Setting up a UAE company from Australia: structure, steps and the Australian tax questions

By Alan Underwood Founder of Dubai Transition Consultants. Helps founders and families set up and settle in the UAE. Last reviewed 18 October 2026 · 7 min read
In shortYou can set up a UAE company from Australia and own all of it. Free zones allow full foreign ownership, and since 2021 so does the mainland for most activities. Most of the licence work runs while you are still in Australia; you travel for the residence visa medical and Emirates ID biometrics. UAE corporate tax is 0% on taxable income up to AED 375,000 and 9% above. If you stay an Australian tax resident, Australian rules can still reach the company's profits, so settle that with a registered tax agent first. As at October 2026.
The Dubai coastline and marina towers on a bright day, with boats in the bay

You can set up a UAE company from Australia and own all of it. Free zone companies can be fully foreign owned, and the UAE removed the requirement for an Emirati majority shareholder on the mainland in 2021 for most activities. The licence work runs while you are still in Australia. You travel for the residence visa, because the medical test and the Emirates ID fingerprints happen in the UAE.

The UAE side follows the same steps for every nationality. The Australian side does not. If you remain an Australian tax resident, or you run the company from Australia, Australian rules can reach the company’s profits. Settle that with a registered tax agent before you choose a structure.

This guide is general information as at October 2026, from u.ae, the UAE government portal, and ato.gov.au. It is not personal tax or legal advice.

How do I set up a company in Dubai from Australia?

The order below is the one we follow with Australian clients. Steps 1 to 5 run while you are in Australia.

  1. Define what the company sells and who buys it. Your activity and your customers decide the structure, the zone and the licence. A consultancy billing clients in Australia and Asia needs something different from a business selling to UAE customers.
  2. Choose free zone or mainland. See the next section.
  3. Pick the activity and the zone. Each free zone publishes its list of permitted activities. Your licence must cover what you do.
  4. Reserve the name and submit documents. For an individual shareholder that starts with your passport. A corporate shareholder, such as an Australian company, needs its constitutional documents, which usually have to be legalised for use in the UAE.
  5. Receive the licence and set up the company’s immigration file. The company needs this to sponsor your visa.
  6. Apply for your residence visa. You enter the UAE, complete the medical fitness test and give your Emirates ID biometrics.
  7. Open the company bank account.
  8. Register for UAE corporate tax.

Plan the Australian exit alongside step 1, before you commit to a structure. The two sides affect each other, and our guide Moving to Dubai from Australia shows how they fit together.

Can an Australian own 100% of a UAE company?

Yes. The UAE government states that the companies law “abolishes the requirement for a majority Emirati shareholder or local partner” for mainland companies. See full foreign ownership of commercial companies on u.ae. Free zones have allowed full foreign ownership for years.

The same page lists activities that still restrict full foreign ownership. They include security, defence and military activities; telecommunications; banking, exchange, financing and insurance; and commercial agencies. Most Australians setting up consultancies, agencies, trading, e-commerce and technology businesses fall outside that list.

Free zone or mainland: which suits an Australian business?

A free zone company suits you if your customers are mostly outside the UAE, or other businesses that accept a free zone supplier. Free zones offer quick set-up, full foreign ownership and their own licensing authority. A free zone company deals mainly within its zone and abroad; selling directly to customers on the UAE mainland usually needs a mainland licence or a local distributor.

A mainland company suits you if you sell directly to UAE customers, need a shopfront, or want government contracts. You license it through the emirate’s economic department.

An international or offshore company, such as one registered with RAK ICC, holds assets and shares. It does not trade in the UAE in the usual way. Founders often use one as a holding company above a free zone operating company.

We are agents for RAKEZ, IFZA, Meydan and RAK ICC. Each suits different activities and visa needs, so the right choice follows from your answer to step 1.

Can I set up a UAE company without visiting?

You can complete most of the company stage from Australia: the activity, the name, the documents and the licence. You will sign documents and may join video calls with the zone or a bank.

The residence visa needs you in the country. The UAE government’s Emirates ID page says every resident must apply for an Emirates ID and that anyone aged 15 or over completes fingerprints and a signature at an ICP service centre. You also take a medical fitness test at an approved centre. Plan that first trip for after the licence is issued, and bring your family’s documents if they are joining you.

Do I pay tax on my UAE company’s profits?

The UAE charges corporate tax on business profits for financial years starting on or after 1 June 2023. According to u.ae, the rates as at October 2026 are:

  • 0% on taxable income up to AED 375,000
  • 9% on taxable income above AED 375,000.

Free zone companies keep their tax incentives if they meet the regulatory requirements and do not do business on the mainland, which can mean 0% on qualifying income. The conditions are strict. The Federal Tax Authority requires all taxable persons, free zone persons included, to register, and to file a return within 9 months of the end of each tax period.

The UAE does not tax the salary or dividends you take from your company as an individual. The government states that “the UAE does not levy income tax on individuals”.

What does the ATO think about my UAE company?

This is the question to settle before you form anything. Two sets of Australian rules matter.

Where the company is run. A company incorporated outside Australia can still be an Australian resident for tax. The ATO’s page on tax residency says a company is a resident if it carries on business in Australia and has either its central management and control in Australia or its voting power controlled by Australian resident shareholders. Central management and control means where the high-level decisions are made in fact. The ATO’s ruling TR 2018/5 explains how it applies the test. If you stay in Australia and run the UAE company from your desk in Melbourne or Sydney, the ATO can treat the company as Australian and tax its profits at Australian rates.

Who controls it. If you remain an Australian tax resident and control a foreign company, the controlled foreign company (CFC) rules can attribute some of its income to you each year, before you take a dividend. The rules give more exemptions to companies in “listed” countries, a short list of countries with tax systems comparable to Australia’s set out in regulations. The ATO says a CFC in an unlisted country is one of the things that attracts its attention. Ask your tax agent how the rules treat a UAE company in your position.

Both risks fall away for most people who move to Dubai, stop being Australian residents and run the company from the UAE. They remain real for people who set up a UAE company while they still live in Australia, or who keep spending long stretches at home. Our guides on Australian tax residency and Dubai salary tax for Australians explain the personal side, and a registered tax agent can check your structure.

If you are moving an existing Australian business, transferring its assets or contracts to a UAE company can also have Australian tax consequences, including capital gains tax. Get that reviewed before you sign anything.

Opening a UAE bank account from Australia

The bank account usually takes longest. UAE banks review your business activity, your ownership, your source of funds and the transactions you expect. A clear description of what the company does and who pays it, matched to your licence, gets a faster answer than a vague one.

Expect the bank to ask for your licence, your passport, visa and Emirates ID, the company’s documents, a business plan or profile, and evidence of where your money comes from. Contracts or invoices from your Australian clients help show the business is real.

Your checklist for setting up a UAE company from Australia

  1. Write one paragraph on what the company sells, to whom and from where.
  2. Ask a registered tax agent how Australian residency, central management and control and the CFC rules apply to your plan.
  3. Choose free zone, mainland or a holding structure.
  4. Shortlist the zone and the licence activities.
  5. Gather your passport copies and any company documents that need legalising.
  6. Book your first trip to the UAE for the visa medical and Emirates ID.
  7. Prepare the bank application while the licence is processed.
  8. Register for corporate tax and diarise the filing dates.

How we help

We set up your UAE company, process your residence visa and your family’s, and prepare the bank application, working alongside your Australian tax agent so the structure suits both sides. See how we handle company formation in the UAE. Alan replies within one working day.

Questions people ask

Can an Australian own 100% of a company in Dubai?

Yes. Free zone companies can be fully foreign owned, and the UAE abolished the requirement for a majority Emirati shareholder on the mainland in 2021. A short list of activities, such as banking, insurance, telecommunications and defence, still restricts full foreign ownership.

Can I set up a UAE company without leaving Australia?

You can complete most of the company stage from Australia, including the choice of activity, the name, the documents and the licence. The residence visa needs you in the UAE for the medical test and the Emirates ID fingerprints.

Do I pay tax on my UAE company's profits?

UAE corporate tax is 0% on taxable income up to AED 375,000 and 9% above that. Qualifying free zone companies can keep a 0% rate on qualifying income if they meet the conditions. Australia may also tax the profits if you remain an Australian resident or run the company from Australia.

Will the ATO treat my UAE company as Australian?

It can. A company incorporated abroad can be an Australian resident if it carries on business in Australia and its central management and control is in Australia. If you make the company's key decisions from Australia, get advice before you start trading.

Which free zone should an Australian choose?

The one that fits your activity, the number of visas you need and where your customers are. We are agents for RAKEZ, IFZA, Meydan and RAK ICC, and the right choice follows from what your business does.

Do I need a UAE bank account for my company?

In practice, yes, for trading in dirhams, paying UAE costs and showing the company is real. The bank reviews your business activity, ownership and expected transactions, and a well-prepared application moves faster.

Where this gets specific to you: how the Australian rules land depends on your residency status, your income types and what you keep in Australia. The general picture is a start; your plan needs your numbers and Australian-qualified advice.
General guidance, not personal legal, tax or financial advice. UAE rules and fees change and individual circumstances differ, speak to us, or another suitably qualified professional, before acting. See our full disclaimer.