Why Move Your Business from Hong Kong to Dubai in 2025?

Why Move Your Business from Hong Kong to Dubai in 2025?

Introduction: Move Your Business from Hong Kong to Dubai in 2025

With its business-friendly environment, tax incentives, and strategic location, Dubai has become a prime destination for entrepreneurs looking to relocate from Hong Kong. Whether you are seeking a low-cost business setup in Dubai or want to take advantage of the cheapest business license in Dubai, the UAE offers numerous opportunities for growth and global expansion. As Hong Kong businesses look to diversify due to changing market conditions, Dubai’s stable economy, 100% foreign ownership in free zones, and zero personal income tax make it an attractive choice. The cost of business license in Dubai depends on the type of setup you choose, whether it’s a mainland company for full UAE market access or a free zone company for tax benefits and ease of operations.

If you’re planning to move your business from Hong Kong to Dubai, understanding the cost of company formation in UAE, legal requirements, and visa processes is essential. In this guide, we’ll walk you through everything you need to know to ensure a smooth relocation and profitable company setup in Dubai UAE.

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Key Reasons to Move Your Business from Hong Kong to Dubai

As economic conditions shift in Hong Kong, many business owners are considering moving their businesses to Dubai for greater market stability, global connectivity, and business-friendly regulations. Whether you’re planning a low-cost business setup in Dubai or a large-scale corporate expansion, the UAE provides a wide range of options, including mainland and free zone business structures.

Move Your Business from Hong Kong to Dubai

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1. Business-Friendly Environment

Dubai offers 100% foreign ownership in free zones, full repatriation of profits, and a stable regulatory framework that supports business growth. The cost of company formation in UAE is competitive, with various flexible setup options.

2. Tax Advantages

Unlike Hong Kong’s evolving tax policies, Dubai has zero personal income tax, low corporate tax rates, and free zone tax exemptions, making it one of the most attractive business destinations.

3. Global Market Access

Dubai serves as a gateway to the Middle East, Africa, and Europe, providing businesses with access to over 2 billion consumers. Its world-class logistics, ports, and airports make it a global trading hub.

4. Simplified Business Setup Process

The cost of starting a business in Dubai is transparent, and the UAE government provides fast-tracked licensing processes to make company formation easy. Dubai business setup consultants offer tailored solutions to streamline relocation.

5. High Quality of Life & Safety

Dubai offers world-class infrastructure, modern amenities, and a high standard of living, making it an excellent choice for business owners and employees. The UAE ranks among the safest countries in the world, ensuring a secure business environment.

Business Setup Comparison – Hong Kong vs. Dubai

For entrepreneurs considering business setup in Hong Kong vs Dubai, understanding the key differences in taxation, ownership regulations, market access, and cost of company formation in UAE can help in making an informed decision. Below is a detailed comparison of both locations.

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business setup in Hong Kong vs Dubai

Hong Kong vs. Dubai: Business Setup & Economic Factors

FactorHong KongDubai
Corporate Tax8.25% – 16.5% (progressive tax system)9% (for profits exceeding AED 375,000), 0% in free zones
Personal Income TaxProgressive tax up to 15%Zero personal income tax
Foreign OwnershipLimited in certain industries100% foreign ownership in free zones
Market AccessStrong Asia-Pacific trade hubGateway to Middle East, Africa, and Europe
Ease of Business SetupRequires physical office, government approvalsQuick company formation, free zone & mainland options
Business License OptionsLimited categories, licensing complexityMultiple licenses (commercial, industrial, professional, etc.)
Repatriation of ProfitsFull repatriation allowedFull repatriation of profits and capital
VAT/GST0% VAT5% VAT (except in free zones)
Customs & Trade AdvantagesLow tariffs, free trade agreements with ChinaNo import/export duties in free zones
Cost of Business LicenseVaries by industry, renewal fees applyLow-cost business setup in Dubai, free zone incentives
Residency & Business VisasLimited work visa optionsInvestor visas, long-term residence options
Banking & Financial ServicesAdvanced banking, but increased scrutinyStable banking system, crypto-friendly environment
Quality of Life & SafetyHigh, but rising cost of livingHigh, with lower living costs & strong infrastructure
Regulatory EnvironmentIncreasing government oversightPro-business government policies

Key Takeaways:

  • Dubai offers 100% foreign ownership in free zones, while Hong Kong has restrictions on certain industries.
  • Dubai’s corporate tax is lower (or 0% in free zones), while Hong Kong follows a progressive tax system.
  • Market access in Dubai extends to the Middle East, Africa, and Europe, making it a prime location for international businesses.
  • Business licenses in Dubai are diverse and include free zones with low-cost business setup options.
  • The cost of company formation in UAE is competitive, with fast-track business setup processes available.

For those looking to move to Dubai from Hong Kong, working with the best business setup consultant in Dubai ensures a smooth and profitable company setup in Dubai UAE.

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Steps to Move Your Hong Kong Business to Dubai

Relocating your business from Hong Kong to Dubai can be a game-changing move, offering tax benefits, 100% foreign ownership, and global market access. Dubai’s business-friendly policies, strategic location, and investment opportunities make it an attractive destination for entrepreneurs. Below is a step-by-step guide to ensure a smooth business setup in Dubai UAE.

Step 1: Define Your Business Structure

Dubai offers two main options:

Choosing between a Dubai mainland or free zone setup depends on your business activities and expansion goals.

Step 2: Choose the Right Business License

The cost of a business license in Dubai varies based on your selected industry. Common types include:

  • Commercial License – For trading and general business activities.
  • Professional License – Ideal for service-based businesses like consultancy.
  • Industrial License – Required for manufacturing and production businesses.

Consulting with the best business setup consultant in Dubai ensures you select the right license for a profitable company setup in Dubai UAE.

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Step 3: Register Your Business & Obtain Approvals

To complete company formation in UAE, you must:

  1. Register your trade name and ensure it complies with Dubai’s regulations.
  2. Submit your business application to the relevant authority (Department of Economic Development for mainland or the chosen free zone authority).
  3. Obtain initial approvals for company registration, business activities, and required certifications.

Step 4: Secure Office Space in Dubai

  • Free Zone Companies – Many free zones offer flexible office solutions, including virtual offices and co-working spaces.
  • Mainland Companies – A physical office is required, with options ranging from shared offices to full-fledged corporate spaces.

Step 5: Open a Business Bank Account

Dubai’s banking system is stable and globally recognized. Required documents typically include:

  • Trade license copy
  • Passport and visa copies of shareholders
  • Business plan and proof of address

Step 6: Apply for Residency Visa & Employee Visas

Once your business setup in Dubai is complete, you can apply for:

  • Investor Visa – Grants residency for business owners.
  • Employee Visas – Required if you plan to hire staff in Dubai.

Step 7: Comply with Tax & Legal Requirements

  • Corporate Tax – 9% tax applies only if profits exceed AED 375,000 (0% for free zones).
  • VAT Registration – Required if your business turnover exceeds the VAT threshold.
  • Annual Renewals – Business licenses and visas must be renewed annually to stay compliant.

Final Thoughts

Relocating your Hong Kong business to Dubai offers tax advantages, low-cost business setup options, and strategic global access. Working with the best business setup consultant in Dubai ensures a smooth transition and a profitable company setup in Dubai UAE.

Cost of Setting Up a Business in Dubai from Hong Kong

Setting up a business in Dubai from Hong Kong offers a strategic location, tax benefits, and business-friendly policies. Whether you choose a mainland or free zone company, Dubai provides low-cost business setup options for entrepreneurs looking to expand. Below is a breakdown of the cost of a business license in Dubai, along with additional setup expenses.

Mainland vs Freezone Company Setup in UAE: Cost Comparison

Mainland License Costs in Dubai

License TypeStarting Cost (AED)Equivalent in HKDDescription
Professional LicenseAED 10,405HKD 22,058Suitable for service-based businesses like consultancy, marketing, and creative services.
Commercial LicenseAED 14,905HKD 31,619Covers trading activities, retail businesses, and general commercial operations.
Industrial LicenseAED 25,000HKD 53,000Designed for manufacturing and production businesses requiring specific facilities.

Calculate your business setup cost.

Mainland License Benefits:

  • Operate across the UAE with no restrictions.
  • Direct trading with local markets and government projects.
  • No limit on visa quotas, allowing business expansion.

Free Zone License Costs in Dubai

Free ZoneLicense Cost (AED)Equivalent in HKDDescription
ANCAED 4,888HKD 10,36810 business activities and unlimited shareholders.
SRTIPAED 5,500HKD 11,660Ideal for technology and innovation-focused businesses.
SHAMSAED 5,750HKD 12,190Suitable for media, creative industries, and digital content.
SPCAED 5,750HKD 12,190Perfect for startups across various industries.
RAKEZAED 6,000HKD 12,720Affordable and flexible packages for a wide range of businesses.
MeydanAED 12,500HKD 26,500Premium free zone for entrepreneurs and established businesses.
IFZAAED 12,900HKD 27,348Streamlined setup processes for multiple business activities.

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Free Zone License Benefits:

  • 100% foreign ownership, no local sponsor required.
  • Tax exemptions and no import/export duties.
  • Quick incorporation with global market access.

Additional Costs to Consider

Cost ComponentMainland Business Setup (AED)Equivalent in HKDFree Zone Business Setup (AED)Equivalent in HKD
License FeeAED 10,405 – AED 25,000HKD 22,058 – HKD 53,000AED 5,500 – AED 12,900HKD 11,660 – HKD 27,348
Office RentalAED 10,000 – AED 50,000HKD 21,200 – HKD 106,000AED 5,000 – AED 15,000HKD 10,600 – HKD 31,800
Visa Costs (per visa)AED 3,000 – AED 5,000HKD 6,360 – HKD 10,600AED 3,000 – AED 5,000HKD 6,360 – HKD 10,600
Legal and Documentation FeesAED 2,000 – AED 4,000HKD 4,240 – HKD 8,480AED 1,000 – AED 3,000HKD 2,120 – HKD 6,360
Sponsorship Fees (Mainland)AED 10,000 – AED 25,000HKD 21,200 – HKD 53,000N/AN/A

Key Considerations for Business Setup in Dubai

  • Mainland companies require a local sponsor, increasing costs.
  • Free zones provide affordable business setup with flexible office options.
  • The cost of company formation in UAE varies based on business type, activities, and location.

Read Post: Obtaining a Project Management License in Dubai and Its Costs

Final Thoughts

Relocating your Hong Kong business to Dubai provides access to a tax-efficient environment, global markets, and a strong economic ecosystem. Partnering with the best business setup consultant in Dubai ensures a seamless transition and profitable company setup in Dubai UAE.

📅 Prices may vary. Updated on 20th Feb 2025.

Conclusion

Why Move Your Business from Hong Kong to Dubai?

Dubai offers low-cost business setup options, 100% foreign ownership in free zones, and a tax-friendly environment. Compared to Hong Kong business setup in Dubai, Dubai provides strategic access to global markets, ease of company formation, and business-friendly regulations. Whether you are looking for the cheapest business license in Dubai or a mainland setup for full UAE market access, Dubai has flexible solutions to suit your needs.

How Infibiz Can Help?

Infibiz, the best business setup consultant in Dubai, specializes in relocating your business from Hong Kong to Dubai with a streamlined and cost-effective approach. Our expert team will:

  • Advise on the right business structure – whether mainland or free zone.
  • Handle legal formalities and documentation for a smooth company formation in UAE.
  • Assist with visa processing, office setup, and corporate banking.
  • Ensure a hassle-free transition with end-to-end business setup services.

Book Free Consultation with Infibiz’s Experts.

Start Your Business Journey Today!

If you’re considering moving your Hong Kong business to Dubai, Infibiz ensures a fast and profitable company setup in Dubai UAE. Contact us today to explore the cost of business license in Dubai and get started on your business expansion in the UAE.

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