Doing business in the United Arab Emirates (UAE) calls for different planning than in Türkiye: federal tax rules, a separate licensing authority in each emirate and the free zones' own regulations all play a part. This page is for entrepreneurs and Turkish companies considering a company in Dubai, or wanting to put the accounting and tax affairs of an existing UAE company in order. Applications in the UAE are made through the persons and channels the relevant authority accepts; we support you with planning the process, preparing documents, accounting and tax compliance, and obligations on the Turkish side. Meetings can be held in Turkish, English, Arabic, Russian and Kazakh.
Company formation and business setup
The first decision in Dubai is whether the company will be set up outside the free zones (mainland) or in a free zone. Mainland licences are issued by the Dubai Department of Economy and Tourism (DET), free zone licences by the relevant free zone authority. Since the amendment made by Federal Decree-Law No. 26 of 2020, foreigners can set up mainland companies with 100% foreign ownership; activities with a strategic impact are outside this general rule.
| Mainland (Dubai) | Free zone | |
|---|---|---|
| Licensing authority | DET | The relevant free zone authority |
| Foreign ownership | 100% possible; except activities with strategic impact | 100% possible |
| Sales in the UAE market | Direct sales allowed | Direct sales generally not allowed; an authorised mainland distributor or a mainland branch or company is needed |
| Customs | Customs duty applies on import | 0% customs duty on goods imported into the free zone; duty arises when goods move to the mainland |
| Corporate tax | 9% on taxable income above AED 375,000 | For a free zone person meeting the conditions, 0% on qualifying income, 9% on other income |
Typical formation steps:
- Defining the activity and checking whether it needs special approval.
- Choosing mainland or free zone, the company type and the shareholding structure.
- Obtaining initial approval for the trade name.
- Translation and attestation of shareholder and company documents (see the attestation section below).
- Signing the memorandum of association, showing a business address and obtaining the licence.
- Post-licence steps: bank account, tax registrations, visas and, if needed, a customs code.
To assess together which structure suits your activity and where your customers are: Contact
Accounting and bookkeeping
UAE corporate tax legislation requires records and documents supporting the tax return to be kept for 7 years after the end of the relevant tax period. A proper accounting system is therefore needed from formation onwards.
- Preparing a chart of accounts, document flow and monthly closing calendar suited to the company's activity.
- Checking sales and purchase invoices for VAT, bank reconciliations and tracking of receivables and payables.
- Monthly or quarterly management reports; reporting aligned with the parent company or shareholder in Türkiye.
- Recording transactions with the Turkish shareholder company at the same amount and date on both sides.
- Setting up accounting software and training the company's staff. Accounting system setup and training
For conversions between AED, TRY and other currencies: currency converter. To discuss your accounting set-up: Contact
Tax advisory: VAT and corporate tax
The two main federal taxes in the UAE are VAT and corporate tax, both administered by the Federal Tax Authority (FTA). Corporate tax is governed by Federal Decree-Law No. 47 of 2022 and applies to financial years starting on or after 1 June 2023.
| VAT | Corporate tax | |
|---|---|---|
| Rate | 5% | 0% on taxable income up to AED 375,000, 9% on the excess |
| Registration | Mandatory if taxable supplies exceed AED 375,000 in the previous 12 months or the next 30 days; voluntary from AED 187,500 | Taxable persons register with the FTA and obtain a tax registration number |
| Tax period | Quarterly for annual turnover below AED 150 million, monthly above | The company's financial year |
| Return and payment | Within 28 days of the end of the tax period | Within 9 months of the end of the tax period |
- Free zone companies: to count as a qualifying free zone person, a company must maintain adequate substance in the UAE, derive qualifying income and meet the other conditions in Cabinet and Ministerial decisions. If the conditions are not met, the general 9% rate applies.
- Small business relief: UAE resident persons whose revenue does not exceed AED 3,000,000 in the current and all previous tax periods may elect, separately for each period, to be treated as having no taxable income. Qualifying free zone persons cannot make this election. The periods to which the relief can apply are limited by Ministerial decision, so the current position should be checked before filing.
- Foreign businesses: according to the FTA, the VAT registration threshold does not apply to businesses not established in the UAE.
- Tax residency certificate: the FTA issues residency certificates to UAE tax residents so they can benefit from double tax agreements. Juridical persons must have been established for at least 12 months; branches of foreign companies and offshore companies cannot obtain it.
For registrations, the filing calendar, free zone conditions and invoicing: Contact
Visa and PRO services: residence, work permits and Emirates ID
For staff working on the mainland, the work permit is obtained through the Ministry of Human Resources and Emiratisation (MOHRE); residence visa and Emirates ID procedures are handled by the residency authorities (GDRFA in Dubai, ICP at federal level). According to the Dubai government portal, the typical flow for an employee is:
- The employer applies for a work permit through MOHRE.
- An entry permit is issued; the employee enters Dubai within 60 days to complete the process.
- The employee takes a medical fitness test at an authorised centre.
- The employer applies online for the residence visa; it is issued within 48 hours.
- Biometrics (fingerprints and photo) are given for the Emirates ID.
A residence visa obtained this way is valid for 2 years and can be renewed for similar periods. The route differs for shareholders, free zone employees and family members. To prepare the document list, plan the timing and keep it consistent with company records: Contact
Bank account assistance
Opening a corporate account is entirely the bank's decision; the documents required and the time taken vary by bank and activity. Banks usually ask in detail about the company's activity, shareholding, beneficial owners and source of funds. At this stage we help with:
- Making the file of licence, memorandum of association and shareholder documents consistent.
- Describing the activity, expected transaction volume and customer and supplier countries in a clear business plan.
- Preparing the financial statements and shareholding documents of the Turkish shareholder company.
- Supporting answers to the bank's follow-up questions with documents.
For opening a bank account in Türkiye: Opening a bank account. To prepare your file: Contact
Corporate services: licence renewal and company data updates
After formation, company data must be kept up to date with the licensing authority and other bodies:
- Renewing the licence before it expires and tracking the business premises contract accordingly.
- Notifying the licensing authority of changes in shareholders, managers, activity, name or address, and updating the memorandum of association.
- Reflecting changes in FTA records, bank records and, where relevant, the customs registration.
- Keeping corporate documents, resolutions and powers of attorney in an orderly archive.
Failing to renew the licence also affects other registrations tied to it, such as the customs code. If you are planning a change: Contact
Payroll and HR (WPS)
Private sector employers registered with MOHRE pay wages through the Wage Protection System (WPS). Payments are made through banks, exchange houses or financial institutions authorised by the Central Bank of the UAE.
- The previous month's wages must be paid by the 1st of each month. If late, alerts start from day 2 and new work permits can be suspended from day 5; measures become stricter the longer the delay.
- Wages can be paid in AED or in another currency agreed by the parties.
- Monthly payroll calculation, payslips, leave and service records, and preparing the WPS payment file.
- Checking that the wage in the employment contract matches the wage reported to WPS.
To set up your payroll: Contact
Business support: customs registration, document attestation, import and export
- Customs code: under Dubai Customs rules, every natural or legal person dealing with the customs administration must register for a customs code. The application requires a valid licence and a copy of the sponsor's passport; the customs code is valid for as long as the licence.
- Document attestation: for documents issued abroad to be used in the UAE, they must be certified by the competent authorities of the issuing country and go through the attestation process of the UAE Ministry of Foreign Affairs (MOFA). In some countries the attestation application can be made online through UAE missions abroad. Whether an apostille is sufficient should be confirmed in advance with the body receiving the document.
- Import and export: keeping goods movements between free zone and mainland, customs declarations and VAT records consistent with each other.
- For the export and import side from Türkiye: Customs and foreign trade
To plan the document list and your trade flow together: Contact
Business acquisition and investment advisory
For those who would rather take over an operating business in the UAE than set one up, we provide advisory support. We do not act as a commission-based intermediary between buyer and seller; our support aims to prepare the decision of the party we represent with documents.
- Finding a business: defining activity, licence type and size criteria that fit the investment goal.
- Due diligence: reviewing the licence and scope of activity, FTA registrations and past returns, WPS and employee obligations, lease contracts, bank records, debts and ongoing contracts.
- Transfer procedures: licensing authority approval for a share transfer or change of ownership, updating the memorandum of association and changing bank and FTA records.
- Post-acquisition: taking over the accounting system, setting up the tax calendar and adapting visa and payroll procedures to the new structure.
- Permitted investments: checking whether the planned activity is open to foreign ownership and which licensing authority it falls under.
Our approach to reviews: Acquisitions and due diligence. If you are looking at a business: Contact
The Türkiye side
Türkiye and the UAE have a double tax agreement on taxes on income. How it applies, and the obligations in Türkiye, depend on who owns the UAE company and how. Double taxation
- Payments: a company in Türkiye paying a UAE company must obtain the recipient's certificate of residence before payment in order to apply the treaty rate. On the UAE side this certificate is issued by the FTA. Tax on payments abroad
- Foreign participation exemption: for dividends a Turkish company receives from a foreign subsidiary to be exempt, the subsidiary must bear a tax burden of at least 15% in its country (together with at least a 10% holding and at least 1 year holding period). As the general UAE corporate tax rate is 9%, this condition is usually not met; the dividend is subject to Turkish corporate tax and tax paid in the UAE can be credited. Dividend tax
- Controlled foreign company: if the Turkish company controls at least 50% of the UAE company, 25% or more of the UAE company's gross revenue comes from passive income such as interest, dividends, rent and licence fees, its tax burden is below 10% and its revenue exceeds the foreign currency equivalent of TRY 100,000, the UAE company's profit is taxed in Türkiye even if not distributed.
- Related party transactions: sales, services and loans between the Turkish company and the UAE company must be at arm's length and reported on the form attached to the corporate tax return. Transfer pricing
- Individual shareholders: dividends a Turkish full taxpayer individual receives from a UAE company fall within the scope of declaration in Türkiye. For people moving to Dubai, whether Turkish tax liability continues is assessed separately based on domicile and stays of more than 6 months in a calendar year.
For UAE investors planning to invest in Türkiye: Foreign investors. To review your structure in both countries together: Contact
Frequently asked questions
Mainland or free zone?
If your customers are mainly inside the UAE and you will sell directly, the mainland; if your activity is mostly sales abroad, re-export or services within the zone, a free zone comes to the fore. The 0% corporate tax rate applies only to the qualifying income of free zone persons meeting the conditions.
Does a company with low profits still file a corporate tax return?
Taxable persons register with the FTA and file a return. The 0% rate on taxable income up to AED 375,000 does not remove the registration and filing obligation.
When do I need to register for VAT?
Registration is mandatory if your taxable supplies exceed AED 375,000 in the previous 12 months or the next 30 days. Voluntary registration is possible above AED 187,500.
Does setting up a company in Dubai remove my Turkish tax?
No. Persons and companies that remain resident in Türkiye declare income earned from the UAE in Türkiye; if the shareholder is a Turkish company, the controlled foreign company rules are also assessed.
Can a company be set up without leaving Türkiye?
Preparing, translating and attesting documents and the planning stage can largely be done remotely. Steps such as biometrics, the medical test and some bank meetings may require the person to be in the UAE.
What does the service cost?
The scope is set according to the company structure, transaction volume and the services needed. Once we have the details, we prepare a written proposal: Contact
Sources
FTA VAT registration; FTA VAT returns and payments; u.ae VAT returns; Federal Decree-Law No. 47 of 2022 arts. 3, 18, 21, 48, 51, 53, 56; Cabinet Decision No. 116 of 2022; FTA corporate tax FAQs; FTA small business relief; FTA tax residency certificate; u.ae 100% foreign ownership on the mainland; u.ae running a business in a free zone; u.ae payment of wages and WPS; Dubai residence visa for work; Dubai Customs policies booklet; MOFA document attestation; Corporate Tax Law No. 5520 and the Revenue Administration corporate tax return guide (foreign participation exemption, controlled foreign company income, credit for tax paid abroad).