What is Mainland UAE Company (LLC)?
A mainland UAE LLC is a Limited Liability Company registered with an emirate's Department of Economic Development (DED) — Dubai DED, Abu Dhabi DED, etc. Since 2021, 100% foreign ownership has been allowed for most activities. Can trade across the UAE without restriction (unlike Free Zones).
Current Rate (Annual)
0% on first AED 375k Corporate Tax, 9% above; 5% VAT
Example
A founder incorporates a Dubai mainland LLC with the DED for general trading, allowing them to sell directly to mainland UAE customers without going through a Free Zone or local sponsor.
How Mainland UAE Company (LLC) works in United Arab Emirates
A UAE mainland LLC is registered with one of the seven emirate-level Departments of Economic Development (DED) — Dubai DED, Abu Dhabi Department of Economic Development (ADDED), Sharjah Economic Development Department, and so on. It is the standard structure for businesses that need to trade unrestricted across the UAE.
**100% foreign ownership (since 2021)**
Under the amended Commercial Companies Law 2021, foreign nationals can own 100% of mainland LLCs for most commercial activities. A small list of 'strategic' activities (utilities, defence, certain telecoms, oil/gas) still require UAE national participation. For standard trading, consultancy, and service businesses, a local sponsor or Emirati partner is no longer required.
**Unlimited mainland trading**
Unlike Free Zone companies, a mainland LLC can trade directly with any customer across the UAE with no restriction. This makes it preferable for businesses that rely on UAE-based customers — retail, hospitality, construction, healthcare, professional services.
**License types**
- Commercial license: for buying and selling goods - Professional/service license: for professional services (consulting, IT, legal, etc.) - Industrial license: for manufacturing
A business activity list (from hundreds of permitted activities) is appended to each license. You can add multiple related activities to one license.
**Corporate Tax**
Mainland LLCs are taxed at 0% on the first AED 375,000 of taxable income and 9% above. They cannot access the QFZP 0% rate (which is reserved for Free Zone entities). The annual Corporate Tax return is filed via EmaraTax within 9 months of the financial year-end.
**Costs**
DED license fees vary by activity and emirate. A typical Dubai mainland LLC trade license costs AED 12,000-25,000/year for the license itself, plus a registered office address (Ejari contract, minimum AED 15,000-20,000/year for a physical office, or virtual office where permitted by activity type).
Related terms
UAE Corporate Tax is the federal tax on business profits introduced by Federal Decree-Law No. 47 of 2022, effective 1 June 2023. It applies a 0% rate on the first AED 375,000 of taxable income and 9% above. Qualifying Free Zone Persons can pay 0% on Qualifying Income. Multinational groups within Pillar Two scope face a 15% Domestic Minimum Top-up Tax from 1 January 2025.
UAE VAT is a 5% federal tax on most goods and services, introduced 1 January 2018. Mandatory registration at AED 375,000 annual turnover; voluntary at AED 187,500. Standard rate 5%; some supplies are zero-rated (exports, healthcare, education) or exempt (residential rent, financial services, local passenger transport).
UAE Free Zones are special economic zones offering 100% foreign ownership, customs benefits, and (subject to QFZP rules) preferential 0% Corporate Tax on Qualifying Income. There are 40+ Free Zones across the seven emirates, each with their own Authority and licensing rules.
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