Business Relocation to the UAE

VALEN provides end-to-end legal and corporate support in the United Arab Emirates — from company formation and accreditation of branches or representative offices to ongoing legal advisory for your operations.

With extensive experience in UAE business setup, we offer turnkey company formation as well as targeted support with specific matters, such as: providing a legal address, licensing and assistance during tax audits.

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Valentina Khlavich

Managing Partner

Law degree in the Russian Federation
Studied at the University of Passau, Germany
Foreign Languages: English, German
Since 2007 a lawyer in Beiten Burkhardt lawfirm
Since 2012 founder and managing partner at VALEN

Since 2019 in the list of

UAE Company Formation

Businesses in the UAE fall into two main categories: onshore (mainland) companies, which are permitted to operate within the UAE market, and offshore companies, which are restricted from conducting commercial activity inside the country.

Onshore options include:

Mainland Companies — authorized to conduct business across the UAE.
Free Zone Companies — allowed to operate within the designated free zone and internationally.

Common onshore structures:

Limited Liability Company (LLC) — formed in partnership with a UAE national who holds 51% of company shares.
Free Zone Company — 100% foreign ownership permitted.
Offshore companies cannot conduct business in the UAE or lease office space for operational purposes. They typically serve as holding structures for asset management, investment, and real estate acquisition. Business owners and their families are eligible for UAE residence visas.

Corporate Bank Account Opening

Offshore company bank accounts offer a cost-effective solution but come with a more complex compliance process and higher minimum balance requirements. These accounts are classified as non-resident and subject to stricter regulations.

Onshore company bank accounts require higher setup costs but allow the business owner to obtain an Emirates ID. These resident accounts carry notable advantages including simplified requirements, lower minimum balance thresholds, access to a wider range of local banks etc.

UAE Taxation Overview

The United Arab Emirates is traditionally perceived as a tax-free jurisdiction, since the income of individuals who are tax residents of the country is not taxed, and the burden on business is still absent or minimal.

However, the tax-free image does not quite correspond to reality:

Businesses must renew their trade license annually.
Most goods and services are subject to 5% VAT.
Corporate income tax applies at a 9% rate.

0% corporate tax applies in the following cases:

Small Business Relief — annual revenues not exceeding AED 3 million (approx. €850,000).
Qualifying Free Zone Persons (QFZP) — meeting specific free zone criteria.

Immigration and Residency in the UAE

The UAE does not issue traditional residence permits; instead, it grants residence visas valid for 1 to 10 years depending on business activity and investment level.

One of the most efficient pathways to residency is setting up your own company — particularly in a free zone, which offers a straightforward and cost-effective entry point.