Company Formation in the UAE

• International Business Setup

The first decision in the UAE: where to set up, not only how

Since Federal Decree-Law No. 26 of 2020, followed by Federal Decree-Law No. 32 of 2021 on Commercial Companies, a foreign investor can fully own a mainland company in most activities without a local partner, with exceptions for activities of strategic impact. Alongside the mainland there are free zones, each with its own rules.

So every file starts with where the business will operate and who its customers are. You deal with LegalIn alone, from Egypt. We handle the in-country steps through our network of offices there, so you do not need to engage another firm.

• Is this route for you?

  • You target customers inside the UAE.
  • International trade or services run from a free zone.
  • An Egyptian company that wants a branch or subsidiary in the UAE.
  • Founders who need an entity to contract with UAE parties.

• Foreign ownership and investment regime

Full ownership in most activities, with a list of strategic activities

ItemDetails
Ownership100% on the mainland for most activities without an Emirati partner, and 100% in free zones
Legal basisFederal Decree-Law 26/2020, then Federal Decree-Law 32/2021 on Commercial Companies
ExceptionActivities of strategic impact, set by the Cabinet, where ownership may be restricted, including security and defence, telecoms, banking and insurance, commercial agencies, Hajj and Umrah, fishing and pearling
Licensing authorityThe competent authority in each emirate; in a free zone, the free zone authority

• Comparison

Mainland or free zone?

ItemMainlandFree zone
Foreign ownershipFull in most activities, with exceptionsFull
Selling in the local marketDirectUsually not allowed directly; through a licensed distributor, or a mainland branch or company
Licensing authorityThe competent authority in each emirateThe free zone authority and its rules
SuitsBusinesses targeting customers inside the UAEInternational trade and activity within the zone

• Available forms

Mainland company forms

The limited liability company is the most common form for foreign investors. Your Egyptian company can also open a UAE branch without a national service agent.

Limited liability company

The most common form for commercial and service activities.

Private and public joint stock companies

For larger projects or those planning a wider shareholder base.

General and limited partnerships

Available under the law; we assess their suitability case by case.

Branch of a foreign company

Your Egyptian company can open a UAE branch; we compare it with a standalone company for your case.

• How we handle the file

From Egypt to the licence

  1. Reviewing the activity and target customers.
  2. Choosing between mainland and free zones, and the emirate.
  3. Choosing the form and the ownership and management structure.
  4. Preparing and attesting documents.
  5. Obtaining the licence from the competent authority.
  6. Post-licence steps: tax registration and compliance requirements.

• Before we start

What we need to know

  • Your exact activity, and who and where your customers are.
  • The partners and their nationalities, and whether the investor is an individual or a company.
  • Whether you need a physical office or staff in the UAE.
  • How the new entity relates to your company in Egypt, if any.

This decides the emirate and licence type, and from it we set the document list.

• Common pitfalls

What can delay the file?

Choosing a free zone, then finding your customers are inside the UAE and need direct sales.

Assuming full ownership is available for every activity without checking the strategic activities list.

Registering an activity on the licence that does not match what the company actually does.

Ignoring tax registration after incorporation: companies are subject to federal corporate tax, even in free zones.

• FAQ

Questions we often hear before setting up in the UAE

Do I need an Emirati partner?

Not for most mainland activities, but activities of strategic impact have special rules.

Which is better: mainland or free zone?

It depends on where your customers are and on the activity; we compare both for your case before starting.

Can a free zone company sell inside the UAE?

Direct sales are usually not allowed; they go through a licensed distributor, or a mainland branch or company.

Can my Egyptian company open a branch in the UAE?

Yes, and a foreign company branch no longer needs a national service agent. We compare a branch with a standalone company for your case.

Do I need a firm in the UAE?

No. You deal with LegalIn, and we coordinate with our network of offices there.

Is the company taxed?

The UAE applies a federal corporate tax; we review registration and its requirements with your accountant as part of the file.

• Your next step

Considering the UAE?

Send us your activity and customers’ details. We settle mainland or free zone with you and the next step.

Submitting a request does not create an engagement with the firm. Your data is handled in line with our privacy policy.