Planning an exit from your UAE business requires understanding the legal and tax framework for selling or transferring a UAE company. Here is the complete 2025 guide.
Methods of Exiting a UAE Business
Share sale: sell your shares in the UAE company to a buyer. The company itself continues to operate — only the ownership changes. Most common exit method. Tax on share sale: UAE has no capital gains tax on the sale of shares (at the individual level). Corporate-level: if the seller is a UAE company selling shares in a subsidiary: the participation exemption may apply under UAE CT (no CT on gain). Asset sale: sell the assets of the business (clients, contracts, equipment, IP) without transferring the company entity. The buyer acquires the assets, not the company. Tax consideration: the asset sale proceeds may be taxed as income in the UAE company (subject to UAE CT if above AED 375,000 threshold). Merger or acquisition: the UAE company merges with or is absorbed into an acquiring company. More complex, requires regulatory approvals in most UAE free zones.
Preparing Your UAE Company for Sale
To maximise value and smooth the sale process: clean up any outstanding government fees, visa issues, or bank disputes. Ensure company records are complete (trade licence, MOA, audited financial statements). Formalise key customer contracts in writing. Resolve any employee disputes. Ensure all VAT and CT filings are up to date. A buyer will conduct due diligence on all of these before closing.
UAE Free Zone Share Transfer Process
Transferring shares in a UAE free zone company: Step 1: get the buyer to submit an application to the free zone authority. Step 2: free zone approves the buyer as a new shareholder. Step 3: share transfer agreement is executed. Step 4: free zone updates its records and issues an updated MOA. Cost: free zone share transfer fees (AED 2,000-10,000 depending on the free zone). Timeline: 2-6 weeks. Professional advice: engage a UAE corporate lawyer to draft the share purchase agreement and manage due diligence.