Despite the introduction of corporate tax, the UAE remains one of the most attractive global destinations for startups—particularly in technology, AI, e-commerce, and innovative solutions. The government continues to emphasize that the new tax system is designed to support growth, not to impose pressure. This isn’t just rhetoric: the underlying logic of the UAE’s regulatory framework is to enable small and innovative businesses to grow, scale, and operate transparently—without fear of punitive sanctions.

The UAE is steadily building a unique startup ecosystem where tax reliefs, regulatory flexibility, access to funding, and proximity to tech hubs all work together. Here are the core support mechanisms available in 2025:

Tax Relief for Small Businesses

Under the newly implemented corporate tax regime, startups generating less than AED 3 million in annual revenue can benefit from a 0% tax rate through the Small Business Relief program—available until the end of 2026. This allows young companies to reinvest profits into growth instead of paying tax. The relief applies to UAE-resident legal entities, including those in free zones, provided they are not part of a multinational group or engaged in regulated activities such as banking or insurance. It can be claimed for up to three consecutive tax periods starting from the financial year the company first qualifies. So, if a company qualifies in 2024, it can apply the relief through the 2026 tax year as long as revenue stays within the AED 3 million threshold.

Additionally, businesses with annual turnover below AED 375,000 are exempt from registering for VAT. This is especially important for early-stage startups that are not yet generating large volumes of revenue.

Simplified Registration and Licensing

Most UAE free zones now offer startup-friendly registration packages with reduced fees and more flexible licensing. Dubai Silicon Oasis, a leading technology hub, actively supports startups through programs such as Dtec (Dubai Technology Entrepreneur Campus), MIT collaborations, and guides for founders. Dubai Internet City continues to grow as a center of innovation with events like Step Conference and initiatives like in5 Innovation Centers. In Abu Dhabi, the Abu Dhabi Global Market (ADGM) promotes startup growth through the Tech Startup License and the Hub71 ecosystem. RAKEZ also supports SMEs with initiatives such as the Growth Series 2025 and flexible incorporation models.

These programs aim to reduce barriers for entrepreneurs by offering Startup, Incubator, or Freelancer packages—often starting from as low as $1,500 per year. They include flexible office options like co-working spaces, deferred capital requirements, and access to advisory support. Startups can launch quickly, legally, and cost-effectively.

Government Funds, Accelerators, and Grants

The UAE’s support infrastructure is one of the ecosystem’s major strengths. Government initiatives like Dubai Future Foundation, the Mohammed bin Rashid Innovation Fund, Hub71 (Abu Dhabi), and Sheraa (Sharjah) provide early-stage funding, grants, mentorship, accelerator programs, and training.

The Emirates Development Bank (EDB) offers financing of up to AED 5 million for tech startups. Platforms such as in5, Flat6Labs, and Astrolabs provide access to infrastructure, events, consulting, and networking—often at little to no cost.

Flexible Immigration Options

Startup founders and key employees benefit from tailored residency options. The UAE offers a Freelance Visa for independent professionals, a developing Startup Visa pathway in select free zones, and a 10-year Golden Visa for founders of innovative companies and investors. This gives entrepreneurs the long-term stability and freedom to build international teams with confidence.

Banking Access for Startups

UAE banks are increasingly catering to the needs of early-stage businesses. In 2025, several institutions—such as WIO Bank, Mashreq NeoBiz, Emirates NBD, and ADCB—introduced startup-specific banking solutions. These include online account setup without branch visits, lower fees, and built-in integration with accounting and tax tools—ideal for remote teams and international clients.

The UAE in 2025 offers startups a rare combination: zero profit tax, flexible incorporation, access to funding, modern banking tools, and secure immigration pathways. It’s one of the few places where launching a global business is possible with low barriers and genuine institutional support.

If you're considering setting up in Dubai, Abu Dhabi, or elsewhere in the Emirates, the team at Garant Business Consultancy can help you assess your options, select the right free zone, incorporate your company, open your bank account, and secure your visa—efficiently and with confidence.