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Startup Roof

Knowledge base

UAE founder answers, sourced.

Short, general answers with the official source for each. Not legal or tax advice: rules change, so check the source or a qualified adviser.

  • Tax

    UAE corporate tax: the headline rates

    • Applies to financial years starting on or after 1 June 2023.
    • 0% on taxable income up to AED 375,000; 9% on taxable income above AED 375,000 (Ministry of Finance).
    • The Federal Tax Authority (FTA) handles registration and returns.

    Sources: u.ae: Corporate tax · FTA: Cabinet Decision No. 116 of 2022

  • Tax

    Small Business Relief (corporate tax)

    • Resident persons with revenue of AED 3,000,000 or less in the current and all previous tax periods can elect to be treated as having no taxable income.
    • Once revenue exceeds AED 3,000,000 in any period, the relief can no longer be elected.
    • Qualifying Free Zone Persons and members of large multinational groups cannot elect it.
    • Check the FTA page for the tax periods the relief currently covers.

    Source: FTA: Small Business Relief

  • Tax

    When to register for VAT

    • Mandatory for UAE-resident businesses when taxable supplies and imports exceed AED 375,000 in the past 12 months, or are expected to within the next 30 days.
    • Voluntary registration is possible above AED 187,500 of taxable supplies, imports or taxable expenses, which helps start-ups with costs but no turnover yet.
    • Non-resident businesses making taxable supplies in the UAE may need to register regardless of value.

    Sources: FTA: VAT registration · Ministry of Finance: VAT

  • Data and privacy

    Personal data protection (PDPL)

    • Federal Decree-Law No. 45 of 2021 governs personal data processing in the UAE.
    • Free zones such as DIFC and ADGM have their own data protection regimes.
    • If you collect customer data, publish a privacy notice and collect only what you need.

    Sources: u.ae: Data protection laws · UAE Legislation: Decree-Law 45 of 2021

  • Hiring

    Emiratisation targets

    • Private-sector establishments with 50 or more employees have annual Emiratisation targets for skilled roles.
    • Check the official page for the current targets and which companies are covered.

    Source: u.ae: Employing Emiratis in the private sector

  • Setup and banking

    Company setup and business banking

    • Compare mainland and free zone licences by where you will sell and what activity you need.
    • Banks will ask for licence, ownership and activity documents; prepare them before applying.

    Source: Startup Roof guide (sources inside)

  • Funding and readiness

    Funding is optional

    • Many good businesses stay customer-funded. Capital is the optional sixth stage of the founder journey.
    • Use the readiness quiz to see which stage you are at before thinking about investors.

    Source: Readiness quiz

  • Sales and finance

    Know your runway and break-even

    • Runway = cash in the bank ÷ monthly net burn.
    • Break-even units = fixed costs ÷ (price − variable cost per unit).

    Source: Free founder tools

Official sources checked 12 October 2026. General information, not legal, tax or investment advice.

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