The United Arab Emirates (UAE) attracts thousands of foreign entrepreneurs annually due to its straightforward legislation and business-friendly environment. This guide outlines key aspects of company registration, taxation, and license renewal for small businesses in the UAE as of 2025.
Company Registration
Each of the seven emirates in the UAE has its own registration process, but once registered, a company can operate throughout the country. Self-registration is possible, with two main options:
Direct Registration: Through the Ministry of Economy and Tourism's online service. The minimum cost starts at AED 14,000, with the process typically taking less than a week.
Free Zone Registration: Through one of about 40 Free Zones in the UAE. These offer various services, including registration without relocating to the UAE. For example, Dubai Silicon Oasis provides such services. Once registered in a Free Zone, all further interactions, including license renewals, are handled through that Free Zone.
Taxation
Small businesses in Dubai primarily deal with two taxes:
Value Added Tax (VAT)
Corporate Tax (new as of 2025)
The corporate tax is linked to company profits, necessitating basic accounting practices. Tax filing, payments, and refunds are managed online through the Federal Tax Authority website. For smaller organizations, this process is relatively simple and straightforward.
License Renewal
Business licenses in the UAE have expiration dates and are typically renewed annually. The renewal process usually involves an audit conducted by a licensed auditor at the company's expense. The auditor reviews the company's accounting records and bank statements before issuing an opinion.
For small businesses, the UAE offers several simplifications, including streamlined processes for tax payments, hiring staff, and even the option to operate without a physical office for the first year.