Business Setup

You can open an offshore company in the UAE without obtaining a resident visa. The UAE is a unique jurisdiction that combines respectability, favorable conditions and huge opportunities for foreign business. Foreign citizens and non-residents have several options for opening a company in the United Arab Emirates and not paying taxes on income from foreign activities. Company Registration in Ajman & Other Emirates An offshore (free zone) company in the UAE is not just an alternative to classic offshore companies in Belize, it is an excellent option for doing foreign business. Companies registered in Dubai or other emirates have access to the international market in the same way as companies from England, the Czech Republic and other respectable jurisdictions. The United Arab Emirates is one of the most respectable and reliable offshore jurisdictions as of 2025. The time period depends on the region you choose within the country, as each emirate has its own rules and regulations. Below you will find a detailed analysis of all the popular regions. Types of Companies in the United Arab Emirates The United Arab Emirates offers three types of companies that are interesting for foreigners:Classic offshore; Classic offshores are international business companies (IBCs) that can only operate outside the UAE. This is a classic that will suit those looking for an offshore jurisdiction. But there may be difficulties with such companies, since some jurisdictions have restrictions on working with offshores. Onshores are companies that operate only within the country. For foreigners, this option is available only if there is a second founder – a citizen or resident of the UAE. We help and are ready to advise which of them is the best in your personal situation. Companies registered in FEZs are one of the most interesting options. Free economic (trade) zones have their own conditions for doing business. The government created such zones for the development of the country, so not all FEZs are designed for the participation of foreign businesses. But there are also pleasant exceptions: Ajman and some other emirates. Is the UAE an offshore zone or not? The United Arab Emirates is an offshore zone. Moreover, the UAE is included in the list of states and territories recognized by most countries as an offshore zone. If in the case of classic offshore zones this causes serious inconvenience for citizens of various countries wishing to open a foreign company, then in the case of the United Arab Emirates this does not cause such inconvenience. Since the UAE is not included in the so-called “black lists”, but is only considered an offshore jurisdiction. And in addition to the offshore, it offers “white” tax-free companies. Companies registered in the UAE are recognized all over the world. You can still find contrary information on the Internet, but most of it is already outdated. The jurisdiction is constantly evolving, and the last serious improvements occurred in 2014. Ajman is one of the free economic zones, which is most popular among foreigners, since 2014 it has been tax-free and is recognized all over the world. At the same time, local companies are exempt from taxes both for activities within the country and abroad. Foreigners have the right to freely register tax-free companies only in free economic zones (FEZ). In these zones, non-residents are allowed to own a company solely, without involving a local representative or agent, and without the need to obtain residency in Dubai or other emirates. This means that companies in FEZs are the most interesting option for 2025, and below we present the results of our analysis of UAE FEZs. Free Trade Zones in the UAE Free economic zones (FEZ) are geographical areas located within the city and offer special conditions for doing business. The country’s authorities have created several dozen free trade zones where foreigners can open companies and not pay taxes on income from foreign activities. There are a number of pleasant exceptions where non-residents are allowed not to pay taxes on activities in the United Arab Emirates. In FEZs, foreigners are allowed to register companies without having to involve local partners as founders. At the same time, in some zones, it is allowed to conduct business both outside the jurisdiction and within the country! And this is without having to involve a local as a founder. Company registration is associated with some peculiarities. For example, you cannot register a legal entity that plans to engage in a certain type of activity in a zone that is not intended for this type of activity. Another important feature of any zone is that a legal address is required within a specific zone. This means that if you want your company to operate within the Dubai FEZ, then the legal address must be within the territory of this zone. This applies to absolutely all regions. The cost of a legal address or office rent in each city is different, hence the difference in business maintenance costs in different regions. There are more than 20 free zones in the UAE. We have analyzed some of the FEZs and present you with key information about the most interesting zones for non-residents. Dubai There are more than 10 free economic zones operating within Dubai. Each has its own conditions. There are two “universal zones” within Dubai: Dubai South Free Zone; These zones are universal, as they allow all types of activities. The remaining zones of Dubai are highly specialized in the following types: Moreover, within one type of activity, zones are divided into specific areas, namely: Each FEZ has its own requirements for the authorized capital. In Dubai, it ranges from 0 dirham to 300,000 dirhams (about 83 thousand dollars). Jebel Ali Free Zone (JAFZA) is a FEZ in Dubai where you can open a company without an authorized capital. The highest requirements in the UAE are in two zones. The first is located in Dubai – Dubai South Free Zone. The second zone is Umm Al Quwain Free Trade Zone (UAQ FTZ), located in Umm Al Quwain. But

Before starting the process of setting up a company in Dubai, it’s advisable to work with a specialized agency to ensure all documentation and legal forms are completed correctly. This will avoid potential legal issues. Depending on the type of company and its needs, there are different legal structures for establishing a business in Dubai.‍ Other types of companies that can be established in Dubai: ‍Requirements to Become a member: Before we begin, it’s important to note that to become a partner in a company in Dubai, you must be at least 21 years old. Furthermore, it’s essential to choose the legal structure that best suits your business’s needs to ensure success and legal compliance in the country. Free Zone or Freezone in Dubai Free Zones in Dubai are delimited areas that enjoy special tax, customs, and import regulations, distinguishing them from the mainland. These areas are extraterritorial, offering significant advantages for starting a business in Dubai. ‍Business Opening Process in Free Trade Zones Opening a company in Dubai is a relatively simple process. The requirements, costs, and timeframe for incorporation depend on the free zone chosen and the business activities the company intends to pursue. In this context, Free Zones are an extremely attractive and popular option among investors. There are more than 40 registered free zones in Dubai, with an upward trend in the coming years. One of the most notable is the International Free Zone Authority (IFZA), which offers multiple advantages for entrepreneurs. ‍Tax Advantages and Flexibility in Activities Unlike other areas in the UAE, free zones allow for the combination of various commercial activities under a single license, offering greater flexibility. The main activities that can be carried out in a Free Zone include: ‍Tax Benefits Companies operating in Freezones enjoy several tax incentives, such as exemption from personal income tax. For companies, the first €90,000 of profits are tax-exempt. Beyond this amount, a 9% tax applies. Furthermore, the Small Business Relief Act establishes that the first €750,000 of revenue will be tax-exempt until December 31, 2026. Another important benefit is that the UAE has double taxation treaties, which prevent income from being taxed twice in different jurisdictions. Social Advantages On a social level, a key advantage is the possibility of obtaining residence and work visas for both employees and the employer’s family members. These visas are renewable indefinitely, unless any issues arise. Foreign Ownership and International Employees A notable feature of the Free Zones is that they allow 100% foreign ownership of companies, which represents a significant advantage for international investors. Furthermore, it is possible to hire employees both within and outside the UAE, expanding opportunities for business growth and development. Conclusion It’s essential to carefully evaluate which option is best for your business, as each legal structure offers different advantages and benefits. If you have questions or need personalized advice, don’t hesitate to contact us; we’re here to help you make the best decision. Free Zones play a crucial role in Dubai’s economy, offering an efficient and attractive regulatory structure for foreign investors. With a wide range of tax and social benefits, Free Zones are undoubtedly one of the best options for those looking to establish or expand their business in Dubai.

What is a Free Zone? A company in a free zone, we will call it a Free Zone company, is a type of company that is registered in one of the more than 50 Free Zones in Dubai. The characteristics of these companies are that they are regulated by the authorities of the respective zones, that they have some tax advantages and that they can carry out business locally (within the zone) and internationally. Some of the best-known free zones in Dubai for starting a business are: Other features or advantages that you should know about this type of company are: However, you should keep in mind that there are some limitations with Free Zone companies. The most notable is that the company’s office can only be located in the same zone in which the company is registered. Additionally, each Free Trade Zone has regulations (applicable only to that zone) and is focused on a type of industry or business, so you’ll need to know the specifics of the one you’re interested in and choose accordingly. Step 1: Mainland or Continental Territory On the other hand, there are Mainland companies. As the name suggests, they are located on the mainland, rather than in a Free Zone. This company is more suitable for people who want to offer services or products to clients in Dubai, rather than abroad. The biggest advantage of this type of company is that they can operate throughout the UAE and are not restricted to its Free Trade Zone. Therefore, they are more attractive to companies that need to have facilities such as factories or supply goods or services to the UAE market. Other interesting advantages of this company are: The most important features you should keep in mind about the mainland are: Regarding the requirements for this type of company, it must have a locally authorized director or officer. You should also keep in mind that tax rates are generally higher than for Free Zone companies. Step 2: Choose a business activity Once you have thoroughly studied the types of companies and chosen the one that best suits you, it’s time to choose the business activity you want to develop. You’ll also need to take this into account when choosing the type of company, as there are free trade zones with restrictions on the types of activities allowed. Step 3: Reserve the company name With the previous two decisions already made, it’s time to check the availability of the name you want to use for your company. It’s important that the name is unique and not already used by another Dubai company. Additionally, it is also recommended that the name can be written in both Arabic and English and that it not be offensive to Emirati culture (religion, traditions, etc.). Once the checks are complete, you must reserve the name with the Dubai Department of Economic Development (DED). Step 4: Obtain a business license Once you receive approval for the name you have reserved, you can apply for the business license corresponding to the commercial activities you intend to carry out. The usual thing to do at this step is to pay the corresponding fees for issuing the license. Step 5: Register your tax address Once you have applied for the license, you must obtain the physical space, offices, headquarters… (the premises necessary for your activity) and register your registered office there. In Dubai, you can choose from many types of offices that are eligible for this registration, such as private offices, coworking spaces, and serviced offices. Obviously, everything will depend on the type of business you run and the services you offer. Step 6: Register the company The next step is to finally register your business. To do so, you must complete the registration forms and submit the necessary documents to the Dubai Department of Economic Development (DED). Some of the documents you must submit for registration are: Step 7: Open a corporate bank account Finally, you need to open a corporate bank account, i.e.  in the name of your company, in a bank in Dubai. This step is necessary to conduct business transactions and meet your company’s financial requirements. Optional Step: Obtain Permits and Authorizations Please note that depending on the business activity you intend to carry out and your location, you may need to obtain additional permits and authorizations from various authorities. Examples of such authorities include Dubai Municipality, the Department of Tourism and Commerce Marketing (DTCM), and the Department of Urban Planning and Development, among others. Questions about opening a business in Dubai Surely, after reading the different steps, you still have some questions. Don’t worry, we’ll go over the most common ones and answer them. How long does it take to set up a business in Dubai? The process of opening a business in Dubai is much faster than in other countries. It generally takes four days if you apply through the Dubai Department of Economic Development. Plus, if you use the Basher online platform, it can be done in 15 minutes. How much does it cost to start a business in Dubai? The total cost of setting up your company in Dubai will depend on many factors, such as whether it’s in a free zone or not, which free zone you choose, whether you’re doing it with or without a visa, etc. To give you an idea, the initial investment starts at €3,000 in Mainland companies and €6,000 in Free Zone companies. What taxes are paid in Dubai? On the one hand, there are companies. Since June 2023, they have been subject to Corporate Tax, for which they pay 9% of corporate profits exceeding AED 375,000 (about €93,000). Up to that amount, they pay 0% tax. Then there are personal taxes. This is where things get interesting. For example, VAT is 0% (it only goes up to 5% on certain products), there’s no inheritance tax, no gift tax, no wealth tax, and no real estate tax. And corporate dividends are taxed at 0%. Not bad, huh? On this topic and other aspects, you should consider, tax residency and its advantages. And with that, we’ve covered all the information on how to open a business in Dubai. If there’s anything unclear or you need help, please contact us and we’ll discuss your case.