When considering starting a business in the UAE, one of the most popular options is setting up a Mainland Company. Unlike free zones or offshore setups, a mainland license allows you to operate anywhere in the UAE and beyond – with maximum flexibility.
But what about taxes? Let’s dive into the details of how Mainland Companies are taxed, what you need to know before you start, and why this setup might be the right choice for your business. How to find accountant office in Dubai for company? Contact with us.
✅ What is a Mainland company?
A Mainland Company is registered under the Department of Economic Development (DED) of any Emirate (e.g., Dubai, Abu Dhabi, Sharjah). This type of entity can operate across the entire UAE, work with government clients, and open branches anywhere.
It’s ideal for businesses that:
- Want to trade locally and internationally.
- Plan to grow and hire more employees.
- Want to bid on UAE government contracts.
💸 Taxes for Mainland companies
For a long time, the UAE was known for its tax-free environment, but in recent years, the landscape has evolved. Here’s what mainland business owners need to know today:
🏛️ Corporate tax (Effective June 2023)
- 9% corporate tax is applied to net profits exceeding AED 375,000 annually.
- Profits below AED 375,000 remain exempt to support small businesses and startups.
- The corporate tax applies to most sectors, though certain free zones and oil/gas industries follow separate regimes.
➡️ Tip: Accurate bookkeeping is crucial to determine taxable profits – that’s where we can help!
🧾 VAT (Value-added tax)
- Introduced in 2018, VAT in the UAE is set at 5%.
- Businesses must register for VAT if their taxable turnover exceeds AED 375,000 per year.
- Even if your income is below the threshold, voluntary VAT registration is allowed (starting from AED 187,500).
VAT registration requires:
- Regular VAT returns.
- Proper invoicing and documentation.
- Compliance with FTA (Federal Tax Authority) rules.
👨👩👧👦 Other taxes?
- No personal income tax.
- No capital gains tax for individuals.
- Social security contributions only apply to UAE/GCC nationals (not to foreign employees).
📈 Why choose a Mainland setup?
Here’s why many entrepreneurs and businesses prefer the mainland option:
- Unlimited visa quotas (based on office space).
- Wider business activity list than in free zones.
- More flexibility with office location and expansion.
- Access to government tenders and B2B opportunities.
- 100% foreign ownership is now available for most business activities (no local sponsor required).
📌 Final thoughts
Mainland companies in the UAE offer unmatched business freedom and are now subject to globally aligned, but still low, tax rates. With the right support and compliance strategy, you can enjoy the benefits of operating in a world-class business hub — without the complexity.
At Qualira Accounting, we offer expert tax guidance, full compliance services, and strategic advice for mainland businesses. Let us help you stay ahead of your tax obligations while you focus on growth.
👉 Get in touch with us for a personalized consultation and tax strategy tailored to your business.
Your Team
Qualira Accounting Office in Emirates
info@qualira.ae
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