⚙️ Operations & Compliance (2025)

1. What Records Must Free Zone Companies Keep?

Financial records, contracts, and invoices for 7 years under UAE compliance rules.

2. How Does the 2025 Domestic Minimum Top-Up Tax (DMTT) Affect Free Zones?

DMTT ensures a 15% effective tax rate for MNEs with >€750M revenue under Pillar Two.

163. Are Free Zone Companies Subject to Labor Inspections?

Yes, but less frequent than mainland, ensuring UAE labor compliance.

164. Can Free Zones Store Hazardous Materials?

Only in zones like JAFZA with special approvals for UAE industrial businesses.

165. Is Business Insurance Mandatory in Free Zones?

No, but liability insurance is recommended for UAE Free Zone operations.

166. Can Free Zone Companies Use Crowdfunding?

Yes, if aligned with license activities and UAE financial regulations.

167. Are ESG Audits Required in Free Zones?

Voluntary but incentivized in zones like Masdar City for sustainable UAE businesses.

168. Can I Operate a Free Zone Company Remotely?

Yes, with virtual office setups in many UAE Free Zones.

169. Do Free Zones Require a Local Compliance Officer?

No, but hiring one simplifies UAE regulatory compliance.

170. What Are Penalties for Late VAT Filing in Free Zones?

Fines start at AED 3,000, escalating for repeated delays in UAE VAT compliance.