Mainland UAE - Eco system
Mainland companies are entities registered directly with the Department of Economic Development (DED) in each of the seven Emirates (Abu Dhabi, Dubai, Sharjah, Ajman, Umm Al Quwain, Fujairah, and Ras Al Khaimah), rather than in a designated Free Zone.
- Unrestricted market access: Can conduct business anywhere in the UAE
- 100% foreign ownership: Permitted in most sectors since 2021 reforms
- Government contracts: Eligible to bid for government tenders
- No geographic limitations: Unlike free zone entities
- Subject to federal legal framework and under the authority of each department of economy of each Emirate.
Business activities are broadly categorized into commercial (trading, e-commerce, retail) , professional (consulting, services, design, education, healthcare), industrial activities (manufacturing, construction, agriculture, mining, ..) and other (tourism, real estate, transport, financial intermediation, ..). Under each category, there is a list of activities which will be used to described the business activity of each company. To be noted also that some activities can grouped together and some are incompatible together and finally some will be subject to more restrictions.
Primary legislation and provision related to accounting
Law | Official name / link | Key provisions |
Commercial Companies Law | • Company concept (1-9) formation & governance (10-38), type of companies (39 -301), Termination of companies (302 ..) • Mandatory accounts (annual financial statement - international accounting standards and principles) & audits (Articles 27 & 246) • 5-year record retention (article 26) • Distribution of profit, change in capital structure, responsibilities, etc. | |
VAT Law | • 5% standard rate on supplies and imports (article 3), zero-rates supplies (article 45) and exempt supplies (art 46). • Registration threshold: AED 375,000 (article 13 federal decree + art. 7 Cabinet decision ), Invoicing format requirement (art. 65 to 70) • Date of supply (art 25), invoice (art. 67) & credit note (art. 70) to be issued within 14 days • 5-year VAT record retention (Article 78) | |
Corporate Tax Law | • article 3 : 0% on taxable income up to AED 375k AED, then 9% tax on net profits exceeding the threshold (except for qualifying income - art. 18) and multinational entreprises subject 15% tax rate. • Deductible expenses limitations (art 28-33) : interest, entertainment, fines, donations, profit distributions, etc. • 7-year record retention for tax purposes (art. 56) • Effective: Tax periods from June 1, 2023 (art. 69) | |
Audit Requirements (Tax) | Ministerial Decision No. 82 of 2023 (amended 2025) | • Audited financials required if revenue > AED 50M (art. 2) • All Tax Groups shall prepare and maintain audited special purpose financial statement in accordance with the form, procedure and rules specified by the Authority |
In a nutshell :
Subject to federal legal framework, mainland companies need to maintain accounting records for 7 years (income tax law), prepare financial statement as per international standards and must have their financial accounts audited (by are registered auditor - independent, qualified & appointed by the general assembly).
Key deadlines : audited financial statement should be ready 4 months after financial year-end, CIT return 9 months after tax period end and VAT return if Quarterly: Revenue < AED 150M (28 days after period end) or if Monthly: Revenue ≥ AED 150M (28 days after period end). Trade licence renewal annual process with DED.
Abu Dhabi Free Zone Licensing Authority:
Abu Dhabi Free zones :
Masdar
- incroporated in 2009, located approximately 6km² near Abu Dhabi International Airport, Masdar City is home to over 400 companies including the International Renewable Energy Agency (IRENA) and Siemens regional headquarters. Masdar specialized in renewable energy and sustainability, allow Fz-LLC, branch of foreign company or branch of UAE-based company (IFRS financial statements, mandatory audit & requested license renewal).
Media Zone Authority - TOWFOUR54
- Named after Abu Dhabi's geographical coordinates (24° North, 54° East), TWOFOUR54 was established in 2008 to develop Abu Dhabi's media industry and transform the capital into a global media hub. The free zone currently encompasses over 400 companies, from international brands like CNN, Sky News Arabia, and Cartoon Network Studios to a wide range of SMEs and freelancers. Focus on media-entertainment-gaming free zone, offering an ecosystem to new company, branch expansion or freelancers to reinforce Abu Dhabi’s position as a global content hub and the preferred home of the world’s leading content creators.
Abu Dhabi Airports Free Zone
- established in 2012 as a subsidiary of Abu Dhabi Airports, as an integrated airport free zone, ADAFZ offers solutions for both airside and landside facilities, and offers a full range of property solutions including grade A offices, flexi desks, warehouses, logistics and distribution centers, built-to-suit facilities, and serviced plots of land. Specific & additional regulations : Registration regulations, Employment regulations & License Regulations.
KIZAD - or KEZAD
- established in 2006, Khalifa Economic Zones Abu Dhabi offers both Mainland (Domestic Economic Zone) and Free Zone facilities for businesses to choose facilities based on their business strategy and requirements, allowing LLC, branch of foreign company or branch of UAE-based company. KEZAD added a list of rules and regulations which can be easily found (link) on their website.
Abu Dhabi Global Market (ADGM):
- Financial free zone created following a Federal decree (2013), allowing 3 types of commercial licenses :Financial, Non-Financial and retail and permitting a wide range of business structures to use. Important to mention that ADGM follow independent authorities : the Registration Authority (RA), the Financial Services Regulatory Authority (FSRA), ADGM Courts & ADGM Authority.
Dubai Free Zone Licensing Authorities:
Dubai hosts over 40 specialized free zones, making it the emirate with the highest concentration of free zone authorities in the UAE. From the world's largest commodities trading hub (DMCC) to the region's leading logistics center (JAFZA) and premier financial center (DIFC), Dubai's free zones offer unparalleled opportunities across virtually every business sector. Each zone operates under specific regulatory frameworks with distinct audit requirements and deadlines.
Main Free zones :
DMCC Dubai Multi Commodities Centre (DMCC)
- is the world's leading free zone and Government of Dubai Authority for commodities trade and enterprise. Located in the heart of Dubai at Jumeirah Lakes Towers (JLT), DMCC is home to over 24,000 companies, covering various sector Commodities trading (gold, diamonds, precious metal, energy, agri, metals), Business services (consultancy, advisory, IT, marketing & comm, ..) and trading / e-commerce (import/export, distribution, logistic, general trading, etc..). DMCC legal framework is available here. Branch offices, single or multiple shareholder company allowed (FZ-LLC), with 100% foreign ownership and requiring audited annual IFRS financial statements (art. 73.2 DMCCA regulation) .
JAFZA
- Established in 1985, Jebel Ali Free Zone (JAFZA) is the flagship free zone under DP World and forms an essential component of DP World UAE's comprehensive business hub. As of 2023, JAFZA is home to over 9,500 companies from more than 100 countries. Located strategically between Jebel Ali Port (one of the world's largest ports) and Al Maktoum International Airport, JAFZA provides businesses with unparalleled connectivity to global markets. Covering various sector such as logistic & trade (port logistic, cargo, etc.), Business services (e-commerce, petrochemical, prof. services, etc.) and Manufacturing (electronic & electrical, automotive part, food & agri..), JAFZA allow the following legal structures : Free Zone establishment (FZE - single shareholder company), Free Zone company (LLC with 2-50 shareholders), Branch office (foreign or UAE company), their Rules and regulations at JAFZA have been grouped in 1 page. Branch offices, single or multiple shareholder company allowed (FZ-LLC), with 100% foreign ownership and requiring audited annual financial statements.
DIFC (Dubai International Financial Centre)
- Established in 2004 via UAE Federal Decree No. 35 of 2004, Dubai International Financial Centre (DIFC) is a Financial Free Zone defined in Federal Law No. 8 of 2004, as an independent jurisdiction within the UAE (alongside ADGM). DIFC is empowered to create its own legal and regulatory framework for all civil and commercial matters. Home to over 5,000 companies and more than 36,000 business professionals. The laws applicable to companies operating in DIFC are listed here. Art.6.2 of the company regulations precise the requirement of financial statements prepared by a Company in accordance with and comply with the International Financial Reporting Standards followed by annual audit requirement (do not apply to any Company that is an Authorised Person, Public Listed Company or a Recognised Person)
Dubai Development Authority
- Dubai Internet city :
- Dubai production city : created in 2003 as an ecosystem for media production, printing, publishing and packaging.
- Dubai Studio city :
- Dubai Outsource city
- Dubai Science park : free zone community that serves the entire value chain of the science, health and pharma sectors
- Dubai Design district : aims to inspire, enable and bring together talent in all its forms within the design sector
- Dubai Wholesale city :
- Dubai Knowledge city
- Dubai Media City
- Dubai International academic city
Dubai Airport Free Zone Authority (DAFZA)
Dubai Airport Free Zone (DAFZA) is strategically located adjacent to Dubai International Airport, providing businesses with direct airport access and excellent logistics connectivity. DAFZA focuses primarily on aviation-related services, logistics, and e-commerce sectors.
Dubai Silicon Oasis Authority (DSOA)
Dubai Silicon Oasis is an integrated free zone technology park spanning over 7.2 square kilometers. It focuses on technology, innovation, electronics, and high-tech manufacturing sectors. Their regulations can be found here and the need to maintain accounting records, produce annual financial statements (fair & true view) and audited (art.66 to 69 implementing regulations 2023).
Other Free Zone Authorities in Dubai
Most Dubai free zones follow similar audit requirements with deadlines typically ranging from 90 days to 6 months after financial year-end. All require IFRS-compliant financial statements and mandate appointment of approved auditors. Always verify specific requirements with the respective free zone authority.
- Dubai Martime City : Maritime, shipping & marine services
- Dubai Healthcare city : Healthcare, medical services
- Meydan Free zone : sport, entertainment business
- Dubai South : logistic and aviation
- Dubai World trade Centre : Trade, exhibitions, events
- International City for Humanitarian services : Humanitarian, NGO services
- Trakhees (Dubai port) : Maritime and Port operations
Sharjah Free Zone Licensing Authority:
Sharjah, strategically positioned between Dubai and other northern emirates, operates several specialized free zones that serve as important industrial and commercial hubs. The emirate's free zones offer cost-effective alternatives to Dubai while maintaining proximity to major ports and airports. Companies in Sharjah free zones benefit from competitive setup costs and flexible audit timelines.
Sharjah Free zones :
- Sharjah International Airport Free Zone 1995, Adjacent to Sharjah International Airport, Access to Port Khalid, Port Khorfakkan, and Hamriyah Free Zone Port, Manufacturing, logistics, technology, e-commerce, trading, business services.
- Hamriyah Free Zone Authority
- Sharjah Publishing City
- Sharjah Research Technology & Innovation Park
- Sharjah Media City – Shams
Ajman Free Zone Licensing Authority:
Ajman Free Zone (AFZA), established in 1988, is one of the UAE's oldest free zones and offers one of the most cost-effective business setup options in the Emirates. Located strategically between Dubai and Sharjah, AFZA provides easy access to major airports and ports while maintaining competitive pricing.
Ajman Free zones :
Ras AlKhaimah Free Zone Licensing Authority:
Ras Al Khaimah Economic Zone (RAKEZ) was formed through the merger of RAK Free Trade Zone (RAK FTZ) and RAK Investment Authority (RAKIA), creating one of the UAE's most cost-effective and business-friendly free zones. RAKEZ serves as a gateway to markets across the Middle East, North Africa, Europe, and Central Asia.
Ras AlKhaimah Free zones :
Fujairah Free Zone Licensing Authority:
Fujairah, located on the UAE's eastern coast, serves as a strategic gateway to the Indian Ocean and global markets. The emirate operates multiple free zones offering unique advantages for businesses in logistics, maritime, oil trading, and creative industries.
Umm AlQuwain Free Zone Licensing Authority:
"High quality of life for a cohesive society built on a sustainable economy and attractive tourism enhanced by a digital government" was the slogan for its vision 2023 based 4 principles : Citizen first, corporate partnership, supreme economic interest and Human capital. Part of its eco system, Umm Al Quwain offer 1 free zone.
Umm Al Quwain Free Trade Zone (UAQ FTZ) is a affordable and flexible free zone and located between Ras Al Khaimah and Ajman, UAQ FTZ provides easy access to Dubai and Sharjah markets.
