Starting a Business in the UAE, Serbia or Kazakhstan? An Honest Comparison of Conditions in 2025 🇦🇪🇷🇸🇰🇿

When an entrepreneur plans to scale their business beyond their home country, the key question is: where to register the company? A well-chosen jurisdiction can provide tax advantages, access to new markets, and the ability to work with banks and international partners. At the same time, the wrong choice may result in additional costs and risks.

In this article, we explore three promising jurisdictions — the UAE, Serbia and Kazakhstan — as options for international business registration. We compare corporate tax rates, startup and ongoing costs, substance requirements, banking access and administrative complexity. By the end, you’ll have a clear understanding of which of these countries may be the best fit for your business.

Taxation and Regulation

UAE 🇦🇪

The United Arab Emirates is traditionally considered one of the key international business hubs in the Middle East. Since June 2023, a corporate tax has been in effect: 0% on profits up to AED 375,000 (around USD 100,000) and 9% on profits above that threshold. The tax applies to both Mainland companies and Free Zone entities. However, certain types of qualifying income earned in Free Zones may still be subject to a 0% rate, provided the company demonstrates genuine economic activity and meets the required conditions. VAT is set at 5%, with exemptions for exports and certain services. There is no personal income tax, no separate capital gains tax, and dividends distributed domestically are exempt. Interest income is included in taxable profits under general rules. A critical requirement is maintaining substance — having a physical office, employees, and real business operations in the UAE. Companies are required to maintain accounting records in line with international standards, store primary documents, file annual tax returns, and in some cases undergo mandatory audits, making ongoing cooperation with accountants essential.

Serbia 🇷🇸

Serbia actively positions itself as a “bridge” between the EU and Eastern Europe. The standard corporate tax rate is 15% — one of the lowest in Europe. VAT is set at 20% (with a reduced rate of 10% for certain goods and services). Dividend tax is withheld at 15%, but this may be reduced under double taxation treaties. Capital gains tax for legal entities is treated as ordinary profit, while individuals pay 15% on capital gains. Personal income tax ranges from 10% to 15% depending on the type of income. Companies are required to maintain full accounting records, file regular tax returns, and appoint a local director and office. While this simplifies tax residency, it also increases administrative expenses.

Kazakhstan 🇰🇿

Kazakhstan is working to strengthen its position as a financial and business hub in Central Asia. The standard corporate tax rate is 20%. The current VAT rate is 12%, but starting January 1, 2026, it will increase to 16% under the new Tax Code. Certain categories will be subject to reduced rates: for example, 5% on medical services and pharmaceuticals in 2026, and 10% from 2027 onward. Dividends are generally taxed at 10%, though exemptions may apply under international treaties. For individuals, a flat personal income tax of 10% applies. There is no separate capital gains tax, as such gains are treated as part of taxable profit. The Astana International Financial Centre (AIFC) offers a special regime with 0% corporate tax, VAT and dividend tax on certain activities. Companies in Kazakhstan must maintain accounting records under international standards, submit tax reports regularly, and in some cases undergo audits, making professional accounting support an essential part of doing business.

Startup and Operating Costs

UAE 🇦🇪

Setting up a company in the Emirates requires significant upfront investment. The main expenses are related to obtaining a license and renting office space — ranging from a low-cost flexi-desk in a Free Zone to a full-fledged office or commercial premises on the Mainland. The average startup cost is between USD 5,000 and 15,000. To this, one must add annual license renewal, office rent, visas for founders and employees, as well as mandatory accounting and audit services.

Serbia 🇷🇸

Registering a company in Serbia is considerably cheaper — around EUR 1,000–2,000, including notary fees and state duties. However, this is only the first step. A foreign owner must appoint a resident director, rent office space, and engage accounting services. On average, the total yearly burden (including rent, accounting, and tax consulting) can reach EUR 5,000–10,000.

Kazakhstan 🇰🇿

In Kazakhstan, registering a LLP (the most common form for small and medium-sized businesses) costs non-residents approximately USD 500–1,000. The final cost depends on the founder’s status — whether a citizen of Kazakhstan, an EAEU country, or a third country. Renting an office is not mandatory for registration; a legal address is sufficient. Additional expenses include notary services, legal documentation, annual accounting support, and, where required, an audit. If registration takes place at the Astana International Financial Centre (AIFC), costs are higher, as the Centre operates under English common law and applies separate regulatory standards and procedures, making it more transparent and familiar to international investors.

Main Legal Entity Forms

UAE 🇦🇪

For foreign investors, the two most common options are an LLC (Limited Liability Company) on the Mainland and a Free Zone Company in one of the many Free Zones. It is also possible to register a branch or a representative office of a foreign company, but these are less popular due to restrictions on their activities.

Serbia 🇷🇸

The most widely used structure is the DOO (Društvo sa Ograničenom Odgovornošću), equivalent to a Limited Liability Company (LLC). For larger projects, a Joint Stock Company (AD) can be registered. Sole proprietorships are also available, but they are not typically used for international business.

Kazakhstan 🇰🇿

The main form for small and medium-sized businesses is the ТОО (Tovarishchestvo s Ogranichennoy Otvetstvennostyu), equivalent to an LLC. Within the Astana International Financial Centre (AIFC), corporate structures are based on English common law — such as private companies, limited partnerships, and others — making them attractive and familiar for international investors.

Banking Access and Financial Infrastructure

UAE 🇦🇪

The UAE’s financial system is considered one of the most advanced in the Middle East. Both major local banks (Emirates NBD, First Abu Dhabi Bank, Mashreq) and international players operate here. Opening a bank account involves strict compliance: banks typically require proof of source of funds, a business plan, an office address, and evidence of employees. Once opened, entrepreneurs gain access to global transactions, multi-currency accounts, and a wide range of financial products. However, the account opening process can take from several weeks to a few months, depending on the business profile.

Serbia 🇷🇸

Serbia’s banking system is integrated with the European network, which simplifies payments with the EU through SEPA transfers. Banks are generally open to foreign investors, though proof of good business reputation and operational transparency is required when opening an account. An additional advantage is the ability to obtain loans and financing in euros, which is crucial for companies operating with the European Union. However, the process of opening an account for a foreign company can take longer compared to residents.

Kazakhstan 🇰🇿

Kazakhstani banks are actively developing international payment services and support cooperation with foreign clients. The primary currency of transactions is the tenge, but multi-currency accounts in US dollars, euros, and rubles are also available. For non-residents, the process of opening an account may take longer and require additional documentation. A key advantage comes with registering a company in the Astana International Financial Centre (AIFC): it operates under its own financial regulators and a legal framework based on English common law, which facilitates international transactions and increases the trust of foreign banks and investors.

Market Access and Strategic Position

UAE 🇦🇪

The Emirates are one of the most important logistics and trade hubs in the Middle East. Thanks to their strategic geographic location, companies registered here gain access to markets in the Gulf, Africa, and Asia, along with convenient logistics for international trade. The country’s advanced port and aviation infrastructure makes the UAE a natural hub for businesses operating across multiple continents simultaneously.

Serbia 🇷🇸

Serbia is located at the crossroads of European and Eastern markets and has signed free trade agreements with the European Union, Russia, Turkey, and several Middle Eastern countries. This enables businesses to use the country as a platform for expansion into both Europe and Eastern or Middle Eastern regions. For many companies, Serbia serves as a strategic “bridge” in their international growth.

Kazakhstan 🇰🇿

Kazakhstan plays a central role in Central Asia and is an active participant in the Eurasian Economic Union (EAEU), which facilitates access to the markets of Russia, Belarus, Armenia, and Kyrgyzstan. In addition, the country is involved in China’s Belt and Road Initiative, strengthening its position as a transit and logistics hub between China and Europe. An added advantage is the Astana International Financial Centre (AIFC), which creates a favorable environment for international investment and cooperation.

Conclusions and Recommendations

The choice of country for business registration depends directly on the company’s goals, partner geography, and the priorities of the owners.

UAE are best suited for entrepreneurs planning global expansion, who value prestige and access to a highly developed banking system. It is the most expensive jurisdiction in terms of setup and ongoing costs, but it provides international recognition, flexibility, and convenient infrastructure for operating across multiple continents.

Serbia is particularly attractive for companies targeting Europe and Eastern Europe. A low corporate tax rate, free trade agreements, and the ability to operate through SEPA payments make it a convenient platform for international business, although administrative procedures remain more traditional.

Kazakhstan is beneficial for companies focused on the CIS and Central Asian markets. Registration is cheaper than in the UAE and Serbia, while the AIFC regime, based on English common law, creates a comfortable environment for attracting investments and cooperating with international partners.

📌 There is no universal answer: the UAE is for those aiming at global ambitions and investor relations, Serbia for those planning entry into Europe and tax optimization, and Kazakhstan for those seeking to strengthen their position in Central Asia and EAEU countries.