As 2025 unfolds, the UAE continues to strengthen its position as one of the world’s most attractive destinations for entrepreneurs, startups, and multinational investors. With unmatched infrastructure, progressive tax reforms, and investor-friendly laws, the country remains a global launchpad for business formation and expansion.
At The Capital Zone, we help investors navigate these evolving rules from choosing the right jurisdiction (Mainland or Free Zone) to ensuring full compliance with corporate tax, VAT, and regulatory frameworks.
Why the UAE Remains the World’s Business Launchpad
The UAE’s logistics and connectivity infrastructure are unmatched worldwide.
- Air Connectivity: Dubai International Airport (DXB) handled over 92.3 million passengers in 2024, maintaining its #1 global ranking for international travelers. Meanwhile, the upcoming mega-hub at Al Maktoum International (DWC) promises even greater capacity and speed.Dubai Airports+1
- Sea & Land Logistics: DP World’s Jebel Ali Port processed 15.5 million TEUs in 2024 its highest since 2015 while Abu Dhabi’s Khalifa Port and Etihad Rail now provide seamless rail links to Fujairah Terminals, cutting transit time and cost. DP World+1
Bottom line: Few jurisdictions can match the UAE’s integrated multimodal logistics perfect for founders trading across MENA, Europe, Africa, and South Asia.
Mainland vs Free Zone in 2025 — What’s Changed
Mainland (Onshore)
- 100% Foreign Ownership for most commercial and industrial activities (no local partner required) a major advantage after recent reforms.
- Corporate Tax (CT): 9% rate applies on profits exceeding AED 375,000.
- VAT: 5% remains the standard rate. وزارة المالية – الإمارات العربية المتحدة+1
Best suited for: Businesses targeting the UAE’s domestic market, retail, government contracts, and service-based sectors.
Free Zones
- 0% CT can apply on Qualifying Income if your entity meets the Qualifying Free Zone Person (QFZP) rules (substance, audited financials, de‑minimis tests, and activity criteria). Since November 2023, the regime is anchored by Cabinet Decision 100/2023 and Ministerial Decision 265/2023, replacing the earlier 55/2023 & 139/2023. The FTA Free Zone Guide (May 2024) is your practical playbook. KPMG+2وزارة المالية – الإمارات العربية المتحدة+2.
- 9% CT still applies to non-qualifying income (mainland transactions, excluded activities).
- VAT: 5%, with special rules for Designated Zones. وزارة المالية – الإمارات العربية المتحدة
Choosing Your Lane — Quick Cues
Deciding between Mainland and Free Zone structures depends on your business model and market focus:
- If you operate across the UAE’s domestic market, engage in retail trade, government contracts, or local tenders, a Mainland setup is often the most suitable option.
- If your business sells B2B regionally or globally, with a lighter onshore footprint such as manufacturing, logistics, fund management, shipping, or intra-Free Zone services then structuring your company as a Qualifying Free Zone Person (QFZP) under the Free Zone regime offers the best tax advantages and flexibility. FTA UAE
This structure allows you to benefit from 0% Corporate Tax on qualifying income, subject to meeting the substance, activity, and compliance criteria defined by the Federal Tax Authority (FTA).
Where the Tax Savings Are in 2025
- QFZP 0% Corporate Tax: Qualifying activities include manufacturing, distribution from Designated Zones, HQ services, logistics, shipping, and fund management provided substance and 5% de-minimis conditions are met. وزارة المالية – الإمارات العربية المتحدة
- Small Business Relief: Companies with ≤ AED 3 million annual revenue can opt for Corporate Tax relief until 2026.وزارة المالية – الإمارات العربية المتحدة+1
- Pillar Two for MNEs: Starting 2025, a 15% domestic minimum top-up tax applies to large multinationals (revenue ≥ €750m).Reuters
Officially Advertised Setup Offers
| Free Zone | Licence Type | Starting Price | Key Highlights |
| SHAMS (Sharjah Media City) | Service Licence | AED 5,750 | 1-Visa Package: AED 7,980 (includes MOA, UBO, e-channel, establishment card) |
| SPC Free Zone (Sharjah Publishing City) | Instant Licence | AED 5,750 | Fast, paperless process ideal for startups |
| RAKEZ (Ras Al Khaimah Economic Zone) | BizStarter (1-Visa) | AED 14,000 | Multi-year savings available |
| DMCC (Dubai Multi Commodities Centre) | Trading Licence | AED 20,285 | Service Licence: AED 25,285 per schedule |
💡 Mainland Dubai: Check the DED Business Cost Calculator to estimate your onshore setup cost.
These are headline prices “as‑advertised” on official pages at the time of writing. Always confirm inclusions (visa quota, office/desk, e‑channel, establishment card, immigration, and VAT) before you commit.
Key Compliance Areas for Every Business
Corporate Tax (CT)
- Registration: The FTA set formal deadlines via Decision 3/2024. For entities formed on/after 1 March 2024, apply within the timeline specified (generally soon after incorporation); legacy entities had deadlines through 2024 based on licence month. FTA UAE+1
- Filing: Returns due 9 months after financial year-end (e.g., FY ending 31 Dec 2024 → due 30 Sep 2025), as reiterated by the FTA. FTA UAE
VAT (5%)
- Registration threshold and invoicing: Standard rate remains 5%; stay tuned to MoF e‑Invoicing (national programme) as the mandate rolls out in phases MoF’s portal is the single source of truth for requirements and timing. وزارة المالية – الإمارات العربية المتحدة+1
UBO, AML & ESR
- Ultimate Beneficial Owner (UBO):
As per Cabinet Resolution No. 109 of 2023, all UAE companies must maintain and regularly update their Real Beneficiary Register, replacing the earlier Resolution 58/2020. Businesses are required to record accurate ownership data and promptly notify their registrar of any changes to remain compliant with UAE Legislation. - AML / goAML for DNFBPs:
Entities classified as Designated Non-Financial Businesses and Professions (DNFBPs) including real estate brokers, dealers in precious metals and stones, auditors, and corporate service providers must register with the Ministry of Economy’s goAML system and comply with AML/CFT supervision guidelines. moet.gov.ae - Economic Substance Regulations (ESR):
The ESR framework continues to apply. Businesses engaged in relevant activities must file their annual ESR Notification and Report as per the amendments introduced under Cabinet Decision No. 98 of 2024. Companies should regularly assess their ESR applicability to ensure compliance and avoid administrative penalties. U.AE+1
Visas for Founders & Teams
- Golden Visa (5–10 years): For investors, entrepreneurs, and exceptional talent sponsor-free and renewable. U.AE
- Green Visa (5 years): For skilled professionals, freelancers, and investors. U.AE+1
Both visa types simplify residence and support long-term business operations in the UAE.
Fast Setup Decision — What Fits You Best?
| Business Type | Recommended Structure |
| Bootstrapped Consultants / creatives selling (cross-border) | Consider SHAMS or SPCFZ for low‑cost entry, then graduate to a FZ with activity fit once revenue stabilises. Validate QFZP eligibility early if 0% CT is part of your plan. Shams Free Zone+2SPC+2 |
| Trading & light assembly serving GCC/Africa/India: | JAFZA, RAKEZ, or KEZAD near ports & rail links; review customs/VAT rules. |
| Domestic Retail / Government Contracts | Mainland setup with 100% ownership and onshore presence. U.AE |
First 90 Days Compliance Checklist
- Confirm Business Activity & Jurisdiction:
Finalize your company’s name and business activities. Choose between Mainland or Free Zone ensuring alignment with QFZP (Qualifying Free Zone Person) rules if you plan to benefit from the 0% Corporate Tax rate on qualifying income. FTA UAE - Corporate Tax (CT) Registration:
Register your company for Corporate Tax on the EmaraTax portal within the FTA-specified timeline, and define your first tax period to avoid delays or penalties. FTA UAE - VAT Assessment & e-Invoicing:
Evaluate whether your business must register for VAT (standard rate 5%) and ensure your ERP or accounting system is ready for the upcoming UAE e-Invoicing mandate. وزارة المالية – الإمارات العربية المتحدة+1 - UBO, ESR & AML Compliance:
Maintain and file your Ultimate Beneficial Owner (UBO) register, assess Economic Substance Regulations (ESR) applicability, and register with goAML if your business falls under the DNFBP category. UAE Legislation+2U.AE+2 - Accounting & Audit Readiness:
All Free Zone QFZP entities must prepare and maintain audited financial statements, while Mainland businesses should be ready to file Corporate Tax returns within nine months of their financial year-end. FTA UAE+1
Snapshot of 2025 Price Offers
- SHAMS: Service: AED 5,750 | Trading: AED 6,000 | 1‑Visa package: AED 7,980. Shams Free Zone
- SPC Free Zone: Instant licence from AED 5,750. SPC
- RAKEZ BizStarter: AED 14,000 (1‑visa) with multi‑year savings options. RAKEZ
- DMCC: Trading Licence AED 20,285; Service Licence AED 25,285 (per current schedule).
All figures are indicative, subject to change, and typically exclude office/desk rent, establishment card, e‑channel, visas/medical/ID, and 5% VAT..
How The Capital Zone Can Help
At The Capital Zone, we simplify every stage of UAE company formation from cost comparison to tax compliance.
Our Services Include:
- Structure Design: Mainland vs Free Zone planning, QFZP eligibility check, and tax mapping. FTA UAE
- Cost Benchmarking: We benchmark official packages, read the fine print, and budget total cost‑to‑launch (licence, office, visas, VAT). Shams Free Zone+2SPC+2
- Compliance Setup: CT registration & returns, VAT/e‑invoicing readiness, UBO/ESR, AML/goAML, and year‑one accounting & audit. moet.gov.ae+5FTA UAE+5FTA UAE+5
Our experts ensure you launch your UAE company efficiently, legally, and with maximum tax benefits.
Contact The Capital Zone
Office 605, Park Lane Tower, Business Bay, Dubai – UAE
info@thecapitalzone.com | +971 4 285 0200For marketing & collaborations: marketing@thecapitalzone.com | +971 50 209 9514
