WhatsApp Chat
DEEN繁简

Diese Seite gibt es auch auf Deutsch. Auf Deutsch lesen

本页面也有简体中文版。 阅读简体中文版

本頁面也有繁體中文版。 閱讀繁體中文版

Dubai · Incorporation

Company Formation
Dubai Free Zone

Company formation in Dubai: your company can be 100% foreign-owned, in a free zone or on the mainland. Corporate tax: 0% on taxable income up to AED 375,000, 9% above; 0% on higher profits only on qualifying income of a Qualifying Free Zone Person. Whether your home country also taxes the company depends on where you live and where you run it from; we clarify this in the initial consultation.

Pathfinder
Dubai Skyline
Corporate Tax9% above AED 375,000
Incorporationlargely remote
Foreign Ownership100%
Personal Income Taxcurrently not levied

Last updated: 10/2026

Can I set up a company in Dubai as a foreigner, and what does it mean for my tax?

Yes. A Dubai company can be 100% foreign-owned, in a free zone or on the mainland; a residence visa is a separate application. UAE corporate tax is 0% on taxable income up to AED 375,000 and 9% above. Only a Qualifying Free Zone Person that meets all conditions of the Federal Tax Authority obtains 0% on higher profits, and only on qualifying income. Your home country applies its own rules: Germany, for example, taxes a company whose centre of management is in Germany (§ 10 AO, § 1 KStG). Your personal tax follows your residence.

Dubai company: key facts

Legal formFree zone company or mainland company. A free zone company trades freely within the free zone and internationally; in the UAE mainland it sells only through a licensed mainland distributor or its own mainland branch or company source
Shareholdersany nationality; 100% foreign ownership in free zones and on the mainland, with exceptions there for activities of strategic impact (e.g. security, telecommunications, banking) source
Corporate tax0% on taxable income up to AED 375,000, 9% above; for financial years starting on or after 1 June 2023, free zone companies included (Federal Decree-Law No. 47 of 2022) source · source 2
Qualifying Free Zone Person0% only on qualifying income, 9% on all other income, without the AED 375,000 band. Conditions include adequate substance in the free zone, audited financial statements, transfer pricing documentation, non-qualifying revenue of no more than AED 5 million or 5%; transactions with natural persons are generally excluded source
VAT5%; registration mandatory once taxable supplies and imports exceed AED 375,000 a year, optional above AED 187,500 source
Personal income taxunder current rules no income tax on individuals; individuals doing business under a commercial licence can fall under corporate tax source · source 2
Beneficial ownersrecorded for every company, including in commercial free zones: anyone holding 25% or more of the shares or voting rights or able to appoint or dismiss the majority of directors (Cabinet Resolution No. 109 of 2023) source
Residence visaa separate application decided by the authority; it includes a medical test, a security check and the Emirates ID. Investors and business partners can apply for the Green visa (five years, no sponsor) if they meet the requirements source · source 2
Ongoing dutiesrenew the licence before it expires; register for corporate tax with the FTA (free zone companies too); file the return and pay within 9 months after the end of each financial year source · source 2
Management from Germanyif the centre of management is in Germany, the company is liable to German corporate tax on all its income (§ 10 AO, § 1 KStG) source · source 2

As of · Sources: UAE Ministry of Finance and Federal Tax Authority (FTA), UAE government portal u.ae, Ministry of Economy & Tourism, Invest in Dubai; German law: gesetze-im-internet.de · German CFC rules (§ 7 AStG) · low taxation below 15% (§ 8 AStG)

Overview

Free zone or mainland: what fits your business

A free zone company fits if you trade internationally or serve customers outside the UAE: it can be 100% yours, and goods move into and out of the free zone without customs duty as long as they do not enter the mainland. To sell to customers in the UAE itself, a free zone company needs a licensed mainland distributor or its own mainland branch; a mainland company is then often the more direct route. On tax, Dubai does little for you as long as you live in Germany and run the company from there, because it is then taxable in Germany.

We guide the incorporation from the choice between free zone and mainland through the licence and the corporate tax registration to support with the account opening and the residence visa. Much of it runs remotely; for the residence visa you travel to the UAE. Accounting and tax in Dubai → Dubai investor visa →

A Dubai company can be 100% yours

0% corporate tax on taxable income up to AED 375,000, 9% above
0% on qualifying income only as a Qualifying Free Zone Person that meets all conditions
100% foreign ownership in free zones; on the mainland with exceptions for activities of strategic impact
Free zone: import and re-export goods without customs duty as long as they do not enter the mainland
Under current rules no income tax on individuals in the UAE; what applies to you depends on your residence
5% VAT; registration mandatory above AED 375,000 of taxable supplies a year
Residence visa for shareholders as a separate application, subject to authority approval
Support with the account opening (e.g. ENBD, ADCB, Mashreq, Airwallex); the bank decides itself

Tax in Dubai and at home: what applies to you

The UAE levies corporate tax for financial years starting on or after 1 June 2023, free zone companies included: 0% on taxable income up to AED 375,000, 9% above. Only a Qualifying Free Zone Person obtains 0% on higher profits, and only on qualifying income; everything else is taxed at 9%, without the 0% band. Under current rules the UAE does not levy income tax on individuals. Your home country applies its own law. In Germany, for example, a company whose centre of management is in Germany is liable to corporate tax there on all its income (§ 10 AO, § 1 KStG). Even if the company is genuinely run from Dubai, German CFC rules can apply when persons fully taxable in Germany hold more than half of the shares: income taxed at less than 15% that does not come from one of the activities listed in § 8(1) AStG is then taxed in Germany (§§ 7, 8 AStG). Whether this affects your income we clarify with your tax adviser before you incorporate.

Incorporation Process

The licensing authority and the bank set the timeline; we tell you the current state in the call.

01

Free zone or mainland: selection and consultation

We compare free zones and the mainland for your business model and clarify licence type, activities and number of visas.

02

Documents & KYC

You send us the required documents (ID, proof of address, business plan). We prepare all incorporation documents.

03

Licensing & Registration

We file the documents with the competent licensing authority: the free zone authority, or on the mainland the emirate’s economic department. You receive your trade licence and incorporation documents; we then register the company with the FTA for corporate tax.

04

Support with account opening

We prepare the account application with you, for example with ENBD, ADCB or Mashreq for local banking, or Airwallex and Wise for international payments. The bank decides on the opening.

05

Visa & Residence

Optional: we assist you with the residence visa application for you and your family; the authorities decide on the application.

Questions about setting up a company in Dubai

Free zone or mainland: which Dubai company fits?
It depends on where your customers are. A free zone company may trade freely within the free zone and internationally, and goods move into and out of the free zone without customs duty as long as they do not enter the mainland. To sell to customers in the UAE itself, a free zone company needs a licensed mainland distributor or its own mainland branch; a mainland company is then often the more direct route. Both can be 100% foreign-owned, on the mainland with exceptions for activities of strategic impact such as security, telecommunications and banking. Both pay corporate tax; only a free zone company can obtain 0% on qualifying income as a Qualifying Free Zone Person.
Does a company in Dubai pay tax?
Yes. For financial years starting on or after 1 June 2023 the UAE levies corporate tax (Federal Decree-Law No. 47 of 2022), free zone companies included: 0% on taxable income up to AED 375,000, 9% above. VAT at 5% applies once the company must register. A free zone alone therefore does not lower the tax; 0% on higher profits applies only to qualifying income of a Qualifying Free Zone Person that meets all conditions. If you live elsewhere, your home country’s tax rules apply on top.
Is there 0% corporate tax in a Dubai free zone?
Only on qualifying income, and only if the company meets all conditions of a Qualifying Free Zone Person. According to the Federal Tax Authority these include adequate substance in the free zone, audited financial statements, arm’s length transfer pricing with documentation, and non-qualifying revenue of no more than AED 5 million or 5% of total revenue, whichever is lower. Transactions with natural persons are generally excluded activities. All income that does not qualify is taxed at 9%, without the AED 375,000 band. If the company fails a condition, it loses the status for that tax period and the four following ones.
Can I set up a company in Dubai without UAE residence?
Yes. The company and the residence visa are two separate applications; you apply for the visa only if you want to live in the UAE, and the authority decides. For tax, however, a Dubai company does little if you do not move: if you stay resident in Germany, for example, and run the company from there, its centre of management is in Germany (§ 10 AO) and it is liable to German corporate tax on all its income (§ 1 KStG). If tax is your only reason and you stay where you are, we advise against forming one.
I live in Germany: where does my Dubai company pay tax?
If you run the company from Germany, in Germany. German law defines the place of management as the centre of top-level management (§ 10 AO); if it is in Germany, the company is liable to German corporate tax on all its income (§ 1 KStG). Even if the company is genuinely run from Dubai, German CFC rules can apply: if you alone or with related persons hold more than half of the shares, company income that is taxed at less than 15% and does not come from one of the activities listed in § 8(1) AStG is taxed in your hands in Germany (§§ 7, 8 AStG). The UAE rates of 0% and 9% are below that threshold. Whether your income is affected we clarify with your tax adviser before you incorporate.
Do I need to travel to Dubai to set up the company?
Not necessarily for the incorporation itself; much of it runs remotely. For the residence visa you travel to the UAE, because it includes a medical test, a security check and the Emirates ID application.
Can I get a residence visa through the company?
You can apply; the authority checks and decides. Investors and business partners are among the groups that can apply for the Green visa: a five-year residence visa without a sponsor, with which you can also sponsor your spouse and children, if you meet the requirements. We prepare the application with you. A visa alone does not change where the company is managed; for German tax, what counts is the centre of management (§ 10 AO).
How do I open a business account for my Dubai company?
We support you with the account opening and prepare the application with you, for example with ENBD, ADCB or Mashreq for local banking, or Airwallex and Wise for international payments. Each bank checks who owns the company, where the money comes from and who your customers and suppliers are, and then decides. Nobody can give a timeline or a promise.
Is there VAT in Dubai?
Yes, 5%. A UAE business must register once its taxable supplies and imports exceed AED 375,000 a year; above AED 187,500 registration is optional. Companies in free zones with special VAT rules (designated zones) must also register once they cross the threshold.
What ongoing duties does a Dubai company have?
Renew the licence before it expires, and for each financial year file the corporate tax return with the FTA and pay within 9 months after the year ends. Every taxable company must register for corporate tax, including in a free zone. A Qualifying Free Zone Person also needs audited financial statements. Once taxable supplies exceed AED 375,000 a year, regular VAT returns follow. The beneficial owners (25% or more of shares or voting rights) are recorded for every company. On request we look after bookkeeping, the tax return and VAT on an ongoing basis.
What does company formation in Dubai cost?
It depends on free zone or mainland, licence type, activity and number of visas; even the fee for renewing a licence depends on the activity. We quote our own fees in a written offer before any engagement; government fees are shown separately.
Does the UAE levy income tax on individuals?
Not under current rules; the UAE does not levy income tax on individuals. Corporate tax, by contrast, applies to company profits, and individuals doing business under a commercial licence can fall under it too. Whether your salary or distributions are taxed elsewhere depends on your tax residence.

Next step: the first call

Free initial consultation: 60 minutes, no obligation.

Written offer before any engagement; government fees shown separately.

Pathfinder StartWhatsApp

Corporate tax compared

Standard rates on the company’s profit

Hong Kong8.25% / 16.5%

Profits tax, two-tier: 8.25% up to HKD 2 million profit

Singapore17%

Corporate income tax, partial exemptions only for qualifying income

Dubai (UAE)9%

on the part above AED 375,000; 0% below it and on qualifying free-zone income

Labuan3%

on audited net profit from Labuan trading activity, with substance on site

USA21%

federal rate for corporations, plus state tax where due; an LLC is taxed differently

Germany~30%

15% corporate tax plus solidarity surcharge and trade tax

Netherlands19% / 25.8%

19% up to EUR 200,000 profit

France25%

What you pay yourself depends on where you live and where the company is actually managed. As of 22 Oct 2026, sources: IRD · IRAS · FTA (VAE) · LHDN · IRS · Belastingdienst · impots.gouv.fr

Dubai vs HK vs SG vs USA vs UK: Company Formation Compared

Compare the key jurisdictions for your company formation at a glance.

Corporate Tax0% up to AED 375,000, 9% above
Capital Gains Taxnone separate; company gains: corporate tax
Personal Income Taxnone (under current rules)
VAT5%
100% Foreign OwnershipYes (mainland: with exceptions)
1 / 5

Headline rates as of 2026, without guarantee. Dubai: 0% on higher profits only on qualifying income of a Qualifying Free Zone Person that meets all conditions. Hong Kong taxes only profits sourced in Hong Kong; offshore profits may be exempt, subject to IRD review. Capital gains tax 0% applies only to gains of a capital, not a trading, nature. Your personal tax follows your residence.

Not sure yet?

Find Your Optimal Solution

A first assessment in 2 minutes: which location fits your goals

Select your goals, free and without obligation.

Free ~2 minutes No sign-up Confidential

Your data is treated confidentially and never shared with third parties.

Contact

Speak with Our Team

Tell us what it is about: company formation, accounting and tax, or a visa. You will hear from us within one business day.

Send a Message

All fields marked * are required.

Topics (multiple choice) *

By submitting this form, you agree to our Privacy Policy and consent to being contacted by Strasia Group.

Your enquiry goes straight to an advisor, not to an automated system. You will hear from us within one business day.