Company Registration in the United Arab Emirates (UAE)
The United Arab Emirates is one of the foreign jurisdictions most often chosen by Polish entrepreneurs – and not without reason. No personal income tax, VAT at just 5% and a double taxation treaty with Poland make taxation under local rules fully lawful and can significantly reduce a company's costs. Add to this the reputational aspect: the UAE is a recognised international business hub.
Which type of company to choose?
The UAE offers several types of company, differing in the scope of possibilities and formalities:
- Offshore company – the simplest form, 100% of shares in the client's hands, registration almost entirely remote. Limitation: such a company cannot carry out operational activity in the Emirates or employ staff under employment contracts.
- Free Zone company – business in a chosen free economic zone, a full 100% of shares, the ability to employ staff and obtain a resident visa. Requires a one-time presence in Dubai.
- Local company (mainland/LLC) – following a recent amendment of the commercial companies law, a foreign investor may hold 100% of shares without having to involve a local partner, which used to be required.
Your plans must, however, be analysed carefully; in practice an offshore company often turns out to be the most beneficial solution.
How long does registration take?
If you have been to the Emirates before and hold a Unified Number (UID), the whole process – fully remote – can be completed in 7–14 working days. If not, a one-time visit in person is necessary to obtain an Emirates ID, which involves visa formalities (medical tests, fingerprints). By comparison, registration in the Caribbean or in Costa Rica usually takes 30–45 days.
What should you pay attention to?
Registering the company itself is a simple step. The key is to properly assess the risk of a permanent establishment and to ensure so-called economic substance – real evidence that the company actually operates in the Emirates and does not exist only on paper. Without it, the Polish tax authorities may treat such a structure as an artificial construct serving only to circumvent tax rules.
How do we help?
We advise on choosing the appropriate type of company, matched to the planned business and your expectations regarding residency, we guide you through the whole registration process and we help protect the structure from tax risk on the Polish side. We also support clients who, besides registering a company, are considering a formal change of tax residency.
Result: a company registered in optimal time, in a form matched to real business needs, and protection against the risk of the structure being challenged by the Polish tax authorities.
