A person employed by another ਯੂਏਈ organisation may be able to establish a business or obtain a freelance permit, depending on:
The person should not:
Banks may examine:
A home-managed business may need to demonstrate that it is genuine and operational.
Useful supporting evidence includes:
KPM Global Services can assist with preparing the application, but the bank makes the final decision.
Online businesses may need:
A ਲਾਇਸੰਸ should be selected with the intended sales channels in mind. Some marketplaces may require activities or product permissions beyond a basic digital-services ਲਾਇਸੰਸ.
A small or home-managed company is not automatically exempt from ਯੂਏਈ ਕਾਰਪੋਰੇਟ ਟੈਕਸ.
ਯੂਏਈ companies and other juridical persons generally fall within the ਕਾਰਪੋਰੇਟ ਟੈਕਸ framework and must meet applicable registration, accounting and filing requirements.
A Free Zone company does not receive automatic 0% taxation on every type of income. Qualifying Free Zone Person treatment depends on statutory conditions.
A natural person conducting business ਯੂਏਈ ਵਿੱਚ is subject to a different scope. Under current rules, ਕਾਰਪੋਰੇਟ ਟੈਕਸ registration can become relevant where total turnover from business or business activities exceeds AED 1 million in a Gregorian calendar year, subject to the law and exclusions.
The legal form should therefore be identified before applying any tax threshold or rate.
Eligible ਯੂਏਈ-resident persons may be able to elect for Small Business Relief where the statutory conditions are satisfied.
Current FTA information identifies a revenue threshold of AED 3 million for the relevant tax period and previous tax periods, subject to the applicable rules and relief period. FTA Small Business Relief guidance
This relief is not the same as:
A home-based company follows the same VAT principles as other businesses.
Mandatory VAT registration generally applies where taxable supplies and imports exceed AED 375,000 under the applicable historical or expected-turnover tests.
Voluntary registration may be available where taxable supplies, imports or qualifying expenses exceed AED 187,500.
The business should monitor:
A home-based business should maintain proper financial records from the first transaction.
Records may include:
Personal and business expenses should be separated. A dedicated business bank account and proper accounting system make this considerably easier.