Dubai Business Setup for Sri Lankan Founders 2026: The Treaty Is Settled, The Money Leaving Colombo Is Not

The agreement between the UAE and Sri Lanka for the avoidance of double taxation was signed on 24 September 2003 and entered into force on 4 July 2004 [1]. It has been operating for more than two decades, it sits on the UAE Ministry of Finance treaty list, and your accountant in Colombo can read it today.

That is the fact most articles lead with. It is also the fact least likely to stop your setup.

What stops Sri Lankan setups is money movement. A UAE company needs capital in a UAE bank account, and getting funds out of Sri Lanka runs through Sri Lankan foreign exchange rules and your licensed bank in Colombo, not through anything a Dubai formation firm controls. Founders routinely do this in the wrong order: licence paid for, bank appointment booked, then a Colombo conversation that should have happened three months earlier.

Since 2013, BusinessDubai.ae has registered UAE companies for founders across South Asia, from AED 5,750 Sharjah licences to Dubai mainland structures carrying staff visas [11]. This guide runs in the order that protects you: funding, structure, cost, tax, residence, compliance.

What is actually in force between the UAE and Sri Lanka?

Short answer: a double taxation agreement, signed 24 September 2003 and in force since 4 July 2004. That is the plain fact, and it is worth less to you than the paragraph after it.

The agreement appears on the UAE Ministry of Finance list, with instruments recorded in 2004 and entry into force on 4 July 2004 [1]. What we will not do is tell you what is inside it. Articles that summarise treaty provisions, quote withholding rates or explain tie-breaker tests for a specific reader are guessing, and a wrong summary is worse than none because it gets relied on. The text is a matter for you and a Sri Lankan tax adviser.

The distinction that matters commercially is this. A treaty allocates taxing rights once you already have income in both states. It does not give you permission to move capital, it does not decide where you are resident, and it does not operate automatically. Relief has to be claimed, and a claim usually rests on evidence that you are a UAE tax resident, which is a separate document with its own test. Our double taxation agreements overview explains how the network works.

Real Talk: If a formation agent tells you the treaty means you pay no tax anywhere, you have learned something useful about the agent rather than the treaty. UAE Corporate Tax has existed since 2023, and anyone still selling Dubai as a zero-tax jurisdiction is reading from a script written before the law came in.

Can you legally fund a UAE company from Sri Lanka?

Short answer: possibly, and the only person who can tell you is your licensed bank in Colombo. This is the first conversation, not the last one.

Sri Lanka regulates outward remittance and outward investment by residents. The rules are administered through licensed commercial banks, they have moved more than once in recent years, and they distinguish between categories of payment. Paying a foreign supplier, investing in shares of a foreign company and maintaining a person living abroad are not the same transaction to a Colombo compliance officer, even leaving the same account on the same day.

We are a UAE formation firm. We can tell you what the UAE side needs and what your licence will cost. We cannot tell you what the Sri Lankan position permits this month, and any UAE agent who states it confidently is guessing on a subject where being wrong is expensive for you and free for them. What we can do is help you ask the question in a form that produces a usable answer.

Ask about the specific transaction, not the general idea. "Can I invest abroad" invites a vague response. "I intend to remit a specific amount to a UAE company in which I hold shares, as share capital, and I will hold a UAE residence visa issued through it" is a question a bank can answer or escalate.

Ask what documentation is required in advance, whether your own residence status changes the answer, and what happens on the way back. Dividends, salary and eventual sale proceeds returning to Sri Lanka are a separate question from capital going out, and far easier to answer at the start than after five years of retained profits.

Common Mistake: Paying for a UAE licence first because it feels like progress, then starting the Colombo conversation. Do the exchange control work first, get the answer in writing if you can, then commit. We have had clients who funded a first year from savings already held outside Sri Lanka because the domestic route took longer than the licence deadline.

There is a second reason, unrelated to Sri Lankan law. A UAE bank opening your account will ask where the money came from and will want it traceable, and a route that was irregular at origin is one you cannot evidence cleanly at the destination.

Not sure whether your funding route works before you commit to a licence? Check your eligibility→

What does the Sri Lankan community in the UAE actually give you?

Short answer: a labour pool, a supplier network and a soft landing. What it does not give you is a business model.

Sri Lankans make up one of the larger expatriate populations in the UAE and have done for decades, which has three practical consequences.

Hiring is easier than the paperwork suggests. Many of the people you would want for a small trading, logistics, hospitality or services business are already resident here, already hold Emirates IDs and already understand a UAE workplace. Hiring a resident who is transferring employment is faster and usually cheaper than recruiting in Colombo. It still requires visa capacity, which is a function of your premises rather than your ambition.

Suppliers already speak your language. Accountants, PRO services, freight forwarders, kitchen staff, drivers and warehouse teams with Sri Lankan management exist here in depth, which shortens the time it takes to build a working ground operation.

Your first customers are reachable. Community networks move information fast, and a restaurant, travel agency or recruitment business can fill its first months on word of mouth alone.

Real Talk: That last advantage is the most common trap we see. A community-first customer base gives an early revenue signal that is not representative of the wider market, and it prices you into a highly price-sensitive segment. Founders read three good months as product-market fit, sign a bigger lease, and find the second ring of customers does not exist on those terms. Treat the community as your beachhead and recruitment pool, and build the business on customers who do not know you personally.

On hiring, the numbers are set by law rather than custom. End of service gratuity under Article 51 of Federal Decree-Law No. 33 of 2021 accrues at 21 days of basic wage per year for the first five years and 30 days per year after, on the last basic wage rather than the total package, capped at two years' wage [5]. Notice under Article 43 is 30 to 90 days and annual leave is 30 days a year [5]. Our labour law guide for employers sets the obligations out with article numbers.

Visa capacity is tied to premises. A flexi desk carries a lower allocation than a private office, one of our mainland packages works to roughly 9 to 12 square metres per visa, and mainland residency visas cost an additional AED 4,000 to 5,200 each [11]. Our free zone visa quotas guide covers allocation.

Free zone, mainland or e-Trader: which route fits you?

Short answer: the decision turns on where your customers are and whether you need residence, not on your nationality and not on the headline price.

Full foreign ownership is available in free zones and for most mainland activities, so ownership rarely decides it. Some regulated activities still involve local participation, and our local sponsor requirements guide covers where.

Choose a free zone if you export goods or services or sell outside the UAE. Dubai is a transhipment market, and for apparel, tea, spices, gems and seafood a UAE entity between the factory and the end buyer is an established structure rather than a clever one. Our import and export guide covers how goods land and our Dubai Customs registration guide covers the code you need first.

Choose mainland if you need to invoice UAE customers directly, sell to government, or operate premises the public walks into. A Sri Lankan restaurant in Karama is a mainland business. A tea exporter shipping to Europe is not.

Consider e-Trader only if you already hold residence. At from around AED 1,370 a year it is the cheapest genuine licence, but an expat holder generally cannot sell physical products, sponsor a residence visa or employ anyone [4]. For a Sri Lankan already resident on a spouse or employment visa who wants to consult, it is excellent. For somebody in Colombo who needs the licence to bring them to Dubai, it is useless. Our e-Trader licence guide covers the detail.

Common Mistake: Buying a free zone licence on price when your customers are in Dubai. That is expensive twice, once for a licence that cannot serve your market and again for the restructure. Our free zone company setup and mainland company setup pages price both routes honestly.

If you are holding assets, shares or intellectual property rather than trading, an offshore company formation suits that purpose, alongside an onshore licence rather than replacing one, since it carries no residence visa and no right to trade inside the UAE.

What does a Dubai setup cost in year one?

Short answer: a Dubai free zone licence starts from about AED 12,800 with one investor visa included, and a Dubai mainland licence from about AED 18,200 before any visa.

Indicative first-year figures from our pricing [11].

Quick Math: The gap between a Sharjah licence at about AED 5,750 and a Dubai free zone package at about AED 12,800 with a visa included is roughly AED 7,050 in year one [11]. For a bootstrapped founder that is a genuine decision. But run the second year too: the Dubai free zone renewal is about AED 9,920, the mainland renewal about AED 15,000, and a visa cycle repeats on top [11]. A licence in the wrong emirate for your customers costs more in lost revenue than the AED 7,050 you saved. Decide on customers first, then let price break the tie.

If cost is the binding constraint, read the business setup in Sharjah, business setup in Ajman and business setup in Abu Dhabi pages first. No licence price includes bank onboarding time, attestation from Sri Lanka, accounting or Corporate Tax registration, and our Dubai setup cost breakdown covers the full first-year picture.

What tax will you actually pay in the UAE?

Short answer: not zero. Corporate Tax is 0% up to AED 375,000 of taxable income and 9% above, and most small companies pay nothing only because they elect a relief on a return they still have to file.

Small Business Relief is where most Sri Lankan-owned UAE companies land. It treats revenue at or below AED 3,000,000 as producing no taxable income, extended by Ministerial Decision No. 131 of 2026 to periods ending on or before 31 December 2029 [6]. Four conditions catch people: it must be elected on the return, it is closed to a Qualifying Free Zone Person, other exemptions are switched off for any period you elect it, and the threshold applies to the current period and all previous ones [6]. Our Small Business Relief guide covers the exclusions.

Real Talk: Owing nothing and having nothing to do are different states. Registration and filing obligations exist independently of liability, and the relief producing your nil result is claimed on the return itself. The most common failure we see at this scale is a founder who concluded there was no tax to pay and did nothing for two tax periods. Our post-setup services team exists partly because of it.

The 0% free zone rate is conditional and not the default. It applies only to qualifying income of a Qualifying Free Zone Person, which requires substance and activity conditions and audited financial statements, and selling to UAE consumers or into the mainland is generally excluded. Our Qualifying Free Zone Person guide sets out the conditions and our Corporate Tax filing guide covers the return. Splitting a business artificially so each part stays under AED 3,000,000 engages the anti-abuse rule in Article 50 of the Corporate Tax Law [6], which is a named risk rather than a structuring idea.

Want the tax registration and annual return handled rather than remembered? Talk to a setup expert→

Why does a UAE tax residency certificate matter when you still have ties at home?

Short answer: because a residence visa is an immigration document and a tax residency certificate is a tax document, and only one of them supports a treaty claim.

If you keep a house, a spouse, school-age children or rental property in Sri Lanka, read this twice.

A UAE company and a UAE residence visa are evidence of connection to the UAE. They are not a determination that you have ceased to be tax resident anywhere else. Your position under Sri Lankan law is decided by Sri Lankan rules and by where you physically spend your time.

The practical instrument is a UAE tax residency certificate. It has its own test, it is issued separately from your visa, and it is generally what a foreign tax authority or bank expects to see when you assert a UAE tax position. Many founders do not discover the distinction until their first filing season, by which point the year is closed.

Two patterns cause most of the trouble. Spending most of the year at home raises questions both on your residence and on where the company is actually managed. And assuming the certificate is automatic is wrong: it has conditions, and satisfying them means arranging your affairs deliberately.

Pro Tip: Sequence the advice. Speak to a Sri Lankan adviser about your residence position and your remittance route before you commit capital, then build the UAE structure to fit that answer. Doing it the other way round narrows your options, because some choices become hard to unwind once the company exists and eighteen months of income has run through it. A UAE formation firm can build the structure you specify. It cannot tell you which structure your home position requires.

How do you get your Sri Lankan documents accepted in the UAE?

Short answer: through a four-step legalisation chain from Colombo to the UAE, because the UAE is not a party to the Hague Apostille Convention and an apostille alone will not clear your file.

This quietly delays more Sri Lankan setups than anything else, because it is the only part of the process that has to happen in Sri Lanka and it cannot be compressed by paying more in Dubai.

The UAE is not a contracting party to the 1961 Apostille Convention [8]. The single-certificate shortcut is therefore unavailable. Instead the document goes through consular legalisation, and each authority certifies the signature of the one before it, which is the mechanical reason no step can be skipped.

The mistake to avoid is getting an apostille in Colombo because a provider offered one and it sounded like the modern equivalent, then arriving in Dubai with a certificate no UAE authority has undertaken to accept. The paper is genuine. It is simply an instrument of a treaty the UAE has not joined. Our apostille and attestation guide sets the chain out in full.

Do the attestation while you are still in Sri Lanka, and do more documents than you think you need. A degree certificate, marriage certificate, children's birth certificates, a general power of attorney and any parent company documents cover almost every scenario in the first two years, and one pass in Colombo is far cheaper than discovering eight months later that you need a birth certificate legalised. Our UAE power of attorney guide covers what a POA can do here.

Which residence visa fits a Sri Lankan founder?

Short answer: investor residence through your own licence is the default, and the Green Visa is worth checking because it removes the sponsor entirely for five years.

Two details are misreported constantly. ICP publishes no minimum investment amount for the investor and partner route [7], so ask where any hard number is published. And the freelance route says each of the two previous years [7], so one strong year does not qualify you.

Green, Golden and Blue permits carry a 180-day grace period after expiry or cancellation, extending to sponsored family members [9], which is a materially larger margin than an employment-sponsored permit provides. Our Green Visa guide covers all three routes and our investor visa requirements guide covers the company route.

What should Sri Lankan founders expect on banking?

Short answer: enhanced due diligence, timelines in weeks rather than days, and a real possibility of decline. Documentation quality is what moves the outcome.

UAE banks apply enhanced due diligence across a range of shareholder profiles. Timelines vary widely, from about a week to several months, and applications are sometimes declined without a reason. What decides it is rarely your passport in isolation. It is the coherence of your business model, the quality of your documentation, the activity written on your licence, and whether a compliance officer can see a plausible transaction flow.

The funding question reappears here in a different form. The bank will ask where your capital came from and will want it documented. An answer traceable through Sri Lankan bank statements is strong. An answer involving cash, informal transfer channels or a third party's account is not, however ordinary that feels at home.

What genuinely helps, in order of impact:

• Documented source of funds, traceable and consistent across every statement you submit.
• A licence activity matching what you will actually do, described identically on the licence, the plan, your website and the form.
• A business plan a compliance officer can follow, with realistic first-year projections.
• Named, verifiable customers and suppliers, and premises that fit the model rather than the cheapest flexi desk attached to a business that plainly needs a warehouse.

Choosing a broad general trading activity because it sounds flexible does not help. Flexibility costs you explicability, and explicability is what approval turns on. A general trading licence attached to what is obviously a tea export business reads as unexplained, and unexplained is the one thing a compliance function cannot sign off. Plan against the pessimistic case, apply to more than one bank, and do not treat a first decline as final. Our guides to opening a corporate bank account and handling a rejection cover the document set and the remediation route.

Quick Math: Once the account is open the running cost is knowable. Monthly fees across the accounts we compared as at August 2026 run from about AED 79 to AED 250, and for a payment-heavy business the per-transfer pricing matters more: forty local transfers a month at AED 25 is AED 12,000 a year, against a AED 2,052 annual spread on monthly fees [12]. Our UAE business bank account comparison has the full table.

Can you sponsor your family?

Short answer: yes, subject to standard income and accommodation conditions, and the overstay exposure is per person, which is the number households get wrong.

Green, Golden and Blue holders may sponsor spouse and children in accordance with the approved requirements, and the 180-day grace period on expiry or cancellation extends to those dependants [7][9]. That household-level protection beats an employment-sponsored permit, where the whole family's status hangs on one employer relationship you do not control. Conditions vary by category and cover income and accommodation, and our family visa requirements guide covers them.

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 anything: ICP requires that status is adjusted or the person leaves [10]. Our overstay fines guide covers the grace periods by permit type.

What do you have to do every year?

Short answer: eight recurring obligations, chained so a late tenancy renewal becomes a blocked family visa two months later.

The dependency chain catches founders who spend part of the year in Colombo. Ejari gates the licence, the licence gates the establishment card, and the card gates every visa. Cancellation runs in reverse: dependants, the individual, employees, the establishment card, then the licence. Miss a tenancy renewal in March and you can be unable to renew a family visa in May, from four thousand kilometres away.

Pro Tip: Put the tenancy renewal in your calendar ninety days ahead rather than thirty. It sits at the top of the chain, which makes it the only date where being early buys slack everywhere downstream. If you are frequently out of the country, appoint somebody locally under a properly attested power of attorney to handle the renewal window. Our establishment card guide covers the link most founders never hear of until it blocks them, and our trade licence renewal guide covers the cycle.

One thing you can stop doing. Economic Substance notifications and reports were cancelled for financial years ending after 31 December 2022 by Cabinet Decision No. 98 of 2024, with fines cancelled and paid fines refunded [13]. The regime still applies to 2019 to 2022 [13].

Want the licence, the visas and the annual filings handled rather than remembered? Get a free consultation→

Real Client Stories

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

Nuwan, the tea exporter who bought the licence before asking the bank

Nuwan ran a family tea business near Kandy and wanted a Dubai entity to sell to buyers in the GCC and Eastern Europe. He took a Dubai free zone package at about AED 12,800 with the investor visa included [11], the right structure for an export model. Then he tried to remit working capital from Colombo and found the process needed documentation he had not prepared and an approval he had not asked about.

The structure was never the problem. The sequence was. He funded six months from receivables already held outside Sri Lanka, which worked but cost him a supplier relationship.

His comment: "Everyone in Dubai was ready to set me up in five days. Nobody asked me how I was going to send the money, and I did not think to ask myself."

Dilani, the consultant who assumed the visa settled her tax position

Dilani incorporated a consultancy in a Dubai free zone, obtained residence, and continued to spend most of the year in Colombo with her family and a rented-out property there. She assumed the company and the visa had closed her Sri Lankan file. They had not. A UAE company and a residence visa do not by themselves determine tax residence elsewhere, because that depends on the other country's law and on physical presence [1].

The correction was manageable once addressed. She adjusted the time she spent in each country and obtained a UAE tax residency certificate. What she needed was a Sri Lankan adviser, before incorporation rather than eighteen months after.

Her comment: "Everybody told me what the Dubai company would do for me. The question I actually needed answered was on the other side."

Rukshan, the restaurateur who read three good months as a market

Rukshan opened a Sri Lankan restaurant on a Dubai mainland licence, correctly, because the public walks in. His first quarter was excellent, driven almost entirely by community word of mouth, and he signed a larger second lease on the strength of it. The second site sat outside that network and traded at less than half the volume, at a rent that assumed the first site's numbers.

He kept the original, closed the second at a loss, and rebuilt around delivery and corporate catering. He also found his staff end of service accrual was a real balance sheet item under Article 51 rather than a theoretical one [5].

His comment: "The community filled my restaurant and then I mistook that for the market. They were doing me a favour, and favours do not scale to a second location."

Start with the funding route, not the licence price

For a Sri Lankan founder the honest summary is short.

The double taxation agreement has been in force since 4 July 2004 [1], and its contents are a matter for you and a Sri Lankan adviser. What decides your timeline is Sri Lankan exchange control on outward remittance, and the only reliable answer comes from your bank in Colombo before you commit to anything. UAE Corporate Tax is 0% up to AED 375,000 and 9% above [3], with Small Business Relief to periods ending on or before 31 December 2029 on election [6]. A Dubai free zone package runs from about AED 12,800 with one investor visa included, and a Dubai mainland licence from about AED 18,200 before any visa, or about AED 26,355 with one [11].

Since 2013, BusinessDubai.ae has handled UAE formation for founders across South Asia: the licence, the residence route, the bank introduction and the compliance that follows. We will tell you which structure fits your customer base before you pay for a licence, and which questions to answer in Colombo first. Our post-setup services team then runs the tax registration, the annual return and the renewal chain.

Get a free consultation→

Frequently Asked Questions

Is there a double taxation treaty between the UAE and Sri Lanka?

Yes. It was signed on 24 September 2003 and entered into force on 4 July 2004, and it appears on the UAE Ministry of Finance list [1]. Read the text with a Sri Lankan tax adviser rather than a summary of its articles.

Does the treaty mean I pay no tax at all?

No. A treaty allocates taxing rights, it does not create an exemption. UAE Corporate Tax applies at 0% up to AED 375,000 and 9% above [3], and your Sri Lankan position depends on Sri Lankan law and on where you spend your time.

Can a Sri Lankan national own 100% of a Dubai company?

Yes. Free zone companies allow full foreign ownership, and mainland companies do too for most activities. Some regulated sectors still involve local participation, so confirm your specific activity.

Can I send money from Sri Lanka to fund a UAE company?

That is a Sri Lankan foreign exchange question rather than a UAE one. Outward remittance and outward investment by residents are regulated through licensed commercial banks, the position changes, and the only reliable answer comes from your bank in Colombo for your specific transaction. Ask before you buy a licence.

How much does a Dubai company cost for a Sri Lankan founder?

A Dubai free zone package starts from about AED 12,800 including one investor visa, and a Dubai mainland licence from about AED 18,200 for the licence alone, or about AED 26,355 with one visa. Ajman free zone is about AED 12,800 and Sharjah licences start from about AED 5,750 [11].

What is the cheapest emirate to set up in?

Of the routes we register, Sharjah is cheapest from about AED 5,750, with Ajman free zone at about AED 12,800 [11]. Both are outside Dubai, which matters if your customers, staff or credibility are specifically in Dubai.

Does the Dubai free zone package really include a visa?

Yes. Our Dubai free zone package at about AED 12,800 in year one includes one investor visa, renewing at about AED 9,920 a year [11]. The Dubai mainland standard licence at about AED 18,200 does not include a visa, and is about AED 26,355 with one.

What documents do I need attested in Sri Lanka?

Typically your degree certificate where a qualification is required, marriage and birth certificates for family sponsorship, any power of attorney, and parent company documents for a branch. Do them all in one pass before you leave.

Is an apostille enough for the UAE?

No. The UAE is not a contracting party to the Hague Apostille Convention, so an apostille alone will not clear a document [8]. The route is notarisation, then the Sri Lankan Ministry of Foreign Affairs, then the UAE mission, then the UAE Ministry of Foreign Affairs.

Will a UAE residence visa end my Sri Lankan tax residence?

Not by itself. Tax residence is decided by the rules of the country in question and by physical presence, and an immigration document is evidence rather than a determination. If you keep property, family or substantial time in Sri Lanka, take Sri Lankan advice before you incorporate.

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

Yes. Registration and filing obligations exist independently of liability, and Small Business Relief is elected on the return rather than instead of it [6]. The return is due within nine months of your tax period end [3].

When do I need to register for VAT?

Once taxable supplies and imports exceed AED 375,000 registration is mandatory. Voluntary registration is available above AED 187,500 of taxable supplies, imports or expenses, at a rate of 5% [2].

Can my free zone company get the 0% Corporate Tax rate automatically?

No. It applies to qualifying income of a Qualifying Free Zone Person, which requires substance and activity conditions and audited financial statements. Selling to UAE consumers or into the mainland is generally an excluded activity.

Is an e-Trader licence a good option for a Sri Lankan founder?

Only if you already hold UAE residence. At from around AED 1,370 a year it is the cheapest genuine licence, but an expat holder generally cannot sell physical products, sponsor a residence visa or employ anyone [4].

What is the minimum investment for a Green Visa as an investor?

ICP publishes no minimum investment amount for the investor and partner route. The stated conditions are proof of investment or contribution to a UAE business venture plus the necessary licences and approvals [7].

What salary or income do I need for the other Green Visa routes?

The skilled worker route requires a minimum monthly salary of AED 15,000 with a bachelor's degree minimum, MOHRE classification levels 1 to 3 and a valid UAE contract. The freelance route requires annual income of not less than AED 360,000 in each of the two previous years plus a Ministry-issued permit [7].

How hard is it for a Sri Lankan founder to open a UAE business account?

It varies and applications are sometimes declined. The determinants are documented source of funds, a licence activity matching the real business, and a plausible transaction profile. Plan for weeks rather than days and apply to more than one bank.

Can I sponsor my family from Sri Lanka?

Yes, subject to the standard income and accommodation conditions. Green, Golden and Blue holders may sponsor spouse and children, and the 180-day grace period extends to those dependants [7][9].

What happens if my visa expires while I am in the UAE?

Overstay accrues at AED 50 per person per day flat, plus an AED 100 smart services fee, and paying does not resolve it because status must be adjusted or the person must leave [10]. Green, Golden and Blue holders have a 180-day grace period first [9].

Can I hire staff from Sri Lanka?

Yes, subject to your visa quota and the work permit process, though hiring somebody already resident here is usually faster. Either way, plan for end of service gratuity at 21 days of basic wage per year for the first five years and 30 days per year after [5].

What is the biggest mistake Sri Lankan founders make?

Solving the Dubai side first. The licence, the visa and the bank introduction are all things a formation firm can arrange. The remittance route and your home tax position are not, and they decide whether the plan works at all.

Related reading: Free Zone vs Mainland vs Offshore, Dubai Document Attestation, UAE Tax Residency Certificate

References

[1] UAE Ministry of Finance. Double Taxation Agreements listing, recording the agreement with Sri Lanka as signed 24 September 2003, instruments recorded 2004, in force 4 July 2004. MoF double taxation agreements

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

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

[4] BusinessDubai.ae analysis of Dubai Department of Economy and Tourism e-Trader licence conditions: annual cost from AED 1,370, expat holders generally barred from selling physical products, and no visa sponsorship or employment. e-Trader licence guide

[5] Ministry of Human Resources and Emiratisation. Federal Decree-Law No. 33 of 2021: Article 29 annual leave, Article 43 notice of 30 to 90 days, Article 51 end of service gratuity at 21 days of basic wage per year for the first five years and 30 days thereafter, capped at two years' wage. Federal Decree-Law No. 33 of 2021 (PDF)

[6] UAE Ministry of Finance and Federal Tax Authority. Ministerial Decision No. 131 of 2026 amending Ministerial Decision No. 73 of 2023 on Small Business Relief: extended to periods ending on or before 31 December 2029, AED 3,000,000 threshold across current and previous periods, election required, Qualifying Free Zone Persons excluded, Article 50 anti-abuse rule. MoF financial legislation

[7] Federal Authority for Identity, Citizenship, Customs and Port Security (ICP). UAE Green Residency: five years, self-sponsored, skilled worker at AED 15,000 minimum monthly salary with MOHRE levels 1 to 3, freelance at annual income of not less than AED 360,000 in each of the two previous years, investor and partner with no minimum investment amount published. ICP Green Residency

[8] BusinessDubai.ae analysis of the Hague Conference status table for the 1961 Apostille Convention, recording that the UAE is not a contracting party, and of the four-step consular legalisation chain that applies instead. Dubai apostille and document attestation guide

[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 visa or residence violation fine: AED 50 per person per day flat, AED 100 smart services fee, and the requirement that status be adjusted or the individual leave the UAE. ICP visa and residence violation fines

[11] BusinessDubai.ae. Indicative first-year formation pricing and internal registration data since 2013: Dubai free zone from about AED 12,800 including one investor visa, renewal about AED 9,920; Dubai mainland standard from about AED 18,200 licence only, renewal about AED 15,000, about AED 26,355 with one visa; Abu Dhabi mainland about AED 22,600; Ajman free zone about AED 12,800; SHAMS about AED 15,200; IFZA about AED 20,100; Sharjah from about AED 5,750; mainland visas at an additional AED 4,000 to 5,200 each; roughly 9 to 12 square metres per visa. businessdubai.ae

[12] BusinessDubai.ae. UAE business banking comparison as at August 2026: monthly fees from AED 79 to AED 250, balance and fall-below conditions, transfer pricing, WPS charges, closure fees and card foreign exchange markups. UAE business bank account comparison

[13] UAE Ministry of Finance. Cabinet Decision No. 98 of 2024 amending Cabinet Decision No. 57 of 2020, cancelling the Economic Substance Notification and Report requirement for financial years ending after 31 December 2022. MoF announcement on Economic Substance

This guide covers the UAE side. It is not Sri Lankan tax or exchange control advice. Take advice in Sri Lanka on your residence position and on outward remittance before you commit capital.