How to Set Up a Company in UAE from the UK: Step-by-Step Guide for Entrepreneurs

The UAE has become a magnet for UK entrepreneurs due to:

• Low corporate tax rates (0–9% in most cases)
• No personal income tax
• Strategic location for international business
• Access to world-class banking and free zones

Setting up a company in the UAE is no longer just for large corporations. Small and medium UK businesses, freelancers, consultants, and digital entrepreneurs are increasingly exploring UAE structures to grow internationally and plan tax-efficiently.

However, setting up a company from the UK requires careful planning. Mistakes can lead to HMRC issues, visa denials, or banking challenges.

This guide explains how UK entrepreneurs can set up a UAE company efficiently and legally, covering everything from structure choice to visas, banking, and tax compliance.

Step 1: Decide on the Type of UAE Company

UAE company types broadly fall into Free Zone, Mainland, and Offshore:

1. Free Zone Company

• Owned 100% by the entrepreneur
• Focused on international trade, e-commerce, or consultancy

Benefits: Full ownership, simple setup, no local partner required

2. Mainland Company

• Allows trading directly in UAE markets
• Requires a local sponsor (unless certain sectors allow 100% foreign ownership)

Benefits: Access to local clients, ability to bid for government contracts

3. Offshore Company

• Designed for international business
• Cannot trade in UAE directly

Benefits: Strong asset protection, privacy, and international banking

Key Tip: Most UK entrepreneurs start with a Free Zone company for simplicity, then expand to the mainland if needed.

Step 2: Choose the Right Free Zone

Free zones differ based on:

• Industry focus
• Office requirements
• Visa allocation
• Licensing fees

Popular Free Zones for UK entrepreneurs include:

• Dubai Multi Commodities Centre (DMCC): Ideal for trade, commodities, and online businesses
• Dubai Internet City: For IT, SaaS, and e-commerce
• Abu Dhabi Global Market (ADGM): Finance-focused, international reputation
• RAKEZ or Sharjah Media City (Shams): Cost-effective, flexible

Choosing the right free zone is critical because it affects licensing, visas, banking, and ongoing compliance.

Step 3: Select Your Business Activity and License

UAE companies must declare their business activity, which determines the type of license required:

1. Commercial License – For trading and retail

2. Professional License – For consultancy, IT, and services

3. Industrial License – For manufacturing

4. Holding/Investment License – For UAE holding companies

Tip: Ensure your activity matches your UK business and future plans to avoid costly changes later.

Step 4: Decide on Shareholding and Capital

• Free zone companies allow 100% foreign ownership
• Minimum share capital requirements vary; some free zones have no minimum, others require AED 50,000+
• Shareholding documents must be notarized and submitted with company registration

Tip: Keep your shareholding structure simple to reduce complications with visas and banking.

Step 5: Prepare Required Documentation

Setting up a UAE company from the UK requires key documents:

Tip: All documents must be certified and attested for UAE authorities.

Step 6: Register the Company with UAE Authorities

The registration process varies depending on Free Zone or Mainland:

For Free Zones

1. Submit documents online or via Free Zone authority

2. Receive initial approval

3. Sign the lease agreement for office space (physical or flexi-desk)

4. Receive final license and registration certificate

For Mainland

1. Apply with Department of Economic Development (DED)

2. Engage a local service agent or sponsor (if required)

3. Submit incorporation documents

4. Obtain trade license

Tip: Free zone companies are faster and cheaper to set up, often within 2–3 weeks.

Step 7: Open a UAE Bank Account

UAE banking is essential for business operations, international payments, and UAE visa processing. Banks often require:

• Company license and registration certificate
• Shareholder passports
• UAE address proof
• Business plan or financial projections

Popular UAE banks for UK entrepreneurs:

• Emirates NBD
• Mashreq Bank
• ADCB
• Commercial Bank of Dubai

Tip: Using a professional service provider like Evolve Tax can increase success rates in bank approvals.

Step 8: Apply for UAE Residency Visa

Company setup allows visa eligibility for:

• Shareholders
• Directors
• Employees

Visa Options

• Investor/Partner visa – Linked to company ownership
• Employment visa – For company employees or directors
• Golden visa – For entrepreneurs meeting high-income or investment thresholds

Tip: UAE residency offers personal tax advantages and is necessary for banking and long-term business planning.

Step 9: Maintain Compliance and Accounting

UAE companies must comply with:

• Annual license renewals
• Office lease compliance
• Accounting and bookkeeping standards
• VAT registration (if applicable)

Tip: Outsourcing accounting and VAT management ensures compliance and smooth HMRC reporting if you remain UK-resident.

Step 10: Plan Tax and International Compliance

UK entrepreneurs need to consider:

• Corporation tax implications in the UK
• Controlled Foreign Company (CFC) rules
• Permanent Establishment risk
• Residency and personal tax alignment

Using UAE structures legally and efficiently can:

• Reduce UK tax exposure
• Improve cash flow
• Protect profits for reinvestment

Book a cross-border tax planning consultation today

Frequently Asked Questions (FAQs)

1. Can I set up a UAE company without visiting Dubai?

Yes, many Free Zones allow full remote setup with power of attorney.

2. How long does company setup take?

Typically 2–4 weeks for Free Zones; Mainland takes longer.

3. Do I need a local partner in UAE?

Not in Free Zones; Mainland often requires a local sponsor.

4. Can UK residents get UAE residency via company ownership?

Yes, investor and partner visas are linked to ownership.

5. Are UAE companies tax-free?

Corporate tax is 0%–9% depending on profits and sector; personal income tax is 0%.

6. Do I need UAE accounting services if I’m UK-resident?

Yes, for compliance, VAT, and international reporting.

Conclusion: Setting Up a UAE Company from the UK Is Achievable With Proper Planning

For UK entrepreneurs, UAE company setup is more than a tax strategy—it’s a gateway to international growth, residency options, and financial efficiency.

Success requires:

• Choosing the right company type and Free Zone
• Proper documentation and approvals
• UAE bank account and visa setup
• Ongoing compliance and cross-border planning

Evolve Tax provides end-to-end UAE company setup services for UK entrepreneurs, including:

• Company formation
• Residency visa processing
• Banking support
• Accounting and VAT management
• Cross-border tax planning

Book your free UAE company setup consultation today