Company tax setup: Establish your business in Dubai with strategic tax advantages
Dubai attracts entrepreneurs, investors, and high-net-worth individuals from around the world – not least because of its attractive tax policies. However, since the introduction of corporate tax in June 2023, the landscape has changed. Today, anyone setting up a company in Dubai must think strategically about taxation and take regulatory requirements seriously.
A clearly structured setup is essential – both for optimizing your tax burden and for ensuring a legally compliant position in the market. It is important to distinguish between Mainland, Free Zone, and Offshore structures – and to choose the model that best aligns with your goals.
Nevari Capital guides you through this process – from the initial analysis to the finalized structure. With Swiss precision, in-depth expertise, and a strong local presence in Dubai, we support you in building your holding or operating structure efficiently, compliantly, and with long-term sustainability.
In this guide, you will learn:
- What types of business entities exist – and how they are treated for tax purposes
- When the new corporate tax applies (and when it doesn’t)
- Which tax obligations and deadlines must be observed
- How you can benefit from a Free Zone company or offshore structure from a tax perspective
- Why Dubai is a strategically attractive location for high-net-worth entrepreneurs
1. Corporate tax in Dubai: What you need to know
Key facts at a glance
- Tax rate: 9% on net profit
- Exemption threshold: Profits up to AED 375,000 (~EUR 92,000) are tax-free
- Scope of application:
- Companies based in the UAE
- Foreign companies with a “permanent establishment” in the UAE
- Exemptions:
- Personal income (e.g., from sole proprietors)
- Dividends from subsidiaries (in a holding structure)
- Capital gains from the sale of shareholdings (under certain conditions)
With the right structure, you can minimize your tax burden. Free Zone companies with qualifying activities can still benefit from 0% taxation – provided they meet specific criteria.
How Nevari Capital supports you
- Assessment of whether your business model qualifies for the 0% tax regime
- Advisory on structuring holding or operating companies
- Assistance with tax registration at the UAE Federal Tax Authority (FTA)
- Ongoing tax compliance through our local partner network
2. Business structures in Dubai & their tax implications
Mainland Company: full flexibility, full tax liability
Anyone establishing a so-called Mainland Company registers directly with the Dubai Economic Department (DED). This structure allows unrestricted business activity across the entire UAE mainland – both with individuals and with other companies.
However, this type of company is subject to the full corporate tax rate of 9% on every dirham above the exemption threshold. In addition, there are regulatory requirements and higher setup costs. Nevertheless, this structure can be worthwhile for operating businesses focused on the local market.
Free Zone Company: tax-efficient with a clear strategic focus
Free Zone Companies – i.e. businesses registered in one of Dubai’s 30+ free trade zones – can benefit from significant tax advantages. If they carry out so-called “qualifying activities” and do not engage in direct business with the mainland, they may qualify for a 0% corporate tax rate.
Important: To qualify for this status, certain conditions must be met – such as having real substance on the ground (e.g., a physical office, local employees) and compliance with the Economic Substance Regulations. Additionally, the allowed business activities are limited to specific sectors depending on the chosen Free Zone.
Offshore Company: tax-free but restricted
Those who establish an offshore company – for example in JAFZA or RAK ICC – typically aim for international investments, holding structures, or IP management. These companies are not permitted to conduct business within the UAE, but they benefit from complete tax exemption and minimal regulatory requirements.
Access to local banks can be limited for offshore structures. Careful planning is therefore essential.
Where Nevari Capital provides concrete support
We help you identify the most suitable company structure based on your goals – whether operational business, asset management, or international expansion. Together, we assess the tax and legal implications, clarify requirements, and handle all necessary registrations through our local partner network.
3. Registration & tax obligations: What is legally required
A tax-optimized setup alone is not enough – what matters just as much is proper registration and compliance with all tax obligations. Since the introduction of corporate tax, clear regulations apply regarding who must register with the Federal Tax Authority (FTA) and which deadlines must be met.
Tax registration with the FTA
Companies with an annual turnover exceeding AED 375,000 are required to register with the FTA. This applies to both Mainland and Free Zone companies – regardless of whether they are ultimately subject to corporate tax or (still) operate tax-free.
Registration is done via the government’s EmaraTax portal. The following documents must be submitted, among others:
- Trade license and Memorandum of Association (MOA)
- Documents related to owners and directors
- Proof of revenue
- Information about the company structure
What counts as taxable income?
The basis for taxation is the operational profit – meaning revenue minus allowable costs and operating expenses. The following remain tax-exempt:
- Dividends from UAE-based subsidiaries
- Capital gains from qualifying share disposals
These exemptions are particularly relevant for holding structures – an area where Nevari Capital provides targeted advisory services.
Deadlines and Compliance
The tax return must be submitted annually within 9 months after the end of the financial year. For a financial year ending on December 31, 2024, the latest submission deadline is September 30, 2025.
In addition, companies must pay attention to the following points:
- Possible registration for Value Added Tax (VAT) for revenues exceeding AED 375,000
- Compliance with the Economic Substance Regulations (ESR), if the activity falls under its scope
- Documentation in accordance with Transfer Pricing Rules (TPR) for intra-group transactions
Support from Nevari Capital
We not only assist you with registration and selecting the appropriate authorities – we also ensure that all deadlines, forms, and tax reporting obligations are met. Through our local partners, we make sure your structure remains fully compliant – even in complex holding or cross-border setups.
4. Value Added Tax (VAT) in Dubai: What entrepreneurs need to know
Key points at a glance
- Rate: 5% on taxable supplies
- Threshold: Mandatory registration from AED 375,000 annual turnover (rolling 12-month period)
- Responsible authority: Federal Tax Authority (FTA)
- Registration: via the EmaraTax portal (separate from corporate tax)
- Obligation to submit VAT returns: generally on a quarterly basis
Important: Even companies that (currently) do not pay corporate tax may still be required to register for VAT – for example, Free Zone companies with local operational activities.
Nevari Capital, together with experienced partners, ensures that your VAT obligations are accurately assessed, met on time, and efficiently structured – especially when it comes to borderline cases and international transactions.
5. Strategic Advantages of a Company Location in Dubai
Dubai is far more than just a tax haven. Over the past years, the Gulf metropolis has evolved into a globally leading hub for entrepreneurs, investors, and wealth managers – offering an environment that is both fiscally attractive and economically stable.
Tax optimisation with a clear structure
Free Zone or Offshore companies allow for effective tax planning – for example, through holding structures that can receive dividends and capital gains tax-free under certain conditions. With proper structuring, you can not only save on taxes but also consolidate international investments efficiently.
100% foreign ownership
In most free zones, you can own your company 100% – without local sponsors or shareholders. This ensures full control, streamlines decision-making, and allows for flexible expansion.
Over 135 Double Taxation Agreements (DTAs)
International banking infrastructure
Dubai offers access to stable, internationally connected banks with multi-currency accounts, digital banking services, and high availability – ideal for structured wealth management, holding companies, or international financial transactions.
Political stability & business-friendly environment
Nevari Capital: Your partner for a legally compliant setup in Dubai
A tax-efficient and legally compliant company setup in Dubai requires experience, attention to detail, and reliable local partners. This is exactly where Nevari Capital comes in. As an owner-managed advisory firm with Swiss roots and a base in Dubai, we personally guide you through every step of the structuring process – from strategic planning to implementation.
We analyze your individual objectives – whether asset protection, a holding structure, international business, or an operational setup – and develop a tailored concept based on these goals. In doing so, we rely on an established network of local tax advisors, legal experts, Free Zone authorities, and banks.
Our services at a glance:
- Selection of the optimal business structure (Mainland, Free Zone, Offshore)
- Structuring of holding companies or operating entities
- Coordination of registrations with the FTA, DED, or Free Zone authorities
- Support with Economic Substance and Transfer Pricing obligations
- Introductions to reliable local trust and banking partners in Dubai
- Ongoing support and compliance assurance through local law firms
Whether you already have a clear plan or are just at the beginning: Nevari Capital offers you a trusted, German-speaking point of contact on the ground who not only keeps track of regulatory requirements – but also safeguards your long-term interests.
Conclusion: Benefit from Tax Advantages with the Right Setup - Sustainable and Secure
A company setup in Dubai continues to offer outstanding tax and strategic advantages – especially for investors and entrepreneurs with an international mindset and a long-term vision. However, with the introduction of corporate tax, the era of simple solutions is over: Today, a well-thought-out and legally compliant concept matters more than ever.
Whether Free Zone, Offshore, or Mainland – each structure has its strengths and pitfalls. Those who understand and apply them correctly can not only save on taxes, but also build efficient and compliant international asset structures.
Nevari Capital supports you with experience, local presence, and a trusted network. Together, we develop a setup that aligns with your goals – clear, transparent, and future-proof.
Frequently Asked Questions (FAQ)
No. Operational profits up to AED 375,000 are tax-free. In addition, certain Free Zone companies with qualifying activities can continue to benefit from a 0% tax rate, provided they do not conduct business with the UAE mainland and meet all required conditions.
Yes, especially for shareholdings, dividend flows, or IP structures, a Free Zone company can be highly tax-efficient – provided the Economic Substance requirements are met. Nevari Capital helps you choose the right zone and structure.
As soon as your annual turnover reaches AED 375,000 or more, registration with the Federal Tax Authority becomes mandatory – regardless of whether corporate tax is actually payable. Registration is completed online via the EmaraTax portal.
These regulations require certain companies to demonstrate economic substance in the UAE – such as a physical office, local employees, and genuine business activity. This applies, among others, to holding companies, IP structures, and financial service providers.
Yes – in most Free Zones, 100% foreign ownership is permitted without a local sponsor or partner. This allows you to retain full control over your company.
Depending on the company structure and Free Zone, the process can take between 1 and 3 weeks – including the company license, bank account opening, and tax registration. With Nevari Capital, the process is structured, efficient, and legally compliant.
Yes. We support you not only during the company formation phase, but also with ongoing tax compliance, banking matters, license renewals, and economic substance requirements – through our qualified partner network in Dubai.