UAE Free Zone FZE set-up with substance, tax and banking from the start.

Client benefit

Concrete client benefits.

• The company is formed with the right licence instead of a generic shell.
• Corporate tax and qualifying-income questions are checked before invoices start.
• Banking documents, UBO logic and source of wealth are prepared in parallel.
• German place-of-management and CFC risks are documented.
• Kanzlei Meyers & Partner AG coordinates set-up, tax file, banking and ongoing compliance.

Tax classification.

UAE Free Zone companies may obtain a 0 percent local effect for qualifying income if statutory conditions are met. This does not remove foreign tax exposure, reporting obligations, transfer pricing or substance requirements.

• UAE Corporate Tax registration and Free Zone Person status.
• Qualifying income, excluded activities and de minimis rules.
• Transfer pricing, accounting and audited financial statements where required.
• German CFC, permanent establishment and place-of-management risk.
• VAT, payroll, visa and substance considerations.

Ongoing taxation and administration.

The company needs bookkeeping, licence renewals, corporate tax registration, transfer pricing documentation, bank updates, substance evidence and board decisions.

• Annual licence and establishment-card management.
• Bookkeeping, financial statements and tax filings.
• Transfer pricing and related-party agreements.
• Substance evidence: office, management, staff, contracts and decision log.

Set-up and implementation process.

• Select Free Zone, activity and licence package.
• Define shareholders, manager, visa and office/substance plan.
• Prepare formation documents and UBO file.
• Open bank route with source-of-wealth evidence.
• Register and maintain tax, accounting and compliance calendar.

Typical mistakes.

• Free Zone is chosen only by price, not by activity and bankability.
• Invoices start before corporate tax and VAT treatment are clear.
• Management remains in Germany without documentation.
• Bank file lacks source of wealth or business plan.
• Transfer pricing and accounting are ignored until year end.

What Kanzlei Meyers & Partner AG delivers.

• Free Zone and licence selection memo.
• Formation and residency coordination.
• Corporate Tax and qualifying-income file.
• Banking/KYC package and business plan.
• Transfer pricing and accounting checklist.
• German tax risk memorandum.

Documents for the first review.

• Business model and client geography.
• Founder residence and planned UAE presence.
• Expected revenue streams and counterparties.
• Source of wealth/source of funds evidence.
• Existing company and IP ownership.
• Visa and relocation requirements.

Result of the initial consultation.

The first review ends with a documented decision file: target structure, tax assumptions, exclusion points, implementation sequence, document list and clear next steps.

• Decision matrix with recommended structure and rejected alternatives.
• Tax and compliance workstream with open points, deadlines and responsible parties.
• Implementation plan for entity formation, banking, governance and ongoing administration.

Legal position and limits.

UAE structures are fact-dependent. A 0 percent local effect is never promised without checking corporate tax, qualifying income, substance, foreign tax rules and banking.

Frequently asked questions.

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