Regulations, legal compliance and taxation

Once your company has its licence, whether in mainland or a free zone, it must make an Ultimate Beneficial Owners (UBO) declaration, to disclose who controls the company. This is part of the UAE’s commitment to prevent money-laundering, and improve financial transparency. 

To fulfil anti money-laundering regulations, financial companies and Designated Non-Financial Businesses and Professions (DNFBP) must then also register as a reporting entity, stakeholder or supervisory body with the UAE Financial Intelligence Unit’s goAML service.

Check goAML requirements >

While Dubai residents are not subject to income tax, companies operating from the emirate may be subject to a range of taxes.

For assistance and professional advice on your company’s tax obligations, you can contact a tax agent: see the Federal Tax Authority’s list of registered tax agents to find an agent.

You can also get more details on the UAE’s taxes, including all rules and regulations, from the Federal Tax Authority.

All legal entities doing business in Dubai must keep financial records and must obtain an annual audit report which contains all information about income and expenses. The auditor's report can be submitted in Arabic or English. 

Mainland and free zones companies must appoint an auditor to inspect its books annually. On the mainland, auditors must be licensed and registered with the UAE Ministry of Economy. Companies are required to keep records of each annual audit for five years.

Here is an indicative list of some of the top auditing firms operating in Dubai:

• Deloitte
  
• PricewaterhouseCoopers (PwC)
• Ernst & Young (EY)
• KPMG
• Grant Thornton
• BDO

In Dubai, intellectual property rights are protected under UAE federal law by the UAE Ministry of Economy, and enforced at the emirate level by Dubai-based authorities. In 2021 the UAE updated its laws to enhance patent, trademark, copyright, industrial design and trade secret protections and enforcement mechanisms. 

That same year the UAE also signed up to the international trademark system known as the Madrid System, which means that foreign businesses and trademark owners in the country can file a single international trademark application and pay one set of fees to gain protection in up to 130 countries. 

See the UAE Ministry of Economy’s website for detals of laws and regulations relating to copyright and intellectual property.

The judicial system in the UAE is a combination of federal and emirate-level courts, which uphold the rule of law, resolve disputes, and each emirate can decide to establish its own judiciary or merge with the federal court system.

There are three primary sources of law in Dubai:

• All laws and decrees passed at UAE level (Federal Laws): These federal laws cover issues central to the UAE’s national interest, such as foreign affairs, defence, federal finance, security, civil aviation, education and public health: see a full list of areas covered by federal law.
• Laws passed in Dubai that are specific to the emirate: These laws cover any and all local matters that are not the prerogative of the national government. 

• Sharia (Islamic law): Sharia serves as the primary foundation for legislation, with the judicial system applying either Sharia or civil law based on the specific circumstances of each case.

Companies based on the mainland have the following options for resolving legal disputes:

It is important to understand the legal foundation for companies in Dubai and the UAE, and be familiar with all relevant legislation.

Follow the link below to find the full texts of both federal UAE and local Dubai laws which impact companies operating in the emirate.