email: info(at)go-eu.com
phone: +49 (0)89 90 42 23 60
assisted in a company setup.
Update 2025: 10 Minutes initial consultation, 100% free.
Inquire Now
Call us: +49 (0)89 90 42 23 60
Table of contents:
1. Five steps process: Starting a company in Dubai
2. TOP 3 disadvantages?
3. Dubai company without being a resident: Taxes?
1. Starting a company in Dubai in 5 steps
20 March 2025 4821 7Step 1: Choose a company type
Before starting any business, the first question to be asked is: What types of companies are there? And what are the economic and tax implications of each?
Residence in Dubai or in your home country - which type of company should you choose?
A company in Dubai, such as the LLC (Limited Liability Company) is the most common form of company formation. In addition, a distinction must be made between a mainland company (for sales within the United Arab Emirates) or a free zone company (for sales outside the UAE).
A "Dubai LLC" makes it easy for foreigners to set up a company in the UAE or Dubai. The LLC is treated like a corporation in terms of corporate and liability law, but like a partnership without personal liability in terms of tax law. In addition, the LLC is not subject to tax in the UAE as a free zone company, with exclusively foreign income up to an upper limit of AED 375,000 or 95,000 EURO annual profit. Profits above this amount are taxed at 9%, regardless of whether the company is a mainland or free zone company.
The legislation governing LLCs varies within the 47 free trade zones. Which free trade zone is suitable? When choosing a location, two main factors are usually important:
1. Free trade zone with the lowest administrative costs and effort
2. Convenient location
Dubai Airport Free Zone (DAFZA), Dubai Media City (DMC), Dubai Internet City (DIC) are currently the most popular locations in terms of running costs and location.
The Limited Liability Company is called an FZE in the United Arab Emirates. The LLC (Limited Liability Company) is a hybrid company that offers liability protection, can hold assets and is not subject to tax even up to an amount of just under EUR 100,000. The shareholders of a Dubai FZE submit all profits and losses via a tax return.
The LLC requires a written partnership agreement, or in order to establish a LLC, it is usually necessary to apply for a license from the authorities, i.e. in the free trade zone in which the LLC will operate. Here, the share capital of 0 EUR is almost irrelevant. In some free zones there is no publicly accessible commercial register. The registration in the company register is also optional.
Annual maintenance costs are significant. The license fees payable to the state for a Dubai company range from : 2.600,00 to 4.000,00 EUR yearly
Visa Costs from 1000.00 per person annually
Step 2: Why Dubai
With 0% corporate tax on profits of up to 100k EUR per year, Dubai has the lowest tax rate in the world.
This makes setting up a company in Dubai a tax haven for people living outside the UAE.
Discretion and anonymity: In several free trade zones, such as Dubai Internet City (DIC), there is no requirement for founders of a company, members of the corporate entity (shareholders) or owners (managing directors) to be publicly named.
Open tax policy: Internationally adapted tax policy: Tax increases are not unavoidable in the UAE. Dubai is also an international marketplace for well-known large corporations, which can look forward to adjustments in terms of coordination and lead time.
No exchange of information: The UAE does not participate in the international exchange of information under OECD CRS.
Step 3: Requirements for founding
In order to establish a corporation in the form of an LLC, the following questions arises: Is it possible to establish a company without having to travel? What documents must be submitted?
The LLC must be notarized - Do I have to go to a notary in Dubai?
Starting a business remotely, without having to travel at all, is often not entirely possible! - But with GO EU it is definitely possible!
Many providers promise to set up a company without any notary appointment on site. In reality, a notary appointment in Dubai or even in your country of residence is often necessary. The notarized documents then have to be provided with an apostille, which is a laborious process.
Upon opening an account or authorizing the tax advisor, a physical notary appointment on site is required, contrary to what was previously promised!
--> Exclusively at GO EU -Comapny Formation,Bank account opening and Tax advisor authorization 100% remote and possible without a physical notary appointment!
Update 2025: 10 Minutes initial consultation 100% free
Inquire Now
Call us: +49 (0)89 90 42 23 60
Company formation process:
- The share capital is 0 EUR
- Payment of the share capital
- Partnership agreement
- Checking and applying for the Company Name
- Preparation of the formation documents
- License application
- Notarial certification
Required content:
- Determine the amount of share capital
- Specify the company's object and business purposes
- Allocate shareholder shares
- Establish the company's registered office
- Define the Rights and Obligations of the Shareholders
Step 4: Costs / Prices
The prices for setting up a company depend on a number of factors. Are there additional costs for travelling to Dubai for company registration or opening a bank account? In the best case scenario, no travel is necessary at all and all services can be carried out 100% remotely. The costs for setting up a company are around EUR 5,500 - 9,000.
Company formation & account only with GO EU 100% remote! - But what additional costs are incurred?
Update 2025: 10 Minutes initial consultation, 100% free.
Inquire Now
Call us: +49 (0)89 90 42 23 60
Additional costs: Company address (including mail forwarding), annual fees in the free trade zone, bank account opening, and expenses for monthly accounting and annual administrative fees.
Attention: Legal and tax accounting costs are often expensive because tax consultants' salaries are higher.
Legal and administrative costs average from 200 EURO per month plus annual fees.
Attention: Even poorly trained lawyers or large tax firms—where reaching someone in urgent situations is often difficult—charge these prices.
--> Exclusively at GO EU -Access to our own tax advisors and English-speaking employees included at a fixed price! (Costs well under 200 EURO per month)
Step 5: Choosing the right start-up agency
Self-employed people and entrepreneurs benefit from the advantages of setting up a company in Dubai, including a corporate tax rate of 0-9%, anonymity and no data exchange. The economic opportunities, despite bureaucratic obstacles, language barriers and cultural differences, make the UAE an extremely attractive location with the right partner.
Update 2025: 10 Minutes initial consultation, 100% free.
Inquire Now
Call us: +49 (0)89 90 42 23 60
(NEW: Company formation including opening a bank account 100% remote)
2. Disadvantages of starting a company in Dubai?
Dubai has experienced a boom in business and tourism in recent years, and the city continues to attract new residents with financial and business opportunities.
Here are the 3 biggest disadvantages of starting a company in Dubai, especially for Europeans. For each disadvantage, we provide an alternative or a suggested solution.
1.) Banking system of the Emirates
A company in Dubai can be opened quickly, as well as an associated bank account at a local bank. So far so good. However many of your own customers may still be in the EU, i.e. in the SEPA area - meaning that incoming payments can result in very high fees.
But even more than that: your customers’ bank accounts can be blocked or even closed.
Not only does having a Dubai-based company in the imprint create a less favorable impression on European customers, but it can also have even more far-reaching consequences:
For companies that are truly international in terms of their customer base, a Dubai company can certainly still function well, i.e. without criminal consequences or even customer account closures.
You want to emigrate to Dubai and you can only handle European customers with risky hurdles?
But is there an alternative?
Yes, it exists!
We at GO EU have specialized in the countries of Romania, Bulgaria, Dubai and the USA and have permanent employees on site.
That means we have our own team and a large network in Bucharest, as well as in the city of Ruse, Bulgaria (just a 1.5-hour drive from Bucharest Airport). We also have our own tax advisors and operate as a family-run business, with their sons working as part of our accounting team.
We succeeded in getting the tax authorities to allow a corporate tax rate of 7.5% instead of 10% for newly established companies in Bulgaria.
I have already emigrated to Dubai, how can I benefit from this? If you live in Dubai, you already live in a country with 0% income tax. You can set up a company in Bulgaria with 7.5% profit tax.
However, I live in a European country, can I still benefit from it? Yes, you can build up a fully operational company from your home country within the EU or emigrate to Romania or Bulgaria. If done correctly, you only pay your taxes in the source country and not a second time in the country of residence.
2.) High one-off and ongoing start-up costs
"Setting up a company in Dubai costs on average 8-10,000 EURO, plus running costs of an average of 3-6 thousand EURO per year."
In comparison: In Bulgaria you can expect at least 50% lower costs in all areas.
The company can be founded entirely remotely. Unique at GO EU: The account can also be opened without having to travel. In short: the entire setup is 100% remote in 2-3 weeks!
3. Taxes of 9% in the Emirates
Whether mainland or freezone company, the amount for 100% tax exemption is 375,000 UAE dirhams, which corresponds to around 95 thousand euros. Any taxable income above this amount is subject to a corporate tax of 9%.
The so-called small business regulation is fixed until 2026 and is expected to become even stricter from then onwards or may be followed by a further tax increase.
The flat tax in Bulgaria of 10% has not changed since 2007 and will remain in this form for a long time to come.
Update 2025: 10 Minutes initial consultation, 100% free.
Inquire Now
Call us: +49 (0)89 90 42 23 60
(NEW: Company formation including bank account opening 100% remote)
Residency in a high-tax country: Alternative Bulgaria
Bulgaria has a very straightforward tax system: a 10% flat tax for everyone! This means a 10% tax on profits. Unfortunately, expenses incurred outside Bulgaria are not recognized as deductible or for reducing taxable profits, making it almost comparable to a 10% revenue tax.
But that is precisely the great advantage of GO EU! We have specialized in the three countries Romania, Bulgaria and the USA. Employees work on site on a permanent basis. This means that we have our own team and a large network, both in Bucharest and in the Bulgarian city of Ruse (only 1.5 hours drive from Bucharest airport). We also have our own tax advisors and operate as a family-run business, with their sons working as part of our accounting team.
Thanks to this expertise, we have created a setup that allows us to request a corporate tax rate of 7.5% instead of 10% from the tax authorities for newly founded companies in Bulgaria. And it's completely legal and can be implemented by almost anyone, via GO EU!
If the topic of company formation in Romania, Bulgaria and the USA is of interest to you, we look forward to hearing from you.
Update 2025: 10 Minutes initial consultation, 100% free.
Inquire Now
Theodor
Published on 30 January, 2025 / Answer
The costs in Dubai are now higher than in Switzerland if I want to stay in the "nice places" in Dubai and eat or go out there. If the money runs out, I have to leave the country quickly or even leave everything behind if I'm in debt - otherwise I risk going to prison.
Grigor
Published on 31 January, 2025 / Answer
The enslaved workers in Dubai should not be underestimated. They barely survive.
Magnus
Published on 31 January, 2025 / Answer
Let's say I decide to go to Bulgaria instead of Dubai. All in all, it costs only half as much, including annual costs, or even less. But I still have to pay 10% income tax in Bulgaria, right?
Thomas Hofmann
Published on 31 January, 2025 / Answer
Good point! If you set up a Bulgarian company, a corporate tax of 7.5-10% applies, as well as 5% dividend tax on profit distributions. There is no additional income tax. However, if you live in Bulgaria, you can declare foreign income as dividends, instead of as personal direct income, which is subject to 10% income tax. Not easy to get through with the authorities. However, we have pushed this through several times for our clients. For example: You are a resident in Sofia and operate a US LLC. This is tax-free in the USA. The profits must now be distributed to your own private account in Bulgaria and taxed in Bulgaria. Normally, 10% income tax is due. However, with good structure, the income is taxed as dividends at just 5%. That means only 5% tax in total!
Friedrich
Published on 01 February, 2025 / Answer
Thomas, that sounds too good to be true! 5% taxes in total and some social security contributions, is that it?
Thomas Hofmann
Published on 02 February, 2025 / Answer
Exactly, there are also social security contributions in the form of health insurance, since you don't pay yourself a salary in Bulgaria. 5% tax and an additional 1% social security contributions. 6% total tax burden if you live in Bulgaria and have a US LLC.
Gabriel
Published on 21 March, 2025 / Answer
I thought setting up in Dubai would be easy, but it’s way more complicated and expensive than people say. At least this blog post says the truth.
Leave a comment