As an entrepreneur or business seeking to establish itself in the United Arab Emirates (UAE), it is crucial to take into account several key factors that will contribute to your success. The UAE boasts of a robust economy, exceptional infrastructure, and flourishing industries such as oil and gas, tourism, and finance, making it an alluring destination for businesses.

However, there are crucial aspects to consider, such as tax compliance, accounting, and regulations, to ensure that your business sets up for success. Tax compliance is a crucial factor to consider when setting up a business in the UAE. The UAE currently doesn’t have personal or corporate income tax, but there’s a corporate tax set to be introduced in June 2023.

Businesses must also be aware of the value-added tax (VAT), which was introduced in 2018 with a standard rate of 5%. Businesses exceeding the mandatory VAT registration threshold of AED 375,000 per annum must register and charge VAT on taxable goods and services.

Another important factor to consider is accounting. Having a robust accounting system in place involves correctly classifying your business activity, keeping accurate records of financial transactions, and selecting suitable accounting software.

Accurate record keeping is essential for compliance with UAE tax laws and for managing finances effectively. Compliance is also critical when starting a business in the UAE. You need to obtain a trade license from the Department of Economic Development (DED) and
register your company with the Ministry of Economy (MOE).

You must also comply with the UAE’s visa requirements, including obtaining a work permit and medical insurance. Complying with the UAE’s laws and regulations, including Economic Substance Regulations (ESR), Country-by-Country Reporting (CbCR), and Ultimate Beneficial Ownership (UBO), is crucial. Failure to comply can lead to hefty fines, so it’s crucial to be aware of them before starting your business.

In conclusion, tax compliance, accounting, and regulations are vital factors to consider when starting a business in the UAE. With the help of expert consultants, like Exsteer, you can ensure that your business meets all the necessary conditions and requirements for success in the UAE.