What can I buy and not buy with my UAE company ?

[SasuT]

I understand that typically, business expenses should be strictly related to the operation of the business. However, I'm curious about how this is applied in the UAE. For example in many European countries, using company funds for personal expenses can lead to legal issues and substantial tax liabilities.

Specifically in the UAE, is it permissible to use company funds to pay for personal rent, especially if I work remotely? Also, can I purchase personal groceries using my company's finances?

How strict are the regulations in the UAE regarding the use of company funds for personal expenses?

PS : I know that the better way is always pay myself a salary and buy whatever I want with it, but I'm in a situation where I can't until January..

 

[Howl]

Hi Sasu,
I recommend keeping these two situations separately.
You can for example register a property or a car under the company, however it is not advised to use your corporate bank account to pay your personal expenses. Every year you will have to have an audit in the company, by a specialized company and they will not be able to justify these expenses when they submit the audit report to FTA & Compliance.

 

[JohnLocke]

As already posted here once, you probably should not mix business and private affairs, it never ends well. Open a private account somewhere and that's fine, or, if you have the opportunity, set up a company in the Seychelles and get an EMI for it and then use it for private purposes and skip the company should it become too 'hot' in relation to the authorities. Of course, it's not legal to do that, and it is said purely hypothetically.

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Disclaimer: Nothing I say should be taken as tax, legal or financial advice. Anything I say is for general informational purposes only. Always seek independent professional advice.​