The United Arab Emirates continues to cement its reputation as a global business hub, particularly attractive for French and European companies looking to expand their operations into the Middle East. With its strategic location, tax incentives, robust legal infrastructure, and ease of doing business, the UAE — and especially Dubai — offers an unparalleled gateway to the Gulf region and beyond.
But entering this market requires careful legal, structural, and cultural planning. Whether you’re a French startup seeking global scale, a European SME exploring new clients, or a corporate group seeking tax efficiency and asset protection, this guide breaks down what you need to know.
1. Choosing the Right Legal Structure: Mainland vs Free Zone vs Offshore
Mainland Companies
Setting up a mainland company allows you to operate anywhere in the UAE, including doing business directly with the local market. This structure is regulated by the UAE’s Department of Economic Development (DED) in each emirate.
Key Advantages:
- Ability to work with local clients and government entities
- No restrictions on office location
- More flexibility on activity types
Key Considerations:
- Requires a UAE national service agent or local partner depending on the activity
- Subject to UAE corporate tax (9% from June 2023 onwards)
- Audited financials required for certain license types
Free Zone Companies
For French and EU companies looking for 100% ownership and streamlined administration, free zones are often the best fit. The UAE offers over 40 free zones, each catering to specific sectors (e.g., finance, media, technology, logistics).
Popular Free Zones for European Investors:
- DIFC (Dubai International Financial Centre): Ideal for financial services and holding structures.
- DMCC (Dubai Multi Commodities Centre): Versatile and widely used for trading and services.
- ADGM (Abu Dhabi Global Market): Excellent for asset management, foundations, and SPVs.
Benefits:
- 100% foreign ownership
- Full repatriation of profits
- No import/export duties within the free zone
- Often tax-exempt if income is earned outside the UAE
Caveats:
- Limited ability to do business with the UAE mainland unless you appoint a local distributor or obtain a dual license
- Annual license renewal and compliance with free zone authority regulations
Offshore Companies (e.g., JAFZA Offshore, RAK ICC)
Used mainly for asset holding, international trade, and structuring, not for doing business inside the UAE. Offshore structures are useful for estate planning, IP holding, or as part of a wider group structure.
Notably, these do not grant UAE residency visas or access to local banking easily, which limits their use for active business operations.
2. Visa Options for Founders, Executives, and Staff
Investor and Partner Visas
Available for shareholders of UAE companies. Setting up a company with capital contribution (even symbolic in some free zones) can make you eligible for a renewable 2- or 3-year residency visa.
Documents required typically include:
- Company license and establishment card
- Emirates ID and medical test
- Proof of shareholding
Golden Visa
Highly attractive for high-net-worth founders and executives, the UAE Golden Visa offers 10-year residency to investors, entrepreneurs, and specialized talent.
You may qualify if you:
- Invest significantly in property or business
- Hold intellectual property or patents
- Have senior leadership roles with substantial salary (typically AED 30,000+/month)
Employment Visas
Available for employees of UAE-registered entities. Free zones handle the process internally, while mainland companies work with the Ministry of Human Resources and Emiratisation.
Tips:
- Ensure contracts are compliant with UAE Labour Law
- Allow for 1–2 months lead time for visa approvals
3. Common Pitfalls for EU Companies — And How to Avoid Them
Ignoring Cultural and Legal Nuances
French or European HQs often assume EU-style contracts or governance will translate directly. They don’t. UAE law, especially in employment, corporate governance, and dispute resolution, differs significantly.
Pro Tip: Always adapt contracts to UAE law. French-style clauses on non-compete, termination, or liability may be unenforceable here.
Underestimating Substance Requirements
Post-2023, the UAE has become more aligned with OECD standards. To enjoy 0% tax or free zone benefits, you must demonstrate real economic substance — i.e., staff, office, and decision-making in the UAE.
Delays with Banking
European clients often face challenges opening UAE bank accounts due to strict KYC and compliance. It can take 6–12 weeks and demands clear documentation on UBOs and the source of funds.
Solution: Work with advisors who have established banking relationships and can pre-vet your file.
4. Local Insights for a Smooth Market Entry
1. Consider Local Partnerships
While not mandatory, teaming up with an Emirati partner or advisor can ease licensing, banking, and regulatory navigation. For certain regulated sectors (e.g., medical, media, gold), this is not just helpful—it’s required.
2. Budget for Professional Fees
Expect legal, licensing, and advisory fees in the range of:
- AED 15,000–40,000 for company setup
- AED 5,000–15,000 annually for ongoing compliance
- Higher for regulated sectors or holding structures
3. Get Your Tax and Legal Structuring Right From Day One
With corporate tax now in effect, it’s no longer just about where to set up — it’s about how. Structures involving ADGM foundations, holding companies, or nominee arrangements must be vetted from a tax and compliance angle.
5. Why ASTRUC & Co is the Right Partner
As a boutique firm based in Dubai with deep roots in both French and UAE legal systems, ASTRUC & Co offers:
- Senior-level legal strategy — no hand-offs to juniors
- Cross-border understanding of French civil law and UAE business regulations
- Full-service support: company setup, tax structuring, immigration, commercial contracts, and more
- Warm, human, and business-focused advice tailored to your goals
Conclusion
The UAE remains one of the world’s most entrepreneur-friendly jurisdictions — but only when the legal, tax, and operational pieces are aligned. For French-speaking and EU-based companies looking to establish or expand in the UAE in 2025, now is the time to act.
