You're not just moving. You're relocating a business.
I've helped 25+ founders set up companies in Dubai over the past 3 years. Some saved hundreds of thousands in taxes. Some wasted months on the wrong free zone. The difference was understanding how things actually work here.
Dubai isn't the cheapest place to incorporate. It's not the fastest. And the bureaucracy can be frustrating.
But if you want zero corporate tax, a real banking system, and a base that clients and investors take seriously — it's hard to beat.
Is Dubai right for your business?
Not "why Dubai is great for business" — every free zone will tell you that. Let me tell you who actually benefits.
Dubai makes sense if:
- ✓You're selling services internationally (consulting, SaaS, agencies)
- ✓Your business is already profitable and you're losing money to taxes
- ✓You want a credible jurisdiction for international clients/investors
- ✓You need a banking system that actually works for cross-border payments
- ✓You're planning to raise from GCC investors or expand into MENA
- ✓You want to live in a safe, modern city while running your company
Dubai probably isn't for you if:
- ✗You're pre-revenue and every dollar matters (setup costs are real)
- ✗You only have US/EU clients who don't care about your jurisdiction
- ✗You want to sell physical products locally (mainland is complicated)
- ✗You need heavy regulatory approvals (crypto, healthcare, etc.)
- ✗You're looking for startup ecosystem energy (it's getting better, but still small)
"The math is simple: if you're making $200K profit and paying 30% tax, that's $60K gone. Setup in Dubai costs $10-20K first year, plus ~$5K annually. If you're staying more than a few months, it pays for itself."
Coming from somewhere else?
Most founders considering Dubai are comparing it to other jurisdictions. Here's how it actually stacks up:
Free zone vs mainland: the big decision
This is the first fork in the road. Get it wrong and you'll either overpay or limit yourself unnecessarily.
| Free Zone | Mainland | |
|---|---|---|
| Ownership | 100% foreign owned | 100% foreign owned (since 2021) |
| Corporate tax | 0% (with conditions) | 9% above AED 375K profit |
| Sell to UAE market | Limited/restricted | Yes, fully |
| Government contracts | No | Yes |
| Office requirement | Flexi-desk to office | Physical office required |
| Setup cost | AED 15-50K | AED 30-80K+ |
| Timeline | 1-3 weeks | 2-4 weeks |
| Visa allocation | Based on office size | Based on office size |
You're selling services internationally, don't need UAE clients, want lower setup costs, and prefer 0% tax. This is 80% of service businesses.
You need to sell to UAE companies, want government contracts, are importing/trading physical goods, or need unrestricted activities. More expensive but more flexible.
Some founders start with a free zone company for international work, then add a mainland company later for local sales. You can always expand — just start with what you need now.
How much does it actually cost?
Let's get specific. These are real numbers for a single-founder service business:
"The trap I see: founders go premium when lean would work, then burn runway. Or they go too lean and can't open a bank account. Match your setup to your actual needs, not your ego."
Ongoing annual costs
| Item | Annual Cost |
|---|---|
| License renewal | AED 8-40K (depends on free zone) |
| Visa renewal | AED 3-5K per person |
| Office / desk | AED 5-25K |
| Accounting | AED 3-8K |
| Audit (if required) | AED 5-15K |
| Corporate tax filing | AED 2-5K |
Total ongoing: AED 20-80K/year depending on your setup.
Calculate your exact setup costs
Our calculator compares free zones and gives you a realistic budget based on your business type.
Open Business Calculator→Popular free zones compared
There are 40+ free zones. You don't need to analyze them all. Here are the ones that matter for most founders:
IFZA (Dubai)
Best for: Budget-conscious founders, consultants, online businesses
Pros: Cheapest option, fast setup, good for solo founders. Cons: Less prestigious, some banks hesitant.
DMCC (Dubai)
Best for: Established businesses, trading companies, commodities
Pros: Best banking access, most recognized name, excellent facilities in JLT. Cons: More expensive, stricter requirements.
DIFC (Dubai)
Best for: Fintech, investment firms, fund managers, holding companies
Pros: English common law, top-tier reputation, best for regulated activities. Cons: Expensive, audit requirements, not for everyone.
RAKEZ (Ras Al Khaimah)
Best for: Manufacturing, trading, warehousing, cost-conscious setups
Pros: Very affordable, good for physical operations. Cons: 1 hour from Dubai, less prestigious for client-facing businesses.
Other options worth considering: Dubai Silicon Oasis (tech), Dubai Internet City (tech/media), Meydan (budget), Sharjah Media City (budget). See full free zone comparison →
The visa that comes with it
When you set up a company, you get visa allocation. Here are your options:
Investor Visa (2-3 years)
The standard visa you get with your business
Tied to your company. If you close the company, you lose the visa. Most founders start here.
Golden Visa (10 years)
Premium long-term residency for qualified entrepreneurs
The "set it and forget it" option. Your visa survives even if your business changes. Multiple pathways: property purchase, startup accreditation, or investment.
Full Golden Visa guide →As a business owner, you can sponsor your spouse and children (under 25 for sons, unmarried daughters any age). Each family member costs ~AED 3-5K for visa. You can also sponsor parents with specific income requirements.
Setting up step-by-step
The whole process takes 2-4 weeks if you're organized. Here's what actually happens:
Decision & Documentation
- →Choose free zone or mainland
- →Select business activity (be specific — it matters)
- →Gather documents: passport, passport photos, proof of address
- →Pick company name (check availability first)
- →Choose office type: virtual, flexi-desk, or physical
Application & Payment
- →Submit application to free zone
- →Pay initial fees (usually 50-100% upfront)
- →Sign MOA and shareholder documents
- →Receive initial approval
Visa & Emirates ID
- →Apply for entry permit (if outside UAE)
- →Medical fitness test (same day, simple)
- →Emirates ID biometrics
- →Visa stamping in passport
Final Setup
- →Receive trade license
- →Open corporate bank account
- →Set up accounting / bookkeeping
- →Register for corporate tax (mandatory since 2023)
You can do this yourself. Free zone portals are online. But an agent (AED 2-5K) saves you hours of back-and-forth, knows which activity codes to pick, and handles the visa run logistics.
My recommendation: DIY if you're already in Dubai and have time. Use an agent if you're doing this remotely or want it done fast.
Banking — the annoying reality
This is usually the hardest part. Let me save you some frustration.
The problem
UAE banks are paranoid about money laundering. They reject accounts regularly, especially for new companies with no UAE track record. Free zones like IFZA have lower approval rates than DMCC or DIFC.
Your options
- • DMCC or DIFC companies have 80%+ approval rates
- • Having a website and clear business description
- • Showing existing client contracts or invoices
- • Clean source of funds documentation
- • Physical office (even a desk) vs virtual office
"The frustrating truth: your first bank might say no. Apply to 2-3 simultaneously. Wio as backup while you wait for Emirates NBD is a common pattern."
Scaling and hiring
Once you're set up, here's how growth works:
Hiring employees
- →Each employee needs a visa sponsored by your company (AED 4-6K per person)
- →You need sufficient office space for visa allocation
- →Labor cards and contracts must follow UAE labor law
- →End of service gratuity is mandatory (21 days per year of salary)
- →Health insurance is mandatory for all employees
Hiring contractors
Much simpler. You can work with contractors worldwide without visa requirements. Just pay them via international transfer. Keep proper contracts for your records.
Getting more visas
Visa allocation depends on your office space. Flexi-desk = 1-2 visas. Small office = 3-6 visas. Larger office = more. You can upgrade your space to increase allocation.
Dubai has excellent access to talent from India, Pakistan, Philippines, and MENA. Salaries are generally lower than US/UK but higher than Southeast Asia. Remote hiring globally is also common — many Dubai companies have distributed teams.
Founders who've done it
“I was paying 45% tax in the Netherlands on my agency's profit. Set up in DMCC, moved here, and kept an extra €80K the first year. The setup headaches were worth about 3 days of frustration.”
“The banking was harder than I expected. Got rejected by two banks before Wio approved me. But once I was set up, everything just worked. The infrastructure here is genuinely excellent.”
“I was skeptical about the 'tax haven' reputation — would clients take me seriously? Turns out a DIFC address is more credible than my Delaware LLC ever was. Closed bigger deals after the move.”
Frequently asked questions
Yes, but you may still owe taxes in that jurisdiction. The tax benefit comes from having a UAE company. Many founders keep their existing company for legacy clients and set up UAE company for new business.
Introduced in 2023. Only applies to mainland companies and free zone companies with mainland revenue. Pure free zone companies serving international clients remain at 0%. Also only on profits above AED 375K (~$100K).
For setup: you'll need to visit for Emirates ID biometrics (can't be done remotely). For ongoing: most free zones don't have minimum presence requirements, but you should maintain genuine substance.
Yes. Most licenses allow multiple related activities. Adding unrelated activities may require additional fees or a separate license. Think about what you might do in the next 2-3 years when choosing activities.
You can liquidate. Process takes 2-3 months. You'll need to cancel visas, close bank accounts, and settle any outstanding fees. Not complicated, just time-consuming.
Growing but still small compared to US/UK. Main players: BECO Capital, Wamda, 500 Global MENA. Some free zones have accelerators (like DIFC FinTech Hive). Most founders here are bootstrapped or funded elsewhere.
Possible but regulated. VARA (Dubai's crypto regulator) requires licensing for most crypto activities. DIFC has its own crypto framework. It's not a crypto free-for-all — do proper legal due diligence.
The Dubai Founder Checklist
Free zone comparison spreadsheet, setup cost calculator, and the 5 mistakes that cost founders money — in one free download.
No spam. Just the checklist.