Foreign Subsidiary Formation & Company Setup in the UAE

Create a legally compliant and strategically positioned foreign-owned subsidiary in the UAE to get access to global expansion, locally manage operations, and participate in Dubai's growing economy and regulatory framework. A subsidiary in the UAE is an independent entity under UAE law but owned entirely by the foreign parent company.

A well-structured UAE subsidiary offers unparalleled access to local markets, government contracts, and talent pools, without requiring local shareholders. Whether you're a multinational corporation establishing a regional headquarters, a tech firm entering new consumer markets, or a manufacturing company building local distribution channels, a subsidiary provides the legal and operational flexibility needed to scale sustainably.

At Finjuris Global, we help you design and implement subsidiary structures that go beyond incorporation, addressing legal ownership, intercompany arrangements, tax efficiency, and regulatory compliance from day one. With a subsidiary in the UAE, your organization can benefit from a stable and business-friendly environment, all while positioning itself for long-term success and expansion across the GCC and wider international markets.

Subsidiaries provide their greatest advantages to:

Multinational corporations are looking to use it as a regional headquarters.
Technology and e-commerce companies moving into the Middle East.
Venture capital-backed start-ups launching regulated offerings.
Manufacturing, logistics, or service providers developing distribution in the GCC.

For companies wishing for a full legal presence in the UAE, we create foreign-owned subsidiaries throughout all major zones, customized for control, compliance, and scalability.

Key Benefits

100% foreign ownership with complete legal independence.

Access to local and regional markets.

Protection through UAE corporate and commercial laws.

Flexible corporate structuring for global governance compliance.

Local visa sponsorship and ability to run payroll.

Strong protections for investors, IP, and contracts.

What We Manage

Selection and incorporation of an appropriate entity across onshore and free zones

Licensing, application for trade name registration, and activity approvals

Drafting shareholder agreements and designing corporate governance

Planning board composition and appointing directors

Drafting inter-company agreements and intellectual property transfer documentation

Setting up registered office, and completing lease agreement

We also provide advice on corporate level tax planning, inter-company pricing, and regulatory mapping to meet your global operating model and corporate efficiencies under the UAE tax regime of 9%. Whether you're preparing for investment, conducting regional operations, or reorganising assets internationally, we help you with the establishment of a subsidiary in the UAE designed for long-term success!

Advantages

01.

Tax optimization with structures ready for repatriation

Subsidiaries allow you to benefit from the UAE’s 0% personal income tax and competitive 9% corporate tax regime, along with access to an extensive network of double taxation treaties. We help you design entity structures that enable efficient profit repatriation, intercompany invoicing, and group-level cost allocation strategies to reduce overall tax exposure while maintaining compliance.

02.

Full access to UAE markets, talent, and resources

Unlike free zone branches or offshore setups, a foreign-owned UAE subsidiary, especially in the mainland, gives you unrestricted access to trade and operate across the UAE’s booming local market. You can hire local and international talent, participate in public tenders, open physical offices, and tap into a highly developed infrastructure of logistics, banking, and innovation hubs.

03.

Board-controlled setups offering limited liability protection

A subsidiary functions as a legally independent entity, allowing you to segregate financial and legal risks from your parent company. This protects your global brand and core operations while maintaining full ownership and control through your appointed board of directors. Our tailored governance structures ensure that shareholder rights, board powers, and management protocols are aligned with your group policies.

04.

Integrated Governance and Compliance Alignment

Your UAE subsidiary can operate as a mirror to your global governance model. We help establish clear reporting lines, implement board charters, and define authority matrices, ensuring local teams work seamlessly within your multinational structure. Simultaneously, we embed ESR, UBO, and VAT compliance frameworks from the outset to help you stay regulator-ready and audit-proof

05.

Strategic Base for Regional Expansion

Establishing a subsidiary in the UAE positions your company as a credible player in the Middle East and North Africa (MENA) region. The UAE’s pro-business regulatory environment, stable banking system, and strategic geographic location make it the perfect launchpad for broader expansion into KSA, Qatar, Egypt, and other emerging markets.

Whether you are entering the UAE or expanding across MENA, we establish the legal framework.

Why does it matter?

Creating a foreign-owned subsidiary in the UAE is more than a box-ticking exercise, it's a strategic decision that lays the groundwork for long-term regional success. A well-structured subsidiary enhances legal protection, grants full access to local markets, enables visa and payroll processing, and aligns operations with both UAE and global compliance standards. With the introduction of corporate tax and increasing regulatory expectations, establishing a subsidiary is now a critical component for tax planning, IP protection, and operational control.

Moreover, for companies expanding across MENA or targeting UAE-based investment and talent pools, a subsidiary structure provides the legal autonomy to innovate, raise capital, and scale independently. This flexibility is crucial for businesses that need to operate with agility while maintaining strategic alignment with their international corporate governance.

Why Choose Finjuris for Foreign Subsidiary Formation

At Finjuris, we understand that forming a subsidiary is not just about incorporation—it's about embedding your global business within the UAE in a way that protects your interests and unlocks new opportunities. Our legal and tax teams collaborate to align your subsidiary’s structure with your cross-border operating model.

We provide

Tailored entity selection across mainland and free zones based on your business goals.

Precision-drafted shareholder and inter-company agreements for risk mitigation.

IP transfer documentation and licensing strategies for group-wide protection.

End-to-end onboarding for banking, immigration, HR, and office setup.

Tax optimization support, including ESR alignment and pricing strategy for global efficiencies.

Whether you are launching a regional hub or preparing for an M&A event, we ensure that your UAE subsidiary stands on firm regulatory, operational, and commercial ground.

What sets us apart?

At Finjuris Global, we understand that forming a foreign subsidiary in the UAE is not a one-size-fits-all process. It requires strategic foresight, jurisdictional expertise, and alignment with global governance practices. Our approach is built on deep integration of legal precision, tax planning, and regulatory compliance, ensuring that your subsidiary is not only established correctly but is also structured to support your global growth strategy.

Whether you are a fast-scaling startup, a multinational entering the Middle East, or a tech company safeguarding its IP, we tailor the subsidiary setup to reflect your operational, financial, and organizational realities. We don’t just help you launch—we build the legal infrastructure that supports sustained success.

Strategic Legal & Tax Integration

We go beyond registrations, designing subsidiaries that support holding structures, IP centralization, and international tax optimization.

Industry-Specific Experience

From VC-backed tech firms to logistics companies and consulting conglomerates, we’ve set up subsidiaries that match complex regulatory needs.

Global Governance Ready

We incorporate your global board, shareholder, and inter-company policies into the local framework to ensure uniform governance across jurisdictions.

Built-In Compliance Infrastructure

We integrate ESR, UBO, VAT, and AML policies during setup, so you remain audit-ready from Day One.

Seamless Setup & Post-Setup Support

Our engagement doesn’t end with incorporation. We assist with HR systems, payroll integration, and long-term regulatory filings.

When you partner with Finjuris, you're not just setting up a legal entity; you’re embedding your business into one of the world’s most dynamic ecosystems with confidence. Our multidisciplinary team ensures that your UAE subsidiary is compliant, operationally sound, and ready for expansion from Day One. We deliver structure, clarity, and continuity, so your global ambitions have a strong local foundation.

FAQs

Let’s Build a Safer, Stronger Business Together

What is the legal distinction between a branch and a subsidiary?

A subsidiary is a legally independent company that is incorporated under UAE law and owned by a foreign parent. A branch is simply an arm of the parent, and may not have a separate legal identity.

Is it possible for a foreign corporation to own 100% of a UAE subsidiary?

Yes. Most free zones, in addition to the various mainland business activities, allow for 100% foreign ownership and do not require a local sponsor or shareholder.

Is it a requirement for a subsidiary to appoint a UAE national as a partner or a director?

No. Locally incorporated shares in free zones, and generally for many types of mainland activities, allow foreign shareholders to maintain 100% of the control over the shares. However, you may need a local service agent or a local authorized signatory for activities in regulated activity sectors.

What tax considerations exist for a UAE subsidiary owned by a foreign entity?

The suite of corporate taxes relates to the 9% corporate tax applied to profits above the threshold. We also help align your intercompany pricing and allocation of costs to best position your group to take advantage of possible tax efficiencies.

What kind of licenses can a foreign subsidiary apply for?

Depending on your business activity and jurisdiction (mainland or free zone), your subsidiary can apply for commercial, professional, industrial, or e-commerce licenses. Finjuris assists in selecting and applying for the most suitable one.

FOREIGN SUBSIDIARY FORMATION

Local presence with global oversight.