UAE Legal Questions
and Answers

Company closure procedure in Dubai:

1) Board resolution to liquidate

2) Appoint liquidator (can be owner)

3) Publish liquidation notice in newspapers

4) Settle all debts and collect receivables

5) Cancel visas and establishment card

6) Obtain clearance from:
• Immigration
• Labour
• Tax Authority

7) Submit final accounts to authorities

8) Cancel trade license

9) Close bank accounts

Timeline: 3-6 months for solvent companies.

Debts must be cleared before closure.

Freezone companies: Follow specific freezone liquidation procedures.

UAE Corporate Tax (effective June 2023):

1) 9% on taxable income exceeding AED 375,000

2) 0% on income up to AED 375,000

3) Qualifying freezone companies: 0% on qualifying income

4) Registration required for all businesses

5) First tax period: Financial year starting on/after June 1, 2023

6) Filing deadline: 9 months after financial year end

7) Exempt:
• Government entities
• Pension funds
• Investment funds

8) Small business relief available

Prepare:
• Maintain proper accounting records
• Register with FTA
• File annual returns

Starting a business in Dubai requirements:

1) Choose legal structure (LLC, Freezone, Sole Proprietorship)

2) Select business activity

3) Reserve trade name

4) Prepare documents:
• Passport
• Visa
• Business plan

5) Rent office/flexi-desk

6) Obtain trade license

7) Open corporate bank account

8) Register for VAT (if turnover exceeds AED 375,000)

9) Register for Corporate Tax

10) Obtain necessary permits (food, health, etc.)

Startup support:
• Dubai SME
• in5
• DTEC offer funding and incubation

Consider dual licensing for mainland + freezone benefits.

Foreign investors can establish a company in Dubai either in the mainland or in a free zone. The process usually involves selecting the business activity, choosing the legal structure, registering the trade name, obtaining initial approval from the Department of Economy and Tourism, and securing the necessary business license. Many free zones also allow 100% foreign ownership depending on the type of business.