Middle EastCompany formation jurisdiction
The following isMiddle EastThe regions included are 2piecesJurisdictionPublic data compilation (neutral comparison, not ranked by superiority). Click to view the thresholds, costs, timelines, and processes for each option.
In the Middle East, this site currently primarily covers jurisdictions related to the United Arab Emirates (UAE). Since June 2023, the UAE has introduced a 9% federal corporate income tax (on net profits exceeding AED 375,000), but compliant Free Zone enterprises may still maintain a 0% tax rate under certain conditions, including: conducting qualifying activities within the free zone, not conducting domestic transactions with mainland customers, and meeting substance requirements. Dubai and Abu Dhabi each have several major free zones, such as DIFC (International Financial Centre) and ADGM (Abu Dhabi Global Market), each with different regulatory frameworks and applicable business scopes. The UAE's appeal also lies in zero personal income tax (no personal income tax to date), a geographic location connecting Europe, Asia, and Africa, making it suitable for businesses targeting the Middle East or Africa as their primary market.
- 🇦🇪 UAE, Dubai Middle EastIn the UAE (Dubai), one can choose between Free Zone or Mainland…
- 🇦🇪 Ras Al Khaimah (RAK ICC, UAE) Middle EastRAK ICC is the international company (offshore) registration aut…
Middle EastCompany formation FAQs
Can UAE free zone companies still enjoy 0% corporate tax?
Under the federal corporate tax law effective from 2023, compliant free zone 'Qualifying Free Zone Persons (QFZP)' may still apply a 0% tax rate to qualifying income if they: conduct qualifying activities within the free zone, do not directly provide services to UAE mainland customers, and meet substance requirements. However, if there is also business dealings in the mainland, the corresponding income is subject to the 9% tax rate. The exact regulations are subject to the latest official rules from the UAE Federal Tax Authority (FTA).
What is the difference between DIFC and general UAE free zones?
DIFC (Dubai International Financial Centre) is an independent jurisdiction based on English common law, with its own court system, primarily focused on financial services, asset management, private equity funds, etc. Compared to general manufacturing or trade-oriented free zones (such as JAFZA, DAFZA), DIFC is more suitable for financial institutions, family offices, and regulated businesses, but setup costs and compliance requirements are also higher.