UAE for operators.
The UAE has several financial regulators. Onshore, the Central Bank (CBUAE) licenses banks, exchange houses, retail payment service providers, stored value facilities (SVFs) and payment-token firms. Its August 2026 register lists 25 national banks, 38 foreign banks, 38 retail payment service providers and 23 SVFs. Dubai's VARA regulates virtual assets in Dubai outside the DIFC and showed 57 active VASP licences on 8 October 2026. The DIFC (DFSA) and ADGM (FSRA) financial free zones run their own common-law regimes. A new Central Bank law (Federal Decree-Law No. 6 of 2025, in force 16 September 2025) brings platforms, dApps and protocols that facilitate financial activity inside the CBUAE perimeter and raises the maximum CBUAE penalty to AED 1 billion. Corporate tax is 9% on taxable income above AED 375,000, VAT is 5%, and qualifying free-zone income can be taxed at 0%. The FATF removed the UAE from its grey list on 23 February 2024, and the EU took it off its high-risk third-country list with effect from 5 August 2025.
Good for
- Holding and trading companies wanting 0% tax on qualifying free-zone income and 0% withholding tax
- Crypto businesses seeking a dedicated VASP licence (VARA, ADGM FSRA or DFSA), with a 57-firm VARA licensee base for counterparties
- Payment companies targeting the GCC through a CBUAE SVF or Retail Payment Services licence (Category IV from AED 100,000 capital)
- Founders needing 100% foreign ownership onshore or in a free zone, with fast licensing (Meydan says under 60 minutes; DMCC says 2-3 weeks)
- Operators needing a jurisdiction off both the FATF grey list and the EU high-risk list
Watch out
- Local bank accounts usually need an Emirates ID/residence visa for the signatory and full KYC; the CBUAE's 3-business-day target applies only to low-risk SMEs after due diligence
- Payments licences are capital-heavy at the top end: AED 15m for an SVF, up to AED 3m for Category I retail payments
- Unlicensed financial or virtual-asset activity now risks fines of AED 50,000-500 million plus imprisonment under Federal Decree-Law No. 6 of 2025, and VARA is fining unlicensed offshore exchanges
- Losing Qualifying Free Zone Person status means 9% corporate tax for five years; the de minimis allowance for non-qualifying revenue is small (5% / AED 5m)
- Crypto payments for goods and services must use CBUAE-approved payment tokens (Dirham Payment Tokens for merchants)
- UBO register changes must be filed within 15 days, with escalating fines
Company setup
Entity types. Mainland (onshore) LLC licensed by the emirate's economic department. Since Federal Decree-Law No. 26 of 2020 amended the Commercial Companies Law, foreign investors can own 100% of most mainland activities, except activities designated as having 'strategic impact'. Free-zone companies (FZ-LLC, FZCO, FZE) are set up in authorities such as DMCC, IFZA, Meydan and RAKEZ. DMCC says AED 50,000 share capital is the typical standard for a Dubai free-zone entity, and some free zones have no requirement; Meydan Free Zone says it has no paid-up capital requirement. The financial free zones (DIFC, ADGM) have their own common-law company regimes. Their minimum capital for non-regulated companies was not verified from a primary source.
Time to incorporate. Varies by authority. DMCC says the process takes 2-3 weeks from application to e-licence. Meydan Free Zone says it issues trade licences in under 60 minutes, with visa processing and bank account setup typically taking 5-7 working days. DIFC timelines were not verified from a primary source.
Local director. No general UAE-resident director requirement was confirmed in the sources reviewed. Meydan Free Zone says its setup is 100% digital and offers a non-resident licence. A UAE residence visa (needed for most local bank accounts) requires an in-person visit for the medical test and Emirates ID biometrics, per DMCC. Treat as unverified against each authority's rules.
The number of residence visas depends on the licence and office space (DMCC); Meydan says each licence supports up to six visas. UBO register: under Cabinet Resolution No. 109 of 2023 (in force 16 Nov 2023), mainland and commercial free-zone companies must keep a register of beneficial owners (25% ownership/control threshold) and file changes within 15 days. Fines run up to AED 100,000 for repeat failures; DIFC and ADGM have their own regimes. Economic Substance Regulations: Cabinet Decision No. 98 of 2024 (announced 14 Oct 2024) removed ESR reporting for financial years ending after 31 December 2022. Free-zone companies that want the 0% corporate tax rate must still show adequate substance in the free zone.
Sources: u.ae · dmcc.ae · meydanfz.ae · middleeastbriefing.com · mof.gov.ae · taxsummaries.pwc.com
Banking & EMI access
On paper the rules favour speed: the CBUAE's SME Market Conduct Regulation (4 April 2021) says opening an account for an SME should be completed within three business days. That applies only once the bank has done its financial-crime due diligence and the SME presents low ML/TF risk. In practice banks ask for the trade licence, memorandum of association, shareholder passports and visa pages, an Emirates ID copy, proof of address and often a business plan or due-diligence interview, per Meydan Free Zone.
That makes a UAE residence visa and Emirates ID for the signatory a common practical requirement. ADGM's SME banking sheet (dated March 2021) listed opening times of roughly 2-9 working days across e20, RAKBANK, Mashreq Neo, ADIB and ADCB, with delays possible depending on activity and background checks. Digital banks licensed by the CBUAE include Wio Bank and Zand Bank, both listed as national banks on the August 2026 CBUAE register; Zand also holds a VARA licence for virtual-asset custody.
Fintech account providers now hold CBUAE SVF/payment licences: Wise received final approval in October 2025 and Revolut in June 2026 (its products were not yet live at that date). No primary source quantifying de-risking of free-zone or foreign-owned companies was found.
Sources: centralbank.ae · meydanfz.ae · assets.adgm.com · centralbank.ae · newsroom.wise.com · revolut.com · vara.ae
EMI regime & enforcement
The UAE has no 'EMI' licence. Onshore payments licensing is split in two. (1) The Stored Value Facilities Regulation (Circular No. 6/2020, announced 3 Nov 2020) requires AED 15 million minimum paid-up capital plus eligible capital of at least 5% of customer funds, segregated or guaranteed float, and daily reconciliation.
Applicants must be UAE-incorporated (free zones allowed, financial free zones excluded). (2) The Retail Payment Services and Card Schemes Regulation (Circular No. 15/2021, in force 15 July 2021) has four categories. Category I covers account and instrument issuance, merchant acquiring, payment aggregation, domestic and cross-border transfers and payment token services, with minimum capital of AED 1.5m (AED 3m if monthly volume is AED 10m or more).
Category II covers the same services except payment token services (AED 1m/2m). Category III covers no cross-border transfers (AED 500k/1m). Category IV covers payment initiation and account information only (AED 100k).
Acquiring 20% or more of a licensee needs prior approval. Per the CBUAE Register (August 2026) there are 38 retail payment service providers (1 Category 1, 23 Category 2, 14 Category 3), 23 SVFs, 62 exchange houses and 4 payment-token entities. A CBUAE thematic review (May 2026) found 76% of surveyed SVFs/payment providers had only 'partially effective' AML/CFT controls and set a 15 July 2026 deadline for remediation plans.
Federal Decree-Law No. 6 of 2025 raises the maximum CBUAE penalty to AED 1 billion and sets fines of AED 50,000-500 million plus imprisonment for unlicensed activity, with a one-year transition period from 16 September 2025. Recent CBUAE enforcement does not name institutions. Cases include AED 200m on an exchange house (20 May 2025) plus AED 500,000 on a branch manager, AED 100m on another exchange house (29 May 2025), and AED 20m on a foreign bank branch (24 June 2026) plus AED 300,000 on its MLRO, all for AML/CFT failures.
In the DIFC and ADGM, money services are licensed by the DFSA and FSRA respectively (details not reviewed here).
Sources: lw.com · rulebook.centralbank.ae · centralbank.ae · centralbank.ae · cms.law · centralbank.ae · centralbank.ae · en.aletihad.ae
Licensed firms we track
Licence status and enforcement come from the regulator. Onboarding and sector details are only what each firm states publicly; "unknown" means it doesn't say. Check the register link before you rely on any firm.
| Firm | Type | Licence | Non-residents | Enforcement |
|---|---|---|---|---|
Binance FZEVARA licence issued 15 Apr 2024 for broker-dealer, management and investment, lending and borrowing, and exchange services (including VA derivatives). Publicly states it does not serve: VA margin and derivatives trading limited to institutional and qualified investors (VARA licence condition) Sources: vara.ae | Crypto (CASP) | VL/24/04/001 active | unknown | none found |
OKX Middle East Fintech FZEVARA licence dated 17 Sep 2024 for lending and borrowing, management and investment, exchange (including derivatives) and broker-dealer services. Publicly states it does not serve: Collateral optimisation limited to institutional and qualified investors (VARA licence condition) | Crypto (CASP) | VL/23/12/003 active | no | none found |
Crypto.com (Foris DAX Middle East FZE)Listed as an active VASP licence holder on VARA's public register. Sources: vara.ae | Crypto (CASP) | VL/23/10/003 active | unknown | none found |
BitOasis Technologies FZECurrently listed as an active VASP licence holder on VARA's public register.
Sources: vara.ae · charltonsquantum.com | Crypto (CASP) | VL/2024/11/001 active | unknown | 1 · last 12 Jul 2023 |
Morpheus Software Technology FZE (Fuze)VARA licence issued 19 Oct 2023; remains listed as active.
| Crypto (CASP) | VL/23/10/002 active | unknown | 1 · last 18 Aug 2025 |
CoinMENA FZE | Crypto (CASP) | VL/23/09/001 active | unknown | 1 · last 22 Jun 2026 |
Zand Bank PJSCCBUAE-licensed national bank (Dubai); VARA custody licence issued 9 Dec 2024. Publicly states it does not serve: VARA custody licence limited to institutional and qualified investors Sources: centralbank.ae · vara.ae | Bank | VL/2024/12/001 (VARA) active | unknown | none found |
Wio Bank PJSCCBUAE-licensed national bank incorporated in Abu Dhabi; offers digital business accounts opened with a UAE trade licence. Sources: centralbank.ae · wio.io · wio.io | Bank | register active | unknown | none found |
Wise Fintech Network L.L.CFinal CBUAE approval for SVF and Retail Payment Services (Category 2) licences announced 14 Oct 2025. Sources: newsroom.wise.com · centralbank.ae · wise.com · wise.com | EMI | register active | unknown | none found |
Revolut Stored Value Services L.L.CReceived CBUAE SVF and Retail Payment Services (Category II) licences (announced 17 Jun 2026); local products were not yet live at announcement. Sources: revolut.com · centralbank.ae | EMI | register active | unknown | none found |
Network International LLCListed on the CBUAE Register (Aug 2026) as an SVF licensee and the sole Retail Payment Services Category 1 licensee. Sources: centralbank.ae | Payment institution | register active | unknown | none found |
AC Limited (Hayvn ADGM)Former ADGM-authorised firm in the Hayvn group; founder banned from ADGM financial services.
Sources: adgm.com | Crypto (CASP) | register withdrawn | unknown | 1 · last 14 Apr 2025 |
Enforcement timeline
- 22 Jun 2026CoinMENA FZE: Financial penalty (amount not disclosed) for AML programme compliance failures arising from internal systems and controls, found in inspections covering operations through FY2025 source
- 18 Aug 2025Morpheus Software Technology FZE (Fuze): Financial penalty (amount not disclosed) for AML programme, governance and controls failures, intentional unlicensed VA activity in breach of licence conditions, and failure to disclose material facts; Skilled Person appointed to oversee remediation source
- 14 Apr 2025AC Limited (Hayvn ADGM): Fined USD 3m and Financial Services Permission cancelled for exceeding its permission, inadequate systems and controls and AML breaches; group entities and founder fined a further USD 5.85m (USD 8.85m total) source
- 12 Jul 2023BitOasis Technologies FZE: VARA suspended BitOasis's conditional MVP licence for not meeting mandated conditions within the prescribed timeframes (date is when it was reported) source
Crypto (MiCA)
Crypto regulation depends on location. VARA (Dubai, excluding DIFC; Dubai Law No. 4 of 2022) licenses VASPs for activities such as exchange, broker-dealer, custody, lending and management services. Its public register showed 57 active VASP licences on 8 October 2026.
Under a 5 September 2024 SCA-VARA agreement, VARA licensees are registered with the SCA, and VASPs targeting other emirates license with the SCA directly. ADGM's FSRA has run a virtual asset framework since 2018, and the DFSA regulates crypto tokens in the DIFC. For payments, the CBUAE Payment Token Services Regulation (Circular 2/2024) prohibits paying in virtual assets unless the token is a Dirham Payment Token from a CBUAE-licensed issuer or a Foreign Payment Token from a CBUAE-registered issuer.
Merchants may accept Dirham Payment Tokens, foreign payment tokens may be accepted to buy other virtual assets, and algorithmic and privacy tokens are banned. Its transitional period ended on 14 June 2025. VARA enforcement: 19 unlicensed firms fined AED 100,000-600,000 (7 Oct 2025).
Licensee Morpheus Software Technology FZE (Fuze) received an undisclosed penalty for AML failures and intentional unlicensed activity (18 Aug 2025). Licensee CoinMENA FZE received an undisclosed penalty for AML programme failures (22 Jun 2026). MX Global (MEXC, 22 Jun 2026), Peken Global (KuCoin, 24 Jun 2026) and Shelbit (24 Jul 2026) were fined for serving Dubai customers without a licence.
In ADGM, the FSRA fined the Hayvn group and its founder USD 8.85m in total and cancelled AC Limited's permission (announced 14 Apr 2025).
Sources: vara.ae · dlapiper.com · regulationtomorrow.com · unlock-bc.com · vara.ae · vara.ae · vara.ae · vara.ae · vara.ae · vara.ae · adgm.com
Tax
Federal corporate tax applies to financial years starting on or after 1 June 2023: 0% on taxable income up to AED 375,000 and 9% above that. A Qualifying Free Zone Person pays 0% on qualifying income and 9% on non-qualifying income. Conditions include adequate substance in the free zone, audited IFRS financial statements, transfer-pricing compliance, not electing standard taxation, and non-qualifying revenue within a de minimis limit of the lower of 5% of revenue or AED 5 million.
A company that fails a condition is taxed at 9% for that year and the next four. Small business relief is available for revenue up to AED 3 million per tax year until 31 December 2026. Withholding tax on UAE-source payments to non-residents is currently 0%.
A 15% Domestic Minimum Top-up Tax (Pillar Two) applies from financial years starting on or after 1 January 2025 to MNE groups with consolidated revenue of EUR 750 million or more in at least two of the four preceding years. VAT is 5%; registration is mandatory above AED 375,000 and voluntary from AED 187,500 for resident businesses.
Sources: taxsummaries.pwc.com · taxsummaries.pwc.com · taxsummaries.pwc.com · taxsummaries.pwc.com · taxsummaries.pwc.com
Risk lists
FATF. Not on the FATF grey or black list. The UAE was under increased monitoring from 4 March 2022 until FATF removed it on 23 February 2024. It was not among the June 2026 additions (the June 2026 black list was Iran and DPRK only).
EU high-risk list. No. The UAE was removed by Commission Delegated Regulation (EU) 2025/1184, in force 5 August 2025. The next update (Delegated Regulations (EU) 2026/46 and 2026/83, in force 29 January 2026) did not re-add it.
The new CBUAE law (Federal Decree-Law No. 6 of 2025) and VARA's run of 2025-2026 enforcement notices show a tougher supervisory stance. CBUAE sanction notices usually do not name the institution.
Sources: natlawreview.com · twobirds.com · eur-lex.europa.eu · cm.twobirds.com · dia.govt.nz · cms.law
Regulators
- Central Bank of the UAE (CBUAE): Licenses and supervises banks, finance companies, exchange houses, retail payment service providers, stored value facilities and payment-token service providers onshore and in non-financial free zones; AML/CFT supervisor; imposes financial sanctions
- Virtual Assets Regulatory Authority (VARA): Licenses and supervises virtual asset service providers in Dubai (excluding the DIFC) under Dubai Law No. 4 of 2022; publishes enforcement notices and fines
- Securities and Commodities Authority (SCA): Federal securities and commodities regulator; regulates virtual asset activities in other emirates (outside the financial free zones). VASPs licensed by VARA are registered with SCA under a 5 September 2024 cooperation agreement
- Dubai Financial Services Authority (DFSA): Independent regulator of financial services in the DIFC financial free zone, including its crypto token regime
- ADGM Financial Services Regulatory Authority (FSRA): Regulator of financial services in the Abu Dhabi Global Market free zone; virtual asset framework since 2018
- Ministry of Finance / Federal Tax Authority (FTA): Tax policy (MoF) and administration of corporate tax, VAT and excise (FTA)
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Questions
What is the corporate tax rate for a UAE free-zone company?
0% on qualifying income if the company meets all Qualifying Free Zone Person conditions, including adequate substance, audited IFRS accounts and non-qualifying revenue below the lower of 5% or AED 5 million. Otherwise it pays the standard rates: 0% up to AED 375,000 of taxable income and 9% above. A company that fails a condition is taxed at 9% for five years.
Can I open a UAE company without living there?
Yes, at several free zones. Meydan Free Zone says its process is fully digital and offers a non-resident licence, and DMCC's flexi-desk setup needs no office visit. A residence visa and Emirates ID, which banks commonly ask for, require an in-person visit for the medical test and biometrics.
Which licence do I need to run a wallet or payment business in the UAE?
Onshore and in non-financial free zones, from the CBUAE. You need a Stored Value Facilities licence (AED 15m minimum capital) to hold customer funds in stored value, and/or a Retail Payment Services licence (Category I-IV, AED 100,000 to AED 3m capital depending on category and volume). The DIFC and ADGM license financial services separately through the DFSA and FSRA.
How many crypto firms are licensed by VARA?
57 active VASP licences were listed on VARA's public register on 8 October 2026, including Binance FZE, OKX Middle East Fintech FZE, Crypto.com (Foris DAX Middle East FZE), BitOasis and Zand Bank (custody).
Is the UAE still on the FATF grey list or the EU high-risk list?
No. FATF removed the UAE from increased monitoring on 23 February 2024, and the EU removed it from its high-risk third-country list with effect from 5 August 2025 (Delegated Regulation (EU) 2025/1184).