United Arab Emirates

Country and legal system

The UAE is a federation of seven emirates. Federal legislation is combined with acts of individual emirates and special regimes of free zones. For international business, financial free zones DIFC and ADGM with independent courts and regulators are especially important.

Business taxation

Federal corporation tax is generally 0% on the first AED 375,000 of taxable income and 9% on the excess. For qualified persons in free zones, a separate regime applies, which requires an analysis of the type of income, substance and compliance with conditions. The standard VAT rate is 5%.

Taxation of individuals

The UAE does not have a general federal tax on wages and personal investment income of individuals. At the same time, the entrepreneurial activity of an individual may be subject to corporate tax: registration is required when the total revenue from a business in the UAE exceeds AED 1 million per calendar year.

Registration of companies and structures

The choice between mainland, regular free zone, DIFC, ADGM and other sites affects the available type of activity, office, visas, taxes, reporting and banking profile. We compare modes based on the actual operating model, not just the cost of registration.

Free zones, DIFC and ADGM

A free zone is not a single regime. Regular Industry Zones, DIFC and ADGM Financial Zones, Special Purpose Vehicles, Funds and SPVs have different legal systems, licenses and requirements. The 0% tax rate does not arise automatically: the status of Qualifying Free Zone Person, qualifying income, substance and operations with mainland are checked separately.

Bank and payment accounts

We support the opening of corporate and personal accounts, as well as accounts for funds and trusts in banks, EMI and PSP. We create a banking profile, select institutions based on currencies and geography of payments, prepare a KYC/AML dossier and support communication until a compliance decision is made.

• Corporate accounts
• Personal accounts and private banking
• Funds and Trusts Accounts
• EMI/PSP and multi-currency solutions

Correspondent accounts for banks

For a bank, EMI, PSP or other financial institution, a correspondent project begins with a license, supervision, ownership, AML/CFT/CPF system, customer base and projected payment traffic. Currencies, clearing, SWIFT/RMA, nested relationships and ongoing monitoring are designed separately.

• Institutional KYC
• SWIFT / RMA
• Clearing and settlement
• AML/CFT/CPF controls

Fintech and banking regulation

The regulator depends on the location and model of activity: the Central Bank of the UAE regulates the federal banking and payment circuit; DIFC and ADGM have DFSA and FSRA. Payment, credit, crypto and investment products require a separate map of licenses and service perimeter.

Private placement and issue of securities

The route depends on the location of the issuer and investors: mainland/SCA, DIFC/DFSA and ADGM/FSRA use different offering and professional-client regimes. Shares, sukuk, bonds, notes and fund interests are subject to an exempt-offer basis, offering memorandum, arranger or placement agent license, permissible marketing and selling restrictions in each country of distribution.

Corporate Law and Governance

Corporate documents must address member rights, control, financing, exit from the business and dispute resolution. For an international group, we separately check member agreements, directors' powers, beneficial ownership and cross-border restrictions.

Labor Law and Foreign Employees

For mainland, federal Labor Law and MoHRE procedures apply; DIFC and ADGM have their own employment regimes. The contract, work permit, visa, payroll, working hours, vacations, end-of-service benefits and termination of relations are designed according to the place of the employer and the actual work.

Personal data and cross-border transfer

The Federal Personal Data Protection Law regulates the processing of data within and outside the UAE in specified cases. DIFC and ADGM have their own data-protection regimes. Before launch, the controller, processor, legal basis, subject rights, security, breach response and international transfers are determined.

Treaties and international trade

A commercial contract binds the law, powers of the signatories, subject matter, price, delivery, taxes, evidence and the forum of dispute. For trade, Incoterms, importer of record, customs classification, origin, VAT, commercial agency and export restrictions are checked separately.

Intellectual Property

Brand, technology, content and trade secrets require different tools: trade mark, patent/utility certificate, industrial design, copyright, contract and confidentiality controls. Copyright holder, classes, Arabic spelling, licensing, employee/contractor IP and enforcement are checked before entering the market.

Real estate, land and construction

Rules for property ownership, registration of rights, development and leasing vary significantly across emirates and zones. The project includes land due diligence, permissible form of ownership, title, planning, construction contracts, escrow, off-plan registration and dispute resolution.

Courts, commercial disputes and arbitration

Federal and local onshore courts, DIFC Courts, ADGM Courts and arbitration provide different routes. Before signing the agreement, the governing law, jurisdiction or seat, institution, language and interim relief are selected; after a violation - evidence, limitation, asset preservation and enforcement.