UAE Business Glossary

UAE business comes with its own vocabulary of authorities, registrations and compliance regimes. This glossary defines the terms you will meet most often when setting up and running a company in Dubai, in plain language.

FTA (Federal Tax Authority)

The federal government body responsible for administering and collecting UAE taxes, including VAT and Corporate Tax. The FTA handles registrations, returns, refunds, audits and penalties, and approves tax agents who can represent businesses before it.

TRN (Tax Registration Number)

A unique number issued by the FTA when a person or business registers for VAT or Corporate Tax. The TRN must appear on tax invoices and is used in all dealings with the FTA.

Corporate Tax

A federal tax on the net profits of UAE businesses, charged at 0% on taxable income up to AED 375,000 and 9% above that threshold. It applies to financial years starting on or after 1 June 2023 and is filed annually within nine months of the year-end.

VAT (Value Added Tax)

A 5% consumption tax on most goods and services in the UAE. Registration is mandatory once taxable turnover exceeds AED 375,000 and voluntary from AED 187,500. Registered businesses charge VAT on sales and reclaim it on eligible purchases.

Free Zone

A designated economic area offering benefits such as 100% foreign ownership, simplified setup and, for qualifying activities, a 0% Corporate Tax rate. Each free zone has its own authority, licensing rules and permitted activities.

Mainland

A company licensed by the Department of Economic Development of an emirate that can trade freely throughout the UAE local market and bid for government contracts, unlike a free zone entity which is primarily geared to its zone and to international trade.

Offshore

A company registered in the UAE for holding assets, international trade or investment, which cannot carry on business within the UAE local market. Offshore companies are commonly used for asset protection and holding structures.

QFZP (Qualifying Free Zone Person)

A free zone company that meets the conditions to keep a 0% Corporate Tax rate on its Qualifying Income. Requirements include adequate UAE substance, earning income from qualifying activities, respecting the de minimis limit, transfer pricing compliance and audited financial statements.

Small Business Relief

A Corporate Tax relief that lets an eligible resident business with revenue of AED 3,000,000 or less elect to be treated as having no taxable income for a tax period. The business must still register and file a return while claiming the relief.

Ejari

The Dubai system for registering tenancy contracts, administered through the Dubai Land Department. A registered Ejari is required for many official processes, including trade licence applications and visa procedures.

MOA (Memorandum of Association)

The founding legal document of a company, setting out its shareholders, share capital, activities and governance. Banks and authorities routinely request the MOA, often alongside the Articles of Association.

Golden Visa

A long-term UAE residence visa, typically valid for five or ten years, granted to investors, entrepreneurs, skilled professionals and other eligible categories. It allows holders to live, work and study in the UAE without a national sponsor.

goAML

The UAE anti-money-laundering reporting platform, operated by the Financial Intelligence Unit. Designated businesses must register on goAML and submit suspicious transaction and activity reports.

ESR (Economic Substance Regulations)

Rules requiring UAE entities that carry on certain relevant activities to demonstrate adequate economic substance in the UAE and, where applicable, to file notifications and reports. ESR aligns the UAE with international standards on tax transparency.

UBO (Ultimate Beneficial Owner)

The natural person who ultimately owns or controls a company, usually defined by a threshold such as 25% of shares or voting rights. UAE companies must identify and register their UBOs and keep the information up to date.

Establishment Card

A document issued by immigration authorities that links a company to the UAE labour and immigration systems, enabling it to sponsor employee visas and work permits. It is renewed periodically alongside the trade licence.