Alright — you’re diving into e-commerce and thinking: “Should I set up my company in the UAE or the UK?” Good question. No one-size-fits-all answer here. Depends on what you’re selling, who you’re selling to, and how much you’re ready to spend upfront.
Let’s break it down without all the boring corporate stuff.
UAE: Tax perks, but not cheap
The good stuff:
- Zero tax. Yeah, legit 0% in many Free Zones. That’s a big win.
- Full ownership. You don’t need a local sponsor anymore.
- Great location. Dubai is a major shipping hub — good if you’re targeting Middle East, Africa, or Asia.
- Business vibes. UAE is fast becoming an e-commerce hotspot.
Now the stuff people don’t tell you:
- It’s expensive to set up. You’re looking at $3,000 to $5,000+ yearly.
- Not all Free Zones are accepted by platforms like Amazon or Stripe — gotta choose carefully.
- Banking? It can be a pain. Not impossible, but expect paperwork and delays.
✔️ Best for: Sellers looking for tax efficiency, who aren’t afraid of some upfront cost. Especially if you’re targeting MENA or want to reinvest profits without the tax hit.
UK: Budget-friendly and Stripe-approved
Why it’s popular:
- Setup is fast and cheap. Like, under £50 and done in a day.
- Amazon, Shopify, Stripe, PayPal — all friendly with UK Ltd.
- “UK-based business” still sounds trustworthy to global customers.
- Banking’s easier too — especially with Wise, Revolut, etc.
But here’s the catch:
- You’ll pay corporate tax (currently ~19%).
- Annual filings are a must — even if you didn’t make any sales.
- You’ll probably need an accountant unless you love spreadsheets.
✔️ Best for: Bootstrapped sellers or beginners who want a low-cost setup that works with all major platforms.
Quick comparison:
Thing | UAE Company | UK Ltd Company |
Setup Cost | High ($3K–$5K+) | Low (<£50) |
Taxes | 0% (in Free Zones) | ~19% |
Stripe/Amazon | Depends on Free Zone | Fully supported |
Ownership | 100% foreign allowed | 100% foreign allowed |
Setup Time | 5–10 days | Few hours |
Annual Compliance | Yes | Yes |
Banking | Can be tricky | Pretty smooth |
So… which one should you go for?
If you’ve got the funds and want to keep profits tax-free — UAE’s your guy.
If you’re just getting started or want everything up and running tomorrow — UK is solid.
Some people even use both — UK for operations, UAE for profit holding. But that’s an advanced move. Start with what makes sense for your budget and market.
Either way, both work. You just need to pick the one that works for you.
