Frequently asked questions

It helps to have a clear description of your business activities, a preferred jurisdiction (mainland or a specific free zone), passport copies and address details for all shareholders and managers, and an idea of your premises and visa needs. Corporate shareholders will usually need constitutional documents that may have to be attested before they are accepted in the UAE.

In many cases, yes. Free zones generally allow full foreign ownership, and the federal Commercial Companies Law permits full foreign ownership of mainland companies for many activities. Some strategic or regulated activities remain subject to restrictions or additional approvals, so the specific activity should be checked before applying.

Timing depends on the jurisdiction, the licensed activity, whether external approvals are required and how quickly documents such as attested shareholder papers are available. We explain the expected steps for your case at the outset, but we cannot guarantee timelines that depend on government authorities or third parties.

Some steps can be completed remotely, depending on the jurisdiction. Others, such as residence visa processing, biometrics or meetings with banks, usually require you to be present in the UAE at certain points. We confirm what applies to your chosen structure before you start.

Typical next steps include setting up premises, applying for visas where needed, preparing the corporate bank account application, registering for Corporate Tax within the Federal Tax Authority timeframes, considering VAT registration and putting bookkeeping in place. Licences also need to be renewed, usually every year.

A mainland company is licensed by the economic department of an emirate and can generally trade across the UAE. A free zone company is licensed by a specific free zone authority; it can trade within the free zone and internationally, while access to the UAE mainland market is regulated. Office, visa and activity rules also differ between jurisdictions.

Not automatically. Free zone companies fall within the UAE Corporate Tax regime and are generally required to register and file returns. A free zone company may qualify as a Qualifying Free Zone Person and benefit from a 0% rate on qualifying income, but only if it meets the conditions set out in the legislation, such as maintaining adequate substance.

Neither option is better in general. The right fit depends on your activity, where your customers are, the premises and visas you need, your ongoing costs and how you plan to grow. We help you compare these factors so that you can make an informed decision.

For a standard resident company, taxable income up to and including AED 375,000 is taxed at 0%, and taxable income above AED 375,000 is taxed at 9%. Different rules apply to Qualifying Free Zone Persons and to large multinational groups.

The Corporate Tax return, and payment of any tax due, is generally required within nine months of the end of the tax period. For a company with a 31 December year end, that usually means by 30 September of the following year. Returns are filed through the Federal Tax Authority’s EmaraTax platform.

Small Business Relief allows eligible resident persons whose revenue does not exceed AED 3 million in the relevant tax period and all previous tax periods to be treated as having no taxable income. It must be elected in the Corporate Tax return. It was originally available for tax periods ending on or before 31 December 2026; the Ministry of Finance has announced an extension to tax periods ending on or before 31 December 2029. Qualifying Free Zone Persons and members of large multinational groups are excluded.

Generally, yes. Most UAE companies, including free zone companies and businesses expecting to claim Small Business Relief, are required to register for Corporate Tax within the timeframes set by the Federal Tax Authority and to file returns. Late registration can attract a penalty.

Records and documents supporting the Corporate Tax position are generally required to be kept for at least seven years following the end of the tax period to which they relate.

Registration is mandatory when taxable supplies and imports exceeded AED 375,000 in the previous 12 months, or are expected to exceed that amount in the next 30 days. A business may register voluntarily if its taxable supplies and imports, or taxable expenses, exceed AED 187,500. Non-resident businesses may need to register regardless of these thresholds.

The standard VAT rate is 5%. Some supplies are zero-rated, such as certain exports, and some are exempt, such as certain residential property and some financial services.

VAT returns, and payment of any VAT due, must be submitted no later than the 28th day after the end of each tax period. Most businesses file quarterly, while some are assigned monthly periods by the Federal Tax Authority. A nil return is still required if there were no supplies in the period.

Yes. We can review previous returns and the underlying records to identify possible errors. Where corrections are needed, we explain whether they can be adjusted in a future return or may require a voluntary disclosure under the Federal Tax Authority’s rules.

Corporate Tax is calculated from accounting profit, VAT returns depend on accurate sales and purchase records, and claiming Small Business Relief requires reliable revenue figures. Good bookkeeping also helps you track cash flow, profitability and amounts owed, and makes bank reviews and investor requests easier to handle.

As a general guide, record transactions at least weekly and reconcile bank accounts monthly. Businesses registered for VAT should have their books up to date before each VAT return. The right frequency depends on your transaction volumes.

In many cases, yes. We can work with commonly used cloud accounting platforms and can also help you choose and set up software if you do not have one. The software should be able to produce VAT-compliant tax invoices and the reports needed for your returns.

No. Banks carry out their own due diligence and make independent decisions. What we can do is help you prepare a clear, consistent application and understand the information banks commonly ask for. No consultant can guarantee approval.

Banks commonly request the trade licence, constitutional documents, shareholder and beneficial owner details, a board resolution naming signatories, passports and visas of key individuals, proof of address, a business profile with expected transactions, and evidence of source of funds and source of wealth. Requirements vary by bank and by case.

Factors include the licensed activity, the countries involved in the business and its ownership, the complexity of the structure, the company’s presence in the UAE, and whether the expected transactions are consistent with the business profile. Each bank applies its own policies.

No. Scaleon’s primary market is the UAE. We support clients in Bahrain and Singapore by working with local service providers in those countries, and we explain at the outset which parts of the work are carried out by those providers.

In Bahrain, VAT is charged at a standard rate of 10% and registration is mandatory once annual taxable supplies exceed BHD 37,500, with voluntary registration available above BHD 18,750. In Singapore, GST is charged at 9% and registration is generally required once taxable turnover exceeds S$1 million, assessed on a retrospective or prospective basis. Other rules can apply to non-resident and overseas businesses.

Yes. Every Singapore company must have at least one director who is ordinarily resident in Singapore, and must appoint a company secretary within six months of incorporation. Founders based overseas often meet the director requirement through a nominee arrangement with a corporate service provider.

Start with your business: where your customers are, where you and your team will be based, your activity, any local director or presence requirements, and the ongoing compliance involved. No country is the right choice for every business. Our country comparison tool and consultations are designed to help you weigh these factors.

Fees depend on the scope of work, so we do not publish fixed prices. After understanding your requirements, we provide an itemised quotation that separates government fees, third-party costs and our professional fees, so you can see what each part covers.

Common factors include the jurisdiction and licensing authority, the business activity and any external approvals, the number of shareholders and visas, whether corporate shareholders need document attestation, transaction volumes for bookkeeping and tax work, and the frequency of filings. For Bahrain and Singapore, local service provider costs are also included.

Our quotations list government fees separately from professional fees where they apply. Government fees are set by the relevant authorities and can change, so we confirm the applicable amounts before you proceed and explain any items that cannot be known in advance.