Business Setup and Support in the UAE (United Arab Emirates)

How the company launch works

1. Business model analysis. We determine the activity, clients, payment geography, office, visas, taxes and regulatory perimeter.
2. Jurisdiction selection. We compare Mainland and relevant Free Zones by activities, infrastructure, costs and ongoing maintenance.
3. Trade name and initial approval. We check the name, submit the initial application and obtain the required preliminary approvals.
4. Registration and licence. We prepare incorporation documents, register the legal entity and obtain the trade licence.
5. Office and immigration file. We arrange a flexi desk or premises, establishment card and immigration documents where required.
6. Visa and Emirates ID. We support the entry permit, status change, medical test, biometric procedure and obtaining Emirates ID.
7. Tax registration. We arrange Corporate Tax and, where applicable, VAT registration.
8. Account and operational launch. We prepare the banking package, accounting, agreements, invoices and a calendar of recurring obligations.

Office solution, visas and Emirates ID

An office in the UAE is not merely an address for correspondence. The type of premises may affect the available number of visas, the list of permitted activities, passing a bank review and confirming the company’s actual presence.

• Flexi desk or co-working — a basic solution for many service-based Free Zone companies;
• Separate office — may be required for a team, additional visas, a bank or licensed activity;
• Warehouse or production facility — for trade in goods, logistics, imports, exports or manufacturing;
• Mainland premises — must comply with the rules of the relevant emirate and type of activity.

An owner’s residence visa does not arise automatically after incorporation. It is obtained separately and is linked to a valid licence, establishment card, immigration file, medical test and Emirates ID.

Corporate Tax in the UAE

Corporate Tax is calculated on taxable income, not turnover. Companies must register with the FTA on time, maintain proper records and submit a Corporate Tax Return within the prescribed period.

Why a Free Zone does not automatically mean 0%

To apply the Qualifying Free Zone Person regime, the company must meet the established tax conditions. These include receiving Qualifying Income, maintaining adequate presence in the UAE, complying with transfer pricing rules and not electing to apply the ordinary Corporate Tax regime in full.

Failure to comply with the conditions or exceeding the permitted de minimis may result in loss of QFZP status. Therefore, the statement “Free Zone equals 0% tax” should not be used without analysing the specific income.

VAT in the UAE

The standard VAT rate in the UAE is 5%. For resident businesses, mandatory registration generally arises when taxable supplies and imports exceed AED 375,000 during the previous 12 months or are expected to exceed this amount within the next 30 days.

• AED 375,000 — the general threshold for mandatory registration for resident businesses;
• AED 187,500 — the threshold for possible voluntary registration;
• the standard threshold may not apply to non-resident businesses;
• a Free Zone company is not exempt from VAT solely because of its place of registration;
• separate rules apply to Designated Zones and trade in goods.

Corporate account in the UAE

A trade licence does not guarantee the opening of a bank account. A bank or payment institution separately reviews the owners, director, sources of funds, origin of capital, countries of operation, counterparties, expected turnover and the economic rationale for using the company in the UAE.

The following are usually prepared for KYC/AML:

• incorporation documents and trade licence;
• passports, Emirates ID and documents of the owners and director;
• ownership structure and UBO information;
• source of funds and source of wealth;
• description of the business model, clients and suppliers;
• agreements, invoices, website and financial forecasts;
• payment geography, currencies and expected turnover;
• evidence of an office, personnel or other connection with the UAE where required.

Prikhodko & Partners helps build the banking profile and submit an application to an institution that works with the relevant business model. The final decision always remains with the particular bank or payment institution.

Accounting and regular tax reporting

The company must maintain records that allow it to substantiate income, expenses, assets, liabilities, transactions with related parties and information stated in tax returns. Corporate Tax documents must be retained for the period prescribed by law.

• recording invoices, expenses and banking transactions;
• Corporate Tax registration and filing the return;
• VAT returns for registered taxpayers;
• transfer pricing and transactions with related parties;
• financial statements and audit where required by the regime, zone or regulator;
• preparation of documents for licence renewal and banking KYC review.

Fintech, payments and virtual assets

An ordinary trade licence does not automatically grant the right to provide payment, financial or virtual asset services. The regulator is determined by the type of activity and jurisdiction in which the company will operate.

For a regulated project, the regulatory perimeter, capital, owners, management, office substance, AML/CFT, safeguarding, technology, risk management and outsourcing must be determined before incorporation.

Annual maintenance of a company in the UAE

• Trade licence renewal. Annual renewal of the licence and office solution.
• Immigration documents. Renewal of the establishment card, visas and Emirates ID where required.
• Accounting. Recording transactions, invoices, expenses, assets and banking movements.
• Corporate Tax. Tax return, tax calculation and deadline control.
• VAT. Returns, tax invoices, recording input and output VAT for registered companies.
• Corporate changes. Updating owners, director, UBO, activities, address or company structure.
• Banking and regulatory compliance. Updating KYC documents, internal policies and information about the company’s activities.