Dubai is one of the most tax-efficient, globally connected jurisdictions in the world and an increasingly attractive option for UK business owners looking to reduce overheads, grow internationally, and structure smarter.
But too many UK businesses make the move without the right guidance. And when international structuring is handled by setup agents, not tax professionals, what begins as a tax opportunity can turn into a compliance headache.
Ask Yourself
1. Are you confident your UAE structure won’t trigger UK tax under CFC rules?
2. Are your intercompany payments (UK ↔ UAE) priced and documented properly for HMRC?
3. Does your UAE company have the right license, in the right Free Zone, for your actual business activity?
4. Is your setup built for long-term tax efficiency — or just registration?
Structuring Without Tax Advice
Most UK businesses expanding to Dubai are led by incorporation agents, not accountants.
The result? A structure that works on paper, but not for your tax, ownership, or group strategy.
Our approach: We lead with tax. We assess your UK position, ownership, dividend strategy, and long-term goals. Then we recommend the correct UAE entity - FZE, FZCO, LLC, branch, or holding company, based on HMRC treatment, control, and cash flow visibility.
Ignoring Transfer Pricing Requirements
If your UK company provides services to or receives income from your UAE company, transfer pricing rules apply. These rules are mandatory under both UK legislation and the UAE’s 2024 corporate tax law.
Our approach: We prepare arm’s length pricing, intercompany service agreements, benchmarking studies, and transfer pricing documentation that stands up to HMRC or UAE audits.
Underestimating UK Tax Exposure
The biggest myth? That profits in a UAE Free Zone company are always “tax-free.”
If your UAE entity lacks economic substance or is managed from the UK, profits could be taxed in the UK under Controlled Foreign Company (CFC) rules.
Our approach: We help you establish economic substance, identify and mitigate CFC risks, and structure for effective use of the UK–UAE Double Tax Treaty.
Choosing the Wrong License or Free Zone
Different Free Zones have different scopes, rules, and reputations. A mismatch between your license activity and your actual operations can lead to issues with VAT registration, employment visas, banking, and even enforcement action.
Our approach: We select the correct Free Zone and license based on your sector, target market (B2B vs B2C) and future scalability, not what’s easiest to register.
Treating It as a One-Off Setup
Incorporation is just the beginning. Many firms walk away after registration but who’s doing the bookkeeping? Who’s tracking VAT thresholds? Who’s filing the UAE corporate tax return? Who's making sure intercompany agreements are executed correctly?
Our approach: We provide UK-standard accounting, tax and advisory services post-setup, with support across both jurisdictions, from board-level structuring to day-to-day compliance.
