Company formationMiddle EastUAE company formation for international founders
A UAE company is a mainland or free zone entity used by founders who want a low-tax, internationally accepted base with residence attached. As of October 2026, corporate tax is 0% on the first AED 375,000 of taxable income and 9% above, with 0% possible on qualifying free zone income.
Updated
The first choice is free zone or mainland. Free zone companies are licensed by a specific zone and suit international service, holding and online businesses; mainland companies are needed to trade directly with UAE customers, run physical retail or sign many local contracts. Each zone belongs to an emirate, and visas, medical tests and biometrics happen in that same emirate.
Every company needs a licensed office. For most service businesses a flexi-desk or virtual office package from the free zone is enough, and it usually includes the registered address and basic compliance support.
Corporate tax applies to tax periods starting on or after 1 June 2023. A free zone company keeps 0% on qualifying income only if it is a Qualifying Free Zone Person; its other taxable income is taxed at 9%, without the AED 375,000 zero band. Projections should assume 9% until a qualifying position is confirmed.
Redomiciled coordinates licensing, visas and bank introductions; UAE tax agents and lawyers give the advice.
Who it suits
International consultants and agencies
Your clients are abroad and you want a credible, low-tax company with residence attached.
Online and digital businesses
You sell services or software internationally and need multi-currency banking.
Holding structures
You want a UAE holding company above operating entities, structured carefully around substance.
Founders leaving aggressive offshore setups
You want a compliant jurisdiction that banks and counterparties accept more readily.
Requirements
- Required
Licensed office or flexi-desk
A physical or flexible office in the licensing emirate.
- Required
Shareholder and manager documents
Passports, photos and, for corporate shareholders, attested company documents.
- Required
Activities matching the licence
The licence lists permitted activities; trading with the mainland can require a mainland licence.
- Required
Corporate tax registration and returns
Companies register with the Federal Tax Authority and file annual returns.
- Depends on your case
Qualifying Free Zone Person status
Possible for qualifying income with adequate substance; needs careful review.
- Depends on your case
Residence visas for owners and staff
The company sponsors visas within its allocation.
Documents
- Passport copiesFor all shareholders and managers.
- Business plan or activity descriptionUsed for licensing and later by banks.
- Corporate shareholder documentsAttested certificate of incorporation, articles and board resolution when a company holds shares.
- Office lease or flexi-desk agreementIssued by the free zone or the landlord.
- Proof of address and source of fundsRequested by banks during onboarding.
Timeline
- 1Choose jurisdiction and activityFree zone or mainland, the emirate, and the licence activities.
- 2Licence and incorporationName approval, office package and licence issue.
- 3Visa processEntry permit, medical test, biometrics and Emirates ID in the same emirate.
- 4Corporate tax registrationRegister with the Federal Tax Authority.
- 5Bank onboardingIn our experience two to eight weeks, subject to each bank's due diligence.
Tax notes
- Ordinary taxable persons pay 0% on the first AED 375,000 of taxable income and 9% on the rest.
- Qualifying Free Zone Persons pay 0% on qualifying income and 9% on other taxable income, with no zero band for the non-qualifying part.
- A company incorporated in the UAE is UAE tax resident; the Federal Tax Authority issues a tax residency certificate once the company has existed for at least 12 months.
- Transfer pricing, group restructurings and the minimum tax for large multinationals go beyond a typical founder setup; a licensed tax agent should review them.
General information, not tax advice. Your position depends on your circumstances.
Banking fit
- Free zone companies with clear international activity and a resident owner are the easiest profile to bank.
- Expect source-of-funds questions and business-model reviews; rejections happen, so an organised file matters.
- Our UAE network covers corporate, private and multi-currency options; start with the banking assessment.
Questions
Should I choose a free zone or a mainland company?
Free zone companies suit international services, holding and online businesses. Mainland companies are required to trade directly with UAE customers or run physical retail. The choice also fixes the emirate where your visa, medical test and biometrics take place.
What is the corporate tax rate in the UAE?
0% on taxable income up to AED 375,000 and 9% above, for tax periods starting on or after 1 June 2023. Qualifying free zone income can be taxed at 0%, but such companies pay 9% on their other income.
Do free zone companies pay 0% tax?
Only on qualifying income, and only if the company meets the Qualifying Free Zone Person conditions, including adequate substance. Many service businesses do not fully qualify, so we plan on 9% until the position is confirmed.
Do I need an office for a UAE company?
Yes, a licensed office is required. For most service businesses a flexi-desk or virtual office package from the free zone meets the requirement and also provides the registered address.
Can a UAE company get a tax residency certificate?
Yes. Companies incorporated in the UAE are tax resident, and the Federal Tax Authority issues certificates on application once the company has existed for at least 12 months. Branches of foreign companies are not eligible.
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Sources
- UAE Government portal: Corporate tax, retrieved 2026-10-25
- Federal Tax Authority: Corporate Tax General Guide, retrieved 2026-10-25
- Cabinet Decision No. 85 of 2022 on the Determination of Tax Residency (Federal Tax Authority), retrieved 2026-10-25
- ICP (Federal Authority for Identity, Citizenship, Customs and Port Security): Golden Residency guide, retrieved 2026-10-25
- UAE Government portal: Golden visa, retrieved 2026-10-25
- UAE Government portal: General provisions for the residence visa, retrieved 2026-10-25
- PwC Worldwide Tax Summaries: United Arab Emirates, taxes on personal income, retrieved 2026-10-25
- Dubai Land Department: Golden Visa application (investor), retrieved 2026-10-25
- Federal Tax Authority: Issuance of tax residency certificates, retrieved 2026-10-25
- Redomiciled case experience: UAE company and banking files (internal), retrieved 2026-10-25
Reviewed by the Redomiciled team on .
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