Reference
UAE Business Glossary
Plain-language definitions of the terms that decide licences, taxes, visas and bank accounts in the UAE.
- Trade LicenceThe core legal permission to conduct a named business activity in the …
- Memorandum of Association (MOA)The constitutional document of a UAE company recording shareholders, c…
- Department of Economic Development (DED/DET)The emirate-level authority that licenses mainland businesses. Dubai's…
- Free ZoneA designated economic area with its own registrar, 100% foreign owners…
- Mainland CompanyAn onshore entity licensed by an emirate's economic department, able t…
- Offshore CompanyA non-resident UAE entity (JAFZA Offshore, RAK ICC, Ajman Offshore) us…
- Golden VisaA 10-year, self-sponsored UAE residence visa for investors, property o…
- Emirates IDThe biometric national identity card every UAE resident must hold. It …
- EjariDubai's mandatory tenancy-registration system. A registered Ejari cont…
- Establishment CardThe immigration file card that lets a company sponsor residence visas.…
- Qualifying Free Zone Person (QFZP)A free zone entity that meets substance, audited-accounts and qualifyi…
- UAE Corporate TaxA 9% federal tax on business profits above AED 375,000, effective for …
- Value Added Tax (VAT)A 5% consumption tax administered by the FTA. Registration is mandator…
- EmaraTaxThe Federal Tax Authority's online portal for all tax registrations, r…
- Wage Protection System (WPS)The mandatory salary-transfer system routing staff wages through appro…
- MOHREThe Ministry of Human Resources and Emiratisation — regulator of mainl…
- PRO Services'Public Relations Officer' work — the licensed running of government t…
- Document AttestationThe chain legalisation of foreign documents (degree, marriage, birth c…
- Power of Attorney (POA)A notarised authorisation letting an agent sign incorporation, banking…
- Ultimate Beneficial Owner (UBO)The natural person(s) who ultimately own or control an entity. UAE com…
- Economic Substance Regulations (ESR)Rules requiring entities conducting 'relevant activities' (holding, HQ…
- Anti-Money Laundering (AML)The compliance regime governing customer due diligence, transaction mo…
- Know Your Customer (KYC)The identity, address, source-of-funds and business-purpose verificati…
- No Objection Letter (NOC)A consent letter from a sponsor, landlord or authority permitting an a…
- Tenancy ContractThe lease underpinning your licence's registered address. Its size and…
- Share CapitalThe declared capital in the MOA. Most UAE authorities no longer requir…
- Nominee ArrangementsStructures where a person holds shares or a role for another. Post-own…
- Local Sponsor / Service AgentHistorically a UAE national holding 51% of mainland companies. Since t…
- Visa QuotaThe number of residence visas a licence can sponsor, driven by office …
- Medical Fitness TestThe mandatory blood test and chest X-ray for every residence visa, scr…
- Entry PermitThe pre-visa authorisation to enter (or change status inside) the UAE …
- Status ChangeConverting an entry permit or visit visa into residency processing wit…
- Freelance PermitA licence class for individuals offering professional services under t…
- Dual LicenceArrangements letting a free zone company also operate onshore (or vice…
- Branch of a Foreign CompanyA UAE-licensed extension of an overseas parent, trading under the pare…
- Customs Client CodeThe importer/exporter registration with an emirate's customs authority…
- HS CodeThe harmonised commodity classification determining duty rates and per…
- Certificate of OriginThe chamber-of-commerce document certifying where goods were produced,…
- CEPA AgreementsThe UAE's Comprehensive Economic Partnership Agreements (India, Türkiy…
- Tax Registration Number (TRN)The FTA-issued number identifying a VAT or Corporate Tax registrant. I…
- Tax InvoiceA VAT-compliant invoice carrying the supplier's TRN, VAT amount and ma…
- Input VATThe VAT you pay on business purchases, recoverable against output VAT …
- Reverse Charge MechanismThe VAT rule shifting accounting for tax from foreign supplier to UAE …
- Designated Zone (VAT)Fenced free zones treated as outside the UAE for specific VAT purposes…
- Small Business ReliefThe Corporate Tax election letting residents with revenue up to AED 3 …
- Transfer PricingRules requiring related-party transactions to be priced at arm's lengt…
- Statutory AuditIndependent verification of financial statements. QFZP status, many fr…
- IFRSInternational Financial Reporting Standards — the accounting basis UAE…
- Company LiquidationThe formal closure of a UAE entity: board resolutions, liquidator appo…
- Licence RenewalThe annual re-issuance of your trade licence, contingent on tenancy, i…
- Trade Name ReservationSecuring your company name with the licensing authority before incorpo…
- Initial ApprovalThe authority's in-principle consent to proceed with licensing — confi…
- External / Third-Party ApprovalsSector sign-offs some activities need beyond the economic department —…
- Flexi-DeskA shared, bookable workstation package satisfying the physical-presenc…
- Virtual OfficeAn address-and-services package without dedicated space. Sufficient fo…
- Business Activity CodeThe authority's classification of what your licence permits. Operating…
- Professional LicenceThe licence class for skill-based services (consulting, design, IT). I…
- Commercial LicenceThe licence class for trading goods — buying, selling, importing, expo…
- Industrial LicenceThe licence class for manufacturing and processing, tied to industrial…
- Tourism LicenceThe DTCM/DCT-regulated class for travel agencies, tour operators and h…
- E-commerce LicenceLicence variants built for online sellers (e-Trader in Dubai for home-…
- GCC Common MarketThe Gulf Cooperation Council framework giving GCC nationals and, for g…
- MoIAT / Make it in the EmiratesThe Ministry of Industry's programme incentivising local manufacturing…
- In-Country Value (ICV)The certification scoring how much of your spend stays in the UAE econ…
- Real Estate EscrowDubai's mandatory project escrow regime protecting off-plan buyers — d…
- Memorandum of UnderstandingA pre-contract recording commercial intent. In UAE property and busine…
- Share Purchase AgreementThe contract transferring company shares, coordinating licence amendme…
- Shareholders' AgreementThe private contract among owners covering vesting, deadlock, exits an…
- UAE Employment ContractThe MOHRE or free zone-registered contract fixing salary, role and lim…
- End-of-Service GratuityThe statutory severance accrual (21 days' basic pay per year for the f…
- Emiratisation (Nafis)Quotas requiring mainland companies above headcount thresholds to hire…
- Golden Visa Property RouteQualifying via AED 2M+ of real estate (completed or, within limits, of…
- Investor / Partner VisaResidency sponsored by your own company's immigration file — typically…
- Dependent (Family) VisaResidency for spouse, children and, under conditions, parents — sponso…
- Visit VisaShort-term entry for tourism or business scouting. Many founders incor…
- Overstay FinesDaily penalties for remaining beyond visa validity. They block future …
- GDRFA / ICAThe federal and Dubai immigration authorities issuing entry permits, r…
- TawtheeqAbu Dhabi's tenancy registration system — the capital's equivalent of …
- Chamber of CommerceThe emirate body every mainland company joins at licensing, which also…
- UAE Notary PublicThe official (now largely digital) who notarises MOAs, POAs and resolu…
- goAMLThe FIU's reporting platform where regulated businesses file suspiciou…
- UAE Data Protection Law (PDPL)The federal privacy law governing personal-data processing, with free …
- UAE TrademarkBrand registration with the Ministry of Economy giving 10-year renewab…
- Madrid ProtocolThe international trademark system the UAE joined in 2021, letting one…
- Commercial Agency LawThe regime protecting registered UAE distributors of foreign brands. R…
- Franchising in the UAEFranchise deals ride on trademark licences and the agency law's edges.…
- Cheque RegulationsPost-2022 reforms decriminalised most bounced cheques, converting them…
- Corporate Bank AccountThe operating account UAE companies run payroll and trade through. Ban…
- UAE IBANThe standardised account number all UAE transfers use. WPS salary file…
- Security ChequesUndated cheques landlords and lessors demand as guarantees. They remai…
- Payment Gateway OnboardingAcquirer approval for online payments — underwritten on licence scope,…
- Al Etihad Credit Bureau (AECB)The UAE credit bureau scoring individuals and companies. Clean AECB re…
- Trade Finance (LC/TR)Letters of credit and trust receipts financing goods in transit. Banks…
- Holding CompanyAn entity owning shares, IP or property rather than trading. ADGM SPVs…
- Special Purpose Vehicle (SPV)A ring-fenced entity holding a single asset or deal. ADGM's SPV regime…
- Family FoundationDIFC/ADGM foundations holding family assets with succession rules buil…
- Succession & WillsNon-Muslim residents can register DIFC or Abu Dhabi wills electing hom…
- UAE Tax Residency CertificateThe FTA certificate evidencing UAE tax residency for treaty benefits —…
- Double Tax TreatiesThe UAE's 140+ treaty network reducing withholding taxes on dividends,…
- CRS & FATCAAutomatic exchange regimes banks apply at onboarding — your account da…
- Economic SubstanceThe people-premises-decisions reality regulators and banks test struct…
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