Frequently Asked Questions - Business Setup in UAE & Saudi Arabia

Free zone structures favor cross-border commerce with 100% ownership and simplified reporting, while mainland entities unlock unrestricted UAE trading and government contracting.

• Free zone – operate internationally, repatriate profits, but use a distributor to sell onshore.
• Mainland – trade anywhere in the UAE, office lease required, many activities now allow 100% foreign ownership.

Budgets vary with license type, visa quota, and workspace requirements. Expect the following ballpark ranges:

• Freelancer permits – roughly AED 7,500–10,000 per year.
• Free zone companies – from AED 12,500 for license only to AED 25,000+ with visas.
• Mainland LLC – typically AED 18,000–30,000 plus office rent.

No. Most commercial and industrial activities allow 100% foreign ownership after the 2021 Commercial Companies Law update. Local sponsors are only required for a limited set of strategic industries.

The 10-year visa is available to investors, entrepreneurs, specialized talent, and high earners.

• Investors – property worth AED 2M+ or public investments.
• Entrepreneurs – company capital over AED 500k with audited revenue beyond AED 1M.
• Specialists – doctors, scientists, coders, creatives with ministry endorsements.
• Employees – monthly salary of AED 30k+ in approved occupations.

Since June 2023, 9% corporate tax applies to net profits above AED 375,000. Profits below that threshold remain at 0%, and qualifying free zone income can retain a 0% rate when economic substance tests are met.

Yes, although onboarding is tighter. Tier-one banks prefer resident signatories, while digital banks streamline approvals.

• Prepare license, MoA, UBO list, and six months of personal bank statements.
• Consider Wio Business or Mashreq NeoBiz for faster onboarding if traditional banks request in-person interviews.

Timelines depend on approvals and the bank you select.

• Free zone license – 3 to 7 working days.
• Mainland license – 1 to 3 weeks if external approvals apply.
• Bank account – 5 to 20 working days once compliance reviews finish.

The Green Visa offers five-year, self-sponsored residency for skilled employees and freelancers, removing the need for a company sponsor and enabling family sponsorship.

Yes. The Ministry of Investment (MISA) grants 100% foreign ownership for most sectors, with exceptions limited to sensitive industries like recruitment, security, and certain consulting niches.

Expect SAR 2,000 in annual license fees plus SAR 10,000 for the initial subscription. Additional costs cover Commercial Registration, Chamber of Commerce, and office lease packages.

Most professional and trading LLCs no longer require capital deposits, but you must declare a realistic capital figure (commonly SAR 10,000–100,000) inside the Articles of Association.

Your Nitaqat color determines visa eligibility. Small firms often receive grace periods, yet hiring at least one Saudi national (often the PRO/GR officer) keeps portals active and accelerates visa issuance.

Understand the four core tax pillars before structuring your entity.

• Corporate Income Tax – 20% on the foreign shareholder portion of profits.
• Zakat – 2.5% on Saudi/GCC-owned equity.
• VAT – 15% on most goods and services.
• Withholding Tax – 5% to 20% on cross-border payments such as royalties or management fees.

Yes. Every entity must secure a National Address. Premium coworking providers offer compliant virtual offices that satisfy inspections while giving you occasional desk access.

Premium Residency is a self-sponsored status that removes the need for a local employer.

• Limited duration – SAR 100,000 per year with renewable rights.
• Permanent – SAR 800,000 one-time fee with property ownership and business rights.

MISA approval now arrives in 1–3 days, Commercial Registration in one day, GM visa in 1–2 weeks, and banking in roughly 2–4 weeks, so most companies go live within 4–6 weeks.