Dubai (UAE) vs Hong Kong
Hong Kong has the lower headline tax (8.25%), and Hong Kong is cheaper to set up (from $1,200).Which is better depends on where you live and where your customers are.
| AEDubai (UAE) | HKHong Kong | |
|---|---|---|
| Entity | Free Zone company (FZ-LLC / FZCO) or Mainland LLC | Private company limited by shares (Ltd) |
| Corporate tax | 0–9% (0% up to AED 375k; 0% for Qualifying Free Zone income) | 8.25% on first HK$2m, 16.5% above — territorial |
| Setup cost from | $3,400 | $1,200 |
| Setup time | 1–3 weeks (+2–4 weeks for visa) | 1–5 business days |
| Minimum capital | None paid-up in most free zones | HK$1 |
| Local director | Not required | Not required |
| Remote formation | Visit needed | Yes |
| Residency visa | Possible | Possible |
| Banking | Difficult | Difficult |
| Best for | Founders who want to relocate, live tax-free personally and run consulting, trading or holding activities from a stable hub. | Trading, sourcing and e-commerce businesses dealing with China and Asia that want a low-tax, territorial system. |
Choose Dubai (UAE) if
Founders who want to relocate, live tax-free personally and run consulting, trading or holding activities from a stable hub.
- 0% personal income tax plus a 2-year residence visa through your own company
- 0% corporate tax possible as a Qualifying Free Zone Person
- 100% foreign ownership in free zones — no local sponsor
Choose Hong Kong if
Trading, sourcing and e-commerce businesses dealing with China and Asia that want a low-tax, territorial system.
- Low two-tier profits tax and a territorial system — offshore profits can be exempt
- No local director needed, 100% foreign ownership
- Fast online incorporation, often within a day