frequently asked Questions

The steps to establish a business are as follows:

• 1. Confirmation of the license as well as the business purpose(s)
• 2. Determination of the company name
• 3. Search for a location (optional)
• 4. Obtaining initial approval from the Department of Economic Development (DED)
• 5. Renting business and office space
• 6. Attesting Ejari
• 7. Applying for trade license
• 8. Obtaining the license and starting the business
• 9. Setting up of the company and registration with Dubai Chamber of Commerce/other relevant authorities

The mere business setup is very fast and usually takes a few days. We are able to carry out your business setup without your presence.

“In the UAE and Dubai, there is a distinction between mainland and free zone companies. The territory of the individual emirates of the UAE, with the exception of the free zones, is referred to as mainland. Companies in the mainland are subject to the state legal system. The Department of Economic Development (DED) is responsible for regulation. Mainland companies are not subject to any territorial restrictions and can do business both within and outside the country’s borders.

Free zone companies are located in so-called Designated Zones, which are generally not part of the UAE tax territory. Most Freezones guarantee a 50-year tax exemption. Freezones as such are managed independently of the state and the underlying legal system. Companies within the Freezone may only conduct business within the respective Freezone or outside the UAE.”

The UAE does not levy income tax on individuals.
With the exception of oil companies and foreign banks, corporate income tax and business tax are also not levied on companies.
Value-added tax (VAT) was introduced in the UAE on January 1, 2018. The VAT rate is 5 percent. Tourists and visitors can apply for VAT refunds on purchases made during their stay in the UAE.

The UAE announced on January 31, 2022, that a corporate income tax rate of 9 percent will be introduced for companies from June 1, 2023, to meet international transparency standards and also to address the challenges of digitization in the global economy. Small companies and start-ups
are to be relieved and, meanwhile, the tax will only apply above a threshold amount of AED 375,000. The tax rate is to apply to all profits and other net amounts reported in financial statements prepared in accordance with internationally accepted accounting standards.