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UAE company formation involves choosing between a mainland LLC (full market access, 9% CIT) or one of 47+ free zones (potential QFZP 0% tax on qualifying income).
By Dr. Anil Kumar Gupta, Chairman, Connect Ventures Group ยท Updated April 2026 ยท 18 min read

The UAE is India's 3rd largest trading partner, home to more than 3.5 million Indians, and offers Golden Visa residency for 10 years. Since June 2023, UAE levies 9% corporate tax above AED 375,000 ( UAE government portal ), ending the zero-tax era. Free zone companies meeting QFZP conditions can maintain 0%. With 7 emirates, 47+ free zones and detailed QFZP rules, the structure you choose decides your tax bill. Comply Globally has helped 1,080+ Indian entrepreneurs across 47+ countries.
Our UAE Services
Mainland LLC, free zone setup (DMCC, JAFZA, DIFC, ADGM, RAKEZ), QFZP advisory, Golden Visa, FEMA compliance and EXIM, across all 7 emirates.
Register a mainland LLC via DET (Department of Economy and Tourism) in Dubai or equivalent authority in other emirates. 100% foreign ownership since 2021 reforms (most activities). Full UAE market access: sell directly to any customer, including government. Trade licence types: commercial, professional, industrial. Requires physical office lease. Setup cost: AED 18,500-40,000. Timeline: usually 2-4 weeks. 9% CIT applies above AED 375,000. UBO registration mandatory within 30 days. Source: DET Dubai.
We set up companies across 15+ major free zones. Budget options: RAKEZ (AED 5,000+), IFZA (AED 12,000+), SHAMS (AED 5,750+). Premium: DMCC (AED 18,000-50,000+), JAFZA (AED 15,000-40,000+). Financial centres: DIFC (AED 40,000-100,000+), ADGM (AED 15,000-50,000+). Each free zone has its own regulator, licence structure, visa quotas, and QFZP eligibility. We help you select the right zone based on your activity, budget, visa needs, and tax objectives. Bharat Mart (JAFZA) opened 2026 for Indian SMEs. Source: Free Zone authorities.
Critical service: 9% CIT applies above AED 375,000. Free zone companies can keep 0% only as a QFZP, which requires: adequate UAE substance, qualifying income from eligible activities, audited financials, de minimis non-qualifying revenue (lower of 5% or AED 5M), and transfer pricing compliance. We classify your income, assess QFZP eligibility BEFORE incorporation, prepare CT returns, and track the conditions every year. Failure = 9% on ALL income + 4-year cooling-off. Small business relief available for revenue under AED 3M until Dec 2026. India-UAE DTAA: dividends 10%, interest 5% (bank loans) or 12.5%, royalties 10% (PwC treaty rate table). Source: FTA, Ministerial Decision 229/2025.
Dual-side management: UAE formation AND Indian FEMA compliance. Form ODI filing with AD bank, APR by 31 December, FLA to RBI by 15 July, and FTC under Section 90. With 9% UAE CIT, FTC now has real value (unlike BVI/Cayman at 0%). India-UAE CEPA provides preferential trade. India is one of the UAE's largest trade partners (USD 85B+ bilateral trade 2024-25), and more than 3.5 million Indians live in the UAE. Source: RBI, India-UAE CEPA.
10-year Golden Visa: AED 2M+ real estate (now mortgage-eligible if equity โฅ AED 1M), investors, entrepreneurs, specialised talent. 5-year Green Visa: AED 500K+ investment, freelancers, skilled workers. 2-year Investor Visa: AED 750K+ capital. Employee visas: 2-3 years, employer-sponsored. Health insurance mandatory since Jan 2025 for all Emirates ID holders. We handle visa applications, Emirates ID, medical fitness, and renewals across all emirates. Source: ICP, GDRFA.
UAE is India's 3rd largest trade partner. We handle import/export licensing, UAE customs (FCA), IOR/EOR services, 3PL warehousing, and Bharat Mart JAFZA logistics. India-UAE CEPA (in force since May 2022) eliminates or reduces tariffs on 80%+ of traded goods. JAFZA sits next to Jebel Ali Port, one of the largest container ports in the region. We facilitate India-UAE-Africa triangular trade routes. Source: Dubai Customs, India-UAE CEPA.
These are not marketing claims. They are measurable operational standards
tracked and verified across 1,080+ client engagements worldwide.
Clients Served
Countries
Trustpilot Rating
Avg Response
Compliance Record
We reply within 4 hours. Free zone setup: usually 3-7 days. Mainland LLC: usually 2-4 weeks. QFZP assessment: usually within 48 hours.
RAKEZ setup in 3 business daysEvery UAE structure is assessed for QFZP eligibility before incorporation, never after. Zero compliance failures.
QFZP checked before incorporation ยท 4.7โ on TrustpilotOne contact for DET + free zone + FTA + Golden Visa + Indian FEMA. No juggling 4 separate agents.
Single Point of Management ยท 47+ countriesWe compare 15+ free zones on cost, visa quota and QFZP fit for your activity. Prices in rupees, government fees at cost.
Initially I was thinking their brand promises were marketing jargon, but after taking their services, I can say they are better than excellent in Speed of Action, Cost Competitiveness, and Competence.
Deepak Nirwan
UAE
Free Zone Comparison
47+ free zones across 7 emirates. Here are the 8 most relevant for Indian entrepreneurs, compared across 8 factors.
| Free Zone | Emirate | Best For | Setup Cost (AED) | Annual Renewal | Visas | QFZP | Banking |
|---|---|---|---|---|---|---|---|
| DMCC | Dubai | Commodities, crypto, fintech | 18,000 โ 50,000+ | 18,000 โ 30,000 | 1 โ 6 | Yes โ | Good |
| JAFZA | Dubai | Trading, logistics, manufacturing | 15,000 โ 40,000 | 12,000 โ 30,000 | 2 โ 8 | Yes โ | Good |
| DIFC | Dubai | Financial services, legal | 40,000 โ 100,000+ | 30,000 โ 60,000+ | 1 โ 6 | Yes โ | Excellent |
| ADGM | Abu Dhabi | Fintech, family offices, funds | 15,000 โ 50,000+ | 10,000 โ 30,000 | 1 โ 6 | Yes โ | Good |
| IFZA | Dubai | Startups, consulting, fast setup | 12,000 โ 16,000 | 10,000 โ 14,000 | 1 โ 4 | Yes โ | Moderate |
| RAKEZ | RAK | Budget startups, freelancers | 5,000 โ 14,000 | 5,000 โ 12,000 | 1 โ 3 | Yes โ | Moderate |
| Dubai South | Dubai | E-commerce, aviation, logistics | 12,000 โ 25,000 | 10,000 โ 20,000 | 1 โ 4 | Yes โ | Moderate |
| SAIF Zone | Sharjah | Manufacturing, trading | 8,000 โ 20,000 | 8,000 โ 15,000 | 1 โ 6 | Yes โ | Moderate |
Tax Framework
UAE levies 9% corporate tax on taxable income above AED 375,000 since June 2023
According to the FTA (Federal Tax Authority), UAE corporate tax applies at 0% on taxable income up to AED 375,000 and 9% on income above that threshold. Free zone companies meeting all QFZP conditions pay 0% on qualifying income. Small businesses with revenue under AED 3 million can elect small business relief (nil taxable income) until 31 December 2026. UAE has 0% domestic withholding tax on dividends, interest, and royalties. VAT is 5% (AED 375K threshold for mandatory registration). India-UAE DTAA: dividends 10%, interest 10-12.5%, royalties 10%. No personal income tax. Golden Visa holders with mainland/free zone companies can structure tax-efficient residency.
Sources: FTA ยท India-UAE DTAA ยท Ministerial Decision 229/2025 ยท Updated April 2026
| Factor | ๐ฆ๐ชUAE (Mainland) | ๐ฆ๐ชUAE (QFZP FZ) | ๐ธ๐ฌSingapore | ๐ฌ๐งUK | ๐ญ๐ฐHong Kong |
|---|---|---|---|---|---|
CIT | 9% (>AED 375K) | 0% qualifying | 17% | 19โ25% | 8.25 / 16.5% |
Dividend WHT | 0% | 0% | 0% | 0% | 0% |
VAT / GST | 5% | 5% | 9% | 20% | 0% |
DTAA Div WHT | 10% | 10% | 10โ15% | 10% | 5% |
Personal Tax | 0% | 0% | 0โ22% | 20โ45% | 2โ17% |
Golden Visa | 10 years | 10 years | No | No (closed) | No |
Indian Community | 3.5M+ | 3.5M+ | 400K+ | 1.8M+ | 60K+ |
Free Compliance Calendar
UAE compliance involves FTA corporate tax, VAT, economic substance, free zone renewal, UBO registration, AND Indian FEMA/RBI deadlines. We'll map every one.
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Client reviews
Short extracts from verified reviews. Read all 42 reviews.
โExcellent service and professional guidance throughout the Entry UAE process.โ
โWe had an excellent experience with company formation in Singapore. The team guided us in each and every step.โ
โI had a very complex VAT issue in the UK, but one detailed consultation call cleared each of the doubts.โ
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UAE Business Setup 10 Expert Answers for Indian Entrepreneurs
No. Since June 2023, UAE levies 9% corporate tax on taxable income above AED 375,000 (~USD 102K). The first AED 375,000 remains at 0%. Free zone companies meeting all Qualifying Free Zone Person (QFZP) conditions can keep 0% on qualifying income, but this is NOT automatic and requires strict compliance. Small businesses with revenue under AED 3M can elect small business relief (nil taxable income) until 31 December 2026. There is still 0% personal income tax, making UAE attractive for individual residents. Source: FTA.
QFZP (Qualifying Free Zone Person) is a free zone entity meeting all these conditions simultaneously: (1) registered in a qualifying free zone (Cabinet-designated; includes DMCC, JAFZA, DIFC, ADGM, IFZA, RAKEZ, etc.); (2) adequate substance in UAE (employees, premises, expenditure); (3) earns qualifying income from eligible activities; (4) non-qualifying revenue below the de minimis threshold (lower of 5% of total revenue or AED 5 million); (5) audited financial statements; (6) transfer pricing compliance. Loss of QFZP status results in 9% on ALL income retroactively plus a 4-year cooling-off period before you can reapply. Pre-incorporation QFZP assessment is essential. Source: FTA, Ministerial Decision 229/2025.
Choose MAINLAND if: you sell products or services directly to UAE customers (B2C or B2B within UAE), you need government contracts, or you want unrestricted market access across all 7 emirates. Mainland companies pay 9% CIT above AED 375K. 100% foreign ownership since 2021 for most activities. Choose FREE ZONE if: you trade internationally (export/re-export), want potential QFZP 0% tax on qualifying income, need lower setup costs, or want a specialised ecosystem (DMCC for commodities, JAFZA for logistics, DIFC for finance). Free zone companies cannot directly sell to mainland UAE customers without a local agent or dual licence. Comply Globally assesses your business model and recommends a structure. Source: DET, Free Zone authorities.
Depends on your activity: JAFZA for trading, logistics, manufacturing; Bharat Mart (2.7M sqft, opened 2026) is purpose-built for Indian SMEs. DMCC for commodities, precious metals, crypto, fintech. IFZA/RAKEZ for budget-conscious startups and consulting (AED 5,000-14,000). DIFC for financial services, legal, insurance (English common law courts). ADGM for fintech, family offices, asset management. Dubai South for e-commerce, aviation. Dubai Internet City for tech/IT companies. Key factors: your specific business activity, budget (costs range from AED 5,000 to AED 100,000+), required visa allocation, QFZP eligibility for your activity type, and banking track record of the zone. Source: Free Zone authorities.
Yes. The India-UAE DTAA caps withholding on dividends at 10%, interest at 5% (bank loans) or 12.5%, and royalties at 10%. The India-UAE Comprehensive Economic Partnership Agreement (CEPA), in force since May 2022, also removes or cuts tariffs on 80%+ of traded goods. Now that the UAE charges 9% CIT, the Foreign Tax Credit under Section 90 is worth something: an Indian company can set the UAE tax paid against its Indian tax on the same income. In BVI or Cayman there is no tax to credit. India-UAE bilateral trade exceeded USD 85 billion in FY2024-25. Source: CBDT, India-UAE CEPA.
Yes. The UAE Golden Visa provides 10-year renewable residency. Indian entrepreneurs can qualify through: (1) Real estate investment of AED 2M+ (since 2024, mortgage-eligible if equity portion meets AED 1M+ for 10-year visa); (2) Investor route: AED 2M+ public investment or approved fund; (3) Entrepreneur route: innovative business with minimum capital requirements; (4) Specialised talent: scientists, doctors, engineers, creatives. The Green Visa (5 years) requires AED 500K+ investment. Standard Investor Visa (2 years) requires AED 750K+ capital. All visa holders must have health insurance (mandatory since January 2025) and Emirates ID. Source: ICP, GDRFA.
Mainland LLC (Dubai): AED 18,500-40,000 setup + physical office lease. Free zone: ranges dramatically RAKEZ from AED 5,000; IFZA from AED 12,000; DMCC from AED 18,000; JAFZA from AED 15,000; DIFC from AED 40,000; ADGM from AED 15,000. Add per-visa costs: AED 3,000-5,000 each (includes Emirates ID, medical, stamp). Health insurance: AED 500-3,000/year per person. Annual renewal: typically 80-90% of initial setup cost. Budget additional 30-40% above base licence cost for a realistic total. Comply Globally's UAE packages start from โน75,000* (RAKEZ) to โน2,50,000*+ (DIFC). Source: DET, Free Zone authorities.
Under RBI's Master Direction on ODI, file Form ODI with your Authorised Dealer bank. Automatic route applies within 400% of net worth. Annual compliance: APR by 31 December, FLA to RBI by 15 July, Schedule FA in Indian tax return. Key advantage vs BVI/Cayman: the India-UAE DTAA exists (unlike TIEA-only jurisdictions), and with 9% UAE CIT, FTC under Section 90 now has real value. India-UAE bilateral trade is USD 85B+, and more than 3.5 million Indians live in the UAE. Source: RBI.
Losing QFZP status is expensive. If you fail to meet any QFZP condition in a given year: (1) ALL income for that year is taxed at 9%, not just the non-qualifying portion; (2) a 4-year cooling-off period applies before you can re-qualify as QFZP; (3) during the cooling-off, you pay 9% on all income regardless of activity type. Common triggers for losing QFZP: non-qualifying revenue exceeding the de minimis threshold (5% of total or AED 5M), insufficient substance, missing audited financial statements, or transfer pricing non-compliance. Pre-incorporation QFZP assessment and ongoing monitoring are essential. Source: FTA, Article 18 CT Law.
The UAE is complex 7 emirates, 47+ free zones, QFZP rules, Golden Visa. Let our specialists guide you through every decision.