Dubai company setup for UK citizens and residents
Many UK founders move to Dubai for its tax environment and lifestyle. Getting the UK side right matters as much as the UAE setup.
Entry and residency
British citizens receive a visit visa on arrival in the UAE. To live there you need a residence visa, usually as an investor or partner in your own company, or through the Golden Visa if eligible.
UK tax points to review before you move
- Statutory residence test. Whether you stop being UK tax resident depends on days spent in the UK and your UK ties: home, work, family and accommodation. Plan your first tax years carefully; split-year treatment may apply in the year you leave.
- Temporary non-residence. If you return to the UK within five years, some income and gains realised while abroad can become taxable in the UK on your return.
- Where the company is managed. A UAE company whose directors make decisions from the UK can be treated as UK tax resident under the central management and control test. Board decisions should genuinely be taken in the UAE.
- Controlled foreign companies. If a UK company owns the UAE company, UK CFC rules may apply to the UAE profits.
- The UK–UAE double tax agreement helps allocate taxing rights and resolve dual residence.
Choosing a structure
UK consultants and agencies usually choose a free zone such as IFZA or Meydan Free Zone. Founders moving an existing UK business often keep the UK company and set up a UAE company for new contracts, or restructure with advice.
Banking
UK clients generally open UAE accounts without difficulty when the file is complete. UK bank statements, a clear business plan and proof of UAE residence make the process faster. See Corporate bank account.
Practical points
- UK driving licence holders can usually convert to a UAE licence without a test. See Driving licence conversion.
- Documents such as degree certificates and marriage certificates need an apostille in the UK, then UAE attestation. See Document attestation.
- Consider your UK pension, ISA and property position before departure.
Common questions
Do I have to close my UK company?
Not necessarily. Many owners keep a UK company, but its management and profits remain within UK rules. Review with your UK accountant.
Will I pay UK tax on my UAE salary?
Once you are non-UK resident, UAE employment income is generally outside UK tax. The key is establishing non-residence correctly.
Official sources
We check our guidance against these official sources. Always confirm current fees and rules before acting.