This is an overview of core obligations, not an exhaustive statement of every law. Federal law, emirate rules, free zone regulations, sector approvals, and your facts interact. Read the current official text and obtain qualified legal or tax advice for your proposed business.
1. Company formation and ownership
Federal Decree-Law No. 32 of 2021 on Commercial Companies, as amended, is a central framework for applicable commercial companies. Legal form affects liability, management, capital, and governance. Many mainland activities permit full foreign ownership; strategic-impact and regulated activities need an activity-specific check. Financial free zones and other free zones have distinct frameworks.
UAE Commercial Companies Law ↗ · Dubai ownership restrictions ↗
2. Licensing, premises, and sector approvals
Choose approved activity codes and obtain the relevant economic licence. Healthcare, education, financial services, virtual assets, food, transport, real estate, and other regulated activities may require specialist approvals. Premises, municipality, customs, import/export, and consumer protection requirements depend on the operation. A commercial licence does not replace regulator authorisation.
UAE government: mainland business requirements ↗
3. Free zone and mainland permissions
Check your zone’s incorporation rules and the permissions needed outside the zone. Dubai’s mainland operating permit framework offers a route for eligible free zone businesses; eligibility is activity- and authority-specific.
DET: mainland operating permit framework ↗
4. Corporate tax
Under the standard UAE corporate tax regime, taxable income up to AED 375,000 is taxed at 0%, with 9% on the portion above that amount. This refers to taxable income, not revenue. Exempt persons, Qualifying Free Zone Persons, natural persons, and large multinational groups can have different rules. Registration, recordkeeping, and return obligations can apply even where no tax is due.
Free zone 0% treatment is conditional. Confirm qualifying income, substance, audit and other current requirements rather than assuming a free zone licence eliminates tax. Large multinational groups should also assess the UAE domestic minimum top-up tax rules.
UAE government: corporate tax ↗ · FTA: free zone tax guidance ↗
5. VAT
For a UAE-resident business, mandatory VAT registration generally applies when taxable supplies and imports exceed AED 375,000 over the previous 12 months or are expected to exceed that amount in the next 30 days. Non-resident registration rules differ. Review supply types, place of supply, exemptions, and designated-zone rules; free zone status alone is not a blanket VAT exemption.
FTA: VAT registration and eligibility ↗
6. Beneficial ownership and company records
Cabinet Decision No. 109 of 2023 addresses beneficial owner procedures for entities within its scope. Identify the natural persons who ultimately own or control the business, maintain the required registers, and notify changes as required. Scope and exemptions need checking, particularly for financial free zones.
CBUAE rulebook: beneficial owner procedures ↗
7. Anti-money laundering and banking
Banks and regulated businesses conduct identity, beneficial owner, and source-of-funds checks. Designated non-financial businesses and professions must assess their own AML obligations, including applicable registration, controls, and reporting. Use the current AML framework, including Federal Decree-Law No. 10 of 2025 and its implementing rules; older summaries may be outdated. Incorporation does not guarantee a bank account.
UAE legislation: AML and related legislation ↗
8. Employment and immigration
Federal Decree-Law No. 33 of 2021 and its amendments govern the relevant private-sector employment relationships. Assess employment contracts, work permits, wages, leave, end-of-service benefits, and applicable Emiratisation obligations. DIFC and ADGM have distinct employment regimes. Work authorisation and residence procedures are separate from business incorporation.
UAE government: employment laws ↗
9. Personal data protection
Federal Decree-Law No. 45 of 2021 addresses personal data protection within its scope. Plan lawful collection and use, appropriate security, privacy information, and handling of individual rights and data transfers. Separate rules may apply in DIFC, ADGM, and specific sectors.
UAE Personal Data Protection Law ↗
10. Ongoing obligations
Maintain a calendar for licence and lease renewals, required tax registrations and filings, accounting records, beneficial owner updates, visa renewals, and any audit or sector reporting. Changing activities, shareholders, address, or management may require authority filings.
Online sellers should also check applicable e-commerce and consumer protection rules, invoicing, advertising, and returns obligations. Importers should assess customs and product conformity; intellectual property protection may need separate registration.
For founders based in India
A UAE registration does not settle Indian residency, overseas investment, reporting, or tax questions. Get India-side advice on the rules applicable to your residency, funding route, and ownership before transferring funds.
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