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The UAE is a premier business hub in the Middle East offering free zones with 0% corporate tax, world-class infrastructure, and excellent banking access.
Region
MIDDLE EAST
Corporate Tax
9%
Setup Time
2 weeks
Currency
AED
The United Arab Emirates is a leading global business destination combining strategic location, excellent infrastructure, and attractive tax incentives. The country operates a 9% federal corporate tax (introduced 2023), though free zone companies meeting qualifying conditions maintain 0% tax rates. From January 2025, a Domestic Minimum Top-Up Tax (DMTT) of 15% applies to MNE groups with consolidated revenues exceeding EUR 750 million. The UAE offers multiple company formation options including mainland, free zone, and offshore structures. With over 45 free zones across seven emirates, businesses can choose jurisdictions tailored to their specific needs. Small Business Relief (revenue under AED 3 million) available through December 2026. The UAE provides no personal income tax, world-class banking access, and serves as a gateway between East and West.
The UAE offers a high quality of life with modern infrastructure, world-class healthcare, and excellent safety. Dubai and Abu Dhabi are the main business centers, with thriving expatriate communities from around the world. English is widely spoken in business, though Arabic is the official language.
The cost of living is relatively high, particularly for housing in prime locations. However, the absence of personal income tax significantly increases disposable income. The desert climate brings extremely hot summers and mild winters.
Healthcare is excellent with numerous private hospitals meeting international standards. Education options include international schools following various curricula. The UAE offers a cosmopolitan lifestyle with dining, entertainment, and cultural activities.
The UAE has transformed its business environment significantly in recent years:
Corporate Tax (from June 2023):
Personal Tax:
Mainland Companies:
Free Zone Companies:
Offshore Companies:
The UAE has emerged as a leading crypto-friendly jurisdiction with multiple regulatory pathways:
Dubai (VARA):
Abu Dhabi (ADGM FSRA):
DIFC (DFSA):
CMA-VARA Cooperation (August 2025):
CARF Compliance:
Gambling is prohibited in the United Arab Emirates under federal law, based on Islamic Sharia principles. All forms of gambling including casinos, sports betting, and lotteries are illegal. There are no gambling licenses issued. Participation in gambling activities can result in imprisonment and fines.
While there have been discussions about potential regulatory changes in certain emirates for tourism purposes, as of 2026 no gambling licensing framework exists.
The UAE offers multiple pathways for financial services licensing:
Central Bank of UAE (CBUAE) - Mainland:
ADGM FSRA - Abu Dhabi Financial Centre:
DIFC DFSA - Dubai Financial Centre:
The 9% federal corporate tax applies to mainland companies outside free zones. Substance requirements are increasing for free zone tax benefits. Economic substance regulations apply to certain activities. Some sectors still require local sponsor or partnership arrangements. Higher operational costs compared to regional alternatives exist. The regulatory landscape varies across different jurisdictions within the UAE.
This jurisdiction suits international businesses seeking Middle East presence, companies requiring excellent banking infrastructure, tech and crypto startups seeking regulatory clarity, holding structures for regional investments, or entrepreneurs seeking tax-efficient personal residency.
Local: LLC
Local: PJSC
Local: Branch
| Corporate Tax Rate | 9% |
| Personal Income Tax Rate | 0% |
| VAT / Sales Tax | 5% |
| Capital Gains Tax | 0% |
| Withholding Tax | 0% |
| Reduced Corporate Tax Available | Yes |
| Non-Resident Withholding Exempt | Yes |
| Tax Treaty Network | Yes |
| Banking Access | EXCELLENT |
| Financial Privacy | MEDIUM |
| Currency Controls | NONE |
| Local Bank Account Required | No |
| Non-Resident Bank Account Allowed | Yes |
| Physical Presence for Banking | Yes |
| Banks Restrictive (High Risk) | No |
| AML Officer Required | No |
| MLRO Required | No |
| Compliance Officer Required | No |
| Data Protection Officer Required | No |
| Bookkeeping Frequency | Annual |
| Local Bookkeeping Required | Yes |
| Mandatory Audit | Yes |
| License Required | Yes |
| Local Director Required | Yes |
| Local AML Director Required | Yes |
| Local Legal Address Required | Yes |
| Local Physical Office Required | Yes |
| Required Share Capital | $50,000 |
| Capital Maintained in Account | Yes |
| Compliance Program Required | Yes |
| Travel Rule Compliance | FATF compliant; VARA Rulebook 2.0 (June 2025); CARF compliance expected 2027 |
| Business Plan Required | Comprehensive business plan, AML/CFT framework, technical documentation, financial projections, governance structure; VARA 2.0 requires Qualified Investor thresholds (AED 3.5M net assets) |
| Personnel Required | CEO, Compliance Officer, MLRO, qualified operational staff; fit and proper requirements apply; Sponsored VASPs regime available under VARA 2.0 |
| Insurance Required | Yes |
| Insurance Details | Professional indemnity insurance required; cyber insurance recommended; specific requirements vary by regulator |
| Remote Incorporation Possible | No |
| 100% Foreign Ownership | Yes |
| Min. Shareholders | 1 |
| Min. Directors | 1 |
| Shareholder/Director Same Person | Yes |
| Registry Public | Yes |
| Registry Access | VARA maintains public register; ADGM/DIFC have searchable registries; CMA-VARA mutual recognition since Aug 2025 |
| Renewal Period | Annual |
| Accounting Filing Required | Yes |
| Accounting Filing Frequency | Annual |
| Financial Statement Required | Yes |
| Financial Statement Frequency | Annual |
| Accounting Audit Mandatory | Yes |
| Compliance Audit Mandatory | Yes |
| Technical Audit Mandatory | No |
| Corporate Income Tax Applicable | No |
| Dividend Tax Applicable | No |
| Capital Gains Tax Applicable | No |
| Territorial Tax Regime | No |
| VAT Applicable | Yes |
| Regulators | VARA (Dubai), ADGM FSRA (Abu Dhabi), DIFC DFSA, SCA/CMA (Federal - unified framework expected 2026) |
| Licensing Fee | $40,000 |
| Licensing Fee Details | VARA: AED 40,000 application + AED 100,000+ annual; ADGM: USD 20,000-70,000 depending on activities; capital from USD 50,000 to USD 2 million+ depending on license type; new ARVAs (Asset-Referenced Virtual Assets) category for RWA tokenization |
| Permitted Business Models | Exchange, Custody, Broker-Dealer, Advisory, Token Issuance, Investment Management, RWA Tokenization |
| Permitted Activities | Crypto exchange, custody, brokerage, advisory, token issuance (FRVAs/ARVAs), staking, lending, RWA tokenization (jurisdiction dependent) |
| Restricted Activities | Fiat-backed stablecoins (FRVAs) have specific AED reserve requirements; algorithmic stablecoins restricted; securities tokens require additional authorization; CARF tax reporting starting 2027 |
| Cross-Border Service Allowed | Yes |
| Physical Inspection Required | Yes |
| Derivatives Allowed | Yes |
| RWA Tokenization Allowed | Yes |
| App Store Listing Allowed | Yes |
| Crypto Custody Allowed | Yes |
Gambling is prohibited in the United Arab Emirates under federal law, based on Islamic Sharia principles. All forms of gambling including casinos, sports betting, and lotteries are illegal. There are no gambling licenses issued. Participation in gambling activities can result in imprisonment and fines. While there have been discussions about potential regulatory changes in certain emirates for tourism purposes, as of 2026 no gambling licensing framework exists.
| License Required | Yes |
| Local Director Required | Yes |
| Local AML Director Required | Yes |
| Local Legal Address Required | Yes |
| Local Physical Office Required | Yes |
| Required Share Capital | $10,000,000 |
| Capital Maintained in Account | Yes |
| Compliance Program Required | Yes |
| Travel Rule Compliance | FATF compliant; enhanced requirements for DNFBP |
| Business Plan Required | Comprehensive 3-5 year business plan with financial projections, governance structure, risk management framework, detailed operational plans |
| Personnel Required | CEO, CFO, CCO, MLRO, Senior Executive Officer; board of directors meeting fit and proper criteria; specific requirements vary by jurisdiction |
| Insurance Required | Yes |
| Insurance Details | Professional indemnity insurance required; additional insurance based on activities |
| Remote Incorporation Possible | No |
| 100% Foreign Ownership | Yes |
| Min. Shareholders | 1 |
| Min. Directors | 2 |
| Shareholder/Director Same Person | Yes |
| Registry Public | Yes |
| Registry Access | CBUAE, ADGM, DIFC maintain public registries of licensed entities |
| Renewal Period | Annual |
| Accounting Filing Required | Yes |
| Accounting Filing Frequency | Quarterly |
| Financial Statement Required | Yes |
| Financial Statement Frequency | Annual |
| Accounting Audit Mandatory | Yes |
| Compliance Audit Mandatory | Yes |
| Technical Audit Mandatory | No |
| Corporate Income Tax Applicable | No |
| Dividend Tax Applicable | No |
| Capital Gains Tax Applicable | No |
| Territorial Tax Regime | No |
| VAT Applicable | Yes |
| Regulators | Central Bank of UAE (CBUAE) for mainland; ADGM FSRA for ADGM; DIFC DFSA for DIFC |
| Licensing Fee | $100,000 |
| Licensing Fee Details | Varies significantly by jurisdiction and license type: CBUAE Bank license: AED 50 million+ capital; Payment Service Provider: AED 1-5 million; ADGM/DIFC: Category 1-4 licenses with varying capital from USD 10,000 to USD 10 million+ |
| Permitted Business Models | Commercial Banking, Investment Banking, Payment Services, EMI, Money Exchange, Fund Management, Investment Advisory |
| Permitted Activities | Deposit-taking, lending, payment processing, e-money, remittances, fund management, securities dealing, investment advisory |
| Restricted Activities | Banking activities require CBUAE license outside free zones; insurance separate licensing; each free zone (ADGM, DIFC) has own regulatory framework |
| Cross-Border Service Allowed | Yes |
| Physical Inspection Required | Yes |