Hong Kong or United Arab Emirates: where should you start a business?
The United Arab Emirates ranks higher in the index, 01 against 04. Which suits you depends on where the owners live, what the company is for and how it will be run.
Pillar by pillar
Doing business, side by side
Tax
The first HK$2 million of profit is taxed at 8.25%, and tax is charged on a territorial source basis. There is no sales tax or VAT.
Profits up to AED 375,000 are taxed at 0%. In a free zone the 0% rate reaches qualifying income only, and VAT is charged at 5%.
Set-up
Electronic incorporation costs HK$1,545, against a one-hour target met in 90% of cases. Business registration costs HK$2,350 and the annual return HK$105.
Set-up typically costs AED 10,000 to 50,000 in total, depending on mainland or free zone, the activity and any licences. Capital must be fully paid at incorporation.
On the ground
The company secretary must be resident in Hong Kong, and the company must keep a registered office there. There is no minimum capital.
A mainland company needs no resident director or secretary, but it must appoint an auditor. Free zone requirements vary from one zone to another.
Ownership
The significant controllers register is kept by the company, not filed with the Registry, and must be produced to law enforcement on demand.
The beneficial ownership register is open to the authorities only. Each company must name a UAE-resident individual as the contact for its register.
Residence
The Investment as Entrepreneurs route is discretionary with no fixed minimum. The New Capital Investment Entrant Scheme requires HK$30 million.
An investor or partner can hold a five-year green residence visa on the trade licence. A ten-year golden visa needs capital or a partner's share of AED 2 million.
Living and working
Currency
Hong Kong dollar.
UAE dirham, pegged to the US dollar.
Time zone
UTC+8.
UTC+4.
Personal tax
Salaries tax has a progressive top rate of 17%, or a standard rate of 15% to 16%; estate duty was abolished from 11 February 2006.
The UAE does not levy income tax on individuals.
Flights
About 140 airlines serve more than 220 destinations; Singapore is about 4 hrs away and London Heathrow about 12 hrs 45 mins.
Dubai International served 217 destinations in 99 countries at the end of H1 2026; London is 6 hrs 50 mins by British Airways.
Language
Chinese is official, and English can also be used as an official language by the executive, the legislature and the judiciary.
Arabic is the official language; English is allowed in some Dubai Courts circuits, and the DIFC Courts sit in English.
Hong Kong vs United Arab Emirates: common questions
Hong Kong: The first HK$2 million of profit is taxed at 8.25%, and tax is charged on a territorial source basis. There is no sales tax or VAT. The United Arab Emirates: Profits up to AED 375,000 are taxed at 0%. In a free zone the 0% rate reaches qualifying income only, and VAT is charged at 5%.
Hong Kong: Electronic incorporation costs HK$1,545, against a one-hour target met in 90% of cases. Business registration costs HK$2,350 and the annual return HK$105. The United Arab Emirates: Set-up typically costs AED 10,000 to 50,000 in total, depending on mainland or free zone, the activity and any licences. Capital must be fully paid at incorporation.
Hong Kong: The company secretary must be resident in Hong Kong, and the company must keep a registered office there. There is no minimum capital. The United Arab Emirates: A mainland company needs no resident director or secretary, but it must appoint an auditor. Free zone requirements vary from one zone to another.
Hong Kong: The significant controllers register is kept by the company, not filed with the Registry, and must be produced to law enforcement on demand. The United Arab Emirates: The beneficial ownership register is open to the authorities only. Each company must name a UAE-resident individual as the contact for its register.
Hong Kong: The Investment as Entrepreneurs route is discretionary with no fixed minimum. The New Capital Investment Entrant Scheme requires HK$30 million. The United Arab Emirates: An investor or partner can hold a five-year green residence visa on the trade licence. A ten-year golden visa needs capital or a partner's share of AED 2 million.
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