Compliance

What is Business Compliance?

Tax compliance – filing corporate tax returns; the new UAE corporate tax regime imposes a 9 % tax on taxable profits above AED 375,000, effective from 1 June 2023. Businesses operating in Free Zones may still qualify for tax exemptions if they Business compliance means ensuring that every aspect of your company’s operations, records and transactions meets the legal and regulatory requirements of the jurisdiction in which you operate. In the UAE this covers corporate governance, anti-money-laundering (AML) and counter-terrorism financing rules, labour regulations, tax obligations and industry-specific laws. A strong compliance framework includes:
KYC and due diligence – verifying customers’ identities to avoid dealing with sanctioned or high-risk parties.
AML reporting – registering on the goAML portal and filing Suspicious Activity Reports or Transaction Reports when necessary. The UAE’s FIU uses the goAML portal to gather information and data about suspicious transactions
UBO identification – recognizing the natural person who owns or controls at least 25 % of the company’s shares or voting rights.
Labour law adherence – ensuring workers are registered and visas are valid, and that you do not hire individuals without the appropriate permits; penalties for employers hiring without valid work permits can include labour file suspension, fines between AED 200,000 and AED 1 million and even imprisonment.
meet specific criteria.

Why Are Compliance Services Needed?

Operating in the UAE’s dynamic business landscape means navigating a complex network of rules and regulators. A robust compliance programme is not optional—it’s essential. Here’s why:

Avoid severe penalties and reputational damage

ailure to register on the goAML portal can attract administrative penalties between AED 50,000 and AED 5 million. Illegal hiring practices may cost your business up to AED 1 million.

Meet AML obligations

All financial institutions, virtual-asset service providers and designated non-financial businesses and professions (DNFBPs) must register on the UAE FIU’s goAML portal to report suspicious transactions.

Ensure transparency of ownership.

Identifying and registering Ultimate Beneficial Owners reduces the risk of money-laundering and hides complex ownership structures.

Comply with new tax laws.

Since 1st of June 2023, businesses with taxable profits above AED 375,000 must pay 9 % corporate tax; non-compliance could lead to audits and penalties.

Maintain investor confidence

Potential partners, banks and investors expect clear governance and risk controls. Compliance demonstrates professionalism and trustworthiness.

Types of Business Compliance Issues

In the UAE, common compliance pitfalls include:

1. Licensing violations – operating without a valid trade licence or failing to renew it can lead to fines and business suspension.

2. Employment breaches – not registering employees with the Ministry of Human Resources & Emiratisation (MOHRE) or hiring workers without valid visas; penalties range from hefty fines to imprisonment.

3. AML & goAML failures – not registering on the goAML platform, missing deadlines for SAR/STR filings or lacking a designated compliance officer; failure to register can attract penalties up to AED 5 million.

4. UBO non-registration – neglecting to identify and register shareholders with 25 % or more control; lacking accurate UBO records facilitates money-laundering and terrorist financing.

5. Tax and financial reporting errors – failing to register for corporate tax, not filing returns or providing inaccurate accounts; the new regime demands accurate calculation of taxable profits.

6. Tax and financial reporting errors – failing to register for corporate tax, not filing returns or providing inaccurate accounts; the new regime demands accurate calculation of taxable profits.

7. Failing to maintain statutory registers – not keeping updated registers of nominee directors, managers and shareholders as required by corporate regulations.

How DSA Helps

Dubai Setup Advisors (DSA) simplifies every step of your UAE business formation journey from initial planning to long-term operational support. We’re not just consultants; we’re your on-ground execution partners with deep expertise in UAE legal, regulatory, and commercial frameworks.

Business Planning & Jurisdiction Comparison

Trade Name Reservation & Licensing Approvals

Legal Documentation, Drafting & Translation

Workspace & Tenancy Solutions

Bank Account Opening & Compliance Setup

Visa & Immigration Processing

PRO & Legal Documentation Services

Post-Incorporation Support & Growth Enablement

Why Choose Us?

At Dubai Setup Advisors (DSA), we go beyond basic company registration. We provide strategic guidance, legal clarity, and operational support tailored for global entrepreneurs and investors entering the UAE market. Here’s why clients from over 30 countries trust us to build their presence in the Emirates.

Extensive Experience

End-to-End Service

Transparent Pricing

Global Perspective

Personalized Approach

Comprehensive Network

FAQs

The goAML portal is an online platform used by the UAE Financial Intelligence Unit to collect and analyse data about suspicious transactions. Financial institutions, virtual-asset service providers and DNFBPs—including real estate brokers, dealers in precious metals, corporate service providers, lawyers and accountants—must register and submit SAR/STR reports.

You need an authorisation letter appointing a compliance officer, copies of the compliance officer’s passport, Emirates ID and visa, and a copy of the company’s trade licence. You must also install a two-factor authentication app (Google Authenticator) on the registered phone.

Failure to register constitutes a violation of UAE AML regulations and can result in administrative fines ranging from AED 50,000 to AED 5 million.

A UBO is a natural person who owns 25 % or more of a company’s shares or voting rights or exercises ultimate control over its decisions.

Yes. All UAE entities—including mainland and free zone companies—must identify and register their UBOs unless the company is wholly government-owned or falls under specific regulatory exemptions.

Hiring workers without valid work permits can lead to labour file suspension, fines from AED 200,000 up to AED 1 million and, in severe cases, imprisonment.

From 1 June 2023, UAE businesses must pay 9 % corporate tax on profits exceeding AED 375,000. Profits up to AED 375,000 are taxed at 0 %. Compliance involves registration with the Federal Tax Authority, proper accounting and timely filings.

KYC (Know Your Customer) refers to verifying the identity of clients to ensure they are who they claim to be, while AML (Anti-Money-Laundering) encompasses a broader set of policies and procedures—including goAML reporting, transaction monitoring and record-keeping—designed to detect and prevent illicit financial activities.

Once all ownership structures are mapped and required documents prepared, DSA can typically complete the UBO declaration within a few working days. Complex ownership structures may take longer, but we streamline the process for you.

Absolutely. Through our network of specialists, we provide VAT registration, tax advisory, accounting services, economic substance compliance and guidance on sector-specific regulations like ESR, data-protection and industry licensing.

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