Dubai is one of the fastest growing business hubs in the world. Each year the Dubai Department of Economic Development issues approximately 50,000 new business licences to investors from around the world and despite the challenging economic conditions caused by the COVID-19 pandemic, the emirate continues to go from strength to strength with many entrepreneurs seeing the city as a prime location for growth and expansion into new markets.

The global pandemic has forced businesses to adapt to new ways of operating which has given rise to an increased reliance on technology and an increased use of remote working models. This has altered the way that many companies approach their use of office spaces.

A remote work report conducted by Owl Labs State in 2021, revealed that 56% of global companies allow some degree of remote work, while 16% of global companies have transitioned to a fully remote model.

Dubai has been quick to recognise this trend and respond to it, and now offers investors several business licences that waive the usual requirement of securing office space in order to register and operate a business in the emirate.

What are the benefits of setting up a business without physical office space?

The primary benefit is cost savings. On average businesses spend between 5% and 10% of their gross revenue on office space so the opportunity to avoid this expense can be very helpful, especially when businesses are just starting out and cash flow is low.

Another advantage is flexibility. Having more freedom with regard to working hours and location can increase productivity and allow for a much better work-life balance which in turn leads to improved employee and customer satisfaction.

Finally, establishing a business without physical office space can make market entry significantly easier and quicker. Not having to deal with administrative burdens such as leasing contracts, managing utility bills and office maintenance can free up more time for entrepreneurs to focus entirely on building their businesses.

Which business licences in Dubai don’t require physical office space?

There are now several types of business licences that can be obtained without physical office space. The following are some of the most popular:

1. Freelance Permit

The Dubai freelance permit allows its holder to practice a wide range of activities including media and communication, education, consulting, fashion, design, architecture and ICT. There are a number of jurisdictions within Dubai that offer freelance permit such as Dubai Media City, Dubai Knowledge Park, Dubai Design District and Dubai Internet City.

Each free zone has its own rules and regulations for obtaining a freelance permit, so it is important to research the requirements before applying.

2. E-commerce Licence

According to a report by Dubai Economy, the e-commerce market in Dubai was estimated to be worth AED 18.2 billion in 2020 and is expected to grow further in the coming years. This growing popularity reflects the increased consumer confidence and familiarity with e-commerce platforms and online shopping.

The Dubai e-commerce licence is now available in several prominent free zones such as Dubai Multi Commodities Centre, Dubai Silicon Oasis, Dubai Commercity and Dubai South, and can also be obtained in Dubai mainland from the Department of Economic Development (DED).

3. DED Licence for home-based businesses

The DED provide licences which are suitable for businesses that can be run from home, such as consultancy, tutoring, or small-scale manufacturing. Options include the e-trader licence or the instant licence, both issued by the Dubai Economic Department.

It is worth noting that there are certain restrictions for home-based businesses on the mainland, so it is important to check with the DED on the types of home-based activities that can be conducted from residential premises before going down this route.

4. Offshore Company Registration

 This type of registration is ideal for businesses that operate outside of Dubai but want to establish a presence in the UAE. Benefits such as reduced tax liabilities, asset protection and ownership confidentiality make it a good choice for established businesses that want to explore international expansion with fewer requirements and restrictions than exist with a mainland setup.

The most prominent jurisdictions that offer offshore structures without a physical office requirement are Jebel Ali Free Zone and Ras Al Khaimah International Corporate Centre. Both offer lower setup costs when compared to mainland companies, but it is important to note that they only allow for business activities to be conducted outside the country, not within the UAE market.

Final Thoughts

All of these business licences offer a great deal of flexibility and cater to the evolving needs of modern, digitally based businesses. However, each jurisdiction has its own rules, regulations and operating requirements, so it’s important to consult with a reputable corporate services provider in Dubai to find the licence that best fits your business needs and ensure you’re fully compliant with all legal requirements.

How can Emirates Zone help?

 We are the leading foreign investment consulting firm in UAE with over 10 years of professional experience offering investment consulting services to corporations, investors, start-ups, and small-medium enterprises across Abu Dhabi, Dubai, and other parts of the Middle East and North Africa.

We have unrivalled expertise and experience across a variety of services like regulatory compliance, tax structuring, operational and risk management, fund creation, and fund due diligence, and our team of experts are committed to helping you achieve your business and investment goals.

If you need help with business setup or any other investment matter in the UAE or wider GCC region, don’t hesitate to get in touch with us at +971 2 6666676 or +971 50 1346022, or email us at info@emirateszonecr.com and we will be happy to assist.

The post Business licenses in Dubai that don’t require physical office space appeared first on Emirates Zone Companies Representation.

4 Ways to take Advantage in UAE

Should we crash the plate? Not yet, say analysts.

Oil & Gas sector worldwide, took a beating as crude oil prices plunged to a 34-year low earlier this week, in the wake of the coronavirus pandemic. Facing one of the biggest selloffs in crude oil history, analysts worldwide are predicting a comeback. The demand for crude oil is expected to be up again once the peak (read worst) of the pandemic is seen off (any time in the next 2-3 months), and matters, inevitably, return to normalcy.

The negative demand does not affect the GCC, and definitely does not get paid for filling up petrol in car.

Here are 4 ways you can take advantage of the temporary dip:

1. Invest in Oil & Energy Stocks:

The UAE supports both individual and private sector investment in Oil & Gas through:

• • Centrally regulated stock exchanges, financial centers and exchanges such as Abu Dhabi Global Market (ADGM), Abu Dhabi Securities Exchange (A.D.X), Dubai Multi Commodities Centre (DMCC), Dubai Gold & Commodities Exchange (DGCX) etc.
  • Privately managed and centrally registered investment planners, wealth management firms, stock brokers and traders.

2. Get ICV Certified / Re-Certified:

• • A good In-Country Value (ICV) Score, in line with industry standards, is crucial to bagging reputed government tenders and projects.
  • The ICV has a validity of 14 months from audit. Post expiry, an ICV Improvement Plan has to be charted and Re-certification procedure to be followed.
  • Taking into consideration the time required for auditing and processing the ICV (45-60 days), this interim period is ideal for getting your firm ICV Certified.

3. Partnership with Reputed Suppliers / Contractors / Sub-Contractors:

• • If your firm is a direct supplier to ADNOC, this is a good time to forge partnerships with long-established vendors and contractors of ADNOC.
  • Reputed vendors have an In-Country Value (ICV) Score that would be above-par the industry standards.
  • The nuances involved in the calculation of ICV guarantee a mutually benefiting reflection of score on supplier-contractor partnerships.

4. Register with ADNOC as a Supplier / Vendor:

• • If your firm is yet to register as a direct supplier, there is no better time than now to begin the process.
  • Only registered suppliers enjoy eligibility to submit bids directly, as they are invited by ADNOC to submit proposal/quotations for floated tenders.
  • The registration process follows a sequence of operating procedures involving policy implementations, documentation, application, submissions, approvals and qualifications.
  • This process is spread over eight major milestones and two key phases and could be a tedious and time-consuming process for first-time users. In seasoned hands, the registration could be accomplished in as little as a few weeks’ time.

The post U.S Crude Oil Price Plunge: Is it Advantage UAE? appeared first on Emirates Zone Companies Representation.

One of the primary reasons why your business may want to outsource the PRO Services is when it requires skilled expertise. To allow you to focus on your core mission in providing a high quality product and service to your customers. Because we know Workload increases with additional non-core functions and outsourcing PRO tasks to people who can perform it better makes sense.

Staffing Flexibility

Outsourcing The PRO Services provides a level of continuity to the company.

For instance, your PRO is on extended medical sick leave and his backup is leaving for a new job or in annual leave. Outsourcing the PRO function reduces risk and allows the company to keep operating while the indoor PRO unavailable.

Maintain Operational Control

Operations with rising costs should be considered for outsourcing. Departments that might have evolved over time into uncontrolled and poorly managed areas are good candidates.

Emirates Zone can often bring better management skills to your company than what would otherwise be available without significant restructuring.

For example, let’s say your PRO department has too many transactions, not enough people, and a budget that far exceeds its contribution to your organization. An outsourcing agreement with Emirates Zone will force management to prioritize their requests, and spending back under control.

Cut costs and save BIG!

All the benefits listed above come with the bonus benefit of lower cost and big savings! When you outsource PRO services to a low-cost service provider, you are getting access to quality services that are offered at a much lower cost (You can save up to 60% costs)!

The post Outsourcing PRO Services Advantages & Benefits With Emirates Zone appeared first on Emirates Zone Companies Representation.

The Business-friendly environment OF UAE, as well as its safety, security, and connectivity to about 180 business-oriented countries, makes it stand out as the top preferences of investors, who have, as a result, settled into making UAE a second home. In a bid to explore the myriad of opportunities it presents, investors have created a bond of unbreakable link, to ensure there is maximization in connectivity.

However, establishing a business in UAE engages a lot of procedures and formalities. Proper documentation and approvals is a criterion that cannot be compromised through any means. Getting the proper documentation and approvals usually put business owners through much stress because it is multi-faceted and time-consuming. However, a solution-based approach to getting the required documentation and approvals without engaging in the associated stress lies in opting for the best pro service in UAE. 

It is essential to note that Public relation work is a fundamental and essential activity of Companies in UAE for the following processes:

• Business setup
• Company formation procedures.

About Us

Our market research, analysis, and client survey indicated that a lot of hassles, as well as time-devotion, are encountered by investors as they engage in the following:

• Record Keeping
• Follow up of renewals & expiry dates, 
• Updating the rules of the Labor,
• Immigration,
• Chamber of Commerce & other Government institutions.

Also, many working hours, workforce, the expense towards salary, transportation, accommodation, gratuity, insurance, of employees are involved, along with setting up companies.

This is why Emirates Zone has stepped into the scene to make the scheme of things easy and smooth. Emirates Zone, one of the best PRO services in Dubai, and it simply acts as a single-window solution to all PR activities of any Company. Emirates Zone does not ordinarily do this; it ensures that professional and reliable assistance is provided.

Interestingly, Emirates Zone is one of the top business consultants in UAE and, correspondingly, one of the most preferred PRO service providers in the UAE. We include a team of well-trained, skilled and competent PROs, who are capable of providing the best pro service, which would fully encapsulate carrying out all the PR related work in a systematic and organized manner.

We provide professional PRO service to new as well as established businesses in UAE, and we also ensure that entrepreneurs receive proper guidance in Freezone, LLC, or offshore company setup. We are trustworthy and dependable. With this assurance, clients trust us to handle their PROs.

Why it’s vital for every business

Legal procedures requires complete understanding for the registration and setting up of a company. One major advantage we offer our clients is that our PRO services can speed up the registration process of a company, thereby eliciting peace in the minds of our esteemed clients.

 Benefits of outsourcing PRO Services:

• 50% Cost saving on your HR budget.
• Time-saving: Our experienced and specialized PROs complete any of the company transactions before the deadlines, thereby saving time and resources.
•  Fixed fees with no extra cost: Unlike in-house PRO expenses such as Travel expense, PRO visa expense, fuel or telephone expense, office desk, and other miscellaneous expenses, we offer services at fixed fees with no form of additional costs.
• Upon signing a monthly or yearly contract, a dedicated account manager and PRO will be assisting your company.
• Free Business Intelligence reports Monthly status of company visas and government transactions and updates about company labor laws.
• 100% guarantee of zero fines on company labor and immigration transactions, due to well-planned procedures and preparation of the documents aligning with UAE commercial and labor laws.

How can we help you?

Our professionals team consists of experience PRO who has gained extensive knowledge of UAE’s laws for businesses. Our PRO team able to provide expert assistance to clients, enabling them to complete requirements through an efficient, organized, and hassle-free process.

We are fully qualified to handle various corporate requirements, from processing investor, employment and family visas, to the application and renewal of trade licenses and Emirates IDs. With our team working with you every step of the way, you get reliable and well-thought advice on administrative, financial, and legal matters to empower you to make smart and informed business decisions. 

Our suite of PRO solutions aims to streamline processes for our clients and generate cost-savings while reducing the risk of errors, delays, and unplanned expenses. We have established a broad presence in UAE, with specialists dedicated to working with clients in various industries and Emirates.

We offer a range of services like:

• Employment visas in Abu Dhabi mainland
• Employment visas in all the free zones
• Family visas
• VIP services for medical
• Renewal and cancellation of visas
• Maid visas
• Visas cancellations
• License renewals
• Change of local partner
• Documents attestation from Ministry of foreign affairs
• Mail collection
• Documents attestation
• Documents attestation from Foreign affairs / Ministry of Justice/notary.
• Documents attestation for Chamber of Commerce
• Processing of new employment visa and renewal of old
• Employee Labor and immigration cards
• Attestation Services in Abu Dhabi, UAE
• Processing of new investor Visa and renewal of old
• Processing of Spouse and family visa and its renewal
• Registration of a new Trade License
• Trade License renewal
• Employment visas for all free zones
• Arrangement of visit visas and its extension
• Documents processing from Abu Dhabi Municipality and the chamber of commerce.

We also provide pro services on a case to case and retainer basis depending upon the client’s requirement, and we deliver excellently, without any form of compromise in standards and quality.

The post PRO Services – How Outsourcing Can Cut The Cost of Your Business appeared first on Emirates Zone Companies Representation.

For more detailed information on the costs of setting up a business in Abu Dhabi, read on about the necessary steps and licensing.

Factors that may affect the total cost

1. The business structure: The legal structure of the business will impact how much it costs to set up and keep a business running. A business could be a sole proprietorship, LLC sole establishment, LLC company, or company branch. 
2. The company’s services: the kind of activity your company focused on is an important factor because it determines what kind of licensing is required. The business may engage in commercial activities, industrial activities, or may offer professional services. 

Licensing required to do business in Abu Dhabi.

Licensing required for every business may differ depending on your business structure or nature of its services. All the licensing listed here are mandatory for their applied fields, the services of a professional company may be required during the licensing stage to ensure that everything is done accordingly and budgeted. The cumulative costs consist of one-time fees and continuous payments. 

1. Initial Approval from DED: DED stands for the ‘Department of Economic Department”, they are responsible for approving in registering business operations. The DED charges a one-time nominal fee before approving to start a business’; however, this initial approval is only valid for six months, during which you are expected to finish the other necessary documentation. 
2. Trade name approval: Asides the legal business name registered, a trading name is a name a company prefers to be known/identified as, and this name must be approved and registered before it will be used. The cost of getting a trading name approved is a one-time payment, and it also varies depending on your instruction. Fees for reservation, commercial name, foreign company name, etc. may constitute the cumulated trade name fees 
3. Renting office space: Businesses are mandated to operate within a recognized office space so that authorities can easily verify their legitimacy. This way, authorities can easily inspect and monitor business operations as well as ensure that they adhere to immigration laws. The schedule of payment intervals occurs as per the rental agreement, which could be yearly or termly. 
4. Attestation Memorandum of Association MOA: The company’s Memorandum of Association must be drafted. It incurs a one-time cost and is usually done among the company’s shareholders and may vary according to their share capital. 
5. Drafting LLC contract: Every limited liability business contract drawn in Abu Dhabi is required to be drafted in two languages – English and Arabic to enhance understanding between partners. The contract must have mutually consented among the partners, and the charge is separate from that of the interpreter. 
6. DED fees: Business setup required DED charges licensing fees. Which are made up of 5 different feeses, some of which are one-time while others are yearly, and they all add up to the total costs of setting up a business in Abu Dhabi.

•  Mainland trade licensing fee: This is a one-time expense paid to acquire a trade license, and the cost depends on the business activities. The relevant authorities monitor business activities, and these regular checks may incur other charges.
• Commercial licensing fee: The commercial licensing fee is a yearly fee charged for carrying out business activities; it is also called the Tejari fee.
• Chamber of commerce fee: The chamber of commerce fee is an annual fee paid by businesses, and the amount depends on the business activities. Usually, companies are told the amount for general trading, but manufacturing and industrial companies will pay a different price. 

• Commercial service improvement fee: The commercial service improvement fee is a yearly fee paid for all improvement works by the government.

• Administrative service fee: The Administrative fee is a one-time fee paid to DED for the paperwork carried out. 

7. External approval: Depending on the business’ activities, you may need approval from other governmental bodies, especially for professional services like transportation services, Oil services, etc. 

8. Getting Immigration Cards

After licensing, you will need to acquire the necessary cards required to get a visa. They are 

1. Immigration establishment card: Immigration card must be applied for by the company owner to enable them to employ staff and process their Resident Visas. Yearly renewal of this card is a necessary, failure of which may attract penalties. 
2. Labor establishment card: Upon application at the ministry, a labor establishment card will issue with a registration number that permits companies to apply for work permits and visas for their staff. 
3. E-signature card: A card with a code is issued to authorized signatories of companies to be used to carry out every transaction within the ministry. This card system is a more efficient replacement for the previous Signature Authorization Card Scheme. 

In conclusion, the total costs of setting up a business in Abu Dhabi includes Licensing cost with DED and Immigration costs with the ministry of works. With these carefully followed, and with the help of a lawyer and accountant, you can have a smooth business setup in Abu Dhabi. 

The post Cost of Setting Up Business in Abu Dhabi appeared first on Emirates Zone Companies Representation.

Moreover, you have to follow the rules and regulations involved in bringing the business/company to reality. However, this is not plausible without knowing the cost or rather how much you will spend to get the business up and running in the UAE.

How to start?

First off is where you want to establish the business – mainland or the free zone. If your choice is for the mainland, then you need to get familiarized with the following steps.

As with any business, setting a business involves having the fund to invest, obtaining the licenses, and paying for them, but you can only do this with a valid employment visa. So two factors to consider are:

What type of business; is it industrial, professional or commercial oriented and the various licenses required

The legal entity of the company is a branch of a company, sole ownership, LLC, etc.

Another must-do is

Preliminary Acceptance from the DED

Before a business setup in Abu Dhabi, the DED approves to begin operations; this acceptance includes a one-time small charge that allows you sort out all your business operations for six months while you go ahead to complete all legalities and documentation of the business.

Certifying your business name

Your business name is how the business will be recognized in the UAE; the cost of the name depends on the availability and choice of name.

The fees requested are for name reservation, trade name, foreign company name, and others. This one-time payment also varies with the option of a trading name, as mentioned above.

Office Space for LLC Company Setup

For business setup in Abu Dhabi, investors must have a physical office where they operate from; this is compulsory and makes your business legit by the authorities. The presence of an office also allows the necessary officials to inspect, monitor, and ensure the existence. Furthermore, office rents paid annually or as agreed with the property owner.

Declaration of the Memorandum of Association

This document ensures the working relationship between the two parties in an LLC entity, showing in the business how many shares each party has in the business. It is also a one-time cost paid to the DED.

Detailing the terms of the LLC contract in Arabic and English
All the partners involved in a business bound by the terms and conditions of the business entity, LLC.

To avoid misunderstanding in the contract, it is in Arabic and English for the shareholders. It is written under the presence of an authorized translator.

Fee by the Department of Economic Development

Every LLC starting up in the UAE, must pay a one-time nominal fee to the Department of Economic Development or the Ministry of Economy. The charges are made annually and depend on the business type.

Trade License Fee on the Mainland

Even though trade license fees vary according to your type of business, you are required to pay a one-time security fee to the DED to avoid problems with inspectors. The Department regularly updates the charges; hence, a change in cost should be expected at intervals.

Commercial License Fee

Also known as the Tejari fee, this fee is paid annually for running a commercial business.

Chamber of Commerce Fee

Also paid annually, this is a fee paid by all trading companies. Charges differ for manufacturing and industrial companies.

Commercial Service Improvement Fee

An annual remission to the improvement work carried out by the government departments.

Administrative Service Charge

This is a one-time payment for all the paperwork and documentation involved when setting up a business in Mainland Abu Dhabi. The above-listed charges are mostly included in the DED fees.

External approval for business setup in Mainland Abu Dhabi

Aside from the mandatory approval from the DED offices in Abu Dhabi and Dubai, businesses need acknowledgment from other offices such as transportation, legal, telecommunication, engineering, oil-related services, veterinary, and architectural.

When all licenses and approval are met, the next step is getting a resident visa card to bring you close to your business.

Immigration Establishments card

The immigration service opens a file for the registered company and issues a card to the owner or manager of the business. This card is crucial, or else the company cannot recruit workers or seek resident visas for them. The card must be renewed on an annual basis, or huge penalties are imposed on the user.

The Labor Establishment Card

After the immigration card is handed out, the labor card is the next most valuable card. This card is crucial as the company cannot recruit workers, or seek resident visas for them. The card must be renewed on an annual basis to avoid paying huge fines. The card acknowledges your company/business as an entity under the Ministry of Labor and gives you the power to hire, get work permits, and seek a visa on behalf of your workers.

The E-Signature Card

This is a replacement of the former Signature Authorization Card Scheme that required the signature of the company or business owner for each transaction with the Ministry. However, after reviewing this scheme, the E-signature is a card with a number code for transacting with Ministry handed to the business owner.

Conclusion

In conclusion, the cost of setting a business in Abu Dhabi ranges from DH25, 000 to DH60, 000, and as mentioned, it depends on many factors from the business choice to the location of the business.

Are you planning to set up business in Abu Dhabi, let out in-house professionals help you through the process from start to finish. This is to avoid paying twice or falling victim to unsuitable individuals.

The post Setting Up a Business in Mainland Abu Dhabi – All You Need to Know appeared first on Emirates Zone Companies Representation.