United Arab Emirates or United Kingdom: where should you start a business?
The United Arab Emirates ranks higher in the index, 01 against 16. 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
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%.
Profits of £50,000 or less are taxed at 19%, with marginal relief up to £250,000 and 25% above that. VAT is charged at 20%.
Set-up
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.
Online registration costs £100, and Companies House usually registers a company within 24 hours. The annual confirmation statement costs £50.
On the ground
A mainland company needs no resident director or secretary, but it must appoint an auditor. Free zone requirements vary from one zone to another.
No director or secretary needs to live in the UK, but the registered office must be at an appropriate UK address. There is no minimum capital.
Ownership
The beneficial ownership register is open to the authorities only. Each company must name a UAE-resident individual as the contact for its register.
The register of people with significant control is public and free to search. Home addresses and full dates of birth are withheld.
Residence
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.
Owning a company gives no right to live in the UK. An owner from abroad needs a visa such as the Innovator Founder visa, which requires an endorsement.
Living and working
Currency
UAE dirham, pegged to the US dollar.
Pound sterling.
Time zone
UTC+4.
UTC+0, and UTC+1 in summer.
Personal tax
The UAE does not levy income tax on individuals.
Income over £125,140 is taxed at 45% (2026/27, outside Scotland); inheritance tax is 40% above £325,000, and capital gains tax applies.
Flights
Dubai International served 217 destinations in 99 countries at the end of H1 2026; London is 6 hrs 50 mins by British Airways.
From London, British Airways reaches New York in 8 hrs 10 mins, Dubai in 6 hrs 50 mins and Singapore in about 12 hrs 45 mins.
Language
Arabic is the official language; English is allowed in some Dubai Courts circuits, and the DIFC Courts sit in English.
English is used in practice, and Welsh can be spoken in legal proceedings in Wales.
United Arab Emirates vs United Kingdom: common questions
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%. The United Kingdom: Profits of £50,000 or less are taxed at 19%, with marginal relief up to £250,000 and 25% above that. VAT is charged at 20%.
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. The United Kingdom: Online registration costs £100, and Companies House usually registers a company within 24 hours. The annual confirmation statement costs £50.
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. The United Kingdom: No director or secretary needs to live in the UK, but the registered office must be at an appropriate UK address. There is no minimum capital.
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. The United Kingdom: The register of people with significant control is public and free to search. Home addresses and full dates of birth are withheld.
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. The United Kingdom: Owning a company gives no right to live in the UK. An owner from abroad needs a visa such as the Innovator Founder visa, which requires an endorsement.
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