Countries/UAE & Dubai
United Arab Emirates

Starting a business in United Arab Emirates

Free zone and mainland are two different companies with two different tax answers. Pick the wrong one and the 0% you came for does not apply.

Free zone or Mainland?All guides
At a glanceVerified Sep 2026
9%
Corporate tax
0%
Qualifying free zone
5%
VAT
AED 0
Minimum capital
Verified against official sourcesSee citations →

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UAE & Dubai guides
Company formationRegistration steps, costs, timelines and documents.Corporate taxRates, VAT and the reliefs that actually apply.Business lawsCompliance, UBO rules, labour law and penalties.Free zonesChoosing a zone, setup process, mainland comparison.Banking & financeBusiness accounts, payment gateways, crypto rules.Visas & residencyGolden, investor and freelance visa pathways.

The decision that shapes everything: free zone or mainland

Free zone
30+ zones, FZ-LLC or FZE
  • 0% on qualifying income under the QFZP regime
  • 100% foreign ownership, always
  • Cannot sell directly to the UAE mainland
  • Substance in the zone is tested, not assumed
vs
Mainland
DED licence, LLC
  • 9% above AED 375,000 of taxable profit
  • 100% foreign ownership for most activities since 2021
  • Trades anywhere in the UAE without a distributor
  • Local service agent still required for some activities
Still unsure which fits your activity?Read UAE mainland vs free zone →

Where founders actually set up

Indicative · check the zone authority
Zone
Emirate
Known for
DMCC
Dubai Multi Commodities Centre
Dubai
Trading, commodities and crypto; the largest by company count
IFZA
International Free Zone Authority
Dubai
Low-cost consultancy and service licences
JAFZA
Jebel Ali Free Zone
Dubai
Logistics, manufacturing, port-adjacent warehousing
DIFC
Dubai International Financial Centre
Dubai
Finance and fintech under English common law
ADGM
Abu Dhabi Global Market
Abu Dhabi
Funds, family offices, digital assets
RAKEZ
Ras Al Khaimah Economic Zone
Ras Al Khaimah
Budget industrial and SME packages

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How United Arab Emirates stacks up

Low tax is only one variable. Setup cost, banking friction and substance requirements decide whether it actually works for you.

Dubai vs Singapore for businessGuideUAE mainland vs free zoneGuideUAE vs Singapore vs Estonia for remote businessGuideADGM vs DIFC: which UAE free zoneGuide

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