UAE — A Federation of Seven Emirates
The UAE is a federal state consisting of seven emirates, each operating as a small state with an absolute monarchy. In light of the introduction of global automatic exchange of financial information systems, such as FATCA for U.S. citizens and CRS for European countries, UAE tax residency has become increasingly utilized to establish mechanisms that suspend financial information sharing at the emirate level.
Steps to Obtain a Tax Residency Certificate in the UAE:
- Register a foreign company
- Open bank accounts
- Obtain a UAE resident visa
Company Registration in the UAE (Ajman Free Zone)
Why Choose the UAE and Ajman Free Zone?
- 100% tax-free operations
- 100% foreign company ownership
- 100% repatriation of capital and profits
- No personal or corporate income taxes, customs duties, or import/export taxes
- Ability to obtain a tax residency number (bank account information is not subject to exchange)
- Residency visas for owners, family members, and employees
- No bureaucratic paperwork
- No hidden taxes or fees
- Simplified company operations
- Anonymity, confidentiality, and high-level data protection
- Bank accounts in the UAE with a stable currency pegged to the USD (1 USD = 3.675 AED)
- Asset protection from political instability
- Minimal time zone difference (1 hour)
- Affordable labor costs
- No automatic exchange of information agreements with the UAE
- "The New Switzerland": a strong economy, friendly international relations, and a fully financially-oriented nation
- Trade as the primary sector of the UAE economy
- 90% of the population are expatriates
- No terms like "nominee" or "UBO" (Ultimate Beneficial Owner) in the UAE legal lexicon, ensuring no disclosure of UBO information
- Company registration within 24 hours
- Required documentation: only a passport
- Share capital is only nominal
- No audit requirements
- Company renewal requires only payment without additional documents
- Best pricing for any type of company in the UAE
- Own port facilities
- Smallest warehouse options in the UAE (starting from 100 m²) for business startups
- Prime strategic location: 30 minutes from Dubai city center
- Ajman license provides the same benefits as licenses in other UAE free zones
- Options for physical or virtual offices in Dubai business centers
- Final pricing with no hidden costs
- Best prices for additional documents with the shortest processing times (1 day)
- Autonomous free zone, independent of federal regulations by Ajman or UAE authorities
- Services organized in compliance with federal legislation, avoiding conflicts with labor or tourism marketing laws
- The fastest-growing free economic zone in the UAE
- The highest number of representative offices worldwide among UAE free zones
- Leading in developing service packages responding to market needs
Costs for Registration in Ajman Free Zone and Bank Account Opening
- Company registration in Ajman Free Zone: $9,000
- UAE bank account opening: $2,000
Resident Visa and UAE Tax Residency Certificate
A resident visa is required to obtain a UAE tax residency certificate, which can be issued one year after obtaining a UAE resident visa. Visa processing takes up to one month, though most steps can be completed without the founder's involvement. The founder needs to stay for 10–12 days for medical exams, biometric data submission, and visa stamping in the passport. The visa is issued for three years.
Costs for Resident Visa Processing:
- Resident visa processing: $3,500 (one-time fee for three years)
- E-Channel: $580
- E-Channel deposit: $1,000 (refundable upon visa cancellation)
A UAE tax residency certificate is issued for one year.
Cost of services for obtaining the certificate: $4,000.
Costs for certificate notarization are not included and depend on the jurisdiction requiring the certificate.
Important Information:
- UAE tax residency is determined not by the number of days spent in the Emirates but by holding a resident visa and having regular income. Residency status must be maintained by visiting the UAE every six months.
- A tax residency certificate can be obtained only one year after acquiring a resident visa.
- The tax residency certificate is valid for one year.
- UAE legislation does not confirm the absence of taxation for non-citizen tax residents in the UAE.
- It is not possible to make an official inquiry to UAE authorities to confirm the absence of taxation risks on global income for UAE tax residents.
- Legal Bridge's Opinion: There is no guarantee that UAE authorities will not introduce global income taxation for tax residents in the future.
- Complexity in inheritance of assets in the UAE.
