Starting or running a UAE company comes with its own vocabulary — licences, jurisdictions, visa types, and compliance terms. This glossary explains the words you will come across, in plain English. If anything here applies to your setup and you want specifics for your case, message us on WhatsApp and we will map it to your activity.
Setup Routes Free Zone A free zone is a designated business area in the UAE with its own licensing authority. You get 100% ownership, a simpler setup path, and packaged options for workspace and visas. It works best for international, remote, or flexible business models.
Mainland A mainland company is a standard UAE company licensed by the emirate's economic department. It can trade across the whole UAE, sell directly to onshore clients, open a shop, hire staff, and work with government. It is the route to choose when you need broad onshore access.
Offshore An offshore company is UAE-registered for international business only. You can hold assets, invoice globally, and protect intellectual property, but you cannot sell inside the UAE or sponsor residence visas through it.
Jurisdiction Jurisdiction is the legal zone your company is registered under — a specific free zone authority or a mainland economic department. Your jurisdiction decides your cost, allowed activities, visa rules, and where you are permitted to trade.
Dual Licence A dual licence lets certain free zone companies also hold a mainland licence, so they can trade onshore without setting up a separate company. Availability depends on the free zone and the activity.
Licensing & Documents Trade Licence A trade licence is the official permit that lets your company operate legally in the UAE. It lists your approved business activities and must be renewed every year.
Commercial Licence A commercial licence covers trading activities — buying, selling, importing, and exporting goods.
Professional Licence A professional licence covers service-based activities that rely on expertise, such as consulting, IT, design, or marketing.
Industrial Licence An industrial licence covers manufacturing and production activities, including processing raw materials and assembling goods.
Business Activity Your business activity is the specific work your licence permits you to do. The UAE has thousands of listed activities, and the ones you choose affect your licence type, your cost, and any extra approvals you may need.
Memorandum of Association (MOA) The MOA is the founding legal document that sets out your company's ownership, structure, and activities. It is prepared as part of incorporation.
Incorporation Certificate The incorporation certificate is the official proof that your company legally exists. It is issued once your formation is approved.
Establishment Card An establishment card, also called an immigration card, registers your company with UAE immigration. You need it before you can apply for employee or investor visas.
Flexi-desk A flexi-desk is a shared or hot-desk workspace offered by many free zones. It satisfies the physical-address requirement for your licence at a lower cost than a private office.
Authorities Free Zone Authority A free zone authority is the body that licenses and regulates companies inside its zone, for example IFZA, Meydan Free Zone, or RAKEZ. Each one has its own rules, costs, and allowed activities.
DET / DED DET (Dubai Economy and Tourism, previously the DED) is the government department that issues and regulates mainland trade licences in Dubai. Other emirates have their own equivalents.
Federal Tax Authority (FTA) The FTA is the UAE government body that manages tax. You register with the FTA for VAT and corporate tax, and file your returns through it.
Visas Residence Visa A residence visa lets you legally live and work in the UAE. It is usually tied to your company or free zone and is the standard route for owners and employees.
Investor Visa An investor visa, sometimes called a partner visa, is a residence visa issued to a company owner or shareholder based on their stake in a UAE business.
Employment Visa An employment visa is a residence visa your company sponsors for a staff member, linked to a labour contract.
Golden Visa The Golden Visa is a 5 or 10-year UAE residence visa that does not need a company sponsor. It is available to investors, entrepreneurs, specialists, and outstanding students.
Family Visa A family visa, also called a dependent visa, lets you sponsor your spouse, children, and parents once you hold a residence visa and meet the income requirements.
Entry Permit An entry permit is the temporary document that allows you to enter the UAE to begin your residence visa process. It is issued before the visa is stamped.
Emirates ID The Emirates ID is the official identity card for everyone living in the UAE. You need it for banking, tenancy, and most government services, and it is issued as part of your residence visa.
Medical Fitness Test The medical fitness test is a required health check for residence visa applicants. It must be done in person in the UAE.
Visa Quota Your visa quota is the maximum number of visas your licence allows. It depends on your jurisdiction, your workspace, and your licence type.
Banking Corporate Bank Account A corporate bank account is a business account in your company's name, needed to receive payments and run operations. Approval depends on the bank and your business profile.
Know Your Customer (KYC) KYC is the verification process banks use to confirm who you are and how your business operates before they open an account.
Minimum Balance The minimum balance is the amount a bank requires you to keep in your account. Falling below it can trigger monthly fees.
Tax & Compliance Corporate Tax Corporate tax is the UAE's 9% tax on business profits, in effect since 2023. Most companies must register and file a return, even when no tax is due.
Value Added Tax (VAT) VAT is a 5% tax on most goods and services. Registration becomes mandatory once your taxable turnover passes AED 375,000 a year.
Ultimate Beneficial Owner (UBO) The UBO is the real person who ultimately owns or controls a company. UAE companies must register their UBO details with the authorities.
Anti-Money Laundering (AML) AML refers to the rules and procedures businesses must follow to prevent money laundering. Certain activities are required to keep registered AML processes in place.
Economic Substance Regulations (ESR) ESR requires some UAE companies to show they carry out real activity in the country that matches the income they report.
Ongoing Services PRO Services PRO (Public Relations Officer) services handle your government paperwork in person — visa stamping, labour cards, and licence changes — so you do not have to.
Local Sponsor / Local Service Agent A local sponsor or local service agent is a UAE national involved in certain mainland setups. Most activities now allow 100% foreign ownership, but some still require an agent to deal with government departments.
Trademark Registration Trademark registration protects your brand name and logo in the UAE through the Ministry of Economy, stopping other businesses from using them.
Licence Renewal Licence renewal is the yearly process of extending your trade licence so your company stays legal. Missing the deadline can lead to fines.
