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Accounting Services Needed After Company Setup in Dubai

Accounting Services Needed After Company Setup in Dubai

Once you’ve secured your business license, the next step is to establish proper accounting systems to ensure compliance with UAE regulations and support the financial health of your enterprise. Here’s an overview of the accounting services essential for newly licensed businesses, tailored to their specific needs:

1. Yearly Bookkeeping and Accounting

Whether you’re managing a small startup or a growing enterprise, yearly bookkeeping is critical for tracking income and expenses, monitoring cash flow, and preparing financial statements. For businesses in the UAE, having an organized record of transactions is especially important, as it ensures compliance with government reporting requirements and supports informed decision-making. This service acts as the backbone of your business’s financial management, keeping operations smooth and audit-ready.

2. VAT Registration

For businesses selling taxable goods or services, VAT registration is an immediate priority after crossing the mandatory threshold of AED 375,000 in annual taxable turnover. Voluntary registration is also available for businesses with turnover exceeding AED 187,500, making it a viable option for startups aiming to establish credibility. Registering for VAT on time not only helps avoid penalties but also ensures you can issue VAT-compliant invoices and reclaim VAT on eligible expenses, giving your business a competitive edge.

3. VAT Compliance and Filing

Once registered, businesses must stay compliant by charging 5% VAT on taxable products and services and issuing tax invoices with their Tax Registration Number (TRN). This is particularly significant for businesses dealing in goods or services with special VAT rules, such as those eligible for 0% VAT or exemptions. Timely VAT filing ensures that businesses accurately report their collected and recoverable VAT, maintaining trust with clients and regulatory authorities alike. Non-compliance can lead to penalties, making professional accounting support essential.

4. Corporate Tax Registration and Compliance

With the UAE introducing corporate tax, all businesses, regardless of size or profitability, must register with the Federal Tax Authority and obtain a Corporate Tax Registration Number. For instance, a business generating AED 8 million in revenue with AED 2 million in expenses would face a 9% tax on profits exceeding AED 375,000. Corporate tax compliance is particularly vital for businesses aiming to expand or attract investors, as it demonstrates financial transparency and regulatory adherence. Timely registration and accurate reporting also help avoid penalties, which can reach AED 10,000 for late submissions.

5. Understanding Tax Exemptions and Rates

Many businesses in the UAE, especially those providing services internationally, can benefit from VAT exemptions or a 0% VAT rate under certain conditions. For example, if your business offers consulting services to clients outside the UAE, you may qualify for a 0% VAT rate, provided the services are unrelated to UAE-based real estate or assets. Properly understanding and documenting these exemptions can optimize your tax position while ensuring compliance with UAE VAT laws.

 

 

How Can Choose UAE Help

By aligning your accounting practices with these requirements, your business can establish a strong foundation for sustainable growth. Engaging professional accounting services ensures not only compliance but also better financial planning, allowing you to focus on building your business in the UAE’s competitive and thriving market. Choose UAE can assist you with all your accounting and taxation needs, offering tailored solutions to meet your business requirements. You can even schedule a free 30-minute consultation with our accounting experts to get started on the right path.

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