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Business Setup and Company Information (DED)
In the U.A.E., a Trade License is a legal requirement in order to set up a business and trade your products and services. Issued by the department of economy a government department agency where the application process is sometimes complex in understand which type of trade license is required. SWITCH BUSINESS SERVICES has introduced our licensing services to help all types of business to renew their trade license or request for a trade license. You can enjoy complete piece of mind knowing that everything will be taken care of for you.
8 Basic steps to setup a business in Dubai with SWITCH BUSINESS SERVICES
Starting a business in Dubai involves six procedures to be completed in eight days on average
Starting a business in the UAE should not take you more than a week once you've sorted all your legal procedures.
But before you start your legal formalities, you need to consider some elements required in the process:
1. Type of business
Your type of business will determine the kind of license you require. Whether it's commercial, professional or industrial licenses, these will define the basis of your operations. However, while selecting, remember that certain activities such as food trading, jewellery trade, veterinary activities and legal consultancy require further approvals from other governmental departments.
The Department of Economic Development (DED) in Dubai has a list of over 2100 activities you can choose from. If you're unable to find your specific one in there.
As a foreign national, if you'd like 100 percent ownership of your company, you need to opt for a license and location in one of the many free zones of the UAE. There are specific kinds of activities that each free zone caters to and clarity in the first step will help you find your best option.
There are 45 free zones in the UAE;
If you need a local license or need to operate locally, you have to get a license from the Department of Economic Development (DED). The DED license comes with certain restrictions on share of ownership for foreigners.
3. Legal form
Depending on your location and type of business, there are rules regarding the make-up of your firm. For example, if you plan on a legal consultancy firm, this can be done only as a branch of company or as a stand-alone company. A sole proprietor is not allowed to take up this activity. Each free zone has its own restrictions regarding company structure and you can look these up on the official website of the zone.
4. Trade Name
Your trade name is a very important part of the legal procedure. The company name should ideally indicate the nature of business, unless it is a branch of another company. All the rules regarding trade names can be checked with us .
5. Share capital
Minimum share capital is usually set out in the Memorandum of Association of your proposed company. In most cases, you do not need to pay minimum capital at the time of setting up.
Once you have your legal procedures and forms ready to go, it would be best to shortlist some offices with costs and other details. This would mean a clear path forward once you get your legal formalities out of the way. In free zones, you will get assistance to find premises suitable to your requirement along with help to set up electricity, internet, water and other amenities.
Be on board before your registration is approved. But in other cases, you may not be allowed to hire at all. For example, Intelaq license holders (license for home- In most legal forms of the DED, you need to hire a manager to oversee operations and have him ready to based Emirati business owners) are not allowed to hire staff, but can engage contractors. For free zones, each zone has its own specific regulations regarding the structure of business.
8. Local Support
For DED licenses, it is mandatory to have a local agent, partner or sponsor and this is a great support for foreign nationals. For free zones, having a local contact can help take the business forward effectively. However, this is not mandatory and Dubai as a business destination boasts easy set-up for all businessmen regardless of nationality.
PRO Services Monthly or by Application
Our consultants are experience in PRO services; and well aware of the employment laws in Dubai and free zones. We provide PRO service to companies in a wide range of industries; that is across UAE and in all UAE free trade zone. We are working with all government and as well as semi government department; that is to legalize the process of document clearing; and PRO services in Dubai to our clients. We know all the formalities and requirements of all the government departments. Note this that our PRO Services Dubai will save your time as well as money. Business owners face many challenges; that is when it come to point where they deal with government authorities.
We offer you the opportunity to sit back and relax, while we prepare application for your employee and your family ,and submit them process on your behalf ,
The necessary government relations will be taken care of by our experienced Public Relations Offices (PRO).
Free-Zone Business Setup
Free zone company formation Dubai is much better option for those who does not want the overhead of local partner. Free zone company setup allow investor and owner of the company to do business by their own style. Dubai Free-zone company setup has come in action according to a specific business need, and offer licenses to companies and entities within those classifications.
If you want to have 100 per cent ownership of your company, regardless of type of business, you need to opt for a license and location in one of the many free zones of UAE.
They are designed to encourage foreign investment with easier start-up processes, labour and immigration procedures, 100 per cent ownership for all nationalities and other legal services. Each free zone has its own authority and its own rules, which are applicable to investors looking to set up firm in those zones.
1. Allows 100 per cent foreign national ownership of firm with no requirement of local sponsor or local service agent.
2. Waiver of corporate taxes (time-bound and renewable for further periods).
3. Exemption from personal taxes as well as import and export taxes.
4. 100 per cent repatriation of revenue and profits.
5. Documentation is less and more suited to foreign investors.
6. Long-term leasing options (up to 25 years) available at great terms to investors.
7. Recruitment and workforce processes are simplified, faster and cheaper.
8. Easy availability of legal, housing, immigration, labour and other facilities.
9. Incorporation is faster than when done outside free zones
10. 100 per cent free transfer of funds
Local Sponsorships and Local Agents
SWITCH BUSINESS SERVICES : Appoints a UAE person of as the local sponsor or the services agent according to license legal type as per UAE commercial law,
At our company we insure proper support and availability of local sponsor or services agent which will guarantee peace of mind and smooth operations of our customers.
All the documents which are intended to use in United Arab Emirates require legalization or attestation. SWITCH BUSINESS SERVICES provides attestation services in Dubai to our clients to ease their day to day business needs in Dubai, UAE. In UAE the attestation process most widely adhered for issue of Visa, residency permits or work permits and generally involves attestation of educational certificates, marriage certificates and power-of-attorney documents.
SWITCH BUSINESS SERVICES is proud to introduce itself in serving all types of translations needs of any type companies in Dubai, UAE. With our in-house qualified translators, we offer 100% guarantee of accurate and perfect translation. We handle all types of document translation services in the most timely and effective manner. Our expert legal translators are capable of handling all kinds of legal documents, such as contracts, marriage, certificate, home leases and more.
Value Added Tax (VAT)
The UAE aims to implement the Value Added Tax (VAT) along with the other GCC member states from 1st January 2018. A standard rate of 5% is applicable. The Federal VAT Law (27th August 2017) establishes the domestic rules with applying VAT in the UAE. The VAT Executive Regulations are in the process of being approved.
* Lack of understanding of VAT rules & regulations.
* Compliance issues
* Lack of resources (Availability of experts)
* Improper book keeping system
We at Switch Business Services will help you with the implementation of VAT among your operations and VAT accounting.
The following are the services that we offer in regards to VAT:
* VAT implementation and preparation of Chart of accounts in your current accounting software.
* Assistance for VAT registration
* VAT Accounting
* Assistance for monthly VAT Payment
* Assistance for quarterly VAT return filing
* Assistance for VAT auditing
Collection of VAT
It is an accountability of the companies to document thoroughly their business revenue and expenses along with associated VAT charges. A prevailing VAT rate will be applied by registered businesses and traders to all of their customers to bear the VAT costs on goods and services bought from suppliers. The difference between these figures can be reclaimed or paid to the government. VAT is a consumption-based tax, it will be applied to the most of the transactions of goods and services except those that are exempt by law.
Exemption from VAT
Following sectors are exempt from VAT
* Financial services listed in VAT legislation;
* Residential properties;
* Land without any assets; and
* Local passenger transport.
VAT will be applied at 0% rate for the following categories:
* Exports of items and services to the markets outside of GCC region;
* International transportation and other relevant goods and services;
* Aircrafts, ships, and other air, sea, and land means of transportation;
* Investment grade precious metals such as gold, silver of 99% purity;
* New residential properties for the period of three years of their construction supplied for the first time;
* Education services and other related goods and services; and Healthcare services and other related goods and services.
Minimum Sales turn over for registering Tax:
Businesses with taxable supplies worth more than AED375,000 need to register for VAT. Moreover, businesses with taxable supplies worth more than AED187,500 and less than the mandatory registration threshold of AED375,000 may opt for voluntarily registration for VAT. This option is developed to give the opportunity for start-up businesses to register for VAT whilst they still haven’t generated the revenue.
Responsibilities of Business Firms:
All businesses in the UAE will be required to keep an accurate and up-to-date record of their financial transactions. It’s mandatory to register for VAT for businesses that meet the minimum annual income requirement based on their financial records. Businesses that fall under the category of “VAT- registered” must retain their financial records in case if their registration is required in the future.
* VAT- registered businesses should collect VAT on taxable goods or services they provide;
* VAT- registered businesses are entitled to reclaim any VAT paid on their business- associated goods or services; and
* VAT- registered businesses should maintain their business records for the relevant government departments to verify the accuracy of VAT calculation.
If your company is registered for VAT, you must notify the concerned government department on regular basis on what amount of VAT was charged and paid by your company to the government. It will be an online process to simplify a formal submission.
If there is a difference in VAT amount you’ve charged and paid, you have to clear the outstanding amount in the relevant government department or reclaim the difference in case if you’ve paid more VAT than you’ve been charged.
VAT will be applied starting from January 2018. Thus, concerned businesses will be given the opportunity to prepare beforehand as online registration for VAT will be launched in the 3rd quarter of 2017. This time frame allows the companies to align their business model with the government platform specifically created for the collection of VAT. Businesses have to ensure that they meet all compliance requirements to get ready for taxation. To follow VAT compliance standards, businesses may require restructuring their divisional system in Accounts, IT, and HR departments opening new positions such as accountants and tax advisers. Businesses have full accountability for VAT compliance obligations. A complete guidance on VAT compliance will be provided once the legislation is released.
The online registration for VAT will be launched in the 3rd quarter of 2017 for those who are willing to register voluntarily beforehand. Early registration will give an advantage to the businesses to prepare thoroughly for compliance with VAT obligations.
VAT returns Filing
According to VAT legislation procedures, VAT-registered businesses are required to file VAT returns consistently with Federal Tax Authority on a quarterly basis (during 28 days from the end of the taxation period). To simplify the process, VAT returns filing can be done online through e-Services implemented by the UAE government.
Track Record of the Documents
Taxpayers should keep a track of issued and received VAT invoices for a minimum of five years.
VAT in real estate sector
It will be applicable only for commercial properties. All commercial properties transactions, sales, and leases alike will be subject to 5% VAT. Residential properties are exempt by law for the time being to offset additional amount to the irrecoverable cost paid by the buyers upon acquiring a new property. Real estate developers will be zero-rated for a period of three years of residential property construction. It will allow securing the market on the residential side. Zero-rated goods and services are VAT taxable but the actual tax charges are zero.
Imposition of Penalties
Noncompliance will lead to the imposition of penalties. Penalties may be caused by the following actions:
* Failing to register for VAT if required;
* Failing to submit a VAT return or settle a payment before the deadline;
* Failing to retain the records required by the legislation; and
* Tax evasion offenses caused by the intention to violate the terms of the tax legislation.
SWITCH BUSINESS SERVICES has many years of experience in typing services and providing quality services to our customers at competitive rates. We are authorized to submit the online applications to Dubai Naturalization and Residence Department (DNRD), Emirates Identity Authority (EIDA), Dubai Health Authority (DHA), Dubai Municipality (DM).
Dubai Naturalization and Residence Department (DNRD)
We support our clients to prepare their application for Dubai Naturalization and Residency Department (Immigration). We prepare applications such as new or renewal of Entry permit and new or renewal of Residence Visa.
EMIRATES IDENTITY AUTHORITY (EIDA)
All the expatriates must register for Emirates ID before stamping their residence permit. EIDA issue emirates id for 1 to 3 years as per their residence permit. We do the applications for new or renewals, modify, lost and replace of Emirates ID.
Dubai Health Authority (DHA)
Dubai government ensures the health of people who lives in Dubai with the support of Dubai Health Authority. We do the following applications for DHA
Open Bank Account in Dubai
To open bank account in Dubai and for business bank account opening in SWITCH Business Services is your best choice. SWITCH Business Services is an experienced business consultancy firm offering complete range of business solutions for our clients to set up their businesses in UAE. We assist you in wide range of services such as buying business and selling business in UAE, company registration, bank account opening, visa processing and other professional services. If you hire our business consultancy services for opening a bank account, you can ensure utmost satisfaction and will save yourself from all the associated difficulties.
Opening bank account for onshore as well as offshore companies takes a lot of time and energy. With years of experience, we have a large choice of banks in UAE to help our clients with any kind of requirements. SWITCH Business Services is here to help you with the entire process of bank account opening in Dubai.
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