Set Up a Company in Dubai from the UK: Tax, Documents and Costs

To set up a company in Dubai from the UK, you do two things in parallel: build the UAE company, and make sure the UK side – your tax residence, your reporting and your estate position – is settled before you rely on the UAE's low tax. Most guides cover the first and skip the second. This page starts with the second, because it is the part that decides whether the move saves you money.

It covers how HMRC decides whether you are UK resident, what the UK-UAE tax treaty does, what changed for inheritance tax in April 2025, how UK documents are attested, and the free zone and mainland options with their verified entry prices. It is a planning guide, not tax advice: take your own residence history to a UK-qualified adviser.

Reviewed by Mirza Seraj Baig, Founder & Advisory Strategist, Henry Club UAE.

Quick Summary: Setting Up a Dubai Company from the UK

• UK residence decides your UK tax, not the location of your company. HMRC applies the Statutory Residence Test, with split-year treatment available in the year you move.
• Treaty: the UK-UAE double taxation convention has been in force since 25 December 2016.
• Inheritance tax: from 6 April 2025 it follows long-term UK residence rather than domicile.
• UAE tax: 0% personal income tax; 9% corporate tax on profit above AED 375,000, with Small Business Relief to 31 December 2029 for revenue of AED 3 million or less.
• Ownership: 100% foreign ownership is available for most activities.
• Entry prices: UAQ from AED 5,500, SPC from AED 5,750, IFZA from about AED 12,500, DMCC AED 35,484; mainland is an activity fee plus an office lease.
• Residency: investor or partner visa for 2 years; golden visa for 10 years.

The UK tax side first

Three UK rules shape the decision, and each has a UK government source you can read yourself.

The Statutory Residence Test

The UK tax year runs from 6 April to 5 April. Under the Statutory Residence Test (SRT), you are UK resident for a year only if you meet one or more automatic UK tests, or the sufficient ties test, and you do not meet an automatic overseas test. One of the automatic UK tests is spending 183 or more days in the UK in the tax year. One of the automatic overseas tests is spending fewer than 16 days in the UK, or fewer than 46 days if you were not UK resident in the three previous tax years. The sufficient ties test sits between the two and counts connections such as work and family, so a founder who keeps a home, a spouse or a business presence in the UK should not assume the day count alone settles it.

Split-year treatment

When you move into or out of the UK, the tax year can be split into a non-resident part and a resident part, and UK tax on foreign income applies only to the resident part. HMRC's guidance says you do not get split-year treatment if you live abroad for less than a full tax year before returning, and other conditions apply. The practical point is that the date you leave matters and should be planned, not discovered.

The UK-UAE treaty

The first comprehensive UK-UAE double taxation convention was signed on 12 April 2016 and entered into force on 25 December 2016. It was later modified by the OECD Multilateral Instrument. A treaty decides which country may tax a given type of income and how relief is given; it does not decide whether you are UK resident. Residence comes first, the treaty second.

Inheritance tax after 6 April 2025

From 6 April 2025, UK inheritance tax on worldwide assets turns on whether you are a long-term UK resident, replacing the old domicile-based approach. Under section 6A of the Inheritance Tax Act 1984 a person is a long-term resident if they were UK resident for at least 10 of the previous 20 tax years, and the status can continue for a set number of years after they leave, depending on how long they were resident. We do not apply that formula to individual cases here. If you have lived in the UK for many years, ask a UK adviser to run your own numbers before you assume leaving ends the exposure.

Founders who keep a UK company or UK-source income after moving should also ask about UK anti-avoidance rules that can apply to overseas companies controlled by UK residents. Those rules depend on your circumstances and are outside what a general page can settle.

Why UK founders look at the UAE

The reasons we hear are practical rather than glamorous. The UAE has no personal income tax, charges 9% corporate tax only on profit above AED 375,000, and lets eligible businesses with revenue of AED 3 million or less apply Small Business Relief, now extended by the Ministry of Finance to 31 December 2029. Free zone companies can get a 0% rate on qualifying income if they meet the conditions. Full foreign ownership means no local sponsor is needed for most activities. And the time zone sits between London and Asia, which suits founders who serve both.

None of that operates automatically for a UK resident. A UK-resident director who runs a UAE company from their kitchen table in the UK may find the company's management, and the director's own income, still sit within the UK system. The company's registration location and the individual's tax residence are separate questions. Our corporate tax guide covers the UAE rules in more detail.

Documents and attestation from the UK

The UAE is not a member of the Hague Apostille Convention, so a UK document does not become valid in the UAE with an apostille alone. It goes through a four-step chain:

1. Notarisation of the document (or certified copy) in the UK.
2. Legalisation by the UK Foreign, Commonwealth and Development Office, the UK's foreign ministry.
3. Attestation by the UAE Embassy in London.
4. Final attestation by the UAE Ministry of Foreign Affairs (MoFA) in the UAE.

MoFA charges AED 150 per personal document and AED 2,000 per commercial document. Personal documents are things like a passport copy or a degree certificate, and commercial documents are company papers such as a certificate of incorporation or a board resolution. If you are using an existing UK company as the shareholder of the UAE entity, expect to attest its constitutional documents, and expect the commercial fee. Ask the UAE licensing authority for its exact checklist before you start, since it can differ by zone.

Choosing between free zone and mainland

Pick by customer, then by cost. The figures below are entry prices; visas, office needs and the activity you choose move the total.

Free zones

A free zone suits a business that sells to customers outside the UAE, to other free zone companies or online, which describes many UK consultancies, e-commerce operators and digital businesses. UAQ starts from AED 5,500, SPC from AED 5,750 and IFZA from about AED 12,500, while DMCC is AED 35,484. See the SPC, IFZA and DMCC guides, or the free zone overview. A free zone company that wants to trade directly with UAE customers on the mainland will usually need a mainland route as well.

Mainland

A mainland license lets you contract directly with UAE businesses and consumers and bid for local work. The cost is the Dubai Department of Economy and Tourism fee for each activity plus the lease on your office, so there is no flat price to quote honestly. The mainland guide explains the steps.

To compare the two on your own numbers, use the business setup calculator, or read the full Dubai business setup guide.

Visas and the golden visa

A licensed company can sponsor an investor or partner residence visa, valid for 2 years. The number of visas available is tied to your office or package. For a longer horizon, the golden visa lasts 10 years and is open to property buyers and investors at AED 2 million. The 10-year permit costs AED 1,200 at ICP, or AED 1,640 at GDRFA Dubai when issued in-country.

A UAE residence visa does not change your UK tax residence on its own. What the SRT counts is where you are, not which visa you hold, so the days you spend in the UK after moving still matter.

Banking: what to expect

UAE banks run their own know-your-customer checks on shareholders, the business model and the source of funds, and none publishes a guaranteed timeline. UK founders usually find the paperwork straightforward, since UK bank statements, company accounts and tax returns are readily available, but the bank may ask for contracts or invoices to show the company is real. Do not pay for a promised account date; treat any such promise as unreliable. The business bank account guide lists the documents to prepare.

Step by step: UK founder to UAE license

1. Settle your UK position first. Take your residence history to a UK adviser: SRT, split-year timing, inheritance tax and any UK company.
2. Decide the activity and the customer base. That choice fixes free zone or mainland.
3. Get a costed quote. Include visas, office and annual renewal.
4. Start the attestation chain in the UK. Notary, FCDO, UAE Embassy in London, then MoFA.
5. Apply for the license and register for corporate tax.
6. Apply for visas and open the bank account.

When you are ready for a costed plan, request a quote with your activity, visa count and where your customers are.

Mistakes to avoid

• Assuming a UAE company changes UK tax residence. It does not; the SRT does.
• Counting only days in the UK. The sufficient ties test also looks at work, family and accommodation.
• Ignoring inheritance tax. Long-term residence can keep worldwide assets in the UK net after you leave.
• Pricing in pounds from a headline number. UAE prices are in dirhams, and licensing, visa and renewal costs add to the entry price.
• Starting attestation last. The UK-to-UAE chain has four steps across two countries.

Sources & Official References

Figures and rules on this page come from the sources below. UK tax rules change, so check the current position with a UK-qualified adviser before you act.

• GOV.UK — Tax on foreign income: UK residence — The Statutory Residence Test, tax year dates and split-year treatment.
• GOV.UK — United Arab Emirates tax treaties — The 2016 UK-UAE double taxation convention, in force 25 December 2016.
• legislation.gov.uk — Inheritance Tax Act 1984, section 6A — The long-term UK resident rule.
• UAE Government Portal — Taxation — Federal overview of taxes in the UAE, including the absence of personal income tax.
• Federal Tax Authority — Corporate Tax — The 9% rate, the AED 375,000 threshold and registration.
• Ministry of Finance — Small Business Relief extension — Relief extended to 31 December 2029.
• Federal Authority for Identity, Citizenship, Customs and Port Security (ICP) — Golden Residency — Golden visa eligibility and fees.
• UAE Ministry of Foreign Affairs — Attestation Guide — Attestation process and fee schedule.

Frequently Asked Questions — Setting Up a Company in Dubai from the UK

Can a UK citizen own 100% of a company in Dubai?

Yes. The UAE allows full foreign ownership for most activities, in free zones and on the mainland. Some regulated or strategic activities carry conditions, so confirm your activity with the licensing authority first.

Will I stop paying UK tax if I set up a company in Dubai?

Not automatically. UK tax depends on whether you are UK resident under the Statutory Residence Test, not on where your company sits. A UK resident can still be taxed in the UK on worldwide income, which is why the residence position should be settled with a UK adviser before you rely on the UAE having no personal income tax.

What is the Statutory Residence Test?

It is the set of tests HMRC uses to decide whether you are UK resident for a tax year, which runs from 6 April to 5 April. You are resident if you meet an automatic UK test or the sufficient ties test and do not meet an automatic overseas test; spending 183 or more days in the UK in the tax year is one of the automatic UK tests.

Is there a double taxation treaty between the UK and the UAE?

Yes. The UK-UAE double taxation convention was signed on 12 April 2016 and entered into force on 25 December 2016. It allocates taxing rights between the two countries, and it is the document your UK adviser will use when income arises in both.

Does leaving the UK end my exposure to UK inheritance tax?

Not straight away. From 6 April 2025 UK inheritance tax on worldwide assets depends on long-term UK residence, which broadly means being UK resident for at least 10 of the previous 20 tax years, and the status can continue for a period after you leave. Ask a UK adviser to apply the rule to your own residence history.

Do UK documents need attestation for a UAE license?

Usually yes. The UAE is not a member of the Hague Apostille Convention, so a UK document is notarised, legalised by the UK Foreign, Commonwealth and Development Office, attested by the UAE Embassy in London and then attested by the UAE Ministry of Foreign Affairs. The UAE MoFA fee is AED 150 per personal document and AED 2,000 per commercial document.

How much does it cost to start a company in Dubai from the UK?

Free zone licenses start from AED 5,500 at UAQ, AED 5,750 at SPC and about AED 12,500 at IFZA, while DMCC is AED 35,484. Mainland cost depends on the activity fee and your office lease, so a quote on your own activity is the only reliable figure. Prices are in dirhams, so convert at the exchange rate on the day you pay.

Can I get a UAE residence visa through my own company?

Yes. A licensed company with a suitable office or package can sponsor an investor or partner residence visa, issued for 2 years. A separate golden visa lasts 10 years and is available on AED 2 million of property or investment.