Key Highlights:

• Dutch entrepreneurs can now own 100% of their Dubai company in most sectors.
• Dubai offers 0% corporate tax up to AED 375,000 and no personal income tax.
• Free zone and mainland company setups are both available to foreign investors.
• The Netherlands-UAE double taxation treaty provides tax relief for Dutch residents.

Dubai’s strategic location, favorable business environment, and tax advantages have made it an attractive destination for Dutch entrepreneurs seeking to expand their operations into the Middle East and beyond. 

With over 18,000 new companies registered in Dubai in the first quarter of 2025 alone, the Emirates continue to offer compelling opportunities for international business establishment.

Continue reading this article to learn more about setting up your business in the UAE from the Netherlands. 

Why Dubai is Ideal for Dutch Entrepreneurs

Dubai presents several key advantages for Netherlands-based founders looking to establish a company:

Tax Benefits: The UAE offers an attractive tax environment with 0% corporate tax on taxable income up to AED 375,000 and 9% on income exceeding that threshold. Many free zones provide complete tax exemptions for specified periods, and there’s no personal income tax.

100% Foreign Ownership: Dutch nationals can now own 100% of their Dubai company in most business sectors, eliminating the need for local partners. This change has been a game-changer for foreign entrepreneurs.

Strategic Location: Dubai serves as a gateway between Europe, Asia, and Africa, providing excellent connectivity for trade and business expansion.

Double Taxation Agreement: The Netherlands and UAE have a comprehensive double taxation treaty in place since 2010, providing tax relief for Dutch residents operating in both jurisdictions.

Understanding Dubai’s Business Jurisdictions

When establishing a company in Dubai, you must choose between three main jurisdictions:

Mainland Companies

• Ownership: 100% foreign ownership now permitted in most sectors
• Market Access: Can trade anywhere in Dubai and across the UAE without restrictions
• Licensing: Requires DED (Department of Economic Development) license
• Office Requirements: Physical office space with tenancy contract required

Free Zone Companies

• Ownership: 100% foreign ownership guaranteed
• Tax Benefits: 0% corporate tax, full profit repatriation, no customs duties
• No Limitations: Dubai Executive Council Resolution No. 11 of 2025 allows free zone companies to operate anywhere within Dubai after obtaining required permits. 
• Office Options: Flexi-desk and virtual office solutions available

Offshore Companies

• Purpose: Ideal for holding assets, international trading, or wealth protection
• Restrictions: Cannot conduct business activities within the UAE
• Benefits: Asset protection and international business operations

Step-by-Step Company Formation Process

1. Define Your Business Activity

Dubai offers over 2,000 registered business activities across different sectors. Your choice of business activity will determine:

• License type required
• Regulatory approvals needed
• Office space requirements
• Government fees

2. Choose Your Legal Structure

Common options for Dutch entrepreneurs include:

• Limited Liability Company (LLC): Most popular for mainland setup
• Free Zone Entity: Ideal for international operations
• Branch Office: For extending existing Dutch operations

3. Reserve Your Trade Name

Your business name must comply with Dubai’s naming conventions:

• No religious, political, or offensive language
• Cannot duplicate existing registered names
• Must reflect business activity (for mainland companies)
• Name reservation valid for 6 months

4. Select Jurisdiction and Location

For Mainland Setup: Choose a location based on business needs and budget. Office rent ranges from AED 15,000 to 50,000 annually.

For Free Zone Setup: Popular options include:

• DMCC (Dubai Multi Commodities Centre) Business Setup 
• DIFC (Dubai International Financial Centre)
• Dubai Internet City Business Setup 
• JAFZA (Jebel Ali Free Zone) Business Setup 

5. Apply for Initial Approval

Submit your application with required documents:

• Passport copies of all shareholders
• Business plan outlining activities
• Proof of residence in the Netherlands
• UAE entry stamp (if previously visited)

6. Draft Memorandum of Association (MOA)

For LLCs and some free zone setups, you’ll need an MOA that outlines:

• Company structure and ownership
• Business activities
• Capital requirements
• Shareholder responsibilities

The MOA must be drafted in Arabic and notarized. Digital notarization services are now available.

7. Secure Office Space

Mainland Companies: Require a physical office with a valid tenancy contract registered with Ejari.

Free Zone Companies: Options include:

• Flexi-desk: Shared workspace with business center facilities (AED 12,500 annually)
• Virtual Office: Registered address without physical presence

8. Obtain Required Licenses and Approvals

License Types:

• Commercial License: For trading activities (AED 12,000 annually)
• Professional License: For service-based businesses
• Industrial License: For manufacturing activities
• Tourism License: For tourism-related services

9. Register with Dubai Chamber of Commerce

While not always mandatory, Chamber registration provides:

• Business credibility and networking opportunities
• Access to trade fairs and business events
• Market insights and business support services
• Certificate of Origin services for international trade

10. Open Corporate Bank Account

Required documents to open a corporate bank account typically include:

• Trade license copy
• Shareholder documents and passports
• Business plan and financial projections
• Proof of business activities
• Emirates ID of signatories

Banking requirements can be challenging for non-residents, but proper documentation and working with experienced consultants can streamline the process.

11. Apply for UAE Residency Visas

Investor Visa Requirements:

• Minimum investment of AED 2 million for standard investor visa
• AED 10 million for premium investor visa
• Medical tests and Emirates ID application required

Visa Process Steps:

1. Medical Tests: Mandatory health screening for residents 18 and older, including blood tests and chest X-rays to screen for communicable diseases
2. Emirates ID Application: Takes 5-10 business days to process, costs AED 100 per year of validity
3. Visa Stamping: Final step to activate residency status
4. Post-Registration Compliance

Tax Obligations:

• VAT registration required if annual turnover exceeds AED 375,000
• Corporate tax filing required within 9 months of fiscal year-end
• Transfer pricing documentation for controlled transactions

Ongoing Requirements:

• Annual license renewal
• Maintain registered office address
• Submit annual returns to relevant authorities

Costs and Timelines

1. Typical Costs for Dutch Entrepreneurs

• Free Zone Setup: AED 10,000 – 25,000 ($2,700 – $6,800)
  Mainland Setup: AED 25,000 – 50,000 ($6,800 – $13,600)

2. Additional Costs:

• Office rent: AED 15,000-50,000 annually
• Visa processing: AED 3,000 per person
• Professional services: AED 5,000-15,000

3. Timeline Expectations

Fast-Track Options:

• Free zone setup: 1-3 days with complete documentation
• Online business setup: 15 minutes via government Basher platform

Standard Timeline:

• Mainland setup: 2-4 weeks
• Free zone setup: 1-2 weeks
• Bank account opening: 2-6 weeks
• Visa processing: 2-3 weeks

Frequently Asked Questions

1. Can I own 100% of my Dubai company as a Dutch national?

Yes, 100% foreign ownership is now permitted in most business sectors, both in mainland and free zones.

2. Do I need to visit Dubai in person to complete the setup?

While physical presence is generally required for bank account opening and visa processing, initial company registration can often be completed remotely through authorized service providers.

3. What are the tax implications for Dutch residents?

The double taxation treaty between the Netherlands and the UAE provides relief from double taxation. Dutch residents may claim deductions for UAE taxes paid.

4. Is a local sponsor still required in 2025?

For most business activities, a local sponsor is no longer required. However, a Local Service Agent (LSA) may be appointed for administrative purposes without legal involvement in your business.

Key Considerations for Success

Professional Guidance: Given the complexity of cross-border business formation, working with experienced consultants familiar with both Dutch and UAE regulations is highly recommended.

Banking Preparation: Prepare comprehensive documentation early, including source of funds verification and business plans, as banking requirements can be stringent.

Compliance Planning: Understand ongoing compliance requirements, including VAT registration, corporate tax filing, and annual renewals to avoid penalties.

Market Research: Conduct thorough market analysis to understand local business practices, customer preferences, and the competitive landscape before launching operations.

Next Step 

Starting a company in Dubai from the Netherlands offers tremendous opportunities for growth and expansion into emerging markets.

The UAE’s business-friendly environment, combined with its strategic location and favorable tax structure, makes it an ideal destination for Dutch entrepreneurs seeking to establish a presence in the Middle East and beyond. 

With proper planning, documentation, and professional guidance, the process can be completed efficiently while ensuring full compliance with local regulations.

Disclaimer: The information provided in this article is for general informational purposes only and does not constitute legal, financial, or professional advice. While every effort has been made to ensure accuracy, regulations and requirements may change. Readers are advised to consult with qualified professionals before making business decisions or relying on the content herein.

Book your free consultation call today with the experts of JSB Incorporation to learn more about setting up your business in the UAE.