Answers to Your
Business Setup
Questions

“Clear, concise, and reliable guidance on UAE business setup, compliance, and growth.”

FAQs for UAE Business
Setup & Compliance

Business Setup Basics

 Yes, expatriates can now hold 100% ownership in most Mainland, Free Zone, and Offshore businesses.

 Mainland companies trade freely within the UAE. Free Zone companies offer tax benefits but limited local trade. Offshore companies are for international operations without local activity.

 No, virtual offices or flexi-desk solutions are accepted for trade licence registration in many zones.

 The UAE issues Commercial, Professional, Industrial, and Tourism licences based on your business activity.

 Startup costs vary widely, from AED 15,000 for Free Zone packages to AED 20,000–30,000 for full Mainland setups.

 A Limited Liability Company is a common business entity with 2–50 shareholders and limited liability up to their share capital.

 Not anymore, UAE law now allows 100% expat ownership in most business activities.

Not directly. They must use third-party distributors or upgrade their licence to Mainland.

It depends on the Free Zone and activity. Branch firms usually don’t require capital.

 Yes, changes like activities or shareholders can be updated post-incorporation.

Visa & PRO Services

 PRO services handle all government paperwork such as visas, labour cards, and trade licence renewals.

 Yes, expatriates must have a valid employment or investor visa to legally work.

 Yes, investors and business owners can apply for residency through their company.

Residency visas are usually valid for 2 or 3 years depending on the Free Zone or Mainland

 Yes, family members require dependent visas sponsored by the employee or investor.

Standard tests include blood tests and chest X-ray screening.

 Yes, investors meeting specific criteria can apply for a UAE Golden Visa.

Yes, most Free Zones include 1–6 visa quotas in their business packages.

 Generally 5–10 working days if all documents are complete.

Yes, companies can apply for entry permits to hire employees from abroad.

 

Mainland Business Setup

 It allows you to trade anywhere in the UAE and internationally without restrictions.

 Yes, most business activities now allow 100% foreign ownership in Mainland.

 Yes, some professional licences may require a local service agent.

 It depends on your office space size and activity, usually starting from two to unlimited.

 Yes, a Mainland licence gives you access to all seven Emirates.

Yes, Mainland businesses are subject to UAE corporate tax depending on income.

 Yes, a physical office or business centre facility is required for registration.

 Typically 5–10 working days depending on approvals.

 Yes, but you will need to reapply and comply with Mainland regulations.

 Yes, specific activities require approvals from regulators such as RTA, DHA, or KHDA.

Document Attestation & Legal Services

It is the process of certifying documents to be legally recognised by UAE authorities.

 

 Educational certificates, marriage certificates, and commercial documents.

 Yes, documents like MOAs and shareholder agreements often require notarization.

 The Ministry of Foreign Affairs and UAE embassies handle attestation.

Yes, for key documents like degrees used for visa processing.

Usually 2–7 working days depending on the authority.

 Yes, after legalization in the home country and UAE embassy.

Yes, non-Arabic documents require certified Arabic translation.

 Yes, Dubai Courts and other authorities now offer e-notarisation.

No, once attested they remain valid unless new amendments are made.

Growth & Expansion

 Yes, Mainland companies can expand across all seven Emirates.

Yes, through a branch office or distributor arrangement.

 Yes, but requires new applications and approvals from DED.

 No, offshore entities cannot trade within the UAE.

  1. Yes, the UAE has signed agreements with over 130 countries.

 Yes, the UAE has signed agreements with over 130 countries.

 Yes, investors can own multiple licences and companies.

Yes, patents, trademarks, and copyrights can be registered in the UAE.

No, qualifying Free Zones continue to benefit from 0% tax on eligible income

Yes, businesses earning less than AED 3 million annually may qualify for relief.

Free Zone Benefits & Limitations

 Enjoy 100% ownership, tax exemptions, repatriation of profits, and simplified administration.

  1. Yes, Free Zone companies cannot trade directly with the UAE mainland.

 Specific Free Zones that offer 0% corporate tax on qualifying income from international activities.

 Meydan Free Zone offers a “Fawri” instant LLC licence process.

Yes, you can register with a flexi-desk or virtual address under certain conditions.

 Each Free Zone caters to specific sectors like tech, media, logistics, and finance.

 No, a key advantage of Free Zones is 100% foreign ownership with no local sponsor needed.

Yes, most Free Zones offer a visa quota as part of the setup package.

Yes, one of the benefits is 100% repatriation of capital and profits.

Yes, with support, they can open corporate bank accounts in UAE banks.

Banking & Finance

 Yes, most Free Zone companies can open corporate bank accounts with local banks.

 Trade licence, shareholder passports, business plan, and tenancy contract are usually required.

 Yes, banks may require proof of a UAE office address or business centre.

 It usually takes 2–4 weeks depending on the bank and documentation.

 Yes, most banks require AED 25,000–50,000 as a minimum balance.

Yes, but stricter compliance checks are applied.

 

 

 Yes, the company owner or authorised signatory must be present.

 Yes, many banks provide accounts in AED, USD, EUR, and other major currencies.

 Yes, investors can open both types of accounts after company formation.

Yes, UAE banks are globally connected and support swift international transfers.

Corporate Tax & VAT

 Yes, the UAE introduced corporate tax effective June 2023 at 9% for profits above AED 375,000.

 Free Zone entities that qualify under specific criteria may remain exempt.

 

 

 0% for profits up to AED 375,000 and 9% above that threshold.

 Yes, all companies must register with the UAE Federal Tax Authority.

 Value Added Tax is 5% applied to most goods and services.

Businesses with taxable supplies exceeding AED 375,000 annually must register.

 Yes, if revenue exceeds AED 187,500 annually.

 Typically quarterly, though some businesses file monthly.

 Yes, unless they are in designated zones with specific exemptions.

Yes, if the company is VAT-registered and expenses are related to taxable supplies.

Business Operations & Compliance

 Yes, most companies must maintain audited financial records.

Yes, for most Mainland and Free Zone companies as per authority rules.

 Yes, UAE allows 100% repatriation of capital and profits.

 No, but visas must be processed through the Ministry of Human Resources.

 Yes, all UAE entities must declare their UBO details.

 A UAE requirement ensuring companies conducting relevant activities have real operations in the country.

Yes, if their activities fall under the relevant ESR category.

 Businesses must report suspicious transactions and follow due diligence rules.

The UAE Central Bank and Financial Intelligence Unit monitor compliance.

Yes, non-compliance with tax or ESR can result in heavy fines and licence suspension.

Updates & Trends

It was introduced for financial years starting on or after 1 June 2023.

 Yes, registration is mandatory even if exemptions apply.

 Yes, if their annual business income exceeds AED 1 million.

Yes, late submissions result in penalties from the FTA.

 Crypto taxation is still under review with evolving regulations

 Yes, most sectors allow 100% foreign ownership.

Not yet, but incentives may be introduced in the future.

Yes, but UBO (Ultimate Beneficial Owner) disclosure rules now apply.

No, Free Zone benefits remain as long as qualifying conditions are met.

 The Ministry of Finance and Federal Tax Authority websites publish official updates.

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