Call for Assistance: +971 503506152
Call for Assistance: +971 503506152
Payroll Setup and Compliance in the UAE
September 4, 2024

Theta7 provides seamless access to Zoho Payroll, enabling businesses to streamline their payroll processes with ease. Before proceeding with the subscription to Zoho Payroll, it is essential to ensure that all establishment details are correctly set up, particularly for compliance with the UAE’s Wage Protection System (WPS).

Establishment Number Requirement

An establishment number is a mandatory requirement for businesses operating in the UAE, especially for compliance with WPS. It’s crucial to verify whether the establishment number is in place, as payroll systems like Zoho Payroll require this information for proper setup. Businesses can confirm their status through the MOHRE verification link

Steps to Obtain and Register an Establishment Number

  • Verify the Issuance of an Establishment Card:

Businesses should first check whether their Free Zone authority has issued an Establishment Card via the Federal Authority for Identity and Citizenship, Customs and Ports Security. This is particularly relevant for companies with existing visas, as it is common for an Establishment Card to already be in place. If an Establishment Card has not been issued, it can be obtained through the Federal Authority’s service portal. It is notable that this process should ideally be supported by the company formation agent.

  • Register the Establishment Card with MOHRE:

Once the Establishment Card has been obtained, the next step is to register it with the Ministry of Human Resources and Emiratisation (MOHRE). This registration can be completed by following the instructions available here.

Integrating with Zoho Payroll

After successfully registering the Establishment Card, businesses will receive an establishment number. This number must be entered into Zoho Payroll, alongside the company’s UAE bank account details, to ensure compliance with the WPS. Proper integration with Zoho Payroll not only helps in meeting regulatory requirements but also simplifies payroll management, making it easier for companies to manage their payroll processes efficiently.

By following these steps, businesses can ensure they are fully compliant with UAE regulations and can leverage Zoho Payroll to its full potential.

If you have any questions about setting up Zoho Payroll or require further assistance, please don’t hesitate to reach out to us.

more guides

Theta 7 - An Online Accounting Firm in the United Arab Emirates

Spondoo, a leading online accounting firm, has launched Theta 7, its new branch in the United Arab Emirates. Theta 7 is an online accounting firm that offers a range of accounting services to businesses in the UAE, leveraging technology to offer accurate, timely and cost-effective solutions. With its launch in 2023, Theta 7 is set to revolutionise the accounting industry in the UAE.
READ MORE

Taking my clients out for drinks or dinner? How it works in the eyes of the UAE Federal Tax Authority

Most jurisdictions now restrict or disallow client entertainment expenses, and the UAE is no exception to this. When you take a client out for dinner or drinks, or even paying for a joint golfing trip, this is client entertainment. You can indeed pay for this type of expense via the business, and it is still legitimate to do so.
READ MORE

When considering tax rate thresholds, how is UAE corporate tax calculated?

If a company has a taxable profit of 400,000 AED, the calculation will be (375,000 AED x 0%) + (25,000 AED x 9%) giving a tax bill for the period of 2,250 AED.
READ MORE

Is Dubai Truly Tax-Free? 

Simply put - Yes and no: There is no income tax on a person’s salary, wages, bank interest, dividends, or capital gains in Dubai, however, from June 2023 corporation tax was introduced
READ MORE

Can I Avoid Corporation tax by paying all my profits as a salary in the UAE?

Our answer is – it is not that simple, and the FTA (Federal Tax Authority) are too smart for that one.
READ MORE

Are Free Zone companies subject to tax in the United Arab Emirates (UAE)?

It is important to note that Free Zone companies are not exempt from corporation tax in the UAE, but they may qualify for a 0% tax rate. This is an important distinction as all Free Zone companies be required to register for corporation tax with the Federal Tax Authority (FTA) and file returns at least annually.
READ MORE
1 2 3 6
Information provided on the site is merely guidance that may change in line with UAE law and regulations. Users must not consider this to be financial advice or their sole resource when making any financial decision. Theta7 is a trading name for THETA 7 Accounting & Bookkeeping L.L.C, an authorised & licensed accounting firm under the Ministry of Economy and the Federal Tax Authority of the United Arab Emirates.
© Copyright 2023 - Theta 7 - All Rights Reserved
linkedin facebook pinterest youtube rss twitter instagram facebook-blank rss-blank linkedin-blank pinterest youtube twitter instagram