🇦🇪 UAE, Dubai
In the UAE (Dubai), one can choose between Free Zone or Mainland companies. As of June 2023, a 9% corporate tax has been introduced on taxable profits exceeding AED 375,000, with qualifying Free Zone 'qualifying income' potentially subject to 0%. The following is a neutral compilation of publicly available information; please refer to the latest regulations from the UAE Federal Tax Authority.
UAE, Dubai Key conditions at a glance
| Common Company Types | Free Zone Company, Mainland LLC |
|---|---|
| Corporate income tax | 9% (on profits exceeding AED 375,000); 0% for qualifying free zone income |
| Estimated establishment costs | Depending on the free zone, approximately several thousand to tens of thousands of dollars. |
| Annual maintenance | Annual licensing fees, office space (starting from flexi-desk) |
| Substance/Reporting Requirements | Corporate tax registration and filing; free zone 0% subject to qualifying activities and substance |
| Who is it suitable for? | Targeting Middle Eastern/global trade, emphasizing low taxes and residency combinations. |
| Recent Changes | Dubai Executive Council Resolution No. 11 of 2025 (issued on 3 March 2025) for the first time allows free zone companies (other than DIFC-registered entities) to operate in mainland Dubai in three ways without setting up a separate mainland subsidiary: ① dual licence (a mainland branch established under the free zone registered office, renewed annually); ② branch licence (a mainland branch established under existing branch establishment rules); ③ temporary permit (valid for up to 6 months, limited to specific activities). The Dubai Department of Economy and Tourism (DET) must publish the list of qualifying economic activities by 3 September 2025. |
UAE, Dubai Key considerations
- The corporate tax changes from 2023 have altered the previous 'zero tax' perception, requiring corporate tax registration and filing.
- Free zones offer a 0% tax incentive subject to qualifying activities and substantial conditions, not universally tax-exempt.
- It can be planned in conjunction with UAE residency (such as golden visas), but the determination of tax residency must be assessed.
- From 2025, free zone companies may enter the mainland market via dual licence / branch licence / temporary permit, but must still comply with the applicable activity list, maintain separate accounting, and pay 9% corporate tax on mainland income.
UAE, Dubai Frequently Asked Questions
Approximately how much does it cost to set up a company in Dubai?
The costs for a Dubai company vary significantly depending on the choice of free zone or mainland, typically including license fees, registration fees, and office space or flexi-desk costs. Free zones often offer package deals. Actual amounts depend on the regulations of the respective free zone authority and the Ministry of Economy, as well as service provider quotations; it is advisable to refer to current official announcements.
What taxes does a Dubai company need to pay?
Since 2023, the UAE has implemented a federal corporate tax with a standard rate of 9% (subject to a taxable profit threshold). Qualifying income in eligible free zones may be subject to a 0% rate. Actual application is subject to determination by the Federal Tax Authority and relevant regulations; it is recommended to follow prevailing rules at the time.
Does a Dubai company need local directors or a physical office?
Dubai companies must maintain a registered address or office space locally (free zones often offer flexi-desk options). Free zone companies generally allow 100% foreign ownership without mandatory local shareholders; companies must also comply with economic substance and beneficial ownership reporting requirements, with specific rules subject to the respective free zone authority and Ministry of Economy.
What annual maintenance and filings are required for a Dubai company?
Dubai companies must renew their business license annually and pay relevant fees, and may need to register and file corporate income tax, and maintain accounting records. Some activities require economic substance reports and beneficial ownership updates; detailed obligations are subject to the rules of the respective free zone authority, Ministry of Economy, and Federal Tax Authority.
Can free zone companies now operate directly in mainland Dubai without setting up a separate mainland company?
Yes, since the issuance of Dubai Executive Council Resolution No. 11 of 2025 on 3 March 2025. Except for DIFC-registered companies, free zone companies may enter the mainland market through three forms without needing to set up a separate mainland subsidiary: dual licence (establishing a mainland branch with the free zone registered office), branch licence (establishing a mainland branch under existing rules), or temporary permit (limited to specific activities, up to 6 months). However, they must still comply with the applicable activity list published by DET, keep separate accounts for mainland and free zone operations, and the 9% corporate tax remains applicable to mainland-source income. Actual availability and the scope of permitted activities are subject to the latest DET regulations.
How can I verify whether the company incorporation, tax, and compliance regulations for this jurisdiction are up to date?
Tax systems, annual fees, economic substance, and UBO (Ultimate Beneficial Owner) rules in each jurisdiction are frequently amended. Recommendations: ① Check official company registry or tax authority announcements of the jurisdiction (official source links are provided at the bottom of this page); ② Verify the data date indicated on this page; ③ Understand post-incorporation annual filing, accounting, audit, and economic substance obligations—do not focus solely on incorporation fees; ④ Stay alert to agent claims that exaggerate tax savings or suggest no filing or compliance obligations after incorporation, and consult qualified tax/legal professionals for major decisions. This site provides a neutral compilation of public information; always refer to the latest official announcements.
Where can I look up the official company registry for UAE, Dubai, and is it public?
| Official registry | Various Free Zone Authorities / Dubai Economic Development (DED) |
|---|---|
| Can the public search the register? | ⚠️ Limited online search (name/status only) |
| Notes | The UAE has no single federal public company register; free zones and mainland registries are dispersed, with limited public access. |
| Official search | Go to official registry search ↗ |
The above is a compilation of public information from official company registration authorities; public search rules and beneficial ownership disclosures are subject to change, so please refer to the latest official regulations. See the comparison table of registration transparency across jurisdictions →
Regarding UAE, Dubai, people often ask
- Where should the company be established? How to choose a jurisdiction?
- Offshore Company Annual Compliance: Filings & Fees
- Offshore Company Bank Account: Why It's Hard to Open
- Can Non-Residents Set Up an Offshore Company?
- Beneficial Ownership (UBO): Can You Stay Anonymous?
- EU/OECD Tax Blacklists: Should You Avoid Them?
- Repatriating Offshore Profits to Taiwan: Tax Guide
- Taiwan's CFC Tax Rules for Offshore Companies
- Bank Account Open but Stripe/PayPal Still Rejects You?
Official sources: UAE Federal Tax Authority · Data date: 2026-08.This page is a neutral compilation of public data, for reference only, not tax/legal advice; options are subject to the latest official announcements.