UAE company setup: free zone, mainland or offshore
A free zone company costs at least £2,800 in year 1, a Dubai mainland company £5,805 and a RAK ICC offshore company £1,160. Which one fits depends on where you sell and whether you want a UAE visa.
| Country | Minimum, year 1 | Per year after | Typical year 1 | Corporation tax | Setup |
|---|---|---|---|---|---|
| UAE (free zone) | £2,800 | £1,500 | £5,375 | 0% / 9% | Visit needed |
| UAE (Dubai mainland) | £5,805 | £3,485 | £8,705 | 0% / 9% | Visit needed |
| UAE (RAK ICC offshore) | £1,160 | £1,100 | £1,878 | 0% / 9% | Through a provider |
Free zone
A free zone company trades inside its free zone and with customers outside the UAE. Qualifying income is taxed at 0%, which needs an audit. The licence comes with visas, and UAE banks usually want you to hold one before they open an account. Running it costs at least £1,500 a year, most of it the licence renewal.
Dubai mainland
A Dubai mainland company can trade anywhere in the UAE. It costs the most, mostly through the licence and an office lease. Profit up to AED 375k is taxed at 0%, and 9% above.
RAK ICC offshore
A RAK ICC offshore company is a holding company. It gets no visa, no office and cannot trade in the UAE. UAE banks rarely open accounts for one, so it suits holding shares or property more than trading.
Where you pay tax
A company is usually taxed where it is managed and controlled, not where it is registered. If you make the decisions from home, your home country will usually tax the company, whatever rate it pays abroad.
Questions
Which UAE company is cheapest?
A RAK ICC offshore company, at least £1,160 in year 1 and £1,100 a year after.
Which gets me a UAE visa?
Free zone and mainland companies can sponsor visas. A RAK ICC offshore company cannot.
Can a free zone company trade in Dubai?
Not directly with mainland customers. It needs a mainland distributor or a mainland licence.
Is there corporation tax in the UAE?
Yes, since 2023. Profit above AED 375k is taxed at 9%. Qualifying free zone income is taxed at 0%.
Get quotes from formation agents
Tell us what you need and we'll pass it to firms that can help.