🇦🇪 UAE’s Business Revolution: Are Dubai’s New Freezone & Tax Rules a Game-Changer or a Risk for Expats?

By Richy Shofield, Founder & CEO, Shofield Business Consultancy
Chairman, Main Shofield Group, Inc.

🚨 What’s Changed in 2025? Key Highlights

• Free Zone Companies Can Operate in Mainland Dubai Without a Local Partner
  • ✅ New permits/licensing from Dubai Department of Economy and Tourism (DET) required.
  • ✅ Must maintain separate financial records for mainland activities.
  • ✅ Full compliance with all mainland regulations still mandatory.

• UAE Corporate Tax: Now 9% on Profits Over AED 375,000
  • ✅ Freezone companies may still benefit from a 0% tax rate if:
    • Income is “qualifying income” (typically from outside UAE/mainland).
    • Economic substance requirements are met.
    • No non-qualifying income from UAE mainland.
  • ⚠️ Income from mainland activities is subject to the 9% tax, unless strictly structured.

• Offshore Company Formation: Still Possible, But More Regulated
  • ✅ Offshore companies (JAFZA, RAK ICC, Ajman) ideal for international trading, holding IP, asset protection.
  • ✅ Cannot trade within UAE market directly.
  • 🛑 Recent compliance updates mean stricter KYC, reporting, and real economic activity proof.

🗂️ Freezone vs. Mainland vs. Offshore: At a Glance

*0% only if FTA criteria met

📋 Step-by-Step: How to Set Up in a UAE Freezone

1. Define Your Activity – What are you actually doing? Some activities are regulated!
2. Pick Your Freezone – Consider industry focus, location, visa quotas, costs.
3. Choose Structure – FZE (single shareholder) or FZC (multi-shareholder).
4. Reserve Your Trade Name – It must be unique and compliant.
5. Submit License Application – With business plan, passport, and other docs.
6. Sign Office Lease – Can be flexi-desk, virtual, or full office.
7. Get Approvals & Pay Fees – Initial, security, final.
8. Process Visas – For yourself, partners, and employees.
9. Open Bank Account – Leverage our connections for a smooth process.

💡 Pro Tips for 2025

• Consult a pro on tax structure – The wrong setup can trigger unexpected 9% tax.
• Keep separate books for any mainland activities.
• Stay on top of compliance – Both FTA and your Freezone are enforcing new rules more strictly.
• Consider offshore only for non-UAE trading/investment or IP holding.

🛠️ Use Cases: Who Should Choose What?

• Freezone: E-commerce, services, tech, B2B, international trade, startups seeking visas.
• Mainland: Retail, restaurants, construction, any business needing full UAE market access.
• Offshore: Asset holding, international consulting, IP, global trading (not UAE).

📊 Infographic Suggestion (for LinkedIn/blog post)

Insert a horizontal flow chart showing the step-by-step process, or the comparison table above as an image.

✨ Why Work With Shofield Business Consultancy?

• Personalized structuring – No generic packages; you get a setup built for your goals, passport, and business model.
• Regulatory expertise – We keep you safe and ahead of every new UAE and FTA change.
• End-to-end service – From first advice to visas, compliance, and banking, all managed.
• Speak to an actual founder – For strategic, complex, or high-value cases, you get my personal insight and direct WhatsApp.
• Fast, transparent, and no-nonsense – Launch your UAE entity right the first time.

📞 Your Next Step

• Get your personalized UAE company setup quote:
  mainshofield.com/setupform
• Email: [email protected]
• WhatsApp (Direct): +971 52 268 8461
• International: +1 (415) 523-8633

Don’t risk costly mistakes. If you want clear, experienced advice from someone who’s set up businesses for himself and hundreds of clients—reach out now and build your future the right way.

Have more questions or need a private consultation? I’m always a WhatsApp away.