Set-up a business in UAE

Advantages of registering a company in the Emirates

• the presence of free economic zones (FEZ, Free Zone) in all 7 emirates of the country, where the creation of companies with 100% foreign participation is allowed;
• loyal tax policy;
• lack of currency control and regulation by the state, the possibility of duty-free withdrawal of investment capital;
• confidentiality and security of doing business – in the Emirates there is no public register, information about the owners and shareholders of foreign companies is not disclosed, and protection from takeovers of companies is provided at the legislative level;
• a high level of economic development and a stable socio-political situation in the country, where you can conduct business in various directions related to trade, transport, production, information technology, tourism, services, financial and other activities.

Registering a company in the Emirates will allow you to do business in a country with excellent logistics connections, with access to large markets in Europe, Southeast Asia and Africa, with a well-developed banking system, but without paying extra taxes. After all, the UAE has already concluded agreements on the avoidance of double taxation with 128 countries of the world.

What types of companies can be opened in the UAE

Offshore company in the UAE

An offshore company can only be registered in one of the UAE free zones. It is wholly owned by foreign residents or non-UAE shareholders. Registration of an offshore company in the UAE provides tax and customs advantages, the opportunity to open a bank account, obtain a license for various types of activities and participate in other companies in the country. An offshore company is ideal for international trade and international transactions.

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Onshore company in Free Zone

In the UAE free zones, two types of onshore companies can be registered: FZC (Free Zone Company) and FZE (Free Zone Establishment). 100% of the capital can be foreign-owned. Registering an onshore company in a UAE free zone allows you to conduct business both within the country and abroad, obtain a UAE tax residency certificate, lease an office, issue resident visas for employees, provide various services, and collaborate with local companies. However, there are limitations, such as the inability to participate in government tenders and lease offices outside the free zone.

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Local LLC

For entrepreneurial activities throughout the UAE, including in the free zones, you can establish a local company. Since 2020, the majority of business activities no longer require a local partner with a 51% ownership stake. Registering a local company allows you to save on the purchase or lease of business premises, eliminate free zone restrictions, and have 100% ownership.

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What taxes do companies in the UAE have to pay?

Taxation in the UAE is regulated separately by each of the 7 emirates, so the amounts of payments in each of them and in different free zones are separate.

Main features of taxation in the UAE:

• no taxes on personal income.
• the presence of a corporate tax of 9% – the tax was introduced in 2023, it is provided for companies and enterprises receiving income of more than 375,000 UAE dirhams, and if the income is less, the rate is 0%. But at the same time, qualified types of activities in special FEZs can do without paying income tax. Also, a different tax rate will be levied on large multinational companies that have special business conditions under UAE law;
• the need to pay VAT in the amount of 5% – this federal tax was introduced in 2018 and is provided only for companies trading within the country with an annual turnover of 375,000 UAE dirhams or more;
• the presence of an excise tax on goods that can cause harm to health, such as alcohol and tobacco products, fast food, confectionery products and soft drinks.

In addition, by opening a company in the free zone of Dubai, Sharjah or another emirate, you will have to pay an annual license fee in the amount established in this free zone.

The cost of opening a company

Timing and procedure for opening a company in the UAE

The time required to open a company depends on the emirate and the type of activity, and can take from 1 day to 1 month. It will take more time to register a company in Dubai due to the large number of daily requests for opening companies in this emirate. If the type of activity you have chosen requires additional permission from the Ministry of Health, the Ministry of Defense or another local government body, the registration period may take several months.

Our company’s specialists will help you open a company in the UAE optimally:

• It will take 1-2 working days to collect the necessary documents – we will collect them ourselves and submit them for registration if you have already been to the Emirates and 5 years have not passed since your last visit (otherwise, you will need to fly to the UAE to sign the documents );
• Registration will take from 3 to 7 working days, provided there are no delays on the part of government authorities, after which we will receive documents for the registered company and send them to you;
• It will take at least 7 working days to open a bank account and obtain a resident visa (this requires your personal presence in the UAE, but our employees will accompany you).

Experienced Dynasty Business Adviser specialists in the field of tax planning and international law will find the optimal solution for choosing the type of company, emirate, free zone for opening your business in the UAE so that it becomes as successful as possible. With us, you will not only save time, but also money that you would otherwise spend on unnecessary flights to the Emirates and back.