Getting your business license in Dubai feels like a major achievement. However, the real work actually starts after you receive that license. Many new business owners celebrate and then forget about ongoing compliance requirements. This mistake costs businesses thousands of dirhams in penalties every year.
In fact, the Federal Tax Authority (FTA) issued strict warnings about compliance deadlines. Therefore, understanding what you must do after setting up a business in Dubai protects your company and saves money.
Key Compliance Tasks for Every Dubai Business Owner
Here are the important compliance items every Dubai business must complete and maintain:
1. Corporate Tax Registration
Register for corporate tax within 3 months of receiving your trade license (or as per FTA deadlines). According to the Federal Tax Authority’s official guidelines, this deadline is strict and non-negotiable. Create an account on the EmaraTax platform, submit your application with all required documents, and receive your Tax Registration Number.
2. Maintain Financial Records
Keep detailed records of every business transaction for at least seven years. This includes sales invoices, purchase receipts, expense records, employee payroll documentation, bank statements, and all contracts. Use digital accounting software and back up everything to cloud storage regularly.
3. VAT Registration and Filing
If your annual revenue exceeds AED 375,000, VAT registration becomes mandatory. Voluntary registration is available from AED 187,500. Once registered, file VAT returns regularly and pay VAT on time to avoid penalties.
4. Renew Your Trade License Annually
Your license expires exactly one year after issuance. Start the renewal process at least 30 days before expiration. You will need updated tenancy contracts, valid Emirates IDs, and previous year financial statements. Operating with an expired license is illegal and carries serious daily penalties.
5. Process Salaries Through WPS
All employee salaries must be processed through the Wage Protection System (WPS) every month. Late payments trigger penalties and restrict your ability to process new employee visas. This requirement applies to every employee without exception.
6. Maintain Valid Employee Visas
Keep employment visas current for all staff members. Additionally, ensure labor contracts follow UAE standards and comply with working hour limits and leave entitlements. Expired visas create legal problems for both your business and employees.
7. Update Business Activity Changes
If you add new services or products, update your trade license activities immediately. Operating outside your licensed activities results in fines and potential license suspension. Submit activity amendment requests through the Department of Economy and Tourism (DET).
8. Renew Regulatory Approvals
Certain business activities require annual approvals from specific authorities. For example, food businesses need Dubai Municipality renewals. Healthcare services require Dubai Health Authority clearances. Mark these renewal dates on your calendar and start the process early.
9. File Corporate Tax Returns
After registration, file annual corporate tax returns by the specified deadlines. These returns must accurately reflect your business income, expenses, and taxable profit. Late filing or incorrect information leads to penalties and potential audits.
10. Update Registered Office Address
Notify authorities immediately if you change your business location. Your trade license, tenancy contract (Ejari), and all registrations must reflect your current address. Outdated addresses cause problems with government communications and compliance verification.
11. Keep Immigration Status Current
Business owners and managers must maintain valid UAE residence visas. Your personal visa status affects your ability to manage business operations legally. Renew residence visas before expiration and update Emirates IDs promptly.
12. Submit Audited Financial Statements
Certain companies (e.g., those with revenue exceeding AED 50 million, Qualifying Free Zone Persons, or as required by DET/free zone rules) must prepare and submit audited financial statements annually. Ensure your financial statements are prepared by licensed auditors where mandatory.
13. Maintain Business Insurance
Certain business activities require specific insurance coverage. Professional indemnity insurance may be mandatory for consultants. Similarly, liability insurance is required for businesses serving the public. Keep all insurance policies current and adequate for your operations.
14. Update Shareholder Information
Notify authorities of any changes to company ownership, shareholding structures, or authorized signatories within 30 days. This includes adding or removing partners, transferring shares, or changing management positions.
15. Display Required Business Information
Keep your trade license prominently displayed at your business premises. Additionally, show your Tax Registration Number on all invoices and official documents. Furthermore, ensure your business signage matches your licensed trade name exactly.
16. Respond to Government Communications
Monitor and respond promptly to all government notifications, requests, and inspections. Ignoring official communications leads to penalties and compliance issues. Designate someone responsible for checking and handling government correspondence regularly.
Get Professional Compliance Support
Managing compliance while running a business can feel overwhelming. However, you can rely on experts in business setup in Dubai to handle all post-setup requirements, track deadlines, and submit documents for you.
They also monitor regulatory changes to prevent penalties and ensure your company stays compliant. This support gives you peace of mind and allows you to focus on growing your business instead of worrying about missed obligations.
