- Entity type
- Free Zone company (FZ-LLC / FZCO) or Mainland LLC
- Corporate tax
- 0–9% (0% up to AED 375k; 0% for Qualifying Free Zone income)
- Setup cost from
- $3,400
- Setup time
- 1–3 weeks (+2–4 weeks for visa)
- Minimum capital
- None paid-up in most free zones
- Local director
- Not required
- Remote formation
- Visit usually needed
- Residency visa
- Possible
- Banking
- Difficult
Best for: Founders who want to relocate, live tax-free personally and run consulting, trading or holding activities from a stable hub.
Advantages
- 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
Watch out for
- Corporate tax registration is mandatory for every company, even with no profit (AED 10,000 late penalty)
- The 0% free zone rate needs real substance, audited accounts and qualifying income
- Opening a UAE bank account can take weeks and usually needs a visit
How to set up a company in Dubai (UAE)
- 01
Choose free zone or mainland
1–3 daysFree zones (IFZA, Meydan, RAKEZ, DMCC and others) give 100% foreign ownership and lower costs. Mainland companies can trade directly with UAE customers and government. Most international service businesses start in a free zone.
- 02
Select business activities and reserve a name
1–2 daysYour licensed activities set what you may do and whether income can count as qualifying for the 0% free zone rate. Pick them carefully with your provider.
- 03
Submit KYC and sign the incorporation documents
2–5 daysUpload your passport, photo and proof of address, then e-sign the Memorandum of Association. Many free zones handle this fully online.
- 04
Receive your trade licence
3–10 daysYou receive the commercial licence, certificate of incorporation and share certificate. Your company now legally exists.
- 05
Apply for your residence visa and Emirates ID
2–4 weeksEntry permit, medical test and biometrics in the UAE. The investor/partner visa is usually valid for two years and lets you sponsor family.
- 06
Open a bank account and register for corporate tax
2–8 weeksOpen a corporate account (Emirates NBD, Mashreq, ADCB or digital banks like Wio). Register on EmaraTax for corporate tax within the deadline, and for VAT once taxable supplies exceed AED 375,000.
Why Dubai?
Dubai combines 0% personal income tax, a residence visa you can sponsor yourself, world-class infrastructure and a time zone that bridges Europe and Asia. Since 2023 the UAE has a corporate tax, but at 9% — and 0% for small profits and qualifying free zone income — it is still one of the most attractive places to run a business you actually live in.
Free zone vs mainland
| Free zone | Mainland | |
|---|---|---|
| Foreign ownership | 100% | 100% for most activities |
| Trade with UAE customers | Limited | Unrestricted |
| Typical first-year cost | from ~AED 12,500 | ~AED 15,000–30,000+ |
| Office requirement | Flexi-desk usually fine | Often a physical office |
| 0% QFZP regime | Possible | No |
Popular free zones: IFZA and Meydan (cost-effective, fast, online), RAKEZ (budget, Ras Al Khaimah), DMCC (premium, commodities and crypto), DIFC/ADGM (finance, common law).
How the UAE corporate tax works
- 0% on taxable profit up to AED 375,000
- 9% on profit above that
- 0% on qualifying income of a Qualifying Free Zone Person that meets substance, audit and de-minimis rules
- Small businesses with revenue under AED 3 million can elect Small Business Relief (check the current period)
- No withholding tax on dividends, no personal income tax
Costs at a glance
A zero-visa free zone licence starts around AED 12,500 (~$3,400). A package with one visa is typically AED 17,700–21,000 (~$4,800–5,700). Add bank onboarding, audit (if claiming 0%) and accounting each year.
Is Dubai right for you?
Dubai is ideal if you are willing to relocate and want a residence that does not tax your personal income. If you never set foot in the UAE, a Dubai company rarely gives you tax benefits — your home country will likely still tax it.
Every year
- Trade licence and visa renewal
- Corporate tax return within 9 months of financial year-end
- Audited financial statements (required to claim Qualifying Free Zone status)
- Ultimate Beneficial Owner (UBO) register
- VAT returns if registered
Questions about Dubai (UAE)
Is a Dubai free zone company really 0% tax?+
Only if it qualifies as a Qualifying Free Zone Person — adequate substance in the UAE, audited accounts, qualifying income, and non-qualifying revenue below the lower of 5% or AED 5 million. Otherwise 9% applies on profit above AED 375,000.
Do I have to register for corporate tax if I make no profit?+
Yes. All UAE companies must register with the Federal Tax Authority. Late registration triggers an AED 10,000 penalty.
Can I get residency through my company?+
Yes. Choose a licence package with a visa quota and the company sponsors your residence visa — the most common route for expats moving to Dubai.
Do I still need Economic Substance (ESR) reports?+
No. ESR was repealed for financial years after 2022.
How hard is it to open a bank account?+
It takes patience. Expect enhanced due diligence, a business plan and often an in-person meeting. Having your residence visa first helps a lot.
General information, not legal or tax advice. Fees, rates and rules change. Check current figures with the official authority or a licensed adviser before acting. Disclaimer