Month: January 2023
UAE Announces Guidelines for determining Tax Residency
Rajesh R Pillai
Phone:- +971 4 327 7775
Mobile:- +971 55 160 1291
WhatsApp:- +971 56 219 1607
Email:- dubai@hlbhamt.com
The Cabinet Resolution No. (85) of 2022 on determining tax residence was recently announced by the Federal Tax Authority of the UAE, which will be put into operation on March 1, 2023. There was no legal definition of UAE Tax Residency prior to the resolution. But the administration designed the legislation to keep up with the nation’s constantly changing tax environment in order to comply with international taxation and also to be in line with the new corporate tax structure that the UAE intends to put into place starting in June 2023.
For assessing whether an individual may be classified as a UAE tax resident, certain regulations have been implemented. The following is a summary of the criteria that have been defined for identifying the tax domicile of juridical and natural persons in the UAE:
I. Juridical Person
According to the Resolution, when one of the following requirements is satisfied, a juridical person should be regarded as a UAE tax resident:
- Where it has been established, incorporated, or acknowledged in conformity with the laws in effect in the state, since this excludes the branch that is registered by a foreign juridical person in the state
- It is regarded as a tax resident in compliance with the state’s current tax law.
II. Natural Persons
Natural persons are considered tax residents in the UAE under Article 4 of the resolution if any of the following criteria is satisfied:
- The UAE is the person’s customary or primary place of residence, and the UAE is the focus of their financial and personal activities, among other requirements and specifications stated in a particular decision (to be) made by the UAE MoF.
- The person has resided physically in the UAE for at least 183 days throughout the span of a 12-month period.
- The person is a GCC national, a resident of the UAE, or a citizen of the UAE who has physically resided in the country for at least 90 days in the past 12 months.
- Stay permanently in the United Arab Emirates; or
- Operates a company or an employment in the UAE
III. International agreements being implemented
The resolution stipulates that an international agreement should remain in effect if it lays forth specific requirements for assessing tax residency. Therefore, UAE people will have to look to the precise criteria outlined in the international agreement itself for determining their tax residence for the intention of implementing an international agreement.
IV. Competencies and Cooperation with Authority
For the purpose of carrying out the terms of this resolution, the authority can ask all state government agencies for any information, facts, or related documents about any person.
For the purposes of carrying out the terms of this resolution, all state government agencies are required to fully cooperate with the Authority. This includes giving the authority any material, data, or records it requests about any person.
Bottom Line
Businesses and individuals in the UAE should adhere to the resolution’s criteria in order to properly determine their resident status for tax purposes in the UAE. This is a really remarkable development that will guarantee conformity with procedures used in other nations and therefore provide an unbiased basis.
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Best 5 benefits for business setup in Dubai Media City Free Zone
HLB HAMT
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Dubai Media City is a leading free zone dedicated to promoting the UAE’s media and advertising sectors. Business Setup in Dubai Media City gives a significant benefit to media and advertising organizations by providing an environment in which they can exhibit their talent, their products, and services and engage with some of the UAE’s leading marketing companies. Set up a Company in Dubai Media City with HLB HAMT business consultants to create a way to your success.
- The media and entertainment sector in Dubai, United Arab Emirates, is vast. In the Middle East, UAE is the centre of print, television, radio, and internet media.
- The city has drawn international media companies, including major news organizations, publishing corporations and social media behemoths.
Why Dubai: Advantages of setting up a media company in Dubai/UAE?
The Dubai government has continued to work on improving the Emirate’s reputation as a media hub and launching new measures to make it easier for investors to establish a media firm in Dubai. Business Setup in Dubai Media City Free Zone gives several advantages.
- 100% foreign ownership.
- The ideal business environment for all media players.
- There are no personal or import duties.
- You may achieve fame and success because the location is perfect for growth and partnerships.
- Dubai has high-quality infrastructure.
- A one-stop shop for government services.
- 100% repatriation of capital and profits.
- Cluster working place for various media firms to work, collaborate, and cooperate.
In Dubai, you may set up your media firm in three zones
Dubai Media City
With over 2,500 media enterprises and over 25,000 workers and investors, it is the largest media centre in the region. This media zone is home to CNN, Thomson Reuters, and the BBC.
Dubai Production City
Dubai Production City provides a global ecosystem for media production, printing, publishing, and packaging industries. It is home to more than 220 businesses and around 6,800 professionals.
Dubai Studio City
Over 220 businesses and 2,500 individuals work and invest in the region’s main business community.
How can I establish a media firm in Dubai/UAE?
Before proceeding, it is critical to determine the types of commercial operations that are permitted in a certain media center/zone. The following business activities are permitted: Broadcasting, publishing, advertising, public relations, market/media research, digital marketing, music, and post-production.
Although the process of establishing a media company in Dubai is flexible, you should keep the following things in mind to ensure a successful business establishment:
- Dubai Media and Technology-Free Zone Authority oversees and approves the registration of all DMC enterprises.
- The first step in establishing a media firm in Dubai/UAE is to fill out the application form on the internet portal and submit it to the DTMFZ. The application will subsequently be examined within 5 days and accepted by the authorities.
- Once the paperwork is authorized, present all legal documents and photocopies. After reviewing all legal documentation, DMC gives a letter of affirmation.
- This is followed by the applicant’s customer confirmation, to which you must respond as soon as possible.
- A Memorandum of Association (MOA) is signed in the presence of the company’s stakeholders.
- Following the submission of the full share capital license and lease will be produced.
- The signing of a lease and an individual sponsorship contract to obtain the license for establishing a media firm in Dubai/UAE.
Things to consider before starting a media firm in Dubai/UAE
Office space requirements
DMC allows investors to start a business without real office space and Free Zones to utilize as your registered company address. It also provides access to Dubai Media City’s commercial centre, which offers visa and document processing, distribution, and mail collection. Businesses in some areas, such as publishing and other associated operations, must maintain physical office space.
Establishing a Corporate Bank Account
Setting up a Corporate Bank Account is a smooth process. It is essential to make sure that you have a bank account. DMC simplifies the procedure for you, and it is the first step you do after obtaining a media firm business license.
Sponsoring
Acquiring a visa for a media firm in any of the zones is simple for you and your dependents, but it must be done appropriately following due process. It is simple to apply for visas for yourself, employees, and dependents if you match special conditions.
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Top Factors for Business Setup in Dubai Silicon OASIS
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Top Factors for Business Setup in Dubai Silicon OASIS
Dubai Silicon Oasis (DSO) is a completely government-owned free zone in Dubai established in 2004. Being considered the only technology park that offers opportunities for people to live, work, and play, DSO has gained popularity among professionals and families. The luxurious lifestyle, equipped with a gym, pools, and other recreational facilities along with the luscious greenery in the region is making DSO indeed an oasis of serenity and merriment.
DSO is constantly maximizing its advantages by providing an integrated ecosystem that fosters entrepreneurship and technology through collaboration and other sustainable practices. Dubai Silicon Oasis has become the major destination for people who seek an all-encompassing community lifestyle. Industries based on the latest technology, ultra-modern infrastructure, and various internal business services, Dubai Silicon Oasis (DSO)makes it easy for people to collaborate, and also for coming up with innovative and highly beneficial solutions that maximize the productivity of businesses.
Major Business activities in DSO
- Technology & Design
- Transportation & Logistics
- Manufacturing & Construction
- Food & Beverage
- Professional Services
- Consultancy
- Hospitality
- Waste management
- Health
- Marketing
- Education
- Tourism
- Trading
Benefits of company formation in DSO
- 100% foreign ownership
- 100% repatriation of capital
- Zero income tax
- No import or export tax
- State-of-the-art IT infrastructure
- Easy, quick, and cost-effective setup process
- Variety of offices and warehousing facilities
- Wide range of IT and technology business activities
- Access to highly talented technical and engineering professionals whenever you need them.
- No restriction on hiring foreign employees.
- No restraints over capital nationality
- Simple customs clearance process
- Speedy processing of employee visa
Types of business setup in DSO
Free zone Establishment (FZE)
- The companies registered by one shareholder can establish a business in DSO.
- An individual or corporate can become the shareholder.
Free zone Company (FZCO)
- The companies registered with a minimum of 2 shareholders can initiate business in DSO.
- An individual or a corporate can become the shareholder.
Branch
- Branch of an already established foreign company or a company in the UAE can register in DSO.
- Business activities performed by the branch must match with the business activities done by the parent company.
Type of licenses offered in DSO
Service license – Companies that provide accounting and business consulting services can apply for a service license. The company can provide only those services that are mentioned in the license.
Trade license – A Trade license allows you to import, export, and trade the items specified in the license.
Industrial license – If your business requires to do activities such as importing raw materials, manufacturing, processing, assembling, packaging, and exporting the final product, then you must obtain the industrial license from the DSO authority.
Business setup process in DSO
Submit an application form
- Register on DSOA’s customer portal.
- Download the application form.
- Add the required details in the application form and submit it.
Submit the pre-approval documents
- Submit the pre-approval documents for review.
- After review, the authority grants the initial approval.
Submit the legal documents and pay the required fee.
Issue E-Agreement
- Issue lease agreement
- The Digital agreement shall be sent to the client’s registered email address.
Submit the signed e-agreement and share capital letter
- Clients must sign the e-agreement.
- Send it back to the authority with the share capital letter (share capital letter is only applicable to FZE and FZCO)
- 0% minimum paid-up share capital.
Issuance of e-license
Required Documents for registering your business in DSO
- Application Form
- Letter of Intent
- Passport Copy
- NOC for UAE residents only
- Audited financial report or Bank statement/reference letter
- Company business plan
Facilities available in DSO
- Warehouses
- Serviced offices
- Industrial lands
- virtual and Flexi desks
- Retail outlets
HLB HAMT to Assist!
Our success is bound to the satisfaction of our clients. With our happy clients across the world, HLB HAMT has become the most advantageous organization entrepreneurs can rely upon. We are diligent in providing transparent and secure services to every kind of business venture. Our experienced professionals will listen to your needs and give suggestions to get things done without any headaches. If you are seeking guidance in setting up your business in Dubai Silicon Oasis, you are in the right place. Give us a call to know more about the procedures and special offers that DSO provides. We are available round the clock.
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Transfer Pricing Leader | Jayakrishnan & Girish Nair | TP Podcasts UAE – Ep 01
January 23, 2023
In this episode” Meet our Global Transfer Pricing Leader – Part 01″ features our experts Mr. Jayakrishnan (Tax & Compliance Partner) and Mr. Girish Nair (Tax Manager) having an insightful discussion with Mr. Carlos Camacho (Global Transfer Pricing Leader, HLB International) regarding the implementation of transfer pricing regulations in the UAE.
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The UAE revises the minimum age for starting a business
Rajesh R Pillai
Phone:- +971 4 327 7775
Mobile:- +971 55 160 1291
WhatsApp:- +971 56 219 1607
Email:- dubai@hlbhamt.com
As per the UAE’s updated Commercial Transaction Law, which is now in effect, it is legal for a resident of the country or any person of sound mind who attains the age of 18 to start a business or engage in trade.
The UAE’s legislation on this subject is now aligned with the majority of international norms since the age restriction has been lowered from 21 years. The age modification will be very helpful for long term planning at family-owned enterprises, in addition to the apparent boost it offers the youngsters seeking an early entry into entrepreneurship.
The following are some of the new Commercial Transactions Law’s most salient characteristics:
- It lowers the legal minimum age to operate a business to 18 years.
- It provides assistance to companies involved in the technology industry and in commercial ventures involving digital sectors.
- To encourage investment and provide companies more opportunity for growth and competitiveness, the law creates a legal standard for commercial transactions for banking firms.
- The law updates rules relating to the formation and supervision of financial institutions and mandates the acquisition of the required licenses in compliance with the country’s securities legislation.
- It promotes Islamic banking as one of the primary development factors in the nation and provides assistance for it.
The age restriction has been lowered to 18 years old to highlight the importance of giving the next generation the freedom to choose how to develop their professions. The updated law also gives teenagers in the nation greater responsibility because more of them want to start their own businesses or become employed.
If you are planning to set up a business in the UAE, HLB HAMT can provide assistance. Our professional team is always accessible to hear about your requirements and plans. We offer suggestions and ideal options to support you in effectively starting your business.
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Offshore Company Formation UAE
HLB HAMT
Phone:- +971 4 327 7775
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Email:- dubai@hlbhamt.com
The United Arab Emirates has opened its doors to business for people to set up offshore companies there. HLB HAMT Business Setup consultants can help you register an offshore company in UAE. We assist you in obtaining incorporation certificates and other necessary approvals to rapidly and securely set up an offshore company. Investors get attracted to the country for a variety of reasons, including the following:
- Laws that are favorable to business
- International financial accessibility
- A good legal foundation
- Highest level of connection and infrastructure
The following are the stages involved in establishing an offshore company in the UAE:
An offshore organization makes it simple to set up a digital office in Dubai, making it an attractive option for worldwide expansion. The procedure of establishing an offshore business is simple.
Pick a company name
It is crucial to give your business a name once you’ve determined its purpose. There are a few factors to consider when naming a firm in the United Arab Emirates.
Apply for a business license
After choosing a name for the company, applicants must fill out an application form and submit some supporting materials, including a well-written business plan, copies of the shareholders’ and directors’ passports, the shareholders’ resumes, and the addresses and identity proof of the shareholders and directors.
Documents to be submitted
After obtaining the relevant paperwork, it is time to submit it to the appropriate authorities, who will review it and provide the required licenses.
Articles of Association and the Memorandum are presented
You must draft the Memorandum of Association (MOA) and Articles of Association (AOA) in English. The firm can begin operations after the authorities review the paperwork.
Opening a Bank Account
By opening an offshore bank account business owners can conduct transactions more quickly.
Pros of Establishing an Offshore Company in Dubai
Many tax benefits
You may keep all the profits from an offshore business you establish in Dubai because it is tax-free. The region’s economy has grown because of the tax reductions, which have attracted investors.
100 percent foreign ownership
Another advantage is that the UAE allows foreign business owners to retain full ownership of their enterprises. You can also do all your business in confidentiality.
Confidentiality
If you want to operate with more discretion, setting up an offshore company in the UAE stands to reason. The directors’ and stockholders’ names are not widely known. Although, you have to inform the Company Registry of these.
Your financial investments are secure
The United Arab Emirates offers asset protection. It varies according to where your business is registered.
Registered Agent required
A registered agent is required for opening an offshore company in the UAE.
Lower operating expenses
You won’t need to rent office space or pay people to be compliant because there are fewer legal obligations for reporting.
Strong legal grounds
A lawsuit could force a business into bankruptcy. Thankfully, if the worst happens, your entire wealth, including your ones, will be secured.
Banks with multi-currency options
Multi-currency bank accounts enable cross-border commercial transactions and provide financial security.
Forming an Offshore Company in the UAE: Required Documents
- Proof of residence
- A resume with the owner’s qualifications
- Passport copy of the designated manager
- A business plan
- copies of the shareholders’ and the owner’s passports
- Memorandum of Association (MOA)
- A bank reference letter and bank documentation verifying the information
Hassle-free, tax-free, and secure offshore company formation in UAE with HLB HAMT
Offshore companies in the UAE benefit from a tax haven unlike any other. Numerous nations offer tax advantages and have a reputation for safeguarding assets and financial data. Offshore companies have been identified as the best and safest tax haven for company incorporation. Offshore companies in UAE are considered legitimate, legal businesses, so you can conduct business anywhere in the Middle East.
HLB HAMT is also a registered agent offering offshore business setup services across several emirates. UAE offshore company formation services are the easiest and most reasonably priced. Offshore business setup UAE packages from HLB HAMT provide speedy, secure, and hassle-free solutions. We assist you in setting up your offshore company by helping you register your business, obtain your firm’s incorporation certificate, open offshore bank accounts, and more.
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Monthly Tax insights and updates – December 2022
January 16, 2023
Phone:- +971 4 327 7775
Mobile:- +971 50 677 5860
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Email:- dubai@hlbhamt.com
Described as a historic step in the UAE’s tax history, the introduction of the corporate tax law is one of the leading hot topics for the month of December.
HLB HAMT presents the December edition of tax insights from our specialists on corporate tax law, evolving tax regulatory reforms, and how they impact businesses across the country.
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Top 10 benefits of an offshore company set up in RAK
HLB HAMT
Phone:- +971 4 327 7775
Mobile:- +971 55 160 1291
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Email:- dubai@hlbhamt.com
The UAE is one of the world’s most popular business locations. Entrepreneurs put their sights on the country’s Mainland, Free Zone, and Offshore areas to establish their businesses. Because of the seclusion and total anonymity that comes with starting a company here, offshore enterprises have become a popular destination for company formation. HLB HAMT consultants as a registered agent help with Offshore Company Formation in Ras Al Khaimah.
Advantages of RAK Offshore Company
One of the most prestigious offshore locations is Ras Al Khaimah International Corporate Center. It is well-known for being one of the most opulent business places. There are various advantages to doing company here, including 100% foreign ownership, tax breaks, and simple renewals. As if that wasn’t enough, a RAK Offshore business may be founded swiftly with the assistance of HLB HAMT Consultants.
The establishment of an offshore company requires the presence of a registered agent authorized by the relevant body. To understand more about business setup in RAK Offshore, our expert consultants help you with the best solutions.
Ras Al Khaimah is one of the most appealing offshore locations in the UAE because the establishment fees are significantly lower than those in Dubai, despite offering the same advantages and benefits, such as complete exemption from all corporate and income taxes.
What types of commercial activities does RAK provide?
RAK serves as a bridge to the global market. The primary business operations that a RAK Offshore firm may do outside of the United Arab Emirates are listed below.
General Trading
Advising and Consulting Services
Holding Firm
Professional Services
Owning Property
Shipping Firm
Company for Ship Management
Services for Global Commerce
If your customers require the firm for Middle Eastern investments, RAK Offshore incorporation is the fastest option. With these business activities, one can flourish and build success. HLB HAMT consultants help you with the right solutions for different operations. We are equipped to help you quickly establish your RAK Offshore Company by guiding you through the complete company formation process.
Documents Required for Offshore Company Setup in RAK
- Shareholders’ and directors’ passport copies.
- Recent utility bill as home evidence.
- Copy of most recent UAE entry stamp.
- Bank letter of reference.
- Business activity.
HLB HAMT to Assist
HLB HAMT is a registered agent with RAK Offshore and one of the market leaders in offshore business consulting. We provide solutions to customers who want to reduce taxes, preserve assets, and limit liabilities. We provide incorporation services in the UAE’s most prominent offshore centers.
If you have all the necessary documentation, it simply takes a day or two to register your RAK Offshore Company. HLB HAMT Consultancy can assist you with company setup in RAK and other services you may require along the route. We believe ourselves to be a company life-cycle consulting organization. So, we’re not just here to help with the start-up; we can also assist with legal advice, paperwork, and other processes that may arise while you’re running your firm.
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Sharjah Airport International Free Zone (SAIF)
HLB HAMT
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The Sharjah Airport International Free Zone (SAIF) is one of the free zones in UAE that fashioned business development in the non-oil industry in a broad manner. Investors across the world view SAIF zone as the ideal place for their company formation after witnessing the incredible increase in the number of companies established there in a short span of time. The journey from just 55 companies in 1995 to more than 8000 companies from 165 countries at present, Sharjah Airport Free zone (SAIF) has emerged as the most favorable destination for setting up businesses. Being adjacent to the Sharjah International Airport and the seaports on the Gulf of Oman (Port Khor Fakkan) and the Arabian Gulf (Port Khalid), the SAIF zone offers the best infrastructure and networking facilities for any kind of business to thrive in. By focusing on bringing maximum efficiency in business, SAIF zone offers numerous competitive benefits to goal-oriented entrepreneurs to manage their businesses with ease.
Benefits of launching your business in SAIF
- SAIF guarantees the release of licenses and permits within 1 hour
- Availability of budget-friendly on-site labor accommodation
- 100% Foreign ownership and repatriation of funds without currency restriction
- Global and regional transport facilities with high-class sea, land, and air connectivity
- No corporate income taxes
- No personal income taxes
- Complete tax exemption from all import and export obligations
- Visas and sponsorship for all the members in the organization
- Easy and simple business setup with state-of-the-art infrastructure that aids your needs
- Open doors to more than 2 billion customers Strategic location
- Full time direct phone line setup and emergency service
- On-site customs for fast clearance of goods
- Telecom and computer services
- Immigration and custom office
- Competitiveness in fee, property, and management
- Availability of different plot size
- F&B outlets at SAIF mall
- 24 X 7 Operations
Types of licenses in Sharjah Airport International Free zone (SAIF)
Business setup in Sharjah Airport International Freezone is a simple and time-saving process that provides cost-effective license packages for various small-scale and large-scale entrepreneurs as per their needs and requirements.
Trade license
Two major trade licenses are there.
- Commercial License (standard) – The Standard Commercial License encompasses import, export, delivery, merging, storing, or warehousing of a full range of items of 3 similar product line
- General Trading – A general trading license can be acquired under a commercial license which allows your business to cover a wide range of products such as export, import, re-export, supply, storage, or warehousing.
Service license
The holder of the service license can perform the services specified in the license. All kinds of services are permitted by the local or federal authorities. E-commerce, Business consultancy Shipping, & Freight Forwarding are some examples.
Industrial license
This license comprises import of the raw materials, treating, manufacturing, handling, assembling, packaging, and exporting the final product. Approval from SAIF Zone Health & Environment Department is mandatory to obtain the license.
Types of Offices in Sharjah Airport International Free zone (SAIF)
SAIF Zone provides offices that are suitable for both small-scale and large-scale businesses.
SAIF Office
- A well-equipped, economical furnished space with advanced IT/telecommunications facilities that can be used all day and night on a non-sharing basis
- Ideal for consultancy services.
- 3 visa quotas included
SAIF Executive Office
- A semi-furnished space that includes utility charges such as air conditioning, electricity, water, and an advanced IT/telecommunication infrastructure.
- The space is customizable
- Ideal for commercial and consultancy services.
- 5 visa quotas included
SAIF Suite
- A fully furnished space combined with an executive suite office with advanced IT/telecommunications facilities.
- Ideal for commercial, service, and consultancy businesses, secretarial and business center services.
- 8 visa quotas included.
Types of Legal Entities in the Sharjah Airport International Free zone (SAIF)
Either individuals or a corporate entity can set up business in the SAIF zone in any of the following legal forms:
- Branch of a Foreign Company
- Branch of a UAE/Local Company
- Free Zone Establishment (FZE)
- Free Zone Company (FZC)
Start your business in Sharjah Airport International Free zone (SAIF)
The main steps for setting up your business in SAIF Zone are given below
- Select your type of license
- Select your type of facility
- Submit your filled application along with your passport, passport-size photo, residential address, and contact number to the concerned authority
- Prepare and submit the company’s Memorandum of Association
- Pay the license fee
- Open a corporate bank account
- Apply for further clearances such as custom registration
Once the registration is completed, ensure to collect the following documents
- License
- Certificate of Incorporation
- Memorandum and Articles of Association
- Investment Service Agreement
- Share Certificate
- Lease Agreement
HLB HAMT to Assist
Do you want to know more details regarding setting up business in Sharjah Airport International Free zone? We are here to help you. Our experienced team will give you a better understanding of the specific rules and regulations that you need to follow in setting up your business in the SAIF zone. Though business registration in the SAIF zone is not that complicated, if you are not well-versed in the laws, your application may get rejected. Our dedicated team will provide you with quick and reliable information to start your business in the SAIF zone by satisfying all your business needs. We will suggest your ideal company formation package and guide you throughout the process to open your business venture in the SAIF zone confidently. Shoot your mail and contact number today itself.
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Top 6 things you need to know about trade licenses in Dubai
HLB HAMT
Phone:- +971 4 327 7775
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One of the first stages in realizing your ambition of starting a business in the world’s most renowned economic metropolis is to obtain a trade license in Dubai. The business setup services in Dubai give people a variety of possibilities, including free zone company setup in Dubai, mainland, and offshore company formation in Dubai.
It is required to go through the entire procedure before opening a business in Dubai, beginning with registering your trade name in Dubai and finishing with the launch of your enterprise. To complete the process, you must get a General Trading License in Dubai based on your selected company structure and business operations. However, let’s start by understanding what a General trade license in Dubai is.
Trade License in Dubai: A Quick Rundown
You must have the necessary permissions for undertaking commercial operations while establishing a corporation in Dubai. A trade license in Dubai permits you to engage in the majority of activities. The Dubai Economy & Tourism (DED) issues the trade license. It also goes by the name “general trade license” and permits the following actions:
- This license acts as the entry point for importing and exporting goods into and out of the UAE for companies formed in Dubai’s mainland or free zone.
- You can sell goods and services in Dubai’s several emirates if you have a license.
- Professional services like hospitals and art galleries also require it.
Authorities for Trade License in Dubai
The Dubai Economy & Tourism with institutional assistance from the Dubai Chamber of Commerce & Industry, is the statutory authority that oversees and controls the licensing procedures for an organization in Dubai. However, ministries and other authorities must approve licenses for some types of businesses, such as
- The Central Bank of the UAE for financial institutions and banks.
- The Ministry of Economy and Commerce for insurance companies and related agencies.
- The Ministry of Finance and Industry for manufacturing.
- The Ministry of Health for pharmaceutical and medical products.
- Businesses involved in the production of oil, gas, and associated products are subject to more thorough processes.
Types of trade license
- Commercial licenses encompass all types of business activities.
- Professional licenses include a wide range of professions, services, craftspeople, and artisans.
- Industrial licenses are for starting a manufacturing or industrial operation.
- Dubai cherishes tourism so much that it maintains a special license for enterprises in the tourist industry. As a result, this industry has its laws, regulations, taxes, compliance, and permits.
- Additionally, under specific conditions, the Authorities provide various special licenses, including business operation permits and entrepreneurial business licenses.
The Advantages of a DED Trade License
As the UAE strives to attract more foreign direct investment, the DED trade license offers significant benefits to investors and business owners.
Import duty is minimal
Paid-up capital is not required
Profit and capital are both fully repatriable
A wide range of banking advantages
Tax-Free zone
Provides a portal for both domestic and international trade
What are the procedures for acquiring a trade license?
Before starting any business in Dubai, the processes listed below must be followed to fulfill the legal requirements of all relevant government authorities and to ensure maximum commercial profit for the business owner.
- Choose the appropriate category for your company: commercial, industrial, or professional.
- Determine all of the associated business operations that are covered by each business license (Maximum 10 per license).
- Choose your company’s legal status in the UAE.
- Choose an acceptable trading name for the company.
- Send an application to the Department for preliminary approval.
- After gaining first approval, register your trade name (if you haven’t already registered).
- Lease commercial premises and obtain permission from the Authority.
- Prepare the appropriate documentation, such as memoranda of association and permits from other relevant government agencies, as applicable to each case.
- To receive the last license, submit one further application to the Department.
- Pay the required amount.
Renewal of Trade License
Without renewing the trade license, one cannot conduct business in Dubai. HLB HAMT provides all the help you need to renew the trade license in whatever form you require. We’ll email you a reminder when it’s time to renew your license.
HLB HAMT to Assist!
Our extensive experience and in-depth local knowledge enable us to understand your company’s requirements. As a result, we are in a position to provide the best options and guarantee that your firm is set up with the least amount of difficulty and work. We take care of the technicalities so you can focus on the essential things, especially your business.
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