UAE mainland companies must comply with a broader set of legal, tax, and employment obligations than many free zone businesses. Along with Corporate Tax, VAT, and UBO requirements, they must meet Emiratisation targets, Wage Protection System (WPS) rules, GPSSA pension obligations, medical insurance requirements, and annual trade licence renewal to remain compliant with UAE regulations.
Mainland companies licensed by the Dubai Department of Economy and Tourism (DET), Abu Dhabi Department of Economic Development (ADDED), Sharjah Economic Development Department (SEDD), or other emirate licensing authorities operate under the UAE mainland regulatory framework. Unlike Qualifying Free Zone Persons (QFZPs), mainland businesses follow the standard Corporate Tax regime and must comply with additional labour, pension, healthcare, and licensing requirements.
|
Dubai licensing authority |
Dubai Department of Economy and Tourism (DET) — formerly DED, rebranded 2022 |
|
Abu Dhabi licensing authority |
Abu Dhabi Department of Economic Development (ADDED) |
|
Sharjah licensing authority |
Sharjah Economic Development Department (SEDD) |
|
Labour regulator |
Ministry of Human Resources and Emiratisation (MOHRE) |
|
Tax authority |
Federal Tax Authority (FTA) |
|
CT rate |
9% on taxable income above AED 375,000; no QFZP 0% rate applies to mainland |
|
Emiratisation (50+ employees) |
AED 8,000 per month per unfilled Emirati slot in 2025 (escalates annually); Cabinet Decision No. 49 of 2022 |
|
Emiratisation (20-49, 14 sectors) |
AED 108,000 per Emirati not hired under 2025 target; Ministerial Decision No. 455 of 2023 |
|
WPS (until 31 May 2026) |
Late if not paid within 15 days of due date; Ministerial Resolution No. 598 of 2022 |
|
WPS (from 1 June 2026) |
All salaries are due by the 1st of each month; Ministerial Resolution No. 340 of 2026 |
|
GPSSA (pre-Oct 2023 hires) |
12.5% employer + 5% employee; Federal Law No. 7 of 1999 |
|
GPSSA (from Oct 31, 2023) |
15% employer + 11% employee + 2.5% govt subsidy; Federal Decree-Law No. 57 of 2023 |
|
Insurance regulator |
CBUAE (Insurance Authority merged 2020); Federal Decree-Law No. 6 of 2025 |
|
Medical insurance |
Mandatory in Dubai (Law No. 11 of 2013) and Abu Dhabi; progressive nationwide enforcement |
|
Annual audit (mainland) |
Not mandated by DET/ADDED for standard renewal; required by banks and regulated sectors |
|
Last reviewed |
June 2026 |
Standard UAE Federal Compliance Obligations
Corporate Tax Registration and Filing
Every mainland company must register for UAE Corporate Tax with the Federal Tax Authority (FTA) within the prescribed timeframe after incorporation. Registration is mandatory regardless of the company’s income or profitability.
Corporate Tax Rate
Mainland companies are generally subject to:
The preferential Corporate Tax treatment available to Qualifying Free Zone Persons (QFZPs) does not apply to mainland entities.
Small Business Relief
Businesses with annual revenue of AED 3 million or less may elect Small Business Relief for eligible tax periods ending on or before 31 December 2026, subject to the conditions under the Corporate Tax Law. The election must be made when filing the Corporate Tax return.
Filing Deadline
Corporate Tax returns filing must generally be submitted within nine months after the end of the relevant financial year. For example, a company with a 31 December year-end must normally file its return by 30 September of the following year.
VAT Registration, Filing, and Deregistration
Businesses must monitor their taxable supplies to determine when VAT registration becomes mandatory.
VAT Registration Thresholds
Failure to register on time may result in administrative penalties imposed by the FTA.
VAT Return Filing
VAT returns are generally filed quarterly unless the FTA assigns a different tax period.
Returns and VAT payments must be submitted within 28 days after the end of each tax period to avoid administrative penalties and late payment charges.
VAT Deregistration
A VAT-registered business must apply for VAT deregistration when it no longer meets the mandatory registration requirements or ceases making taxable supplies, subject to the applicable FTA conditions.
UBO Register and FTA Amendments
FTA amendments: any change to details registered with the FTA, including trade name, business address, activities, or ownership structure, must be notified within 20 business days; Cabinet Decision No. 49 of 2021
UBO register: every mainland company must maintain a register of Ultimate Beneficial Owners; any change must be reflected within 15 days of the change occurring; source: Cabinet Decision No. 58 of 2020
Accounting Records and Record Retention
Accurate and complete accounting records are essential for meeting Corporate Tax and VAT compliance obligations.
Businesses should retain records, including:
Record Retention Periods
The minimum record retention requirements include:
Maintaining organised financial records helps businesses prepare for audits, meet regulatory obligations, and support accurate tax reporting.
UAE Mainland-Specific Compliance Obligations
In addition to federal tax and reporting requirements, UAE mainland companies must comply with several employment, licensing, and operational obligations. These requirements are primarily regulated by the Ministry of Human Resources and Emiratisation (MOHRE), the General Pension and Social Security Authority (GPSSA), and the relevant emirate licensing authorities.
Emiratisation
Emiratisation is one of the most actively enforced compliance requirements for UAE mainland employers. Private sector companies registered with MOHRE must employ UAE nationals in eligible skilled positions based on the workforce size and applicable regulations.
Companies with 50 or More Employees
Businesses employing 50 or more workers must increase the number of Emiratis in skilled roles by 2% annually, with progress assessed every six months. MOHRE monitors compliance through the Nafis platform, payroll records, and Wage Protection System (WPS) data.
Failure to meet the required quota results in financial contributions that increase annually. In 2025, the contribution is AED 8,000 per month for each unfilled Emirati position.
Companies with 20 to 49 Employees
Certain businesses with 20 to 49 employees in designated economic sectors must also comply with Emiratisation requirements.
These companies were required to hire:
Companies that fail to meet these obligations may be subject to financial contributions under MOHRE regulations.
Fake Emiratisation
Employers must ensure Emirati employees are genuinely employed and perform legitimate job duties. Creating artificial employment arrangements or registering individuals solely to meet quotas is considered fake Emiratisation and may result in significant administrative penalties and further enforcement action.
Nafis Registration
Eligible UAE national employees must be properly registered through the Nafis platform. Businesses exceeding their Emiratisation targets may qualify for incentives, including reduced MOHRE service fees and other government benefits.
Wage Protection System (WPS)
The Wage Protection System (WPS) is an electronic salary payment system that enables MOHRE to monitor whether employees receive their wages accurately and on time.
All mainland employers registered with MOHRE must process salaries through a WPS-approved bank or exchange house.
Salary Payment Requirements
From 1 June 2026, all private sector employers must pay employee salaries by the 1st day of the following month under the revised WPS framework.
The previous 15-day grace period no longer applies. Employers should review their payroll processes to ensure salaries are credited within the revised deadline.
Consequences of Non-Compliance
Failure to comply with WPS requirements may result in:
The WPS applies to most private sector employees holding UAE work permits, although separate rules apply to domestic workers and certain categories of employees.
GPSSA Pension Contributions
Mainland employers hiring UAE nationals must register with the General Pension and Social Security Authority (GPSSA) and make monthly pension contributions on behalf of eligible employees.
The applicable contribution rates depend on when the employee first joined the pension system.
Employees Registered Before 31 October 2023
For employees already registered with GPSSA before 31 October 2023:
Employees Registered From 31 October 2023
For eligible Emirati employees joining from 31 October 2023 onwards:
Employer Responsibilities
Employers should:
Failure to comply may result in financial penalties and late payment charges.
End-of-Service Gratuity
Under the UAE Labour Law, eligible expatriate employees are entitled to end-of-service gratuity upon termination of employment, provided they meet the statutory eligibility requirements.
For most employees, gratuity is calculated based on:
The total gratuity cannot exceed the equivalent of two years’ salary.
Voluntary Savings Schemes
Some employers choose to participate in approved employee savings schemes instead of maintaining an unfunded gratuity liability. Businesses should confirm the latest eligibility requirements and implementation framework before adopting any approved alternative scheme.
Mandatory Medical Insurance
Medical insurance is compulsory for employees in Dubai and Abu Dhabi, while implementation continues to expand across other emirates.
Dubai
Employers are legally required to provide health insurance to eligible employees under Dubai Health Insurance Law No. 11 of 2013.
Abu Dhabi
Employers are responsible for providing health insurance for expatriate employees under the requirements of the Department of Health (DoH).
Other Emirates
Businesses should confirm the latest health insurance requirements with the relevant local health authority, as implementation may vary between emirates.
Maintaining valid health insurance is essential because expired or missing coverage can affect residency visa processing.
Trade Licence Renewal
Every mainland company must renew its trade licence annually through the relevant emirate licensing authority.
Renewal requirements typically include:
Operating with an expired trade licence may result in penalties, restrictions on visa processing, and disruption to business operations.
Ejari and Tawtheeq Registration
Commercial tenancy agreements must remain valid throughout the licence period.
An expired tenancy registration can delay or prevent trade licence renewal.
Municipality Fees and Commercial Signage
Mainland businesses may also be subject to municipal fees and signage approval requirements.
For example, Dubai applies municipality charges linked to commercial tenancy, while signage must comply with local municipal regulations and obtain the necessary approvals before installation.
Work Permits and Labour Compliance
Every expatriate employee must hold a valid MOHRE work permit sponsored by the employer.
Businesses should ensure that:
Failure to maintain valid employment records can result in administrative penalties, hiring restrictions, and compliance issues during inspections.
Sector-Specific Regulatory Requirements
Many UAE mainland business activities require approvals from specialist regulators in addition to a trade licence. Depending on the nature of the business, companies may need to obtain sector-specific licences, renew approvals regularly, submit regulatory reports, and comply with ongoing operational standards.
The exact compliance requirements vary by industry. Businesses should confirm the latest licensing and reporting obligations with the relevant regulatory authority before commencing or expanding operations.
|
Sector / Activity |
Primary Regulator |
Key Compliance RequirementsKey Compliance Requirements |
|
Banking and Financial Services |
Central Bank of the UAE (CBUAE) |
Banking licence, capital adequacy requirements, AML/CFT compliance, regulatory reporting |
|
Insurance and Reinsurance |
CBUAE Insurance Supervision |
Insurance licence, solvency requirements, prudential reporting, ongoing regulatory compliance. Insurance businesses in DIFC and ADGM are regulated separately by the DFSA and FSRA. |
|
Healthcare and Medical Clinics |
Dubai Health Authority (DHA), Department of Health (DoH), Ministry of Health and Prevention (MOHAP) |
Facility licensing, healthcare professional licensing, medical liability insurance, and health data compliance |
|
Pharmacies and Pharmaceutical Businesses |
MOHAP and relevant emirate health authorities |
Pharmacy licence, pharmaceutical storage standards, controlled medicine compliance, regulatory inspections |
|
Legal Services |
Dubai Legal Affairs Department, Abu Dhabi Judicial Department |
Legal consultancy registration, lawyer licensing, and continuing professional development requirements |
|
Accounting and Audit Firms |
UAE Accountants and Auditors Association (UAAA), Ministry of Economy |
Professional registration, audit quality standards, record retention, and regulatory compliance |
|
Real Estate Brokerage |
Real Estate Regulatory Authority (RERA), Abu Dhabi Real Estate Centre (ADREC) |
Broker registration, professional certification, AML/CFT compliance, licence renewal |
|
Food and Beverage Businesses |
Dubai Municipality, Abu Dhabi Agriculture and Food Safety Authority (ADAFSA) |
Food safety approvals, hygiene inspections, HACCP compliance, and cold-chain management, where applicable |
|
Construction and Contracting |
Dubai Municipality and relevant emirate authorities |
Contractor classification, safety compliance, environmental approvals, periodic inspections |
|
Education |
Knowledge and Human Development Authority (KHDA), Abu Dhabi Department of Education and Knowledge (ADEK) |
Institutional licensing, curriculum approvals, teacher licensing, and regulatory reporting |
|
Tourism and Hospitality |
Dubai Department of Economy and Tourism (DET), Department of Culture and Tourism – Abu Dhabi (DCT Abu Dhabi) |
Tourism licences, hotel classification, hospitality compliance, food safety requirements |
|
Money Exchange and Remittance |
Central Bank of the UAE (CBUAE) |
Exchange licence, AML/CFT programme, customer due diligence (CDD), transaction monitoring and reporting |
Why Sector-Specific Compliance Matters
Holding a valid trade licence alone does not authorise businesses to operate in regulated industries. Many sectors require separate approvals, periodic inspections, and ongoing compliance with industry-specific regulations.
Failing to maintain these approvals may result in:
Businesses operating in regulated sectors should maintain a compliance calendar that tracks licence renewals, reporting deadlines, inspections, and mandatory certifications.
Economic Substance Regulations (ESR) and AML/CFT Compliance
Economic Substance Regulations (ESR)
The UAE Economic Substance Regulations apply to mainland companies that carry out specific relevant activities defined under the ESR framework.
Relevant Activities
A mainland company may fall within the ESR regime if it undertakes activities such as:
ESR Compliance Requirements
Where applicable, businesses must:
Holding companies, intellectual property businesses, and group service entities should pay particular attention to their ESR obligations.
Anti-Money Laundering (AML) and Counter-Terrorist Financing (CFT)
Mainland businesses classified as Designated Non-Financial Businesses and Professions (DNFBPs) must comply with the UAE’s AML/CFT legislation.
Common DNFBP categories include:
Key AML/CFT Obligations
Businesses within the scope of the AML framework should:
Failure to comply with AML obligations may result in significant regulatory penalties and enforcement action.
Need Help Staying Compliant with UAE Mainland Regulations?
Ensure your business meets every compliance requirement with expert guidance from IncHub.
Frequently Asked Questions
Does a UAE mainland company pay Corporate Tax at a different rate from a free zone company?
Yes. Mainland companies are generally subject to the standard UAE Corporate Tax regime, including 0% on taxable income up to AED 375,000 and 9% on taxable income exceeding AED 375,000. Unlike eligible Qualifying Free Zone Persons (QFZPs), mainland businesses cannot apply the 0% rate on qualifying free zone income.
What are the current Emiratisation requirements?
Private sector employers registered with MOHRE must meet Emiratisation targets based on their workforce size and, in some cases, the industry in which they operate. Businesses that fail to meet applicable targets may be required to make financial contributions, while fake Emiratisation practices can result in substantial penalties.
Has the Wage Protection System (WPS) deadline changed?
Yes. From 1 June 2026, private sector employers must credit employee salaries by the 1st day of the following month under the updated WPS rules. Employers should review their payroll schedules to ensure compliance with the revised deadline.
What are the GPSSA contribution rates?
Contribution rates depend on when the UAE national employee joined the pension system.
For employees registered before 31 October 2023, employers generally contribute 12.5%, while employees contribute 5%.
For eligible employees joining from 31 October 2023 onwards, employers generally contribute 15%, and employees contribute 11%, subject to the applicable GPSSA rules.
Is medical insurance mandatory for mainland employees?
Yes, in Dubai and Abu Dhabi, employers are required to provide medical insurance for eligible employees in accordance with local health regulations. Other emirates continue to expand mandatory health insurance requirements, so businesses should verify the latest rules with the relevant health authority.
Who regulates insurance companies in the UAE?
Insurance companies are regulated by the Central Bank of the UAE (CBUAE). Insurance businesses operating in the Dubai International Financial Centre (DIFC) and Abu Dhabi Global Market (ADGM) are regulated separately by the Dubai Financial Services Authority (DFSA) and the Financial Services Regulatory Authority (FSRA), respectively.
Sources
Federal Decree-Law No. 47 of 2022 on Corporate Tax — FTA
Federal Decree-Law No. 8 of 2017 on VAT — FTA
Federal Decree-Law No. 33 of 2021 — UAE Labour Law — MOHRE
Federal Decree-Law No. 57 of 2023 on Pension and Social Security — GPSSA
Cabinet Decision No. 49 of 2022 on Emiratisation Targets — MOHRE
Ministerial Decision No. 455 of 2023 — Emiratisation for 20-49 employee companies
Cabinet Decision No. 43 of 2025 — Fake Emiratisation Penalties
Ministerial Resolution No. 340 of 2026 — WPS (effective 1 June 2026)
Dubai Health Insurance Law No. 11 of 2013 — DHA
Federal Decree-Law No. 6 of 2025 — CBUAE and Insurance
Cabinet Decision No. 58 of 2020 on UBO
Cabinet Resolution No. 57 of 2020 on ESR — FTA
IncHub UAE Mainland Company Services
