Cross-border comparison
UAE (RAKEZ Free Zone) vs United States: Where Should You Incorporate in 2026?
A side-by-side analysis of cost, tax, banking, privacy, and remote formation for UAE (RAKEZ Free Zone) (Free Zone LLC) vs United States (LLC (state-level)).
The numbers, side by side
| UAE (RAKEZ Free Zone) | United States | |
|---|---|---|
| Entity type | Free Zone LLC | LLC (state-level) |
| Region | Middle East | Americas |
| Filing fee (one-off) | $3,200 | $100 |
| Annual fee | $2,800 | $62 |
| Registered agent / corp sec | Not required | ~$50/yr |
| Headline corporate tax | 9% | 21% |
| Effective tax note | 0% on qualifying free zone income up to AED 3M (Small Business Relief). 9% on profits > AED 375k otherwise. | Pass-through default for LLCs; members pay personal tax. C-Corp election = 21% federal. |
| VAT / GST | 5% | 0% |
| Minimum paid-up capital | $0 | $0 |
| Processing time | 14 days | 1 days |
| Remote formation | ||
| Banking accessibility | 7/10 | 10/10 |
| Privacy score | 6/10 | 7/10 |
| UBO register public | ||
| Stripe available | ||
| PayPal Business | ||
| Wise Business |
UAE (RAKEZ Free Zone): when it wins
- Effective 0% for qualifying free zone activity
- No personal income tax
- UAE Golden Visa eligibility
Trade-offs
- High setup cost ($3k+)
- Substance requirements
- Bank opening requires visit
RAKEZ is one of the cheapest free zones. IFZA and SHAMS are similar. CT introduced 2023 at 9%.
United States: when it wins
- Strongest banking and payment rails
- Pass-through taxation
- Wyoming/Delaware anonymous LLCs
Trade-offs
- State-by-state compliance
- BOI federal report required
Costs shown are Wyoming baseline. CTA BOI mandatory federally.
Decision framework
- Want the cheapest setup? Compare year-1 totals: UAE (RAKEZ Free Zone) $6,000 vs United States $162.
- Want the lowest tax? Look at effective rate, not headline. 9% in UAE (RAKEZ Free Zone) vs 21% in United States; check both effective-tax notes above for exemptions.
- Need Stripe + Wise + Mercury? UAE (RAKEZ Free Zone) payments stack: Stripe ✅, Wise ❌. United States: Stripe ✅, Wise ✅.
- Privacy is critical? UAE (RAKEZ Free Zone) (6/10, UBO private) vs United States (7/10, UBO private).
- Forming remotely? UAE (RAKEZ Free Zone): fully remote. United States: fully remote.
Frequently asked questions
Which is cheaper to form, UAE (RAKEZ Free Zone) or United States?
United States is cheaper: ~$162 year-1 vs ~$6,000 for UAE (RAKEZ Free Zone).
Which has lower corporate tax, UAE (RAKEZ Free Zone) or United States?
UAE (RAKEZ Free Zone) has the lower headline rate at 9% vs 21% in United States. 0% on qualifying free zone income up to AED 3M (Small Business Relief). 9% on profits > AED 375k otherwise.
Can I open a Stripe account in both UAE (RAKEZ Free Zone) and United States?
Stripe in UAE (RAKEZ Free Zone): ✅ supported. Stripe in United States: ✅ supported.
Is remote formation possible?
UAE (RAKEZ Free Zone): Yes, fully remote. United States: Yes, fully remote.
What about privacy of beneficial owners?
UAE (RAKEZ Free Zone)'s UBO register is private and privacy scored 6/10. United States's UBO register is private and privacy scored 7/10.