Establish Your Company in Dubai to Access Growing Economy, High ROI & Tax Benefits!
SETTING UP COMPANY IN UAE
Opening a Company in Dubai: A Comprehensive Guide
Learn How You Can Open A Company in UAE as a Non-Resident of UAE & Which are the Different Types of Companies in UAE + Their Benefits!
A mainland company allows you to operate both within the UAE and internationally. These companies can engage in commercial activities without geographical restrictions, giving businesses access to local and government projects. To set up, foreign investors may need a UAE national sponsor who holds a 51% share in some types of businesses, but with recent reforms, 100% foreign ownership is allowed & encouraged in many of the common business sectors.
Free zones are designated areas offering 100% foreign ownership, tax exemptions, and ease of repatriation of profits. Businesses set up in free zones can operate internationally but have restrictions on direct trade within the UAE market unless through a local distributor. Popular free zones include Dubai Multi Commodities Centre (DMCC) and Jebel Ali Free Zone (JAFZA).
Free zone setup is generally more cost-effective, starting from AED 10,000 (~$2,700), but may vary depending on the specific free zone and services required.
Offshore companies are designed for businesses looking to manage assets, hold real estate, or conduct business internationally. They cannot operate within the UAE market directly but enjoy 100% tax exemption on income and profits, making them ideal for global operations and tax planning.
RESIDENCY THROUGH OPENING A COMPANY:
Business Visa - Main Land
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The Main Land Business Visa is tailored for entrepreneurs who want to establish a company in Dubai's mainland. This visa not only allows you to live and work in Dubai but also enables you to engage directly with the local market, providing unparalleled opportunities for business growth and expansion.
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To qualify, you must register your business with the Department of Economic Development (DED) and meet specific licensing requirements. The Business Visa is valid for 2-3 years and is renewable, offering a stable foundation for your entrepreneurial journey in one of the world’s most dynamic markets. However, not all main land businesses have 100% foreign ownership.
Business Visa - Freezone
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The Free Zone Visa is ideal for entrepreneurs looking to set up their companies in one of Dubai's many free zones. These areas offer unique benefits, including 100% foreign ownership, no corporate taxes, and minimal startup costs. To qualify for the Free Zone Visa, you must register your business in a free zone and adhere to its specific regulations.
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This visa typically has a duration of 2-3 years, depending on the free zone, and is renewable. The starting costs can vary by zone but generally begin at around AED 10,000 (~$2,700), covering licensing and visa fees. The Free Zone Visa allows you to operate your business in the designated freezone area and also enables you to sponsor family members to join you in Dubai.
BUSINESS VISA IN DUBAI
Advantages of a Mainland Business Visa:
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Wider Market Access: Unlike free zone companies, mainland businesses can trade directly with the local market and government entities.
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Diverse Business Activities: There are fewer restrictions on the types of business activities you can undertake, allowing for more flexibility.
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100% Ownership: Recent regulations allow for 100% foreign ownership in some sectors, eliminating the need for a local sponsor.
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Greater Credibility: Operating in the mainland can enhance your company's credibility, making it easier to attract clients and investors.
Advantages of a
Free Zone Business Visa:
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100% Foreign Ownership: You can fully own your business without needing a local sponsor, providing complete control over your operations.
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Tax Benefits: Free zone companies enjoy 0% corporate tax for a specific period (often renewable), as well as exemption from personal income tax and import/export duties.
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Streamlined Setup: Establishing a business in a free zone is generally quicker and involves less bureaucracy compared to mainland registration, allowing you to start operations swiftly.
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Access to Modern Infrastructure: Free zones offer state-of-the-art facilities, logistics support, and proximity to major transport links, enhancing operational efficiency.
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Networking Opportunities: Free zones often host a community of like-minded businesses, providing excellent networking opportunities and access to various support services.
BENEFITS OF SETTING A COMPANY IN DUBAI?
This is the space to introduce the Services section. Briefly describe the types of services offered and highlight any special benefits or features. Encourage site visitors to learn more by exploring the full list of services offered.
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100% Foreign Ownership in free zones and for specific mainland sectors.
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Residency Visa for business owners, allowing access to UAE’s banking, healthcare, and education systems.
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Strategic Location: Dubai offers access to markets in the Middle East, Africa, and Asia.
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Global Recognition: Dubai's free zones, such as DMCC, are known for their international standards and services.
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0% Tax Benefits in free zones and offshore structures.
INVESTING IN DUBAI..
Advantages of UAE Residency
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No Income Tax: UAE banks offer tax-free interest on savings, providing higher returns on your funds.
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Stable Currency: The UAE dirham (AED) is pegged to the US dollar, ensuring currency stability and reducing exchange rate risks.
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Offshore Banking: UAE’s reputation as a financial hub provides secure offshore banking options for non-residents, making it an ideal location for international business.
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Advanced Digital Banking: UAE banks provide world-class digital services, allowing you to manage your accounts anytime, anywhere, via online and mobile platforms.
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Wealth Management: Many banks offer private banking services for high-net-worth individuals, providing wealth management, investment advice, and exclusive banking privileges.
WHAT IS THE TAX STRUCTURE?
Dubai offers a tax-free environment for individuals.
There is no personal income tax, no capital gains tax, and no inheritance tax, making it a highly attractive destination for residents. However, there is a 5% VAT (Value Added Tax) on most goods and services, but essentials like healthcare and education are exempt.
Most businesses in Dubai enjoy no corporate tax, except for oil companies, foreign banks and some other types of entities. A 9% corporate tax applies to businesses with profits over AED 375,000 (~$100,000). Additionally, there's a 5% VAT applicable to goods and services, and free zone companies can often qualify for tax exemptions under specific conditions.
How Can You Hire Employees?
As a company owner in Dubai, securing Employment Visas for your employees is crucial for building a strong and capable workforce. The Employment Visa process involves several steps that ensure compliance with UAE labor laws while facilitating your ability to attract and retain talent.
Getting Visas For Your Employees
Obtain a Work Permit:
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Before applying for an Employment Visa, you must secure a work permit from the Ministry of Human Resources and Emiratization (MoHRE). This involves submitting an application along with relevant documents, such as your trade license and employee details.
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Cost: The work permit fee varies but typically ranges from AED 500 to AED 3,000 (~$150 - $800), depending on the employee’s position and the size of your company.
Medical Fitness Test:
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Employees must undergo a medical fitness test at an authorized medical center to ensure they meet health requirements. This includes blood tests and a chest X-ray.
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Cost: The medical test fee is usually around AED 300 to AED 600 (~$80 - $170)
Apply for the Employment Visa:
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Once the work permit and medical fitness test are complete, you can apply for the Employment Visa through the General Directorate of Residency and Foreigners Affairs (GDRFA). You'll need to submit the visa application along with supporting documents, including the employee’s passport copy and the employment contract.
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Cost: The visa application fee generally ranges from AED 1,000 to AED 2,000 (~$270 - $550).
Receive Visa Stamping:
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After approval, the visa is stamped in the employee's passport, allowing them to enter and work in the UAE legally. You will also need to obtain an Emirates ID for the employee, which is mandatory for residency.
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Cost: The Emirates ID application fee is approximately AED 100 to AED 300 ($30 - $80).
Final Steps:
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Once the Employment Visa and Emirates ID are issued, you should ensure that your employee has the necessary employment insurance coverage through reputed insurance provider, as this is a legal requirement for all your employees.
Overall Costs:
The total estimated cost for obtaining an Employment Visa for an employee can range from AED 2,500 to AED 6,000 (~$680 - $1650), depending on various factors such as medical tests and permit fees. This investment not only ensures compliance with local laws but also demonstrates your commitment to providing a supportive and legally compliant work environment for your employees.
Dubai’s FATF Status and Anti-Money Laundering
Dubai and the UAE have taken significant steps to align with international financial standards, particularly in combating financial crimes like money laundering and terrorism financing. One key area where Dubai is closely monitored is its compliance with the Financial Action Task Force (FATF) guidelines.
The UAE, including Dubai, is recognized as being fully compliant with the Financial Action Task Force (FATF) standards. After successfully addressing all 15 of FATF’s recommendations, the UAE exited the grey list in February 2024. This demonstrates the UAE’s strong commitment to maintaining global standards for anti-money laundering (AML) and counter-terrorism financing (CTF). With these improvements, Dubai has solidified its position as a leading financial hub, offering a secure and transparent environment for investors and businesses, underpinned by robust regulatory frameworks. This achievement boosts international confidence and makes the UAE an even more attractive destination for global partnerships and investment opportunities
DUBAI'S FTAF AND AML
Anti-Money Laundering (AML) Regulations in Dubai
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UAE Federal Law No. 20 of 2018: This law establishes the foundation for the UAE's AML and CTF framework, requiring businesses, financial institutions, and designated non-financial businesses (like real estate) to follow AML protocols.
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Central Bank and DFSA Oversight: Banks in Dubai, including free zone financial institutions regulated by the Dubai Financial Services Authority (DFSA), must adhere to strict AML procedures. These include customer due diligence, transaction monitoring, and reporting suspicious activities.
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Know Your Customer (KYC) Protocols: Financial institutions in Dubai are required to perform rigorous KYC checks to verify the identity of account holders, reducing the risk of money laundering.
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Suspicious Activity Reporting: Any suspicious transactions must be reported to the UAE’s Financial Intelligence Unit (FIU), which tracks and investigates financial crime activities.
What Does This Mean for Investors and Businesses?
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Boosted Investor Confidence: Dubai is now globally recognized as a safe and transparent financial hub, with its exit from the FATF grey list reinforcing investor confidence. This development highlights the UAE's commitment to high standards, making it an ideal destination for international investment.
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Stronger Regulatory Framework: With enhanced anti-money laundering (AML) regulations and tighter controls, the UAE ensures that financial institutions, businesses, and real estate sectors operate within a secure and compliant environment. These changes reduce the risk of financial misconduct and create a safer investment landscape.
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Alignment with Global Standards: Dubai’s adherence to international financial standards strengthens its position in global financial systems. This alignment reduces risks of illegal activity and fosters more international partnerships, making it easier and safer for businesses to expand and collaborate in the UAE.
Are you ready to make the move to Dubai?
Our Relocation to Dubai Program offers comprehensive support to help you secure the right visa and navigate the process smoothly.
BOOK YOUR FREE RELOCATION
TO DUBAI CONSULTATION
What’s Included in the Package:
✔️ ASSISTANCE WITH SELECTING THE APPROPRIATE VISA TYPE
✔️ GUIDANCE ON RESIDENCY REQUIREMENTS & COSTS
✔️ PERSONAL SUPPORT IN FINDING YOUR DREAM PROPERTY
✔️ OBTAINING A VISA THROUGH INVESTMENT
✔️ HOW CAN YOU OPEN YOUR OWN "LLC" COMPANY
✔️ STEPS TO OPEN YOUR BANK ACCOUNT (PERSONAL OR CORPORATE)
✔️ KNOW MORE ABOUT THE TAX STRUCTURE IN DUBAI
✔️ PURCHASING A PROPERTY ONLINE FROM YOUR HOMETOWN
✔️ PURCHASING A PROPERTY THROUGH CRYPTOCURRENCY
✔️ GET AN OVERVIEW OF DUBAI ECONOMY