Legal Definitions · 20 terms

UAE legal
definitions.

Practitioner-level explainers of the UAE legal and regulatory terms most often asked about. Browse 20 definitions covering from VARA Licences and DFSA categories to QDMTT, Free Zone Person status, Golden Visa pathways and the standard offshore vehicles.

20 definitions

Virtual Assets & VARA

A VARA Licence?

The Dubai Virtual Assets Regulatory Authority licence framework — the licence categories, the application pathway, and what activities require authorisation.

A VARA Category 1 Token?

Asset-Referenced Virtual Assets (ARVA) and Fiat-Referenced Virtual Assets (FRVA) under the VARA Virtual Asset Issuance Rulebook.

A Virtual Asset Service Provider under VARA, FSRA and CBUAE frameworks — the regulatory definition and the activities captured.

VARA's Technology Governance and Risk Assessment Framework — the eight domains, the annual cycle, the independent assurance.

Net Liquid Asset (NLA)?

The capital adequacy metric for VARA-licensed VASPs — calculation, thresholds by category, and the 110% pre-alert discipline.

Financial Services Licences

A DFSA Licence?

The Dubai Financial Services Authority licence framework — the five categories of Authorised Firm in the DIFC.

An FSRA Licence?

The Financial Services Regulatory Authority licence in ADGM — the licensing framework and activities authorised.

Corporate Tax & Substance

UAE Corporate Tax?

The 9% federal corporate tax regime under Federal Decree-Law 47 of 2022 — scope, registration, and exemptions.

A Free Zone Person?

The Qualifying Free Zone Person status under the UAE Corporate Tax Law — the substance test for the 0% rate on qualifying income.

The OECD global minimum tax framework establishing a 15% effective tax rate for MNE groups with revenue ≥EUR750M.

The Qualified Domestic Minimum Top-up Tax under Pillar Two — how the UAE has implemented it via Cabinet Decision 142/2024.

The UAE Tax Residency Certificate — eligibility, application process and use for treaty access.

ATO Tax Residency?

Australian Tax Office residency tests — the four tests, deemed disposal on departure (CGT event I1), and the exit-planning framework.

Wealth Structures & Vehicles

A DIFC Foundation?

The DIFC Foundation regime — an alternative to trusts for wealth-holding, succession and asset-protection structures.

The UAE Golden Visa?

The 10-year UAE residency visa — investor, talent and pioneer pathways, AED 2M property threshold.

Offshore Vehicles

A BVI Business Company?

The British Virgin Islands Business Company under the BVI Business Companies Act — structure and use cases.

A Cayman Exempted Company?

The Cayman Islands Exempted Company — the institutional offshore default for funds, holding structures and DAOs.

A Panama Private Interest Foundation?

Panama's civil-law foundation regime under Law 25 of 1995 — the Charter and Regulations framework.

A Marshall Islands DAO LLC?

The world's first jurisdiction-level DAO legal recognition under the RMI DAO Act 2022.

Cross-Border & China

ODI Clearance (China)?

China's Outbound Direct Investment clearance — the NDRC, MOFCOM and SAFE three-track procedure for Chinese capital exiting to the UAE.

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