UAE (free zone) vs Singapore
Singapore is £1,657 cheaper in year 1 and £540 a year cheaper after that.
| UAE (free zone)Free zone LLC / FZCO | SingaporePrivate limited (Pte Ltd) | |
|---|---|---|
| Costs | ||
| Minimum, year 1 | £2,800 | £1,143 |
| Minimum, per year after | £1,500 | £960 |
| Typical year 1 | £5,375 | £2,941 |
| Government fee | £2,500AED 6,000 to 25,000 licence (renewed yearly) | £183S$315 ACRA |
| Indirect setup | £300–2,350 | £0–300 |
| Running per year | £1,500–8,850 | £960–4,255 |
| Share capital | Usually none | S$1 |
| Rules | ||
| Directors | No local director | Local director neededAt least one director must live in Singapore. A nominee costs about S$1,200 to S$3,000 a year. |
| Remote setup | Visit neededThe licence can be done remotely. The visa and bank account usually need a visit. | Through a providerRemote through a corporate service provider. |
| Audit | Audit needed for 0% free zone tax | No audit for small companies |
| Time to form | 1 to 3 weeks | 1 to 3 days |
| Ease for foreign owners | 4/5 | 3/5 |
| Tax and banking | ||
| Corporation tax | 0% / 9%0% on qualifying free zone income, 9% on other profit above AED 375k. | 17%17%, with lower effective rates on the first S$200k. |
| Dividend withholding | None | None |
| VAT / GST | 5% | 9% |
| Banking | 2/5UAE banks usually want a residence visa and a visit. | 3/5Aspire and Airwallex work. Traditional banks want a visit. |
| All company setup fees in the UAE (free zone) | All company setup fees in Singapore | |
Questions
Is the UAE (free zone) cheaper than Singapore for company setup?
No. Singapore is cheaper, at least £1,143 in year 1 against £2,800 for the UAE (free zone).
Which is cheaper to run each year?
Singapore, at least £960 a year against £1,500 for the UAE (free zone).
Which needs a local director?
Singapore. At least one director must live in Singapore. A nominee costs about S$1,200 to S$3,000 a year. The UAE (free zone) does not need one.
Which is faster to set up?
Singapore, in 1 to 3 days. The UAE (free zone) takes 1 to 3 weeks.
How does corporation tax compare?
The UAE (free zone): 0% on qualifying free zone income, 9% on other profit above AED 375k. Singapore: 17%, with lower effective rates on the first S$200k.
Sources: PwC · The Tax Lead · ACRA · LeftRight