Securing your trade license is a major milestone, but it marks the beginning, not the end, of your legal obligations in the UAE. To maintain your company's good standing and avoid penalties, you must adhere to a schedule of annual compliance requirements. These tasks are mandatory and ensure your business operates in line with federal and local regulations. Neglecting these responsibilities can result in hefty fines, suspension of your trade license, and complications with visa renewals or banking facilities, disrupting your business operations.
Your annual compliance checklist should include several key items. The most fundamental is the timely renewal of your Trade License, which often requires a valid office lease agreement (like an Ejari in Dubai). Additionally, businesses must submit their annual Economic Substance Regulations (ESR) notification and report if applicable, and maintain and update their Ultimate Beneficial Owner (UBO) register. For many companies, preparing and submitting an audited financial statement is also mandatory. Finally, with the introduction of Corporate Tax, businesses must ensure they are registered with the Federal Tax Authority and are prepared for annual tax filing, making ongoing bookkeeping and financial management more critical than ever.