Starting a Business in the UAE: A Practical Guide from Mosaic Chambers Group
May 28, 2025
Thinking of setting up your business in Dubai?
The United Arab Emirates (UAE) is one of the most attractive destinations in the world for entrepreneurs, investors, and multinational businesses. With its business-friendly environment, strong legal framework, and strategic location, the UAE offers the ideal conditions for companies looking to launch or grow their operations in the Middle East and beyond.
Strategic Global Access
Located between Europe, Asia, and Africa, the UAE offers excellent connectivity to over 2 billion consumers and access to fast-growing global markets.
Favourable Tax Policies
The UAE has no personal income tax and a low 9% corporate tax (only applicable to profits over AED 375,000), making it a highly tax-efficient base for international businesses.
Robust Infrastructure
From modern airports and ports to advanced telecommunications and transport systems, the UAE offers everything needed for smooth business operations.
Flexible Company Structures
Choose between Mainland, Free Zone, or Offshore setups, depending on your business model, ownership preferences, and target market.
Key Steps to Start a Business in the UAE
1. Define Your Business Activity
Your chosen activity determines which licences and approvals are needed. Some sectors, such as financial services or education, require additional authorisation from regulatory bodies.
2. Choose the Right Business Structure
Choosing the right business structure in the UAE is essential because it sets the foundation for how your company operates, grows, and complies with local laws. The structure you select affects everything from ownership rights and liability to tax efficiency and the ability to trade or raise capital. With the UAE offering various options tailored to different business needs, getting it right from the start can save time, reduce risk, and support long-term success.
3. Mainland vs Free Zone
- Mainland companies can trade directly within the UAE and with government entities.
- Free zone companies enjoy tax benefits and 100% repatriation of profits, but if a freezone company is seeking market entry into mainland UAE, you would need to consider a restructuring.
Business Setup Process: Step-by-Step
- Select Your Activity – Choose from a list of permitted activities that align with your goals.
- Reserve a Business Name – Must follow UAE naming rules and avoid restricted terms.
- Get Initial Approvals – From the Department of Economic Development (DED) or your chosen free zone authority.
- Draft the MoA (Memorandum of Association) – Required for LLCs; outlines ownership, structure, and responsibilities.
- Secure Office Space – This is mandatory for most businesses. Free zones may offer co-working or virtual office options.
- Apply for a Trade Licence – Based on your activity: Commercial, Industrial, or Professional.
- Register the Company – Submit final documents to the relevant authority.
- Open a Corporate Bank Account – Required to legally operate and receive payments.
- Apply for Visas – For owners, employees, and dependents.
Compliance and Legal Requirements
- VAT Registration – Required for businesses earning over AED 375,000 per year.
- Economic Substance Regulations (ESR) – Applies to specific sectors and requires companies to show they have substantial operations in the UAE.
- Ultimate Beneficial Ownership (UBO) and AML Compliance – Businesses must maintain transparent ownership records and follow anti-money laundering regulations.
Beyond Setup: What Else to Consider
Hiring & Workforce Planning
Mainland companies must comply with Emiratisation quotas in certain industries. All employers must issue legal contracts, offer medical insurance, and follow UAE labour laws.
Cultural Awareness
Strong personal relationships and respect for Islamic values are key to doing business in the UAE. Observing local customs will help build trust and long-term partnerships.
Intellectual Property (IP) Protection
Registering your brand, trademarks, and IP rights with the Ministry of Economy is essential for protecting your business assets.
Access to Funding
The UAE offers a wide range of funding solutions, from government grants and incubators to VC firms and SME loan schemes.
Regional and Global Expansion
Once you’re established in the UAE, expansion into GCC countries and global markets is seamless thanks to the UAE’s extensive trade networks and logistics infrastructure.
Why Choose Mosaic Chambers Group?
At Mosaic Chambers Group, we do more than set up companies — we provide end-to-end support for entrepreneurs, investors, and established businesses. Whether you’re setting up in Dubai, Abu Dhabi, or across borders, we’re by your side every step of the way.
What Makes Us Different?
Global Reach
With operational hubs in Dubai and the UK, we offer relocation and corporate services that extend well beyond the UAE, supporting clients in global markets.
More Than a Setup Company
Company formation is only one part of our work. We deliver aftercare, compliance monitoring, visa processing, strategic advisory, and personalised relocation support.
Trusted Long-Term Partners
Our clients enjoy a dedicated advisor and single point of contact — someone invested in their long-term success, not just their initial launch.
Unmatched Quality of Advice
Others may advertise the lowest setup costs. But low prices often mean low-quality support. Our advice is thorough, strategic, and built to save you from costly mistakes and delays.
At Mosaic Chambers Group, we support clients across borders—not only in the UAE, but around the world. With hubs in both Dubai and the UK, our relocation and corporate services extend globally, making us the trusted partner for businesses serious about long-term growth. Get in touch below to find out more.
The UAE continues to evolve as a global wealth management hub, with its latest reform offering a significant step forward for family foundations and holding structures. The Ministry of Finance has introduced a mechanism allowing holding companies owned by qualifying family foundations to elect tax transparency, aligning local rules more closely with international wealth structuring norms. This change is not just administrative—it’s strategic. It gives ultra-high-net-worth individuals, family offices, and private clients a new tool for succession planning, tax optimisation, and cross-border compliance. What Is Tax Transparency for Holding Companies? Under the UAE’s corporate tax regime, most entities are taxed at a headline rate of 9% on profits exceeding AED 375,000. However, this new development allows holding companies owned by approved family foundations to opt for “tax-transparent” status, meaning: Profits are not taxed at the company level Income is attributed directly to the foundation’s beneficiaries No corporate tax is payable by the holding company In effect, the entity becomes a "flow-through" for tax purposes, much like similar vehicles in the UK or US trust and partnership models. This aligns with the UAE’s broader commitment to tax neutrality for legitimate private wealth structures. Why This Matters for Family Offices and Wealth Managers At Mosaic Chambers Group, we work with clients who require flexibility, confidentiality, and robust compliance across multiple jurisdictions. This update achieves all three. 1. Enhanced Control and Oversight By allowing direct income attribution, families retain a clear line of sight over their holdings without triggering difficult corporate tax liabilities or double taxation. This supports long-term family governance and oversight. 2. Streamlined Succession Planning Transparent holding companies integrate smoothly into wills, trusts, and multi-generational planning tools. It becomes easier to pass on ownership and control while remaining compliant with local laws and international tax expectations. 3. Simplified Tax Filings Rather than preparing corporate tax returns for each entity, income is reported by the beneficiaries, making annual compliance more manageable and, in some cases, reducing overall administration costs. What Are the Conditions? Not every family foundation will automatically qualify for this election. To take advantage of the new rule, the following key conditions must be met: The family foundation must be registered and recognised under UAE law Transparent status must be elected formally with the UAE Ministry of Finance Detailed ownership and income allocation documentation must be maintained The structure must be managed from within the UAE Importantly, these requirements are designed to prevent misuse and ensure that legitimate private wealth structures benefit, while still aligning with OECD transparency standards. Potential Cross-Border Tax Implications Families with beneficiaries based outside the UAE must tread carefully. While the UAE may no longer impose corporate tax on the holding company, beneficiaries in other jurisdictions may face tax liabilities based on their share of income, even if distributions haven’t been made. This makes international tax advice essential. Strategic Planning Opportunity This reform offers a unique opportunity to: Revisit legacy structures that may be inefficient or outdated Consolidate ownership across multiple holding entities Prepare for future generational transitions with confidence Whether you're managing a Gulf-based family enterprise or overseeing international assets across Europe, Asia, and the US, this election mechanism gives you a new layer of flexibility, without sacrificing legal clarity or compliance. Final Thoughts The UAE’s tax transparency election is more than a technical rule change—it’s a powerful tool for wealth preservation, efficient tax planning, and multi-jurisdictional control. Families and their advisers should review existing structures now to see if this opportunity aligns with their long-term goals. If you’re advising a UAE-based family foundation—or managing one—now is the time to act. Contact Mosaic Chambers Group to explore how this change could enhance your structure and secure your legacy.
In a recent development aimed at supporting private wealth structures and simplifying compliance, the UAE Ministry of Finance has introduced new tax relief provisions. These updates include changes for unincorporated partnerships and family foundations, marking a more flexible and business-friendly approach to taxation in the Emirates. Key Highlights of the Announcement Unincorporated Partnerships Previously, unincorporated partnerships in the UAE could face ambiguity regarding tax registration and reporting. Under the new guidance, certain partnerships will now be considered transparent for tax purposes. This means the income is taxed at the partner level rather than the entity level—making compliance simpler and aligning with international norms. Family Foundations Granted Transparency Family foundations that meet specific criteria can now elect to be treated as tax transparent. This allows the foundation to be excluded from corporate tax, with underlying individuals or beneficiaries responsible for tax on their share of the income. Ease of Doing Business These changes are in line with the UAE’s ongoing effort to modernise its tax system without discouraging investment or adding unnecessary administrative burdens. What This Means for Private Wealth The changes are especially relevant for high-net-worth families and their advisers: Succession Planning: Foundations often form a core part of estate planning. Tax transparency means fewer layers of tax and more direct control. Asset Protection: Structuring assets within tax-transparent foundations helps maintain privacy while complying with legal frameworks. Simplified Reporting: Families benefit from clearer reporting obligations and reduced risk of double taxation. Adviser Considerations Ensure your clients' foundations meet eligibility requirements for the new transparent status. Update tax and legal documentation to reflect the election. Review cross-border implications if beneficiaries or assets are located outside the UAE. Conclusion This development confirms the UAE's commitment to being a competitive, compliant, and family-friendly wealth jurisdiction. Families and their advisers should review existing structures to take full advantage of the updated regime. Final Thoughts If you’re working with or part of a family office or private wealth structure in the UAE, we can help you understand the implications of these updates. Our team specialises in international tax and succession planning.