UAE businesses face compliance obligations across multiple regulators — the FTA, Ministry of Human Resources, free zone authorities, and AML supervisory bodies. A compliance audit by Essence identifies gaps, quantifies penalty exposure, and guides remediation before regulators conduct their own reviews — saving far more than it costs.
UAE businesses are subject to compliance obligations across tax, labour, financial crime, free zone rules, and accounting standards. Essence covers every layer.
Independent review of your VAT and Corporate Tax compliance position. Covers: VAT registration status, output tax accuracy, input tax recovery, reverse charge obligations, record retention (5-year VAT, 7-year CT), VAT return reconciliation to accounting records, CT registration and return accuracy, transfer pricing documentation, and voluntary disclosure obligations. Identifies FTA exposure before an FTA audit does.
Anti-Money Laundering compliance review for UAE Designated Non-Financial Businesses and Professions (DNFBPs) — including accounting firms, real estate agents, lawyers, and dealers in precious metals. Reviews your AML policy, Customer Due Diligence (CDD) procedures, Beneficial Owner (BO) register, transaction monitoring, goAML reporting, sanctions screening, and staff training records against UAE AML Law requirements.
Review of compliance with UAE Labour Law (Federal Decree-Law No. 33 of 2021) and MOHRE regulations: WPS payroll compliance and payment timing, employment contract compliance, end-of-service gratuity calculations, annual leave entitlements, working hour limits, visa and labour card status, and female employee protections. WPS non-compliance results in company blacklisting — preventing new work permit applications.
Compliance review against your specific free zone authority requirements: licence renewal conditions, annual audit submission deadlines, share capital maintenance, registered agent obligations, physical presence requirements, visa quota compliance, and activity restrictions. Covers all major UAE free zones including JAFZA, DMCC, DAFZA, ADGM, DIFC, Dubai South, and RAKEZ.
Review of corporate governance compliance for UAE entities — board structure and meeting requirements, shareholder register maintenance, UBO (Ultimate Beneficial Owner) registration with the Ministry of Economy, related party transaction disclosure, dividend declaration procedures, and compliance with the UAE Commercial Companies Law (Federal Law No. 32 of 2021) or applicable free zone company regulations.
Review of financial reporting compliance with IFRS as required under UAE Corporate Tax law and free zone regulations: accounting policy review, financial statement presentation, disclosure completeness, revenue recognition under IFRS 15, lease accounting under IFRS 16, and financial instrument classification under IFRS 9. Identifies departures before external auditors or the FTA do.
Regulatory penalties in the UAE are significant and increasing. Understanding your exposure is the first step to managing it.
| Compliance Area | Violation | Penalty | Authority |
|---|---|---|---|
| VAT | Late VAT return filing (first offence) | AED 1,000 | FTA |
| VAT | Late VAT return filing (repeat) | AED 2,000 | FTA |
| VAT | Incorrect VAT return (under-declaration) | 50% of underpaid tax | FTA |
| VAT | Failure to issue tax invoice | AED 5,000 per invoice | FTA |
| Corporate Tax | Late CT registration | AED 10,000 | FTA |
| Corporate Tax | Late CT return filing | AED 500 – AED 20,000 | FTA |
| Corporate Tax | Failure to maintain records | AED 10,000 (first); AED 50,000 (repeat) | FTA |
| Labour Law | WPS non-compliance (salary delay) | Work permit ban + blacklisting | MOHRE |
| Labour Law | Failure to pay end-of-service gratuity | Employee claim + court costs | MOHRE / Courts |
| AML | Failure to implement AML programme (DNFBP) | AED 50,000 – AED 5,000,000 | Supervisory Authority |
| AML | Failure to file Suspicious Transaction Report | Criminal prosecution possible | Public Prosecution |
| UBO | Failure to register Ultimate Beneficial Owner | AED 100,000 – AED 1,000,000 | Ministry of Economy |
| Free Zone | Late audit submission to free zone authority | Fine + licence suspension | Free Zone Authority |
A structured, confidential process designed to give you a complete picture of your compliance position and a clear action plan to resolve any gaps.
We agree which regulatory areas to cover — FTA, labour, AML, free zone, governance, or all. Scope is tailored to your industry, business model, and known risk areas. Engagement letter confirmed before we start.
We review your regulatory filings, accounting records, payroll data, contracts, policies, and correspondence from regulatory bodies. Interviews with finance, HR, and operations staff to understand processes and identify gaps between policy and practice.
Transaction-level testing of key compliance areas — VAT on a sample of invoices, payroll against WPS records, customer due diligence files against AML requirements, board resolutions against company law obligations. Evidence-based, not just policy review.
All compliance gaps identified, risk-rated (Critical / High / Medium / Low), and quantified where possible with penalty exposure estimates. Findings discussed with management before the final report to verify facts and agree remediation approach.
Comprehensive compliance report with findings, root causes, regulatory references, and a prioritised remediation action plan. Where voluntary disclosures or regulatory notifications are required, Essence prepares and submits these on your behalf.
Compliance obligations in the UAE span multiple federal and emirate-level authorities. Essence monitors requirements across all of them.
Fixed-fee packages with no hidden costs. All include a written compliance report and remediation action plan.
VAT & Corporate Tax only
Tax + Labour + Free Zone + Governance
DNFBPs & regulated entities
TAN 30006266 — authorised to represent clients before the FTA and file voluntary disclosures. We can fix compliance gaps immediately, not just report them.
All compliance audit findings are strictly confidential. We work with management — not against them. Our objective is remediation, not exposure.
Unlike consultants who only identify gaps, Essence prepares voluntary disclosures, files regulatory notifications, and implements corrective accounting — end to end.
One team, one engagement — covering FTA, labour law, AML, free zone, and governance requirements. No need to coordinate multiple specialists.
A compliance audit by Essence identifies gaps across tax, labour, AML, free zone, and governance obligations — with a clear action plan to fix them. The cost of a compliance audit is a fraction of the penalties it prevents.
