Keeping accurate records is an absolute necessity for any business owner operating in the United Arab Emirates. First and foremost, in accordance with UAE law, you must maintain accurate and up-to-date accounting records. To be more precise, this encompasses a variety of ledgers and books, such as those used for keeping track of purchases, taxes, credits, debits, and VAT.

The combination of these should provide a complete picture of the company’s financial health at all times by revealing all transactions. Furthermore, the books must be preserved at the company’s main office for a minimum of five years. Digital copies can then be kept.

Nevertheless, there are a few exceptions. Records about capital assets, such as furniture and machinery, must be kept for a minimum of 10 years. The same holds for real estate records; they need to be preserved for at least fifteen years. Free zones, like the Dubai International Financial Center (DIFC), may impose more regulations on companies in Dubai.

Accounts for Businesses

The process of making invoices is another one that requires your full focus. This is because all invoices sent out by companies in Dubai are required to contain certain information. Some examples are:

• The beneficiary’s full name
• Mailing address and tax ID
• A distinct invoice reference
• A supply date or issue date
• Volumetric pricing and unit cost
• Salaries and tax rates in AED
• The gross amount payable in AED

Accounting and administrative software can be useful when you start a company in Dubai. Quickbooks, SAP, Tally, and Reach Accountant are among the most widely used software programs in the nation. 

Business Banking

Establishing a company checking account is crucial. However, getting a license and a Dubai commercial register for your firm are necessary to do this. Your preferred bank will require an in-person interview to open a business checking account. Additionally, you must provide the following documents:

• Filled application form
• The board of directors has decided to approve the account establishment and the appointment of signatories.
• Document establishing legal status
• License for business
• Certificates for equity
• Association by laws and memorandum
• Copies of each director’s or partner’s passport

Be prepared to provide reference letters, contracts, and invoices to some banks. All stockholders of the companies in Dubai may be required to provide documentation verifying their residency and visa status. Your attendance at the bank meeting is contingent upon your having completed all necessary paperwork. If all the necessary approvals are given now, the account can be opened in two weeks.

In most cases, a minimum amount is required for corporate bank accounts. This might be as little as 20,000 AED or as much as 1 million AED. Business accounts also have the option to support multiple currencies. First Abu Dhabi Bank, Dubai Islamic Bank, and Emirates NBD are among the most well-known local business banks. Bigger international banks like Standard Chartered and HSBC are another option for companies in Dubai.

Business Taxes

Companies in Dubai need to register for tax. Businesses in this nation are typically subject to both the value-added tax (VAT) and the excise tax.

Tobacco, energy drinks, carbonated beverages, and cigarette products are all subject to excise duty. It can also be applied to things that people think are bad for people’s health. On the FTA website, you will find the registration form. After that, you’ll only have 15 days from the end of the tax season to submit your returns. 

Additionally, 5% VAT is levied on companies in Dubai. Businesses in the United Arab Emirates (UAE)’s mainland and Free Zones that are registered to pay taxes are subject to the value-added tax. Registration is required if your company’s taxable supplies and imports exceed AED 375,000 per annum. In any case, it’s not needed. This, too, can be accomplished via the FTA website’s e-services. Then, at the end of each tax period, you have 28 days to file your return.

There are two distinct time frames for value-added tax. Companies in Dubai with annual revenue of less than AED 150 million are required to submit returns monthly. However, companies operating at that level and higher are required to submit returns monthly.

All companies in Dubai are required to keep records of VAT invoices and payments regardless of the outcome. The tax payment is due on the date that you receive your return. The FTA website is the only place to accomplish this. Nonetheless, eDirham, credit card, or bank transfer are all acceptable methods of payment.

Business Insurance

When you start a company in Dubai, it is wise to consider purchasing insurance to safeguard your enterprise. In the Emirates, you can choose from a variety of insurance policies that cover your company or its workers.

The best forms of employee insurance for companies in Dubai are these:

• Insurance for employees hurt on the job (worker’s compensation) safeguards businesses from financial ruin;
• While it is not mandated, having personal accident insurance might be helpful in case of injuries or accidents that are not related to employment;
• United Arab Emirates law mandates that all employers offer medical coverage to their employees;
• If your employees are required to travel for business, travel insurance is a great investment for occasions like flight delays or misplaced bags.

On top of that, certain companies in Dubai may benefit from certain insurance policies. The following are listed:

• Protect your goods and interests with marine insurance if your firm is related to shipping or the sea;
• Motor fleet insurance policy safeguards all of your vehicles in the event of an accident or damage—for businesses that manage vehicle fleets;
• For companies with physical locations, property insurance protects scenes such as a fire.
• Having liability insurance is a must for every company. This is because managing a company on a daily basis is fraught with potential pitfalls. In the event of an accident, misconduct, or other covered mishap, this insurance will protect your business.

Get Your Business Paperwork Done 

Beyond just processing paperwork, QSM Dubai offers comprehensive help for business registration. To make sure your company’s paperwork is strong, legal, and appropriate for both domestic and foreign Dubai commercial register operations, we thoroughly examine the strategic aspects of your company’s documentation. From the most basic requirements for registering a corporation and preparing tax documents to more involved requirements for corporate structure documents, we have you covered. In order to ensure the continued success of companies in Dubai, we will do all we can to shield them from any potential legal or regulatory complications.