Drop Shipping business in Dubai is a low capital-intensive business. However, the entrepreneur must take an eCommerce license in UAE to conduct online sales. They can take office space in any of the Free Trade Zones or on the mainland.

As there is no requirement of storing the goods, there are no warehousing or storage facilities required. The Free Trade Zones in UAE will be an ideal choice for starting a Drop Shipping Company for investors.

A few of the best Dubai-based Free Zones for eCommerce Licenses are the Dubai CommerCity, Dubai Airport Free Zone, Dubai Silicon Oasis – IFZA, etc. Similarly, in the northern emirates Sharjah Media City, Sharjah Airport Free Zone, and Sharjah Publishing City are ideal for setting up a Drop Shipping Company in UAE.

What is Drop Shipping in UAE?

Drop Shipping is a process where the selling of goods online takes place without actually holding any stock or inventory. Additionally, the vendor sells the products and asks their suppliers to directly ship the goods to the customers.

Hence, the main area of focus for the entrepreneur is to market and sell the products. Consequently, the suppliers and manufacturers will facilitate the sourcing and delivery aspect of the products.

The entrepreneur will be creating an eCommerce website, connecting with customers, identifying the right products to sell, etc. The success of the drop shipping business is the customer network. Also, the people must be made aware of the products and benefits to enhance sales.

Steps in Setting up a Drop Shipping Company in Dubai

The dropshipping process is a straightforward business model that anybody can venture into. UAE is a perfect place for starting a drop shipping company. The investor must follow a few steps in setting up the drop shipping company in Dubai successfully.

1. Do a Market Research

Do market research to identify the list of products you want to sell. Also, study the competition and work out the feasibility of selling the items efficiently without delays.

2.  Identify the Niche

Identify the right product category and identify the demand requirement of the product. Selling niche items will help in realizing revenue faster.

3. Find Suppliers

Locate a reliable supplier who will facilitate the sourcing, shipping, and logistics of your dropshipping business. Quality of products and timely delivery is an important aspect when choosing suppliers.

4. Choose the Company Structure 

Choose the company structure for your drop shipping business depending on the number of shareholders. In mainland. the company can be registered as a Limited Liability Company or a single-owner company.

Similarly, in a Free zone, the investor can set up either a Free Zone Establishment or a Company based on the number of shareholders.

5. Choose the right Business Jurisdiction

Based on the cost of setting up a company, office rent, and other business requirements, the investor must choose the right business jurisdiction in the UAE.

As Drop shipping just requires a back office for managing invoices, supplier relations, marketing, etc., being in a Free Zone is beneficial for the investors.

There are many benefits such as meeting room facilities, well-furnished offices, networking opportunities, and more.

6. Get the eCommerce Trade License

Obtain the eCommerce Trade License from the chosen business jurisdiction. In Dubai, an eCommerce License can be obtained at AED 14,900.

Also, there are various eCommerce License packages for investors to choose from in Dubai based on their business requirements.

7. Setup an Online Store

The investors can set up their online store in UAE by creating a website for their e-commerce store or by partnering with Noon and Amazon.

There is a high internet penetration and online shopping acceptance is high in UAE. It is a perfect place to launch an eCommerce store. A vibrant website with all the latest products will attract customers to the online store. 

8. Update your Product Niche

Constantly conduct market research and stay updated in the eCommerce sector. Add new products to the website and eliminate products that are out of trend.

Cost of Starting a Drop Shipping Company in Dubai

The cost of starting a drop shipping company in Dubai includes the eCommerce license fee from the Free Zone, the office space rent, and furnishing expenses.

An eCommerce License in Dubai will enable entrepreneurs to easily launch their drop shipping company and start selling goods through the online platform. An eCommerce License from Dubai’s popular Free Trade Zone can be obtained for AED 14,900 with a one-visa quota.

Finally, the cost of website development, managing the website, and marketing expense must be considered while calculating the overall expenses of a drop shipping company in Dubai.

Documents required

To set up a Drop Shipping Company in Dubai the investor will have to submit a few documents. The respective Free Zone or Mainland authorities will review the application and issue the Trade License.

• Shareholder Passport Copy and Photograph
• Proof of residence for shareholders
• Duly Filled Application form for the respective Free Zone

Frequently Asked Questions related to Drop Shipping Company in Dubai?

Most of the investors who are about to venture into the Drop Shipping business in UAE will have many queries. Following are a few of the doubts all investors will have.

Is Dubai the right place for Drop Shipping?

Yes, Dubai is a perfect choice for setting up a Drop Shipping Company. The City offers many advantages to investors. The Air, Sea, and Land Connectivity makes it easy for importing items from abroad. Also, there are more than 200 nationalities living in UAE which is a large addressable market.

Again, the business infrastructure in Dubai is top-class. Additionally, the ease of doing business and finding genuine suppliers who have a good network in Dubai is relatively easy. Hence, overall, Dubai is the first choice for setting up a drop shipping company.

Which License is required for Drop Shipping in UAE?

For a drop shipping business in UAE, having an eCommerce License is mandatory. The investor can open an online store and facilitate the sale of the products. They can engage with trusted suppliers in UAE to deliver the items to the customer’s doorstep after making a sale.

How to grow the Drop Shipping business in Dubai?

The Drop Shipping Business in Dubai has multiple growth opportunities. Online media is an effective channel to promote the Drop Shipping Business. The niche product must be promoted in social media channels through influencers.

To gain customer confidence offer trusted products from known brands on the website. Additionally, focus on SEO practices and invest in digital marketing efforts. Constantly conduct market research and find new products and trends.

Add new products to the website frequently to stay competitive in the market. Again, by reducing the shipping time and increasing order fulfilment, the drop shipping business can get more customers.

Why should I seek the Assistance of a Business Consultant?

To obtain an eCommerce License and take an Office Space, there are a few steps to be followed, with the assistance of expert Business Consultants such as ARION, investors can easily set up and run their drop shipping company in UAE without any hassle.

Our expert Business Consultants will also support you in opening a Corporate bank account for your new company and handle all the administrative and visa requirements of the company. Talk to our business consultants right away!

Contact Us: Aurion Business Consultants

The post How to Start a Drop Shipping Company in Dubai? appeared first on AURION.

This blog will highlight the steps in obtaining an Accounting Business License in Dubai, UAE. So, let us get started. Obtaining an Accounting Business License in Dubai will help entrepreneurs legally conduct accounting, bookkeeping, auditing, and tax consulting services for clients in the UAE and globally.

Demand for Accounting, Auditing, and Book keeping Companies in UAE

There is a constant requirement for professionals in the fields of accounting, auditing, tax consulting, banking, and finance in the UAE. This is due to the large volume of business transactions and deals getting signed and approved in the UAE.

Also, to add on to that the tax structure in the country is very favorable for expatriates working and doing business in the region. UAE has over 200 nationalities working in the country. It is a global hub for trade and finance.

Hence, for the companies operating in the region having financial reporting is essential to track their operating expense and revenue from the business operations. So, they require accountants, auditors, or tax consultants to check their accounts and authorize the financial transactions on a daily basis.

Also, in a few services-based activities such as management consulting conducting an Independent annual audit is mandatory as per the regulatory authorities.

How to get an Accounting Business License in Dubai?   

The Accounting Business License in Dubai can be obtained by the entrepreneur without any hassle from the Free Zones or the Mainland of Dubai. Various factors determine the choice of the business owner whether to get the Accounting Business License from the Free Zone or the mainland.

A few of the main factors that determine the selection for setting up the business are the rent, overall business setup budget, office space requirements, investor’s personal preference, available business facilities, etc.

Expert Business Consultants at AURION will assist in obtaining the Accounting Business License in UAE by studying all your business requirements precisely.

To obtain an Accounting Business License in Dubai, it is advisable for the entrepreneur to have a financial background and expertise in the field of accounting, taxation, or business management.

The professional expertise of the investors helps in faster obtaining the Accounting Business license to start operating in UAE. There is a vast scope for entrepreneurs with an edge over numbers. The requirements of accounting and book-keeping services, financial management, stock trading, and trade finance. Investment strategies, etc., are driving the demand for an accounting firm in Dubai, UAE

Steps in Obtaining an Accounting Business License in Dubai

An accounting business license in Dubai will permit the business owner to conduct activities related to cost accounting, bookkeeping, auditing, etc. They can provide these business activities as part of the service portfolio.

Professionals in the field of accounting, auditing, finance, etc., can become shareholders and start an accounting business in UAE without any hassle. They can take a small office space to accommodate the staff, conduct client meetings carry out auditing, book-keeping, and accounting projects on site.

One of the advantages of starting an accounting business license in Dubai is the projects can be handled remotely and without an office space if the investor wishes to do so. The Free Trade Zones in UAE provide a virtual office package at a comparatively low cost. In Dubai-based Free Zone DSO-IFZA, the accounting business license with 1 visa and virtual office can be obtained at AED 14,900.

Obtaining an Accounting Business License in Dubai – Details Explained

There are a few steps in obtaining an Accounting Business License in Dubai. In the Free Zone and Mainland of Dubai, the company setup steps are almost similar with few variations in the process.

The first step is choosing a name for the company and selecting the list of related business activities to add to the Accounting Business License. Secondly, choose the right Free Zone or go with the mainland of Dubai. Now, proceed to obtain the initial approval from the respective business licensing authority.

At this stage, the business owner has to submit the application form, and professional CV, and make the fee payment for obtaining the Accounting Business License in UAE. Depending on the business requirements, take an office space and get the tenancy contract for the same.

Obtain the Accounting Business license and other company documents, start operating the business at full capacity, and scale up seamlessly.

Cost of Starting an Accounting and Auditing Consultancy Company in UAE

The cost of starting an auditing and accounting company in UAE Free Zones starts at around AED 14,900. The business owner will get a 1 Visa quota company license package with a virtual office in Dubai.  The investors can apply for a UAE residence visa under the company.

They can hire more employees when required and scale up the company by taking large office space. Having an office space for Auditing and Accounting Company will enhance the credibility and help in gaining new customers easily.

Why Choose Free Zone for Obtaining an Accounting Business License in UAE?

The Free Trade Zones in UAE come with a lot of benefits. There is 100% foreign ownership, world-class services, networking opportunities, cost-effective office packages, and more. Obtaining an Accounting Business License from the Free Zone helps investors easily start their business operations.

Free Zones are the perfect choice for investors to set up their Accounting Company and obtain a Professional license to conduct accounting, auditing, & bookkeeping activities. As most of the companies in the Free Zones will be foreign-owned, having a presence in a Free Zone will help the accounting firm quickly build a client network within the Free Zone and outside.

Why Choose UAE Mainland for Obtaining an Accounting & Auditing Company License?

Starting an Accounting and Auditing Company in the UAE Mainland is a prospective choice for business owners. There are a lot of advantages to obtaining an Accounting and auditing Company License from the UAE mainland.

The 100% expatriate ownership in the Mainland is a major highlight for an investor to set up their offices on the mainland. The flexibility to hire more staff, expand office spaces, and open new branches seamlessly makes Mainland Company Setup a preferred choice among investors. 

Opening an Accounting and auditing Company in the mainland of Dubai will enable the investor to be in proximity to the business centers such as Business Bay, Sheikh Zayed Road, Internet City, etc.

Corporate Tax and Requirement of Auditor / Tax Consultant

UAE has introduced a 9% Corporate Tax for all companies that have a net profit of AED 375,000 or above. There are certain exemptions upon meeting the criteria. However, all companies that are operating in the UAE must now maintain their accounts.

The Tax Consultant or Auditor will advise the companies on how to proceed with the Corporate Tax registration and filing of returns. Also, about the tax exemptions that are available for companies depending on their nature of business.

Hence, there is a growing opportunity for Auditors, Accounting, Tax Consultancy businesses, professional auditors, tax consultants, etc., to start an accounting company by obtaining a professional services license from the Free Zone or the Mainland.

Why Do Companies in UAE Need an Auditor?

Expatriates from Europe, India, etc., having business in UAE can avail of the Double Taxation Avoidance Agreement and save filing taxes on income earned in UAE in their home country.

Similarly, for companies operating in UAE, there is a requirement to pay 5% VAT, submit an economic substance regulation report, Ultimate Beneficiary Ownership, and special excise taxes depending on the business activity.

Hence, there is immense scope for an accounting and auditing company in the UAE to prepare audit reports, coordinate with VAT, Corporate Tax Registration and filing, and more. Companies and individuals in the UAE are constantly on the lookout for a trusted tax advisor or accounting Services Company to manage their finances.

Register as an Auditor in UAE

Once the professional license is obtained, the company can demonstrate its expertise in the fields of finance, accounting, and taxation. Create a website and include the financial expertise of the team. Conduct webinars. trade shows, and industry meet-ups to strengthen their position in the financial and auditing industry.

Ready to obtain an Accountancy, Book Keeping, and Auditing License in UAE

AURION is one of the best business setup consultants in the UAE. The team will provide the right company formation package. An Auditing and accounting firm in the UAE is a prospective business opportunity due to the availability of numerous companies operating in the region.

Also, with the introduction of a corporate tax of 9% in June 2023, there will be enormous opportunities for Auditing and Accounting companies in UAE.

To know more details about Obtaining an Accountancy, Audit, Book Keeping License in the UAE, connect with our expert team of Business Consultants right away!

The post How to get an Accounting Business License in Dubai, UAE appeared first on AURION.

With one of the busiest airports in the world and the largest man-made seaport in Dubai, the country is on a fast pace of development. It’s a wise decision for investors to set up a business headquarters in UAE as it is becoming a popular trade hub of the world.

Company Incorporation and Role of Business Consultants in UAE

Business Consultants in UAE assist the investors in the process of company incorporation in the region. There are various options in UAE for setting up a company. The 45 plus Free Zones in UAE offers more than 1000 business activities.

Hence, often the investor is confused when it comes to selecting the right option to establish their business. This is where the role of a Business Consultant becomes vital.

Also, the Business Consultants in UAE will ensure investors the right company registration process. The company in UAE must be set up the right way and comply with all the company laws and regulations.

For entrepreneurs who are new to business setup in UAE will be overwhelmed by the process of applying for clearances, getting approvals, applying for a residence visa, bank account, etc.

In such instances, getting assistance from an expert Business Consultant will help entrepreneurs to easily kick start their business journey.

How Business Consultants help an entrepreneur in Setting up a Company in UAE?

The role of Business Consultants in the process of setting up a company in the UAE is crucial. They help the entrepreneurs in many ways. Here are some of the key areas where consultants will handle it efficiently.

Hiring a business consultant to establish a company in the UAE allows investors to grow and add more value to their organizations. The best part of hiring a business consultant is that they can assist with developing growth-oriented strategies and have a plethora of experience in establishing a company.

In that regard, AURION can help investors establish their company in UAE with expert knowledge and all the crucial information regarding procedures to start a company in the UAE.

1. Result-driven Expert Advice

Starting a business requires a lot of knowledge and experience to make it hassle-free. Furthermore, investors may not have enough information to start it themselves. Sometimes, they may even miss out on certain facts and then have issues with establishing their company.

That’s where the role of business consultants comes in. They help investors effectively establish the business since they have a solid perspective of the local market and the competitors.

Furthermore, they can also guide investors through the benefits and risks of the business they are trying to establish.

2. Efficient Handling of Legal Matters

As the UAE legal system is the backbone for starting a business in the UAE, it’s crucial to comply with all the legal procedures. Whether investors want to opt for mainland, offshore, or free zones for opening a company, each has its regulatory authority.

Hiring a business consultant means they will also inform and guide about the laws applicable to companies, establishments, and employees in UAE.

Furthermore, they will educate about all the legal requirements and formalities, allowing them to carry out the business setup process smoothly. Not only that, but they can also help with the risks and options available while setting up a business.

3. Better Understanding of Business Jurisdictions

The UAE has different business jurisdictions with different rules, regulations, and laws. Investors need to comply with all these, which require professional assistance.

Furthermore, if these rules aren’t taken care of correctly, there may be certain penalties. A business consultant helps investors understand the legal structure and provide valuable advice.

1. Company Formation Application

Submitting the application form with the supporting documents is the first step in company formation.

The Business Consultants will provide accurate information on the latest business setup packages of various Free Trade Zones in UAE and the mainland packages to the investor. 

Depending on the business requirements and preferences of the investor, the business consultants will proceed with the right choice.

2. Choosing the Business Type

Based on the number of shareholders, nature of business, the business type must be chosen. In Free Zone, there are two major business types FZE (Single Owner Company) and FZC (Two or more Shareholders).

Few Free Zones in UAE have Free Zone -LLC (Limited Liability Company) business type and Dual Licenses. Expert Business Consultants will provide ample information about the various business license types with the investors and proceeds with their selection accordingly.

Also, depending on the nature of the business activity the type of business license must be chosen. Businesses in UAE are categorized into commercial (Trading, General Trading), industrial (manufacturing), services, eCommerce, etc.

3. Choosing the Office Type

Choosing the office space is an important step in the company formation process. The Business Consultants will ensure the perfect office space depending on your business requirements.

The Free Zones in UAE offer customized office spaces on their premises. Free Zone Companies will have to choose an office within the Free Zone. To move to the mainland, the company must be having a registered branch office.

Free Zones in UAE have various office types ranging from Flexi-Desks and shared Office Spaces to executive Offices with fully customized interiors (25 sq.m, 50 sq.m). Also, there are warehouses and light manufacturing units that are ideal for small-scale manufacturing industries.

4. Obtaining Clearance and Approvals

Based on the business activity chosen by the investor, there is a requirement for special approvals from the Government Departments, municipalities, and other Government Authorities.

For example, aviation companies to start their business operations, require the approval from Civil Aviation Authority in UAE. Similarly, all construction Contacts in Dubai must be approved by the Municipality of Dubai. Business Consultants will help investors in obtaining the clearances on time to ensure smooth business operations.

5. Obtaining the Business License

The business license is obtained from the respective Free Zones upon submitting the required documents of the shareholders, the approvals, and the fee.

The Business Consultants will handle the whole process of company formation in UAE across various Free Zones and the mainland. The investors can focus on their core business strategy while the administrative work will be taken up by the Business Consultants.

6. Assessment of Costs for Business Setup

Investors can incur high costs while establishing a company in the UAE if it’s not directed properly. The cost can include business setup assistance, visa attainment, liquidity & sponsorship services, or business support.

In addition, the business jurisdictions in the UAE have their legal processes, laws, documentation, office space structure, etc. All these have different types of costs. Depending on all these, only the registration can cost you around 9000-15,000 AED.

However, one may not be aware of all the costs that may come up at each stage. In the end, investors may have to expend more than they calculated just because they were unaware of a certain type of cost. Business consultants ensure that it doesn’t happen. They can help investors with an exact assessment of the business setup costs.

7. Compliance Process for Business Operation

The business compliance in UAE is tighter with the newly amended Economic Substance Regulation and Ultimate Beneficiary Ownership Declaration, Anti Money Laundering declaration, VAT Registration, etc.

Hence, all new and existing businesses registered and operating in UAE must file for all of the above compliances. This is where Business Consultants will be helpful.

They will assist and coordinate the filing process and maintaining the deadlines and taking action at the right time. UAE Government has strict regulations and fines for the defaulters, hence companies must be well aware of the compliances and the after-effects of violations.

8. Business Support Services

Business Consultants provides a host of Business Support Services such as Resident Visa Processing, Bank Account Opening Assistance, customs registration, document attestation, document delivery, driving license, and more. Clients can use the services on the go depending on the requirements.

9. Company Closing

Company Closing procedures are very structured and a mandatory process in UAE. Investors must follow the company closing procedures and settle all dues of the company.

For the investor to return to UAE on a later day or start a new business here, the termination of the existing company the right way is essential. Business Consultants will help in closing the company the right way by following all the procedures and getting all the required clearances.

Hence, in a nutshell, Business Consultants form an integral part of the business setup ecosystem in the UAE. Business Consultants, Free Zones of UAE, and other Government entities all make up the business setup ecosystem in the region.

To know more about the Company Formation Process in UAE, talk to our expert business consultants right away!

Contact Us: Aurion Business Consultants

The post Why Choose a Business Consultant in UAE for Company Setup? appeared first on AURION.

The market capitalization for Crypto Currency in UAE for 2020 was Approx. USD 265 Billion. The Cryptocurrency market is in a growth phase with the rise in Bitcoin transactions worldwide and new Cryptocurrencies entering the market.

Cryptocurrencies like Bitcoin, Dogecoin, Etherum, Tether, Polkadot, etc, are becoming actively popular in the UAE. Also, online Cryptocurrency trading exchanges enable Bitcoin trading for individuals.

What is a Cryptocurrency License?

To legalize the cryptocurrency business in the UAE, the investor must obtain a commercial license. All the Crypto trading, monitoring, buying, etc., will be regulated by the Crypto license in UAE.

Currently, the cryptocurrency license in UAE is issued by the Following Free Trade Zones:

• DMCC – Dubai Multi-Commodities Centre
• DAFZA –  Dubai Airport Free Zone Authority
• ADGM – Abu Dhabi Global Market
• Sharjah Research Technology & Innovation

Operation of Crypto exchanges in UAE

To operate a crypto exchange in UAE there is a set of regulation and compliance requirements. Also in most cases, the application for a crypto exchange goes through strict scrutiny from the Securities & Commodities Authority, ADGM, and the respective Free Zone authorities.

Opening and operating a Crypto exchange in Dubai is a new thing. It is expected to be a game-changer for the crypto license companies and investors in the UAE.

Taxation of Cryptocurrency Trading Companies

There is no income tax or corporate tax in UAE. Hence there is no tax for crypto trading Companies in Dubai. UAE has Value Added Tax at a very low rate (5%.)

Entrepreneurs can easily set up a crypto trading company in the UAE that is not taxable. However, the regular transactions using cryptocurrency in UAE will be subject to the 5 % VAT.

Procedures to Follow for Obtaining a Crypto Currency License in Dubai

The following steps are to be followed to obtain the Cryptocurrency license in Dubai:

• Submit the cryptocurrency license application form to the respective Free Zones
• Submit the required documents of the shareholders – passport copy, photographs
• A brief business plan and share capital to successfully run the company
• Choose the suitable office space based on the requirement and prepare the tenancy agreement
• Make the required payment for the Crypto License and Office Rent

Post the approval by the respective Free Zone authorities, the Crypto trading license will be issued for the company. The investor can then apply for a UAE residence visa and proceed to the opening of a corporate bank account in the UAE.

Crypto License Governing Bodies in UAE

UAE aims to provide an integrated ecosystem for the cryptocurrency trading and blockchain sector and adapt to the latest technology trends driving economic growth.

The Securities and Commodities Authority (SCA) along with DMCC has worked out a regulatory framework for businesses in the line of cryptocurrency trading, listing, management, etc.

The Dubai Airport Free Zone also will follow similar guidelines and register cryptocurrency trading licenses for the investors.

Crypto License Guidelines from Abu Dhabi Global Market Free Zone

Similarly, the FSRA (Financial Services Regulatory Authority) and ADGM (Abu Dhabi Global Market Free Zone) publish certain guidelines on cryptocurrency trading and business licenses.

The regulations of Crypto Assets Activities in ADGM is the most extensive regulatory framework available in UAE and there is no other law governing cryptocurrency in UAE currently.

However, with the prominence of cryptocurrency trading, the UAE Government is all set to introduce a detailed regulatory framework for cryptocurrency license issuance and Crypto trading.

DMCC Launches New Crypto Centre in Dubai

DMCC has launched a Crypto Centre, a comprehensive ecosystem for businesses operating in the crypto trading and blockchain sectors.

It is aimed to be a hub for the development and application of crypto and blockchain technologies. The center will provide support to all types of companies to develop solutions related to blockchain and crypto technology.

DMCC Crypto Center – The Crypto and Blockchain Hub of UAE

The new center will provide co-working spaces to crypto entrepreneurs and SMEs to test and develop their blockchain and crypto solutions.

The Centre also has a crypto advisory practice led by CV labs, the entity behind the Switzerland Government-backed Crypto Valley. Also, a series of incubators and accelerator programs are lined up for the start-ups who intend to receive funding for their crypto projects.

The DMCC’s new Crypto Centre will be center stage for Dubai’s future blockchain initiatives. Dubai has emerged as a global hotspot and technology leader in the blockchain and related applications. With the addition of the DMCC Crypto Center, the blockchain and crypto ecosystem in the UAE is expanding to new heights.

To know more about Crypto License in UAE & Cryptocurrency business in Dubai. Talk to our expert Business Consultants right away!

Contact Us: Aurion Business Consultants

The post CryptoCurrency License in UAE – How to start a Cryptocurrency Business in Dubai? appeared first on AURION.

However, there are a few differences in the company structure, company setup procedures, and nature of business operations for Free Zones and the Offshore jurisdictions in UAE.

What are the Advantages of a Free Zone Company?

The Free Zone company has many business advantages when compared to Offshore companies. The investor can easily setup a Free Zone company in UAE with the help of an experienced business consultant.

A Free Zone company can take an office space in the Free Zone if necessary and coordinate the business operations. The Free Zone company is eligible to can hire employees depending on the visa quota availability.

Free Zones are a preferred investment destination for foreign investors due to the 100% foreign ownership for the company. The investor can also repatriate 100% of the business profits and capital to the home country.

There is no income tax and certain Free Zones in UAE are VAT exempted. The business license in UAE Free Zones starts at AED 11,500 for zero visa quota to up to 6 visa quotas and more.

Free Zone Company – Key Highlights

The Free Zone Company is an onshore company governed by the respective Free Zone jurisdiction and eligible to apply for a UAE residence visa, hire employees, set up an office, open a corporate bank account, buy property, sponsor employee & investor visa, etc.

The Free Zones offer customized office spaces (Flexi-desk, shared office, furnished office -12 sq.m, 25sq.m, 50 sq.m, office + warehouse) and a host of other business benefits for the investors.

The company formation in Free Zones is easy with minimal documentation. However, it becomes quite confusing for the investors to choose the right business activity and Free Zone company package.

Also, depending on the nature of the business activity, it requires a few approvals from the Free Zone authorities and other government authorities in the UAE. It is best advisable for the investor to get the assistance of an expert Business Consultant to carry out the process of the company set up in the Free Zones of UAE.

Top Four Free Zones to explore in UAE

• Dubai Airport Free Zone
• Dubai Silicon Oasis – IFZA
• Sharjah Media City
• Sharjah Publishing City

What is an Offshore Company in UAE?

Offshore company in UAE is a type of business entity that is setup with the UAE offshore jurisdictions. In UAE there are mainly three offshore jurisdictions – JAFZA, RAKICC, and Ajman Offshore.

Offshore Company in UAE – Key Highlights

Offshore companies in UAE are governed by the respective Offshore jurisdictions and are non-resident companies. An offshore company is not eligible for applying UAE residence visa for the investors or the employees.

Also, the Offshore company cannot trade or involve in any trade operations with the mainland of UAE. Offshore companies are aimed at facilitating global trade only and they fall out of the UAE VAT regime and other local company governance.

Companies registered with the RAKICC Offshore have the provision to purchase a property in the Free Hold area in Dubai under the company name. 

Offshore Company Formation in UAE – Key Business Benefits

1. Tax Advantage

Offshore Companies do not fall into the tax regime of any business jurisdiction or country. They enjoy Zero taxation for the revenue generated.

Zero taxation for offshore companies is one of the major driving factors for global investors to choose offshore business.

2. Business Anonymity

One of the key reasons global investors prefer to register an offshore entity is to keep their ownership and assets invested confidentially. There is no requirement for keeping public records for an offshore company.

However, with the new law of global taxation, economic substance regulation filings, anti-money laundering, etc; the anonymity of offshore companies is subject to respective authorities’ inquiry. The company documents, transactions, and other trade details will have to be shared upon request by the Government authorities.

3. Ease of Formation and Low Maintenance Cost

The steps involved in setting up an offshore company are relatively straightforward with minimum documentation. It just takes 2 working days in UAE to complete the process of the offshore company registration. Offshore allows remote company registration without the presence of the shareholder (Ajman & RAKICC).

Also, the company is not eligible to open a physical office in UAE nor apply for an employee residence visa. The maintenance cost of an offshore company is relatively lower than an onshore company.

4. Access to Bank Accounts

Offshore companies registered in RAKICC, UAE are eligible to open a bank account in UAE and other global business locations. Individuals can protect their assets by opening a holding company and moving all the assets under the company name.

Also, by opening a corporate bank account in UAE the offshore company can handle all the business transactions via the bank account and successfully run the business.

To know more about the difference between Free Zone, Mainland, and Offshore Companies in UAE, talk to our expert team right away!

Contact Us: Aurion Business Consultants

The post Free Zones vs. Offshore Companies in UAE – Key Differences appeared first on AURION.

Why Choose UAE for setting up a Company?

Investors choose UAE for establishing their business due to:

• Save tax in the home country by registering a company in UAE
• 100% foreign ownership based company with full capital and profit repatriation
• No personal and corporate tax
• World-class office infrastructure, meeting room access, customized office space, and more
• Wide range of warehouse specifications with attached office space, and land lease
• Well connected transport network (air, sea, and road) to facilitate east trade across UAE, Middle East, and rest of the world
• Enhanced lifestyle and low crime rate
• No geopolitical tension and good economic stability
• And many more…

Hence, UAE is the most preferred choice by investors around the world for opening their dream companies.

Factors to Consider While Choosing the Right Emirate for Company Formation

When it comes to choosing the emirates for easily opening a company in UAE, there are multiple factors that the investor must consider such as:

1. Cost of Setting Up a Company

The Cost of registering a company in UAE varies according to the Emirate where the Free Zone is located. The cost of setting up a company starts from AED 11,800 for zero visa quota virtual company license in one of the most competitive Free Trade Zones of UAE.

In Dubai, opening a company with an office in the Free Zone or Mainland is costlier than any other emirate of UAE. Mainly due to the intensity of business activities and business houses in Dubai that are constantly doing business and promote trade operations in the region.

Hence, investors are all intending to share a piece of the pie by being in Dubai and grow their business.

Low-Cost Company Formation in Dubai

In Dubai, few Free Zones offer relatively low-cost company formation package for investors to set up their base in Dubai.

Dubai Silicon Oasis-IFZA and Dubai South offer low cost company formation packages in Dubai. Both of these Free Zones provide investors with a host of business infrastructure and required business support platforms to start at a lower cost.

Premium Company Setup in Dubai

Then there are prestigious Free Zones such as the Dubai Airport Free Zone that is home to some of the world’s top companies.

Hence, altogether company setup in Dubai gives the investor a prestigious address, sophisticated office space, access to the world’s best businesses and infrastructures, and an improved lifestyle.

Free Zones in Sharjah, Ajman, Ras Al Khaimah, etc., offer low-cost company formation packages to the investors without compromising on the infrastructure facilities and other support services.

2. Location

For certain business activities like consulting where global clients keep coming for meetings, having an office space that is close to the airport is beneficial for both parties.

Also, the ambiance of the office and the premises play a vital role in the perception of the company from the client’s point of view.

For businesses such as trading, export, or, e-commerce, the office location does not matter. It could be located anywhere in UAE and not necessarily be at the heart of the city where the rents are high typically.

3. Company Formation Package

Free Zones across the UAE offer various company formation packages. Depending on the exact business activity and company formation requirements the right company setup package need to be chosen by the investor.

For trading companies that are aiming to expand into the local UAE market and the rest of the GCC region, having proximity to airports or seaports is beneficial for the company to easily facilitate global trade.

Similarly, for start-ups and entrepreneurs, there are a whole lot of attractive low-cost business packages on offer from the Free Zones based in Sharjah and Ajman.

The Sharjah Media City and Sharjah Publishing City have exclusive company formation offer starting from AED 11,800. The investor can choose from a wide range of business activities and company formation packages.

4. Business Infrastructure

For establishing a company in UAE, the right business infrastructure is essential. Free Zones in UAE offer top-class business infrastructure facilities for entrepreneurs. Dubai Based Free Zones have a wide choice for customized office spaces with 11 sq. m, 20 Sq. m, 50 sq. m offices, warehouses from 100 sq. m to 300 sq. m.

Also, there are other amenities such as large meeting halls, conference rooms, training sessions, and more on offer from Dubai-based Free Zones.

Similarly, for industrial and Commercial warehouses, land lease, and factory setup, the industrial areas and free zones in the northern emirates like Sharjah, Ajman, Ras Al Khaimah are the ideal choices.

Hence, in choosing the right Emirate for setting up the business, the above-stated parameters play a vital role in the decision making. Company Setup in UAE is a straightforward process with the Free Zones and Mainland offering easy and quick company formation process.

To know more about the Company Formation Process in UAE, connect with our team right away!

The post Which is the best Emirate in UAE for Company Formation? appeared first on AURION.

Driven by the demand for IT Services in UAE; start-ups and entrepreneurs are obtaining IT services company licenses to offer specialized IT Services for organizations in UAE.

The growth of IT related business attracts global investors to UAE. Especially with the pandemic, the demand for IT services in organizations has gone up tremendously.

To stay competitive in the digital world, IT services have a vital role to play. IT provides the perfect infrastructure and platforms for the organization to grow digitally.

How to Open an IT Services Company in UAE?

Opening an IT Services company in UAE is a straightforward process. There are ample choices for entrepreneurs in UAE to start an IT-based business.

To keep the business setup cost low, the Free Zones in UAE are the ideal choice. They offer world-class facilities and amenities along with an IT Service license all at an affordable business setup package with visa quotas to hire employees.

An expert Business Consultant will assist you in the process of obtaining an IT service license, and UAE residence visa application submission. They will ensure you have a seamless business setup and continued business operations by getting all the paperwork and clearance approved.

Steps in Setting Up an IT Services Company in UAE?

To establish an IT Services Company in UAE, the first step is to get the trade name approval. A suitable name must be registered for the company with the respective Free Zone authority. Following are the steps involved in setting up an IT Services Company in the UAE.

• Choose the right business activities and the company structure depending on the number of shareholders. Prepare the shareholder agreement and memorandum of association with the respective Free Zone.
• Submit the required documents to the Free Zone authority and pay the required business license fee.
• Choose the right office space for your IT business based on the budget. Get the tenancy contract for the office space from the free zone.
• Proceed to obtain the investor visa and get it stamped on the passport. Now you can legally start business operations from the newly registered IT company.

Top Free Zones in UAE offering IT Services License

The Free Zones in UAE offer exclusive discount offers for investors aiming to establish an IT business in UAE.

There are few Free Zones offering the perfect infrastructure and business support services for entrepreneurs to start their IT Services business in UAE.

1. Dubai Airport Free Zone

Dubai Airport Free Zone is one of the premium choices for every entrepreneur in Dubai. Get the prestigious Dubai Address and set up your company in the top-rated Free Zone in the world.

Situated adjacent to the Dubai International Airport, it is a perfect choice for IT service companies to invite and conduct meetings with clients who are always on the go.

The Free Zone offers attractive business setup packages with a shared office, Flexi Desk, executive office, etc., and business infrastructure that is conducive to IT services business.

2. Dubai Technology Entrepreneur Centre

The Dubai Technology Entrepreneur Centre is a perfect Launchpad for IT services companies, start-ups, freelancers, and entrepreneurs to start any IT-related business ventures.

DTEC offers ample business infrastructure such as a testing laboratory, meeting rooms, conference rooms, cafes, office spaces, business support services, and more.

This free zone has a well-built ecosystem to support IT companies’ growth and expansion of the business communities.

There are a host of business activities under the IT service license in DTEC that investors can venture into at affordable business setup fees.

To know more, read: Start a Company in DTEC

3. Dubai Silicon Oasis IFZA

Dubai Silicon Oasis IFZA is another popular Free Zone for IT Services in Dubai. The Free Zone has dedicated amenities for supporting IT Service companies and entrepreneurs to test the software products.

Also, it provides access to start-up accelerators where entrepreneurs can secure funding for their projects subject to approvals.

There is a robust IT start-up community growing in the IFZA Free Zone. IFZA offers one of the low-cost Business Setup Packages for IT Companies in Dubai.

There are a variety of Office spaces available ranging from shared desks to fully furnished offices, and other facilities to support IT Service businesses to easily grow in the region and beyond.

4. Sharjah Media City

Sharjah Media City is a dynamic Free Zone in the Emirate of Sharjah offering a wide range of business license types for IT Companies.

IT Services are one of the most sought-after business activities among start-ups to meet the growing demand from organizations in the UAE.

Sharjah Media City provides office facilities, conference halls, meeting rooms, shared work areas, etc., for IT start-ups to easily scale up their business at lower business setup fees.

Contact us now to get an IT Services business License in Sharjah Media City Free Zone.

5. Sharjah Publishing City

The Sharjah Publishing City is the newest Free Zone in Sharjah. Located near the Sheikh Mohammed Bin Zayed Road, and near the Sharjah International Airport, the Free Zone is a perfect choice for start-ups and entrepreneurs to easily start an IT company at the lowest setup cost.

The highlight of the Free Zone is the Dual License issued for the investors and getting the investor visa stamped to the passport in the shortest time. Dual License allows Free Zone companies to expand beyond the Free Zones and strengthen their presence in the mainland of UAE.

Hence, for start-ups and investors looking for an easy IT business setup in a hassle-free way and obtaining an investor visa at the earliest; SPC Free Zone is the right choice.

To know more about the procedures of opening an IT Service Company in UAE or a Software Development Company in Dubai, talk to our expert Business Consultants right away!

Contact Us: Aurion Business Consultants

The post IT Company License in UAE – How to Start an IT Services Company in UAE? appeared first on AURION.

UAE tops the list of ‘Ease of Doing Business in the Middle East region and offers a variety of low-cost company license packages for investors to choose from. The Business Amendment Laws in UAE aims at providing entrepreneurs a friendly ecosystem to easily do business in the country.

The article covers a list of the latest business amendment laws in UAE that an entrepreneur must know for conducting smooth business operations. To avoid fines and do business legally, there are certain business laws the investor have to adhere.

Following are few of the Business Law Amendments in UAE that every entrepreneur must know for operating a business in the country.

Business Laws Amendments for Entrepreneurs in UAE

To streamline and create transparency in the business world over the years UAE has introduced a series of transformational business law amendments.

Safeguarding the interest of investors is the topmost priority in UAE and the changes are reflecting positive sentiments in the market of UAE being the safest and most robust business center in the world.

List of Recent Business Amendments for Entrepreneurs

Here is a list of a few business amendments that every entrepreneur in the UAE must be aware of and comply with.

These amendments are aimed at promoting economic activities more effectively and helping global investors to easily set up companies and scale up their establishments quicker in the region.

1. Stimulus Packages and Incentives

The Stimulus Package and Incentives were provided to businesses in the UAE during the pandemic period. When globally there was a slowdown in trade, employment, and business growth, the Stimulus Package from the UAE Central Bank and the Government saved ailing companies in the region.

Stimulus Package and Investor Confidence

The issuance of the stimulus package in the UAE has raised investor confidence and the new company registrations in UAE are at an all-time high.

The Dubai Government launched an AED 1.5 billion economic stimulus package for supporting the business affected by the pandemic.

From rent relief to interest-free loans and payment deferrals, the UAE government is in-game with boosting the business scenario in the region.

2. Foreign Direct Investment on Key Sectors

With 100% foreign ownership in onshore companies in the mainland of UAE to reducing the minimum share capital to set up a mainland company in UAE for foreign investors. The 100% expatriate ownership in mainland came in as a major business law amendment in UAE.

UAE is offering several options for opening a business in the region for foreign investors. It is focusing on building a transparent and robust business ecosystem for the investor to do business in the region.

The Free Zones in UAE are a major driving force to foreign direct investment in the form of opening new companies in the UAE and strengthening the economic activities.

3. Economic Substance Regulation

The Economic Substance Regulation is a policy launched in UAE to ensure the companies operating in UAE comply with the international tax laws. The ESR is also another major Business Law Amendment that all companies under the ‘Relevant Activities’ must adhere to the ESR Filing and Regulations.

ESR states that any business entity in the UAE onshore and Free Zone companies and other business forms that carry out any of the ‘Relevant Activities; listed in the regulatory framework must maintain an adequate ‘economic presence’ in the UAE.

ESR Regulations are aimed at creating transparency in the market and a strategic move towards Anti-Money Laundering and Combating the Financing of Terrorism and illegal organizations.

4. Ultimate Beneficiary Owners

Ultimate Beneficiary Owner (UBO) is a natural person who owns more than 25% of a company shares registered in UAE. UBO Registration is another latest business law amendment that all companies operating in UAE must adhere with to avoid any compliance issues.

All details of the shareholders are now to be included along with the ESR Documentation. It is aimed at creating transparency and reduce illegal transactions.

Hence the declaration of Ultimate Beneficial Owner helps in establishing an effective regulatory mechanism and procedure for stating the ownership details of the company operating in UAE with the Ministry of Finance.

5. Know Your Customer (KYC) Norms for Opening Corporate Bank Account

UAE has a well-secured network of international and local banks UAE. Recently with the impact of the Pandemic, business lending and day-to-day transactions have had a significant impact across every bank globally.

Banks in UAE are highly supportive of the business sector with business incentives such as loan deferrals, banking charge waive-offs, attractive financial solutions, easy bank accounting openings, and more.

There is strict KYC Compliance in all UAE Banks for opening a corporate bank account. They require a bank statement (from the previous bank), a robust business model, and an investor profile to review.

6. VAT Registration and Filing

The Value Added Tax in UAE applies to all consumer and commercial transactions in the region at a rate of 5 %. There are certain criteria for registering the VAT. Companies must be aware of the VAT rules in UAE for smooth operations of their business.

The Federal Tax Authority is the governing body for overseeing VAT compliance, regulations, and the VAT regime in the UAE. For small businesses, entrepreneurs, and freelancers it is not mandatory to file until they have not reached the VAT Threshold.

VAT Registration Compliance to Follow

VAT registration is mandatory for companies that have an annual turnover of AED 375,000. Companies that get VAT-registered benefits can opt for voluntary registration for VAT even though the annual turnover is less than AED 375,000.

Those companies registered for VAT must submit the VAT Returns periodically. Also, file for any VAT refund for business supplies, maintain the VAT record, and pay the due to FTA accordingly.

To know more, read: VAT Registration in UAE

Legal Documents every Entrepreneur must be having in UAE

A new business in UAE must have a strong legal structure and disciplined operations to successfully scale up and achieve sustainability. The company while registering in UAE will receive the Trade License where the mention of the list of business activities chosen will be present.

Also, the Trade License will have the shareholder information, date of company incorporation and expiry date. Another important document is the Memorandum and Article of Association. It states the terms and conditions and rules relevant to the company operations.

Having all the company documents in place enable the business to protect their investment and intellectual property of the business.

An investor or a company must always have their establishment card valid for applying the employee visas as required.

Employee and Company Documents that Must be Available Handy

The next key document is the Non-Disclosure Agreement, employee contracts, and offer letters to keep the employees, and supplier relationship strong.

Then comes the requirement of documentation like the company trade secrets such as trademark registration certificates for the marketing assets, Intellectual Property rights for new products/applications, etc.

Hence, in a nutshell, there are numerous business law amendments in UAE that the investor must closely follow.

All the latest amendments in the Ultimate Beneficiary Ownership, Economic Substance Regulation, VAT Registration, and is having a significant effect on the current businesses that are operating in the country.

To know more about the process and documents required for company formation in UAE, talk to our expert Business Consultants right away!

Contact Us: Aurion Business Consultants

The post Latest Business Amendment Laws in UAE for Entrepreneurs to Follow appeared first on AURION.

UAE is a global trade hub and economic center in the Middle East facilitating large quantity imports and exports to various countries.

Dubai – A Centre Stage for Foodstuff Trading

Dubai is a major destination for the availability of international cuisines and food varieties of around 200 countries. It is home to a wide range of hotels, restaurants, and cafes serving the multi-national population of the region.

There is an immense demand from these commercial establishments on quality food supplies to prepare the dishes and offer customers.

Also, to add to demand is the large population of expatriates working in the region and their families depending on foodstuffs from various brands to fulfill their daily meal requirements.

Business Licenses for Foodstuff Trading in Dubai

Foodstuff Trading License is a popular business license type in the Free Zones and the Mainland of Dubai and the whole of UAE.

Various Free Zones offer Foodstuff Trading License for global investors at attractive Fees. Depending on the nature of the business activity, the entrepreneur can choose the right business license category – Commercial or Trading License.

Foodstuff Manufacturing License in Dubai

For investors aiming at Foodstuff Manufacturing and Trading, it is advisable to take two business licenses one for the manufacturing and the other for the trading of the manufactured goods.

As the business activities, permission required, office space & warehouse requirements, all vary significantly keeping both entities separate work better

Under the broad umbrella of Foodstuff Trading, there are a variety of business activities. Here are the sub-activities that are included in the trading license in UAE

Sub-activities under Foodstuff Trading

• Mineral Water Trading
• Juice Trading
• Vegetable & Fruit Trading
• Ice Trading
• Sugar Trading
• Cereals, Grains Trading
• Vegetable Oil and Ghee Trading
• Snack Food Trading
• Flour Trading
• Egg Trading
• Carbonated Water and Soft Drinks
• And many more…

Additional Foodstuff Trading & Manufacturing Activities

• Food and Beverages Trading
• Food Supplements Manufacturing
• Cereal Food Manufacturing
• Natural (Organic) Food Manufacturing
• Baby food Manufacturing
• And more…

Benefits of Setting Up a Foodstuff Trading License in UAE

Following are the business benefits of setting up a Foodstuff Trading Business in UAE. There will be a steady flow of demand for foodstuff trading companies in UAE.

1. Global Events

Dubai is at the center stage for world-events, exhibitions, meetings, etc. UAE with all safety protocols conducts real-time events at various locations around the city with attendees.

Hence, the importance of Foodstuff Trading in the region’s economic growth is undeniable.

The Gulf Food Exhibition is one of the major industry events in UAE driving up the demand for Foodstuff Trading significantly.

There is a huge market for essential foodstuff and agriculture produce in UAE as the increasing population and the vast export business opportunities.

2. Skilled Staff

There is a wide labor market availability in UAE with low-cost. Foodstuff manufacturing and trading is a labor-intensive sector and UAE is a perfect place for starting the Food Trading business.

UAE has the required infrastructure for large-scale manufacturing, storage, transportation of specialized food essentials and agricultural produce.

A large number of Warehouses and manufacturing centers in the UAE can be leveraged to hike up production volumes to meet the increasing demand from the world for food supplies.

3. Easy Setup Process

Setting up a Foodstuff Trading Business in UAE is a relatively easy process with minimal documentation and clearance required.

For the mainland business setup in the food trading sector, there needs to be special approval from the Food and Safety Department of the Dubai Municipality.

4. Growing Demand from Consumers and Commercial Establishments

The Foodstuff Trading Business in Dubai is a lucrative business sector in UAE. With digital applications, reaching out to new customers has become easier.

The home delivery model is adding more demand spike for essential food items as more consumers are now ordering online from supermarkets, hotels, cafeterias, etc.,

Foodstuff Trading in Dubai Mainland

The Foodstuff Trading License in Dubai Mainland is issued by the Dubai Economy post the approval from the Dubai Municipality.

For business activities including bakeries, cafes, restaurants, hotels, canteens, food trucks, Food kiosks, etc.; and the manufacturing of food and beverages must be applied for a special permit and approval from the Dubai Municipality.

Foodstuff Trading Business Setup Procedures in Mainland

• Get the tradename reservation (3 tradenames for authorities to select) and apply for the Foodstuff Trading License in Dubai from Economy Department
• Prepare the Memorandum of Association, shareholding certificate, and Local Sponsor Agreement for the LLC Company Structure
• Choose the required office space/Warehouse Location / Office +Warehouse, according to the business requirements, and process the Ejari and tenancy contract.
• Submit the investor’s passport copy, photograph, visa copy (if any) to the Dubai Economy.
• Get the preapprovals from the Dubai Municipality by submitting the Ejari and Tenancy Contract
• After all, clearances are obtained submit the required documents along with Foodstuff Trading License Fee to the Dubai Economy.
• Obtain the Foodstuff Trading License and proceed to the opening of a Corporate Bank Account, other business support services (sponsoring employees, customs registration, etc.)

So, in a nutshell, Foodstuff Trading License in Dubai enables Investors to distribute Food and beverages in UAE and export them to other countries.

Add on: Here is what you need for Opening a Cafeteria in UAE.

The large quantity manufacturing and selling of Foodstuffs to meet the rising demand for essential food items in the region is the major driving force for the Food Sector to show steady signs of growth.

To know more about the steps and procedures for opening a Foodstuff Trading business in UAE or Restaurant License in Dubai, Connect with our expert Consultants right away!

 Contact: Aurion Business Consultants

The post How to start a Foodstuff Trading Business in Dubai? – Things to Know appeared first on AURION.

Also, for certain apartment types, there is always a demand in UAE. Additionally, the properties in the hospitality sector is an investment area that is considered a profitable in Dubai. Generally, the Rental returns are assured in Dubai despite the downtime and falling property prices globally.

Start a Real Estate Company in Dubai

Real Estate companies in Dubai have certain procedures and requirements to follow. These are entities that involve the buying, selling, and renting of apartments, villas, townhouses, commercial buildings, etc., in UAE.

Depending on the shareholder pattern the company structure for the real estate company in Dubai must be chosen accordingly.

There is a growing demand for real estate properties in Dubai and there are many active real estate projects that are nearing completion. The real estate landscape in Dubai is currently in a boom period.

The 1 bedroom and Studio Apartments will be always in demand across UAE as most of the employed expat community in UAE stay in such apartment types. While their family will be in their home town. Hence, there is immense potential for a Real estate company setup in Dubai.

Real Estate Agency – Suitable Company Structures in Dubai

There is a boom in the real estate business as the market is on an upturn. So, a real estate company setup in Dubai is beneficial for the business owner. Depending on the number of shareholders and business authority, there are multiple company types available in UAE.

A real estate company can be set up as any of the below company structures:

• Sole Proprietorship
• Limited Liability Company
• Civil Company
• Free Zone Establishment

For real estate brokerage, the company or individual must obtain a certificate from the Real Estate Regulatory Authority (RERA) under the Dubai Land Department. The Real Estate License and the agent registration number is issued after attending a course from RERA.

Real estate company setup in Dubai involves a series of steps that the investor must follow. It is best advisable to seek the assistance of an expert Business Consultant for setting up a real estate company in Dubai.

How to Get a Real Estate License in Dubai?

Real Estate is a prospective business category in the UAE. It is a key industry that contributes to the economy of the UAE. Getting a business license is a mandatory requirement for a real estate company setup in Dubai.

There are various business activities in the broad real estate sector. Depending on the investor’s preference and business background, they must choose the right business activity for starting a real estate company in Dubai.

Property Management License in Dubai is one of the most popular business license categories in the real estate sector. The Property Management License in Dubai can be applied from Dubai Economy or any of the Free Trade Zones in Dubai.

Property Management License covers a wide range of business activities ranging from:

• Contracting with Clean-up, Maintenance, Security Companies
• Administration Requirements Provider for Real Estate Space
• Real Estate Broker Arrangements, and more.

UAE Commercial Law and RERA the regulatory arm of the Dubai land Department aims to offer complete security to the investor when it comes to real estate related transactions in Dubai.

Similarly, a real Estate Brokerage is a preferred business license by investors who wish to conduct real estate transactions in UAE. The real Estate Brokerage Business involves a large number of transactions.

It can be formed as 100% foreign ownership in the Mainland as per the new amendment. However, to reduce the risk of ex-pat investors absconding with huge sums and misusing the license, a UAE national can be added as a shareholder or as a local service agent.

Procedures Involved in Obtaining a Real Estate Business License in Dubai

There are many procedures involved in real estate company setup. Among that, obtaining a real estate business license in Dubai is the most important step. Furthermore, adding the shareholders and appointing managers are an important step in the real estate company setup in Dubai.

For expatriates and Foreign Investors, a professional business license can also be obtained from a Free Zone and can easily set up a 100% owned company without any hassles.

Get associated with an expert business consultant in UAE to register your property management. real estate business.

Types of Real Estate Business Activities in Dubai

There are various types of real estate business activities in Dubai, The real estate brokerage is a popular one among them.

The Real estate brokerage in UAE has two different groups – Real Estate Leasing, and Real Estate Buying & Selling Brokerage. The role of Real Estate Brokerage is working as a link between landlords and tenants regarding property lease against the amount.

The buying and selling brokerage involves real estate property purchases between the owners and buyers.

Procedures of a Registration of a Real Estate Company in Dubai

A real estate company in Dubai can be registered by following the below procedures. In the mainland of Dubai, the real estate company setup is governed by the Dubai Economy, Dubai Land Department, and the RERA.

Business owners can follow the below steps to register their real estate company in Dubai and obtain the Real Estate business license from the respective trade licensing authority.

1. Confirm a Trade Name

Choose the tradename and get the name approved by the Dubai Economy. It is the first step in company formation.

2. Initial Approval Request

Submit the required application form, supporting document – investor passport copy, photograph, etc., and get the initial approval from the authorities.

3. Approval from Real Estate Regulatory Agency (RERA)

For opening a real estate company, the investor/director/manager must appear for the RERA Course and pass the test.

Once the approval certificate from RERA is obtained, the official contract and other agreements can be prepared accordingly.

4. Legal Documentation

Once the initial approval is received and the RERA Certificate is obtained, the investor can choose the required office space and the tenancy contract can be prepared.

In the case of an LLC Company Structure ( Companies with more than one shareholder), the memorandum of association is to be prepared by the investor.

Also,  the partnership agreement for the LLC Company must be made ready.

5. License from DED

All investor documents along with the MOA, RERA Approval, tenancy contract, etc., must be submitted to DED to obtain the real estate license from the authority.

The cost of a real estate business license from DED is approx. 25000 for services license.

6. Registration with RERA

Register the company with RERA to obtain the RERA Registration Certificate. Submit all the required documents to secure the Registration Certificate.

Documents to be submitted:

The following documents are required to be submitted to RERA for the Approval of the Real Estate Business Company operations in Dubai.

• RERA Application Form
• DED Business License Copy
• Payment Receipt
• RERA Course Certificate
• Tenancy control/Ejari Copy
• Location Map

7. Registration with DNRD and Ministry of Labor

To hire employees and sponsor the visas, the company has to be registered with DNRD and the Ministry of Labor.

8. Obtaining Brokers Card

The Real Estate Agent employed by the company must be a holder of the brokers’ card issued by RERA.

Cost of Starting a Real Estate Company in UAE

The cost of Real Estate Company Setup in Dubai depends on the business jurisdiction chosen.

To set up a Real Estate business establishment in UAE, the investor has to shell out Approx. AED 25,000 as the business setup cost for a mainland company.

There are various company structures in the  Free Zone and Mainland. There are single shareholder Free Zone Company, multiple shareholder Free Zone Company, LLC Company – DED mainland.

Real Estate Business License is categorized under the Professional License type in UAE. The cost of setting up a real estate brokerage in the Free Zones of UAE is a cost-effective means to easily start an establishment in UAE.

An investor can opt for a fully furnished ready-made office for their real estate company and avail a host of business benefits offered by the Free Zones of UAE.

To know more about opening a real estate company in UAE, talk to our expert business consultants right away!

The post Real Estate Company Setup in Dubai – Things to Know for the Foreign Investor appeared first on AURION.