A Memorandum of Association is the founding legal document of a UAE company, setting out ownership, share capital and governance terms with the relevant licensing authority. Key Takeaways The MOA is a statutory document, filed with the licensing authority, not a private agreement between shareholders. It covers ownership and share capital structure, naming shareholders and […]
FZE and FZCO are the two standard free zone company structures in the UAE, and the choice between them comes down almost entirely to how many shareholders the company has. Key Takeaways FZE stands for Free Zone Establishment, a structure built for a single shareholder, whether an individual or a single corporate entity. FZCO stands […]
End-of-service gratuity in the UAE is calculated on basic salary, not total salary, using a formula that changes once an employee passes five years of continuous service. Key Takeaways Gratuity applies after at least one year of continuous service. An employee who leaves before completing one year is not entitled to it under standard Labour […]
A UAE business credit score reflects how reliably a company pays its obligations, and it increasingly affects loan approval, supplier credit terms, and even how banks price a corporate account relationship. Key Takeaways Business credit scores are separate from personal credit scores, even for a sole shareholder, since the company is its own credit-reportable entity. […]
An escrow account holds funds with a neutral third party until agreed conditions are met, and in the UAE it is mandatory for off-plan property sales, not just an optional safeguard for cautious buyers. Key Takeaways An escrow account is not the same as a regular bank account. A licensed escrow agent holds the funds […]
UAE banks now scrutinise where a company’s money actually comes from, and a business that can’t clearly explain its source of funds is one of the most common reasons a corporate bank account gets delayed, frozen, or closed. Key Takeaways Source of funds and source of wealth are different questions. Source of funds asks where […]
A shareholders agreement sets out how a UAE company is actually run day to day, filling in the practical detail that a Memorandum of Association deliberately leaves out. Key Takeaways An MOA and a shareholders agreement are not the same document. The MOA is the statutory constitution filed with the authority; the shareholders agreement is […]
An external audit in the UAE checks whether a company’s financial statements are accurate, and it is mandatory for most free zone companies and many mainland companies, not an optional extra. Key Takeaways Audit and accounting are different services. Accounting produces the financial records; auditing independently verifies them. Most free zones require the audit to […]
DMCC is Dubai’s largest and most established free zone, built originally around commodities trading and now home to over 24,000 companies across trading, crypto, media and professional services. Key Takeaways DMCC stands for Dubai Multi Commodities Centre. It was created in 2002 to support commodities trade and has since grown into one of the world’s […]
A holding company owns shares in other companies rather than trading itself, and setting one up in Dubai is one of the more common ways founders and family businesses separate ownership from operational risk as they grow past a single entity. Key Takeaways A holding company does not trade. Its role is to own shares […]
