# UAE Company Formation, Corporate Tax & VAT

> The UAE taxes business profits at 9% above AED 375,000 under its corporate tax law (in force for financial years starting on or after 1 June 2023), charges VAT at 5%, and is moving to mandatory e-invoicing from January 2027 for larger businesses. Companies can be set up on the mainland, with 100% foreign ownership allowed for most activities, or in one of the free zones, where qualifying income can be taxed at 0%.

## Who this is for

- Indian founders setting up in Dubai or Abu Dhabi
- Indian companies opening a UAE subsidiary
- UAE businesses needing corporate tax and VAT compliance
- NRIs in the UAE running a business

## Services

- [Dubai Mainland Company Formation](https://www.industax.com/services/uae-business/dubai-mainland-company-formation) — Mainland LLC with a DET trade licence and 100% foreign ownership for most activities
- [UAE Free Zone Company Setup](https://www.industax.com/services/uae-business/uae-free-zone-company-setup) — Free zone companies and the 0% qualifying income regime
- [UAE Corporate Tax Registration & Return](https://www.industax.com/services/uae-business/uae-corporate-tax-registration-return) — EmaraTax registration, small business relief and annual return
- [UAE VAT Registration & Returns](https://www.industax.com/services/uae-business/uae-vat-registration-returns) — 5% VAT registration, returns and refunds
- [UAE Accounting, Audit Support & E-invoicing](https://www.industax.com/services/uae-business/uae-accounting-e-invoicing) — IFRS books, audit coordination and readiness for 2027 e-invoicing

## FAQs

### Is there corporate tax in the UAE now?

Yes. Since financial years starting on or after 1 June 2023, taxable profits above AED 375,000 are taxed at 9%. Small businesses with revenue up to AED 3 million can elect Small Business Relief, which has been extended to tax periods ending by 31 December 2029.

### Mainland or free zone — which is better?

Free zones suit businesses trading internationally or with other free-zone companies, and can offer 0% tax on qualifying income. Mainland companies can trade anywhere in the UAE without restriction and are needed for many local contracts.

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Publisher: Indus Tax — CA-led tax and compliance firm (https://www.industax.com). Contact: info@industax.com, 9059139258.
This is general information, not advice for your specific facts.