In short
Most small UAE companies pay 0% on the first AED 375,000 of taxable income and 9% above. There is no personal income tax and nothing is withheld on dividends. Every company still registers for corporate tax and files a return.
Facts checked November 2026
United Arab Emirates company formation
A free zone company you own 100%, or a Dubai mainland licence, with a flexi-desk and optional residence visas.
Free zone or mainlandfrom $599 one-time
- 1–3 weeks (+2–4 weeks per visa)
- 100% foreign ownership
- No personal income tax
At a glance
- Company types
- Free zone from $599 · Mainland (Dubai) from $1,599
- Ownership
- 100% foreign ownership in a free zone. On the mainland, full foreign ownership is allowed for most activities since 2021.
- Free zones
- RAKEZ, IFZA, Meydan or SHAMS. DMCC and other zones on request.
- People
- At least one shareholder and one manager.
- Office
- A flexi-desk in your zone, included for year one.
- Activities
- Up to 3 business activities on one licence.
- Government fees
- Licence, registration and visa fees are passed through at cost and listed before you pay.
- Every year
- Licence renewal, a corporate tax return and up-to-date beneficial-owner details.
- Timeline
- 1–3 weeks (+2–4 weeks per visa)
Taxes, explained simply
Your company pays
-
0% / 9%
Corporate tax
0% on taxable income up to AED 375,000, 9% above. Every company registers with the FTA and files a return, even at 0%.
-
0%
Qualifying free zone income
Only for a Qualifying Free Zone Person, on qualifying income, with real substance, audited accounts and non-qualifying revenue under 5% or AED 5m, whichever is lower.
-
5%
VAT
Mandatory once taxable supplies pass AED 375,000, optional from AED 187,500. Non-resident businesses have no threshold.
-
AED 3m
Small Business Relief
Resident companies with revenue up to AED 3m can elect to have no taxable income, for tax periods ending by 31 December 2026. Not for qualifying free zone persons.
You personally
-
0%
Personal income tax
The UAE has no personal income tax, at federal or emirate level.
-
0%
Tax withheld on dividends
Nothing is withheld on dividends or other payments to non-residents.
Corporate tax at a glance
| Income | Rate |
|---|---|
| Taxable income up to AED 375,000 | 0% |
| Taxable income above AED 375,000 | 9% |
| Qualifying free zone income | 0%, if every condition is met |
| Non-qualifying free zone income | 9% |
A free zone company that fails a condition pays 9% for that year and the next four.
No UAE tax doesn’t mean no tax for you. Your home country may tax you as its resident, or treat the company as managed from there.
How it works
-
Get your trade licence
RAKEZ, IFZA, Meydan, SHAMS or mainland. Name and activity approved.
You get: Trade licence
-
Set up your office
A flexi-desk in your zone, then the card that lets you sponsor visas.
You get: Establishment card
-
Get your residence visa
Entry permit, medical test and biometrics, then your visa is issued.
You get: Emirates ID
-
Open a bank account
We introduce you to a UAE bank. A residence visa eases approval.
You get: Bank-ready file
-
Stay compliant
Corporate Tax with the FTA, yearly licence renewal, UBO register.
You get: Deadline reminders
What’s included
Fixed one-time prices. Government fees are shown before you pay.
Explorer
$599one-time
UAE Free Zone, plus zone fees
- Licence application, name and activity approval
- MOA and trade licence issuance
- Year-one flexi-desk
- Compliance reminders
- Email support
Go
$1,199one-time
UAE Free Zone, plus zone fees
Everything in Explorer, plus:
- Establishment card and 1 residence visa processed (medical, Emirates ID, stamping)
- Bank introduction
- Corporate Tax registration
- WhatsApp support
Pro
$2,199one-time
UAE Free Zone, plus zone fees
Everything in Go, plus:
- Establishment card and up to 3 residence visas processed
- Multi-bank support until an account opens
- VAT registration
- 3 months of bookkeeping
- Priority support, same-day replies
Then $599 a year from month 13.
Not included: Translation or apostille of your documents.
What you’ll need
- Passport photo page for every shareholder and manager
- Proof of address
- Passport photo on a white background
- Current UAE visa, if you have one
- Three company name choices, with no offensive words or names of rulers or governments
- Up to 3 business activities, in plain words
Banking
- Go includes a bank introduction. Pro adds multi-bank support until an account opens.
- A UAE residence visa eases bank approval.
- On Explorer, add bank account help for $199.
Approval is always the bank’s or provider’s decision.
After formation: what’s due
| When | What |
|---|---|
| Within 3 months of incorporation | Corporate tax registration with the FTA. Late registration costs AED 10,000. Included from Go |
| Quarterly or monthly | VAT returns once registered, as the FTA assigns |
| 9 months after year end | Corporate tax return and payment |
| Every year | Trade licence renewal, in our renewal service from month 13 |
| Every year, for 0% free zone status | Audited financial statements |
| Whenever it changes | Keep your beneficial-owner details up to date with your licensing authority |
United Arab Emirates company formation FAQs
Can I own 100% of a UAE company as a foreigner?
Yes in a free zone. On the mainland, most activities allow full foreign ownership since 2021, with limits for activities of strategic impact.
Free zone or mainland?
A free zone is the fastest and lowest-cost route, with 100% ownership. A mainland licence lets you trade anywhere in the UAE, including with government.
Is the UAE tax-free?
There is no personal income tax, and corporate tax is 0% on taxable income up to AED 375,000. Above that, it is 9%.
Do free zone companies pay 0%?
Only a Qualifying Free Zone Person, on qualifying income, with real substance and audited accounts. Other income is taxed at 9%.
Do I register for corporate tax if I make no profit?
Yes. Every company registers within 3 months of incorporation or pays an AED 10,000 penalty, and files a return within 9 months of year end. Go and Pro include the registration.
When do I need VAT?
Registration is mandatory above AED 375,000 of taxable supplies and optional from AED 187,500. The rate is 5%. Pro includes VAT registration.
Is tax withheld on dividends I pay myself?
No. UAE withholding tax is 0%, including on dividends.
Do I get a residence visa?
Go processes 1 residence visa and Pro up to 3. Each visa adds 2–4 weeks, and government visa fees are charged at cost.
What is Small Business Relief?
Resident companies with revenue up to AED 3m can elect to be treated as having no taxable income, for tax periods ending on or before 31 December 2026. No extension has been announced.
What does it cost after year one?
Our licence renewal service from month 13 is $599 a year for a free zone company or $1,290 for mainland.
Sources (9)
Rates and fees from official and Big Four sources, with the date each was last reviewed.
- PwC: UAE corporate income tax 9 Sep 2026
- PwC: UAE tax credits and incentives (free zones, Small Business Relief) 9 Sep 2026
- PwC: UAE tax administration 9 Sep 2026
- PwC: UAE withholding taxes 9 Sep 2026
- PwC: UAE other taxes (VAT) 9 Sep 2026
- PwC: UAE personal income tax 9 Sep 2026
- UAE Ministry of Finance: Small Business Relief Ministerial Decision 73/2023
- PwC: FTA Decision 3 of 2024, registration deadlines In force 1 Mar 2024
- u.ae: Full foreign ownership of commercial companies Live page
General information, not legal or tax advice. Rates and fees change, and your own situation decides what applies. We are not a law firm; where a lawyer or licensed agent is needed, a local partner handles it.
