Thinking About Starting a Business in Dubai as a UK Citizen? Read This First!
A lot of people from the UK are looking at Dubai as the perfect place to start a business—and it's easy to see why. Dubai has tax-free zones, low costs to get started, and it's a major global hub. You can register a company quickly, you get flexible ownership rules, and there's plenty of room for all types of entrepreneurs—whether you're freelancing, running a small business, or working online.
If you're serious about setting up shop in Dubai, it's smart to know the right steps. The good news? The process is much easier than most people think, especially if you get help from the right experts. In this simple guide, we'll explain what UK citizens need to know, from picking your business type to sorting your taxes.
Need a hand? Chat with Avyanco for step-by-step help on setting up your UAE business!
Why Are UK Entrepreneurs Flocking to Dubai?
- No personal income tax
- Corporate tax is only 9% (and only after you hit a certain profit)
- Many free zones let you keep 100% of your profits, tax-free
- You can own your business outright—no need for a local partner in most cases
- Getting a residency visa is pretty simple
- Office and staffing costs are usually lower than in the UK, and you can even work from a "virtual office"
- The legal system is solid and supportive for business owners
- English is widely spoken, and banks are used to working with international clients
All this means you get to keep more of your hard-earned money and focus on growing your business globally.
Which Company Structures Can UK Citizens Choose?
Most UK citizens pick a Limited Liability Company (LLC) for local business. An LLC lets you operate anywhere in the UAE, hire staff, and rent office space. The best part? Thanks to new rules, you can own 100% of your company in many industries, with no local sponsor needed.
Where Can You Register Your Company?
- Mainland: Do business anywhere in the UAE, great for working with local companies or government contracts.
- Free Zone: Special zones with relaxed rules for foreign business, fast setup, no customs duties, flexible office options.
- Offshore Company: Mostly for holding assets or international trade (can't trade within UAE or get residency).
Step-by-Step: How to Set Up a Dubai Business from the UK
- Pick Your Business Activity: Trading, consulting, tech, marketing, etc.—this decides your license type.
- Choose Mainland or Free Zone: Consider where your clients are, physical office needs, and if you want to work with government or local businesses.
- Select a Legal Structure: LLC, sole establishment, or branch of a foreign company.
- Reserve Your Company Name: Pick a unique, UAE-compliant name and get initial approval.
- Gather and Submit Documents: Passport, photo, UK address proof, visa (if in UAE), business plan (optional), NOC (if needed).
- Get Your License: Trade license issued once approved (need bank account before trading).
- Apply for a UAE Residence Visa: Needed for living/working in Dubai, banking, taxes.
- Open a Corporate Bank Account: Essential for business transactions in Dubai.
Can You Run a Dubai Business Remotely from the UK?
Yes, but you might still owe UK taxes if you control things from the UK. Make sure decisions happen in Dubai, or have a UAE-based director. Always get UK and UAE tax advice to avoid double taxation.
Tax Residency & Double Tax
The UAE offers 0% personal income tax and up to 9% corporate tax. But if you're still a UK tax resident, you'll be taxed on global income—including UAE profits. There's a UK-UAE treaty, but you must prove your business is truly run from Dubai to avoid double tax.
Common Mistakes UK Entrepreneurs Make
- Assuming UAE company = no UK tax
- Picking the wrong jurisdiction
- Ignoring compliance rules
- Not getting tax advice in both countries
- Mixing personal and business money
A good consultant, like Avyanco, can help you avoid all these headaches.
How Avyanco Can Help
- Help you pick the right company type
- Handle paperwork, approvals, licensing, visas, banking
- Coordinate with UK tax experts
- Support with renewals, compliance, bookkeeping
Want to get started? Call Avyanco at +971 50 398 9000 or book a consultation now!
FAQs
- Can UK citizens own 100% of a Dubai business? Yes, in most free zones and many mainland sectors.
- Will I pay UK tax on Dubai profits? If you're a UK tax resident and run your business from the UK, yes—you might owe UK tax. Get advice first.
- Do I need to live in Dubai? No, but being there helps with banking, taxes, and business visas.
- Can I move my UK business to Dubai? You can't directly transfer it, but you can open a new company or branch in Dubai.
- How fast can I register a business? If your documents are ready, you could be set up in 3–5 days with expert help.
