UAE vs Delaware: which company abroad fits a Filipino?
What a Delaware LLC and a UAE free zone company really cost each year, the tax and paperwork catches, banking, visas, and when another option fits better.
Quick answer
A Delaware LLC is the cheapest to set up and gets you Stripe, but it comes with strict US filings: missing Form 5472 carries a US$25,000 (≈ ₱1.57 million)[1] penalty.[2] A UAE free zone company costs roughly AED 6,000 to 13,000 (≈ ₱102,000 to ₱222,000) a year and can sponsor a residence visa, but opening a bank account without living there is hard.[3][4]
For Filipino freelancers and online sellers who stay in the Philippines and serve clients worldwide, the two countries taught in the Borderless Pinoy course come out ahead: a local provider handles every yearly filing, banking works from the Philippines, and you get the same Stripe and Shopify access.
Clients or buyers overseas? Read the free Chapter 0 of the Borderless Pinoy course to check whether registering a company abroad fits your business.
Get free Chapter 0A note on experience. The Borderless Pinoy course is built on hands-on experience running companies in two Asian countries. We haven't set up companies in the UAE or the US ourselves. The information on those two below comes from official government and provider sources, listed at the end.
Side by side
| Delaware LLC (US) | UAE free zone company | The two countries in the course | |
|---|---|---|---|
| Setup | About US$110 (≈ ₱6,900) in state fees, plus a provider and a registered agent[5] | About AED 5,750 to 12,900 (≈ ₱98,200 to ₱220,000) including the licence, depending on the free zone[3] | About ₱71,500 to ₱184,700 for a provider package with government fees included[6] |
| Yearly cost | US$300 (≈ ₱18,800) Delaware tax, rising to US$400 (≈ ₱25,100) from the 2026 tax year, plus a registered agent and US filings[7] | Licence renewal, roughly the same as setup, plus an audit if you claim the 0% free zone rate[3] | About ₱150,000 a year all-in in one, about ₱229,000 in the first year in the other[6] |
| Company tax | A foreign-owned single-member LLC usually pays no US income tax if it has no US business, but must file Form 5472 with a pro forma 1120 every year[2] | 0% up to AED 375,000 (≈ ₱6.4 million) of profit, 9% above it. Every free zone company must register for corporate tax.[4] | Low rates for small companies, with start-up relief in one and a two-tier rate in the other |
| Audit | No | Needed to claim the 0% qualifying free zone rate[4] | Every year in one; usually not needed for small companies in the other |
| Local people required | A Delaware registered agent | A flexi-desk or office in the free zone[3] | A local company secretary in one; a resident director in the other |
| Business bank account | Fintechs such as Wise and Airwallex generally accept US companies | Possible but slow, and often rejected for companies with no presence in the UAE[8] | Fintech business accounts like Airwallex, Aspire and Wise accept both |
| Stripe and Shopify Payments | Yes[9][10] | Yes[9][10] | Yes[9][10] |
| Residence visa through the company | E-2 treaty investor visa possible for Filipinos, but needs a substantial investment in a real US business[11] | Yes, an investor visa for an extra AED 6,000 to 8,500 (≈ ₱102,000 to ₱145,000) or so[3] | Entrepreneur visas exist in both, with demanding requirements |
Delaware LLC: cheap to start, strict on paperwork
Delaware is popular because formation is cheap and fast, and a US company opens the door to Stripe, Shopify Payments and US marketplaces. The catch is the paperwork. A single-member LLC owned by a non-US person is a "disregarded entity" for US tax. It still has to file Form 5472, attached to a pro forma Form 1120, every year, even with no US income. The penalty for not filing is US$25,000 (≈ ₱1.57 million).[2]
Delaware also charges a flat yearly LLC tax, due 1 June. It was US$300 (≈ ₱18,800), and a 2026 Delaware law raises it to US$400 (≈ ₱25,100) from the 2026 tax year.[7] Late payment adds a US$200 (≈ ₱12,500) penalty plus interest.[7]
A Delaware LLC can make sense if most of your customers are in the US and you're comfortable keeping up with US forms through an accountant.
UAE free zone: the residence visa is the real draw
A free zone company in the UAE can be set up remotely through the free zone authority, with a package that includes a licence and a flexi-desk.[3] The UAE now has corporate tax: 9% on profit above AED 375,000 (≈ ₱6.4 million). Free zone companies can qualify for 0% on qualifying income, but that needs real substance in the UAE, audited accounts and income that meets the rules. Freelance services and online sales to consumers often don't qualify.[4]
The strongest reason to choose the UAE is if you want to live there. A free zone company can sponsor your own residence visa, and the visa depends on the company: if the licence lapses, so does your residence.[3] If you plan to stay in the Philippines, the visa adds little, and the difficulty of opening a UAE bank account without living there becomes the main issue.[8]
Why the course focuses on two other countries
For a Filipino freelancer or online seller who keeps living in the Philippines, the two countries taught in the course cover what matters most. Registration is fully online through a licensed provider. Their companies are widely accepted by banks, payment platforms and overseas clients. A local provider handles the yearly filings, so there's no US tax form to track or residence to maintain. They're also close to the Philippines and share business hours with it.
They aren't the cheapest on paper. In the setups the course compares, the yearly cost is about ₱150,000 all-in.[6] It makes sense once your overseas sales are large enough to carry it. The free Chapter 0 helps you check whether you're there yet, and Chapter 2 names both countries and compares them in detail.
The verdict for Filipinos who stay in the Philippines
Delaware is the cheapest on paper, and the UAE is the strongest if you're moving to Dubai. For a freelancer or online seller who keeps living in the Philippines and serves clients worldwide, the two countries in the course come out ahead overall:
- Done-for-you compliance. A local provider files the yearly returns as part of the package. With a Delaware LLC, missing one US form can cost US$25,000 (≈ ₱1.57 million), and keeping track of it is on you.
- Banking that works from the Philippines. Fintech business accounts accept these companies readily. A UAE company without a UAE presence often struggles to open one.
- The same payment access. Stripe, Shopify Payments and global business accounts are available in all four, so the cheaper options don't give you more there.
- Built for Asia. Same business hours as the Philippines, close to your clients and suppliers in the region, and well known to overseas clients and platforms.
The UAE's biggest advantages, a residence visa and no personal income tax, only help if you actually move there. Filipino residents are taxed on worldwide income here either way.
Which one fits you?
- You'll stay in the Philippines and serve clients and buyers worldwide: one of the two countries in the course. This is the setup most Filipino freelancers and sellers need.
- Mostly US customers, a tight budget, and an accountant for US forms: a Delaware LLC.
- You're moving to Dubai or the UAE: a UAE free zone company with an investor visa.
Whichever you choose, you still have obligations in the Philippines as a resident, so plan your setup with a CPA. See what Philippine law says about owning a company abroad.
Frequently asked questions
Is a Delaware LLC good for Filipino freelancers?
It can be, if most of your customers are in the US. It's cheap to form and gives you access to Stripe and Shopify Payments, but a foreign-owned LLC must file Form 5472 with a pro forma 1120 every year, with a US$25,000 (≈ ₱1.57 million) penalty for missing it, plus Delaware's yearly LLC tax.
How much does a UAE free zone company cost?
Packages in the cheaper free zones start around AED 5,750 to 6,000 (≈ ₱98,200 to ₱102,000) without a visa and about AED 12,000 to 13,000 (≈ ₱205,000 to ₱222,000) with one investor visa, with yearly renewal at a similar level. Prices vary by free zone and package.
Do UAE companies pay corporate tax?
Yes, since 2023. Profit above AED 375,000 (≈ ₱6.4 million) is taxed at 9%. Free zone companies can qualify for 0% on qualifying income, but that needs real substance in the UAE, audited accounts and qualifying activities. All free zone companies must register for corporate tax.
Can owning a company abroad get me a visa?
Owning a company doesn't require a visa, and it doesn't give you one automatically. A UAE free zone company can sponsor its owner's residence visa. Other countries have entrepreneur or investor visas with stricter requirements. See our guide to business visas.
Which countries does the Borderless Pinoy course teach?
Two Asian countries where registration is fully online and companies are widely accepted by banks and payment platforms. Chapter 2 names and compares them; the free Chapter 0 helps you check whether a company abroad fits your business first.
Staying in the Philippines with clients worldwide?
See the setup the course teaches for registering a company abroad online and running it from the Philippines. The course is ₱699, separate from what the company itself costs to set up and keep.
Sources
- Exchange rates used for peso equivalents: US$1 = ₱62.70 and AED 1 = ₱17.07 (mid-market, 23 September 2026, the same rates as the course's Chapter 2 cost comparison). Amounts are rounded.
- IRS, Instructions for Form 5472 (foreign-owned US disregarded entities; US$25,000 penalty)
- SPC Free Zone, Dubai free zone licence costs; RAKEZ, Meydan and IFZA package prices as published, July 2026
- UAE Federal Tax Authority, corporate tax
- InCorp, Delaware business filing fee changes, 2026
- Borderless Pinoy course, Chapter 2 cost comparison (published provider and government prices, September 2026)
- Delaware Division of Corporations, LLC and LP annual tax instructions
- Business Dubai, opening a UAE bank account as a non-resident
- Stripe, global availability
- Shopify Help Center, Shopify Payments supported countries
- US Department of State, treaty countries (E-1/E-2)
This guide is general information, not legal, tax or immigration advice. Fees and rules change; confirm with the relevant government and a licensed provider before you decide. Sources checked 14 October 2026.