An Australian can own 100% of a Dubai free zone company, and of a mainland company for most activities, but the company only delivers UAE tax outcomes if it is genuinely run from the UAE and its owner has dealt with the Australian rules that still apply.
Step 1: decide where the business will really be run
Before choosing a free zone, decide who will make the company's decisions and where they will be. Australian tax law treats a foreign company as an Australian resident if it carries on business in Australia and its central management and control is here. If you are still living in Australia and running the Dubai company from your kitchen table, it can be taxed as an Australian company. If you are moving, the cleanest approach is to incorporate the company now and keep its real decision-making until after you leave. Our guide to owning a Dubai company while living in Australia covers this in detail.
Step 2: free zone or mainland
A free zone company suits businesses that sell internationally, deal with other free zone businesses, or need a Qualifying Free Zone Person's 0% Corporate Tax rate. A mainland company can contract with customers anywhere in the UAE and bid for government work. Since 2021, foreign investors can own 100% of a mainland company for most activities, so a local partner is no longer the deciding factor. Dubai's free zones each have their own focus: technology and media, commodities and trading, financial services in the DIFC, and general trading in several others. Our comparison of free zone and mainland companies sets out the trade-offs.
Step 3: choose the licence activity carefully
Your trade licence lists the activities the company may carry on. Choose too narrowly and you cannot invoice for the work you actually do; choose an activity the authority treats as regulated and you may need approval from a regulator. Financial services, virtual assets, payments and some advisory activities need a licence from the DFSA, the FSRA, VARA or the Central Bank, which is a separate and longer process handled by our financial services team.
Step 4: incorporate, then visas and an office
Once the jurisdiction and activity are settled, incorporation needs passports, a business plan for some authorities, and the constitutional documents. Many free zones let you complete this remotely. The licence then supports residence visas for you and, within the quota your office allows, your staff and family. Free zones offer flexi-desk and shared office options for non-regulated businesses; a regulated business will usually need a dedicated office.
Step 5: open a bank account
UAE banks apply thorough onboarding checks to new companies. Expect to show where your money comes from, how the business will earn revenue, who your customers and suppliers are, and evidence of your own background. Australian founders do well when they bring financial statements, tax returns and contracts from their Australian business. A residence visa and Emirates ID usually make the personal account straightforward.
Step 6: register for Corporate Tax and plan for it
Every UAE company must register for Corporate Tax. The rate is 9% on taxable income above AED 375,000. A Qualifying Free Zone Person pays 0% on qualifying income if it keeps adequate substance in the free zone and meets the other conditions, and Small Business Relief is available for revenue up to AED 3 million for tax periods ending on or before 31 December 2026. If the Dubai company deals with your Australian company, both sides need arm's length pricing; see transfer pricing in the UAE.
What the Australia-UAE CEPA does and does not do
The Australia-UAE Comprehensive Economic Partnership Agreement entered into force on 1 October 2025. It cuts tariffs and improves market access for goods and services traded between the two countries, which helps Australian exporters and importers. It is not a double tax agreement. There is still no Australia-UAE tax treaty, so it does not reduce Australian withholding tax or settle where you are resident.
Where Neo Legal fits
We advise on the structure, form the company, prepare the shareholder and founder documents, handle the visa and bank account process, and register the company for tax, with Neo Finance available for the accounting. Because we are the UAE practice of Cornwalls, the Australian questions that decide whether the structure works are answered by the same team. Read our overview of moving to Dubai from Australia.
Frequently asked questions
Can an Australian own 100% of a company in Dubai?
Yes. Australians can own 100% of a UAE free zone company, and of a mainland company for most activities since foreign ownership rules were relaxed in 2021. A small number of strategic activities remain restricted.
Should an Australian choose a free zone or a mainland company?
It depends on your customers. A free zone company suits international business and can qualify for 0% Corporate Tax on qualifying income. A mainland company can trade with anyone in the UAE. Neo Legal advises on the choice before you incorporate, because changing later means a new company.
Can I set up a Dubai company without travelling there?
Often, yes. Many free zones allow remote incorporation. You will usually need to visit to complete your residence visa medical and Emirates ID, and banks typically want to meet you in person.
Will my Dubai company pay tax in Australia?
It can, if its central management and control is in Australia and it carries on business here. That is the main risk for Australians who set up in Dubai but keep running the business from home. Once you have genuinely moved and the company is run from the UAE, it is taxed under UAE Corporate Tax.
Does the Australia-UAE CEPA reduce my tax?
No. The CEPA is a trade agreement covering tariffs, services and investment. It is not a tax treaty, and there is no double tax agreement between Australia and the UAE.
This article is general information on the position at the date shown and is not legal advice. It is not tax or financial advice either: your position depends on your residency, your assets and your structures, so speak to us before acting on it.
