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Rule & Regulations of Meydan Free Zone
Meydan Free Zone is determined to ensure its environment is fair, efficient, and transparent. In its efforts to combat money laundering and terrorism financing, Meydan Free Zone aligns itself with international and domestic efforts and initiatives.
Click here to see our companies and licensing regulations.
Refer to the following documents to find out what to expect from the compliance team at Meydan Free Zone.
Cabinet Resolution No 57 of 2020 revoking Cabinet Resolution No 31 of_2019
Ultimate Beneficial Ownership (UBO)
Anti Money Laundering (AML)
Frequently Asked Questions
MeydanPay is a payment gateway App to facilitate payment collection for goods and services on behalf of your merchants, this means any transaction must be against a service. It can be integrated with your online shops, marketplaces, and services.
Customers can register for Meydan Pay either using the Meydan Pay App available on both Google or Apple stores.
No, anyone can register for Meydan Pay. The document for KYC varies depending on your location. For example, a resident will need Emirates ID and for non-residents, a passport is required to complete KYC.
Users can upload the passport instead to complete KYC.
Yes, opening a bank account and Meydan Pay are independent of each other. Meydan Pay is a payment gateway solution and not a bank or a banking application.
The KYC process to register for the Meydan Pay app can take a minimum of 2 working days to a maximum of 5 working days based on your business case and transaction requirements
Differences in the email address and mobile number are acceptable.
It will take less than 2 hours for the beneficiary to be added.
Currently, transactions can be done only in AED.
You can transfer funds from an international bank account using our VA feature
Yes, international transfers can be carried out through virtual IBAN.
Top-up can be done by both, local and international banks.
The money can be withdrawn only from the revenue account
Yes, invoices can be made and shared through Meydan Pay by email, social media, and QR code scanner.
A maximum of 50 shareholders are allowed on a license.
A maximum of 4 directors are allowed on a license.
A maximum of 50 corporate shareholders are allowed on a license.
- Company Documentation of parent company (Certificate of Incorporation, Certificate of Incumbency, Memorandum and Articles of Association, Board Resolution, etc.)
- Passport copies of owners and managers
- Board Resolution indicating it has been resolved to open a branch office in “Meydan – Free Zone Authority” – original required signed and stamped (contact us for a draft of the same).
- When a shareholder is a company entity, the Board Resolution should state the following as an example – “XYZ Company to take a 50% stake in new company ABC LLC to be formed in “Meydan – Free Zone Authority” – original required signed and stamped (contact us for a draft of the same).
- The Board Resolution should also include the appointed Manager(s)/Shareholder(s)/Director(s) of the branch or new LLC .
These documents are not required to be attested at the time of formation, however, it will be required in due course of time.
NOC is not required to incorporate a company.
Yes, you can get a license with a zero-visa at Meydan Free Zone, which includes a Lease Agreement, LLC-FZ Trade License that has three business activities included.
Physical presence is not required to setup a company.
No paid–up share capital is required
We recommend 100,000 AED.
You can incorporate the company with 3 activities without any additional charge
Yes, combination of activities is permitted
The cost of additional activities is 1000 AED per activity. Approvals are required only for regulated activities.
The employment visa does not require a deposit, but the dependent visa does
There is no minimum and no maximum age.
Shareholders will receive investor visas, and employees can obtain labor visas, both valid for two years
Licensees can choose the license validity during incorporation
There is no limit to the number of managers that can be employed.
Meydan – Free Zone, Al Meydan Road, PO Box 35195, Dubai, UAE.
No, Chamber of Commerce certificate will not be issued.
- Certificate of Formation
- Share Registry
- Business license
- Lease Agreement
- Memorandum Of Association
Yes, you can submit the MOA, however our legal team will review the document which will incur additional charges and timelines.
A license will be issued within one day of completing the formalities
Yes, you can hold a property under your company.
Yes, you can apply for visa if you have the visa allocation.
Yes, you can upgrade your license with no amendment fee.
You can downgrade within visa packages but not between visa and non–visa package
Anyone can register for Meydan Pay. The document for KYC varies depending on your location. For example, a resident will need Emirates ID and for non-resident a passport is required to complete KYC
Users can upload the passport instead to complete KYC
After we have processed your service request and contacted you with a proposal for concierge services. You can pay us by bank transfer, in-cash or by using credit / debit card. The service will be confirmed once the invoice is paid successfully.
The time it will take to process your request will depend entirely on the nature of the request and/or the complexity of the query. We will, however, contact you within 24 hours of receiving your service request to give you a preliminary invoice based of the time required to fully deal with your query.
We can guarantee to do our best. Whether or not we can provide the information and/or assistance that you require will of course depend on the specific nature of your request.
To summarize, UAE is a no or low tax jurisdiction, which companies can sometimes use to their advantage in order to minimize paying taxes. This law has come into place in order to tackle tax evasion by shifting of income from a higher tax jurisdiction to a lower tax jurisdiction. So companies conducting certain activities need to prove that they have enough substance/presence within UAE.
Assess whether you conduct a relevant activity and earn income from it. Then, if required (according to each jurisdiction), first submit an Economic Substance Notification, followed by Economic Substance Return.
Information available on the Notification Deadline doc shared. Know the emailer being sent out, the jurisdiction, the deadline, who needs to submit, All or only people conducting relevant activity.
The process needs to be repeated each year.
Information is available in the ‘Notification Deadline’ file for each jurisdiction.
Substance over form approach is to be used, not just what activity is stated on the license. The summary of the relevant activity shared, does the client conduct any of those activities?
Companies whose financial year started on or after 1st Jan 2019 and ended on or before 31 Dec 2019 need to submit the notification.
A company must submit its ESR in the following year, even if it was just formed.
In short, certain types of companies must be managed or directed from within the UAE, have adequate UAE-based full-time staff, generate most of their income in the UAE, maintain adequate assets, and demonstrate adequate operating expenditure in the UAE. This is called the Economic Substance Test.
This things are reported through the Economic Substance Return.
The ESR needs to be submitted within 12 months of the financial year-end (Mentioned in MOA/AOI etc).
Substance over form, not only the activity listed on the license, recommend to get assessed.
But even when you do not conduct any relevant activity, you still may require to submit the notification, according to the jurisdiction.
AED 10,000 to 50,000
The natural person who ultimately owns or exercises effective control, directly or indirectly, over a Customer or the natural person on whose behalf a Transaction is being conducted or, the natural person who exercises effective ultimate control over a legal person or Legal Arrangement.
The natural person who ultimately owns or controls the Legal Person, whether directly or through a chain of ownership or control or any-other indirect means, and also the natural person on whose behalf the transactions are being conducted or who exercises ultimate control over a legal person.
- The natural person who own 25% or more of the shares
- The natural person who has the right to appoint or dismiss the majority of its Directors.
- Where no natural person is identified as a UBO then the natural person who holds the position of a higher manage
Where no natural person is identified as a beneficial owner then the natural person who holds the position of a higher management official shall be deemed as the Beneficial Owner.
Importance of knowing the ultimate beneficial owner is to prevent the money launderer from hiding the source of the dirty money or the identity of the persons related to this money. Failure to verify the identity of these beneficiaries will facilitate the money laundering process and affect the economy in general.
A Specific Register of the Beneficial Owners in the Legal Person, which include the following data in respect of each Beneficial Owner:
- Full name, nationality, date and place of birth.
- Residential address or the address which the notices shall be sent on it, by virtue of this Decision.
- Number of passport or identity card, the country of issuance, date of issuance and expiry.
- Basis and date on which the person became a Beneficial Owner of the Legal Person.
- Date on which the person ceased to be a Beneficial Owner of the Legal Person.
It’s the register which includes the data of each of partner or shareholder. The Legal Person must update and record any change to the Register within (15) fifteen days of becoming aware of such change. The Register of Partners and Shareholders shall include:
- Number of shares held by each of them along with their categories and associated voting rights.
- Date on which such partner became Beneficial Owner of the Legal Person.
In case of natural partners or shareholders: the full name as it appears on the identity card or the passport, nationality, address, place of birth, name and address of employer and a true copy of the valid passport or ID.
In case of corporate partners or shareholders:
- Name, legal form and memorandum of association.
- Head office address or the principal address of business.
- In case of a foreign Legal Person, the name and address of its legal representative in the State, with a proof thereof.
- Articles of Association or any-other similar documents approved by the Relevant Entity in the State.
- Names of the relevant persons who are holding higher management positions in the Legal Person, providing their data from their passports or identity cards, including such documents’ numbers, issuance and expiry dates and issuing entity.
Any natural person who acts in accordance with the directives, instructions or wills of another person and the Legal Person shall enter into the Register of Partners or shareholders the data of any partner(s) or shareholder(s) acting as Nominee Board Member.
As per Cabinet Resolution (53) of 2021 Administrative penalties for violators of the provisions of the Cabinet Resolution (58) of 2020 Regulating Beneficial Owner procedures the penalties start from AED50,000 and may reach to AED100,000 and a suspended license for 12 months.
It is the natural resident person who is authorized by the company to provide any information and documents required from the company.
Trustor/ Settlor
A natural or legal person who transfers the management of his funds to a trustee by virtue of a deed.
Trustee
A natural or legal person who enjoys the rights and authorities granted by the Trustor or the Trust Fund, to manage, use and dispense of the Trustor’s funds in accordance with the conditions imposed on him by either of them
If the Ultimate Beneficial Owner is working for another company, please mention this company name and address. But if not mention the same name and address for the company registered in Meydan Free Zone.
- Maintain a register of partners or shareholders, containing data of real beneficiaries and a register of the nominal members of the administration.
- Submit this information to the affiliated licensing authority.
- Notify the licensing authority of any changes or amendments that occur to the information provided within 15 days of the occurrence of that change.
- Appoint a contact person (legal representative) for the licensing authority regarding the real beneficiary data.
- Take reasonable steps to ensure transparency, obtain accurate information regarding the beneficial owner, and update the information in the records on a regular basis.
The process of money laundering occurs when criminals conceal the original owner and source of criminal proceeds from illegal acts, including drug trafficking, embezzlement, arms sales, and cybercrime. To utilize such proceeds in legal and illicit activities, they must make them appear to come from a legitimate source.
Money laundering can have harmful effects, which may be exacerbated by weak enforcement of anti-money laundering laws and the absence of effective executive authorities. When specialized authorities in a given country are negligent, this can create an ideal environment for money launderers and criminals to carry out their illicit activities with ease and at scale.
The dangers of money laundering include:
- Crime and corruption are widely spread and noticeable
- Negatively affecting the economy by harming the private sector
- Bad reputation globally
- Imposing international sanctions
The first stage of money laundering is called “Placement”: At this stage the money launderer smuggles cash across countries to invest in foreign financial institutions for trading or buying rare, expensive, minerals, precious stones and other products or holding that are iconic for their high price. This includes antiques which can be resold with checks or bank transfers, in addition to other ways such as splitting huge amounts into small amounts and making direct deposits in bank accounts.
- “Layering” is the second stage of money laundering process: In layering stage many layers of complex financial operations are forged to separate the illicit funds from their original source in order to hide the true source of these returns, which make it difficult for the supervisory and law enforcement authorities to track and audit these transactions.
- The last stage of money laundering process is “Integration”: Illegal proceeds are introduced into the financial system under the guise of legal earnings from legitimate economic activity. This provides a legal cover for the previously illegal funds, making it more difficult to distinguish them from legally obtained money. Money launderers can then invest these funds in legitimate activities, presenting an opportunity to increase their wealth through seemingly lawful means.
Defined as per the law No. 7 of 2014 as providing, preparing, collecting or facilitating funds for others to obtain them with the intent of use then in committing a terrorism crime, is considered one of the most dangerous means of spreading crime and corruption.
- Founded by the G7 (or Group of Seven) in 1989 and headquartered in Paris.
- The organization has many international organizations and regional offices, such as MENA FATF for Middle East and North Africa Affairs.
- FATF has developed 40 recommendations, which are considered an international standard that countries implement in line with their own circumstances.
- Identifying risks, developing policies and local coordination.
- Tracking money laundering, terrorist financing and weapons proliferation activities.
- Giving powers and responsibilities to the competent authorities, such as law enforcement and supervisory authorities.
- Providing the required information about the ultimate beneficial owners (UBO) of companies and legal and natural persons
- Work to issue protective measures for the financial sector and the target sectors. Work to promote international cooperation.
The disclosure limit is the maximum limit of cash that is allowed to be brought to the country. If you exceed this limit, you will be subject to a disclosure system that is controlled by the central bank.
- Money laundering depends on the dirty money gained from the crime contrary to the source of funds for the terrorist financing, which might be licit and collected to be directed for terrorist activity. The customer type: the money launderer is a professional in what he is doing. As for the terrorist financier, he often does not know that he is financing a terrorist act.
- Money volume: money laundering has huge amounts that may belong to one person, unlike terrorist financing, which has small amounts belonging to many people (donations money, for example).
- The money path: In money laundering, the money path is circular as the money starts/ ends from/ to the launderer, but in terrorist financing, it is linear, starting from the donors and ending with the terrorist.
It is a system for transferring money from one geographical region to another without inserting to the financial system, which leads to a lack of control over it. In 2020, a decision was issued by the Central Bank to make it mandatory to license the Hawala activity, to be controlled and monitored, to mitigate the risks of this activity. Therefore, our clients are requested to verify the legitimacy of the persons or organizations they deal with so that they are not involved in unintentional money laundering.
Natural persons who are or have been entrusted with prominent public functions in the State or any other foreign country, such as Heads of States or Governments, senior politicians, senior government officials, judicial or military officials, senior executive managers of state-owned corporations, and senior officials of political parties and persons who are, or have previously been, entrusted with the management of an international organization or any prominent function within such an organization. The definition also includes the following: Direct family members (Of the PEP, who are spouses, children, spouses of children, and parents). Associates are known to be close to the PEP, which includes:
– Individuals having joint ownership rights in a legal person or arrangement or any other close business relationship with the PEP.
– Individuals having individual ownership rights in a legal person or arrangement established in favor of the PEP.
The risk of politically exposed persons is in the possibility of using their positions to launder or smuggle money or facilitate participation in any financial or terrorist crimes.
Anyone who is engaged in the following trade or business activities shall be considered a DNFBP:
- Brokers and real estate.
- Dealers in precious metals and precious.
- Independent accountants & auditors.
- Legal consultancy.
Company service providers. (Only licensee who have one or both of the activities of Corporate Services Provider/ Documents Clearing Services will be able to establish companies on behalf of others.)
DPMS is considered a high-risk activity for the following reasons:
- The ease of trade in diamonds around the world, as well as its small size, ease of transport and high price, make it one of the most threatening gemstones as a factor in money laundering.
- The high value of gold and the retention of its value regardless of its shape, whether in the form of gold artefacts or metal ingots, make it at the forefront of precious metals used in money laundering and terrorist financing.
CSP is considered a high-risk activity for the following reasons:
- Acting as an agent for establishing companies on behalf of others.
- Work and equip another person to work as a manager or secretary for a company or as a partner or in a similar position in a legal person without identifying the ultimate beneficial owner.
Independent accountants, auditors and legal consultancy are considered high risk activities because of running the following activities:
- Establishing companies with a complicated structure to hide the relation between the crimes’ income and the criminals.
- The purchase and sale of properties, where the transfer of the ownership is used in the layering stage as well as in the integration stage, through legal investments after the money laundering process.
- Making financial transactions on behalf of their customers, such as depositing or withdrawing cash, buying and selling shares, or sending and receiving international funds transfers.
Designated Non-Financial Businesses and Professions (DNFBPs) are defined by FATF as:
- Real estate agents
- Dealers in precious metals or precious stones
- Dealers in any saleable item of a price equal to or greater than USD 15,000
- Lawyers, notaries, other independent legal professionals and accountants.
This refers to sole practitioners, partners or employed professionals within professional firms. It is not meant to refer to internal professionals that are employees of other types of businesses, nor to professionals working for government agencies, who may already be subject to AML/CFT measures.
- Executing a series of operations to conceal the illegal source of funds. These operations can be classified under the layering stage.
- Investment in large projects, such as tourist complexes, to give a legitimate appearance (the integration stage).
- Buying and selling real estate in fake names.
No, as it’s not mentioned as one of DNFBPs.
DPMS is considered a high risk activity for the below reasons:
- The ease of trade in diamonds around the world, as well as its small size, ease of transport and high price, make it one of the most threatening gemstones as a factor in money laundering.
- The high value of gold and its retention of its value regardless of its shape, whether in the form of gold artifacts or metal ingots, makes it the forefront of precious metals used in money laundering and terrorist financing.
Independent accountants, auditors and legal consultancy are considered high risk activities because of running the below activities: Establishing companies with a complicated structure to hide the relation between the crimes’ income and the criminals.
The purchase and sale of properties, where the transfer of the ownership is used in the layering stage as well as in the integration stage, through legal investments after the money laundering process.
Make financial transactions on behalf of their customers, such as depositing or withdrawing cash, buying and selling shares, or sending and receiving international funds transfers.
DNFBPs must comply with the law of anti-money laundering and combating the financing of terrorism and financing of illegal organizations by implementing the requirements of the ministry of economy as below:
- Appoint an expert compliance officer.
- Rely on the official website of the committee for goods and material subjected to import & export control to obtain the most recent publication of the local lists issued by the UAE cabinet.
- In addition, subscribe to the email subscription service provided in the website in order to receive relevant updates to both the UNSC consolidated lists and the local lists.
- Register for goAML program. goAML is an integrated platform used to file Suspicious Transaction Reports (STRs) and/or Suspicious Activity Reports (SARs)
There are no fees for registrations. The companies can register thru simple steps on the website of the ministry of economy.
An existing licensee is already registered for goAML after the awareness campaign, which ended on April 30th 2021. Fines will be imposed by the Ministry Of Economy for those who don’t comply with the requirements before the campaign’s deadline. The new licensees should comply with the requirements once their license has been issued to avoid being imposed any fines.
AED 50K is a minimum fine, and it may duplicate to AED 5M and company cancellation
Ministry of Economy.
- Federal Decree No. (20) of 2018 on anti-money laundering and countering the financing of terrorism.
- Cabinet Decision No. (10) of 2019 concerning the implementing regulation of decree law no. (20) of 2018 on anti- money laundering.