Frequently Asked Questions

Frequently asked question .

Frequently Asked Questions2023-06-14T16:47:35+04:00

Here Is The Most Frequently Asked Questions.

We tried to answer most of the common questions which might arise.

From what date will profits be taxed?2023-06-16T16:56:37+04:00

The tax will start to apply on the figures of the 1st financial year of your company, which will start after June 1, 2023. If your financial year, provided for in your articles of association, starts on January 1st until December 31st, then your first tax will only concern the profit generated between January 1st, 2024 and December 31, 2024.

When do we have to declare and pay?

Declarations and payments will be due within 9 months of the end of your financial year. In the example above, this would be the end of September 2025.

Who pays tax and how much?2023-06-16T16:50:17+04:00


1/ Mainland LLC local companies

2/ Free Zone companies. We are awaiting the Cabinet Decision, as these companies being very important for the Emirates and their activities mainly oriented towards international and export, they may not be taxed. The expected clarification concerns the share of income that free zones generate on the local market, and whether this would call into question the income generated for export.

3 / And the RAKICC companies? We are waiting for clarifications on this type of company if they have to register.


How is the tax calculated?

The tax is 9%, on profits over AED 375,000 (approx. USD 100,000). Below this profit threshold, the tax is 0%.

What type of company should register for corporation tax?2023-06-16T16:45:50+04:00

Mainland companies and Free Zone companies are required to register and obtain a registration number.

Regarding the IBCs (International Business companies) of RAKICC, we are still awaiting clarifications from the Cabinet Decision

New UAE Corporate Tax 20232023-06-16T15:08:27+04:00

The corporate income tax, announced last year, came into effect on June 1, 2023.

It had been announced a corporate tax of 9% on the portion of profits above AED 375,000.

The types of income affected are still not final at the time of this writing, we are awaiting the Cabinet Decision which will clarify this.

How can I set up a Business in Dubai?2022-11-14T16:32:58+04:00

A business license is required in Dubai to open a business. The most common types of business licenses are three. Offshore, Free Zones, and the Mainland. Each license category has a different application process.

In Dubai, business setup primarily entails the following:

  • Initial approval from the competent authority, for initiation of the business.
  • After carefully examining the documents, the authority grants their legal and official approval. This comprises the investor’s name, credentials, place of residence, financial stability, and other details.
  • The AOA and MOA, the basic organizational structure, the official and commercial space, and other factors will be examined by the authorities to determine the business’ viability.
What About the Office or Commercial Premises ?2022-11-14T16:33:03+04:00

We advise you and help you identify offices or commercial premises. Some neighborhoods or free zone have rental prices that vary from single or triple. The question of the office and the available budget can also be decisive for the choice of your free zone or the type of company.

For trading, import and export activities, you may need storage solutions, local and international transport, handling of your products and goods. We bring you the logistics solutions you need.

What is the type of the Company can i open in UAE ?2022-11-14T16:33:08+04:00

Several types of companies are possible. We listen to you to understand your needs and constraints. We then discuss the possible solutions available to you, and validate together a final solution. We can then proceed with the administrative formalities of the creation of the company

Can i open Offshore Account in International Bank ?2022-11-14T16:33:15+04:00

No! International banks such as HSBC, Standard Chartered Bank, Barclays, Citibank, … do not provide bank account opening services in Dubai for offshore companies.

Can i open Offshore Account in International Bank ?2022-11-14T13:58:17+04:00

No! International banks such as HSBC, Standard Chartered Bank, Barclays, Citibank, … do not provide bank account opening services in Dubai for offshore companies.

Are corporate shareholders permitted in Dubai offshore?2022-11-14T13:58:22+04:00

Yes, JAFZA allows corporate shareholders.

Which documents are accepted as proof of residence for offshore incorporation?2022-11-14T13:58:28+04:00

ID Card, UAE Residence visa, utility bills like gas bills etc. (most recent)

Do I have to have the physical premise for the offshore company?2022-11-14T13:58:33+04:00

Not necessarily; you can only incorporate your business without having any business entity in the UAE

Is an offshore company eligible for letter of credit?2022-11-14T13:58:47+04:00

Offshore companies are not eligible for letter of credit (LC) or any other credit facilities from the banks.

What kind of company structure should I choose?2022-11-14T13:59:08+04:00

This depends on your needs, as well as the needs of your business. You could set up your company as a Sole Establishment (this is the same as a Sole Proprietorship), as a Limited Liability Partnership, a Limited Liability Company, a Private Limited Company, or a Professional Services Company.

You also have the option of setting up your company on the mainland, in a free zone (only limited liability company structures are permitted here), or offshore.

What are the benefits of Dubai freezone company formation?2022-11-14T13:59:16+04:00
  • You are 100% owner of your business
  • You can repatriate 100% of capital and profits
  • No corporate tax
  • No income tax
  • Infrastructure and facilities for industrial and commercial purposes.
  • Simple import and export procedure
  • No restrictions on hiring expatriates
  • 3 years residence visa for the United Arab Emirates
Which are the types of companies in a Free Zone?2022-11-14T13:59:21+04:00
    You can choose to set up a Free Zone Company (FZC), Free Zone Establishment (FZE), Branch of a foreign company or Branch of a UAE company in Dubai Free Zone for Dubai freezone company setup.


How much is the customs duty applicable to a Free Zone company?2022-11-14T13:59:27+04:00

Free Zone companies are exempted from export and import customs duties.

Am I required to be a UAE resident to own a Free Zone company?2022-11-14T13:59:33+04:00

No, you are not need to reside in the UAE in order to start up a business in the Dubai free zone. The company’s general manager should live in the UAE, nevertheless.

What are the advantages of setting up a business in Dubai?2022-11-14T13:59:51+04:00

Dubai extends a warm welcome to investors. Dubai is one of the most developed cities in the world, and doing business there provides limitless opportunities. The legality, tax laws, and other official standards are created in a way that supports investment. The infrastructure is really well thought out and designed, giving you many opportunities to succeed.

Does establishing a business in Dubai include any legal complications?2022-11-14T13:59:55+04:00

The UAE’s legal framework was created with ease of investment in mind. The process and legal requirements are quickly completed by the authorities. As a result, you won’t have to wait long to start doing business in Dubai or the United Arab Emirates.

Can I start a Free Zone company in Dubai in 100% ownership?2022-11-15T13:06:56+04:00

Yes. A Free Zone company in Dubai doesn’t require a local sponsor. Therefore, you can own 100% shares in the company.

How to start an LLC company in UAE?2022-10-10T17:57:11+04:00

To establish your LLC Company in Dubai mainland or anywhere else in UAE, you have to reserve a trade name and other necessary preliminary approvals from concerned authorities. You get an MOA from the company and also, submit the lease contract to the licensing authority. Also, find a local partner and rented office space to start your business.

How long does it take to incorporate a business in the UAE offshore?2022-10-10T10:32:55+04:00

It does not take more than 2 days.

Can one open a multi-currency account in the UAE?2022-11-15T13:12:10+04:00

Yes; companies in the UAE can have accounts in different currencies like AED, USD, Euro, GBP, CHF, etc