% on taxable income up to AED 375,000 and 9% above, for tax periods starting on or after 1 June 2023 (Federal Decree-Law 47 of 2022). No withholding tax on payments to non-residents. Small Business Relief, for revenue of AED 3 million or less, runs to tax periods ending on or before 31 December 2029.
How owners use it
- Operating company for trading, services and contracting in the UAE market
- Regional headquarters with staff and residence visas
- Company for mainland government contracts
What comes with it
- Beneficial-ownership data are filed within 60 days of licensing and refiled on change, alongside the registers of partners and nominee board members
- Substance is tested through corporate tax — tax residence, place of effective management and transfer pricing — now that the Economic Substance Regulations no longer apply
- Members of a multinational group with consolidated revenue of EUR 750 million or more pay the 15% Domestic Minimum Top-up Tax from financial years starting on or after 1 January 2025
- Banks usually ask for the trade licence, memorandum of association, share register, a beneficial-ownership declaration with passports and proof of address, the tenancy contract (Ejari), the corporate tax registration number, accounts and evidence of source of funds and source of wealth
Company · FZE · FZCO · FZ-LLCFree zone company
Law: Each free zone's own company regulations, issued under emirate decrees — for example the DMCCA Company Regulations (2020, amended 2024) and the JAFZA Implementing Regulations
A company licensed by one of the commercial free zones, such as DMCC or JAFZA. A UAE juridical person with limited liability, subject to federal corporate tax, anti-money-laundering and beneficial-ownership law. FZE commonly denotes a company with one shareholder and FZCO or FZ-LLC one with several, though naming varies by zone.
- Members and officers
- Corporate shareholders are allowed and full foreign ownership is the norm. DMCC requires directors, a manager and a secretary; a corporate services provider may act as secretary. A lease or flexi-desk in the zone is generally needed for the licence.
- Public register shows
- A zone-level company search with name, licence number, status and activities. Shareholder and beneficial-ownership data are filed with the free-zone authority and are not published.
- Accounts and audit
- Most zones require audited accounts to renew the licence. In DMCC, renewal is blocked if the beneficial-ownership register is not current. A Qualifying Free Zone Person must prepare audited financial statements.
- Tax
- A Qualifying Free Zone Person pays 0% on qualifying income and 9% on other taxable income (Cabinet Decision 100 of 2023); otherwise the mainland rates apply. No withholding tax. The 15% Domestic Minimum Top-up Tax reaches members of large multinational groups in free zones too.
How owners use it
- Regional trading and distribution hub — DMCC for commodities, JAFZA for logistics
- Regional holding company
- Service company employing staff based in the UAE
- IP or treasury company that meets the qualifying free-zone conditions
What comes with it
- The 0% rate needs adequate substance in the zone (assets, staff and operating expenditure), qualifying income, non-qualifying revenue within the lower of 5% of total revenue or AED 5 million, transfer-pricing compliance, audited accounts and no election into the 9% rate
- Failing one condition removes qualifying status for that tax period and the following four
- Ministerial Decision 229 of 2025, retroactive to 1 June 2023, sets the qualifying activities, including commodity trading, treasury services on own account and distribution in or from designated zones
- Banks look for evidence of staff and premises in the zone, the corporate tax registration and qualifying-status analysis, audited accounts and, for commodity flows, the business model
Company · LtdADGM private company limited by shares
Law: ADGM Companies Regulations 2020
A company of Abu Dhabi Global Market, a financial free zone that applies English common law directly. A separate legal person with limited liability and a registered office in ADGM.
- Members and officers
- At least one shareholder and one director; a registered office in ADGM.
- Public register shows
- Name, number, status, registered office, directors and shareholders, and since April 2026 whether a shareholder or director acts as a nominee. The beneficial-ownership register is not public; the Registration Authority and competent authorities have access.
- Accounts and annual filings
- Annual accounts and a confirmation statement to the Registration Authority; small companies can be exempt from audit. Beneficial-ownership changes are notified within 15 days.
- Tax
- Federal corporate tax applies — 9%, or 0% on qualifying income for a Qualifying Free Zone Person. No withholding tax.
How owners use it
- Holding company for a regional group
- Financing and investment SPV
- Fund and asset-management vehicle licensed by the Financial Services Regulatory Authority (FSRA)
What comes with it
- Prescribed information on nominee directors and their nominators must be kept up to date, and nominees are flagged on the public register
- The 0% rate depends on the same qualifying free-zone conditions as in the commercial free zones
- Banks ask for the register extract, the articles, the register of beneficial owners and the corporate tax registration
Company · Ltd · Prescribed CompanyDIFC private company and Prescribed Company
Law: DIFC Companies Law (DIFC Law No. 5 of 2018); DIFC Prescribed Company Regulations 2024
Companies of the Dubai International Financial Centre, a financial free zone with its own common-law framework and courts. A Prescribed Company is a passive vehicle with no employees, whose registered office and administration are provided by a DFSA-registered corporate service provider.
- Prescribed Company
- Qualifies by one route — control from the GCC, holding GCC registrable assets, a qualifying purpose such as aviation, crowdfunding, intellectual property or maritime structures, or a director employed by a corporate service provider. The 2024 Regulations, in force 15 July 2024, replaced those of 2019.
- Public register shows
- Name, number, status and registered office. The registers of beneficial owners and of nominee directors are filed with the Registrar and are not public.
- Tax
- Federal corporate tax applies — 9%, or 0% on qualifying income for a Qualifying Free Zone Person. No withholding tax.
How owners use it
- Holding company for GCC operating subsidiaries
- Financing, aircraft or ship SPV
What comes with it
- A Prescribed Company's passive design means its substance usually sits with the group
- Banks ask for the register of directors and shareholders, the beneficial-ownership register and, for a Prescribed Company, a letter from its corporate service provider
FoundationADGM and DIFC foundation
Law: ADGM Foundations Regulations 2017; DIFC Foundations Law (DIFC Law No. 3 of 2018)
A separate legal person with no shareholders, holding its assets for its purposes or beneficiaries, registered in one of the two financial free zones. RAK ICC also offers foundations under its own regulations.
- Council and guardian
- In ADGM, a council of at least two members, individuals or companies, and a registered office in ADGM. A guardian is mandatory where the foundation has charitable or specified non-charitable purposes.
- Beneficial owners
- In ADGM, the founder, council members other than ADGM-registered company service providers, any guardian, named beneficiaries or a class designee, and anyone else with ultimate control. A DIFC foundation falls under the DIFC beneficial-ownership rules.
- Tax
- Federal corporate tax applies. A family foundation that meets the conditions can apply to the Federal Tax Authority to be treated as tax-transparent (Article 17 of the corporate tax law).
How owners use it
- Family-wealth foundation holding operating-company shares under a common-law court system
- Family foundation holding GCC assets under the DIFC's common-law framework and courts
What comes with it
- In ADGM the founder, any guardian and every named beneficiary is a beneficial owner, whatever their interest, as is every council member other than a registered company service provider
- Tax transparency is not automatic; the foundation applies to the Federal Tax Authority and must meet the conditions
- Banks ask for the charter and by-laws, KYC on the council and guardian, a summary of any letter of wishes and the founder's source of wealth
CompanyRAK ICC international company
Law: RAK ICC Business Companies Regulations 2018
A company of the Ras Al Khaimah International Corporate Centre, formed and maintained only through a registered agent approved by the registry. Without a separate licence it may not trade in the UAE market, and it does not by itself give UAE residence visas.
- Registered agent
- Incorporation and maintenance only through an approved registered agent, who keeps the register of beneficial owners and provides it to the regulator on request.
- Accounts
- Accounting records must be kept.
- Tax
- A UAE juridical person that must register for corporate tax, at 9% by default. It may be resident in the UAE or, if effectively managed abroad, possibly elsewhere, depending on the facts.
How owners use it
- Holding company for regional or international shareholdings
- Property-holding company in designated areas
- Family-office holding company under a RAK ICC foundation
- Joint-venture vehicle
What comes with it
- Where the company is effectively managed bears on where it is tax resident
- UAE banks often treat companies without a trade licence as higher risk, and ask where the company is managed, its tax residence, its corporate tax registration, its source of funds and the operating business it holds