FAQ
Answers to your most important business setup questions
- Can a company own multiple investment properties in the UAE?
Many investors use a company structure to hold multiple properties within a single ownership vehicle, making portfolio management and future acquisitions more efficient.
- Is rental income from UAE property subject to Corporate Tax?
For individuals investing in UAE real estate in their personal capacity, rental income is not subject to any tax. However, where property is owned through a company, the tax treatment may differ, and rental income may be subject to Corporate Tax depending on the structure and activities of the entity.
- Can I purchase UAE property through a company instead of in my personal name?
Yes. Depending on the Emirate, developer, and ownership structure, investors may be able to acquire UAE real estate through a corporate entity. Many investors choose this approach for asset protection, succession planning, portfolio management, and ownership flexibility. NHBC can advise on the most suitable structure based on your investment objectives.
- Do I need accounting and bookkeeping if my company only holds property investments?
Yes. Depending on the structure and activities of the company, accounting records, financial statements, Corporate Tax obligations, and other compliance requirements may still apply.
- What is the difference between a Property Investor Visa and a Golden Visa?
Property owners in Dubai may be eligible for a 2-year Property Investor Residence Visa. For jointly owned properties, each investor generally requires an ownership share of at least AED 400,000 to qualify. Investors with qualifying property investments of AED 2 million or more may be eligible for a 10-year Golden Visa. The most suitable option depends on factors such as property value, ownership structure, financing arrangements, and your long-term residency objectives. Contact NHBC for a personalized assessment of your eligibility and the most suitable residency route for your circumstances.
- Can property investors qualify for a Golden Visa?
Yes. Property investors may be eligible for a UAE Golden Visa if they meet the applicable investment criteria set by the UAE authorities. Requirements may vary over time and should be reviewed based on the current regulations. You may contact us for more information
- What is the UAE Corporate Tax rate?
The standard Corporate Tax rate is 9% on taxable profits exceeding AED 375,000. Taxable profits up to AED 375,000 are generally subject to a 0% rate.
- Can non-residents open a bank account in the UAE?
Yes. Certain UAE banks offer banking solutions for non-residents, particularly for property investors, entrepreneurs, and individuals with financial interests in the UAE. Eligibility and requirements vary by bank.
- Does every UAE company need to register for Corporate Tax?
Yes, UAE businesses are required to register for Corporate Tax, even if they ultimately qualify for exemptions or a 0% tax rate. Failure to register on time may result in penalties.
- Who is eligible for a UAE Golden Visa?
Eligibility may be available for property investors, entrepreneurs, business owners, highly skilled professionals, scientists, exceptional talents, outstanding students, and other qualifying categories. Specific requirements vary depending on the visa category.
- Does buying a property automatically grant a Golden Visa?
No. Purchasing property does not automatically result in a Golden Visa. Applicants must meet the relevant eligibility criteria and complete the formal application and approval process.
- Do Free Zone companies need to file Corporate Tax returns?
Yes. Free Zone companies are generally required to register for Corporate Tax and submit annual tax returns, regardless of whether they qualify for a 0% tax rate on qualifying income.
- Can a newly established UAE company open a corporate bank account?
Yes, although approval is subject to the bank’s internal compliance and due diligence requirements. Banks typically assess the company’s activities, ownership structure, source of funds, and business profile before approving an account.
- Do I need a physical office to set up a company?
Most company structures require a registered business address. Depending on the jurisdiction, this may range from a flexidesk or co-working facility to a dedicated office space.
- Is bookkeeping mandatory for UAE companies?
UAE businesses are advised to maintain accounting records and supporting documentation for statutory and tax compliance purposes. Proper bookkeeping is also essential for Corporate Tax and VAT reporting.
- How long does it take to set up a company in the UAE?
Company formation timelines vary depending on the jurisdiction and business activity. In many cases, a company can be established within a few days, while regulated activities may require additional approvals and thus take more time.
- Can I use a Free Zone company as a holding company for UAE property investments?
Yes. Free Zone companies are commonly used as holding companies for property investments and other assets. A properly structured holding company can simplify ownership, facilitate future transfers, and support long-term estate and succession planning.
- What is the minimum property investment required for a Golden Visa?
Property investors are generally eligible if they own UAE real estate with a value of at least AED 2 million, subject to the latest government requirements and approval criteria.
- When is VAT registration mandatory in the UAE?
VAT registration is generally mandatory when taxable supplies and imports exceed AED 375,000 during the previous 12 months or are expected to exceed that threshold within the next 30 days.
- Is a Golden Visa the same as UAE citizenship?
No. A Golden Visa provides long-term residency rights but does not grant UAE citizenship. Visa holders remain citizens of their home country unless separately granted UAE nationality under exceptional circumstances.
- Can I reclaim VAT on business expenses?
In many cases, businesses can recover VAT incurred on eligible business expenses, provided the costs relate to taxable business activities and appropriate documentation is maintained.
- Can I work in the UAE with a Golden Visa?
Yes. Golden Visa holders are permitted to live and work in the UAE and may work for an employer, operate their own business, or pursue professional activities in accordance with UAE regulations.
- Can I outsource my accounting and bookkeeping?
Yes. Many businesses choose to outsource their accounting and bookkeeping functions to reduce costs, improve compliance, and gain access to experienced financial professionals without maintaining an in-house finance team.
- Can I obtain a Golden Visa with a mortgaged property?
In many cases, yes. Certain banks and financing structures may qualify, provided the property’s value and financing arrangements meet the relevant government requirements.
- What is better: a Mainland or Free Zone company?
The right choice depends on your business activities, target market, visa requirements, and long-term growth plans. Mainland companies can generally trade throughout the UAE, while Free Zones may offer industry-specific benefits and potential Corporate Tax advantages for qualifying businesses.
- Can a foreigner own 100% of a company in the UAE?
Yes. Most UAE Mainland and Free Zone business activities now allow 100% foreign ownership. However, certain strategic or regulated sectors may still require local participation or additional regulatory approvals.
- Do I need accounting records to support a bank account application?
Many banks request information regarding business activities, expected transactions, source of funds, invoices, contracts, and financial records as part of their due diligence process.
- Can I remain outside the UAE without losing my Golden Visa?
One of the key advantages of the Golden Visa is its flexibility. Unlike certain standard residence visas, Golden Visa holders can generally remain outside the UAE for extended periods without affecting their residency status, subject to prevailing regulations.
One of the key advantages of the Golden Visa is its flexibility. Unlike certain standard residence visas, Golden Visa holders can generally remain outside the UAE for extended periods without affecting their residency status, subject to prevailing regulations.
Many banks request information regarding business activities, expected transactions, source of funds, invoices, contracts, and financial records as part of their due diligence process.
Yes. Most UAE Mainland and Free Zone business activities now allow 100% foreign ownership. However, certain strategic or regulated sectors may still require local participation or additional regulatory approvals.
The right choice depends on your business activities, target market, visa requirements, and long-term growth plans. Mainland companies can generally trade throughout the UAE, while Free Zones may offer industry-specific benefits and potential Corporate Tax advantages for qualifying businesses.
In many cases, yes. Certain banks and financing structures may qualify, provided the property’s value and financing arrangements meet the relevant government requirements.
Yes. Many businesses choose to outsource their accounting and bookkeeping functions to reduce costs, improve compliance, and gain access to experienced financial professionals without maintaining an in-house finance team.
Yes. Golden Visa holders are permitted to live and work in the UAE and may work for an employer, operate their own business, or pursue professional activities in accordance with UAE regulations.
In many cases, businesses can recover VAT incurred on eligible business expenses, provided the costs relate to taxable business activities and appropriate documentation is maintained.
No. A Golden Visa provides long-term residency rights but does not grant UAE citizenship. Visa holders remain citizens of their home country unless separately granted UAE nationality under exceptional circumstances.
VAT registration is generally mandatory when taxable supplies and imports exceed AED 375,000 during the previous 12 months or are expected to exceed that threshold within the next 30 days.
Property investors are generally eligible if they own UAE real estate with a value of at least AED 2 million, subject to the latest government requirements and approval criteria.
Yes. Free Zone companies are commonly used as holding companies for property investments and other assets. A properly structured holding company can simplify ownership, facilitate future transfers, and support long-term estate and succession planning.
A Mainland company can trade freely across the UAE and is generally subject to the standard UAE Corporate Tax rules (0% up to AED 375,000 taxable profit, then 9%).
A Free Zone company is registered within a specific UAE free zone and may qualify for 0% Corporate Tax on certain qualifying income, provided it meets the UAE’s Qualifying Free Zone Person (QFZP) rules.
From a VAT perspective, most Free Zones are treated the same as Mainland. Only certain “Designated Zones” receive special VAT treatment, mainly for goods and logistics activities — not for most services.
Yes. Free Zone companies are also subject to Corporate Tax rules. However, certain Free Zone businesses may qualify as a Qualifying Free Zone Person (QFZP) and benefit from a 0% Corporate Tax rate on qualifying income if it meets certain requirements.
Not necessarily. Free Zone businesses must still register for Corporate Tax and file their returns.
No. VAT is a transaction tax on goods/services, while Corporate Tax applies to business profits.
In most cases, no. The UAE now allows 100% foreign ownership for many Mainland business activities, meaning foreign investors can fully own their company without needing a UAE national to hold 51% of the shares. However, there are still some activities that may still require a UAE national partner, a Local Service Agent (LSA) or additional regulatory approvals depending on the business sector and licensing authority.
A Free Zone, Free Trade Zone or Free Economic Zone, is a designated geographical area where certain taxes or restrictions on business, employment or trade do not apply in the same manner that they apply to the country in which the zone is located. An area within which goods might land, handled, manufactured or reconfigured, and re-exported without the intervention of the customs authorities. Only when the goods move to consumers within the UAE in which the zone is located do they become subject to the prevailing customs duties. Free Zones are often organised around major seaports, international airports, and national frontiers — areas with many geographic advantages for trade.
NHBC has a personalized approach and we will first evaluate what legal and corporate structure best suits your current and future business needs, after which we will provide comprehensive guidance on your setup in the UAE. Timelines therefore depend on each individual case. We take care of the full incorporation process by preparing all the required documentation and approvals and assist with translations, attestations and legalizations if and when required. We have excellent contacts at the major local UAE banks which will ensure that your corporate bank account will be opened. We also have a pool of trustworthy local service agents in case you are opting for a Mainland setup.
A mainland company is an onshore company licensed by the Department of Economic Development (DED) of the related emirate which is allowed to do business in the local market as well as outside UAE without any restrictions. A Free Zone company is incorporated within a designated jurisdiction of the emirate where the company is allowed to do business inside the same free zone or outside the UAE. For commercial licenses and trading of physical goods, the company cannot do local business directly because the government has posed a limitation for trading in the local market through a distributor and by paying 5% duty on the local market invoices.
No, they have to be on two different licenses.
You can sell goods in the local UAE market through a local distributor. A Free Zone company may not directly retail goods to the local market.
This depends on where the company is incorporated (Free Zone or Mainland). Each Free Zone has different timelines. The Registration and Licensing process usually takes between 2-4 weeks. Please note that the bank account can only be opened once the Registration and Licensing process has been finalized.
English is widely spoken throughout the country. Although it is common for written correspondence to be in English, Arabic is often preferred within some public sector organisations.
Yes, within each license type, up to several business activities can be included in the standard annual license fee. Please note that this varies per Free Zone. Additional fees will apply when adding activities from a different category.
It is not mandatory to come in person if you appoint someone to represent you before the authorities if you are not available. This can be done by means of a Power of Attorney (POA), a written legal authorization by an individual(s) to another individual(s) to represent or legally act on his or her behalf. In the case of company affairs, the powers may vary from incorporating the company to any post incorporation amendments, where the POA holder represents the individual(s) before the authorities to sign the Resolution, Memorandum, and Articles of Association among other documents. A POA remains in force until revoked, or for a limited time.
This depends on the Free Zone. Most Dubai Free Zones required the registered Free Zone company to appoint an independent auditor that is registered and licensed in the UAE and to submit audited financial statements annually at the time of license renewal.
Yes, Free Zone licensed companies holding trading licenses are allowed to import and export goods in conformity with the activity of the licensed company. The importer must obtain a valid importer code from Dubai Customs. Dubai Customs issue two types of Import/Export Codes which are ‘Free Zone Code’ and ‘Onshore Code’. The Free Zone code allows only the import and re-export to other countries and hence goods are not allowed to enter the mainland unless they are cleared through a limited liability trading company or a logistics provider or authorized distributor.
Yes, the General Manager can reside outside the UAE as long as he/she will have a valid UAE residence visa and is willing to be the day-to-day point of contact for all matters concerning the business
A Branch is a representative office of a legal entity which already exists locally or internationally. A Branch does not have a separate legal personality, and it derives its power and authority from the parent entity. A Branch must retain the same name as the parent entity and conduct similar activities as the parent entity.
Yes, you are able to open a PO Box with a Free Zone and Mainland license. Offshore entities are not entitled to a PO Box.