Business Setup Glossary

A permit issued by UAE authorities that specifies the business activities a company is legally allowed to conduct.

An international certification that authenticates documents for use in countries that are members of the Hague Convention.

A legal document that defines the company's internal rules, regulations, and operational procedures.

The process of verifying and certifying the authenticity of documents by relevant authorities.

An extension of a foreign parent company that operates in the UAE under the parent company's name and license.

Official permission from a UAE authority allowing a company to conduct specific commercial activities.

The minimum amount of share capital required to establish a company, which varies by jurisdiction and activity.

A type of trade license that permits buying, selling, and trading of goods within the UAE.

A 9% federal tax on business profits exceeding AED 375,000, implemented in the UAE from June 2023.

The government authority responsible for issuing mainland trade licenses and regulating business activities in each emirate.

A license that allows a company to operate in both a free zone and mainland UAE simultaneously.

The online portal used for UAE visa and immigration applications and services.

A mandatory identification card for all UAE residents, required for various government and private services.

An initial visa document that allows a person to enter the UAE for residency processing.

A document issued to companies that authorizes them to sponsor employees for visas.

The UAE government body responsible for administering and collecting federal taxes including VAT and Corporate Tax.

A shared workspace option in free zones that provides a business address without a dedicated office.

The percentage of a company that can be owned by non-UAE nationals. Free zones typically allow 100% foreign ownership.

A designated economic area in the UAE that offers special benefits including 100% foreign ownership, tax exemptions, and simplified setup.

A limited liability company established within a UAE free zone with its own legal personality.

A comprehensive license that allows trading in multiple product categories without restrictions.

A long-term residence visa (5-10 years) for investors, entrepreneurs, specialized talents, and exceptional students.

An official document confirming that a company is registered, active, and compliant with all regulatory requirements.

A company whose primary purpose is to own shares in other companies rather than conducting trading activities.

A Dubai-based free zone known for competitive pricing and quick company formation.

A card issued to companies allowing them to submit visa applications for employees.

A type of trade license for manufacturing, processing, and production activities.

A residence visa issued to company shareholders and investors based on their ownership stake.

One of the oldest and largest free zones in Dubai, located near Jebel Ali Port.

A work permit issued by the Ministry of Human Resources allowing an individual to work in the UAE.

An authorized person who can sign legal documents and act on behalf of a company.

The annual process of renewing a trade license to maintain legal operating status.

A business structure where owners have limited personal liability for company debts and obligations.

A UAE national who holds 51% ownership in a mainland LLC (required for certain activities before recent reforms).

A UAE national who provides liaison services for branch offices without ownership stake.

Business jurisdictions under DED that allow unrestricted trading within the UAE, as opposed to free zones.

A mandatory health examination required for obtaining a UAE residence visa.

A legal document that defines the company's relationship with external parties and its objectives.

The government ministry responsible for labor laws, work permits, and employment regulations.

The process of securing approval for a company's trade name before registration.

A letter from a current sponsor or employer granting permission for visa transfer or other activities.

The official certification of documents by a notary public to verify their authenticity.

A company registered in a UAE free zone that cannot conduct business within the UAE but enjoys tax benefits for international operations.

A legal document authorizing someone to act on behalf of another person or company.

A professional who handles government liaison, document processing, and administrative tasks for businesses.

A type of trade license for service-based businesses such as consultancies, IT services, and legal practices.

A free zone in Ras Al Khaimah known for affordable licensing and diverse business activities.

A licensed entity that assists with company formation and acts as a point of contact with the free zone authority.

A branch that can only perform marketing and liaison activities, not commercial transactions.

A branch that can only perform marketing and liaison activities, not commercial transactions.

A permit allowing a foreign national to live and work in the UAE, typically valid for 2-3 years.

The total value of shares issued by a company to its shareholders.

An individual or entity that owns shares in a company.

A company structure allowing one individual to establish a limited liability company.

A business owned by one person who has unlimited liability for company debts.

The process of converting one type of visa to another while inside the UAE.

Official government permission to conduct specific business activities in the UAE.

The official name under which a business operates and is registered with authorities.

A unique number issued by the FTA upon registration for VAT or Corporate Tax.

The individual who ultimately owns or controls a company, required for AML compliance.

A 5% consumption tax on goods and services in the UAE, with some exemptions and zero-ratings.

A business address and communication services without physical office space.

The maximum number of visas a company can sponsor based on office size and license type.

A permit allowing a company to store and distribute goods from a warehouse facility.

Authorization for a foreign national to be employed in the UAE, linked to a specific employer.