Congratulations on registering your company in Dubai. The next phase is to make your legal entity operational, compliant, and scalable. Many entrepreneurs assume the process ends with obtaining a trade license, but this can lead to delays, fines, or operational challenges.
This guide serves as your strategic blueprint. Drawing on over 26 years of experience, we have created a 10-step checklist to help you establish a fully operational business in the UAE.
1. Open a Corporate Bank Account
A corporate bank account is essential for your business. UAE banks have detailed requirements, and the process can be rigorous.
Expert Insight: Evaluate banks carefully. Consider transaction fees, online banking features, international transfer options, and minimum balance requirements, which typically range from AED 5,000 to AED 500,000 or more.
The Process Involves:
- Submit your trade license and company constitution.
- Providing shareholder passport copies and visa pages.
- Showing proof of company address (Ejari) and personal address.
- A detailed meeting to explain your business model and expected cash flow.
2. Secure UAE Residency Visas
Operating your business from abroad is not feasible. Securing residency visas for yourself, your family, and future employees is essential. The process involves several stages:
- Apply for an Establishment Card: This allows your company to sponsor visas.
- Entry Permit Application: Grants permission to enter the UAE for visa processing.
- Medical Test & Biometrics: A mandatory health screening for residency.
- Emirates ID Issuance: Your official identity card for all government transactions.
- Visa Stamping: The final step, placing the residency visa in your passport.
Pro Tip: Your company’s visa quota depends on your office size. Plan your workspace based on your hiring requirements.
3. Register for the Wage Protection System (WPS)
The UAE’s Wage Protection System (WPS) is a mandatory compliance requirement. This electronic system ensures employees receive accurate and timely payments.
Why It’s Critical: Failure to register or comply can result in fines ranging from AED 5,000 to AED 50,000, a frozen labour file, and restrictions on applying for new visas.
Your Payroll Setup Must Include:
- WPS registration with MOHRE and your bank.
- A structured payroll system for salaries, overtime, and bonuses.
- Accurate monthly WPS file submissions.
- Management of end-of-service benefits (gratuity).
4. Establish Your Accounting & Bookkeeping Foundation
UAE law requires the maintenance of financial records for at least 5 years. Strong accounting practices support both compliance and business profitability.
Essential Accounting Tasks:
- Daily bookkeeping and invoice management.
- Monthly financial reports and cash flow statements.
- Preparing for annual audits and corporate tax.
- Managing accounts receivable and payable.
5. Complete Your VAT Registration
VAT registration is mandatory if your taxable supplies exceed AED 375,000 annually, or AED 187,500 for voluntary registration.
The Strategic Advantage: Only VAT-registered businesses can reclaim input tax. Without registration, these costs become expenses, reducing competitiveness. The Federal Tax Authority (FTA) imposes significant penalties for non-compliance.
6. Ensure Ongoing Regulatory Compliance
Compliance requirements in the UAE change frequently. Missing annual renewals can result in license suspension.
Key Compliance Pillars:
- Annual License Renewal: Renew your trade license and any permits before expiration.
- Ultimate Beneficial Owner (UBO) Reporting: Disclose who ultimately owns and controls the company.
- Economic Substance Regulations (ESR): If you’re in relevant activities, you must report your economic substance in the UAE.
- Corporate Tax: Register, calculate, and file your corporate tax returns as required.
7. Secure Your Physical Office Space
Your license type determines your office requirements. Choosing the appropriate space enhances credibility and meets visa quotas.
Options to Consider:
- Flexi-desks for cost-effective starts.
- Shared offices for networking.
- Dedicated offices or warehouses for operational needs.
8. Protect Your Brand with Trademark Registration
Your brand is a key asset. Registering a trademark in the UAE protects your name, logo, and tagline from infringement, helping to avoid legal disputes and brand dilution.
9. Build a Compliant HR Framework
Your employees are a valuable asset. Establishing a strong HR foundation from the outset fosters a positive culture and reduces risk.
Core HR Functions:
- Drafting UAE-compliant employment contracts.
- Creating clear HR policies and employee handbooks.
- Managing onboarding, performance reviews, and exit formalities.
10. Leverage Strategic Outsourcing
In the early stages, hiring full-time PRO, HR, and accounting staff can be expensive. Outsourcing offers expert support as needed, enabling you to focus on core business activities while maintaining compliance.
Beyond the Checklist: Building a Resilient Business in the UAE
Market leaders consider factors beyond the initial checklist. Here are two advanced considerations often overlooked:
- Business Continuity Planning (BCP): A BCP outlines how your business will operate during disruptions. Documenting this early demonstrates mature leadership.
- Founder Well-being: Building a business can be stressful. Recognise the mental demands, set boundaries, build a support network, and prioritise your health. A founder’s well-being is essential for long-term success.
Conclusion: Your Partner for Long-Term Success in the UAE
Navigating the post-registration landscape requires more than a checklist. It demands local expertise, attention to detail, and a partner who understands the evolving regulatory environment.
This guide has outlined the necessary steps. Let an expert support you throughout the process. Shuraa Business Setup, with over 26 years of experience, offers long-term partnership and guidance on banking, visas, compliance, tax management, and strategic planning.
We manage the complexities so you can focus on building your business.
Ready to operationalise your Dubai company with confidence? Contact Shuraa for expert assistance.
Call: +971 4 408 1900 | WhatsApp: +971 50 777 5554 | Email: info@shuraa.com
Frequently Asked Questions (FAQs)
1. What is the first thing I should do after getting my Dubai trade license?
The first step is to open a corporate bank account. This account is essential for all financial operations, including receiving payments and processing salaries.
2. How long does it take to get a visa after the company is set up?
The process, from the issuance of the Establishment Card to visa stamping, typically takes 2 to 4 weeks if all documents are accurate and complete.
3. Is VAT registration mandatory for all new companies in the UAE?
No, VAT registration is mandatory only if your annual taxable supplies and imports exceed AED 375,000. Voluntary registration is available if you exceed AED 187,500 and may help you reclaim input tax.
4. What happens if I don’t register with the Wage Protection System (WPS)?
Non-compliance with WPS results in severe penalties, including fines up to AED 50,000, suspension of your company’s ability to apply for new visas, and a freeze on your MOHRE labour file.
5. Why do I need a physical office if I have a virtual license?
While some free zone licenses offer flexibility, mainland companies usually require a physical office and determine the number of visas your company can sponsor. It also enhances credibility with clients and partners.
Disclaimer: This guide is for informational purposes only and does not constitute professional advice. UAE regulations are changing, so consult our experts for guidance specific to your company.
