Business Setup · Published 9 November 2026 · 3 min read
By the House Of Trust Real Estate advisory team
In this article
Many people moving to the UAE, or investing in it, end up doing two things together: buying property and setting up a business. They are separate decisions, but they connect through residency, banking, ownership and tax.
Do you need a company to buy property?
No. Individuals can buy freehold property in designated areas in their own name. A company becomes relevant when you want to run a business, hold property inside a business structure, employ people, or separate your personal and business finances. The right answer depends on your circumstances and should be checked with a legal adviser.
The main structures, in brief
| Structure | In short | Worth knowing |
|---|---|---|
| Mainland company | Licensed by the emirate's economic authority, such as Dubai's Department of Economy and Tourism | Can trade across the UAE. Most business activities now allow full foreign ownership, though some restricted activities have different rules |
| Free zone company | Licensed by a specific free zone authority | Set up for particular activities and locations, with its own rules, and its own limits on trading outside the zone |
| Holding or special-purpose structure | Sometimes used to hold assets such as property | Rules vary by structure and area, so take legal advice before relying on one |
Tax and compliance basics
- Corporate tax. The UAE introduced a federal corporate tax of 9% on taxable profits above AED 375,000, with special rules for some free zone businesses. Individuals earning rent from property are treated differently from businesses, so check your own position.
- VAT. Businesses above the registration threshold must register for VAT, currently at 5%.
- Accounts and renewals. Licences need renewing, and companies need proper records.
Tax rules change. Confirm the current position with a qualified tax adviser before you decide on a structure.
The typical steps to form a company
- Choose your activity and structure, mainland or free zone, based on what you will do and where your clients are.
- Reserve a trade name and obtain initial approval.
- Prepare the legal documents, such as the company's articles of association.
- Arrange a business address. Depending on the licence, this may be an office or a flexible workspace.
- Receive your trade licence.
- Open a corporate bank account.
- Arrange visas and Emirates ID for owners and staff.
Exact requirements and timelines differ by authority and activity, so confirm them before you start.
Where legal assistance fits in a property deal
- Reviewing contracts, from the sale agreement to the off-plan purchase terms.
- Checking title and paperwork, including NOCs and any restrictions.
- Powers of attorney, if someone else will sign for you.
- Planning for the future, such as how your property would pass on. Many expat owners ask a lawyer about registering a will that is recognised in the UAE.
- Disputes, whether with a developer, landlord or tenant.
How House Of Trust can help
We facilitate company formation and legal assistance for clients buying, investing or relocating, by connecting you with trusted partners and coordinating the process alongside your property purchase. We are not a law firm, and legal advice comes from licensed legal professionals. If you are thinking about relocating, our team also helps with area orientation and settling in. Speak to an advisor to talk through what you need. You may also want to read our Golden Visa guide.
Frequently asked questions
Do I need a company to buy property in Dubai?
No. Individuals can buy freehold property in designated areas in their own name. A company is useful if you want to run a business or hold property inside a business structure. Take advice for your own situation.
What is the difference between a mainland and a free zone company?
A mainland company is licensed by the emirate's economic authority and can trade across the UAE. A free zone company is licensed by a specific free zone with its own rules and limits on trading outside the zone.
Can foreigners own 100% of a company in the UAE?
For most business activities, yes, following reforms to the company law. Some activities still have restrictions, so check the rules for yours.
What is the UAE corporate tax rate?
The federal corporate tax rate is 9% on taxable profits above AED 375,000, with special rules for certain free zone businesses. Confirm the current position with a tax adviser.
Sources
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