The UAE has firmly established itself as one of the world’s most attractive destinations for business expansion. With a strong economy, investor-friendly laws, and world-class infrastructure, it offers a solid platform for both local and international companies looking to grow. Whether you’re a startup planning to enter new markets or an established brand seeking to diversify, expanding your business in the UAE is a strategic move.

Why Expand Your Business in the UAE in 2025?

If you’re thinking about expanding, the UAE should be high on your list. Here’s why:

• Strategic location: The UAE connects businesses to Asia, Europe, and Africa, making it a central hub for trade and logistics.
• Tax advantages: Most business types enjoy 0% income tax, while the new 9% corporate tax only applies to profits over AED 375,000.
• Full foreign ownership: Recent reforms allow 100% ownership in many mainland and free zone businesses.
• Pro-digital, pro-business government: Fast licensing, online portals, and long-term residency visas make doing business easier.
• Access to growth markets: Dubai and Abu Dhabi are gateways to booming sectors across the Gulf and MENA region.

Pro Tip: The UAE’s D33 economic strategy aims to double GDP by 2030. Now is the ideal time to expand your business here.

Free Zone vs Mainland

One of the most important decisions is choosing between Free Zone and Mainland jurisdiction. Each has its own set of rules and benefits.

Lukadah’s advisors can help you decide the best fit for your business goals.

Step-by-Step Process to Expand a Business in the UAE

Expanding your business in the UAE is a strategic move, but to ensure success, it’s important to follow a clear process. Here’s a detailed breakdown of each stage:

Step 1: Define Your Expansion Goals

Start by identifying what you aim to achieve—whether it’s entering a new market, launching new products, or opening a regional branch. Clear goals will guide every decision in the setup process.

Step 2: Choose the Right Jurisdiction

Decide whether a Free Zone or Mainland company structure suits your needs. Free zones offer tax benefits and 100% ownership, while mainland companies allow direct trade within the UAE.

Step 3: Finalize Business Activity & Legal Structure

Select a business activity from the approved list and choose a legal form such as LLC, branch, or sole proprietorship. This determines the legal and operational framework of your business.

Step 4: Register Trade Name & Apply for Initial Approvals

Choose a unique trade name that aligns with UAE naming regulations. Lukadah manages all approvals to ensure your name and activity are legally accepted before moving forward.

Step 5: Submit Documents & Get Trade License

Prepare and submit all required documents to the relevant free zone or mainland authority. Once approved, you’ll receive your official trade license to operate legally.

Step 6: Open a Business Bank Account

A local UAE bank account is essential for transactions. Lukadah simplifies the process by connecting you with trusted banks and helping you prepare the necessary paperwork.

Step 7: Lease Office Space (If Required)

Depending on your setup, you may need to lease office space. Lukadah helps you find approved and cost-effective office solutions that meet licensing requirements.

Step 8: Apply for Visas

Once your company is licensed, you can apply for investor and employee visas. We assist with visa applications, medical testing, and Emirates ID registration.

What Documents Are Needed to Expand in the UAE?

Here’s a quick checklist of documents generally required:

• Valid passport copy of the owner(s)
• Visa page or UAE entry stamp
• Emirates ID (if already a resident)
• A business plan (for some activities)
• Tenancy contract (Ejari) for office space
• Memorandum of Association (MOA)

Lukadah Tip: Document requirements vary across jurisdictions. We’ll ensure everything is accurate and submitted correctly.

Key Legal and Tax Considerations for Expansion

As of 2025, here’s what you need to know about staying compliant:

• Corporate Tax (9%): Applies only if your annual profits exceed AED 375,000
• Value-Added Tax (5%): Mandatory if your turnover crosses AED 375,000 annually
• Economic Substance Regulations (ESR): Required for businesses in finance, shipping, IP, and other specified sectors
• Annual Audits: Some Free Zones require annual audits regardless of revenue

Need help with compliance? Lukadah’s tax and accounting experts can handle all filings and reports.

How Lukadah Can Help You Expand

At Lukadah, we don’t just help you register a company; we help you build a thriving business.

• Business Setup & Licensing: From name reservation to full setup, we handle it all with speed and accuracy.
• Corporate Tax & VAT Registration: Ensure you’re tax-registered and compliant before you start operations.
• Bookkeeping & Accounting: Monthly reports, audits, and budget management by certified accountants.
• Visa & PRO Services: End-to-end support for investor, partner, and employee visas.
• Local Market Guidance: We help you assess market potential, competition, and risk.

Bonus: Mention this blog and receive a free consultation on your expansion strategy.

Common Mistakes to Avoid During Expansion

Avoid these common errors to ensure a smooth journey:

• Choosing the wrong jurisdiction for your industry
• Failing to register for VAT or corporate tax
• Assuming Free Zones offer full UAE access
• Incomplete or incorrect document submissions
• Not working with a local advisor who knows the process

Lukadah ensures every step is done right from the start.

FAQs

Q: How long does the expansion process take?

A: Most setups are completed within 5–10 working days, depending on the jurisdiction.

Q: Can I expand my current company, or must I open a new one?

A: You can do both. Lukadah helps you choose between a branch, a subsidiary, or a new company.

Q: Do I need to be in the UAE to expand my business?

A: No. Our team can manage the entire process remotely, with minimal travel needed.

Q: Is corporate tax mandatory for all companies?

A: No. It only applies if your profits exceed AED 375,000 annually.