Opening a company in the United Arab Emirates: locals, foreigners, freelancers and digital nomads

At a glance: Mainland LLC or free-zone company with no fixed minimum capital, licensed in 3 to 10 business days for about AED 15,000 to 30,000 (3,500 to 7,000 euros) a year, 9 percent corporate tax above AED 375,000 of profit, 5 percent VAT from AED 375,000 turnover, no personal income tax, one-year Remote Work visa. Legal forms. Sole establishment: UAE and GCC nationals, foreigners only under a professional licence. Limited liability company (LLC, Sharikat Dhat Mas'uliyya Mahduda): the mainland standard, one to fifty shareholders, no statutory minimum capital, 100 percent foreign ownership for most activities since 2021. Free-zone company (FZE or FZCO) in one of more than 50 zones, capital set by the zone from nothing to about AED 50,000 (11,500 euros), trading limited to the zone and abroad. Registration. Mainland: trade name and initial approval from the emirate's economic department (Invest in Dubai portal), memorandum notarised online, Ejari-registered lease, then the licence; 3 to 10 business days, licence fees about AED 10,000 to 15,000 a year (2,300 to 3,500 euros). Free-zone flexi-desk packages from about AED 6,000 to 15,000 a year, DMCC or JAFZA 20,000 to 50,000. First-year total excluding capital: about AED 15,000 to 30,000 mainland, 10,000 to 25,000 free zone, plus about AED 4,000 to 6,000 per residence visa. Taxes 2026. Corporate tax 9 percent on taxable profit above AED 375,000 (about 88,000 euros), 0 percent below; small business relief treats revenue up to AED 3 million (about 700,000 euros) as nil for tax periods ending by 31 December 2026; qualifying free-zone persons pay 0 percent on qualifying income. Returns within nine months of year end. Withholding tax 0 percent, no personal income or capital gains tax. VAT 5 percent, mandatory above AED 375,000 of taxable supplies in twelve months, voluntary from AED 187,500. Freelancers and the self-employed. No national freelance status; a freelancer buys a permit. Free-zone freelance permits (GoFreelance, RAKEZ, Sharjah Media City) cost about AED 7,500 to 15,000 a year (1,750 to 3,500 euros) with an optional two-year residence visa; on the mainland a professional licence as a sole establishment. A freelance permit plus a degree and self-employment income of at least AED 360,000 (about 85,000 euros) a year qualifies for the five-year Green visa. No social security or income tax; individuals register for corporate tax only above AED 1 million of business turnover. Foreigners. 100 percent foreign ownership on the mainland since June 2021; strategic-impact activities (defence, security, banking, telecoms, oil and gas) still need Emirati participation. No resident director rule, but every company needs premises and a named manager, and banks expect a UAE-resident signatory with an Emirates ID. The owner sponsors a two-year investor or partner visa (about AED 4,000 to 7,000 all in); the ten-year Golden visa needs AED 2 million (about 470,000 euros) in property or public investment. The founder must enter for the visa medical and Emirates ID. Bank onboarding takes 2 to 8 weeks. Branch of a foreign company. A mainland branch is registered with the Ministry of Economy and licensed by the emirate with the parent's incorporation papers, board resolution, audited accounts and an attested power of attorney for a general manager; it may only carry on the parent's activities, with no UAE national agent needed for most activities since 2021. Taxed as a permanent establishment at 9 percent with no branch remittance tax. Most groups prefer a subsidiary. Digital nomads. Yes: the one-year Remote Work visa (Virtual Working Programme) for employees or owners of companies outside the UAE, with monthly income of about USD 3,500 (about 3,000 euros; Dubai has asked USD 5,000), a passport valid six months and health insurance; fee about USD 300 plus medical, Emirates ID and insurance, renewable. No income tax; a holder present 183 days, or 90 days with a residence permit and a home or business in the UAE, can obtain a tax residency certificate. Changed recently. 15 percent domestic minimum top-up tax for large groups (January 2025); mandatory health insurance for all private-sector employees (January 2025); five-year limit on excess input VAT carry-forward (January 2026); e-invoicing pilot from July 2026 with mandatory phases in 2027; small business relief ends with tax periods ending 31 December 2026. Figures checked October 2026 from the Federal Tax Authority, the Ministry of Economy, the Federal Authority for Identity, Citizenship, Customs and Port Security and Big Four tax summaries; thresholds and fees change yearly. Confirm with a licensed adviser in the United Arab Emirates before you file.