Relocating an existing business to the UAE involves establishing a presence that aligns with operational needs, revenue sources, and long-term objectives while preserving continuity where possible. As of February 2026, options include setting up a new UAE entity (mainland or free zone), opening a branch of the foreign company, or migrating an existing UAE company between jurisdictions under updated rules. Full re-domiciliation of foreign companies into UAE free zones remains limited to specific zones with tailored processes, often treated as new incorporations with asset or license transfers. The approach depends on whether the business seeks local market access, international focus, tax considerations, or residency benefits. Founders must evaluate activity fit, substance requirements, and banking implications to avoid disruptions in operations, contracts, or client relationships.
Assessing the Business Model and Relocation Goals
Begin by mapping current operations against UAE realities. Determine if the move targets direct UAE client access, regional expansion, tax efficiency on qualifying income, or founder residency. A European consulting firm billing international clients might prioritize a free zone for streamlined setup and potential Qualifying Free Zone Person status, while a trading business supplying UAE entities needs mainland flexibility. Review existing contracts, IP, employees, and banking to identify transferable elements and risks. Underestimating substance needs or mismatched activities leads to banking delays or compliance exposure. A software company with global subscriptions often establishes a new free zone entity to centralize IP and demonstrate UAE decision-making without disrupting overseas flows.
Options for Establishing UAE Presence
Foreign companies typically set up a new UAE entity rather than directly transferring the overseas company. Mainland incorporation through the Department of Economic Development allows 100 percent foreign ownership in most activities, unrestricted UAE trading, and government opportunities. Free zones provide faster registration, 100 percent ownership, and international focus with potential 0 percent corporate tax on qualifying income when substance conditions are met. Branch offices of foreign companies require Ministry of Economy approval in some cases, a local service agent (UAE national without equity), and physical presence, limiting them to promotional or operational activities aligned with the parent. A manufacturing firm opens a mainland branch to handle local distribution, while a digital services provider incorporates a new free zone company for efficiency.
Migrating an Existing UAE Company Between Jurisdictions
For businesses already in the UAE, 2026 updates simplify moves. Dubai regulations allow eligible free zone companies to migrate to mainland or vice versa without full liquidation, preserving business identity, history, and continuity under new migration processes. This involves license transfer applications, approvals from both authorities, settlement of obligations, and potential re-registration steps. Free zone companies access mainland operations via branches or permits with separate accounting for income streams to maintain qualifying status. A free zone services firm migrates to mainland for expanded local contracts, requiring updated licenses, visa transfers, and banking adjustments. Mainland to free zone moves involve similar coordination, often with license cancellation and new incorporation.
Branch Setup for Foreign Companies
Opening a branch maintains the foreign entity's legal continuity while adding UAE operations. Requirements include attested parent company documents (certificate of incorporation, memorandum, board resolution), appointment of a local service agent for mainland branches, and activity alignment. Free zone branches follow zone-specific rules with less external approvals. Branches enable visa sponsorship and local contracts but tie closely to parent governance. A foreign trading company establishes a mainland branch to import and distribute locally, leveraging existing brand while complying with UAE rules.
Visa, Banking, and Operational Transition Steps
Incorporate visa strategy early: investor visas tie to new entities or branches, enabling founder relocation and family sponsorship. Corporate banking demands substance proof, source of funds, contracts, and UAE presence alignment. Transfer key operations gradually—migrate contracts, reissue invoices under UAE entity, transfer employees via visa processes, and update suppliers. Maintain dual records during transition to avoid tax or compliance gaps. Corporate tax registration applies based on new entity facts, with small business relief potentially available through 2026 periods for lower revenue.
Managing Tax, Compliance, and Risk During Relocation
Corporate tax at 0 percent up to AED 375,000 and 9 percent above requires accurate income allocation, especially for hybrid free zone-mainland activities. VAT registration triggers at thresholds, demanding invoicing hygiene. Substance demonstration supports Qualifying Free Zone Person benefits or banking acceptance. Risks include contract disruptions, employee retention issues, or banking rejections from narrative inconsistencies.
Partners such as ALand, guided by Dr. Pooyan Ghamari, facilitate relocation by assessing current structures against UAE options, selecting optimal jurisdiction and setup type, preparing migration or branch documentation, aligning substance for tax and banking, managing visa and operational transfers, and providing ongoing oversight to minimize downtime, exposure, and rework. Moving an existing business to the UAE succeeds when treated as strategic restructuring rather than simple relocation, ensuring the new presence supports growth, compliance, and bankability in a jurisdiction designed for international efficiency.