Published on and written by Cyril Jarnias
Setting up or developing a company in Dubai from France is no longer a project reserved for large corporations. In 2026, the regulatory, fiscal, and economic framework of the Emirates is clearly geared towards welcoming foreign entrepreneurs, and French companies already play a leading role there. However, launching without preparation or a clear understanding of French and Emirati rules remains the best way to turn a great opportunity into a fiscal or administrative headache.
This article provides an operational guide for French executives or founders looking to open or relocate a business to Dubai. It incorporates recent reforms (100% ownership, e-invoicing, corporate tax, Golden Visa) and addresses constraints specific to France, such as managing tax residency, the exit tax, and the application of tax treaties.
Why Dubai is so attractive to French entrepreneurs
Dubai is now the second most important business hub in the Middle East for the French. More than 600 subsidiaries of French companies already operate in the UAE, and nearly 80% of them have chosen Dubai as their main base. It hosts the densest French-speaking business community in the world outside of Europe, with over 40,000 French residents and more than 800 members within CCI France UAE.
In 2024, bilateral trade between France and the United Arab Emirates reached 8.5 billion euros, marking a 15% increase year-on-year.
For an entrepreneur based in France, Dubai’s appeal rests on several pillars: favorable taxation (no personal income tax, 5% VAT, limited corporate tax), a pro-business environment (100% foreign ownership, accelerated procedures, over 2,000 licensable activities), geographic positioning (gateway to the Gulf, South Asia, East Africa), and sectoral growth (luxury, tech, healthcare, logistics, commercial real estate…).
Understanding the Emirati legal and regulatory framework
Since 2021, the UAE has profoundly reformed its corporate law. For most commercial sectors, a foreign investor can now own 100% of a company’s capital, including in the “mainland” (outside free zones). The famous 51% local sponsor rule is no longer the standard.
Concurrently, a key resolution, Executive Council Resolution No. 11 of 2025, paved the way for more flexible operations between free zones and the onshore market. Free zone companies can now operate onshore without creating a separate entity, through three mechanisms:
| Onshore Market Access Option | Description | Estimated Cost |
|---|---|---|
| Branch License in the Emirate | Creation of an onshore branch of a free zone company | Fees based on activity/jurisdiction |
| Branch Operating from the Free Zone | Authorization to operate in the onshore market while remaining physically in the free zone | 10,000 AED / year |
| Temporary Permit | Time-limited authorization for specific activities | 5,000 AED for max. 6 months |
This framework adds to cross-cutting obligations: registration of ultimate beneficial owners (UBOs holding 25% or more), compliance with Economic Substance Regulations (real activity in the UAE), and, for certain sectors (finance, healthcare, education), additional licenses and approvals.
Starting July 2026, electronic invoicing will become mandatory for companies with annual turnover of at least 50 million AED. These large companies must appoint an “Accredited Service Provider” by July 31, 2026, with smaller entities joining progressively. Even in free zones, a compliant accounting and invoicing system (VAT and e-invoicing) is becoming a strategic prerequisite.
Expansion or Relocation: Choosing Your Strategy from France
For a French company, two main strategies emerge: expansion or complete relocation.
Expansion involves keeping the French company and creating a parallel entity in Dubai (subsidiary, branch, free zone company…). This is the most common path, as it allows testing the market without jeopardizing the existing business or the company’s French tax status. It also isolates risks: the Dubai company remains legally separate, and the French parent company is generally not liable for its debts, except in the case of a branch.
A radical relocation involves transferring the headquarters of the French business to Dubai. This requires, on the French side, dissolving the company via an extraordinary general meeting, appointing a liquidator, and formalities with the RCS and the SIE. The benefit lies in the continuity of business history if the company is “reconstituted” in Dubai and in the change of tax residency to the Emirates. However, this option triggers complex tax issues in France (potential exit tax, latent capital gains, CFC rules, effective management residency) requiring specialized guidance.
In practice, most French entrepreneurs start with expansion, often via a free zone company, before adjusting their structure if the market confirms its potential.
Choosing Between Mainland, Free Zone, and Offshore
To develop a company in Dubai, you must first choose your “jurisdiction”: mainland, free zone, or offshore. Each has its advantages, constraints, and costs, which can be summarized as follows.
Mainland: Direct Access to the Local Market
A mainland company is licensed by the Department of Economy and Tourism (DET) and can trade freely throughout the country, respond to public tenders, and open physical sales outlets without geographic restriction. In most sectors, 100% of the capital can be held by non-residents following the post-2021 reforms.
In return, a mainland company must have a physical office, with a lease registered in the Ejari system. The annual cost of this registration typically ranges from 4,000 to 6,000 AED, plus the rent itself; a dedicated office can represent 30,000 AED per year or more depending on location.
Mainland commercial licenses offer great flexibility to combine several activities under a single document.
Allows up to 10 different activities on the same document, from a catalog of over 2,000 commercial, professional, or industrial activities.
The license is valid for one year and must be renewed annually to maintain its legal effect.
Free Zones: 100% Ownership, Controlled Costs
Free zones (over 20 in Dubai alone, and more than 40 across the UAE) offer a very attractive formula for a French entrepreneur targeting international markets, e-commerce, consulting, or tech. Free zone companies (FZE for a single shareholder, FZCO for multiple) guarantee 100% foreign ownership, a favorable tax environment (0% corporate tax on “qualifying” income under substance conditions), and often competitive packages including license, domiciliation, and shared workstation.
Examples of indicative cost levels for a free zone license:
| Free Zone / License | Estimated Starting Cost (excluding visa) |
|---|---|
| IFZA | From 12,900 AED |
| Meydan Free Zone | From 12,500 AED |
| DMCC (trading) | Approx. 20,000–25,000 AED |
| Dubai Media City | From 15,000 AED |
| Dubai Silicon Oasis | From 18,000 AED |
| SPC (budget package) | From 5,750 AED / year |
Most free zones offer “flexi-desks,” meaning occasional usage rights for an office in a business center, often for an annual cost between 5,000 and 15,000 AED. Private offices in free zones typically range from 20,000 to 50,000 AED per year.
A French SME can now start its activity in a UAE free zone at a lower cost, then, without creating a new entity, obtain a six-month temporary permit (around 5,000 AED) to test on-site assignments with clients located on the mainland. This new regulatory feature for 2025-2026 illustrates the flexibility offered by the branch license or temporary permit to penetrate the onshore market.
Offshore: A Holding Tool, Not for Local Business
So-called “offshore” companies (in certain UAE jurisdictions) are designed for asset holding or international structuring. They do not allow local trading within the UAE or obtaining residence visas for managers. They are more of a holding or estate planning tool, complementary to an operational onshore or free zone entity.
What Type of Structure to Choose?
Once the jurisdiction is chosen, you need to select a legal form. The main options for a French entrepreneur are as follows.
Limited Liability Company (LLC)
The LLC is the primary form in the mainland. It can be 100% owned by one or more foreign shareholders in most sectors. Liability is limited to capital contributions, protecting shareholders’ assets. It’s the natural choice for a commercial or service activity targeting the local market and public contracts.
Free Zone Company: FZE or FZCO
In a free zone, the equivalent of an LLC is the FZE (single shareholder) or FZCO (multiple shareholders). Again, shareholders are protected by limited liability, but the activity is in principle confined to the free zone and international markets, unless authorizations described above are obtained to target the onshore market.
Branch Office of a French Company
A branch is a pure and simple extension of your French company: no separate legal personality, same activity as the parent company, and its unlimited liability for commitments made in Dubai. This model is more suitable for large groups wanting to centralize revenue and reporting. For an SME or independent professional, a subsidiary (LLC or free zone company) generally offers better protection.
Sole Establishment and Civil Company
For consulting, expertise, or liberal professions, a Sole Establishment (sole proprietorship) or Civil Company (professional partnership) can be considered. These are structures for professional practice more than asset holding, often akin to the status of a liberal profession in France.
Budget: How Much Capital is Needed to Start?
The setup cost in Dubai varies significantly based on the jurisdiction, sector of activity, office level, number of visas, and use of a consulting firm. Based on available data, we can still establish some general orders of magnitude.
Setup and Operating Costs
| Cost Item | Indicative Range |
|---|---|
| Free zone setup (license only) | 12,500–30,000 AED |
| Mainland setup (license only) | 25,000–50,000 AED |
| Temporary mainland permit from free zone | 5,000 AED (6 months) |
| Ejari (lease registration) | 4,000–6,000 AED / year (excluding rent) |
| Dedicated mainland office | From 30,000 AED / year |
| Free zone flexi-desk | 5,000–15,000 AED / year |
| Investor / Employee visa | 4,000–7,000 AED per person |
| PRO / Consultant services | 3,000–8,000 AED per engagement |
| Certification of a French document | Approx. €500 (≈ 2,200 AED) / document |
In practice, a first-year budget for a French entrepreneur in a free zone, with an investor visa, a flexi-desk, and consulting support, starts around 15,000 to 20,000 AED. For a mainland setup with a physical office and multiple visas, it’s not uncommon to target 60,000 AED or more.
Banks often require a minimum deposit of around 50,000 AED to open a professional account, which ties up part of the working capital at launch.
Taxation: Balancing Emirati Advantages and French Constraints
Taxation is one of Dubai’s major attractions, but also one of its pitfalls if one ignores how the French tax authorities interpret entrepreneurial expatriation.
UAE Side: An Attractive but More Structured Environment
In the UAE, there is no personal income tax. Salaries and dividends received locally are not taxed at this level. However, a federal corporate tax has applied since 2023:
– 0% on profit up to 375,000 AED;
– 9% on the portion of profit above 375,000 AED.
Small structures can benefit until the end of 2026 from a Small Business Relief mechanism that exempts corporate tax for turnover below 3 million AED, provided certain rules are met.
A minimum tax of 15% (Qualified Domestic Minimum Top-up Tax) will apply from 2025 to very large groups with a global consolidated turnover exceeding 750 million euros, in line with international “Pillar 2” rules. This measure, which does not directly affect French SMEs, reflects the growing strength of global tax standards.
VAT is set at 5%, with mandatory registration above 375,000 AED of taxable turnover and voluntary registration possible between 187,500 and 375,000 AED. Certain logistics or industrial parks benefit from a “Designated Zone” status with specific VAT treatments, but most B2B service activities remain subject to the 5% rate.
Free zone companies that obtain “Qualifying Free Zone Person” status can continue to benefit from a 0% rate on their qualifying income, provided they meet economic substance requirements, income segregation, and reporting. Non-qualifying income (e.g., certain flows with the mainland) is taxed at 9%, without benefiting from the 375,000 AED threshold.
Starting July 2026, companies with turnover reaching 50 million AED will also have to comply with e-invoicing obligations, requiring VAT-compliant accounting software and the use of an accredited service provider.
France Side: Double Taxation Avoided but Maximum Vigilance
France and the UAE signed a double taxation treaty in 1990. It aims to prevent the same income from being taxed twice, by defining which country has the primary right to tax which type of income (business profits, salaries, dividends, interest, royalties…). It generally sets a 0% withholding tax rate in the source country for such flows between residents of the two states.
The tax treaty with the United Arab Emirates does not override French tax residency criteria. A person is considered a tax resident in France if their main home is located there, if they stay there for more than 183 days a year, if their main professional activity is carried out there, or if the center of their economic interests is there. One criterion is sufficient. Furthermore, the treaty reserves certain tax benefits for persons “subject to tax” in the other state, which can create complexities with a country like the UAE, which has no personal income tax.
In practice, for an entrepreneur to be considered a tax resident of the UAE, they must:
– spend more than 183 days per year in Emirati territory;
– have their main home and the core of their social life there;
– obtain a Tax Residency Certificate from the Federal Tax Authority;
– be able to demonstrate their material detachment from France (consulate registration, utility bills, local bank accounts…).
If a person is not properly established as a non-tax resident of France, the authorities may continue to consider them a resident. This leads to the taxation of their worldwide income under the progressive IR scale (up to 45%), the application of the 30% PFU (flat tax) on certain capital income, and liability to the IFI (wealth tax) on property located in France.
For companies, the main risk is that a company registered in Dubai may be considered a French tax resident if its place of effective management remains in France (strategic meetings, contract signing, banking control, accounting maintenance). In this case, the company could be taxed at the normal French rate (25% or 15% for some SMEs), despite its Emirati domicile.
Rules on controlled foreign companies (CFC) also exist: if a French company holds more than 50% of a Dubai entity considered low-taxed and lacking real substance, its profits can be reintegrated into the French taxable base. However, a 2014 legal precedent confirmed that these provisions do not apply when there is real economic activity abroad.
Concretely, a successful setup therefore requires real presence in Dubai (premises, activity, team, decisions made on-site) and, for the manager, an in-depth reflection on their own tax residency status.
Visas and Residence: From the 90-Day Visa to the Golden Visa
For French nationals, access to the territory is simple: a visa is issued free of charge on arrival for 90 days within any 180-day period. It is also possible to enter with this visa on arrival and then apply for a change of status to a residence permit without leaving the country, for fees ranging between 600 and 1,200 AED.
To settle long-term, several options exist.
The investor / partner visa, renewable for 2 to 3 years, is linked to the ownership of shares in a registered company (mainland or free zone). It grants an Emirates ID, allows opening bank accounts, renting accommodation, and sponsoring family under certain income conditions.
The Golden Visa offers 5 or 10-year residency without an employer sponsor. For an entrepreneur, it requires proof of a minimum monthly salary of 30,000 AED for six months. The holder can sponsor their spouse, children (no age limit), and domestic workers. The visa remains valid even during prolonged absences of over 6 consecutive months outside the country.
Other regimes target investors (investment from 10 million AED in a company), startup founders (initial capital of at least 50,000 AED), skilled employees (Green Visa 5 years), or remote workers (Remote Work Visa 1 year). To study the market before creating a structure, some also use a “Business Explorer Visa” allowing an exploratory stay.
For a company, the number of visas that can be issued is often linked to the office space: on average, one visa is granted per 9 m² of declared office area.
Opening a Bank Account: A Key Step to Anticipate
No serious development in Dubai can happen without a professional bank account. The process is more demanding than in France, particularly for fintech activities or structures whose ownership traces back to foreign companies.
Banks typically require: guarantees to secure loans, a credit history to assess solvency, proof of income to ensure repayment capacity, and information about the project to understand fund usage.
To open a professional bank account in Dubai, it is necessary to provide several documents. This includes copies of passports and visas for shareholders and directors, as well as their Emirates ID if available. Company documents, such as the trade license, memorandum, lease contract (Ejari or free zone), and a detailed business plan with financial projections, are also required. If the shareholder is a French entity, the parent company’s documents must be presented: Kbis, articles of association, board resolution, shareholding certificate, and shareholder register.
Opening takes on average 2 to 6 weeks and often requires a physical visit by the manager. Banks conduct enhanced due diligence, especially for sensitive sectors (financial services, crypto, international trading).
Several institutions have strong experience with the France-UAE pairing: BNP Paribas Middle East, HSBC UAE, Emirates NBD, Crédit Agricole (via its International Desk and a partnership with First Abu Dhabi Bank), as well as international players like Standard Chartered, Citibank, or local ones like Mashreq, Dubai Islamic Bank, Commercial Bank of Dubai.
Most impose a minimum balance on the professional account, often around 50,000 AED, under penalty of significant account maintenance fees.
Creation Process: From Idea to License
For a French entrepreneur, the typical journey to create a company in Dubai unfolds in several major steps.
The first is to clarify the project: expansion or relocation? Target market (UAE / MENA region / global)? Sector (tech, luxury, healthcare, consulting, logistics…)? Level of commitment (physical office, team on-site, manager’s presence).
After defining your project, the crucial step is to select the jurisdiction (mainland, free zone, offshore) and the type of structure (LLC, FZE/FZCO, branch, etc.). To do this, it is highly recommended to consult a local specialist. You can turn to specialized firms like JSB Incorporation or Shuraa, or to more institutional support through bodies such as CCI France UAE, Business France, or La French Tech UAE.
Once the structure is decided, you must select the activities to list on the license, choose a trade name compliant with local rules (no religious or political references, no offensive terms, regulated use of acronyms) and submit a pre-approval request to the competent authority (DET for mainland, the free zone authority otherwise). Name approval takes on average 1 to 2 business days.
To prepare the file, you must provide copies of passports, photos, forms, draft articles of association, and proof of domiciliation. If a French company is a shareholder, its documents (Kbis, articles of association, resolutions) require notarization, apostille, or legalization, followed by translation into English or Arabic.
Once the license is issued (allow 2 to 4 weeks for most free zones and 8 to 12 weeks for a full process with visas), the company can initiate the visa procedure for the investor and employees (entry into the territory, medical exams, biometrics, issuance of Emirates ID). Concurrently, banking procedures and, if necessary, tax registrations (VAT, corporate tax, e-invoicing) must be initiated.
Leveraging French and Local Networks
One of the great advantages of developing in Dubai from France is the existing Franco-Emirati ecosystem. CCI France UAE, with 550 to 800 members according to sources, organizes numerous events (annual gala, French Tuesday, “Boost Emploi” training, “Meet the CEO” sessions with groups like Schneider Electric, Accor, or Fives). The Synergy Club regularly brings together entrepreneurs and SMEs, and the French Business Council Dubai records valuable feedback: 62% of member French SMEs report revenue growth within two years of setting up.
La French Tech UAE is focusing on AI and deeptech for 2024-2025. It serves as a relay for startups and scaleups looking to set up in the DIFC Innovation Hub or participate in major events like GITEX TechCation 2026, considered the world’s largest tech and AI exhibition.
Business France, from its regional hub in Dubai, assists hundreds of mid-sized companies and SMEs each year, via sector-specific missions, pavilions at trade shows (Gulfood, The Big 5, World Health Expo, etc.), and structured programs. The agency helped generate 1.8 billion euros in additional export revenue for French companies in 2024, including more than 800 based in the UAE.
Other networks, like EurAsia Gulf, Dubai Chambers, or various bilateral councils, complement the picture with targeted meetings (healthcare, Balkans, Russia, Central Asia). The challenge for a newcomer is to choose a few relevant networks rather than spreading too thin, and to invest in them to build lasting relationship capital.
Accounting for Differences in France–Dubai Business Culture
Working remotely from France to develop a company in Dubai requires cultural agility. The French business world values intellectual rigor, formality, clear hierarchy, and an analytical decision-making process. Meetings serve less to decide than to test ideas, debate, and refine arguments. Decisions are often made at the top of the pyramid after several rounds of discussion.
In Dubai, the communication style is hybrid, blending Western influences with Arab or Indian codes, where implicit meaning is very important. Direct refusals are rare; expressions like “inshallah” can mask reluctance. Personal relationship is paramount: a partner is expected to invest time in building a human connection, to open up, and to demonstrate loyalty over the long term.
For a French entrepreneur, this implies: identifying market opportunities, developing a business strategy, managing company finances, recruiting and training a team, and navigating local regulations.
– maintaining the rigor and structure of files, highly appreciated as a sign of seriousness;
– softening their negotiation approach, avoiding ultimatums and excessive pressure;
– accepting sometimes more flexible deadlines, especially when multiple hierarchical levels or public authorities are involved;
– adapting communication: remain direct on substance, but more indirect in form when it comes to refusing, correcting, or criticizing.
This cultural dimension also plays a role in managing the local team: in Dubai, hierarchy remains strong, but the foreign manager must reconcile performance demands with respect for sensitivities, while considering a very international job market.
Promising Sectors for a French Company in Dubai
In 2026, several sectors present an interesting alignment between French expertise and Dubai’s strategic priorities.
In luxury and retail, the Emirati market is expected to reach 7 billion dollars by 2033, with average annual growth of over 5%. The luxury jewelry market alone could more than double between 2025 and 2030. With nearly 18.7 million international visitors in 2024, Dubai is a natural showcase for premium brands, whether in fashion, watchmaking, cosmetics, or lifestyle.
The United Arab Emirates has nearly 5,000 healthcare establishments, positioning itself as a major hub for medical tourism.
Tech and AI benefit from a highly publicized public strategy (AI Strategy 2031), major events (GITEX, Voices of AI Forum), and hubs like the DIFC Innovation Hub or Dubai Internet City. Bilateral France-UAE cooperation in AI, announced with an investment range of 30 to 50 billion euros, opens prospects in cybersecurity, finance, smart cities, or mobility.
Market reports predict growth in office values and rents around 15% in 2026.
Securing Your Project: Compliance, Reporting, Alignment with France
For a development in Dubai to become a growth engine rather than a source of litigation, the key lies in compliance. An Emirati company must:
To maintain an active company in the United Arab Emirates, it is imperative to renew its license annually, file audited financial statements if required by the free zone, and declare ultimate beneficial owners (UBOs) within 60 days of incorporation, with updates within 15 days in case of change. The company must also comply with Economic Substance Regulations (ESR) for relevant activities, register and declare VAT if thresholds are exceeded, and apply e-invoicing rules according to its effective date schedule.
For an entrepreneur still resident in France, French obligations must also be considered: annual declaration of foreign-held bank accounts, significant holdings in non-resident companies, and, if applicable, management of IFI on French real estate assets.
Before taking the step of a complete relocation, a patrimonial audit allows anticipating the effects of a potential exit tax (taxation of latent capital gains on significant securities) and structuring the transition (holding, sale, donation, etc.) to limit the tax bill.
In Summary: Dubai’s Strengths, France’s Requirements
Developing a company in Dubai from France in 2026 means benefiting from an environment where:
– 100% foreign ownership is the norm in most sectors;
– taxation remains very competitive, despite the growing importance of corporate tax;
– access to the onshore market from free zones is increasingly flexible;
– long-term visas (Golden, Green, investor) facilitate long-term settlement;
– the France-UAE bilateral relationship is strong, structured by a high-level business council, a double taxation treaty, and a large community of companies.
To succeed in an entrepreneurial setup in Dubai, it is crucial to respect three pillars: establish a robust legal and tax structuring (by judiciously choosing between mainland, free zone, subsidiary, or branch), develop real substance on the ground (with physical presence, a local team, and decisions made on-site), and integrate into existing Franco-Emirati networks to accelerate learning, all within a context where France maintains heightened vigilance on expatriations and foreign structures.
Under these conditions, Dubai can become for a well-prepared French company not only a growth relay but a strategic pivot towards the entire Middle East–Africa–Asia region.
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Cyril Jarnias is an independent expert in international wealth management with over 20 years of experience. As an expatriate himself, he is dedicated to helping individuals and business leaders build, protect, and pass on their wealth with complete peace of mind.
On his website, cyriljarnias.com, he shares his expertise on international real estate, offshore company formation, and expatriation.
Thanks to his expertise, he offers sound advice to optimize his clients' wealth management. Cyril Jarnias is also recognized for his appearances in many prestigious media outlets such as BFM Business, les Français de l’étranger, Le Figaro, Les Echos, and Mieux vivre votre argent, where he shares his knowledge and know-how in wealth management.
