Strategic FAQ
What are the advantages of setting up a business in Dubai for a European resident?
Setting up a business in Dubai offers the advantage of a highly favorable tax regime, strategic access to Africa, Asia, and Europe, and a stable economic environment.
It is also one of the few places in the world where it is possible to establish and manage a 100% foreign-owned company with zero personal income tax.
How will corporate taxation work in the UAE in 2025?
Corporate taxation in Dubai remains low: 0% for most Free Zones.
Since 2023, a 9% corporate tax has been applied to entities with taxable income exceeding AED 375,000, primarily in the Mainland.
Dividends and capital gains remain tax-exempt.
Which is the best free zone for e-commerce in Dubai?
Free trade zones like IFZA, Meydan Freezone, and DSOA are particularly well-suited to e-commerce.
They offer streamlined procedures, licenses tailored to digital commerce, and low-cost virtual offices, making them ideal for launching an online business from abroad.
Do you have to be a resident of Dubai to set up a company there?
No, residency is not mandatory to set up a company. However, it is recommended if you wish to fully benefit from banking advantages, local tax benefits, and obtain an investor visa.
You can also manage your business remotely in most Freezones.
How long does it take to set up a company in Dubai?
Most Freezone companies can be created within 3 to 5 business days after all documents have been submitted.
The speed also depends on the nature of the business, the supporting documents provided, and the experience of the support provider, such as EXILLIUM.
What is the difference between an investor visa and an employee visa in the Emirates?
The investor visa is granted to business founders or shareholders. It provides greater autonomy, particularly regarding banking and family sponsorship.
The employee visa is tied to an employment contract and does not grant the same rights regarding company formation or sponsorship.
Is it possible to open a bank account in Dubai without residency?
It’s possible for some business accounts, but more difficult. Local banks prefer residents for compliance reasons.
EXILLIUM offers tailored solutions based on your profile and flexible partner banks.
What is the minimum share capital required to create a company?
In most Freezones, there is no required share capital. However, some zones require a symbolic statutory capital (1,000 AED). This capital does not need to be deposited into an account at the time of incorporation.
Can I set up a company in Dubai if I am still employed in France?
Yes, many French speakers set up their businesses in Dubai while still employed in France, often to prepare for a transition or test a business idea.
However, it’s essential to strictly adhere to the terms of your French employment contract (non-compete, confidentiality).
What are the accounting obligations of a company in the Freezone?
Companies in the Free Zone must maintain simplified accounting records, produce an annual balance sheet, and sometimes have it audited.
EXILLIUM offers accounting solutions tailored to the requirements of each jurisdiction.
Is it possible to have multiple business activities under the same company in Dubai?
Yes, some Freezones allow multiple business or service activities under a single license.
The activities must be compatible and validated when the license application is submitted.
What is the impact of VAT in Dubai on small businesses?
The VAT rate in the UAE is 5%. Businesses with a turnover exceeding AED 375,000 must register for VAT.
EXILLIUM assists you with monthly tax filings and tax compliance.
Is Dubai a blacklisted jurisdiction?
No. Dubai is not on the EU or OECD blacklist. Local authorities have implemented transparency mechanisms (UBO, ESR, AML).
Complying with these obligations is crucial to ensuring the long-term viability of your company.
Can I hire local employees with a Freezone company?
Yes, but employees must obtain their visas through the relevant Freezone. The quota will depend on your license type and the number of offices leased.
Can a company in Dubai be used to invoice clients in France?
Yes, but it is recommended to check the tax laws in your country of residence to avoid double taxation.
EXILLIUM can guide you on the legal structuring of your cash flows.
What type of visa can I obtain with an offshore company?
Offshore companies do not allow you to obtain a residence visa. For that, you must create a company in the Freezone or Mainland.
Can a Freezone company sign contracts with clients in the Emirates?
It can sign contracts with local businesses, but cannot operate physically without authorization (office, Mainland license). There are mechanisms to legally circumvent this.
How to obtain an Emirati VAT number?
You need to register your business with the Federal Tax Authority.
EXILLIUM handles this formality and helps you determine if you are above the required threshold.
How to obtain a business license in Dubai?
You must choose a jurisdiction (Freezone or Mainland), select the type of license (commercial, services, industrial), and then submit an application to the relevant authority.
EXILLIUM will guide you through each step.
What risks should be avoided when setting up a business in Dubai?
Choosing the wrong location, incorrectly declaring your business activity, or ignoring local tax regulations can jeopardize your business.
EXILLIUM helps you avoid these pitfalls right from the analysis phase.
Can a company in Dubai be 100% owned by a foreigner?
Yes, particularly in the Freezones. Since 2021, even some Mainland companies can now be wholly owned by foreigners without a local sponsor.
What are the processing times for obtaining an investor visa?
On average, it takes 7 to 14 working days after the company is established. This includes the medical examination, the Emirates ID, and the visa affixed to the passport.
Can a Freezone company be converted into a Mainland company?
It’s not automatic. The old company must be dissolved and a new one created in mainland Canada. A tax audit may be required.
EXILLIUM can advise you on this transition.
How to choose the best Freezone based on your activity?
Choosing a Free Zone depends on several criteria: the type of activity permitted, the number of visas required, geographical location, costs, and reputation.
For example, the DMCC is ideal for commodity-related activities, while the IFZA is popular with digital startups.
EXILLIUM helps you compare zones based on your objectives.
Is it possible to open a company as a freelancer in Dubai?
Yes, several free zones like RAKEZ, Shams, and GoFreelance offer licenses specifically designed for freelancers.
These licenses allow you to work legally in Dubai without setting up a full business structure, while still providing a visa and a business bank account.
How long is a business license valid in Dubai?
The license is generally valid for one year and renewable annually.
Failure to renew will result in penalties and may lead to the company’s deregistration.
EXILLIUM automatically alerts you to deadlines to ensure your compliance.
How to manage a company's accounting in Dubai?
Although accounting practices are more flexible than in Europe, annual reporting is required, particularly for companies subject to VAT or corporation tax.
EXILLIUM offers accounting support in French that complies with local and international standards.
Is it legal to do dropshipping from Dubai?
Yes, with a Freezone e-commerce license, it is perfectly possible to operate an international dropshipping business.
It is important to clearly state this activity in the license application to avoid any future disputes.
Is Dubai suitable for cryptocurrency-related activities?
Yes. Since 2022, Dubai has adopted a regulatory framework favorable to crypto-assets.
Specific licenses are issued by VARA, the crypto regulatory authority.
EXILLIUM guides you through obtaining these innovative and promising licenses.
What is the international reputation of a company based in Dubai?
Dubai is perceived as a dynamic, modern, and stable economic hub. Emirati companies inspire confidence internationally, particularly in the Gulf countries, Africa, and Asia.
EXILLIUM optimizes your brand image by integrating local and international norms.
Can a Dubai company be used to raise funds?
Yes, especially if you are targeting investors in the MENA or SEA regions.
However, it is recommended to structure your holding company legally on an international basis (for example: parent company in Dubai, subsidiary in Europe).
What are the rights and obligations of a shareholder in a company in Dubai?
Shareholder rights are defined in the Memorandum of Association (MOA). Shareholders may receive dividends, participate in strategic decisions, and transfer their shares, subject to certain conditions.
EXILLIUM helps you secure these rights from the outset.
Are there any sector-specific restrictions for companies in Dubai?
Yes. Certain activities, such as telecommunications, media, or medical services, require specific authorizations or are only open to certain types of licenses.
EXILLIUM guides you toward the legal options compatible with your project.
Can I live abroad and manage my company in Dubai?
Yes, as long as you comply with legal obligations (license renewal, tax returns, minimum presence requirements if you have a resident visa).
Many entrepreneurs live in France or elsewhere and manage their businesses 100% remotely using EXILLIUM.
What are the advantages of a virtual office in Dubai?
It allows you to have a legal address to register your company without renting physical space. It’s an economical solution, especially for service-based or online businesses.
Some free trade zones include this service in their annual packages.
Is it mandatory to have a local accountant in Dubai?
No, but it is highly recommended. In the event of a tax or banking audit, clear and compliant accounting is essential.
EXILLIUM offers French-speaking accounting services aligned with UAE standards.
Can I repatriate my company's profits to France?
Yes, profits can be transferred via international banking channels.
However, you must take into account the tax laws in your country of residence.
EXILLIUM connects you with specialized tax advisors.
Is a criminal record certificate required to start a company?
No, in most cases. However, some Free Zones or banks may require a clean criminal record check, particularly for sensitive activities.
EXILLIUM will keep you informed of the latest local requirements.
When is the best time to set up a company in Dubai?
The sooner the better: you avoid the impact of future regulatory or cost increases. Many entrepreneurs choose January to align their accounting with the fiscal year, or September to align with the business calendar in the Emirates.
How long can you stay in the Emirates with an investor visa?
You can reside there full-time, or remain outside the country provided you return at least once every six months.
EXILLIUM manages the validity of your visa to prevent automatic expiration.
Is it possible to obtain Emirati citizenship through a company?
No. The criteria for becoming an Emirati citizen are strict. However, the long-term residency visa (10 years) or the Golden Visa are available to entrepreneurs who meet certain income, innovation, or investment criteria.
How do I change my Freezone if my business evolves?
This requires closing the company in its original zone and establishing it in another Freezone. Internal transfers are not possible.
EXILLIUM assists you in minimizing migration costs and preserving your assets.
What type of health insurance is needed for a resident?
Health insurance is mandatory for all residents. The choice depends on your visa type (investor, employee, family).
EXILLIUM offers packages tailored to the budget and needs of French-speaking expatriates.
Can you sponsor your family with a company visa?
Yes, an investor visa allows you to sponsor your spouse, children, and sometimes parents. You will need to prove your income, have a rental agreement in the UAE, and have health insurance.
EXILLIUM handles the entire process from start to finish.
What language should be used in official documents?
English is the official language for contracts and registration documents in Dubai. An Arabic translation may be required for certain notarial or administrative acts.
Are there any restrictions for non-Muslims in Dubai?
No, Dubai is an open, cosmopolitan, and tolerant city. The laws respect the official religion, but freedom to do business, consume, or dress is very broad within a respectful and professional framework.
Can a company in Dubai recruit expatriates?
Yes, companies can sponsor expatriate employees with a work visa.
Quotas related to office size and type of activity must be respected, and a compliant contract must be filed with the Ministry of Labor.
What is EXILLIUM's role in business creation in Dubai?
EXILLIUM is a specialized French-speaking firm that provides comprehensive support throughout the entire process: legal strategy, choice of location, company formation, bank account opening, visas, taxation, and growth.
You will benefit from a single point of contact and personalized professional guidance.
