Forming a UAE company is the start of a relationship with a handful of authorities, each of which expects something from the company every year. Meeting those obligations keeps the company in good standing, able to trade, bank and sponsor visas. Missing them does real damage. None of it is difficult when it is tracked and handled on time, and Cosmos does exactly that. This article sets out the main obligations a UAE company faces.

A UAE trade licence is valid for a fixed period, normally one year, and must be renewed before it expires. The licence renewal is the most fundamental obligation: an expired licence can mean fines that accumulate, the company being unable to operate, and knock-on problems with its bank and its visas. Cosmos tracks the renewal date and handles it well ahead of time.

The UAE applies a federal corporate tax on business profits. The practical consequences for a company are twofold. First, the company must register for corporate tax with the Federal Tax Authority. Second, it must file an annual corporate tax return, and this obligation applies even in a year where the company's tax works out at nil; filing is required regardless of whether tax is payable. Rates, thresholds and the detail of how the tax applies are matters Cosmos will confirm for your specific company, and where your situation needs a considered tax opinion, Cosmos will introduce you to a qualified tax adviser. What Cosmos handles directly is the registration and the filing.

The UAE also has value-added tax, or VAT, on goods and services. A company must register for VAT once its taxable turnover passes the registration threshold, and there is also a lower voluntary registration threshold. A VAT-registered company charges VAT, files regular VAT returns, and pays what is due. Cosmos advises whether and when your company needs to register, and handles the returns.

The UAE has economic substance rules that apply to companies carrying on certain defined activities. Where they apply, a company must file an economic substance notification and, if it is within scope, an economic substance report demonstrating that it has genuine substance in the UAE in relation to that activity. Not every company is affected, but those that are must take it seriously. Cosmos identifies whether your company is in scope and handles the filings.

UAE companies are required to maintain a register of their ultimate beneficial owners, the real people who ultimately own or control the company, and to keep it current. When ownership changes, the record must be updated. Cosmos maintains this for the companies it administers.

UAE companies are expected to keep proper accounting records, and corporate tax has made well-kept records more important than ever, because they are the basis of the tax return. Some setups, and some free zones, additionally require the company to prepare audited financial statements each year. Cosmos handles the bookkeeping and accounting and, where an audit is required, arranges and manages it. See Accounting and bookkeeping and Audit and assurance.

Where the company sponsors residency visas, the establishment card and each residency visa have their own expiry dates and must be renewed. A lapsed card or visa carries fines and disrupts the people who depend on it. Cosmos tracks these alongside the company's other deadlines.

The consequences of missing UAE compliance deadlines are real and they compound. Fines accrue and grow. A company can be blocked from renewing its licence, or have its licence suspended, until matters are put right. Visa sponsorship can be affected. Bringing a lapsed company back into good standing is slower and more expensive than simply maintaining it would have been. Compliance is not the costly path; falling behind is.

This is one of the strongest reasons to keep Cosmos involved after formation. The platform records every deadline that applies to your specific company, licence renewal, corporate tax, VAT, economic substance, the establishment card, each visa, and tracks them all. Well before each deadline, you receive a clear reminder telling you what is due, what is needed from you, and by when. Where a filing needs an accountant or auditor, Cosmos handles it or arranges it in good time. You never have to hold the UAE compliance calendar in your head.