Setting up a company in the United Arab Emirates has become one of the most relevant strategic decisions for business owners, digital entrepreneurs, and international investors in 2026. In a global context marked by increasing tax pressure, regulatory instability in certain countries, and the digitalization of business models, the United Arab Emirates offers a stable, competitive, and growth-oriented environment.
However, the process of setting up a company in the United Arab Emirates is far from being an automatic or universal solution. It is not simply about opening a company and benefiting from zero taxes, but about understanding how the company, residency, international taxation, and compliance requirements interact. In this clear and up-to-date guide, we explain the real process step by step and how Orience supports its clients in building legal, efficient, and sustainable structures.
Why the United Arab Emirates is a key destination for company formation in 2026
Global context of business relocation
In recent years, many countries have increased taxation on companies and individuals while tightening regulatory requirements. This scenario has driven a clear trend toward business relocation and the search for jurisdictions with clear rules, regulatory predictability, and openness to foreign capital.
The United Arab Emirates has positioned itself as a solid alternative thanks to a modern legal framework aligned with international standards and designed to attract real economic activity rather than opaque structures.
Structural advantages over other business hubs
The UAE combines a strategic location between Europe, Asia, and Africa with first-class infrastructure, global connectivity, and a business-oriented administration. Unlike other business hubs, it offers fast incorporation processes, no personal income tax, and an ecosystem where company formation and residency are directly connected.
Legal and transparent tax optimization
Setting up a company in the United Arab Emirates does not imply tax evasion. It is about legal tax optimization, based on leveraging a tax system designed to attract investment while complying with principles of transparency, economic substance, and international exchange of information.
What it really means to set up a company in the United Arab Emirates
Legal definition of company formation in the UAE
From a legal standpoint, setting up a company in the United Arab Emirates involves registering a commercial entity under a recognized jurisdiction, obtaining a specific business license, and complying with the operational and substance requirements established by local regulations.
Relationship between company, visa, and residency
One of the major attractions of the Emirati system is that the company acts as the sponsor of the residency visa. This allows shareholders, directors, and employees to legally reside in the country, access local services, and establish a real operational base.
What the concept of zero taxes really means
The UAE does not apply personal income tax. As for corporate tax, it only applies in certain cases and at reduced rates, with significant exemptions available in many free zones, provided legal and economic substance requirements are met.
Types of business structures in the United Arab Emirates
Free Zone companies
Free zones are special economic zones designed to attract foreign investment. They allow 100% foreign ownership, fast incorporation processes, and significant tax benefits. They are particularly suitable for international, digital, service-based, or foreign trade businesses.
Mainland companies
Mainland companies allow free operation within the Emirati market, the ability to sign contracts with local entities, and the development of activities requiring physical presence. They usually involve higher operational and compliance requirements.
Offshore companies
Offshore structures are mainly used for holding companies, asset management, or international investment. They do not allow local operational activity or direct access to residency visas.
Comparison between Free Zone, Mainland, and Offshore
- Free Zone: international focus, tax efficiency, residency included
- Mainland: access to the local market, broader operations, more requirements
- Offshore: holding structure, no residency or local operations
Step-by-step process to set up a company in the United Arab Emirates
Step 1: defining the activity and business model
The first step is to precisely define the economic activity. This decision determines the required license, the appropriate jurisdiction, and the applicable tax framework.
Step 2: choosing the jurisdiction and type of license
Depending on the business model, the choice is made between free zone, mainland, or offshore, as well as the corresponding commercial, professional, or industrial license.
Step 3: commercial registration and approval
This includes reserving the trade name, obtaining initial approval from the competent authority, and issuing corporate documents.
Step 4: opening a corporate bank account
Opening a bank account is one of the most sensitive steps. It requires consistency between the declared activity, the corporate structure, and the entrepreneur’s profile.
Residency included when setting up a company in the UAE
Investor or partner visa
The visa linked to the company allows legal residence in the country and is renewed periodically as long as the company remains active and compliant.
Residency for family members and employees
The visa holder may sponsor direct family members and employees, provided economic and administrative conditions are met.
Corporate taxation in the United Arab Emirates in 2026
Corporate tax
Corporate tax applies only to certain profits and activities. Many free zones maintain exemption regimes, provided current regulations are respected.
VAT in the UAE
VAT applies only to specific transactions and does not affect all business models, especially digital and international service-based ones.
Personal taxation of the business owner
Tax residents in the UAE are not subject to personal income tax, representing a significant advantage in wealth planning.
Real costs of setting up and maintaining a company in the United Arab Emirates
Incorporation costs
These include licenses, registration, visas, and, in some cases, virtual or physical offices.
Annual maintenance costs
License renewals, visas, compliance services, and economic substance requirements.
Common mistakes when setting up a company in the United Arab Emirates
- Choosing a structure without a clear tax strategy
- Failing to comply with economic substance requirements
- Confusing legal residency with tax residency
- Creating unnecessarily complex structures
Which profiles are best suited for setting up a company in the UAE
Digital entrepreneurs and online businesses
Especially attractive for digital services, consulting, and international trade.
International business owners
Ideal for holding companies, global expansion, and operational centralization.
Independent professionals
Consultants, freelancers, and experts working with international clients.
Risks, regulatory changes, and legal compliance
Economic substance and compliance
The UAE requires companies to have a real presence aligned with their declared activity.
International exchange of information
The country participates in tax transparency mechanisms and international cooperation.
How Orience supports company formation in the United Arab Emirates
Preliminary strategic analysis
Orience analyzes the client’s profile, objectives, and tax situation to design a coherent and sustainable structure.
End-to-end process management
From company incorporation to obtaining residency and opening a bank account, Orience coordinates the entire process.
Long-term support
The service includes ongoing support in compliance, renewals, and international planning.
Frequently asked questions about setting up a company in the United Arab Emirates
Is it legal to set up a company in the UAE and not pay taxes?
Yes, within the legal framework and in compliance with current requirements.
Do I need to live in the UAE to maintain the company?
Not always; it depends on the model and tax residency.
How long does the process take?
It can be completed in just a few weeks, depending on the chosen structure.
Conclusion
Setting up a company in the United Arab Emirates in 2026 is a strategic decision that combines business, taxation, and residency in a highly competitive global environment. It is not a standard solution, but rather a process that requires planning, expertise, and professional guidance. With Orience, it is possible to build a legal, efficient, and long-term structure aligned with your business and personal goals.