Company set up & Financing

Company set up

Sound advice on free zone, mainland or offshore models and the choice of suitable legal form (FZE, FZC, LLC)

Choosing the right location and the right legal form is a key component for successfully setting up a company in the United Arab Emirates (UAE). Depending on the business model, industry, customer target group and tax requirements, the requirements and advantages can differ considerably.

As an experienced management consultancy, we support you in decision-making and implementation.

01

FreeZone companies e.g. FZE or FZC)

FreeZones are specially established economic zones that offer international investors numerous advantages. They are primarily aimed at companies that operate outside the UAE or wish to maintain a holding structure in the UAE. Business activities with local customers within the Emirates are generally not permitted unless a special permit or cooperation with a mainland partner is obtained.

Advantages and special features:

  • Attractive tax environment: no corporate income tax (if operating outside the UAE), no withholding tax, no income tax for individuals resident in the UAE
  • Reduced administrative burden: in many cases no accounting obligation and no data exchange with foreign tax authorities
  • Fast founding: usually possible within 3 to 7 days, depending on the FreeZone
  • No obligation to be physically present if no operational activity takes place on site
  • Significant differences depending on the FreeZone in terms of costs, accounting obligations and industry focus

Regulated industries:

For companies in the financial, crypto or fiduciary sectors, founding is only possible in specially approved, regulated free zones. These are subject to extended requirements for proof of capital, compliance and reporting.

Legal forms and German equivalents:

  • FZE (Free Zone Establishment): One-person company, comparable to a one-man limited liability company
  • FZC (Free Zone Company): Multi-person company, corresponds to a limited liability company with several shareholders

Set-up costs (estimate): EUR 5,000 – 10,000 (depending on zone and scope of services)

02

Mainland company (e.g. LLC or Sole Establishment)

Anyone wishing to do business with local customers, companies or government institutions within the United Arab Emirates must establish a so-called mainland company. This is anchored in the regular legal system of the Emirates and is subject to the commercial and tax regulations applicable there.

Advantages and special features:

  • Access to the local market without restrictions
  • Better reputation with authorities, banks and business partners within the UAE
  • Unlimited visa entitlement for holders and employees
  • Possibility of renting business premises outside the FreeZones
  • Since June 2023, Mainland companies have been subject to corporation tax of 9% on profits

Legal forms and German equivalents:

  • LLC (Limited Liability Company): Corporation, corresponds to a German GmbH in terms of structure and form of liability
  • Sole establishment: Sole proprietorship, comparable to a German sole trader or a GbR (with several partners)

→ In certain cases, a local service agent is required, who acts as a formal point of contact but does not exercise operational control

Formation costs (estimate): 7,000 – 12,000 EUR incl. license fees and regulatory costs

Annual license costs: approx. 3,000 – 4,000 EUR

03

Offshore companies

For purely international holding structures or passive asset management, founding is an offshore company. These are located outside of FreeZones or the mainland and may be not be operationally active within the UAE. Offshore companies are primarily designed for discretion and tax optimization.

Areas of application:

  • Asset protection
  • International investments
  • Holding companies without a local presence

Note: Opening a bank account in the UAE can be significantly more difficult for offshore companies – this must be taken into account in the structural planning.

  • Licensing & approval
    Application for suitable licenses (trade, service, industry), support through all administrative steps.

Application for suitable licenses (trade, services, industry), support through all administrative steps

Correct licensing is an essential step when setting up a company in the United Arab Emirates – regardless of whether it is a free zone, mainland or offshore structure. Depending on the business model, industry and location, different permits and official approvals must be obtained.

As an experienced partner, we support you not only in choosing the right type of license, but also in all administrative processes – right through to issuing your residence visa.

Dr. jur. Rolf Landskron

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Your contact for founding and financing

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License types at a glance:

DBC analyzes your business model together with you and advises you on the selection of the appropriate license form – including industry-specific additional approvals or regulatory requirements.

Company set up & Financing Dubai Business Consulting

Trade license

For companies in the import, export, wholesale or retail sector – also relevant for e-commerce and vehicle rental companies (the latter are considered trading companies in Dubai).

Service license

For consulting, creative, medical or craft activities, such as beauty salons, IT service providers or legal advice.

Industrial and production license

For companies that operate production facilities, manufacturing plants or industrial infrastructure.

Arrange your free initial consultation now

and find out how DBC can support you.

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Further DBC services for Company set up

A Company set up in Dubai is more than just a formality. It is a comprehensive project that requires precise planning, a structured approach and experienced partners. DBC is at your side as a reliable partner, from the initial budget outline to the complete commissioning of your company.

Office & bank account

01

Support with renting, equipment, opening accounts with local and international banks

A functioning business needs two elementary prerequisites: a reliable bank account and a representative officethat meets the requirements of the local authorities and your business activities.

Bank account in Dubai: Access to the financial system

A local bank account is not only an advantage in Dubai, it is often mandatory. You need an account with a local or international bank for both business activities and private projects, such as the purchase of real estate.

Dubai offers a highly modern and internationally networked banking system. In addition to global financial institutions such as HSBC and Citibank are important regional banks such as Emirates NBD, Mashreq, ADCB or RAKBANK are represented in the country. Many of these banks have established special programs for entrepreneurs, the self-employed and foreign investors.

Requirements for opening an account:

  • Valid passport
  • Residence visa
  • Emirates ID (after visa receipt)
  • Proof of address (e.g. by rental agreement or utility bill)
  • Company documents (for business accounts)
  • Letter of recommendation from the bank or audited financial statements (optional)

Through established partners such as the IFZA (International Free Zone Authority) the process can be significantly simplified: By cooperating with local banks, applicants benefit from optimized processes, direct contact and clearly defined requirements.

DBC provides you with comprehensive advice on choosing the right bank – tailored to your business requirements and planned financial activities. We support you with the complete documentation and accompany you through every step of the opening process, also in the context of start-ups or visa issuance via IFZA.

02

Office space: location, equipment & fulfillment of requirements

Many licenses in Dubai, especially for Mainland companies, require the rental of a physical office. FreeZone companies also often require at least a virtual or flexi-desk solution to fulfill their registration obligations.

Whether an individual office, shared office, virtual office or a fully equipped workplace in a business center: The requirements for the location, equipment and official recognition differ depending on the license type, industry and type of company.

DBC supports you with the:

  • Selection of suitable office types (flexi-desk, executive office, business center, virtual office)
  • Location selection based on license, budget and access to target markets
  • Verification of compliance with the requirements of your licensing authority
  • Contract review, rental negotiations and communication with landlords
  • Organization of office services (e.g. reception, IT, furniture, telephone connection)

We work closely with various business centers and real estate providers to find the right solution for you, whether as a prestigious headquarters, temporary workspace or expansion for growing teams.

For you this means

  • Income is generally only taxed in one of the two countries
  • Company profits, dividends, interest and royalty payments are clearly regulated and mostly preferential
  • The agreement rules reliably protect you from double loads

FAQ

Frequently asked questions

Which sectors offer particularly good prospects in Dubai?

Dubai is increasingly developing into a global hub for future-oriented business areas. The following sectors currently offer particularly attractive development opportunities:

  • Media & Digitization
  • Technology & Start-ups
  • Creative Industries & Design
  • Gastronomy & hotel industry
  • Event Management & MICE (Meetings, Incentives, Conferences, Exhibitions)

The business-friendly infrastructure, targeted government subsidies and international orientation make Dubai a promising location for innovative business models.

Is it possible to relocate an existing company from Germany to Dubai?

A direct relocation of an existing German corporation to Dubai is not provided for by law. Instead, entry into the market takes place via the Formation of a new legal entity in Dubai. This step should be planned carefully, especially taking into account tax and legal implications in the home and destination countries.

We recommend that you consult specialized tax advisors specializing in international tax law and, if necessary, an auditor at an early stage.

How is the tax situation in Dubai regulated?

Dubai is still considered a very attractive tax location. The most important regulations at a glance:

  • No income tax on personal income
  • No capital gains tax (e.g. on dividends or interest)
  • Corporate income tax of 9% – since June 2023 for profits above a certain threshold (currently approx. AED 375,000 per year)
  • VAT of only 5 %with specific exceptions depending on the sector and business activity
Is residency in Dubai a prerequisite for setting up a company?

Residency in Dubai is not mandatory for setting up a company is not mandatory. Many entrepreneurs operate successfully from abroad, particularly via free zone structures.

However, a comprehensible economic presence in the Emirates is essential, for example by renting an office and appointing a local managing director or director. This can be very important for the opening a bank account, applying for a license and obtaining a visa can be of decisive importance.

What is the extended limited tax liability (§ 2 AStG)?

This also applies after moving awayif you still have still have significant economic interests in Germany – e.g. through significant shareholdings, real estate or management activities.

Is there a DTA with Austria and Switzerland?

Both countries have an active DTA with the UAE:

  • Income is regularly taxed in only one country
  • Avoidance of double taxation for dividends, interest, licenses, etc.
  • In Switzerland: Note the progression proviso

Financing

Real estate financing

Procurement & structuring of financing for off-plan and existing properties via local and international lenders

Financing a property in the United Arab Emirates is a particular challenge, especially for foreign investors, expats or non-residents. Different equity requirements, country-specific lending limits and the complexity of regulatory requirements demand sound specialist knowledge and a strategic approach.

DBC offers you comprehensive support in the selection, structuring and implementation of financing – both for existing properties and for off-plan projects (properties under construction or in planning). Thanks to our established network of local and international banks, mortgage lenders and specialized financing partners, we ensure that you have access to the best conditions and a solution tailored to your goals.

As an experienced management consultancy, we support you in decision-making and implementation.

Cooperation partner

Cooperation with First Advisory Group (Liechtenstein), banks & family offices.

The structured financing of real estate investments, whether for off-plan projects or existing properties, is a key element of a successful capital investment in the United Arab Emirates. In addition to traditional mortgage loans via local banks, alternative sources of financing such as family offices and private structuring models can also offer decisive advantages.

In this context, DBC works together with a selected network of financing partners, including the renowned First Advisory Groupan independent financial services company headquartered in Vaduz (Liechtenstein) with branches in Zurich, Geneva, Hong Kong and Singapore. The group of companies has decades of experience in asset structuring, international asset management and cross-generational wealth protection

01

Joint service portfolio

Cooperation with international banksOur network gives you access to tailor-made financing offers from leading local banks in the UAE as well as from major international banks with expertise in cross-border real estate investments.

  • Structured debt financing solutions via First AdvisoryIn close cooperation with the First Advisory Group, we develop financing models that are tailored to your individual financial situation, tax conditions and your personal or business objectives.
  • Integration of family officesFor wealthy private individuals, investors or family businesses, financing can also be provided by a family office. In these cases, we offer discreet, professionally structured solutions that enable long-term planning as well as tax and legally optimized implementation of the investment strategy.
  • Sharia-compliant financing adviceIn cooperation with specialized partners, we also advise you on Islamic financing models that comply with the principles of Sharia law.
  • Accompanied processing & documentationWe coordinate the entire financing process, from selecting suitable lenders to checking the loan-to-value ratio and final contract structuring, including coordination with lawyers, banks, trustees and tax advisors.

02

Contract review & legal structuring

Through our experienced lawyers and specialized partner law firms, we review all relevant contractual documents, from loan and collateral agreements to trust agreements and shareholder agreements. In doing so, we focus on the transparency of contractual terms and conditions as well as ensuring legal conformity in accordance with local and international standards.

03

Collateral structure & risk management

Depending on the project and investment model, we design an individually tailored collateral structure. This can include traditional mortgages on real estate as well as equity interests in companies, guarantees or fiduciary solutions. The risk allocation between borrower and lender is actively shaped in order to ensure a balance of interests and avoid unnecessary burdens.

04

Holding & corporate structuring

A central element of long-term asset planning is the intelligent linking of financing and corporate structure. In many cases, the integration of an international holding company, e.g. in Europe, can help to separate operational risks, take advantage of tax benefits or secure succession planning. Together with you and our partners, DBC develops legally compliant structures that meet both the requirements of your bank and your personal hedging needs.

05

Tax structuring & international optimization

Even though Dubai offers many advantages with its attractive tax system, international investors must always analyze the overall structure, taking into account the country of residence and relevant double taxation agreements. Our tax consultants and lawyers for international tax law ensure that your investment is structured in a tax-efficient manner. New FTA (Federal Tax Authority) regulations and requirements in connection with corporation tax or VAT are also taken into account.

FAQ

Frequently asked questions

What financing options are available for real estate or corporate projects in Dubai?

Both local and international sources of financing are available in Dubai. In addition to traditional bank loans, private lenders, family offices or alternative financing models (e.g. Sharia-compliant solutions) also offer options for investors, entrepreneurs and expats.

  • Media & Digitization
  • Technology & Start-ups
  • Creative Industries & Design
  • Gastronomy & hotel industry
  • Event Management & MICE (Meetings, Incentives, Conferences, Exhibitions)

The business-friendly infrastructure, targeted government subsidies and international orientation make Dubai a promising location for innovative business models.

Who can obtain financing in Dubai - including non-residents?

Yes, non-residents and persons residing outside the UAE can also obtain financing. The requirements vary depending on the bank and credit model, particularly with regard to proof of equity, credit checks and collateral.

We recommend that you consult specialized tax advisors specializing in international tax law and, if necessary, an auditor at an early stage.

How high is the equity requirement for financing?

In addition to interest rates and repayment models, collateral, contractual terms and tax aspects are particularly important. Professional structuring takes into account holding models, currency risks, tax efficiency and questions of property security.

What do I need to consider when structuring financing?

Residency in Dubai is not mandatory for setting up a company is not mandatory. Many entrepreneurs operate successfully from abroad, particularly via free zone structures.

However, a comprehensible economic presence in the Emirates is essential, for example by renting an office and appointing a local managing director or director. This can be very important for the opening a bank account, applying for a license and obtaining a visa can be of decisive importance.

What is Sharia-compliant financing and when does it make sense?

Sharia-compliant financing is based on Islamic principles that prohibit interest (riba) and instead rely on participation or rental models. Such models are particularly relevant for investors who prefer such solutions for religious reasons, but also for expats seeking access to regional financing models with attractive conditions.

Which partners does DBC work with in the area of financing?

For international and complex financing projects, we work with the renowned First Advisory Group and leading banks in the UAE and Europe. We also have access to selected family offices and financing specialists who offer customized structures – discreet, efficient and individually tailored to your investment profile.

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