Frequently asked questions

VAT obligations depend not only on the place of registration but also on where the business activities take place. VAT becomes applicable when the taxable turnover reaches AED 375,000. If a free zone company's trading activities take place abroad, the turnover is not considered taxable as long as the transactions occur outside the UAE. However, if goods are imported to the UAE, VAT at a rate of 5% must be added to invoices and paid.

The UAE is free from personal income tax. However, there is a 5% import tax on goods brought into the country and a 5% VAT on trading or service transactions that occur within the UAE.On June 1, 2023, the UAE introduced 9% corporate tax, however, companies registered in UAE free zones may be granted corporate tax exemption if they meet the criteria for qualifying activities.

The suitability of a free zone company versus an offshore or mainland entity depends on your business model and requirements. However, a free zone setup offers advantages such as 100% foreign ownership, eligibility for resident visas, the ability to conduct business both within and outside the UAE, and greater favorability with banks compared to offshore companies. Additionally, free zones often offer a flexi desk option instead of executive offices, making it a cost-effective way to start a business without unnecessary obligations.

While we strive to make the account opening process as smooth as possible, we cannot guarantee the approval as it ultimately depends on the bank. Each case goes through several bank departments for approval, and the bank may contact you directly for clarifications. Providing a clear picture of your business to the bank increases the chances of successful account opening. We do our best to prepare you and your company for a smooth and fast account opening process.

Your company should be renewed annually, and the cost is typically lower than the initial setup cost. The renewal fees depend on your company package, and you can obtain the price by downloading the Estimate from our website. Company renewal does not require the personal presence of the owner and can be done by your agent. After renewal, the new license must be presented to the bank to extend the bank account, which is included in our renewal service.

You have multiple options for fee payment. You can make payments via bank transfer, cash, or online using a card.

Some banks may consider opening an account for a client without a residence visa but may require high balances or investment commitments. The most reliable and quickest way is to obtain a residence visa and Emirates ID, which facilitates account opening in 1-2 days.

Yes, non-residents can open a bank account without an Emirates ID. Instead, they must provide a valid passport, proof of residence (such as a utility bill), and financial documents like bank statements to verify their income sources.

Some of the most non-resident-friendly banks in Dubai include:

• Emirates NBD – Offers savings accounts for non-residents with online banking.
• Mashreq Bank – Provides digital banking services and investment-friendly accounts.
• RAKBANK – Suitable for individuals seeking easy international transactions.
• ADCB (Abu Dhabi Commercial Bank) – Offers multi-currency savings accounts.

The choice of bank depends on your financial profile, minimum balance requirements, and banking needs.

If you previously held a UAE bank account as a resident but have left the country, your bank may require proof of financial activity and may apply new restrictions. Some banks allow non-residents to maintain accounts if they meet minimum balance requirements, while others may close the account due to residency status changes. It’s advisable to check with your bank in advance.