This guide is general information, not tax or legal advice. Your UK tax position depends on your circumstances, so speak to a UK tax adviser before you leave. For the UAE side, talk to us.
The short answer
If you run a business and want to live in Dubai, the most common route is to set up a UAE company and use it to sponsor your own residence visa. The company gives you a legal base to trade and invoice from, and the visa gives you the right to live in the UAE, open personal bank accounts, sign a tenancy and sponsor your family.
The order matters. Each step unlocks the next:
- Decide your UK exit plan and timing
- Choose your structure: free zone or mainland
- Set up the company and get your trade licence
- Apply for your residence visa and Emirates ID
- Open corporate and personal bank accounts
- Move your family and finish the UK side
Step 1: Plan your UK exit before you set anything up
Moving to Dubai does not make you non-UK tax resident on its own, and neither does setting up a UAE company. Your UK tax position is decided by HMRC's Statutory Residence Test, which looks at how many days you spend in the UK in each tax year (6 April to 5 April) and the ties you keep there.
In broad terms, you are automatically non-UK resident for a tax year if you:
- spend fewer than 16 days in the UK, having been UK resident in one or more of the previous three tax years, or
- spend fewer than 46 days in the UK, having been non-resident in all of the previous three tax years, or
- work full-time overseas, spend fewer than 91 days in the UK, and work in the UK for more than three hours on fewer than 31 days.
If none of those apply, the test moves on to your UK ties: a home, family, work, and days spent in previous years. Split-year treatment can apply in the year you leave. There is also a temporary non-residence rule: if you return to the UK within five years, some income and gains received while you were away can become taxable on your return.
Two practical points founders often miss. First, where your company is managed and controlled matters as well as where you live, so running a UAE company day to day from the UK can create problems. Second, the UK–UAE double taxation agreement affects how income is treated once you are resident in the UAE. This is why the move, the company and how you pay yourself should be planned as one decision, with a UK tax adviser.
For the detail on day counts, split years, P85 and the five-year rule, read our guide to UK tax when you move to Dubai.
Step 2: Choose free zone or mainland
The deciding question is where your customers are.
- Free zone usually fits if your clients are mainly in the UK, Europe or elsewhere outside the UAE, or you run an online or services business. You get 100% ownership, a lower starting cost and a residence visa through your own company.
- Mainland fits if you plan to sell to UAE businesses directly, open premises, hire locally or bid for government work. Most activities now allow 100% foreign ownership.
Both routes can sponsor your residence visa. On tax, UAE corporate tax is 9% on taxable profit above AED 375,000. A free zone company that meets the Qualifying Free Zone Person rules can pay 0% on qualifying income, but this is conditional, not automatic. See our free zone vs mainland comparison for the full trade-offs.
Popular free zones with UK founders include IFZA and Meydan Free Zone for a Dubai address at a mid-range price, DMCC where banking credibility and brand matter most, and SHAMS or RAKEZ where cost is the priority.
Step 3: Set up the company
Most of the company setup can be done from the UK. You choose your business activity, reserve a trade name, submit passport copies and shareholder details, and receive initial approval. A free zone trade licence typically issues in 2 to 7 working days once your documents are in order.
Your activity choice matters more than people expect. It decides your licence type, what you can legally do, and how banks assess your account application later. Choose it with the end state in mind, not just the cheapest option.
Step 4: Get your residence visa and Emirates ID
Once the licence is issued, your company registers with immigration (the establishment card) and applies for your entry permit. You then need to be in the UAE for a medical fitness test and Emirates ID biometrics. The residence visa is usually valid for two years and is renewable.
Allow one to three weeks for the visa and Emirates ID after the licence. Your Emirates ID is the document you will need for almost everything that follows: bank accounts, a tenancy, a phone contract and utilities. Health insurance is mandatory for Dubai residents, so build it into your budget. Read more about UAE residence visas.
If you already hold AED 2 million or more in property, deposits or company capital, or your UAE company pays AED 250,000 a year in tax, you may qualify for a 5 or 10-year Golden Visa instead. See our Golden Visa guide for UK business owners.
Step 5: Open your bank accounts
You will need two: a corporate account for the company and a personal account for yourself. Corporate accounts typically take one to four weeks and depend heavily on preparation: a clear description of what the business does, where the money comes from and who your clients are. Personal accounts generally need your Emirates ID or residence visa.
Banks are the step most likely to slow a move down. Our guides on opening a UAE business bank account and why applications get rejected cover what to prepare.
Step 6: Bring your family and close out the UK side
Once you hold a residence visa and meet the income requirements, you can sponsor your spouse and children. See our UAE family visa guide for the current rules.
On the UK side, the usual checklist is: tell HMRC you are leaving (form P85 if you are not filing a Self Assessment return), decide what happens to your UK home, check your National Insurance record, update your bank and pension providers, and keep a clear record of the days you spend in the UK each tax year. UK driving licence holders can usually exchange for a UAE licence without a test.
For UAE tax residence, the Federal Tax Authority can issue a tax residency certificate. Individuals generally qualify if the UAE is their main place of residence, or after 183 days in the UAE in a 12-month period, or after 90 days if they hold a residence permit and have a permanent home or a business in the UAE.
How long the move takes
- Company setup and trade licence: 1 to 2 weeks
- Residence visa and Emirates ID: 1 to 3 weeks after the licence
- Corporate bank account: 1 to 4 weeks
Most founders are operational within four to six weeks. The UK planning in Step 1 should start well before that, ideally before the tax year you intend to leave in.
What it costs
With CorpWise, free zone setup starts from AED 12,500, mainland from AED 35,000 and offshore from AED 25,000. Residence visas start from AED 3,800. Your final figure depends on your activity, the number of visas, and whether you need a flexi-desk or a physical office. You get a clean starting cost breakdown before you commit. For a full breakdown by scenario, see what it costs to set up a company in Dubai.
Remember to budget for the move itself: health insurance, a rental deposit (Dubai landlords often ask for rent in one to four cheques) and school fees if you have children.
Get the full playbook
Our free Moving to Dubai guide for business owners sequences company formation, visas, banking, family and compliance into one plan. If you would rather talk it through, book a call and one advisor will map the route for your situation.
