FAQ

In the UAE, the Value Added Tax (VAT) is the sole tax imposed. Companies are required to pay VAT only if their local business activities within the UAE surpass 375,000 AED or 100,000 $.

Free zones in the UAE have introduced a new offering called the freelance permit and visa. This product is designed for individuals who prefer not to establish a company due to cost constraints, yet still desire the freedom to continue their work independently without the need for sponsorship or employment by another company. Under this concept, the free zone acts as the complete sponsor, directly issuing the residence visa from the Free Zone Authority. Essentially, individuals classified as "self-sponsored" can avail themselves of this option to maintain greater autonomy in their professional pursuits.

Earlier, mainland companies were 51 % owned by Local and 49 % by Non resident Expat, however from June 1, 2021, as per new commercial Companies law of UAE, investors can have 100% ownership in the Trading companies except certain activities . The new laws has changed the entire ownership program. However there are certain professional licenses , wherein 100% shares are held by expat partner and one UAE National is appointed as a Local Service Agent.

The term "offshore" refers to operating outside one's own jurisdiction. In the UAE, foreign investors have the opportunity to establish offshore companies for conducting business activities that occur outside the UAE. Offshore companies provide the benefit of opening a bank account for business transactions; however, it is important to note that UAE visas cannot be obtained under this type of company. Offshore companies serve as a means to hold assets both within and outside the UAE, making them suitable for acting as holding companies.

The allocation of visas per company is determined by the type of company and the package chosen. The number of visas available varies depending on the specific company type and its associated activities.

Having a UAE residence visa is not a mandatory requirement for company ownership; it is optional. However, owning a company grants you the eligibility to apply for a UAE residence visa.

COVID vaccination is provided at no cost and is accessible exclusively to residents of the UAE.

To establish a company in the UAE, having a company address is necessary. However, renting a physical office space is not obligatory. UAE authorities accept virtual offices and desk spaces as valid alternatives, which offer cost-effective solutions and are accepted by authorities and banks in the UAE.

The duration for obtaining a company license varies depending on the specific company type. On average, it takes approximately one week to issue a company license once all the necessary requirements have been fulfilled.

When establishing a company in Dubai, there are several expenses to consider, including the following: acquiring a commercial license, purchasing the company's website, obtaining work permits for employees, securing the necessary visas to commence work, opening a corporate bank account and depositing the required capital (dependent on the business type), determining the legal form of the company, and covering costs associated with equipping the company or office (such as furniture, decorations, and equipment). These expenses contribute to the overall investment required to set up and operate your business effectively in Dubai.

An offshore company is a legal entity established in a foreign country, different from the investor's home country. Investors opt for offshore companies to benefit from advantageous tax conditions, such as low taxes or tax exemptions, provided by other countries. Dubai is recognized as one of the prominent emirates where establishing an offshore company is possible, offering favorable conditions for such ventures.

No. It is one of the lowest rates in the world. Some countries have levied nearly 30 per cent corporate tax.

The tax is being introduced to accelerate the country’s development and transformation. The certainty of a competitive corporate tax regime that adheres to international standards, together with the UAE’s extensive network of double tax treaties, will cement the UAE’s position as a leading jurisdiction for business and investment.

This tax applies to “Taxable Persons” – namely (1) UAE companies and other juridical persons that are incorporated or effectively managed and controlled in the UAE; (2) natural persons (individuals) who conduct a business or business activity in the UAE as specified in a Cabinet Decision; and (3) non-resident juridical persons (foreign legal entities) that have a permanent establishment in the UAE.

Under the Ministry of Finance’s directive, the following entities are exempted from the corporate profit tax: Government and government-controlled entities; extractive businesses and non-extractive natural resources businesses; quality public benefit entities; public or private pension and social security funds; qualifying investment funds; wholly-owned and controlled UAE subsidiaries of a government-controlled entity; qualifying investment fund, or a public and private pension or social security fund; business undergoing liquidation or termination; personal income earned from employment, investments, and real estate without licensing requirements. Salary (perks, allowances and bonuses), residential rental income on real estate, and investment income (from bonds, shares, and other securities) are not taxable. Some of these exemptions are subject to meeting certain conditions. Freelancers' income up to Dh1 million is exempted.

All legitimate business expenses incurred wholly and exclusively to derive taxable income will be deductible, although the timing of the deduction may vary for different types of expenses and the accounting method applied. For capital assets, the expenditure would generally be recognised by way of depreciation or amortisation deductions over the economic life of the asset or benefit.

A zero per cent withholding tax may apply to certain types of UAE-sourced income paid to non-residents. Because of the 0 per cent rate, in practice, no withholding tax would be due and there will be no withholding tax-related registration and filing obligations for UAE businesses or foreign recipients of UAE-sourced income.

An individual is eligible to apply for a 10-year Golden Visa without a sponsor if his or her investments in the UAE are at least Dh2 million. These may be in the form of investment funds accredited in the UAE; or a commercial or industrial licence of an investor, where the memorandum of association of their legal entity mentions the paid-up capital of the said company is not less than Dh2 million; or the investor is the owner of a company in the UAE and pays tax of not less than Dh250,000 annually to the Federal Tax Authority. Under these categories, the investor may also include his or her spouse and dependents while applying for the Golden Visa. Golden visa for Real estate investor : UAE Golden Visa: With Dh30,000 salary. In the UAE, any individual whose employment is classified as professional by the Ministry of Human Resources & Emiratisation (MoHRE) and who has a bachelor’s degree with a minimum monthly salary of Dh30,000 may obtain the UAE Golden residency visa. This is in accordance with Article 17 of the Annexure to Cabinet Resolution No. 65 of 2022. The authority may grant a Golden Visa in this category based on employment to those who meet the following conditions: 1 . To obtain a work permit according to a valid work contract in the country. 2 . To be a skilled worker at the first or second professional level, according to the occupational classification approved by the MoHRE. 3. The minimum educational level must be a bachelor's degree or its equivalent. 4. Monthly salary shall not be less than Dh30,000 or equivalent in foreign currencies. 5. To have a license to practice as a doctor, pharmacist, teacher, and other professions approved for the Golden Visa. 6. Must have comprehensive health insurance for himself and his family members when applying for a golden residency, or as is applicable in the competent local authority. If you fulfil the requirements mentioned above, you may apply for UAE golden residency visa based on your monthly salary of Dh30,000.