Why the UAE
The UAE is not an offshore — it is a fully-fledged business state with a world-class reputation. Dubai and Abu Dhabi host hundreds of thousands of international companies. Free zones provide 0% corporate tax, 100% foreign ownership and access to all major payment systems.
Tax System
| Type | Rate |
|---|---|
| Corporate tax (free zone, foreign-sourced) | 0% |
| Corporate tax (mainland, above AED 375,000) | 9% |
| Personal income tax | 0% |
| VAT | 5% |
| Dividend tax | 0% |
Note: The zero rate in free zones applies to "qualifying activities." Serving UAE mainland clients may trigger the 9% rate.
Popular Free Zones
| Zone | Highlights | Cost (from) |
|---|---|---|
| DMCC (Dubai) | Top-ranked, trading, commodities | $6,000/yr |
| IFZA (Dubai) | Affordable, any activity | $2,500/yr |
| RAK ICC | Cheapest, holdings | $1,200/yr |
| DIFC | Financial services, funds | $15,000+/yr |
| ADGM (Abu Dhabi) | Fintech, crypto | $8,000+/yr |
Who It Is For
- IT and SaaS with international clients
- Trading companies (import/export)
- Consulting and agencies
- Crypto and Web3 (DIFC, ADGM)
- Freelancers needing a legal structure with no income tax
Requirements
- Valid passport of the founder
- Proof of address
- Choice of free zone and business activity
- Office or flexi-desk rental (mandatory in most zones)
Cost & Timeline
| Item | Amount |
|---|---|
| Registration + licence | from $2,500 |
| Annual maintenance | from $2,000/yr |
| Residency visa (optional) | $1,500–3,000 |
| Registration time | 3–7 business days |
| Bank account | 2–4 weeks |
Pros & Cons
Pros:
- 0% corporate and personal tax
- Global reputation — not seen as offshore
- 100% foreign ownership in free zones
- UAE residency visa available (optional)
- Strong banking system
Cons:
- Higher cost than Eastern European jurisdictions
- Mandatory office/flexi-desk rental
- 5% VAT when serving UAE clients
- Strict bank KYC
FAQ
Can I open a UAE company remotely?
In most free zones, yes. A residency visa requires an in-person visit, but it is not required for the company to operate.
Do I need a visa to own the company?
No. A visa is optional. The company can exist without a residency visa for its founder.
Does Stripe work in the UAE?
Stripe is available in the UAE but often requires a US/EU bank account or entity. Many founders use a UAE holding company paired with a US LLC for Stripe.
Can I live in Russia and own a UAE company?
Yes. Physical presence in the UAE is not required for company ownership.