The most common UAE company legal forms
For founders from Russia, the CIS and Europe the choice usually comes down to five options: a mainland LLC, a free zone FZE or FZCO, a branch of a foreign company, or a representative office. The form is tied to the jurisdiction: an LLC is registered with the emirate's economic department, while an FZE or FZCO is registered with the authority of a particular free zone. So it pays to decide first where you will trade — see Free Zone vs Mainland vs Offshore.
Mainland LLC
The limited liability company is the standard vehicle for doing business on the UAE domestic market: selling directly to local customers, bidding for contracts and opening outlets. Shareholders' liability is limited to their shares.
- Since 2021, 100% foreign ownership without a local partner is allowed for most activities; restrictions remain for certain activities, so we check your specific activity code.
- One or several shareholders, individuals or companies.
- Capital and office requirements depend on the emirate and the activity.
- The constitutional document is the Memorandum of Association (MoA), signed before a notary or electronically.
FZE and FZCO in a free zone
Free zone companies are registered under the rules of the individual zone. Traditionally an FZE (Free Zone Establishment) has a single shareholder and an FZCO (Free Zone Company) has several. In some zones, such as DMCC or IFZA, the distinction has become largely nominal and the zone's own rules determine the label. What both share:
- 100% foreign ownership;
- limited liability for shareholders;
- trading within the free zone and outside the UAE; doing business on the mainland normally needs a distributor, an additional permit or a branch;
- a visa allocation that depends on the package and office size.
You can compare zones by activity in our UAE free zone catalogue.
Branches and representative offices
A branch is not a separate legal entity: the parent company is liable for its obligations. It suits an established foreign business that wants to carry out the same activity in the UAE in its own name. You will need the parent's legalised corporate documents and a board resolution to open the branch.
A representative office is generally limited to marketing and finding partners — as a rule it cannot sign commercial contracts or earn revenue. A company registered in one free zone may also open a branch in another zone or on the mainland. We arrange translation and legalisation of the parent's documents — see powers of attorney and legalisation.
Choosing a form: side-by-side
| Form | Separate entity | Market | Typical use |
|---|---|---|---|
| LLC (mainland) | Yes | Whole of the UAE | Retail, services to local clients, public contracts |
| FZE / FZCO | Yes | Free zone and export | International trade, consulting, IT, holding |
| Branch | No | Depends on where registered | An existing parent with a track record |
| Representative office | No | No commercial activity | Marketing and market research |
Other factors matter too: banking (some banks are more comfortable with mainland companies that have a real office), tax — Corporate Tax and VAT apply to every form, and free zone incentives depend on meeting the qualifying conditions — and your visa plans.
What we do and what it costs
- We review your business plan, target markets and shareholder structure and recommend a form and jurisdiction with reasons.
- We draft the MoA or articles with the clauses you need: share split, exit of a shareholder, veto rights, succession to shares.
- We register the company end to end, including remotely under a power of attorney.
A consultation on choosing a form costs from AED 750 for 60 minutes (credited if you sign a contract). Registration is a fixed-price project from AED 5,000; government fees and translations are paid separately and listed in the estimate. More on the overall process: company formation in the UAE.
FAQ
For most activities, yes: 100% foreign ownership has been permitted since 2021. Some activities remain restricted, so we check your specific activity code before registration.
Traditionally an FZE has one shareholder and an FZCO has several. In a number of free zones the difference is now largely formal and the zone's own rules apply.
Usually not directly, or only with restrictions: you may need a distributor, an additional permit or a mainland branch. The rules vary by zone and emirate.
Yes, but it typically means registering a new company or branch and moving contracts and bank accounts. Getting it right at the start is cheaper.