How to legally open a business in the Emirates and optimize your tax income

In a European economic climate marked by excessive taxation and bureaucracy, more and more Romanian entrepreneurs are looking for viable alternatives. Establishing a company in Dubai becomes, in 2025, one of the safest and most effective solutions for business internationalization, but also for legal tax optimization.

Our guide gives you all the information you need to open a business in the UAE, including the differences between Free Zone and Mainland, official steps and a real case study.

‍

1. Why Start a Business in Dubai

•0% income tax up to AED 375,000 per year

•0% tax on dividends and personal income

•100% property for foreign citizens in Free Zone

•Quick access to stable and international banking system

•Possibility of becoming a tax resident in Dubai

•Secure legal environment, digitalized and free of red tape

2. What types of businesses can you open in Dubai

2.1 Zona libre

•Ideal for international activities (IT services, consulting, freelancing)

•Allows 100% foreign ownership

•Lower costs and fast process

•You can get between 1 and 6 residency visas depending on the package

2.2 Mainland

•Allows to carry out business activities directly in Dubai

•No geographical limitations and with the possibility of working with government institutions

2.3 Offshore

•Used for holding structures, asset protection or heritage planning

•Does not allow activity in the Emirates

3. Steps to Incorporate a Business in Dubai

1. Choose company type (Free Zone or Mainland)

2. Select the activity allowed (from the official list)

3. Check and reserve the name of the company

4. Submit documents: passport, photo, proof of address, optional resume

5. You receive the commercial license (on average in 2—5 days)

6. Optionally, apply for a residency visa + Emirates ID

7th. Open bank account in UAE

‍

4. Case study — Moving a digital agency from Romania to Dubai

In 2024, Andrei, an entrepreneur from Bucharest, owned a digital agency with international clients. His company was registered as an LLC and generated a net annual profit of €60,000. However, taxation in Romania was beginning to become burdensome. In addition to the corporate tax, he was to pay 16% tax on dividends and 10% CASS. The total taxes paid amounted to about 25,000 EUR/year, almost half of personal income.

After initial tax advice, Andrei chose to set up a firm in Meydan Free Zone — one of the fastest and most flexible economic zones in Dubai. He submitted the documents online, obtained his license in 4 days and received his residence visa in less than 3 weeks. He then opened a corporate account in AED and a personal one in EUR at a local bank.

In less than a month, the firm was fully operational. Andrei kept the same international clients, issued invoices from Dubai and no longer had to pay tax on profits or dividends. Tax savings exceeded EUR 20,000 in the first year, and the company continued to grow in a stable environment, without bureaucracy and without pressure from the tax authorities in Romania.

5. FAQs

Can I own my own business as a Romanian?
Yes, in Free Zone you can be a unique associate and administrator.

Do I need to live permanently in Dubai?
No. It is enough to have an Emirates ID and spend a minimum of 183 days per year (not necessarily consecutive) to benefit from tax residency.

Can I open a business without a visa?
Yes, but without a visa you cannot get tax residency and you do not have access to a personal bank account.

How long does it take to open a business?
On average, from 3 to 7 working days.

‍

Setting up a business in Dubai in 2025 is a clear, fast and completely legal process. You can benefit from 0% tax, access to the international banking system and a modern tax framework. More and more Romanian entrepreneurs are choosing this path in order to protect their income and grow their business without constraints.

 If you want a free analysis for your business, our specialists can provide you with a personalized recommendation.

Seeks Tax Advice for Dubai Business Setup

‍