Business can be done in UAE either within the various Free Zones in UAE or outside the Free Zone. Within Free Zones, 100% foreign ownership is possible whereas in non-Free Zone areas, 51% local ownership is mandatory. Any movement of goods from the Free Zone into non-Free Zone area is deemed to be imports into UAE and subject to customs duty. Imports into Free Zone are not subject to customs duty. Presently, excepting foreign bank branches and oil companies, there is no corporate income tax in UAE. Further, there is no personal income tax in UAE.

In non-Free Zone area, a limited liability company (LLC) can be established with 51% local ownership and 49% foreign ownership. In Dubai, a minimum paid up capital of AED 300,000 (One US$=AED 3.67) is required. For obtaining trade licence physical office is a must.

Business can be established in a Free Zone with 100% foreign ownership. Physical presence is a must. Following options are possible

- First option is to set up a branch of an existing overseas foreign Company

- Second option is to set up a Free Zone Establishment (“FZE”) in which the sole shareholder is an individual or corporate (minimum capital varies- e.g. AED 1,000,000 in JAFZA, AED 150,000 in SAIF Zone, AED 100,000 in RAKFTZ)

- Third option is to set up a Free Zone Company (“FZC”) in which there are two or more shareholders who could be individuals or corporate (minimum capital varies- e.g. AED 500,000 in JAFZA, AED 150,000 in SAIF Zone, AED 100,000 in RAKFTZ)