Setting up proper accounting from day one prevents compliance problems down the road. Here is a complete accounting setup checklist for new UAE companies in 2025.
Day 1-7: Register for Tax and Open Accounts
Check VAT registration threshold: if your planned revenue will exceed AED 375,000 in the first 12 months, register for VAT on EmaraTax immediately (do not wait until you cross the threshold accidentally). Open UAE business bank account: as soon as the trade licence is issued. Set up a chart of accounts: use accounting software (Zoho Books, QuickBooks, Xero) or ask your UAE accountant to set up a standard UAE chart of accounts. Establish separate accounts for: operating income, cost of goods sold (if applicable), payroll costs, administrative expenses, bank charges, and VAT liability.
Day 8-14: Set Up Payroll and WPS
Register with MOHRE (if hiring employees): required for mainland companies before hiring. Register for WPS: set up a WPS salary transfer method with your UAE bank or an approved WPS service provider. Create employee files: for each employee, collect passport copy, Emirates ID, contract, and bank account details for WPS transfer. Payroll cycle: decide on monthly payroll date and communicate to employees.
Day 15-30: Set Up Invoicing and Record-Keeping
Create UAE-compliant invoice template: include all required fields (TRN if VAT-registered, sequential numbering, supply date, description, VAT separately shown). Set up a filing system: digital (cloud-based preferred) for: supplier invoices, sales invoices, bank statements, and expense receipts. Retain records: UAE tax records must be kept for 5 years (VAT) and 7 years (general business records). UAE corporate tax records: 7 years minimum. Appoint an auditor: if your free zone requires audited accounts, appoint a UAE-licensed auditor early (auditors become busy in Q1 for December year-ends).