Awareness of business laws

The UAE has several regulations in place for smooth and fair conducting of businesses. As a responsible entrepreneur, you are obliged to comply with laws that

• govern your business
• protect labour rights, consumer rights and intellectual property rights
• protect health and environment and ensure safety
• govern the free zone in which your business is set up in.

This page provides an overview of commercial regulations that govern the business enterprises and activities in the UAE, in terms of formation, practice and application.

The Economic Substance Regulations

Business regulations related to mainland companies

The UAE Federal Decree Law no. 32 of 2021 on Commercial Companies, applies on any economic entity which practice any commercial, financial, industrial, agricultural, real estate or other kinds of economic activity on the mainland. 

Article 4 of the Decree Law above mentions companies that are exempt from its provisions.

Related links:

• eLaws - Legislations Portal of the Ministry of Justice.

Business regulations related to free zone companies

Your business will be governed by the free zone authority in which your business is set up and in some cases might be additionally governed by another government entity.

Specific laws relating to the type of business activity you conduct will also govern your business.

FAQs

What laws apply to businesses in the free zones?

General business/commercial laws except the Federal Decree Law no. 32 of 2021 on Commercial Companies apply.

In addition, your business shall be governed by laws relating to your specific business activity, in terms of practice, observance of property rights, QHSE compliance and those of the respective free zone authorities.

Law on Bankruptcy

Business bankruptcy in the UAE is governed by Federal Law by Decree No. 9 of 2016 on Bankruptcy (available in Arabic) which came into force on December 2016. The law provides a legal framework to help distressed companies in the UAE to avoid bankruptcy and liquidation through different mechanisms which include:

• consensual out-of-court financial restructuring
• composition procedures
• financial restructuring
• the potential to secure new loans under terms set by the law
• conversion to declaration of bankruptcy and liquidation of the debtor’s assets.

The law does not apply to natural individuals. It applies to:

• companies governed by the Commercial Companies Decree Law
• companies which are not established under the Commercial Companies Law and which are wholly or partly owned by the federal or local government, stipulating that Federal Law by Decree No. 9 of 2016 on Bankruptcy applies
• companies and establishments in the free zones that are subject to the provisions of Federal Law No. 8 of 2004 on Financial Free Zones and which are not governed by particular provisions regulating protective composition procedures, financial restructuring and/or bankruptcy
• any individual who is a trader as defined in the Commercial Transactions Law (Available in Arabic only).
• licensed civil companies carrying out professional activities.

The law aims to increase business stability in the UAE and investors’ confidence in the UAE market.

Amendments on Bankruptcy Law:

• Federal Decree Law No. 21 of 2020 amending some provisions of the Bankruptcy Law (Available in Arabic)
• Federal Decree Law No. 23 of 2019 amending some provisions of the Bankruptcy Law (Available in Arabic).

Laws and policies related to online businesses

Laws that apply on all businesses

General

• Federal DecreeLaw No. 34 of 2021 on Combatting Rumours and Cybercrimes (available in Arabic only)
• Commercial Transactions Law, amended by Federal Decree Law No.14 of 2020 Amending Certain Provisions of the Federal Law No.18 of 1993 concerning the Commercial Transactions Law 
• Federal Law No.19 of 1916 on Combating Commercial Fraud
• Federal Law No. 15 of 2020 on Consumer Protection

Find out more laws regulating the economic sector in the UAE- Ministry of Economy

Laws concerning recruitment and employment - Ministry of Human Resources and Emiratisation

• The UAE Labour Law 
• Resolutions and circulars 
• International agreements 

The Central Bank of the UAE

• Laws and regulations

Laws concerning private security companies - Ministry of Interior

• Federal Law No. 37 of 2006 concerning private security companies
• Cabinet Resolution No. 33 of 2008 concerning application licensing fees for private security companies
• Ministerial Resolution No. 557 of 2008 concerning the executive regulations of private security companies law

Laws from Securities and Commodities Authority

• Federal Law No. 4 of 2000 concerning the Emirates Securities & Commodities Authority and market

Check more regulations from Securities and Commodities Authority

Health, environment and safety regulations

• International agreements - Ministry of Human Resources and Emiratisation
• Laws and legislation - Ministry of Climate Change and Environment
• Rules and regulations - Federal Authority for Nuclear Regulation
• Environment laws - Environment Agency, Abu Dhabi

 Taxation laws:

• Federal Decree Law No. 7 of 2017 on Excise Tax

• Federal Decree-Law No. (8) of 2017 on Value Added Tax

• Federal Law by Decree No. 13 of 2016 Concerning the establishment of the Federal Tax Authority

View more tax laws on the website of Federal Tax Authority.