Mainland Limited Liability Company (LLC)
شركة ذات مسؤولية محدودة
Company formation in United Arab Emirates
The LLC is best suited for: Businesses that need to sell goods or services directly to the UAE local market, Government contractors and companies bidding on public tenders, Retail, hospitality, and real-estate-related businesses, Companies planning to scale across multiple emirates. Mainland LLCs are subject to the standard UAE corporate tax regime: 0% on taxable income up to AED 375,000 and 9% on income above that threshold. There is no special qualifying exemption as with free zone entities — all mainland income is taxable at the standard rate. VAT at 5% applies to most goods and services. The company must register with the FTA, file annual corporate tax returns, and maintain audited financial statements if revenue exceeds certain thresholds. No withholding tax applies on outbound payments.
- Businesses that need to sell goods or services directly to the UAE local market
- Government contractors and companies bidding on public tenders
- Retail, hospitality, and real-estate-related businesses
- Companies planning to scale across multiple emirates
Key Facts
Step-by-Step Formation Process
Obtain initial approval from the Department of Economic Development (DED)
Apply online via the DED portal (e.g., Dubai DET, Abu Dhabi ADDED) specifying your business activity, legal form (LLC), and proposed trade name. The DED checks name availability and activity eligibility.
Draft and notarise the Memorandum of Association (MOA)
Prepare the MOA detailing shareholders, capital, and management. Since the 2020 Commercial Companies Law amendment, most activities allow 100% foreign ownership — but some strategic sectors still require 51% Emirati ownership. Have the MOA attested by a notary public or through the DED's digital channel.
Secure office space and an Ejari/tenancy contract
Lease a physical office or co-working space that meets the DED's minimum size requirements for your activity. Register the tenancy contract through Ejari (in Dubai) or the equivalent system in other emirates.
Obtain external approvals (if applicable)
Certain activities require additional clearances — for example, food-related businesses need approval from the municipality, educational services need KHDA approval, and healthcare needs DHA/DOH approval. This step can significantly extend the timeline.
Pay fees and collect the trade licence
Submit all documents and pay the licence issuance fee, establishment card fee, and any associated charges. The DED issues the trade licence once everything is in order.
Register for VAT and corporate tax
Register with the Federal Tax Authority (FTA) for corporate tax. If your taxable supplies exceed or are expected to exceed AED 375,000, VAT registration is mandatory. Voluntary registration is available above AED 187,500.
Required Documents
- Passport copies of all shareholders and directors
- Proof of residential address for each shareholder
- Completed DED application form
- Memorandum of Association (MOA), notarised
- Ejari or tenancy contract for the registered office
- No Objection Certificate (NOC) if a shareholder is UAE-resident under another sponsor
- External approval letters (activity-dependent — e.g., municipality, KHDA, DHA)
- Board resolution appointing the manager/director
Cost Overview
Tax Treatment
Mainland LLCs are subject to the standard UAE corporate tax regime: 0% on taxable income up to AED 375,000 and 9% on income above that threshold. There is no special qualifying exemption as with free zone entities — all mainland income is taxable at the standard rate. VAT at 5% applies to most goods and services. The company must register with the FTA, file annual corporate tax returns, and maintain audited financial statements if revenue exceeds certain thresholds. No withholding tax applies on outbound payments.
Pros & Cons
- 100% foreign ownership now available for most commercial activities
- Unrestricted access to the entire UAE market — can trade freely with individuals, businesses, and government
- Eligible to bid on government contracts and tenders
- Wider range of permitted business activities compared to most free zones
- Stronger perceived credibility with local banks and partners
- No restriction on the number of visas — visa quota scales with office size
- Higher setup and annual costs compared to free zone options
- Mandatory physical office lease (flexi-desk not accepted for most activities)
- Some strategic activities still require a UAE national as majority shareholder
- More regulatory touchpoints — DED, municipality, FTA, immigration
- Annual licence renewal involves re-submitting the tenancy contract and paying renewal fees
- Audit and bookkeeping requirements are more rigorous for larger entities
Other Structures in United Arab Emirates
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Get StartedThis content is educational and does not constitute legal or tax advice. Always consult a qualified professional for your specific situation. Data last verified March 2026.