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Questions answered

UAE Business Setup: Frequently Asked Questions

Straight answers to the questions UK and European founders ask us most about Dubai company setup, visas, banking, tax and relocation. Each answer links to a deeper page.

Company setup

Can a foreigner own 100% of a company in Dubai?

Yes. Free zone companies have always allowed full foreign ownership, and since 2021 most mainland commercial and professional activities also allow 100% foreign ownership. A small number of strategic activities remain restricted, so we check your exact activity against the current Department of Economy and Tourism list before you apply or pay any government fees.

Mainland company setup

How long does it take to set up a company in Dubai?

The licence itself can often be issued within days to a few weeks once documents are complete, but the whole journey – name approval, licence, establishment card, residence visa, Emirates ID and bank account – usually takes several weeks to a few months. Banking is typically the longest and least predictable stage, so we plan it from the start.

Setup timelines guide

Can I set up a Dubai company without travelling to the UAE?

Mostly, yes. Many free zones let you choose activities, approve names, sign documents and receive the licence remotely. What normally needs you in person is the residence visa medical test, Emirates ID biometrics and, for many banks, an in-person meeting. We sequence the remote steps first so one short trip covers the in-person stages.

Remote setup guide

What is the difference between a free zone and a mainland company?

A mainland company is licensed by Dubai DET and can trade anywhere in the UAE, including with government. A free zone company is licensed by its zone’s own authority and is built for international trade and business with other free zone firms. Both can be fully foreign owned; the real differences are market access, office rules, visas and tax conditions.

Free zone vs mainland

What is an offshore company in the UAE used for?

A UAE offshore company, such as a RAK ICC company, is a holding or international business vehicle. It is commonly used to hold shares, intellectual property or permitted assets. It cannot trade inside the UAE, lease office space for trading or sponsor residence visas, and banks apply enhanced checks, so it rarely suits a founder who wants to live and work in Dubai.

Offshore companies

Do I need a physical office in Dubai?

Not always. Most free zones offer flexi-desk or shared-desk packages that satisfy the licence requirement for a small number of visas. Mainland companies usually need a registered office with an Ejari tenancy. Your office choice affects your visa quota and how banks view your substance, so we decide it alongside your visa and banking plan.

Free zone company setup

Free zones

Which is the best free zone in Dubai?

There is no single best free zone. The right choice depends on your activity, how many visas you need, whether you need a real office or warehouse, where your clients are and how banks will view the zone. Consultancy founders often shortlist IFZA or Meydan; commodities traders DMCC; logistics firms JAFZA or DAFZ. Our finder suggests a shortlist in a minute.

Free zones compared

Can a free zone company work with clients on the UAE mainland?

A free zone company can generally serve clients outside the UAE and within free zones freely. Trading directly on the mainland traditionally needs a mainland branch, a distributor or a specific permit. Dubai has introduced a route for eligible free zone companies to apply to operate on the mainland, and we confirm the current conditions for your activity before you rely on it.

Free zone companies on the mainland

Does a free zone company pay 0% corporate tax?

Not automatically. A qualifying free zone person can currently get 0% on qualifying income only if it meets every condition, including adequate substance, audited accounts and not exceeding limits on non-qualifying revenue. Other income is taxed at the standard rate of 9% above AED 375,000. Registration and filing are required either way. Confirm your position with a tax adviser.

Corporate tax guide

Is IFZA or Meydan better for a consultant?

Both are Dubai free zones popular with consultants and service businesses, both offer flexi-desk options and largely digital setup. The practical differences are in activity combinations, visa allocations per package and renewal terms, which change from time to time. We compare the current terms for your exact activities and visa needs rather than recommending one by default.

IFZA company setup

Why would I choose a free zone outside Dubai?

Zones in Ras Al Khaimah, Sharjah or Ajman, such as RAKEZ, SHAMS, SPC or Ajman Free Zone, are often chosen by cost-conscious founders or businesses needing industrial space. You can still live in Dubai with a visa from another emirate. The trade-off can be bank perception and the address on your licence, which we discuss openly before you choose.

RAKEZ company setup

Is DIFC a normal free zone?

DIFC is a financial free zone with its own common-law legal system and courts. Regulated financial services there are licensed and supervised by the DFSA, which involves a far more detailed process than a standard trading licence. Non-regulated options exist for holding companies, family offices and some service firms. It suits finance-focused structures rather than typical small consultancies.

DIFC company setup

Visas & residency

Who qualifies for the UAE Golden Visa?

The Golden Visa is open to defined categories: investors, including a public-investment route currently listed at AED 2 million, property owners who meet the value rules, entrepreneurs, skilled professionals, exceptional talents and outstanding students. It is usually valid for 10 years and renewable. Criteria are set by ICP and GDRFA and change, so we check eligibility first.

UAE Golden Visa

Can I get a UAE residence visa through my own company?

Yes. As a shareholder you can usually obtain an investor or partner visa through your company once it has a licence and establishment card. The steps are entry permit, change of status, medical test, biometrics, Emirates ID and visa issue. Validity is typically two years depending on the authority, and your office package sets how many visas are available.

Investor & partner visa

How do I sponsor my family in Dubai?

Once you hold UAE residence you can sponsor your spouse and children, and sometimes parents. You currently need to meet income and accommodation requirements, and marriage and birth certificates must be legalised and attested. Each family member then completes medical testing where required, biometrics and Emirates ID. Start attestation early – it is often the slowest part.

Family visa

What is the UAE Green Visa?

The Green Visa is a five-year self-sponsored residence visa for skilled employees, freelancers and self-employed people, and investors or partners who meet published criteria, including salary or income thresholds. It does not depend on an employer sponsor and allows family sponsorship. It sits between a standard two-year visa and the 10-year Golden Visa.

Green Visa

Is a freelance permit better than a company?

A freelance permit is simpler and suits a solo professional in an approved activity who invoices in their own name. A company offers more activities, more visas, clearer banking and room to hire. If you expect to grow, sell products or sponsor family comfortably, a company is usually the stronger base. We compare both against your plans.

Freelance visa

Do I need to live in the UAE to keep my residence visa?

Standard residence visas can be cancelled if you stay outside the UAE for more than six continuous months, unless an exception applies. Golden Visa holders are not subject to that rule in the same way. Keeping your visa is separate from your tax residence in the UK or elsewhere, which follows that country’s own rules.

Golden Visa eligibility guide

Banking

How hard is it to open a business bank account in the UAE?

It is achievable but thorough. UAE banks carry out risk-based due diligence on your company, shareholders and source of funds, and they want evidence of real business activity. Well-prepared applications with a clear business plan, consistent documents and a UAE-resident signatory tend to move faster. Approval is always the bank’s decision; nobody can honestly guarantee it.

Corporate bank account

What documents do UAE banks ask for?

Typically the trade licence, memorandum of association, shareholder passports and visas, proof of address, a business plan, expected transaction profile, CVs, source-of-funds and source-of-wealth evidence, and sample contracts or invoices. Requirements differ by bank and risk profile. We prepare a consistent file before introduction so the bank sees one clear story.

Business bank account guide

Why do UAE bank applications get rejected?

Common reasons are unclear business activity, inconsistent documents, no UAE substance, high-risk countries or counterparties, unexplained source of funds and mismatched expected turnover. Many rejections can be avoided by choosing the right structure first and preparing the file properly. We explain the likely concerns in advance rather than submitting and hoping.

Corporate bank account

Can I open a UAE bank account before getting my residence visa?

Some banks and digital banks will onboard companies whose signatory is not yet resident, but many prefer or require a UAE residence visa and Emirates ID. We usually sequence the visa before the main bank application, and use the waiting time to prepare the business plan and supporting documents.

Investor visa

Should I choose a digital bank or a traditional bank?

Digital banks can be quicker to open and simpler for small service companies, while traditional banks may offer broader products, trade finance and stronger acceptance with some counterparties. Many founders start with one and add another later. We discuss the trade-offs for your business rather than naming a single bank.

Business bank account guide

Tax & compliance

What is the corporate tax rate in the UAE?

UAE corporate tax is currently 0% on taxable income up to AED 375,000 and 9% above that. Qualifying free zone persons may get 0% on qualifying income if they meet all conditions, and Small Business Relief is available for revenue up to AED 3 million for tax periods ending by 31 December 2029. Registration and filing are still required.

Corporate tax guide

Is there personal income tax in the UAE?

The UAE currently does not levy personal income tax on individuals’ employment income. VAT applies at 5% on most goods and services. Whether you still owe tax in your home country, such as the UK, depends on that country’s residence rules and any double tax treaty, so take advice from a home-country adviser.

Move to Dubai from the UK

Does my UAE company need to register for VAT?

VAT registration is mandatory once taxable supplies and imports exceed the registration threshold set by the Federal Tax Authority, and voluntary above a lower threshold. Many small service businesses register once revenue grows. We flag the thresholds during setup and coordinate with an accountant for registration and filing.

Federal Tax Authority info in our tax guide

What is UAE e-invoicing and when does it start?

The UAE is phasing in mandatory structured electronic invoicing from 2026 to 2027, starting with larger businesses. Invoices will need to pass through accredited service providers in a set format rather than as PDFs. Small firms should check their accounting software and processes now so they are ready when their phase arrives.

E-invoicing guide

Do I need an audit for my UAE company?

It depends on the licensing authority, the company type and your tax position. Many free zones require annual audited accounts, and companies claiming qualifying free zone status must prepare audited financial statements. Mainland requirements vary. We confirm the rule for your structure so there are no surprises at renewal.

Free zone vs mainland

Relocation from the UK

Will I stop paying UK tax if I move to Dubai?

Not automatically. UK tax residence is decided by HMRC’s Statutory Residence Test, which looks at days spent in the UK and ties such as home, work and family. Where a company is managed and controlled also matters. We coordinate with your UK accountant, but we do not give UK tax advice – speak to a qualified adviser before you move.

Dubai company for UK founders

What should I do with my UK limited company when I move?

Options include keeping it, closing it, transferring the trade to a new UAE company or running both. Each has UK tax and legal consequences, especially around residence and management and control. That decision needs a UK accountant or tax adviser. We then build the UAE side around the route they recommend.

Moving your UK business

Can I exchange my UK driving licence in Dubai?

UK licence holders are currently eligible to exchange their licence for a UAE one without taking a test, once they hold UAE residence and an Emirates ID. The process runs through the RTA with an eye test and the required documents. Check the RTA’s current list before you apply.

Driving licence guide

How do I get UK documents attested for the UAE?

UK certificates such as marriage and birth certificates or degrees are first apostilled by the FCDO legalisation service, then attested for UAE use, usually through the UAE Embassy process and the UAE Ministry of Foreign Affairs. Requirements change, so we confirm the current route and check names and dates match before sending anything.

Family sponsorship guide

What is the best order for moving from the UK to Dubai?

A common order is: take UK tax advice, choose the structure, form the company, obtain the residence visa and Emirates ID, open a bank account, sign an Ejari tenancy, then sponsor family and arrange schools, insurance and shipping. School places and document attestation should start early. Our checklist sets this out step by step.

UK to Dubai checklist

Do you help founders in London and Manchester?

Yes. We work remotely with founders across the UK, including London, Manchester and the North, over video calls during UK working hours. Most setup steps are handled without you flying in, and we coordinate with your UK accountant where the UK side needs advice.

London founders

Working with us

How does Founder Solutions work?

We start with a free consultation, then give you one clear written roadmap: structure, activities, documents, sequence and what you will do versus what we will do. Only then do you commit to government fees. We coordinate licence, visas, banking preparation and relocation steps, and keep you updated during UK working hours.

About Founder Solutions

Do you mark up government fees?

No. Government fees are charged at cost, with no hidden mark-ups. Our own service fee is agreed separately and in writing before you commit, so you can see exactly what goes to the authority and what goes to us.

About how we work

Which languages do you work in?

Our team works in English, Russian and German, so you can discuss your plans, review documents and receive updates in the language that suits you. Official UAE documents are issued in English and Arabic, and we explain what each one means.

Contact us

Are you a government authority or a law firm?

No. Founder Solutions is an independent business setup consultancy. We are not a government authority, law firm or tax adviser. Our information is general guidance, and we coordinate with regulated legal and tax advisers where your situation needs formal advice.

Terms of use

How can I contact you quickly?

The fastest way is WhatsApp on +971 50 457 6879. You can also call the same number, send the contact form or message us on Fiverr, where we hold a 5.0 average from 72 verified reviews. We reply within UK working hours.

Contact

Can you guarantee my visa or bank account?

No, and you should be wary of anyone who does. Visas are decided by the immigration authorities and bank accounts by the bank. What we can do is choose the right route, prepare a complete and consistent file, and follow up, which gives your application the best practical chance.

Corporate bank account

Last reviewed: September 2026

Rules change often – we confirm every requirement with the relevant authority before you apply. General guidance, not legal or tax advice. Official sources: u.ae, ICP, GDRFA, FTA, DET.

Dubai skyline at dusk

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