Home / Post-Formation Compliance

The licence is issued.
The clock has started.

Four obligations begin the day your UAE company is licensed. None are optional. Each one carries money, and the first deadline is 60 days away.

60 daysTo create the UBO register
AED 108,000Per Emirati not appointed against the 2025 target
85%Of wages must clear WPS on time
AED 320Basic health insurance package, per year
Ask a consultant Read the detail
01
What starts on day one

Four obligations nobody mentions at handover

These are easy to miss because nothing arrives in the post. There is no reminder. The deadline runs from the date on your licence.

UBO register — Create a Beneficial Owner Register, a Partners or Shareholders Register and nominee board member data within 60 days of registration. Required of every legal person licensed in the UAE, including non-financial free zones.
Emiratisation — If you reach 50 employees, you owe 2% annual growth of Emiratis in skilled positions. At 20 to 49 employees in one of 14 sectors, you must recruit at least one UAE national. MOHRE measures on 30 June and 31 December.
Wage Protection System — Register before your first payroll run. You are compliant if at least 85% of total wages due clear within the specified timeframe. You are late if wages are not paid within the first 15 days of the due date.
Employee health insurance — Mandatory nationwide since 1 January 2025, in all seven emirates. The employer buys it, and it is a prerequisite for issuing or renewing a residence permit.
Tax registration — Corporate tax registration, and VAT registration if you are over the threshold. Both belong on the same handover list as the registers.
Renewals and audit — Diarise licence, establishment card and lease renewals. Engage an auditor if your zone requires it, or if you intend to claim Qualifying Free Zone Person status.
02
Obligation, deadline, penalty

What each one costs if you miss it

Every figure below is the published amount. UBO penalties run on three strikes: notice, then a fine, then double. On the third violation the Registrar may suspend the trade licence and close the premises until the matter is paid and corrected.

ObligationDeadlinePenalty if missed
Create and keep the UBO registerWithin 60 days of registrationNotice with 30 days, then AED 50,000, then AED 100,000
Create the partners or shareholders registerWithin 60 days of registrationAED 50,000, then AED 100,000
Update the UBO registerOn any changeNotice with 15 days, then AED 15,000, then AED 30,000
Update the shareholder registerWithin 15 days of a changeNotice with 30 days, then AED 15,000, then AED 30,000
Provide data requested by the RegistrarWithin 14 daysNotice with 30 days, then AED 15,000, then AED 30,000
Name a UAE-resident authorised discloserWith the registerNotice with 30 days, then AED 10,000, then AED 20,000
Provide manager or nominal director dataOn requestNotice with 30 days, then AED 40,000, then AED 80,000
Emiratisation target, 2024Measured 30 June and 31 DecemberAED 96,000 per Emirati not appointed, collected from January 2025
Emiratisation target, 2025Measured 30 June and 31 DecemberAED 108,000 per Emirati not appointed, collected from January 2026
Genuine Emiratisation, not a paper hireOngoingUp to AED 500,000 for circumventing the targets, plus referral
Pay wages through WPSWithin the first 15 days of the due dateService suspension on day 17; AED 1,000 per worker capped at AED 20,000 on a repeat within 6 months
Employee health insuranceBefore any visa applicationNo residence permit issued or renewed without it
Hand the registers to the liquidatorWithin 30 daysNotice with 30 days, then AED 5,000, then AED 10,000
03
Emiratisation

Check your headcount and your sector

At 50 or more employees you owe 2% annual growth of Emiratis in skilled positions, building to 10% by 2026. Between 20 and 49 employees you are in scope only if you operate in one of 14 sectors. Under 20 employees you are not currently targeted. Over 12,000 companies were notified in the 20 to 49 bracket.

The 14 sectors — Information and communications. Finance and insurance. Real estate. Professional and technical activities. Administrative and support services. Education. Healthcare and social work. Arts and entertainment. Mining and quarrying. Transformative industries. Construction. Wholesale and retail. Transportation and warehousing. Accommodation and hospitality.
Three sectors catch most companies — Real estate, professional and technical activities, and administrative and support services. That covers brokerages, consultancies and corporate service providers. If you cross 20 employees, the obligation starts.
The measurement dates — MOHRE measures at 30 June and 31 December, and collects the following January. Diarise both.
Nafis first — Nafis offers salary support and training incentives for genuine hires. That is usually cheaper than the contribution.
Instalments exist — Contributions are charged per unfilled position and escalate each year. Instalment plans are available by agreement with MOHRE.
Never structure a paper hire — MOHRE tests for a real role, a real salary through WPS and real attendance. Fictitious Emiratisation carries fines up to AED 500,000 and referral. It is worse than paying the contribution.
04
Payroll and cover

WPS and health insurance, before the first payday

WPS rests on Ministerial Resolution 598 of 2022 and its amendments, updated by a new WPS decision in June 2026. Health insurance became mandatory nationwide on 1 January 2025.

The 85% test — An establishment is compliant if it transfers at least 85% of total wages due within the specified timeframe. That threshold is the operative number.
The escalation — Day 3 brings a notice and alert from MOHRE. Day 10 brings a second notice. Day 17 suspends services to the establishment, which blocks new work permits. A repeat violation within 6 months costs AED 1,000 per worker, capped at AED 20,000.
Suspension bites first — The service suspension arrives before the fine. Losing the ability to issue work permits mid-project is the expensive part. Set WPS up before the first payroll run. WPS processes over AED 37 billion in wages monthly.
Monitoring is risk-based — The June 2026 decision formalised existing procedure: electronic monitoring first, then notifications, then time to rectify, then administrative measures. Weighting is toward labour-intensive sectors with large workforces.
Insurance basics — The basic package is AED 320 per year and covers ages 1 to 64. Anyone over 64 needs a medical disclosure form and recent medical reports. There is no waiting period for chronic illness.
Where to buy, and who is exempt — Buy through the DubaiCare Network, the Insurance Pool website or app, accredited insurers, or business service centres. Permits dated before 1 January 2025 are exempt until renewal. Abu Dhabi and Dubai were already mandatory under DOH and DHA/ISAHD; the other five emirates joined the federal scheme on 1 January 2025.
05
Handover checklist

Work through this in your first 60 days

Print it, tick it, keep it with the licence. Each line is either done or it is a deadline.

ItemWhen
UBO register created, chain traced to natural personsWithin 60 days of registration
Partners or shareholders register created and lodgedWithin 60 days of registration
UAE-resident authorised discloser namedWith the register
Process in place to update within 15 days of any ownership changeNow, then ongoing
Corporate tax registrationNow
VAT registration if over the thresholdNow
goAML registration if you are a DNFBPNow
Headcount and sector checked against the Emiratisation rulesNow, then at every renewal
Next Emiratisation measurement date diarised30 June and 31 December
WPS liveBefore the first payroll run
Employee health insurance in placeBefore any visa application
Auditor engaged if the zone requires it, or if claiming QFZPPer your zone
Licence, establishment card and lease renewals diarisedNow
07
FAQ

Common Questions.

It runs from registration. The register must exist within 60 days, and you must also keep a partners or shareholders register and data on any nominee board member, meaning any director acting on another person's instructions.
The natural person who ultimately owns or controls the entity through direct or indirect ownership of 25% or more of capital, or 25% or more of voting rights, including through a chain of ownership, or who exercises ultimate effective control by any other means. Trace corporate shareholders up to natural persons; a corporate shareholder is never itself the UBO. Where no natural person meets the test, you step down to senior management.
Yes. Cabinet Decision 109 of 2023 covers every legal person licensed or registered in the UAE, including non-financial free zones. DIFC and ADGM run their own separate regimes. The obligations and penalties are federal and uniform, but the submission route differs: DET, each emirate's DED and each free zone run their own portal and form.
Not yet. Companies under 20 employees are not currently targeted. At 20 to 49 employees you come into scope if you operate in one of the 14 listed sectors. At 50 or more employees you owe 2% annual growth of Emiratis in skilled positions. Recheck your headcount at every renewal.
AED 96,000 for each Emirati not appointed against the 2024 target, collected from January 2025, and AED 108,000 for each Emirati not appointed against the 2025 target, collected from January 2026. It is charged per unfilled position and escalates each year.
No, and clients conflate them constantly. Employee health insurance is medical cover the employer buys, with a basic package at AED 320 per year, and it is a prerequisite for issuing or renewing a residence permit. WPP, ILOE and WHI are three separate MOHRE schemes.

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