UAE business law & policy

Principal law for UAE mainland commercial companies (LLCs, JSCs): incorporation, capital, governance, shareholder rights. Replaced Federal Law No. 2 of 2015 and consolidated the 100% foreign-ownership reforms.

Governs incorporation, registration, management and operation of DIFC companies, directors' duties and shareholder rights. Administered by the Registrar of Companies.

Operational framework for DIFC entities — registration, filings, and the Registrar of Companies. Works alongside the Companies Law.

Requires ADGM entities to identify and maintain beneficial-owner registers (FATF/OECD aligned). Replaced BOCR 2018; amended Feb 2024.

Principal corporate law for ADGM entities — formation, types, governance, shares, accounts, auditors. Replaced the 2015 regulations.

Removed the general 51% Emirati ownership requirement and local service agent for branches, enabling up to 100% foreign ownership of mainland companies.

Defines 'strategic impact' activities (security/defence, banking, insurance, finance) where 100% foreign ownership is not automatic and a regulator sets the permitted FDI percentage.

Establishes a unified federal commercial register standardising registration data and trade information; underpins the National Economic Register.

General code governing commercial dealings, traders, obligations and instruments; replaced the 1993 commercial transactions law.

Governs commercial agency/distribution: agencies must be registered with MoEC to be enforceable; agents generally must be UAE nationals or wholly UAE-owned. Repealed Federal Law No. 18 of 1981.

0% on taxable income up to AED 375,000 and 9% above. Applies to financial years beginning on or after 1 June 2023.

Ensures large MNE groups (global revenue ≥ EUR 750m in 2 of 4 prior years) pay a 15% minimum effective tax in the UAE. Applies to financial years starting on/after 1 Jan 2025 (OECD Pillar Two aligned).

Indirect tax on goods harmful to health/environment (e.g. 100% tobacco/energy drinks, 50% carbonated drinks per Cabinet Decision 52/2019). Effective 1 Oct 2017.

A Qualifying Free Zone Person can access 0% Corporate Tax on Qualifying Income (9% on non-qualifying), subject to substance and regulatory conditions and not doing mainland business.

Residents with revenue ≤ AED 3 million may elect to be treated as having no taxable income, for tax periods from 1 Jun 2023 to 31 Dec 2026. Not available to QFZPs or MNE groups.

5% standard rate. Registration mandatory above AED 375,000 taxable supplies/imports per year; voluntary above AED 187,500. Introduced 1 Jan 2018.

Required entities carrying out 'Relevant Activities' to maintain adequate UAE substance and file notifications/reports. Reporting cancelled for financial years ending after 31 Dec 2022 (Cabinet Decision 98 of 2024).

Current AML/CFT/proliferation-financing law; repealed and replaced FDL 20/2018. Expands ML to digital systems and virtual assets, recognises VASPs, adds asset-recovery framework. In force 14 Oct 2025.

Former principal AML/CFT framework (CDD, STR reporting, National Committee). ML fines AED 300,000–10,000,000. Repealed by FDL 10/2025.

Mandatory goAML portal registration for DNFBPs (real estate, auditors, precious metals/stones dealers, corporate service providers) and FIs to report suspicious transactions.

Current UBO framework: mainland and commercial free-zone entities must file a Register of Beneficial Owners within 60 days of incorporation and report changes within 15 days. UBO = 25%+ ownership/control. ADGM & DIFC exempt.

Earlier UBO regime requiring registers of beneficial owners, partners and nominee directors. Superseded by Cabinet Decision 109 of 2023.

Penalty schedule for UBO violations: warning → up to AED 50,000 (2nd) → up to AED 100,000 (3rd), with possible licence suspension. Grievance within 30 days.

All persons, FIs, DNFBPs and VASPs must register on the EOCN alert system, screen against the UN Consolidated and UAE Local Terrorist lists, freeze on a match within 24 hours, and report via goAML within 5 business days.

UAE's first comprehensive federal data-protection law: governs processing of personal data, rights of data subjects, and controller/processor duties; generally requires consent. Effective 2 Jan 2022.

Establishes the UAE Data Office (affiliated with the Cabinet) to prepare data-protection policies, approve standards, handle complaints and issue PDPL implementation guidance.

GDPR-aligned regime regulating collection, processing and transfer of personal data in DIFC; enforced by the DIFC Commissioner of Data Protection. Commenced 1 Jun 2020.

GDPR-modelled regime with data-subject rights, controller/processor safeguards and an independent Office of Data Protection. Replaced the 2015 regulations.

Policy requiring private-sector firms (notably 50+ employees) to raise the share of Emirati employees, with annual targets for skilled roles, supported by the federal Nafis programme.

Federal private-sector labour law: fixed-term contracts, end-of-service gratuity, working hours, leave, termination; prohibits forced labour and discrimination. Amended by FDL 20/2023. Effective 2 Feb 2022.

Electronic salary-transfer system; MOHRE-registered private-sector establishments must pay wages via approved channels so MOHRE can monitor full, on-time payment.

Governs the DIFC employer-employee relationship: contracts, wages, leave, end-of-service, termination. Amended by DIFC Laws No. 4 of 2020 and 2021.

Current ADGM employment framework — remote/flexible work, part-time entitlements, permits/visas, expanded anti-discrimination. Replaced ER 2019; applies from 1 Apr 2025.

5- or 10-year renewable residence visa with no national sponsor, for investors, entrepreneurs, specialised talent, outstanding students and others. Investor route generally needs AED 2m investment.

5-year self-sponsored residence for skilled workers, freelancers and investors (e.g. skilled workers min AED 15,000/month; freelancers min AED 360,000/year) without a UAE employer/sponsor.

Insolvency framework introducing court-supervised Preventive Settlement, restructuring and dedicated Bankruptcy Courts. Replaced Federal Decree-Law No. 9 of 2016.

DIFC insolvency framework — administration, receivership, liquidation, and registration of insolvency practitioners.

ADGM corporate insolvency framework — administration, receivership, winding-up; enhanced insolvency-practitioner regime.

General principles of DIFC contract law — formation, interpretation, performance, remedies.

Licensing/supervisory framework for retail payment service providers and card schemes — payment accounts, instruments, money transfer and digital payments. Under Decretal Federal Law No. 14 of 2018.

Licensing/supervision of stored-value facility issuers — financial resources, governance, risk, AML/CFT. Under Decretal Federal Law No. 14 of 2018.

SCA framework for establishing, promoting and marketing local and foreign investment funds in the UAE; part of the 2023 fund/financial-activities reforms.

DFSA AML/CTF/sanctions requirements for Relevant Persons in the DIFC. Updated module in force 2 Mar 2026, aligned with Federal Decree-Law No. 10 of 2025.

Conduct standards for Authorised Firms dealing with clients — client classification, communications, conduct in financial services.

Foundational DFSA Rulebook module — authorisation, the regulated/financial-services regime and core obligations for Authorised Persons.

Prudential requirements (capital, risk, liquidity) for Authorised Firms in investment, insurance intermediation and banking business, including prudential categories.

Primary financial-services framework in ADGM (modelled on the UK FSMA 2000). Requires an FSRA Financial Services Permission; supplemented by FSRA rulebooks.

Capital, leverage, reporting and PII requirements for Authorised Persons by prudential category (1, 2, 3A, 3B, 3C, 4, 5). Minimum PII standards apply from 1 Jan 2026.

Federal SCA framework for virtual-asset platform operators/VASPs (outside the financial free zones); prohibits trading VAs unless admitted to an SCA-licensed platform. Under Cabinet Resolution 111/2022.

FSRA framework for virtual assets — Accepted Virtual Assets regime, capital requirements, product intervention; prohibits privacy tokens and algorithmic stablecoins. ADGM has regulated virtual assets since 2018.