The UAE offers compelling advantages — a low-tax environment, world-class infrastructure, and access to global trade routes. Yet establishing a company here comes with a distinct set of practical hurdles. Below we outline the challenges our clients encounter most frequently and the approaches we use to address them.
Regulatory Complexity, Licensing and Tax Obligations
UAE law distinguishes between mainland companies, free zone entities, and offshore structures — each carrying its own licensing categories, capital requirements, and activity restrictions. Choosing the wrong structure early on means delays, rework costs, and potential re-registration. We assess each client's business model and identify the most suitable legal form before a single document is filed.
The introduction of corporate tax (9 % from June 2023) alongside the existing 5 % VAT has made the UAE's tax landscape more nuanced. Misunderstanding registration thresholds, filing deadlines, or transfer-pricing rules can trigger penalties from the Federal Tax Authority. Our team advises on tax structuring and helps clients establish compliant accounting from day one.
- Entity type: mainland, free zone, or offshore — chosen according to business activity and target markets.
- Licensing: commercial, professional, or industrial licence with the correct activity list.
- Tax registration: timely VAT and corporate tax enrolment with proper reporting setup.
- Annual compliance: substance requirements, licence renewals, and audit obligations.
Cultural Barriers, Corporate Banking and Finding Local Partners
Business in the UAE is built on personal relationships and trust. Unfamiliarity with local communication norms and Arabic business etiquette can complicate dealings with government departments, landlords, and suppliers. Our multilingual team — fluent in Arabic, English, and Russian — accompanies clients through every interaction with local authorities and counterparties.
Opening a corporate bank account remains one of the most sensitive steps in the setup process. UAE banks conduct thorough KYC and AML due diligence and require comprehensive documentation. We prepare a strong, well-organised file tailored to each bank's specific requirements and match clients with institutions whose risk appetite aligns with their business profile — significantly improving the likelihood of a smooth account opening.
Sourcing reliable local partners and suppliers without market knowledge carries real reputational and financial risk. Through years of operating in the UAE, we have built a network of vetted contacts — auditors, lawyers, logistics providers, and industry specialists — that we make available to our clients.
Whether you are planning to launch a company in the UAE or have already encountered one of these challenges, contact us to discuss how we can help.