Dubai Business Setup for Korean Founders 2026: The Treaty Is Settled. Your Sector Is What Actually Decides the Licence

Korea and the UAE have a double taxation agreement in force. Korea appears on the UAE Ministry of Finance's published list of avoidance of double taxation agreements [1]. That is the treaty question answered, and we will spend very little of this article on it, because in over a decade of registering Korean-owned companies the treaty has almost never been what went wrong.

The thing that goes wrong is the licence. Korean businesses arriving in the UAE cluster into a recognisable set of sectors, and those sectors point in opposite directions. Trade and technology sit comfortably in a free zone. Engineering and contracting do not, because the work happens on UAE sites, for UAE clients, under approvals a free zone licence cannot carry. Content and beauty sit in between, with regulators of their own. Get that call wrong and you lose four months and a licence fee, and you restructure while your first client waits.

Since 2013, BusinessDubai.ae has registered UAE companies across every one of those sectors. This guide is a business-model guide rather than a tax guide, in AED, and it tells you which route your actual activity needs.

Is there a tax treaty between Korea and the UAE?

Short answer: yes, one is in force, and that is genuinely the end of the section.

Korea appears on the UAE Ministry of Finance's list of avoidance of double taxation agreements, so a treaty exists between the two states [1]. That puts Korean founders in a better structural position than nationalities with no treaty at all, where a founder's position rests entirely on one country's domestic law with no tie-breaker available anywhere.

Two things worth knowing, and then we move on.

A treaty does not decide your residence. It allocates taxing rights over categories of income after each state has applied its own rules, and it provides a tie-breaker where both claim you. Whether you have ceased to be a Korean tax resident is a Korean-law question and you should put it to a Korean tax professional, not to a formation firm in Dubai.

Claiming under a treaty generally needs evidence. That evidence is usually a UAE tax residency certificate, which has its own test and is a separate document from your residence visa. Our double taxation agreements overview explains how the UAE treaty network operates generally.

That is the whole of the tax treaty story for a Korean founder. The rest of this guide is about the decision that actually costs money.

What are Korean founders actually setting up in the UAE?

Short answer: trade, construction, engineering and technology, with content and beauty growing fast, and each one implies a different licence.

This is the pattern we see in our own registrations, and it is the honest starting point for a Korean founder because it tells you which half of this article to read carefully.

The split that matters runs straight down the middle of that table. If your revenue comes from work performed in the UAE for UAE clients, especially on sites and under contracts with main contractors or government entities, you are in mainland territory. If your revenue comes from selling internationally, or from services delivered digitally, a free zone is usually cheaper and faster and gives you the same 100% ownership.

Real Talk: The most expensive mistake in Korean files is not a tax mistake. It is registering in a free zone because the package was AED 12,800 and included a visa, then finding that the contract you came for needs a mainland licence and approvals the free zone entity cannot obtain. Choose the licence your first three contracts require, then price it.

Our business activity selection guide covers how activity codes drive everything downstream, and it is worth reading before you commit to a zone.

Why does engineering or contracting push you to the mainland?

Short answer: because the work is performed inside the UAE for UAE clients, and that combination needs an onshore licence and sector approvals a free zone entity generally cannot hold.

Korean engineering and construction firms have a long history in the Gulf, and founders from that background usually arrive with a specific opportunity: a subcontract, a supply agreement, a technical services scope on a project already under way. That is exactly the profile a free zone licence handles badly.

Three constraints drive it.

You are invoicing UAE customers directly. Free zone companies face restrictions on trading into the mainland, and the usual workarounds are a distributor, a branch or a permit. That is manageable for product sales and awkward for a contractor being paid progress claims by a main contractor.

The activity itself is approved, not merely licensed. Engineering, contracting and technical services activities typically carry additional approvals and classification requirements from the relevant municipality or competent authority on top of the trade licence. Those vary by emirate and by activity and they change, so confirm the current list with the licensing authority rather than with any article, this one included.

Premises and staff are real. Contracting needs a tenancy and Ejari, storage, and usually a workforce, which pulls in labour law, WPS payroll and visa quota. None of that fits a flexi desk.

Our mainland company setup page covers the onshore route and its costs, our construction company setup guide, engineering consultancy guide and MEP contracting guide cover the sector requirements in detail, and our technical services versus maintenance licence guide covers a boundary that catches engineering founders constantly.

Common Mistake: Assuming a UAE branch of the Korean parent is automatically the right vehicle because that is how the group did it elsewhere. Sometimes it is, particularly where the client wants the parent's balance sheet and track record on the contract. Sometimes a subsidiary is cleaner for liability and for local hiring. Our branch versus subsidiary guide sets out the trade-offs, and it is a decision worth making deliberately rather than by habit.

Not sure whether your scope needs a mainland licence or a free zone entity with a permit? Check your eligibility→

Why does a tech or trading business fit a free zone?

Short answer: because free zones were built for exactly this, and the visa comes in the package.

If you write software, run a platform, provide IT services, or buy in Korea and sell onward outside the UAE, a free zone gives you 100% ownership, a faster registration and a licence that includes a visa allocation tied to your premises. A Dubai free zone package starts from about AED 12,800 in year one with one investor visa included [7].

For trading, the question is where your buyer is. Selling into the UAE domestic market from a free zone entity generally needs a distributor, a branch or a permit, so if UAE customers are the main market you are usually better off mainland. Selling to the Gulf, Africa, South Asia or back into Asia is the classic free zone use case. Our general trading company guide and import and export guide cover the mechanics, and our customs registration guide covers the code you will need before your first shipment moves.

If you are appointing or becoming a distributor in the UAE, read our commercial agency law guide before you sign anything. Agency and distribution arrangements in the UAE have consequences that are difficult to reverse, and this is one of the few places where a signature made quickly at the start creates a problem that lasts for years.

For software, our software development company guide and the free zone versus mainland comparison for software companies cover the specific question of whether your UAE clients push you onshore.

One warning about the 0% free zone rate, because it is the most oversold line in UAE company formation. It applies only to qualifying income of a Qualifying Free Zone Person, it requires substance and activity conditions plus audited financial statements, and selling to UAE consumers or into the mainland is generally an excluded activity that removes it. Many free zone companies sit on the standard regime, which is fine but is not what the brochure implied. Our Qualifying Free Zone Person guide sets out the conditions and the free zone versus mainland versus offshore comparison sets out the wider boundary. If you are holding intellectual property or shares rather than trading, our offshore company formation page covers a vehicle with no residence visa and no right to trade here.

What about content, gaming and beauty?

Short answer: the licence is usually straightforward and the regulator behind it is not, so check the approval before you check the price.

Korean content, gaming and beauty businesses are a newer and fast-growing part of what we register, and they are the two sectors where founders most often assume the UAE is lighter-touch than it is.

Content, media and gaming. Production, agency work and creator businesses generally sit in a media-focused free zone with an activity from that authority's list. The activity descriptions matter more than usual here, because what counts as production, as advertising, as influencer work and as event services are separate activities with separate permissions. Our media production guide, content creator guide, influencer licence guide and gaming and esports guide cover the options.

Beauty and cosmetics. This is where the split between products and services becomes expensive. Importing and distributing cosmetic products generally requires product registration with the health authority in addition to your trade licence, and that is a process with its own timeline that runs in parallel with company formation rather than after it. Operating a salon is a different activity again, with premises the public enters, which means mainland. Our cosmetics trading guide, cosmetics manufacturing guide and salon and beauty business guide cover each route.

Pro Tip: For a K-beauty brand entering the Gulf, start the product registration conversation at the same time as the licence conversation, not after it. Founders routinely budget for the licence, get it in two weeks, and then wait on product approvals with stock already shipped and a landlord already paid. The licence is rarely the constraint. The product file usually is.

What does a Dubai setup cost in year one?

Short answer: a Dubai free zone licence from about AED 12,800 with one investor visa included, or Dubai mainland from about AED 18,200 for the licence alone.

Figures are indicative and renewals are activity dependent, so treat them as a planning range rather than a quotation [7]. Additional free zone visas run about AED 4,000 to AED 5,000 each, and a mainland residency visa adds roughly AED 4,000 to AED 5,200 [7]. Our free zone company setup page prices the zone routes, and our business setup in Sharjah and business setup in Ajman pages cover the cheaper emirates. Our Dubai cost breakdown covers what does not appear on the licence line.

Quick Math: A contracting business that registers in a free zone at about AED 12,800, works for four months, discovers the scope needs a mainland licence, and restructures onto a Dubai mainland licence at about AED 26,355 with one visa has spent roughly AED 39,155 on licences alone plus a tenancy it did not budget for [7]. The direct loss is about AED 12,800. The real loss is the four months. That is the entire argument for choosing on activity rather than on price.

What tax will the UAE company pay?

Short answer: 0% on taxable income up to AED 375,000 and 9% above it, and most small companies owe nothing only because they elect a relief on a return they still have to file.

Small Business Relief treats revenue at or below AED 3,000,000 as producing no taxable income, and Ministerial Decision No. 131 of 2026 extended it to tax periods ending on or before 31 December 2029 [3]. It must be elected on the return rather than applying automatically, it is closed to Qualifying Free Zone Persons, and other exemptions and deductions are switched off for any period in which you elect.

The loss rule inside it catches loss-making startups [3]. A loss incurred in a period where you elect cannot be carried forward at all and is permanently lost. Unutilised losses from earlier periods where you did not elect can still be carried forward, but only into later periods where you again do not elect. Electing costs you that year's loss and parks the ones you were already carrying. Artificially splitting a business to stay under the threshold engages the general anti-abuse rule in Article 50 of the Corporate Tax Law [3].

Registration and filing are required whether or not you owe anything, and the return and payment are due within nine months of the end of your tax period [2]. Our Small Business Relief guide covers the election and our Corporate Tax filing guide covers the return.

How big is the Korean community, and what does that mean for hiring?

Short answer: smaller than you probably expect, which changes how you staff rather than whether you can.

We are going to be straight about this, because it is the section other guides fill with warm language.

The Korean community in the UAE is real, established and organised, with a business presence going back decades through construction, engineering, energy and trading, plus embassy and trade-body support in Dubai and Abu Dhabi, and Korean restaurants, groceries and a community network in Dubai. What it is not is large in the way the Indian, Pakistani, Filipino or Egyptian communities are large. We do not have a verified 2026 headcount and are not going to invent one; the Korean embassy and KOTRA are the right places to ask.

The practical consequence is about hiring, and it is specific.

The honest version is this. If your operating model assumes a Korean-speaking team in Dubai, budget for relocation and for a longer hiring cycle, because the local pool is thin. If your model can run in English, which is the working language of business in the UAE, you have access to one of the deepest and most international labour markets anywhere, and your hiring problem largely disappears.

Real Talk: The founders who struggle are the ones who try to reproduce a Korean head office in Dubai, with Korean reporting lines, Korean working hours and Korean-speaking staff at every level, then wonder why recruitment takes six months and costs double. The founders who do well hire Korean-speaking leadership for the interface with the parent and staff everything else from the UAE market. That is not a compromise, it is the reason companies come here.

If you do hire, the framework is Federal Decree-Law No. 33 of 2021 [5]. Contracts are fixed-term with a maximum of three years, renewable by agreement. Probation is capped at six months and can be used once per employer, with 14 days' written notice if the employer terminates. Notice on termination is between 30 and 90 days as agreed in the contract. Annual leave is 30 days a year. End of service is 21 days' basic wage per year for the first five years and 30 days per year after that, calculated on the last basic wage rather than the total package, and capped at two years' wage in total. Our hiring guide and labour law guide for employers cover the obligations with article numbers, our WPS payroll guide covers how salaries have to be paid, and our Emiratisation guide covers whether the targets apply to you, which depends on your headcount and category and should be confirmed with MOHRE.

How do Korean documents get accepted in the UAE?

Short answer: through attestation by the Korean authorities and then the UAE mission, finishing with the UAE Ministry of Foreign Affairs, and it is best done before you leave Korea.

Any Korean document you need a UAE authority to act on, whether a degree certificate, a marriage or birth certificate, a power of attorney or the parent company's corporate documents, has to be authenticated through a chain rather than simply translated. In outline, the document is authenticated by the competent Korean authorities, legalised by the UAE mission in Korea, and then attested by the UAE Ministry of Foreign Affairs once it is here.

We are deliberately not printing a step-by-step sequence, a fee table or a turnaround time, because those vary by document type and change, and we will not invent them. Our apostille and attestation guide covers the chain properly and explains the point that catches people from apostille-issuing countries: the UAE is not a party to the Apostille Convention, so an apostille certificate on its own is not the end of the process here.

Common Mistake: Doing the minimum set of documents and travelling. The UAE mission step happens in the country of issue, so a document that arrives in Dubai incomplete usually has to travel back to Korea. Do a degree certificate, a marriage certificate, children's birth certificates, a general power of attorney and the parent company file in one pass while you are still there. That covers almost every scenario in the first two years. Our UAE power of attorney guide covers what a POA lets someone do on your behalf if you are completing part of the setup remotely.

Do you have to report the investment back in Korea?

Short answer: probably something, we are not going to tell you what, and your bank in Korea is the right place to ask before you remit.

Korean residents making outward investments generally deal with their bank in Korea as part of moving funds abroad, and there are reporting expectations attached to establishing and funding a company overseas. We are stating that a reporting question exists. We are deliberately not stating thresholds, forms, deadlines or exemptions, because Korean foreign exchange and outward-investment rules are not our jurisdiction and a wrong number in an article is worse than no number.

So do this in the following order.

The last two lines are the part founders get backwards. If your Korean bank needs a document about the UAE company, it will usually need it attested, and attesting a UAE-issued document for use in Korea is a separate exercise from bringing Korean documents in. Ask what they want before you register, so the paperwork is produced once rather than twice.

Pro Tip: Ask your Korean bank in writing and keep the answer. Handling can vary between banks and branches in practice, and a written answer from the branch that will actually process your remittance is worth more than any general rule you read online, this one included.

Want the UAE-side documents produced in a form your Korean bank will accept? Get a free consultation→

What should a Korean-parent subsidiary expect on banking?

Short answer: the parent-company documentation question, and it is the reason Korean group files take longer than founder-only files.

Opening a UAE business bank account is the step most likely to delay a launch for any nationality. For a UAE company owned by a Korean parent rather than by an individual, there is a specific additional layer: the bank has to understand the group, not just the applicant.

Expect to be asked for the parent's corporate documents in attested form, the ownership structure up to the ultimate beneficial owners, the parent's financial statements, and an explanation of the commercial relationship between the parent and the new UAE entity. That last one is the question founders prepare for least and it is the one that decides files. If the UAE company exists to sell the parent's products in the Gulf, say so plainly, show the supply agreement, and let the projections match.

What decides the outcome, in order:

• A licence activity that matches the real business, described identically on the licence, in the plan, on the website and in the form.
• A clean, documented ownership chain up to the ultimate beneficial owners, consistent with the UBO register you have to maintain anyway.
• Attested parent company documents, prepared in Korea before you need them rather than after the bank asks.
• Documented source of funds for the capital being introduced.
• Named customers and suppliers, ideally with contracts or purchase orders.

Plan for weeks rather than days, and do not commit to supplier terms or payroll dates on the assumption that an account opens quickly. On running costs, monthly fees across the accounts we compared as at August 2026 ran from about AED 79 to AED 250, and only FAB Basic imposed a minimum average balance, at AED 10,000 [8]. For a trading business making many payments, per-transfer pricing matters more than the headline fee: AED 25 per local transfer at Mashreq against transfers included within an overall AED 750,000 per day cap at Wio dwarfs the AED 171 spread between the cheapest and dearest monthly fee [8]. On payroll, Mashreq offers free WPS while Ruya charges AED 31.50 per file per month after a free setup [8].

Our guides to opening a corporate bank account, recovering from a rejection, the UBO requirements and the business bank account comparison cover the document set, the remediation route and the full fee table.

Which residence route fits, and how many visas do you get?

Short answer: investor residence through your own licence is the default, the five-year Green Visa is worth checking, and your visa count is set by your premises.

Two conditions are widely misreported. ICP publishes no minimum investment amount for the investor and partner route [6], despite specific figures circulating online. And the freelance route needs the income threshold in each of the two previous years [6], so a two-year average is not the test. Green, Golden and Blue holders and their sponsored family members have a 180-day grace period after expiry or cancellation [9].

Visa quota is the part that matters most for a contracting or engineering business. Allocation is tied to premises rather than to your hiring plan: a flexi desk or shared desk carries a lower allocation than a private office, and more space generally means more slots. If you are bringing site staff or a technical team, settle the premises before you sign the licence, because retrofitting quota is slower and more expensive than buying the right space at the start. Our free zone visa quotas guide explains how allocations work, our Green Visa guide covers the five-year routes and our investor visa requirements guide covers the company route.

You can sponsor a spouse and children subject to the standard income and accommodation conditions, and the grace period extends to dependants of Green, Golden and Blue holders [6][9]. Our family visa requirements guide covers the conditions.

Real Talk: Overstay fines are AED 50 per person per day, flat rather than escalating, plus an AED 100 smart services fee [10]. A family of four in violation for sixty days is AED 12,000, not AED 3,000. Paying does not resolve it either, because ICP requires that status is adjusted or the person leaves the UAE [10]. There is also an AED 2,000 penalty for misuse of smart services. Our overstay fines guide covers how grace periods differ by permit type.

What do you have to do every year?

Short answer: a chain of obligations where a late tenancy renewal becomes a blocked visa two months later.

Internalise the dependency chain. Ejari gates the licence, the licence gates the establishment card, the card gates every visa, and cancellation runs in reverse: dependants, then the individual, then employees, then the establishment card, then the licence. Our post-setup guide sets it out and our licence renewal guide covers the annual cycle.

One filing you can stop worrying about: Economic Substance notifications and reports were cancelled for financial years ending after 31 December 2022, with the associated fines cancelled and paid fines refunded [11]. The regime still applies to 2019 to 2022, and ADGM and DIFC run their own registrar confirmations.

Real Client Stories

Real examples from businesses we have helped set up. Names have been changed for privacy.

Mr Park, who bought the wrong licence for a site contract

Mr Park arrived with a subcontract scope on a Dubai project and registered in a free zone because the package was quick and included a visa, at about AED 12,800 [7]. Four months later the main contractor's compliance team asked for documentation the free zone entity could not produce, because the work was performed onshore for a UAE client.

We restructured him onto a mainland licence at about AED 26,355 with one visa, plus a tenancy and Ejari he had not budgeted for [7]. The direct cost was about AED 12,800. The cost that hurt was four months of a contract window.

His comment: "I compared licence prices when I should have been comparing what the client's contract required."

Ms Kim, the K-beauty brand that waited on a product file

Ms Kim launched a Korean skincare brand into the Gulf, registered a free zone trading company in under two weeks, signed a warehouse and shipped her first container. Then she discovered the product registration path with the health authority ran on its own timeline, entirely separate from the trade licence, and that nothing could be sold until it completed.

The company was correct. The sequence was not. Product approvals should have started in parallel with the licence, before the stock left Korea.

Her comment: "The licence took two weeks and I planned everything around it. The part that decided my launch date was the part I started last."

Mr Choi, who staffed from the UAE market instead of from Seoul

Mr Choi set up an engineering services company on a mainland licence and initially tried to recruit a Korean-speaking team in Dubai for every role. Three months in he had filled two positions of seven, and the two had cost considerably more than budgeted.

He changed approach. He kept one Korean-speaking director as the interface with the Seoul parent and hired engineers, QA and admin from the wider UAE market in English. The remaining five roles filled in six weeks, and the payroll came in below the original plan.

His comment: "I was trying to build a Seoul office in Dubai. Once I stopped, hiring stopped being the problem."

Choose the licence your contracts need, then price it

For a Korean founder the summary is short.

The treaty is in force and Korea is on the Ministry of Finance list [1], and whether you have ceased to be Korean tax resident is a Korean-law question for a Korean adviser. Neither of those is where Korean files go wrong.

Where they go wrong is the licence. If your revenue comes from work performed in the UAE for UAE clients, especially construction, contracting and engineering, you are looking at mainland from about AED 18,200 for the licence and about AED 26,355 with one visa, plus premises and approvals [7]. If your revenue comes from selling internationally or delivering digitally, a Dubai free zone from about AED 12,800 with one investor visa included is usually right [7]. Content and beauty depend on the regulator behind the activity, not the zone.

The rest is sequencing. Ask your bank in Korea about outward-investment reporting before you remit. Attest your documents in Korea before you fly. Settle premises before you sign, because premises set your visa count. And have the Korean parent's file attested before the bank asks for it.

Since 2013, BusinessDubai.ae has registered UAE companies across trading, contracting, engineering, technology and consumer brands. We will match the licence to the activity, handle the approvals, the visas and the banking, and our post-setup services team will run the tax registration and annual filings that follow.

Talk to a setup expert→

Frequently Asked Questions

Is there a tax treaty between Korea and the UAE?

Yes. Korea appears on the UAE Ministry of Finance's list of avoidance of double taxation agreements, so an agreement is in force [1].

Does the treaty decide whether I am still a Korean tax resident?

No. A treaty allocates taxing rights after each state has applied its own rules and provides a tie-breaker where both claim you. Whether you have ceased Korean residence is a Korean-law question for a Korean tax professional.

Do I need a UAE tax residency certificate?

If you intend to rely on the treaty, usually yes. It is the document a claim generally rests on, it has its own test, and it is separate from your residence visa.

Can a Korean national or company own 100% of a UAE company?

Yes, in free zones and for most mainland activities. There is no Emirati partner requirement for most business activities, though some regulated sectors still involve local participation. Our local sponsor guide covers the exceptions.

Why can a contracting business not just use a free zone licence?

Because free zone companies face restrictions on trading into the mainland, and contracting means invoicing UAE clients for work performed onshore. Contracting and engineering activities also carry approvals and classification requirements that sit outside the trade licence.

Should the UAE entity be a branch of the Korean parent or a subsidiary?

It depends on liability, on local hiring and on what your clients want to see on the contract. Our branch versus subsidiary guide sets out the trade-offs. Decide it deliberately rather than copying what the group did elsewhere.

Is a free zone right for a software company?

Usually yes, unless your customers are UAE-based and want to contract with an onshore entity. Our free zone versus mainland guide for software companies covers that specific question.

What does a K-beauty brand need beyond a trade licence?

Importing and distributing cosmetic products generally requires product registration with the health authority, which runs on its own timeline. Start it in parallel with the licence, not after the stock ships.

How much does a Dubai company cost for a Korean founder?

Indicatively, a Dubai free zone licence from about AED 12,800 with one investor visa included, or Dubai mainland from about AED 18,200 for the licence alone and about AED 26,355 with one visa [7].

What Corporate Tax will the UAE company pay?

0% on taxable income up to AED 375,000 and 9% above that [2]. Small Business Relief can produce nil taxable income where revenue is at or below AED 3,000,000, for periods ending on or before 31 December 2029, on election [3].

Do I have to register for Corporate Tax if I owe nothing?

Yes. Registration and filing exist independently of liability, and Small Business Relief is elected on the return rather than instead of it [3].

When do I register for VAT?

Once taxable supplies and imports exceed AED 375,000. Voluntary registration is available above AED 187,500 of taxable supplies, imports or expenses [4].

How large is the Korean community in the UAE?

It is established and organised but considerably smaller than the largest expatriate communities here. We do not publish a headcount because we do not have a verified 2026 figure. The Korean embassy and KOTRA are the right places to ask.

Can I hire Korean-speaking staff in Dubai?

You can, but the local pool is thin, so expect to recruit from Korea or pay a premium. English is the working language of UAE business, and staffing in English gives you access to a far deeper market.

What are the basics of UAE employment law?

Contracts are fixed-term with a maximum of three years, probation is capped at six months, notice runs between 30 and 90 days as agreed, annual leave is 30 days a year, and end of service is 21 days' basic wage per year for the first five years and 30 days after, capped at two years' wage [5].

How do I get Korean documents accepted in the UAE?

Through authentication by the competent Korean authorities, legalisation by the UAE mission in Korea, and attestation by the UAE Ministry of Foreign Affairs. Do it before you leave Korea, because the mission step happens in the country of issue.

Do I have to report my UAE investment to anyone in Korea?

There are reporting expectations attached to outward investment by Korean residents, but we are not going to state thresholds or forms. Ask your bank in Korea and a Korean adviser in writing before you remit funds.

Why does the bank want the Korean parent's documents?

Because a UAE company owned by a foreign parent is assessed as part of a group. Expect attested parent corporate documents, the ownership chain up to the ultimate beneficial owners, parent financial statements, and an explanation of the commercial relationship between parent and subsidiary.

How many visas does my licence give me?

It depends on your premises rather than your hiring plan. A flexi desk carries a lower allocation than a private office, and more space generally means more slots, so settle the premises before you sign the licence.

What is the biggest mistake Korean founders make in the UAE?

Choosing the licence on price and discovering later that the contract, the client or the regulator required a different one. The licence fee is rarely the expensive part of getting it wrong.

Related reading: UAE Branch vs Subsidiary

References

[1] UAE Ministry of Finance. Avoidance of Double Taxation Agreements list, on which the Republic of Korea appears, confirming that an agreement is in force between Korea and the United Arab Emirates. MoF double taxation agreements

[2] The Official Portal of the UAE Government and the Federal Tax Authority. Corporate tax at 0% on taxable income up to AED 375,000 and 9% above, with the return and payment due within nine months from the end of the tax period. u.ae corporate tax

[3] UAE Ministry of Finance. Ministerial Decision No. 131 of 2026 amending Ministerial Decision No. 73 of 2023 on Small Business Relief: extension to periods ending on or before 31 December 2029, the AED 3,000,000 threshold, election on the return, exclusion of Qualifying Free Zone Persons, and the loss and net interest treatment in Articles 4 and 5. MoF financial legislation

[4] Federal Tax Authority. Registration for VAT: mandatory above AED 375,000 of taxable supplies and imports, voluntary above AED 187,500 of taxable supplies, imports or expenses, at a rate of 5%. FTA VAT registration

[5] Ministry of Human Resources and Emiratisation. Federal Decree-Law No. 33 of 2021 regulating employment relationships and its amendments: fixed-term contracts, probation under Article 9, notice under Article 43, annual leave under Article 29 and end of service under Article 51. MOHRE labour law

[6] Federal Authority for Identity, Citizenship, Customs and Port Security (ICP). UAE Green Residency conditions for skilled workers, freelancers and investors, including the AED 15,000 salary and AED 360,000 income thresholds and the absence of any published minimum investment amount. ICP Green Residency

[7] BusinessDubai.ae. Indicative first-year and renewal pricing from our own money pages and registration data since 2013, covering the Dubai free zone, Dubai mainland, Ajman Free Zone, SHAMS and Sharjah routes quoted in this guide, together with additional visa costs. businessdubai.ae

[8] BusinessDubai.ae. UAE business banking comparison as at August 2026: monthly fees, minimum balance conditions, transfer pricing, WPS charges and card foreign exchange markups. UAE business bank account comparison

[9] Federal Authority for Identity, Citizenship, Customs and Port Security (ICP). Cancellation of residency permits, including the 180-day grace period for Golden, Green and Blue residence holders and their family members. ICP residence permit cancellation

[10] Federal Authority for Identity, Citizenship, Customs and Port Security (ICP). Payment of a visa or residence violation fine: AED 50 per person per day flat, an AED 100 smart services fee, an AED 2,000 penalty for misuse of smart services, and the requirement that status be adjusted or the individual leave the UAE. ICP visa and residence violation fines

[11] UAE Ministry of Finance. Announcement of Cabinet Decision No. 98 of 2024 cancelling the Economic Substance Notification and Report requirement for financial years ending after 31 December 2022, cancelling the associated fines and refunding fines already paid. MoF announcement on Economic Substance

This guide covers the UAE side. It is not Korean tax, foreign exchange or outward-investment advice. Confirm your Korean reporting position with your bank in Korea and a Korean adviser before you remit funds or register.