THE ART OF
BEING LOCAL
IN MIDDLE EAST
Starting a Business in the UAE
Starting a business in the UAE places international companies at the main trade and aviation hub between Europe, Asia and Africa. InterGest Middle East has guided foreign companies from Dubai since 2004.
What you need to know about starting a business in the UAE
Foreign companies usually form a limited liability company (LLC), either on the mainland under a licence from the emirate or in one of around 40 free zones. Since 2021, foreigners may hold 100 % of the shares in a mainland LLC for most business activities. There is no statutory minimum capital, and AED 50,000 to 100,000 is usual. The company setup Dubai and the other emirates offer takes one to three months and costs around AED 15,000 to 20,000 in local authority fees. Since June 2023 the UAE has levied corporate tax: 9 % on profits above AED 375,000. As a shareholder, you do not have to travel for the formation.
Interested in other countries where InterGest is present? You will find more on our overview page starting a business abroad, including a comparison table of the most common legal forms and regional overviews, for example on starting a business in Germany, in France, China or the USA.
An overview of all InterGest services is on our services page.
Your contact for starting a business in the UAE
Holger Ochs has led InterGest Middle East as managing director for the region since 2006. After studying economics he spent several years with tax and consulting firms in Europe. For more than two decades he has supported international companies and investors in building their business in the Middle East, above all in the UAE.
InterGest Middle East was founded in 2004 to help foreign companies plan and build their business in the United Arab Emirates. Its office is in Dubai Internet City, one of the large free zones of the emirate.
What are the advantages of starting a business in the UAE?
For most of our clients, location is what tips the decision: from Dubai and Abu Dhabi you reach the Gulf states, India, East Africa and Central Asia within a few hours by air, and Jebel Ali is the largest port in the Middle East. Five further points come on top, and not every one of them weighs the same for every project:
- Tax burden: The corporate income tax UAE law sets is 9 % on profits above AED 375,000 and 0 % below. There is no income tax on salaries, and the UAE levies no withholding tax on dividends paid to foreign shareholders.
- Ownership: Since 2021, foreigners may hold 100 % of the shares in a mainland LLC for most activities. A local partner is only required in a few strategic sectors.
- Free zones: Around 40 zones, each with its own authority, its own rules and often a sector focus. The licence is usually issued within 14 working days of the authority’s review.
- Talent: The workforce is largely international, and in practice business runs in English.
- Capital: There is no statutory minimum capital, although the authorities expect funding that fits the activity.
One caveat belongs with this: Germany and the UAE have had no double taxation treaty since 2022, and a company taxed at less than 15 % can trigger German controlled foreign company rules. On top come annual duties such as the tax return, the beneficial ownership filing and, depending on size and zone, an audit. Companies with 50 or more employees also have to raise their share of skilled Emirati staff by 2 percentage points a year (Emiratisation). The UAE is a low-tax location, but no place for letterbox structures.
Which legal form is right for starting a business in the UAE?
Anyone who wants to create a company in Dubai or elsewhere in the Emirates almost always ends up with the LLC. What speaks for forming a subsidiary as an LLC is that since 2021 it can be 100 % foreign-owned even on the mainland and can also be formed as a one-person company with the suffix OPC. With several shareholders, the law allows two to a maximum of 50.
Every LLC needs at least one managing director, who can be a shareholder or a third party and is appointed in the memorandum or by the shareholders’ meeting. The capital does not have to be fully paid up at formation. For the register of beneficial owners the company also names a contact person resident in the UAE, usually the managing director.
Alongside it there is the option of setting up a branch of a foreign company or a representative office, which UAE rules confine to marketing and liaison without generating turnover. There is also the offshore company in Dubai, for example in Jebel Ali, or in Ras Al Khaimah, which holds assets but may not do business inside the UAE. For the classic subsidiary of a mid-sized company, the LLC remains the usual route, either on the mainland or in a free zone.
| Legal form | Liability | Typical use | Suitability for foreign investors |
|---|---|---|---|
| Mainland LLC | Limited to the company assets | Business with customers across the UAE, public contracts | Very suitable, mostly without a local partner since 2021 |
| Free zone company (FZ-LLC, FZE, FZCO) | Limited | Trade, services, holding, international business | Very suitable, mainland customers only indirectly |
| Branch | Parent company is directly liable | Presence without a separate entity | For special cases |
| Representative office | Parent company is directly liable | Market observation and liaison, no turnover | Only as a first step |
| Offshore company | Limited | Holding assets, no business inside the UAE | Unsuitable for operating subsidiaries |
Advantage: With an LLC the parent appears in the UAE as a local contracting partner, with its own licence, its own bank account and its own tax registration. The company applies for residence permits (visas) for the managing director and further staff.
Ongoing duties: Under company law every LLC has to prepare annual accounts, and above a certain size these have to be audited. The accounts follow international accounting standards. The licence is renewed annually, and changes to the register of partners have to be declared to the authorities and recorded within 30 days.
Tax audit: For corporate tax, audited accounts are compulsory from AED 50 million of revenue and for every free zone company that claims the 0 % rate.
Mainland or free zone: choosing a location in the UAE
Anyone comparing business setup in Dubai with Saudi Arabia usually looks at tax and visas first. The more important decision, however, is made within the Emirates: mainland or free zone, and if free zone, which one. These criteria are the decisive ones:
- Customers: A mainland LLC may sell throughout the UAE and take part in public tenders. A free zone company generally sells to mainland customers only through a licensed distributor or a mainland branch of its own.
- Licensing authority: On the mainland, the economic department of the emirate issues the licence, in Dubai the Department of Economy and Tourism. In a free zone it is the zone authority itself.
- Office: On the mainland every company needs a physical address, in Dubai with a registered tenancy contract (Ejari). Free zones often offer flexible office and desk solutions.
- Emirate: Dubai is the commercial centre, Abu Dhabi the seat of government and energy. Sharjah, Ras Al Khaimah and Ajman attract companies with lower licence fees and office rents than Dubai.
- Legal system: The financial free zones DIFC in Dubai and ADGM in Abu Dhabi have their own civil and commercial law on the English model, their own courts and their own employment law.
The free zone is usually the faster and more flexible route. Dubai free zone business setup starts with choosing the zone that fits the activity: Dubai Internet City for technology, the DMCC for commodities trading, Jebel Ali for logistics. For tax purposes a free zone company can pay 0 % corporate tax on qualifying income if it has real substance in the zone, presents audited accounts and keeps its other revenue to no more than 5 % or AED 5 million. If it loses that status, the standard rate applies for the current and the following four years.
The mainland is the right route as soon as customers, projects or authorities within the UAE are the focus. Since March 2025 Dubai has offered a middle way: with approval from the Department of Economy and Tourism, free zone companies can also operate on the mainland through a branch for twelve months, renewable, or with a short-term permit for up to six months. Goods moving from the free zone to the mainland are subject to customs duty.
InterGest Middle East is itself based in the Dubai Internet City free zone and works out with you before formation which location suits your customers.
What steps does starting a business in the UAE involve?
Seven steps stand between the first decision and an LLC in the UAE that can operate:
- Choose the location: Mainland or free zone, plus the emirate or the specific zone. This decision determines the licensing authority, customers, office and tax status.
- Define activity and licence: Every company may only work in the activities listed in its licence. The choice from the authority’s activity catalogue decides which licence you need, and in Dubai the trade license Dubai issues through the Department of Economy and Tourism.
- Prepare the documents: Passport copies and, for a parent company, a register extract and shareholder resolution, certified and legalised for the UAE, plus the memorandum of association.
- Agree with the authority: The authority checks name, activity and shareholders and grants an initial approval. On the mainland the registered tenancy contract for the office is part of this.
- Pay the fees and receive the licence: Once the formation fees are paid, the authority issues the licence and the founding documents; in a free zone usually within 14 working days of review. Commercial registration Dubai handles in the same step on the mainland.
- Apply for the manager’s visa: With the company documents, the company applies for the work permit, residence visa and Emirates ID of the managing director.
- Open the bank account: Only with the licence and, depending on the bank, the manager’s visa can the business account be opened. With our support this works without travelling.
The licence creates the company but does not complete the set-up. Within three months of formation it has to register for corporate tax, otherwise a penalty of AED 10,000 applies, and for VAT once turnover exceeds AED 375,000 in twelve months. On top come the register of beneficial owners and, once staff are on board, the wage protection system WPS. As a shareholder, you do not have to travel for the formation.
InterGest Middle East can take these steps off your hands or make them simpler, from choosing the location to the bank account, and keeps an eye on the deadlines.
What does starting a business in the UAE cost and how long does it take?
Authority formation fees are around AED 15,000 to 20,000. On top come the capital, usually AED 50,000 to 100,000, office rent and visa fees. There are no uniform official prices, because each free zone and each emirate sets its own fees. From choosing the location to the licence it usually takes one to three months, and the bank account often needs a few weeks more.
| Item | Duration |
|---|---|
| Initial call, choice of location and proposal | A few days |
| Defining activity and licence type | A few days |
| Certifying and legalising documents | Depends on your preparation |
| Initial approval from the authority | Depends on authority and activity |
| Licence and founding documents | In a free zone usually within 14 working days of review |
| Work permit, visa and Emirates ID | Following the licence |
| Opening the business account | Several weeks, depending on the bank |
| Corporate tax registration | Within 3 months of formation |
Corporate tax: For financial years starting on or after 1 June 2023, corporate tax UAE-wide is 9 % on taxable income above AED 375,000 and 0 % below. Free zone companies with qualifying status pay 0 % on qualifying income, but without the allowance. Up to AED 3 million of revenue, businesses can elect small business relief, extended to tax periods ending by the end of 2029. Large multinational groups with group revenue of EUR 750 million or more have faced a 15 % minimum tax since 2025. Returns and payment fall due within nine months of the end of the tax period.
VAT: The UAE has levied VAT since 2018, at a rate of 5 %. Registration is compulsory from AED 375,000 of taxable supplies in twelve months and voluntary from AED 187,500.
Withholding tax and treaty: The UAE levies no withholding tax on dividends, interest or royalties paid to recipients abroad. The double taxation treaty with Germany expired at the end of 2021, and a new one is under negotiation. Dividends therefore reach Germany in full and are taxed there under the general rules.
Note: If the company is in fact managed from Germany, it can become fully taxable in Germany, and without a treaty there is no rule to resolve that conflict. Real management on the ground is therefore no formality.
Which documents do I need for starting a business in the UAE?
Which documents you need depends mainly on whether an individual or a company is the founder. What takes time is usually the legalisation of German documents for the UAE.
For the company:
- Company name with alternatives
- Planned activities from the authority’s catalogue
- Memorandum of association and, where applicable, articles
- On the mainland: registered tenancy contract for the office
For shareholders and management:
- Passport copies of all shareholders and the managing director
- For a parent company: register extract, articles and shareholder resolution on the formation, certified and legalised
- Power of attorney for the local representative
- Details of beneficial owners holding 25 % or more of shares or votes
At the end, a mainland company holds its licence and its registered memorandum, which serves as the articles of association under UAE company law. In the free zones of Dubai and the other emirates, a company also receives a certificate of incorporation. There is no single nationwide register: each emirate and each free zone keeps its own. You will find answers to common questions in our FAQs.
Which legal aspects apply when starting a business in the UAE?
Starting a business in the UAE on the mainland is governed by the commercial companies law, Federal Decree-Law No. 32 of 2021, last amended in 2025. It regulates the LLC, the joint stock company and the branch, the number of shareholders, capital, management and audit. Since the 2020 law on foreign ownership, foreigners may own mainland companies outright for most activities; exceptions apply to activities of strategic importance such as security, defence, telecoms, banking and insurance.
On the mainland the licence comes from the economic department of the emirate, in the free zones from the zone authority under its own rules. There is no single registrar of companies UAE businesses deal with: in Dubai the entry goes into the Dubai commercial register kept by the Department of Economy and Tourism, in a free zone into the zone’s own register. Tax matters sit with the Federal Tax Authority, which administers corporate tax and VAT. Employment law and work permits sit with the Ministry of Human Resources and Emiratisation (MoHRE), visas and Emirates ID with the Federal Authority for Identity and Citizenship.
These authorities and legal foundations accompany every company registration in UAE free zones and on the mainland:
| Legal basis / authority | Function |
|---|---|
| Federal Decree-Law No. 32 of 2021 | Governs the LLC, joint stock company and branch on the mainland. |
| Economic department of the emirate (Dubai: DET) | Issues the mainland licence and keeps the emirate’s register. |
| Free zone authorities | Issue the licence and founding documents under their own rules. |
| Federal Tax Authority | Administers corporate tax (9 % above AED 375,000) and VAT (5 %). |
| Federal Decree-Law No. 33 of 2021 | Governs employment contracts, end-of-service gratuity and working hours on the mainland. |
| MoHRE | Issues work permits and monitors wage payments (WPS) and Emiratisation quotas. |
| Cabinet Decision No. 109 of 2023 | Governs the register of beneficial owners. |
Accounting: For tax purposes IFRS is compulsory, and up to AED 50 million of revenue IFRS for SMEs is enough; accounting under UAE tax law therefore needs people who know IFRS. Where audited accounts are required, a company works with one of the approved audit firms in Dubai or the other emirates, and for day-to-day work a chartered accountant in Dubai is the usual point of contact.
Staff: Foreign employees are entitled to an end-of-service gratuity after one year: 21 days of basic salary per year for the first five years, 30 days thereafter, capped at two years’ pay. No pension contributions apply to foreigners. Salaries are paid monthly through the wage protection system. Mainland companies with 50 or more employees have to raise the share of Emiratis in skilled roles by 2 percentage points every year.
Transparency: Every company keeps a register of beneficial owners holding 25 % or more of shares or votes and reports changes on time. The former economic substance filings no longer apply for financial years after 2022.
What financing options are there for starting a business in the UAE?
Parent companies that set up a company in Dubai or another emirate typically finance it from several sources:
- Equity from the home country: The standard route. The capital does not have to be fully paid up at formation.
- Shareholder loans: Common and free of exchange control. Document the agreement and market-rate interest, because corporate tax requires transfer prices at arm’s length.
- Local bank loans: Banks in the UAE usually lend to new companies with foreign owners only against a parent guarantee and after a longer banking relationship.
- Investor programmes: Investors contributing at least AED 2 million can obtain a golden visa, a long-term residence permit. It adds nothing to the financing, but it makes residence and dealings with local banks easier.
- Venture capital: Venture capital and business angels are active mainly in Dubai and Abu Dhabi, but for the classic subsidiary of a mid-sized company they rarely play a role.
Which structure fits depends on the sector, the capital requirement and the pace; usually it is equity plus a shareholder loan. InterGest Middle East reviews the capital structure as a whole, including the German taxation of the parent.
Wrong location chosen
The cheapest free zone is not automatically the right one. Anyone who later wants to sell to mainland customers or to the authorities needs a distributor, a branch or a second company, and moving between zones usually means forming again.
Before formation we check where your customers are and which zone fits.
Wrong licence or activity applied for
The company may only do what its licence lists. If an activity is missing, the first contract stalls, and an amendment costs time and fees; some activities also need approval from a sector regulator.
We select the activities so that they cover your business today and the business you are planning.
Bank account and deadlines underestimated
Banks look closely at structure, source of funds and business model, and incomplete documents delay the account opening by weeks. At the same time, the tax registration deadlines run from the day of formation, and missing them costs an AED 10,000 penalty.
We prepare the bank application in full and keep an eye on the tax deadlines.
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What InterGest in the UAE handles for you
Short answer: InterGest Middle East guides foreign companies from choosing the location through formation, visas, accounting and payroll to the reporting for headquarters. From Dubai, the team works in German and English.
Led by Holger Ochs, InterGest Middle East connects the practice of the authorities in the emirates and free zones with what an international parent company expects in reports and standards.
- Formation: Choice of location, licence, memorandum, coordination with the authorities and fiduciary administration. We prepare the documents and coordinate authority, bank and legalisation.
- Visas: Work permit, residence visa and Emirates ID for the managing director and staff.
- Accounting: Accounting services in Dubai under IFRS: day-to-day books, annual accounts and the coordination with the auditor.
- Tax: Registration and returns for corporate tax and VAT, transfer pricing documentation and the deadlines that go with them.
- Payroll and HR: We run payroll services in Dubai and the other emirates through the wage protection system, which every payroll service used by employers in the UAE has to follow, plus employment contracts, gratuity calculations and support with recruitment, as recruitment companies in Dubai provide it, but tied in with visas and payroll.
- Legal and contracts: Advice on company, employment, tax and real estate law, contract review and support in negotiations.
- Administration and sales: Invoicing and dunning, import and export administration and support in building up sales.
One dedicated contact steers all of this, instead of sending you back and forth between free zone authority, bank, tax authority and visa office. Our page with all InterGest services gives you an overview of our worldwide range.
Ready for your market entry in the UAE?
When will you start?
Do I have to travel to the UAE to set up a company?
No. With a power of attorney and legalised documents the formation can be handled entirely from Germany, and with our support the bank account as well.
For the managing director’s residence visa, however, entry is needed, because the medical check and Emirates ID take place locally. Anyone who genuinely manages the company will be on the ground regularly anyway.
What do I need to set up a company in Dubai?
A clear activity, a suitable location, legalised documents and a managing director. There is no statutory minimum capital, but the authorities expect funding that fits the activity.
On the mainland you also need an office with a registered tenancy contract, while in a free zone a flexible desk is often enough. A local partner is only required in a few strategic sectors.
Is there company tax in Dubai?
Yes, since 2023. Business tax in Dubai means 9 % corporate tax on profits above AED 375,000, VAT has applied since 2018, and large groups have paid at least 15 % since 2025.
The burden remains low, and there is no income tax on salaries. Treating the UAE as a tax haven is still risky: without a double taxation treaty and with German controlled foreign company rules, real substance on the ground counts for more than the rate.
How to register a company in UAE free zones?
Through the zone authority, usually online. You choose the zone and the activity, submit the legalised documents and, after review, usually receive the licence and the certificate of incorporation from the free zone within 14 working days.
The choice of zone matters most, because it decides activities, costs and access to the mainland. Details are in the mainland or free zone section.
What does setting up business in UAE cost, and how long does company registration in UAE take?
Around AED 15,000 to 20,000 in authority formation fees and one to three months. On top come capital, usually AED 50,000 to 100,000, office and visa fees.
There are no uniform official prices, because each free zone and each emirate sets its own fees. We prepare a concrete quote after the initial consultation.
What are the visa options available for entrepreneurs starting a business in UAE?
Three routes are common. As an employee of his own company the managing director receives a work permit, a two-year residence visa and an Emirates ID.
Investors and partners can apply for a five-year green visa without a sponsor, and from an investment of AED 2 million a golden visa for up to ten years is possible.
Can I get a business license online for a startup in UAE?
In many free zones, yes. Application, documents and payment run through the zone’s portal, and the free zone sends the business license electronically.
On the Dubai mainland the process is also largely digital but requires a registered tenancy contract. Which licence you need depends on the activity.
Is there a double taxation treaty between Germany and the UAE?
Not at present. The old treaty expired at the end of 2021, and a new one is being negotiated but had not been concluded by October 2026.
Because the UAE levies no withholding tax, dividends reach Germany in full. The general rules apply there, and with a tax burden below 15 % the controlled foreign company rules can apply to passive income.
What VAT applies in the UAE?
How do I book an initial consultation on business formation in Dubai?
Through the contact form on this page or by phone. Holger Ochs can be reached in Dubai on +971 4 390 0636, and for meetings in Germany there is a contact address in Bamberg.
The initial consultation is free and without obligation. Bring along what the company is meant to do and where your customers are, and we can place location and costs straight away.
Why should I choose InterGest for starting a business in the UAE?
Because the support does not end with the licence. InterGest Middle East guides you from choosing the location through formation, visas, accounting, tax and payroll to the reporting for headquarters, with one dedicated contact instead of many interfaces.
On the ground, Holger Ochs leads the team in Dubai Internet City and has worked in the region for more than two decades. The team works in German and English, and InterGest Middle East has been in place since 2004.
Add to that the network: InterGest has been active in over 50 countries since 1972. Whoever starts in the UAE can later use the same proven structure elsewhere, for example in Germany, China or the USA. See the full range under all InterGest services.