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Company Laws in Dubai That Every Entrepreneur Needs to Know

Companies operating in Dubai are required to follow many strict laws. Here are some key ones every entrepreneur should familiarize themselves with.

Published on
June 26, 2023

Every country has specific laws and regulations that businesses conducting operations must follow. The UAE also has its own unique laws designed to safeguard local businesses, residents, workers, and the environment.

If you intend to set up or take over a business in Dubai in the near-future, you should familiarize yourself with these laws beforehand. In this guide, we will summarize some vital company laws in Dubai to keep in mind.

1. Labor Laws

UAE’s labor laws are designed to ensure that employers treat workers fairly. They include provisions related to working hours, termination, and leaves. In some industries, UAE labor laws also dictate the minimum wage, employee benefits, and working conditions that employers must provide for their employees.

2. Commercial Companies Laws

There are many laws related to commercial companies founded and operating in Dubai. This includes laws the business owner must follow when setting up their company, such as registering the business and ensuring it meets the minimum capital requirements for its company type.

These commercial companies’ laws also dictate who is liable for actions and decisions for different company types. 

3. Tax Laws

Many businesspeople do business in Dubai due to its business-friendly tax laws. There are many such laws, and some of these may apply to your business.

For example, you will  have to register for Value Added Tax (VAT) if your business’s annual turnover is AED 375,000 or greater.

Similarly, if you choose to operate your business in Dubai it is important to note that from 1 June 2023, companies operating in the UAE (whether on the mainland or in free zones) with a business income in excess of AED 375,000 are subject to corporate tax at a rate of 9%..

4. Shareholder Laws

If your business is owned by shareholders, you will need to follow specific shareholder-related laws. For example, shareholders will be entitled voting rights, capital appreciation and dividends.

Similarly, shareholders will also have the right to see financial statements and learn other information about the business’s operations.

5. Data Protection Laws

The UAE has many Data Protection Laws designed to keep employees and their data safe. For example, businesses in Dubai must obtain consent from their employees before attempting to collect personal information from them.

Such businesses must also ensure they follow appropriate data safety measures and do not transfer personal data outside the country. Companies must also notify the authorities if they suspect a data breach has occurred.

How Capatt Services Can Help

The company laws in Dubai described above are just a few of the many laws that businesses are required to comply with. If you would like to learn more about Dubai’s business laws, please contact Capatt Services. Our consultants can familiarize you with the essential laws to follow and can help you set up your Dubai business in compliance with local laws and regulations.

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