🇦🇪 Annual Compliance — United Arab Emirates

Choosing a free zone based solely on price without checking the permitted activity list

Fix: Verify that your intended business activity is explicitly listed in the free zone's activity catalogue before applying. Adding activities later can cost AED 1,000–5,000 per activity and may not always be possible.

Assuming all free zone income is tax-free under the new corporate tax regime

Fix: Study the Qualifying Free Zone Person criteria carefully. Income from mainland customers, non-qualifying activities, or transactions with non-free-zone entities is taxed at 9%. Consult a UAE-registered tax adviser before relying on the 0% rate.

Waiting to open a bank account until after the licence is issued without preparing documentation

Fix: Start preparing your bank application — business plan, proof of income, expected transaction volumes, and source-of-funds documentation — while your licence application is being processed. Apply to at least 2–3 banks simultaneously.

Letting the trade licence lapse and losing visa status

Fix: Set calendar reminders at least 30 days before your licence renewal date. A lapsed licence can trigger visa cancellation, fines, and complications with your bank account. Budget for renewal fees annually.