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UAE Free Zone (Dubai Internet City) · via Virtuzone (UAE BSC)·🇺🇦Founder profile

Incorporating a Dubai Internet City Free Zone LLC for Ukrainian IT Contractors

VerifiedJul 2026
EligibilityConditional
Setup timeline21–45days
Year-1 total$12,900

Ukrainian IT contractors can establish a Free Zone LLC in Dubai Internet City to access the UAE's tech-focused business ecosystem. This structure allows for 100% foreign ownership and potential access to the 0% corporate tax rate for qualifying income.

Founders must navigate both UAE regulatory requirements and Ukrainian tax residency rules, specifically regarding the Diia City regime and controlled foreign company (CFC) reporting.

§ 01Cost of ownership

Model the full outlay, not just the setup fee

Renewal costs sneak up on non-resident founders. Compare year-1 filing against a 3-year total to see the real bill.
Currency · USD (live FX)
2-year cost of ownership
$18,400
≈ $766.67/month amortized·USD @ live FX
Time horizon
Line items
Amount
  • SetupVirtuzone (UAE BSC) setup
    $12,900
  • AnnualYear 2 renewal
    $5,500
Total$18,400
§ 02Tax residency · Ukrainian IT Contractors

What the tax authority sees

US federal / local status

UAE Federal Decree-Law 47/2022 imposes a 9% Corporate Tax on taxable income exceeding AED 375,000, with specific exemptions for qualifying free zone persons.

Home-country rule

Diia City tax regime; war-time residency displacement rules

Editorial verdict

Leverage the TECOM Group ecosystem in Dubai Internet City to qualify for the 0% CT rate on qualifying income, provided you meet substance requirements.

Key compliance risks
  • 01Economic substance requirements for tax residency
  • 02Diia City tax residency conflict for Ukrainian tax residents
  • 03Mandatory annual audit for Free Zone LLCs
  • 04Bank compliance scrutiny for non-resident directors
§ 03Setup timeline

From filing to funded bank account

Setup timeline
21–45days total, 3 phases
Milestone check
Filing · Tax ID · Banking
d0
d11
d23
d34
d45
01FilingVirtuzone (UAE BSC) submits formation docs
d0–d16
02Tax ID / EINLocal tax authority registration
d14–d34
03BankingBusiness account approved & funded
d27–d45
§ 04Head-to-head

UAE Free Zone (Dubai Internet City) vs US LLC (Wyoming)

Full comparison →
UAE Free Zone (Dubai Internet City)
Free Zone LLC
US LLC (Wyoming)
LLC
Entity
Free Zone LLC
LLC
Setup cost
$1,686
$102.00
Annual
$1,686
$60.00
Local director
Remote OK
Remote OK
Physical presence
Remote OK
Remote OK
Tax regime
9% CT above AED 375k; ICT and tech-focused; TECOM Group
0% state tax; federal only on US-source income
§ 05Questions founders actually ask

FAQ

Qualifying Free Zone Persons (QFZP) may benefit from a 0% corporate tax rate on qualifying income. This requires maintaining adequate economic substance in the UAE and complying with transfer pricing documentation rules.
More profiles for UAE Free Zone (Dubai Internet City)
Ukrainian IT Contractors — other jurisdictions
Next step

Start filing with Virtuzone (UAE BSC)

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