UAE
Innovation-aligned licence for eligible tech and innovation-led businesses in DIFC.
Key Benefits
Built for eligible innovation-led businesses seeking DIFC credibility under a dedicated licensing pathway.
DIFC positioning can strengthen trust with enterprise clients, partners, and international stakeholders.
A strong setup for IP-led and technology-first companies building in or from the region.
A robust corporate framework supports fundraising, option plans, and clean corporate actions.
Often preferred by regulated/professional counterparties that value strong documentation and compliance posture.
DIFC entities can be easier to position for business banking, subject to KYC and internal bank policies.
Tax Overview
UAE Corporate Tax
0% may apply to Qualifying Free Zone Persons (QFZPs) on qualifying income; otherwise 9% may apply. The AED 375,000 0% band generally applies to non-QFZPs; QFZPs instead follow the qualifying/non-qualifying income rules.
VAT
Applies where the company registers for VAT and makes taxable supplies in the UAE.
Withholding Tax
The UAE does not currently levy withholding tax on outbound payments under the federal Corporate Tax regime.
Transfer Pricing
May apply to related-party transactions; maintain appropriate documentation and policies where required.
Domestic Minimum Top-up Tax (DMTT)
May apply to UAE entities that are part of large multinational groups (Pillar Two threshold) to ensure a 15% minimum effective tax rate in the UAE.
Formation Process
Confirm innovation-licence fit, define activities, and collect KYC and ownership details.
Reserve company name and confirm naming compliance.
Submit incorporation and innovation licence applications; respond to clarifications if requested.
Complete approvals, settle fees, and receive incorporation/licence documents.
Deliver the digital corporate document pack.
Pricing
Formation Package
$1,000
Annual Maintenance
$13,889/year
Add-ons
Form your DIFC (Innovation License) in UAE and have your entity ready in 2 weeks.
EntityEngine is a private facilitation platform, not a government agency or law firm. Information is general only (not legal/tax advice). Filings are completed by regulated third-party partners. Terms.