United Arab Emirates (AE)
The United Arab Emirates is a federation of seven emirates — Abu Dhabi, Dubai, Sharjah, Ajman, Umm Al Quwain, Ras Al Khaimah, and Fujairah — that has transformed from a pearl-diving and fishing economy into one of the world's most modern and cosmopolitan nations within a single generation.
Capital: Abu Dhabi
Region: Middle East
Language: Arabic
Currency: AED (د.إ)
Cost of living: Expensive (index 78)
Emergency: 999
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Business Setup
Start a business or go freelance in United Arab Emirates.
🧑💻 Freelancer / Self-Employed Guide
Steps to register:
- 1 1. Choose your setup: mainland MOHRE Freelance Permit (AED 1,070/year, valid for consultancy/professional services) or a free zone licence (IFZA, Meydan, Shams, Dubai Creative Clusters) — free zone options bundle your residence visa.
- 2 2. Select your business activities: pick from the approved activity list of your free zone or MOHRE permitted categories. Some free zones allow multiple activities on one licence.
- 3 3. Apply online at your chosen free zone portal or at mohre.gov.ae for the MOHRE permit. Submit passport, Emirates ID (if already resident), passport photo, and payment.
- 4 4. Receive your licence within 1–5 working days. If on the free zone route, this also sponsors your UAE residence visa and enables Emirates ID application.
- 5 5. Open a business bank account: required for professional invoicing. RAK Bank, Mashreq Neo, and WIO Bank offer business accounts for free zone licence holders.
- 6 6. Register for VAT at tax.gov.ae (EmaraTax) if annual taxable turnover exceeds AED 375,000. Voluntary registration is possible from AED 187,500. VAT rate: 5%.
- 7 7. Register for Corporate Tax: from June 2023, UAE businesses pay 9% corporate tax on profits above AED 375,000 per year. Register at emaratax.gov.ae regardless of profit level.
- 8 8. Invoice requirements: include your name/company name, TRN (Tax Registration Number if VAT registered), client details, invoice number, date, service description, amount, and VAT amount if applicable.
Tax registration
Federal Tax Authority (FTA) via EmaraTax portal at emaratax.gov.ae. All businesses must register for Corporate Tax. VAT registration required if turnover exceeds AED 375,000.
VAT threshold
AED 375,000 annual taxable turnover (mandatory VAT registration). Voluntary registration possible from AED 187,500.
Invoicing
Invoices must include: your name or trade name, TRN (Tax Registration Number if VAT registered), client details, invoice number, date, description, net amount, VAT rate and amount (or zero-rated/exempt note), total amount, and payment details.
Social security
UAE expatriates have no social security contributions or deductions from salary. End-of-Service Gratuity (EOSG) is paid by your employer at contract end — calculated on basic salary (21 days per year for years 1–5, 30 days per year thereafter). There is no unemployment insurance for self-employed expats.
💡 The UAE has NO personal income tax on salary or freelance income. Corporate tax (9%) applies to business profits above AED 375,000 from June 2023. VAT (5%) is separate and applies to taxable supplies above the registration threshold. Many freelancers choose a free zone licence as it bundles the business licence with a UAE residence visa.
🏢 Business Structures
Mainland LLC · Limited Liability Company (Mainland)
Limited Liability Company (LLC)
No minimum capital requirement (since 2021 Companies Law reform)
Min. capital
2–4 weeks
Setup time
Liability: Limited to share capital. Shareholders not personally liable beyond their contribution.
Setup cost: AED 15,000–30,000 (licence + registration + trade name + visa quota)
Best for: Businesses serving UAE mainland market, retail, construction, hospitality, F&B, general trading. Now allows 100% foreign ownership in most sectors (since 2021 — previously required 51% UAE national partner).
Free Zone Company (FZC) · Free Zone Company / Free Zone Establishment
Limited Company in a Special Economic Zone
Varies by free zone: AED 0 (many modern free zones) to AED 150,000 (DAFZA)
Min. capital
1–2 weeks (most free zones have streamlined digital setup)
Setup time
Liability: Limited to share capital.
Setup cost: AED 11,000–50,000+/year (licence + visa). Cost varies significantly by free zone and activity.
Best for: Businesses primarily serving international or export markets. 100% foreign ownership. No personal income tax and (in most free zones) no corporate tax on profits re-exported outside UAE. Cannot trade directly on UAE mainland without a local distributor or mainland branch.
Sole Establishment (Mainland) · Sole Establishment / Individual Establishment
Sole Trader
No minimum capital
Min. capital
1–3 weeks
Setup time
Liability: Unlimited personal liability — owner personally liable for all business debts
Setup cost: AED 8,000–15,000 (licence + registration)
Best for: UAE nationals and professionals in licensed professions (consultancy, legal, medical, engineering). Expatriates cannot own a Sole Establishment unless in a professional licence context approved by DED.
Branch Office (Mainland) · Branch of a Foreign Company
Branch Office
No minimum capital, but local service agent required (UAE national)
Min. capital
4–8 weeks (requires Ministry of Economy approval)
Setup time
Liability: Parent company is fully liable for branch activities.
Setup cost: AED 20,000–40,000 (DED registration + Ministry of Economy approval + local agent fee AED 5,000–10,000/year)
Best for: Foreign companies wishing to operate in UAE mainland without a separate entity. Cannot engage in activities outside the parent company's scope. Common for engineering, consulting, and services firms.
Freelance Permit (Free Zone) · Freelance Permit / Self-Employment Licence
Sole Trader / Freelancer
No minimum capital
Min. capital
1–2 weeks
Setup time
Liability: Personal liability (you trade under your own name)
Setup cost: AED 10,500–20,000/year (licence + visa). IFZA, Fujairah Creative City, and Dubai Media City are popular options.
Best for: Independent professionals in media, technology, education, consulting, design, journalism. Includes residence visa. Cannot employ staff (some free zones allow 1–2 staff). Must operate within the free zone's permitted activities.
DIFC Entity · Dubai International Financial Centre Company
Company in a common law jurisdiction (UK-standard legal environment)
USD 50,000 (Category 4 financial firms higher)
Min. capital
4–8 weeks
Setup time
Liability: Limited to share capital.
Setup cost: USD 5,000–15,000 (registration) + annual fees USD 2,000–8,000. Most expensive option.
Best for: Financial services, fintech, asset management, legal and professional services firms requiring common law jurisdiction and international credibility. DIFC has its own courts, employment law, and contract law based on English common law.
ADGM Entity · Abu Dhabi Global Market Company
Company in a common law jurisdiction (English law-based)
USD 1 (for most entities)
Min. capital
2–4 weeks
Setup time
Liability: Limited to share capital.
Setup cost: USD 3,000–10,000 registration + annual fees
Best for: Finance, fintech, investment, and professional services based in Abu Dhabi. Similar to DIFC but in Abu Dhabi. Uses English common law. ADGM is growing as a hub for family offices, investment firms, and VC-backed startups.
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