UAE company formation.

A hub between East and West.

The UAE has become a major base for trading, services and regional headquarters, with modern infrastructure and a growing treaty network.

Each UAE company is licensed by a competent authority: an emirate’s economic department for mainland businesses, or a free zone authority for companies established in a free zone. Corporate tax is administered at federal level by the Federal Tax Authority under Federal Decree-Law No. 47 of 2022. The UAE is now an onshore, tax-paying jurisdiction, although its rates remain competitive and specific relief is available to qualifying free zone persons.

AT Express is headquartered in Cyprus, with offices in the United Kingdom, Hong Kong, China, Vietnam and Singapore. We coordinate UAE formations with licensed local providers and help clients choose between free zone and mainland options.

Free zone or mainland.

Free zone companies are licensed by their free zone authority, can usually be wholly foreign-owned and are designed for international trade and services, although direct trading with the mainland market is restricted. Mainland companies, usually limited liability companies, may trade throughout the UAE, and many activities can now be fully foreign-owned. The appropriate free zone depends on the activity, the visas required and the office arrangements on offer.

What sets the UAE apart.

• Wide choice of free zones, each with its own licensing rules, office options and fees.
• Foreign ownership permitted in free zones and for many mainland activities.
• Residence visas linked to the company and its office space.
• Competitive corporate tax, with no personal income tax on individuals’ employment income.
• Strategic location between Europe, Asia and Africa.

Corporate tax in the UAE.

According to the Federal Tax Authority, taxable income up to AED 375,000 is taxed at 0% and income above that threshold at 9%. A qualifying free zone person pays 0% on qualifying income and 9% on other taxable income, provided it maintains adequate substance in the UAE, derives qualifying income, complies with transfer pricing rules, prepares audited financial statements, does not elect to be taxed at the standard rates and keeps its non-qualifying revenue within the de minimis limit of the lower of AED 5 million or 5% of total revenue.

Every taxable person, including free zone companies, must register for corporate tax and file an annual return. Failing a qualifying condition removes the 0% treatment for that period and the following four tax periods.

A balanced view.

What you will need.

• A licensed activity and a competent authority, free zone or mainland.
• Office space or a lease arrangement as required by the authority.
• Shareholder and manager details, with passport copies and photographs.
• A memorandum or articles of association in the authority’s format.
• Corporate tax registration with the Federal Tax Authority after licensing.

From first call to licence.

Timetables vary by authority, activity and visa requirements. We confirm a realistic timetable in our written proposal.

Keeping the company in good standing.

• Annual licence renewal with the free zone or mainland authority.
• Corporate tax return filed with the Federal Tax Authority each year.
• Audited financial statements where required by the authority, and in any case for qualifying free zone persons.
• Ultimate beneficial owner register maintained and filed with the licensing authority.
• Transfer pricing documentation for transactions with related parties.

Banking for a UAE company.

UAE banks expect a valid licence, a lease, evidence of substance and full information on the owners, and many require a resident manager or visa holder. Approval is at the bank’s discretion and timetables vary. See international bank account opening and our guide to free zone companies and corporate tax.

Frequently asked questions.

Official sources.

1. Federal Tax Authority, Corporate Tax general guide — rates, registration and returns.
2. Federal Tax Authority, Basic tax information: free zone persons.
3. Council of the European Union, EU list of non-cooperative jurisdictions for tax purposes.
4. OECD, International standards on tax transparency, including the Common Reporting Standard.
5. Internal Revenue Service, Foreign Account Tax Compliance Act (FATCA).

Hero image: “Rub al Khali 002” by Nepenthes, licensed under CC BY-SA 3.0.