Once the administrative groundwork has been laid, the real work of compliance begins. Forget preconceived ideas about «zero constraints», the tax and accounting reality in Dubai is much more structured than you might think.
Step 4: Structure your accounting from day one
Don't think of bookkeeping as just an administrative option. UAE law is clear: you must keep all your financial records for a minimum of five years.
In practical terms, this means archiving every invoice and producing accurate monthly financial reports. You need to keep a close eye on your cash flow and rigorously manage your accounts receivable and payable. Without this discipline, steering your strategy becomes impossible.
This accounting rigour prepares the ground for your future annual audits. It also considerably simplifies your tax returns.
Step 5: register for vat and corporation tax
L’VAT registration becomes imperative as soon as your annual taxable supplies exceed AED 375,000. However, you can opt for voluntary registration from AED 187,500, which is a clever way of reclaiming input tax.
Beware of sanctions imposed by the Federal Tax Authority (FTA), If you don't comply, the penalties come thick and fast. Ignorance of local rules won't save you from financial penalties.
Let's talk about corporation tax, the new tax order. Even if the rate remains at 0 % under AED 375,000 of profit, registration with the FTA is compulsory for all companies.
You must calculate and declare this tax every year without fail. Failure to do so will expose you to fines, even if you don't owe anything to the tax authorities.
Step 6: Managing ongoing regulatory compliance
Getting your licence is just the start of an administrative marathon. Compliance requires constant vigilance, particularly for the annual licence renewal, A non-negotiable deadline for continuing to operate legally.
To stay on track, your diary must include several critical obligations :
- Declaration of beneficial owners (UBO)
- Compliance with the Economic Substance Regulations (ESR) for the activities concerned
- Annual corporation tax return
These steps prove that your organisation is active, transparent and reliable. It is this guarantee of seriousness that reassures local authorities and secures your banking partners over the long term.
Business in Dubai: the post-creation guide to getting up and running
Many people think that obtaining a licence marks the end of the road, but the steps involved in setting up a company in Dubai and making your structure truly operational often trap entrepreneurs who are ill-prepared for the local administrative realities. This practical guide transforms your legal entity into a fully functional machine by marking out every action required, from the complex opening of a bank account to the strict tax compliance imposed by the authorities. You'll find out exactly how to secure your visas, protect your assets and avoid the heavy financial penalties that threaten new companies, allowing you to focus on your growth with peace of mind.
Administrative foundations: the first essential steps
Stage 1: opening a business bank account, the key to success
As soon as you have your degree, the’opening a bank account your top priority. Without it, your structure is clinically dead It's impossible to invoice a customer or pay a supplier. This is a major operational stumbling block that many entrepreneurs underestimate before finding themselves paralysed.
Prepare your dossier carefully: business licence, articles of association (MOA), passports and visas for shareholders, as well as proof of address (Ejari). Expect to have to defend your business model at a face-to-face meeting, because banks drastically filter files.
Don't sign up blindly. Look at the fees, the user-friendliness of the interface, the smoothness of international transfers and above all the minimum balance required. This figure varies wildly from one school to another, ranging from 5,000 AEDs to over 500,000 AEDs.
Step 2: Securing residence visas for you and your team
Residency visas in the UAE are not an option, it's your right to exist here. Owners, families, future employees: no-one can work or reside legally in the country without this precious administrative document.
The process is straightforward but strict: establishment card, entry permit, compulsory medical test, biometrics, then issue of the Emirates ID and affixing of the visa. It usually takes between 2 and 4 weeks before the visa is issued.’be in full compliance.
Beware of the sizing trap. Your quota of visas automatically depends on the surface area of your offices. Premises that are too small will immediately restrict your ability to recruit.
Step 3: Choosing and fitting out your office space
Your licence often sets the standard. A physical office is not just an address, it is a guarantee of seriousness and a strict obligation for companies in Mainland. Failure to comply with this requirement means risk immediate non-compliance of your structure.
Flexible offices, coworking or dedicated spaces: it all depends on your cash flow and your real need for visas. The Ejari, your registered rental agreement, remains the key element to validate your local presence with the authorities.
Tax and accounting compliance: the new face of Dubai
Once the administrative groundwork has been laid, the real work of compliance begins. Forget preconceived ideas about «zero constraints», the tax and accounting reality in Dubai is much more structured than you might think.
Step 4: Structure your accounting from day one
Don't think of bookkeeping as just an administrative option. UAE law is clear: you must keep all your financial records for a minimum of five years.
In practical terms, this means archiving every invoice and producing accurate monthly financial reports. You need to keep a close eye on your cash flow and rigorously manage your accounts receivable and payable. Without this discipline, steering your strategy becomes impossible.
This accounting rigour prepares the ground for your future annual audits. It also considerably simplifies your tax returns.
Step 5: register for vat and corporation tax
L’VAT registration becomes imperative as soon as your annual taxable supplies exceed AED 375,000. However, you can opt for voluntary registration from AED 187,500, which is a clever way of reclaiming input tax.
Beware of sanctions imposed by the Federal Tax Authority (FTA), If you don't comply, the penalties come thick and fast. Ignorance of local rules won't save you from financial penalties.
Let's talk about corporation tax, the new tax order. Even if the rate remains at 0 % under AED 375,000 of profit, registration with the FTA is compulsory for all companies.
You must calculate and declare this tax every year without fail. Failure to do so will expose you to fines, even if you don't owe anything to the tax authorities.
Step 6: Managing ongoing regulatory compliance
Getting your licence is just the start of an administrative marathon. Compliance requires constant vigilance, particularly for the annual licence renewal, A non-negotiable deadline for continuing to operate legally.
To stay on track, your diary must include several critical obligations :
These steps prove that your organisation is active, transparent and reliable. It is this guarantee of seriousness that reassures local authorities and secures your banking partners over the long term.
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Your company is now in order on paper, but it's nothing without the people who run it and without the protecting what makes it unique.
Step 7: Register for the Wage Protection System (WPS)
The Wage Protection System (WPS) is not a bureaucratic option. non-negotiable compliance standard for salary payments. This system ensures transparency and guarantees that each employee is paid on time via official channels.
The price of negligence is high: you risk fines of between AED 5,000 and AED 50,000 if you fail to comply. It also leads to freezing of the work file and total inability to apply for new visas.
Your payroll system must therefore be fully WPS compatible. It must also incorporate a clear salary structure and properly manage end-of-service payments.
Step 8: Build a solid, compliant HR framework
A serious HR framework goes far beyond simply recruiting talent. It's about draw up strictly compliant employment contracts to UAE law, an approach that legally protects both employer and employee.
To structure your human capital effectively, here are some key points to bear in mind essential pillars :
This operational rigour helps to avoid a large number of common mistakes which often undermine new structures.
Step 9: Protect your brand by registering it
Be careful not to confuse the company name with its trading name. Registration of the trademark is the only action that protects, Your logo and slogan will be protected against counterfeiting, giving you a monopoly on exploitation.
Think of it as a major preventive investment rather than an expense. It avoids costly disputes and prevents commercial identity theft that could ruin your reputation in the future.
Strategy and growth: thinking beyond creation
The formalities are behind you. Now it's time to get down to business and start structuring your growth to last.
Step 10: Strategic outsourcing as a lever for growth
Above all, don't think of outsourcing as an expense. vital strategic investment. Let's face it: when you're starting out, you can't be an expert at everything without sacrificing quality. Wanting to manage everything in-house is often the main obstacle to rapid expansion.
Take PRO services for visa management, accounting or HR. These solutions give you immediate access to expert support on demand, to avoid costly mistakes.
This frees up the founder to concentrate on his real core business: developing the company. It's the smart choice if you want to avoid the administrative and financial pitfalls. accelerate profitability.
Beyond the 10 stages: anticipating for the future
Let's look at two advanced concepts, starting with the business continuity planning (BCP). What happens in practical terms to your organisation in the event of a crisis? Having a ready-made plan is not pessimism, it's the mark of professionalism.
Secondly, the founder's well-being must never be ignored. Burnout is the number one risk for a young company here ; knowing how to delegate is a survival skill.
Le success in Dubai as much on administrative rigour as on a long-term strategic vision.
Comparative location zones: mainland vs. free zone
You now know the steps involved, but one fundamental decision determines many of these steps: the choosing your location.
The choice that defines your market and your tax situation
Opting for the Mainland or a Free Zone is the central pivot of your strategy. This bifurcation dictates your tax eligibility and your local freedom of action. It also has a direct impact on your shareholding. To understand the nuances, consult our Mainland vs Free Zone guide.
Bear in mind that this table is schematic. It does not replace an in-depth analysis because each project has its own specific characteristics.
Launching your business without tailor-made support means running the risk of exorbitant hidden costs or administrative blockages. A jurisdictional error often comes at a high price. An expert will avoid these costly pitfalls.
Obtaining your licence marks the the start of your entrepreneurial adventure in Dubai. Success now depends on a rigorous administrative management and faultless tax compliance. Don't leave anything to chance: structure your approach now so that you can ensure the long-term future and growth your business in the Emirates.
What are the most important steps in getting a company up and running in Dubai?
Once you have obtained your licence, the top priority is to open a company bank account, without which no invoicing is possible. At the same time, you need to secure residency visas for yourself and your team, a process that includes a medical test and obtaining an Emirates ID. Finally, renting a physical office (validated by an Ejari) is often required to finalise these procedures and give credibility to your business.
What budget is needed for commissioning and compliance?
In addition to the set-up costs, you need to bear in mind the minimum balance required by banks, which can vary from AED 5,000 to over AED 500,000 depending on the institution. It is also crucial to budget for compliance to avoid heavy penalties Failure to comply with the payroll system (WPS) can result in fines of between AED 5,000 and AED 50,000, and VAT registration becomes compulsory as soon as your turnover exceeds AED 375,000.
What are the differences between a Free Zone and the Mainland?
Le The choice of zone has a direct impact on your operational obligations. A company in Mainland requires a physical office and gives you direct access to the local UAE market. Conversely, a Free Zone company is often more flexible in terms of office space (coworking possible) and is better suited to international or holding activities, but restricts direct trade within the UAE.
Companies in a Freezone can, under very strict conditions, continue to benefit from a 0% rate by becoming a Qualifying Free Zone Person. Validating eligibility is complex and requires specialist expertise to avoid any nasty tax surprises. Tax support is therefore essential to remain compliant.
What are the key stages in ensuring tax and HR compliance?
Compliance doesn't end with the licence. It is essential that you structure your accounts to keep records for five years and register with the Federal Tax Authority for corporation tax, even if you qualify for the 0 % rate. On the HR front, membership of the Wage Protection System (WPS) is non-negotiable to guarantee the payment of wages and protect your business against the freezing of its administrative records.
Legal structure, licence, real budget, visa, bank account and pitfalls to avoid. Download the complete guide to setting up your company in Dubai with peace of mind.
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