UAE Business & Free Zone Glossary

Specific business activity classification on a trade licence.

Each zone has its own list of approved activities. Most licences include 1–3 activities; additional activities cost AED 1,500–3,000 each.

Abu Dhabi Global Market — Abu Dhabi's common-law financial free zone.

Located on Al Maryah Island. Regulated by FSRA. Hosts Hub71 tech accelerator. Favorable for fund managers, family offices, holding structures.

United Arab Emirates Dirham — UAE's currency, pegged at 3.6725 AED to USD.

Anti-Money Laundering — regulations preventing illicit financial flows.

UAE has comprehensive AML rules. Banks must report suspicious transactions to the UAE Financial Intelligence Unit.

Articles of Association — internal rules of a company.

Sometimes combined with MOA. Specifies director powers, dividend distribution, meetings, and dissolution procedures.

Authentication of foreign documents for use in UAE.

UAE joined Hague Apostille Convention in 2025 for streamlined cross-border document authentication. Pre-2025 documents may still require traditional chain attestation.

Document filed with regulator to form a corporation.

Used in DIFC and ADGM. Free zones in other emirates use MOA/AOA instead.

Annual financial statements verified by an FTA-approved auditor.

Required for QFZP, larger companies, and most regulated entities. Costs AED 5,000–25,000/year depending on company size.

Government registry of UBOs for UAE companies.

Maintained by zone authorities. Updates required within 15 days of ownership changes. Penalties for non-compliance.

Base Erosion and Profit Shifting — OECD framework UAE has adopted.

Drives substance requirements, transfer pricing, country-by-country reporting. Why UAE introduced corporate tax in 2023.

Extension of an existing company in a different free zone or country.

Doesn't create a new legal entity — operates under the parent. Useful for expanding without creating a new subsidiary.

Central Bank of the United Arab Emirates.

Supervises onshore banks (excluding DIFC and ADGM, which have their own regulators). Issues stored-value facility licences for fintech/payment companies.

UAE federal corporate income tax, introduced June 2023.

The standard rate is 9% on taxable income above AED 375,000. Free zone entities meeting QFZP requirements pay 0% on qualifying income. Filing is annual via the Federal Tax Authority (FTA) portal.

DataFlow — primary source verification of foreign qualifications.

Required for healthcare professionals and certain regulated roles. Verifies degrees and certificates with the issuing institution. Takes 4–8 weeks.

Dubai Chamber of Commerce and Industry.

Issues Certificates of Origin for exports, attestation of trade documents, and chamber membership for mainland companies.

Department of Economic Development — Dubai's mainland licensing authority.

Each emirate has its own DED. Issues mainland trade licences (free zones don't go through DED). Required for restaurants, retail, real estate broking.

Banks officially partnered with specific free zones for streamlined onboarding.

DMCC, IFZA, SHAMS all have designated banking partnerships that accelerate account opening for their members.

A free zone treated as outside UAE for VAT purposes on goods.

JAFZA, DAFZA, Hamriyah, Ajman Free Zone, RAK FTZ, and parts of DMCC are Designated Zones. Goods can be imported, stored, and re-exported VAT-free; VAT only applies when goods enter UAE mainland.

Dubai Financial Services Authority — regulates DIFC.

Independent regulator overseeing financial services, capital markets, insurance, and crypto in DIFC. Common-law framework based on English law.

Dubai Health Authority — regulates healthcare in Dubai.

Issues clinical licences for doctors, nurses, and medical facilities. DataFlow (primary source verification) required for foreign qualifications. Separate from free zone licences.

Dubai International Financial Centre — premier financial free zone.

Common-law jurisdiction with own court system. Regulated by DFSA. 4,000+ entities. Home to top fund managers, banks, law firms.

DIFC Data Protection Law — modeled on GDPR.

Applies to all DIFC-registered entities. Stricter than UAE federal law in some respects.

Dubai Multi Commodities Centre — UAE's largest free zone by company count.

20,000+ companies. Home to commodity trading, tech, professional services. 'World's #1 free zone' (FT Global Free Zones Awards 2017–2024).

Department of Health Abu Dhabi — DHA equivalent for Abu Dhabi.

Regulates healthcare professionals and facilities in Abu Dhabi emirate.

Dubai Silicon Oasis — purpose-built tech and R&D free zone.

Strong SaaS, hardware, and electronics cluster. Includes Dubai Technology Entrepreneur Centre (DTEC), the regional largest tech accelerator.

Double Tax Avoidance Agreement — bilateral treaty preventing double taxation.

UAE has 130+ DTAAs. They typically reduce withholding tax on dividends, interest, and royalties. To claim treaty benefits, you need a UAE Tax Residency Certificate (TRC).

Dubai's online tenancy contract registration system.

Mandatory for residential and commercial leases in Dubai. Required for residence visa applications, business address proof, and family sponsorship.

Electronic Money Institution — non-bank fintech offering payment services.

Examples: Wise Business, Revolut Business. Not full banks but can hold and send funds. Useful when bank account opening fails.

Mandatory ID card for all UAE residents.

Required for banking, tenancy, mobile contracts, government services. Linked to residence visa validity. Costs AED 270–450 depending on validity period.

Residence visa based on a salary contract from a UAE employer.

Includes self-employment under your own company. 2-year validity. Triggers labour ministry compliance and end-of-service gratuity calculation.

Stamp on passport showing entry into UAE.

Required after each entry to keep residence visa active. Continuous absence over 180 days can void some residence visas.

Economic Substance Regulations — UAE's substance requirements for relevant activities.

Affects holding companies, IP holdings, banking, financing, leasing, headquarters, shipping, distribution, service centres. Annual filing required.

Annual Economic Substance Regulations notification and report.

Required for entities engaged in 'relevant activities' (holding, banking, financing, IP, insurance, etc.). Late filing fines: AED 20,000+.

MOHRE-issued card confirming company registration with the labour ministry.

Required for issuing employment visas. Mainland-only (free zones use their own equivalents).

Residence visa for spouse and children sponsored by a UAE resident.

Sponsor needs minimum salary (AED 4,000+ on contract or AED 100K+ in business account). Marriage and birth certificates must be attested in country of origin and by UAE MOFAIC.

Federal Authority for Nuclear Regulation.

Regulates nuclear sector. Also relevant for some maritime/aviation safety overlaps.

Financial Action Task Force — global AML/CFT standard-setter.

Maintains 'grey list' (enhanced monitoring) and 'black list' (call to action) of jurisdictions. UAE was on the grey list 2022–2024; removed in early 2024. Affects KYC for individuals from listed countries.

A geographically defined area with special economic incentives.

The UAE has dozens of free zones. Benefits: 100% foreign ownership, 0% corporate tax (with QFZP), simplified import/export, streamlined visa quotas.

Special licence allowing solo professional work without forming a company.

Available at IFZA, SHAMS, RAKEZ, twofour54, others. Typically AED 7,500–15,000/yr. Includes a residence visa.

Financial Services Regulatory Authority — regulates ADGM.

Independent regulator for ADGM. Oversees financial services, fund management, fintech, virtual assets. Common-law framework.

Federal Tax Authority — UAE federal tax body.

Administers VAT, Corporate Tax, and Excise Tax. All registrations and filings happen via tax.gov.ae portal.

Gulf Cooperation Council — regional bloc of 6 Gulf states.

Members: UAE, Saudi Arabia, Kuwait, Bahrain, Qatar, Oman. GCC nationals enjoy near-equal treatment as UAE nationals for business purposes.

EU's General Data Protection Regulation.

UAE has its own data protection law (Federal DPL). UAE companies serving EU customers may also need GDPR compliance.

General Directorate of Residency and Foreigners Affairs.

Handles residency visas, Emirates ID, family sponsorship, entry/exit. Each emirate has its own GDRFA office.

10-year UAE residence visa for high-value individuals.

Categories: Investors (AED 2M+ in property or business), entrepreneurs, exceptional talents, scientists, students, professionals (AED 30K+ monthly salary). No sponsor needed; allows family.

30-day window after visa cancellation to leave UAE or get a new visa.

After 30 days, AED 50/day fines accrue (capped ~AED 1,000). Pay before exit to avoid issues. Don't try to leave without paying.

5-year residence visa for skilled professionals and freelancers.

Self-sponsored. Targets remote workers, freelancers, and skilled employees. Bachelor's degree + AED 15K monthly salary minimum.

Abu Dhabi's tech startup ecosystem within ADGM.

Provides incentives for early-stage startups: subsidized housing, healthcare, office space. Application-based; competitive.

International Bank Account Number — standardised account identifier.

UAE IBANs start with AE, followed by 21 digits. Required for all international transfers.

Federal Authority for Identity, Citizenship, Customs and Port Security.

Manages federal-level immigration, Emirates ID issuance (alongside emirate-level GDRFA), and citizenship matters.

International Free Zone Authority — Dubai's most cost-effective zone.

Year 1 from AED 12,900. Up to 3 visas standard. Fast 5–7 day setup. Most popular budget option.

Residence visa for shareholders with 25%+ stake in a UAE company.

2 or 3 year validity. AED 5,000–8,000. No salary contract required. Allows family sponsorship. Most common for free zone founders.

Jebel Ali Free Zone Authority — UAE's oldest and largest trade-focused free zone.

Established 1985. Adjacent to Jebel Ali Port and Al Maktoum Airport. 8,500+ companies. Designated Zone for VAT.

3–6 month visa for job hunting in UAE.

Self-sponsored. Useful between jobs or while transitioning to entrepreneurship. AED 1,200.

Know Your Customer — bank's identity verification process.

Includes passport, Emirates ID, residence visa, source-of-funds documentation, business plan, and references. Stricter for FATF-listed nationalities.

Document linking an employee to their employer for MOHRE purposes.

Required for mainland employees. Free zones have their own equivalent issued by the zone authority.

Formal closure of a UAE company.

Steps: cancel all visas → MOHRE deregistration → audit + clearance certificate → bank closure → trade licence cancellation. 3–6 months typical.

An Emirati partner historically required for mainland LLCs (no longer mandatory).

Since 2021, foreign nationals can own 100% of mainland businesses for most activities. Local sponsorship still applies for some restricted sectors and 'professional services' licences.

Companies licensed by an emirate's DED, outside any free zone.

Can trade directly with UAE consumers. Subject to UAE corporate tax (9% above AED 375K). Since 2021, 100% foreign ownership allowed for most activities.

Memorandum of Association — founding document of a UAE company.

Specifies shareholders, share allocation, activities, capital, and governance. Drafted at incorporation, amended for shareholder changes.

Notarising the MOA at a UAE Notary Public.

Required for many corporate transactions. Some zones (DMCC, DIFC) require physical attendance; others (IFZA) accept e-notarisation.

Ministry of Foreign Affairs and International Cooperation.

Handles document attestation, embassy services, and international agreements. Critical for foreign documents being used in UAE (marriage certificates, degrees, etc.).

Ministry of Health and Prevention — federal health regulator.

Regulates pharmaceuticals, medical devices, and federal-level healthcare matters. Required for pharmaceutical trading, medical device imports.

Ministry of Human Resources and Emiratisation — UAE labour ministry.

Manages employment contracts, labour cards, end-of-service gratuity, and Emiratisation quotas. Free zone employees fall under their respective zone's labour rules; mainland under MOHRE.

Bank account holding multiple currencies natively (AED, USD, EUR, GBP, etc.).

Reduces FX margin loss. Mashreq Neo Biz, Wio Bank, Emirates NBD all offer. Critical for international invoicing.

International business companies (IBCs) registered for holding/trading without UAE physical presence.

RAK ICC and JAFZA Offshore are main UAE offshore options. Cannot operate in UAE; primarily for international holding, IP licensing, and trade.

Legal authorisation for someone to act on your behalf.

Common for non-resident founders. Must be notarised and attested for use in UAE. Translation to Arabic typically required.

Primary Source Verification — see DataFlow.

Qualifying Free Zone Person — entity status that preserves the 0% corporate tax rate.

To qualify, a free zone entity must maintain adequate substance, earn qualifying income, comply with transfer pricing rules, and submit audited financial statements. Qualifying income is mostly foreign-sourced or B2B between free zone entities.

RAK International Corporate Centre — UAE's most popular offshore registry.

International Business Companies (IBCs) for holding, IP, and international structuring. No UAE physical presence required. AED 6,000–10,000/yr typical.

Ras Al Khaimah Economic Zone — northern emirate's flagship free zone.

20,000+ companies. Attractive cost (AED 8,000–25,000 typical Y1). Industrial parks for manufacturing, plus business zones for services.

Real Estate Regulatory Agency — Dubai's property regulator.

Issues real estate broker licences, regulates Ejari (tenancy contract registration), and supervises property transactions. Mainland licence required for property broking; free zone alone is insufficient.

An Emirati liaison for mainland branches of foreign companies.

Distinct from local sponsor — service agents handle government interactions but don't take equity. AED 10,000–30,000/year typical.

Sharjah Media City — budget-friendly zone for media and creative SMEs.

Year 1 from AED 11,500. Up to 6 visas on flexi packages. Most popular budget alternative to IFZA.

Documentation showing where your business or personal funds originated.

Critical for KYC. Accept: salary slips, business income statements, asset sales, inheritance documents. Banks are increasingly strict, especially for high deposits.

Separate legal entity owned by a parent company.

Common for groups: hold company in ADGM/RAK ICC, operating subsidiaries in DMCC/IFZA. Separate liability shield.

Real economic activity — actual employees, office, decisions made in UAE.

Required for QFZP status and to defend DTAA claims internationally. Letterbox companies (no real operations) increasingly face challenges from foreign tax authorities.

Evaluation of whether a UAE entity has real economic activity.

Used by foreign tax authorities to challenge DTAA benefits. Pass criteria: actual office, employees, decisions, customers in UAE.

Unique identifier issued by FTA for VAT or CT registered entities.

Required on VAT invoices. Format: 15-digit number. Customers may request TRN before paying invoices.

Permission to conduct commercial activities — issued by free zone or DED.

Lists permitted activities. Annual renewal required (AED 8,000–35,000+ depending on zone). Without a valid trade licence you can't legally invoice clients in UAE.

Rules requiring related-party transactions to be at arm's length.

Critical for QFZP qualification. UAE TP rules align with OECD principles. Documentation requirements apply for groups with annual revenue above thresholds.

Tax Residency Certificate — issued by UAE FTA confirming UAE tax residency.

Required to claim DTAA benefits internationally. Eligibility: 183+ days physically in UAE in a calendar year, OR demonstrated centre of vital interests in UAE. Cost: AED 1,000–2,000 per certificate, valid 1 year.

UAE's national digital identity app.

Single sign-on for 6,000+ government and private services. Required for many e-services. Register on day one of residency.

Ultimate Beneficial Owner — natural person ultimately owning or controlling a company.

UAE requires UBO disclosure for all companies. Threshold: 25%+ ownership or control. Updated annually.

Virtual Assets Regulatory Authority — Dubai's crypto regulator.

Established 2022. Issues VASP (Virtual Asset Service Provider) licences for exchange, custody, advisory, and management activities. Operates outside DIFC. Required for most regulated crypto activities in Dubai.

Virtual Asset Service Provider — regulated entity status under VARA.

Categories include exchange, broker-dealer, custody, lending. Capital requirements range from USD 250K to several million depending on activity scope.

Value Added Tax at 5% — applies to most goods and services in UAE.

Mandatory registration threshold: AED 375,000 in annual taxable supplies. Voluntary threshold: AED 187,500. Designated Zones treat goods as outside UAE for VAT purposes; standard zones don't.

Tax deducted by a payer in one country on payments to a foreign recipient.

Common on dividends, interest, royalties. UAE has no domestic withholding tax, but UAE residents may face withholding when receiving income from countries that do. DTAAs reduce these rates.