United Arab Emirates vs Hong Kong

United Arab Emirates

• Corporate tax is just 9% on profits above AED 375,000 (~$102,110) — well below the OECD average of ~23%. The first AED 375,000 of taxable income is taxed at 0%, and qualifying free zone income can remain at 0% for up to 50 years.
• Zero personal income tax. Salaries, dividends, and investment gains received by individuals are not taxed in the UAE. For founders relocating from high-tax countries, the difference is immediate.
• Zero withholding tax on dividends, interest, and royalties paid by UAE companies to non-residents. Combined with 100+ double taxation treaties, so repatriating profits is simple and cheap.
• 100% foreign ownership has been permitted for mainland LLCs since June 1, 2021 for most commercial activities. Free zone companies have always allowed full foreign ownership. No local partner or sponsor is required.
• 45+ free zones cater to specific industries — from DMCC (commodities and trading, 26,000+ companies) to DIFC (financial services, independent common law courts) to Shams (budget-friendly freelancer packages starting from around AED 5,750, subject to package and visa choices).

Hong Kong

• Territorial taxation — only HK-sourced profits are taxed; offshore income is exempt even when remitted to Hong Kong
• No VAT or GST — reduces compliance burden and makes cross-border trade simpler
• Low corporate tax: 8.25% on the first HK$2M of profits, 16.5% on the rest — among the lowest in developed economies
• No capital gains tax — capital asset sales fall outside Profits Tax completely
• No withholding tax on dividends — shareholders receive distributions without deduction, regardless of nationality

Government fees

• Free Zone LicenceAED 15,000–50,000
• Mainland Trade LicenceAED 10,000–30,000
• Visa Establishment CardAED 2,000–5,000

Government fees

• Company Registry (CR) FeeHKD 1,720
• Business RegistrationHKD 250/yr (one-year)
• Stamp Duty (if applicable)Varies