Business regulations

This page lists the general business laws applicable in the UAE and laws that are specific to the industry.

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

The Economic Substance Regulations (ESR) is in line with UAE’s commitment to the international tax cooperation and transparency. The regulations require UAE's onshore and free zone companies and other business forms that carry out any of the 'Relevant Activities' listed in the regulations' framework to maintain an adequate ‘economic presence’ in the UAE relative to the activities they undertake 'Economic Substance Test.' Find more information about the 'Economic Substance Regulations' on the website of Ministry of Finance.

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 that apply on all businesses

General

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 Central Bank of the UAE

Laws and regulations

Laws concerning private security companies - Ministry of Interior

Laws that regulate securities and commodities

Check 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:

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

Updated on 09 Aug 2023

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