When did Federal Decree-Law No. 20 of 2025 take effect?

15 October 2025 per Gibson Dunn and Norton Rose Fulbright. Clyde & Co states 15 November 2025. Several provisions are phased over 12-24 months.

Company Registration in Industrial City

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Dubai

Dubai Industrial City is a free economic zone (free zone) established in 2004 in the Emirate of Dubai, UAE. Dubai Industrial City was created to support and develop the industrial sector, offering modern solutions for companies in industries such as light and heavy manufacturing, logistics, warehousing, processing, and distribution. The free zone provides advanced infrastructure, including industrial plots, warehouse complexes, office spaces, and logistics terminals built to international standards. Dubai Industrial City is one of the largest industrial clusters in the region, home to leading local and international manufacturing companies. Businesses registered in Dubai Industrial City are permitted to operate both within the free zone and beyond the UAE. Dubai Industrial City issues the following types of business licenses: Commercial (wholesale and retail trade) Professional (provision of services) Industrial (manufacturing) Dubai Industrial City attracts manufacturers, logistics companies, and distributors from around the world, creating conditions for the development of production, optimization of supply chains, and expansion of operations at both regional and international levels.

What you get:

Access to Local and Global Markets
Remote Company Registration
Full Profit Control

About Dubai Industrial City

Dubai Industrial City is a free economic zone (free zone) established in 2004 in the Emirate of Dubai, UAE. Dubai Industrial City was created to support and develop the industrial sector, offering modern solutions for companies in industries such as light and heavy manufacturing, logistics, warehousing, processing, and distribution.

The free zone provides advanced infrastructure, including industrial plots, warehouse complexes, office spaces, and logistics terminals built to international standards. Dubai Industrial City is one of the largest industrial clusters in the region, home to leading local and international manufacturing companies. Businesses registered in Dubai Industrial City are permitted to operate both within the free zone and beyond the UAE.

Dubai Industrial City issues the following types of business licenses:

Commercial (wholesale and retail trade)
Professional (provision of services)
Industrial (manufacturing)

Dubai Industrial City attracts manufacturers, logistics companies, and distributors from around the world, creating conditions for the development of production, optimization of supply chains, and expansion of operations at both regional and international levels.

Industrial City Offices and Commercial Premises

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Commercial Premises

Business-designated areas: retail spaces in business centers, specialized premises, standalone buildings, and other commercial facilities Commercial Premises – Grade A buildings with LEED certification, basement storage facilities, and spaces for retail, F&B, and wellness services. Retail Spaces – for restaurants and cafés, shops, service providers, corporate showrooms, gyms, and fitness centers. Exhibition halls – specialized spaces for small and medium-sized industrial businesses to showcase their products

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Accomodations

Facilities for employee and labour accommodation close to company premises, safe and well-equipped with modern amenities. Accommodation complexes feature medical centers, leisure areas, supermarkets, and restaurants.

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Warehouses

WarehousesStorage facilities for goods handling and processing, with the option to combine multiple units. Suitable for general, cold and chemical storage, as well as for light industrial use. Include office space and retail showrooms, 6×6 m sliding main door, internal light fittings, and state-of-the-art fire protection systems. On-site parking, loading area, and 24/7 security are also available. Open YardsOpen storage yards with video monitoring for storing construction material, equipment, vehicles, and other large goods. Fully serviced, with loading areas, convenient parking, and access to major roads, ports, and airports.

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Land Plots

Land plots for long-term lease of 20+ years for development, commercial, industrial, and residential use. Fully serviced, with functional infrastructure and power supply access.

Requirements for Legal Entities Names

Must not violate the country laws or contain words that are obscene, indecent or generally offensive
Must not contain the names of Allah, Buddha or God, or any other religious terminology
Must not infringe any third party's intellectual property rights
Must not be identical or similar to local/global brands or registered trademarks
Must not contain geographical names, such as the names of emirates, cities, countries and other landmarks
Must not contain the names of local/international religious, political or governmental organizations

Authorized capital requirements

The minimum share capital required for Dubai Industrial City company is AED 300,000. Its contribution is optional.

Tax Regime and Profit Management

Value Added Tax (VAT)

Since January 1, 2018, the UAE has implemented a VAT rate of 5%, which applies to most goods and services and is charged to companies operating within the country, except for those registered in designated zones.
A Designated Zone is a territory within a free zone that is treated as outside the UAE for tax purposes, allowing goods to be exempt from taxation, provided certain criteria are met. The main taxation rules in Designated Zones are as follows:

The Designated Zones are listed in the Cabinet Decision to Federal Decree-Law No. (8) of 2017 on Value Added Tax (VAT).
Goods moved between or within Designated Zones are not subject to tax.
The export and import of goods between a Designated Zone and a foreign company are also not subject to tax.

For local companies and those registered in Non-Designated Zones (free zones not included in the Designated Zones list), the standard tax rules set forth in the Federal Decree-Law on VAT apply.

Companies with an annual turnover exceeding AED 375,000 are required to register with the Federal Tax Authority (FTA) as VAT taxpayers.
Companies with a turnover between AED 187,500 and AED 375,000 may register on a voluntary basis.
Companies can offset VAT paid on purchases of goods and services (input VAT) against the VAT they collect on sales (output VAT), shifting the tax burden to the final consumer.
Some goods and services may be exempt from VAT or taxed at a 0% rate, such as international transportation, educational, and medical services.

Corporate Tax

As of June 1, 2023, the UAE has introduced a corporate tax at a rate of 9%, levied on the taxable net profit of companies with income exceeding AED 375,000.
A 0% rate is applied to taxable income not exceeding AED 375,000.
Charitable, non-profit organizations and medical institutions are fully exempt from corporate tax.

Excise Tax

Since October 1, 2017, the UAE has introduced an excise tax aimed at reducing the consumption of harmful products and funding healthcare initiatives. The tax applies to alcohol, tobacco products, and beverages containing added sugar, including energy drinks and carbonated beverages.Excise tax rates vary depending on the product category:

50% on carbonated drinks (excluding mineral water)
100% on tobacco products
100% on energy drinks
100% on electronic smoking devices and liquids used for them
50% on products containing added sugar or sweeteners.

Companies dealing with excise goods must register with the Federal Tax Authority (FTA), submit monthly declarations, and maintain records. Excise tax is paid upon the import, production, or release of goods for consumption in the UAE.

Customs Duties

Custom duties in the UAE are applied to most imported goods at a standard rate of 5% of the cost, insurance, and freight (CIF). Exceptions include certain categories of goods, such as medicines and food products, which may be exempt from duties or subject to a reduced rate.
Goods imported into UAE free zones are generally not subject to customs duties as long as they remain within these zones. However, when such goods are transferred to the UAE mainland, standard duties apply.

Personal Income Tax

In the UAE, personal income is not subject to taxation.
UAE citizens and residents are exempt from paying taxes on their personal income, including salaries, interest, dividends, inheritances, gifts, luxury goods, and capital gains.

Local Taxes and Fees

Individual emirates may impose specific local taxes and fees in line with their economic and social needs. These taxes and fees are aimed at supporting public services and implementing infrastructure projects.