How to Move Your Australian Company to Dubai

Moving your Australian company to Dubai requires a full structural replacement of your existing entity. Australian-incorporated companies retain their Australian tax residency regardless of where founders live or where the business operates. Establishing a new UAE entity, satisfying UAE substance requirements, and formally exiting Australian obligations are the three steps that determine whether the move achieves its purpose.

The regulatory interaction between Australian and UAE law is what determines whether a Dubai relocation achieves its financial purpose or creates a more complicated tax problem than the one it was meant to solve. Getting the structure right requires working through both jurisdictions in parallel, not treating them as separate checklists.

We cover the structural options available to Australian founders, the Australian tax obligations that do not disappear on departure, the UAE corporate tax rules that affect free zone entities, and the twelve-step process from Australian company to operational UAE entity.

Why Relocating Requires a New UAE Entity, Not a Company Transfer

Under paragraph (a) of subsection 6(1) of the Income Tax Assessment Act 1936, a company incorporated in Australia is automatically an Australian tax resident. That classification is permanent and statutory. It does not matter where the directors live, where meetings are held, or where revenue is generated. As long as the entity exists on the ASIC register as an Australian company, it is taxable in Australia on its worldwide income.

The central management and control (CMC) test, detailed in Taxation Ruling TR 2018/5 and Practical Compliance Guideline PCG 2018/9 (most recently updated June 2025 to align with CEDS reporting requirements), applies only to foreign-incorporated companies operating in Australia, not to Australian-incorporated companies looking to exit. It is irrelevant to your existing Pty Ltd.

Australian founders therefore have four choices when establishing a UAE presence: set up a new free zone entity, establish a UAE mainland LLC, register a branch of the Australian company in the UAE, or create a UAE holding structure through DIFC or ADGM. Each has different cost, liability, tax, and visa implications. The branch option is the only one that preserves the Australian company’s legal structure, though it carries the highest tax risk of the four, since the parent remains fully exposed to Australian tax obligations.

Until the Australian company is formally deregistered with ASIC, subject to specific eligibility conditions under the Corporations Act 2001, it continues to incur annual review fees, lodgement obligations, and the requirement to maintain at least one director who ordinarily resides in Australia.

The Four UAE Structures Available to Australian Founders

Free Zone Company

All UAE free zones permit 100% foreign ownership with no local partner requirement. A free zone entity is the most common choice for Australian founders relocating a services, technology, trading, or professional services business. There are more than 40 free zones across the UAE, each with different activity permissions, visa allocations, and cost structures.

The main options for Australian business profiles, with approximate first-year costs:

DIFC and ADGM operate under English common law, which is familiar to Australian practitioners and favoured for financial services, fund management, and holding structures. ADGM restructured its commercial licence fees in January 2025, reducing Category B registration costs by more than 50%, from approximately USD 12,500 to USD 5,800 annually.

One restriction applies to all free zone entities: they cannot trade directly with UAE mainland customers without a separate branch licence or temporary permit issued under Dubai Executive Council Resolution No. 11 of 2025. The branch licence costs AED 10,000 per year; a temporary permit costs AED 5,000 for six months. Operating without one subjects the business to administrative penalties under Dubai law.

UAE Mainland LLC

Federal Decree-Law No. 32 of 2021, which came into effect on 2 January 2022, removed the previous requirement that UAE nationals hold 51% of mainland limited liability companies. For most commercial activities, 100% foreign ownership is now available on the mainland through Dubai’s Department of Economy and Tourism (DET).

A small number of sectors still require a local partner or national agent: defence, banking, insurance, telecommunications, and Hajj or Umrah services are designated strategic impact activities under Cabinet Resolution No. 55 of 2021. For these, the old equity rules apply.

Mainland companies have full access to the UAE domestic market without additional permits. First-year costs typically exceed AED 25,000 before office rent and visa fees, with a mandatory physical office registered through the Ejari system.

Branch of the Australian Company

An Australian company can register a branch on the UAE mainland directly under the Ministry of Economy. Ministerial Resolution No. 138 of 2024 simplified this considerably. The previously mandatory AED 50,000 bank guarantee was removed, and the Local Service Agent requirement was eliminated.

The branch has no separate legal personality. The Australian parent bears unlimited liability for all branch operations. Branch revenue is subject to UAE corporate tax at 9% on profits exceeding AED 375,000. Critically, this structure does nothing to reduce Australian tax exposure. The parent company remains an Australian tax resident and is taxable on all worldwide income, including branch profits.

The branch option makes commercial sense only for market-testing or short-term project work where establishing a separate UAE entity is disproportionate. It is not a tax-efficient long-term structure.

UAE Holding Company via DIFC or ADGM

DIFC Prescribed Companies and ADGM Special Purpose Vehicles are passive holding vehicles used to hold shares in operating subsidiaries. The DIFC Prescribed Company costs USD 100 to incorporate with a USD 1,000 annual licence; updated regulations from July 2024 broadened eligibility, though specific criteria apply and should be confirmed with DIFC directly. The ADGM SPV costs USD 1,900 initially with USD 1,400 in annual fees following the January 2025 restructure.

Neither vehicle can employ staff or conduct commercial operations. Their utility lies in holding subsidiary shares, potentially qualifying for participation exemptions under UAE corporate tax, and providing a UAE nexus for structuring purposes.

⚠ Australian founders considering holding structures must analyse these against Part X of the ITAA 1936 before committing. If Australian tax residents retain control of the holding entity, Australian CFC rules may attribute passive income back to Australia, defeating the purpose of the structure.

What Happens to Your Australian Tax Obligations When You Leave

Your Australian Company Remains Taxable Until Deregistered

There is no mechanism under Australian law to change an Australian company’s tax residency status. The incorporation test in section 6(1)(a) of the ITAA 1936 is absolute. Directors relocating to Dubai, ceasing Australian operations, and conducting all business from the UAE does not alter this position. The company continues to file Australian tax returns and pay tax on worldwide income at 25% (for base rate entities with turnover below AUD 50 million) or 30%.

The CMC test becomes relevant if founders establish a new UAE entity and structure it poorly. Following the High Court’s 2016 decision in Bywater Investments v Commissioner of Taxation, the ATO looks at where high-level strategic decisions are actually made, not where directors formally reside. A UAE-incorporated entity whose beneficial owner retains final decision-making authority from Australia, through a combination of shareholding and informal control, may be assessed as having its central management and control in Australia, rendering it an Australian tax resident despite being incorporated in the UAE.

Board meetings must be genuinely conducted in the UAE. Directors must exercise independent judgment. PCG 2018/9 sets out the ATO’s risk assessment framework for CMC across three risk zones. The June 2025 update to that guideline aligned it with CEDS reporting requirements under the Corporations Act 2001, clarifying that a company self-assessing as non-resident but reporting as resident in its Consolidated Entity Disclosure Statement will not be treated as low risk for financial years from 1 July 2024. Entities with documented deliberation at UAE-based board meetings, conducted separately from owner instructions, are assessed as lower audit risk.

Capital Gains Tax Events Triggered on Your Departure

When an individual ceases to be an Australian tax resident, CGT event I1 under section 104-160 of the ITAA 1997 triggers a deemed disposal of all CGT assets, other than taxable Australian property, at their market value on the date of departure. The individual can elect to disregard all gains and losses on those assets, but they then become taxable Australian property and remain subject to Australian CGT on eventual disposal.

For Australian company owners, the four small business CGT concessions may be available when disposing of active business assets before departure, subject to two eligibility conditions: aggregated annual turnover below AUD 2 million, or maximum net asset value (excluding superannuation) below AUD 6 million. The four concessions are: the 15-year exemption (full exemption for assets held over 15 years where the individual is 55 or older and retiring); the 50% active asset reduction; the retirement exemption (AUD 500,000 lifetime cap); and the small business rollover, which defers the gain for up to two years if replacement active assets are acquired.

⚠ The timing of departure, asset disposal, and concession elections is interdependent. Taking these steps in the wrong sequence can disqualify the most valuable concessions. Tax advice before any asset disposal or change of residency is essential.

Several adjacent planning issues arise in the same transition that this article does not address in full. Australian superannuation accumulated before departure remains subject to Australian tax on eventual withdrawal; it does not follow the founder to Dubai and cannot be contributed to from UAE income after cessation of Australian residency. Family trusts with Australian-resident beneficiaries continue to have Australian distribution and tax obligations regardless of where the trustee relocates.

If an Australian company loans funds to a newly established UAE entity owned by the same individuals, Division 7A of the ITAA 1936 may treat those loans as unfranked dividends unless formal loan agreements meeting prescribed terms are in place. Where an Australian entity also funds its UAE subsidiary, thin capitalisation rules under Subdivision 820-D of the ITAA 1997 may limit the deductibility of interest. All four of these require separate advice before any capital is transferred across the structure.

How the ATO Determines Whether You Have Ceased to Be a Resident

Australian individual tax residency is determined by four tests under section 6(1) of the ITAA 1936. Any single test that yields a positive result makes you an Australian tax resident.

The resides test examines your overall pattern of life: physical presence, family location, economic ties, social connections, and intention. It is a holistic assessment with no single decisive factor.

The domicile test is typically the most problematic for departing Australians. A person born in Australia carries an Australian domicile of origin. This persists unless they acquire a domicile of choice in another jurisdiction, which requires both physical residence in that country and a genuine, settled intention to reside there permanently or indefinitely. Even with an Australian domicile, a person is not treated as resident if they have a permanent place of abode outside Australia, meaning a stable, long-term home in Dubai rather than temporary or employer-provided accommodation.

The 183-day test deems a person resident if physically present in Australia for more than 183 days in an income year, unless their usual place of abode is outside Australia with no intention to take up Australian residence. The Commonwealth superannuation test applies only to contributors to Commonwealth Superannuation Scheme or Public Sector Superannuation funds.

Retaining Australian property does not automatically establish residency, but the ATO treats it as a significant indicator of ongoing Australian ties. A recent Administrative Appeals Tribunal case, Quy v Commissioner of Taxation, found an engineer who had worked in Dubai for five years to still be an Australian tax resident, partly because his accommodation was employer-provided and his presence was assignment-dependent rather than reflecting a settled intention to reside in Dubai permanently.

No Double Tax Agreement Exists Between Australia and the UAE

Australia and the UAE have no comprehensive Double Tax Agreement. The ATO’s list of treaty partners does not include the UAE. For Australian founders, this has direct consequences for withholding tax rates, dual residency resolution, and transfer pricing disputes.

Without a DTA, the following withholding tax rates apply to cross-border payments between Australian and UAE entities:

There is no mutual agreement procedure to resolve transfer pricing disputes. There is no treaty tie-breaker to resolve dual residency, covering situations where both jurisdictions assess the same person or entity as their tax resident. Australian domestic law applies exclusively in resolving residency questions, and the ATO is under no obligation to recognise UAE residency claims as determinative.

A foreign income tax offset is available under section 770-75 of the ITAA 1997 for UAE corporate tax paid on income that is also taxable in Australia, but the offset is capped at the Australian tax payable on that income. For entities paying UAE tax at 9% against Australia’s 25–30% rate, a substantial tax gap remains.

UAE Corporate Tax and the Free Zone 0% Rate

The 9% Rate, the AED 375,000 Threshold, and What They Mean for Australian Founders

Federal Decree-Law No. 47 of 2022 introduced UAE corporate tax at a rate of 0% on taxable income up to AED 375,000 and 9% above that threshold. The tax applies to all UAE-resident businesses for financial years commencing on or after 1 June 2023. Corporate tax registration is mandatory for every entity, including free zone companies, regardless of income or tax rate. Failure to register on time attracts an administrative penalty of AED 10,000 under Cabinet Decision No. 10 of 2024.

How Free Zone Entities Access the 0% Rate and the Seven Conditions Required

Free zone entities can access a 0% rate on qualifying income through Qualifying Free Zone Person (QFZP) status. This requires meeting all seven conditions simultaneously. A single failure disqualifies the entity for the current tax period and the following four years.

The seven conditions are: being a juridical person incorporated or registered in a recognised free zone; maintaining adequate substance in the free zone; deriving qualifying income as defined under Ministerial Decision No. 265 of 2023 (updated by MD 229 and MD 230 of 2025, retroactive from 1 June 2023); not having elected to be taxed at the standard 9% rate; complying with the arm’s length standard; maintaining transfer pricing documentation; and producing audited financial statements.

Qualifying activities include manufacturing, processing, trading of qualifying commodities, holding of shares for investment (with a minimum 12-month holding period), regulated fund management, regulated wealth management, treasury and financing to related parties, aircraft financing and leasing, distribution from designated zones, and logistics services.

Excluded activities that cannot qualify include most transactions with natural persons, banking, general insurance, most finance and leasing activities, and the ownership or exploitation of immovable property, with the exception of commercial property within a free zone transacted with free zone counterparties.

Non-qualifying revenue must not exceed the lower of 5% of total revenue or AED 5,000,000. This is the de minimis threshold. Exceed it and QFZP status is lost, triggering 9% tax on all income for the current tax period and the four immediately following.

Substance Requirements After MD 229 of 2025

Adequate substance means that core income-generating activities must be carried out within the free zone, supported by sufficient full-time qualified employees, adequate operating expenditure incurred in the free zone, and appropriate physical assets. MD 229 of 2025 tightened these tests materially. A flexi-desk arrangement with no employees and nominal expenditure will not satisfy the requirements. Each core income-generating activity must be supported by dedicated personnel. An employee cannot be simultaneously counted toward multiple functions.

CIGAs can be outsourced to another free zone person, but the QFZP must maintain adequate supervision and control of the outsourced activity. The FTA’s Corporate Tax Guide on Free Zone Persons provides illustrative examples of what constitutes adequate substance versus a paper arrangement.

Small Business Relief for Entities with Revenue Below AED 3 Million

Ministerial Decision No. 73 of 2023 provides that UAE tax resident persons with revenue not exceeding AED 3,000,000 in the current and all previous tax periods are treated as having no taxable income. Simplified filing applies. The relief is available for tax periods ending on or before 31 December 2026. No extension has been published as of the date of this article. Tax losses incurred during a relief period cannot be carried forward. QFZPs and members of multinational enterprise groups with consolidated revenue above AED 3.15 billion are not eligible.

Australian Controlled Foreign Company Rules and the UAE

The CFC provisions in Part X of the ITAA 1936 are the area most likely to produce an unexpected tax liability for Australian founders who have not taken specific advice on this point.

Australia’s CFC provisions, contained in Part X of the ITAA 1936, attribute the income of a foreign company back to its Australian resident shareholders when those shareholders control the entity. Control is established under the strict control test (five or fewer Australian ‘1% entities’ with associates holding 50% or more) or the assumed controller test (a single entity with associates holding 40% or more).

The UAE is an unlisted country for Australian CFC purposes. It does not appear on Australia’s list of countries with comparable tax systems, which includes the US, UK, Canada, Germany, Japan, France, and New Zealand. Unlisted country status triggers broader attribution rules: if the CFC fails the active income test, all tainted income, regardless of whether it has been distributed, is attributed to Australian shareholders in the year it is earned.

Tainted income comprises passive income (interest, dividends, royalties, rent from associates, net capital gains), tainted sales income from transactions involving associates, and tainted services income from services to or from associates or relating to Australian-based activities.

The active income test provides a safe harbour. If the CFC’s gross tainted income ratio is below 5% of gross turnover, attribution is avoided for active business income. The entity must also maintain a permanent establishment outside Australia, keep proper accounts, and satisfy documentary requirements.

Two implications of the UAE’s tax rates compound this problem. A UAE entity paying 9% corporate tax generates a foreign income tax offset against Australian tax on attributed income, but the 16 to 21 percentage point gap between UAE and Australian rates means substantial top-up tax still applies. A UAE entity qualifying as a QFZP and paying 0% generates no foreign tax credit at all, potentially increasing the Australian tax burden on attributed income compared to an entity paying the standard 9% rate.

⚠ Australian founders must genuinely cease to be Australian tax residents, satisfying all applicable domestic tests, before establishing a UAE entity if they wish to avoid CFC attribution. Establishing the UAE entity first, while still Australian resident, creates a CFC from day one.

Establishing UAE Residency as an Australian Founder

Investor Visa vs Golden Visa for Business Founders

The UAE’s previous 2-year investor visa has been replaced by the 5-year Green Visa for investors, which is self-sponsored and requires evidence of commercial activity in the UAE. The Green Visa has no single federally mandated minimum investment threshold for the investor pathway; eligibility is assessed by the ICP based on the nature and scale of the commercial activity. The Golden Visa pathways, by contrast, carry fixed financial minimums set out below.

The 10-year Golden Visa offers the most security for founders with sufficient capital. There are three qualifying pathways: an AED 2,000,000 deposit in an accredited UAE investment fund; a commercial or industrial licence with paid-up capital of AED 2,000,000 or more; or annual UAE tax payments confirmed by the FTA exceeding AED 250,000. There are also a 5-year real estate pathway requiring property valued at AED 2,000,000 or more, and a 5-year entrepreneur pathway for founders with AED 500,000 in capital and incubator approval, or annual revenues above AED 1,000,000.

Golden Visa holders can remain outside the UAE for more than six consecutive months without losing their residency status, a significant operational advantage for founders managing client relationships in Australia during the transition period.

UAE Tax Residency Certificate Requirements and Australian Residency Implications

The FTA’s Tax Procedures Guide TPGTR1 (October 2024) states explicitly that holding a UAE residence permit does not automatically constitute UAE tax residency. A Tax Residency Certificate requires meeting one of three conditions: physical presence of 183 days or more in a consecutive 12-month period; 90 days or more with a valid UAE residence permit plus a permanent place of residence or employment or business in the UAE; or having one’s primary place of residence and centre of financial and personal interests in the UAE.

The TRC is applied for through the FTA EmaraTax portal. Fees are AED 50 for submission plus AED 500 to AED 1,750 for processing depending on entity type. Processing typically takes 5 to 20 business days for the electronic certificate.

The TRC is a useful document for demonstrating UAE tax residency to third parties, particularly for withholding tax purposes or as evidence in residency disputes. It does not resolve Australian residency status. The ATO applies its own domestic tests regardless of what the UAE confirms, and with no treaty mechanism to defer to, founders must satisfy every applicable Australian test independently. Maintain documented evidence of all factors supporting your cessation of Australian residency from the date of departure.

How To Sequence the Transition From Australian Company to UAE Entity

The steps below are not sequential in isolation. Several run in parallel, but four dependencies determine the outcome: UAE entity formation must precede visa applications; physical presence must be established before the Tax Residency Certificate can be sought; and Australian tax obligations should be assessed and sequenced before any asset disposals. Getting these out of order creates compliance gaps.

1. Step 1. Choose the correct UAE structure based on business activity, market access requirements, visa count, budget, and banking priorities. The structure decision drives every subsequent step.
2. Step 2. Select the free zone or DED jurisdiction. DMCC, IFZA, and Meydan have better track records with UAE corporate bank account approvals than some alternatives.
3. Step 3. Apostille Australian company documents through DFAT at AUD $102 per document with a 2–4 business day processing time. Documents require prior notarisation by an Australian Notary Public; budget AUD $100–300 per document. Five to eight documents are typically required.
4. Step 4. Submit the formation application and receive initial approval from the free zone authority or DED. Free zones typically respond within 2–5 business days. Mainland applications take 2–8 weeks.
5. Step 5. Open a UAE corporate bank account. This is consistently the most time-consuming step. Standard timelines are 3–6 weeks; complex ownership structures face 1–3 months. Banks require: valid trade licence, certificate of incorporation, MOA, passport and visa copies, Emirates ID, office lease, detailed business plan with projected transaction volumes, and source of funds documentation.
6. Step 6. Receive the trade licence and certificate of incorporation. Annual renewal is required.
7. Step 7. Apply for the investor or founder visa through the free zone authority or ICP.
8. Step 8. Obtain Emirates ID. Biometrics are captured at ICP service centres. Processing takes 7–10 business days. Fees range from AED 370 for a 3-year document to AED 1,070 for a 10-year Golden Visa holder.
9. Step 9. Meet the UAE physical presence threshold, which is 183 days minimum for the standard pathway, then apply for the Tax Residency Certificate via FTA EmaraTax.
10. Step 10. Notify the ATO of the change in individual tax residency. Lodge a part-year resident tax return for the departure year. Address deemed disposal of non-taxable Australian property assets under CGT event I1.
11. Step 11. Address ASIC obligations. Either appoint an Australian-resident director to maintain the company, or satisfy the voluntary deregistration conditions under the Corporations Act 2001: no trading, assets below AUD 1,000, no outstanding liabilities, no legal proceedings pending, all ASIC fees paid. Deregistration takes three months after the application is lodged.
12. Step 12. Novate existing contracts to the UAE entity, transfer IP (with documented arm’s length pricing), update invoicing and banking arrangements, and notify clients and suppliers.

Realistic Costs for Australian Founders Setting Up in Dubai

The figures below are indicative of market rates as of early 2026. Free zone costs change frequently; verify directly with each authority before committing.

Budget scenario (RAKEZ or IFZA, one founder, one visa): AED 25,000–40,000 (AUD 10,417–16,667)

Mid-range (DMCC, one founder, flexi desk, one visa): AED 50,000–70,000 (AUD 20,833–29,167)

Premium (DIFC or mainland with physical office): AED 100,000–200,000+ (AUD 41,667–83,333+)

*These figures do not include mandatory health insurance (AED 3,000–15,000 per person annually), housing costs, or the Australian-side accounting and legal fees for tax restructuring, which typically run AUD 5,000–20,000 for a straightforward relocation and materially more for complex structures.*

The Commercial Realities Most Founders Encounter After Incorporation

The regulatory steps described above are only part of the challenge. The practical obstacles founders regularly encounter in the first three to six months after incorporation can be more disruptive than the licensing process itself.

Corporate Banking for Australian-Owned UAE Entities

UAE banks apply rigorous AML and KYC screening to all new corporate accounts. Australian-owned entities in certain sectors face higher scrutiny: fintech, crypto, consulting, legal services, and investment holding companies all trigger enhanced due diligence at most major UAE banks. Rejection rates for first applications are high. Emirates NBD, Abu Dhabi Commercial Bank, and Mashreq are the most commonly used banks for new UAE entities; each has different risk appetites by activity type and by the nationality and residency status of beneficial owners.

Banks require a physical office lease (not a flexi-desk in all cases), a detailed business plan with projected transaction volumes and counterparty details, a description of source of funds, and evidence of existing or contracted client relationships. Structures with complex or layered ownership, particularly those involving Australian trusts or multiple holding entities, extend the approval timeline materially. Without an active corporate bank account, the entity cannot invoice, receive payments, or file UAE corporate tax returns with accurate figures.

DMCC, IFZA, and Meydan free zones have established relationships with UAE banks and generally produce faster account approvals than less well-known zones. Maintaining an existing Australian or international business account as a bridge during the transition period is advisable. Most Australian banks allow non-resident business accounts to remain open, though they will update their records on receipt of a change of address and may apply different terms.

Office and Substance Requirements Beyond Licensing

Several free zones that advertise flexi-desk or virtual office licences impose physical office requirements when the entity applies for more than one or two employee visas. DMCC, for instance, requires a physical office from the third visa upward. This is a common planning gap: founders select the cheapest licence option, then discover that hiring staff requires upgrading to a physical lease that costs AED 50,000 to 150,000 per year in the relevant zone.

UAE employer obligations also apply once staff are on the payroll. The Wage Protection System (WPS) requires that employee salaries be paid through registered UAE bank accounts and reported to the Ministry of Human Resources and Emiratisation (MoHRE) on time. Non-compliance with WPS results in licence suspension. For entities claiming QFZP status, the distinction between a genuine full-time employee and a contracted service provider is material to the substance test.

Seven Errors That Defeat the Purpose of Relocating

• 1. Retaining Australian control over board decisions. If the beneficial owner retains final say on strategic matters, even by video call, the UAE entity’s CMC is assessed as being in Australia. Document genuine deliberation at UAE-based board meetings. PCG 2018/9 provides the risk zone framework for assessing this exposure.
• 2. Insufficient substance in the free zone. MD 229 of 2025 requires proof of value creation, not administrative registration. A flexi-desk with no dedicated employees and nominal expenditure will not satisfy the QFZP test. The consequence is 9% tax on all income for the current period and the four following.
• 3. Failing to satisfy the CFC active income test. Australian residents who retain control of the UAE entity while still being Australian tax residents face attribution of all tainted income. The tainted income ratio must stay below 5% of gross turnover to avoid attribution.
• 4. Selecting a visa category that does not support business principal status. An employment visa sponsored by a third party does not demonstrate founder-level establishment. It undermines both UAE compliance and the Australian residency exit argument.
• 5. Trading with UAE mainland customers using only a free zone licence. Fines reach AED 100,000. Loss of QFZP status is a further consequence. A DET branch licence (AED 10,000/year) provides the legal pathway.
• 6. Confusing UAE residence with UAE tax residency. The FTA is explicit on this point. A residence visa is not a TRC. Without a TRC, the claim to UAE tax residency is undocumented. Without a DTA, the ATO assesses residency under its own rules regardless.
• 7. Retaining the Australian company without appointing an Australian-resident director. A proprietary company must have at least one director who ordinarily resides in Australia under the Corporations Act 2001. Non-compliance exposes the company and its directors to ASIC enforcement.

How Virtuzone Guides Australian Founders Through This Process

Structure, substance, and Australian exit sequencing are the three variables that determine the tax outcome of a Dubai relocation. A misstep on any one of them produces a materially worse result: the UAE entity may be assessed as an Australian tax resident, QFZP status may be lost, or CFC attribution applies to income you expected to receive tax-free.

Virtuzone works with Australian founders from structure selection through to licence issuance, visa processing, and corporate bank account support. We work alongside specialist Australian tax advisers on the exit planning side, ensuring the two processes run in the correct order.

If you are considering relocating your business to Dubai, the most valuable first step is a structured consultation covering your current Australian entity, your proposed UAE structure, and the interaction between the two. Contact Virtuzone to arrange that conversation.

FAQs

Can I move my Australian company to Dubai without setting up a new entity?

No. An Australian-incorporated company is permanently an Australian tax resident under section 6(1)(a) of the ITAA 1936. The only way to establish a tax-efficient UAE presence is to incorporate a new entity in the UAE and, if full exit is the goal, deregister the Australian company with ASIC.

Do I still pay Australian tax if I move my business to Dubai?

Your Australian company continues to pay Australian tax on worldwide income until it is deregistered. As an individual, you pay Australian tax until you satisfy the ATO’s residency tests and are assessed as a non-resident. There is no automatic exemption based on physical relocation.

Is there a double tax agreement between Australia and the UAE?

No. Australia and the UAE have no comprehensive Double Tax Agreement. This means full domestic withholding rates apply to cross-border payments: 30% on unfranked dividends and royalties, 10% on interest. There is no treaty tie-breaker to resolve dual residency disputes.

What is the cheapest way to set up a company in Dubai as an Australian?

RAKEZ (Ras Al Khaimah Economic Zone) offers entry-level packages from AED 6,000 per year, with 24-hour licence issuance and no minimum share capital requirement. IFZA and Meydan Free Zone are also cost-efficient options from AED 12,900 and AED 15,000 respectively, with largely remote setup processes.

How long does it take to set up a company in Dubai from Australia?

Free zone licence approval typically takes 2–5 business days after documents are submitted. Document apostille through DFAT takes 2–4 business days. Corporate bank account opening is the longest step: 3–6 weeks for straightforward structures, up to 3 months for complex ones. End-to-end, budget 6–10 weeks before the entity is fully operational.

What is a Qualifying Free Zone Person and how does it affect Australian founders?

A QFZP is a free zone entity that meets seven cumulative conditions under UAE Federal Decree-Law No. 47 of 2022 and is therefore taxed at 0% on qualifying income rather than the standard 9% rate. Failing any single condition, including substance requirements, results in the 9% rate applying for the current tax period and the four immediately following.

Do I need a UAE tax residency certificate to stop being an Australian tax resident?

No. The ATO determines Australian tax residency under domestic tests: the resides test, domicile test, 183-day test, and superannuation test. A UAE TRC is useful evidence of your UAE position but does not resolve Australian residency. Because no DTA exists, the ATO is not bound by the UAE’s assessment of your residency.

What happens to my Australian company if I move to Dubai?

Your Australian company remains registered with ASIC and continues to incur annual review obligations, lodgement requirements, and the need for at least one Australian-resident director under the Corporations Act 2001. It remains an Australian tax resident until formally deregistered. Simply relocating to Dubai does not alter its legal or tax status.

What documents do I need to apostille for a Dubai company setup?

Typical documents include the ASIC company extract, company constitution, board resolution authorising UAE establishment, power of attorney, and director and shareholder identification. Each document requires notarisation by an Australian Notary Public before apostille through DFAT. Budget AUD $102 per apostille and AUD $100–300 per notarisation.

Can I access the UAE mainland market with a free zone licence?

Not without additional authorisation. Under Dubai Executive Council Resolution No. 11 of 2025, free zone companies can obtain a mainland branch licence for AED 10,000 per year or a temporary commercial permit for AED 5,000 for six months. Operating on the mainland without either subjects the business to administrative penalties under Dubai law, and risks loss of QFZP status.

How do Australian CFC rules apply to a UAE free zone company?

If Australian tax residents control a UAE free zone entity, holding 50% or more of the shares, the entity may be a Controlled Foreign Company under Part X of the ITAA 1936. The UAE’s status as an unlisted country means all tainted income (passive, related-party sales, related-party services) is attributed to Australian shareholders unless the active income test is met: the tainted income ratio must be below 5% of gross turnover.

What is the central management and control test and why does it matter for Dubai relocations?

The CMC test determines whether a foreign-incorporated company is an Australian tax resident. Under Taxation Ruling TR 2018/5, CMC is assessed by where high-level strategic decisions are genuinely made. A UAE entity whose Australian beneficial owner retains final say, regardless of where directors formally reside, may be assessed as having CMC in Australia and taxed as an Australian resident.