What Are The Mandatory Compliance Requirements In UAE?

 Before entering into UAE market for starting a business, it is must to know the mandatory compliance requirements by the financial regulatory compliance services in UAE. This blog has curated a list of regulatory compliance to be followed in the UAE market.

 

l  Taxation in UAE

 

The Federal Taxation Authority of UAE has introduced Value Added Tax as effective from 1^st Jan, 2018. It is a mandatory tax for the businesses whose annual taxable revenue is above AED 375,000 must register for Vat while those businesses whose annual taxable revenue is above AED 187,500 can opt for voluntary registration. VAT is applicable on sales, file periodic Vat returns with FTA and claim input Vat on expenses. Exemptions from the VAT include sectors of health care and education.

 

 

l  Registration and Licensing

 

The mainland companies must be registered with the department of Economic Development and the offshore companies must be registered with authorities like JAFZA offshore or Ajman offshore whereas free zone companies must registered with the Free Zone Authorities like DMCC or DIFC and can obtain the business license for this. Some companies may also require memorandum of association which can define ownership structure and capital contribution?

 

 

l  Ultimate Beneficial Owner Regulations (UBO)

 

The regulatory compliance services in UAE must thoroughly check that whether the business is registered in the mainland or in the free zone, it will be mandatory to maintain ultimate beneficial owner register and submit it to the registrar before the communicated deadlines. The UBO regulation was introduced to enhance the transparency and to prevent financial crimes.

 

 

l  Economic Substance Regulations

 

Economic substance regulation was aligned on 11 September 2019 with global tax transparency standards set by the Organization for economic co-operation and development. For this submit an ESR notification to the Ministry of Finance and file an ESR if the income from the relevant activities meets the requirement of having office in UAE, having adequate staff or incurring operational expenses in UAE. Companies to file ESR must be engaged in the relevant activities of banking, insurance, holding company business, intellectual property business, lease-finance business and much more. The First Check Consultants as a regulatory compliance services in UAE can help you out in filing the ESR and avoid penalties and maintain international compliance.

 

 

l  Anti-Money Laundering/ Counter -Terrorism Financing

 

For the successful operation of the business in UAE, anti-money laundering and counter-terrorism are mandatory compliance requirements to prevent financial crimes and align with the international standards as set by the financial action task force. Businesses in the financial services like real estate, precious metals and other sectors with the high risk areas must register with goAML system. With this company monitors the suspicious activities and reports to FIU through goAML. A compliance officer from the regulatory compliance services in UAE can be helpful for the internal audits, reporting and for the AML policies.

 

 

l  Financial Auditing and Accounting

 

Maintaining financial auditing and accounting is a mandatory compliance for the successful operation of the businesses in UAE for ensuring transparency and compliance with the local laws. The First Check consultants can offer you the best consultant and compliance services in UAE and will help you to prepare financial statements in accordance with the IFRS. The auditor will conduct financial audits and submit it annually to the concerned authorities.

 

 

The above discussed are some of the mandatory compliance requirements in UAE to avoid penalties and ensure smooth operation of the businesses.

 

 

Wrap-up

 

The First Check Consultants can offer you the excellent and cost effective solutions for your business which can be proven beneficial for the business growth.