Over the last few years, more than 10,000 millionaires have moved from the UK to the other countries (including UAE), and there is a clear reason why. Relocating a business is a major strategic decision, and many UK companies are following this trend by exploring the opportunities the United Arab Emirates (UAE) offers. With its business-friendly tax regime, global connectivity, and strategic location, the UAE has become a top destination for entrepreneurs, SMEs, and multinational firms.
At Prabix Consulting, we specialize in helping businesses navigate this transition seamlessly. If you are considering moving your company from the UK to the UAE, here’s a step-by-step guide covering what you need to know, the processes involved, and the key compliance matters to be aware of.
Why Move Your Business from the UK to the UAE?
The UAE offers significant advantages:
- No personal income tax and competitive corporate tax rate (9%).
- Strategic access to Middle East, Asia, and Africa markets.
- A range of Free Zones and Mainland options tailored to different industries.
- Strong infrastructure, banking, and logistics networks.
- Stable and modern regulatory environment that attracts foreign investors.
However, relocation requires careful planning and execution. Below, we break down the process.
Step 1: Pre-Move Planning
Before making the transition, consider:
- Business model assessment – will you fully relocate or maintain a dual presence in the UK and UAE?
- Tax planning – review UK exit tax, double taxation treaties, and ensure compliance with HMRC’s Statutory Residence Test.
- Financial structuring – plan banking, capital transfer, and profit repatriation.
📌 Prabix Tip: Early engagement with consultants helps avoid tax inefficiencies and ensures a smooth exit from the UK regulatory framework.
Step 2: Choosing the Right Business Structure in UAE
Selecting the correct jurisdiction is critical.
- Mainland Company (LLC or Branch) – Operates across the UAE, including direct government contracts.
- Free Zone Company – 100% foreign ownership, tax benefits, quick setup; ideal for international trading and services.
- Offshore Entity – Designed for holding assets or international trading, not local operations.
📌 Important to Know: Free Zones restrict you to operate internationally or within the zone unless you appoint a UAE distributor.
Step 3: Licensing & Regulatory Approvals
- Obtain the appropriate trade license (Commercial, Professional, or Industrial).
- Sector-specific approvals are required in finance, education, healthcare, logistics, and food.
- Your license defines your visa quota and business activities.
Step 4: Relocating Employees & Immigration
- Secure residence visas and Emirates IDs for business owners and employees.
- Transition staff contracts to comply with UAE labour law.
- Understand differences from UK law (e.g., end-of-service gratuity vs pensions).
Step 5: Banking & Financial Setup
Opening a corporate bank account in the UAE can take time due to strict AML/KYC procedures.
Requirements usually include:
- Trade license and incorporation documents.
- Shareholder passports.
- Business plan and audited UK financials.
📌 Prabix Tip: We help clients prepare compliance-ready documents and liaise with banks to expedite account opening.
Step 6: Tax & Compliance in UAE
- Corporate Tax: 9% applies on profits above AED 375,000 (Free Zone companies may qualify for exemptions).
- VAT: 5% on most supplies.
- No personal income tax but ensure proper UK residency exit planning.
- Compliance with Economic Substance Regulations (ESR) and Ultimate Beneficial Ownership (UBO) reporting is mandatory.
Step 7: Protecting Intellectual Property & Contracts
- Register your trademarks and IP locally in the UAE.
- Review contracts to align with UAE commercial law.
- Arbitration is common, with DIAC (Dubai International Arbitration Centre) being the preferred route.
Step 8: Office, Logistics & Operations
- Choose between physical office space, flexi-desk, or virtual office, depending on Free Zone or Mainland requirements.
- Set up logistics, warehousing, or distribution hubs if dealing in physical goods.
- Ensure Arabic-English bilingual contracts for compliance.
Step 9: Cultural & Market Awareness
- Business in the UAE is relationship-driven; networking is essential.
- English is widely used in business, but Arabic remains the official language for legal documents.
- Public holidays follow the Islamic calendar, so plan operations accordingly.
Step 10: Ongoing Compliance & Renewals
- Annual trade license renewals.
- Audit reports submission in most Free Zones.
- Continuous visa renewals for staff and dependents.
- Maintaining good standing under ESR, AML, and corporate governance rules.
Key Takeaways from Prabix Consulting
- Relocating from the UK to the UAE can unlock tax efficiency, global market access, and growth opportunities.
- Choosing the right jurisdiction and license type is the most critical step.
- Banking, compliance, and tax planning need careful management to avoid delays and penalties.
- Local cultural adaptation and strategic partnerships are key to long-term success.
How Prabix Consulting Can Help
At Prabix, we provide end-to-end support for businesses moving from the UK to the UAE, including:
- Business setup and licensing (Mainland & Free Zones).
- Cross-border tax and financial structuring.
- Banking and compliance advisory.
- Employee relocation and visa services.
- Strategic advisory for smooth market entry.
✨ Ready to move your business from the UK to the UAE?
Let Prabix Consulting guide your journey with expert advice, tailored solutions, and seamless execution.
📩 Contact us today to book a consultation and take the first step toward expanding in the UAE.