Freelance License in UAE can be obtained from the Free Trade Zones and the Dubai Economy. There are selected activities for which the Freelance License is available. The Freelance License cost starts from AED 5,750 for media related license in Sharjah Media City Free Zone.

In Dubai, the Freelance License cost around AED 8,500 for the 1 year license. Businesses in the region are experimenting with remote working possibilities. They are also focusing on efforts to reduce overheads and employment expenses.

Above all, many companies as part of cost-saving methods move to the Work-from-Home model. They are delegating projects to remote working staff and Freelancers

Remote Working – A New Trend

Remote work setup is becoming a mainstream of business operation globally. Presently, more than 80% of companies are resorting to the remote work environment to stay afloat in the turbulent market situations.

There is no requirement of huge office spaces for companies when employees are working from home. Hence, entrepreneurs can lower the overhead costs of maintaining an office space. Instead, they can hire freelancers with a valid Freelance License in UAE for projects.

Presently, remote working and Freelance license is becoming popular in UAE. Many entrepreneurs and companies are looking at various business models to sustain business growth. The remote working setup helps to enhance productivity and profitability with minimum expense.

Hence, these scale-able Remote Working Setups become investors’ favorite choices for setting up a company in UAE and growing the business eventually.

Remote Working Setup with the Potential to Easily Scale-Up

The Work-from-Home concept has given rise to a host of businesses that can scale up easily in the remote work environment. Following are the few business areas in focus:

1. Digital Marketing Consultancy

Digital Marketing is a key business area that is witnessing a positive growth rate presently.  As a result of companies and consumers remaining indoors, internet usage grew dramatically. Also, more people entered the world of digital communication.

Thus, there is an enormous opportunity to tap into a new audience group by leveraging digital channels. So, Digital Marketing Consultancies are in huge demand to share their expertise. They help brands to effectively reach out to the digital audience.

Setting Up a Digital Marketing Consultancy in UAE

Entrepreneurs can easily set up a digital marketing company in UAE. They can opt for a services license from the UAE Free Zones for an affordable fee.

So, to start the business with minimal investment, the entrepreneur can look for a freelance license or a company license with 1 visa quota. Then eventually expand to a full-fledged digital marketing consultancy.

To keep the overall company setup cost and overhead cost low, entrepreneurs can look for flexible-desk space or shared workspace. Subsequently, for executing digital services a huge office space is not an essential requirement.

One requires a good laptop and internet connectivity to execute digital projects for clients. All client meetings can be arranged on-premises or in any convenient location. So, digital marketing consultancy is the best choice for remote working.

Check out the latest UAE Free Zone offers here: Cheapest Free Zone in UAE

2. Freelance Marketing Consultants

Freelance Marketing Consultants are the next most in-demand professionals globally. Many companies are currently looking for resources to coordinate marketing activities and gain a strong online and offline presence.

Marketing Consultants have a key role in promoting the brand image and reach for the product & service of a company. So, entrepreneurs can take a Freelance License from any of the Free Trade Zones in UAE. They can easily start a marketing consultancy through a remote work setup.

How do Marketing Consultants help Companies?

Effective strategies are implemented using marketing expertise and the results are tracked. It is a perfect remote working setup where the Marketing Consultant can work in isolation and collaborate using online channels.

To gain better visibility in the online space the companies are depending on Marketing Consultants.  They help companies with innovative marketing practices to strengthen the brand’s presence online and in other channels too.

Companies explore various marketing initiatives to gather leads for their business through the help of a marketing consultant. Hence, a Freelance Permit in the field of Marketing will help entrepreneurs easily start a marketing consultancy for themselves.

For an entrepreneur who is a marketing professional or has experience in the marketing consulting field, there is an immense business opportunity in the field.

Explore the various Freelance License Packages here.

3. Online Tutoring and Coaching

Online Tutoring is witnessing rising popularity presently. It became a common online education business category during the lockdown period.

Since, schools, colleges, outdoor activities, and events were restricted, the demand for online coaching and study classes saw an increased acceptance. Online Tutoring is widely used in many parts of the world where internet connection is stable.

It is a perfect option for remote working and investors can obtain an educational training service license from the Free Zones of UAE. The entrepreneur can also obtain a Freelance Permit for delivering online tutoring services to students in UAE and abroad without any hassles.

There is a rising opportunity in the Online Tutoring space. The demand for online tutoring services is increasing with more kids having internet access. There are many applications, course aggregators, and online providers that require content creators, tutors, and many more.

Growing Business Ecosystem of Home Tutoring

The Home Tutoring ecosystem is in a nascent stage at present. It is expected to grow into a full-fledged business sector soon with more players entering the online tutorial market.

There is a vast range of online courses available for users to enrol in and take classes. It ranges from home tuition for kids, learning music, art, yoga, etc., to learning a new skill for professionals, and more.

Hence, entrepreneurs entering the segment have immense verticals to work on like coordinating with tutors, scheduling the course, enrolment, preparing the course details, and more.

4. e-Commerce and Online Shopping Portal

e-Commerce is another area that is seeing a surge in growth since the shift of consumers to online platforms for purchase. Online shopping rose sky-high with people moving to online shops, e-commerce portals, and online food delivery to meet their daily needs.

There is enormous opportunity in this sector for start-ups and investors to start small and scale up. With a small drop-shipping or home-based e-commerce store, entrepreneurs can scale up high.

Entrepreneurs can leverage their skills in e-commerce order management, home delivery, logistics, eCommerce portal management, and more. It is the right choice for investors choosing remote work as they can manage everything online.

5. Virtual Assistance

Virtual Assistance Services connects the world in the digital space. It has a wide scope starting from support to booking a doctor’s appointment to getting the banking services sorted; there are Virtual Assistance services available now.

It is a perfect choice for remote working from a home office, coffee shop, or anywhere. Virtual Assistance helps investors to achieve a steady workflow, clients, and money to sustain the business with minimal investment.

The entrepreneur can obtain a Freelance Permit with a consultancy license. Most of the work can be coordinated remotely via online platforms.

6. Home Bakers and Cloud Kitchen

There is a growing trend in home bakers and cloud kitchens in busy towns that provide homemade meals and bakery items to work professionals on-demand. It is a perfect choice for remote working in UAE.

For entrepreneurs to launch a home baker store or a cloud kitchen is very easy with few alternations to the home kitchen to accommodate the quantity you plan to sell.

In the UAE you can obtain a business license (Food/Cafeteria License) to start your home bakery or Cloud Kitchen after receiving the necessary approvals and the company documents.

The above-indicated business areas are not an exhaustive list of potential categories that are easily executed in a remote working setup.

In most of the cases above, the investor can take a 1 visa business license from the UAE Free Zones or a Freelance Permit to conduct the business operations.

To know more about the ways to set up a company in UAE in the most cost-effective way, talk to our team!

Contact Us: Aurion Business Consultants

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So, investors can get a Co-Working Space in UAE Free Zones by taking a virtual license and opting for a Flexi-Desk or Shared office for their company. 

What are Co-Working Spaces in UAE?

Co-working Spaces in UAE are basically Share-desk or Flexi-Desk facilities for investors to work for specific hours in a day. It is a great option to save the initial setup fees and office rent.

Start-ups and Freelance choose Co-Working spaces in UAE initially to manage their expenses and make a profit from the assignments. The Free Zone in UAE has dedicated Co-Working spaces for investors who opt for a virtual company license.

Thus, Co-working spaces have many advantages over fully customized office spaces. It is a perfect choice for entrepreneurs who are building a new client base and expanding the market. 

Why Should an Investor Choose a Co-Working Space in UAE?

The business scenario in UAE is at a growth phase with more start-ups entering the market. Freelancers and entrepreneurs are exploring new market opportunities constantly and co-working spaces are perfect to start with and then scale up to a fully customized office space in the free zone.

1. Flexibility

Co-Working spaces in UAE provide entrepreneurs the flexibility to work in their desired comfort and not bound by a typical office setup. So, it helps the entrepreneur to focus more on the core business and reduce the burden of operating expenses.

Also, most of the co-working spaces in UAE have 24-hour access and the investor can plan their day and split jobs and take care of a family along with having a fully concentrated workspace.

2. Convenience

Convenience is the key to co-working spaces in UAE. The ability to keep the cash flow low and choose the working space on demand is a win for co-working spaces.

Thus, the investors can choose the workplace according to the requirement and volume of work. They can keep the operational expense at an all-time low at the same time focus on the core business activity more effectively.

3. Networking Opportunities

There are immense networking opportunities in co-working spaces in UAE. Like-minded innovators and entrepreneurs can share business ideas and collaborate on projects.

Hence, entrepreneurs can easily strike up conversations and ideate for new projects. Also, co-working spaces are a perfect launchpad for start-up applications to test the audience.

Subsequently, the Co-working spaces in UAE also conduct frequent professional development workshops, regular networking events, etc., that will help build business contacts and gain new customers. Also, it is a perfect place for word-of-mouth marketing and will amplify your visibility for you as an entrepreneur.

4. Amenities & Services

Co-working spaces have world-class infrastructure and modern amenities to keep entrepreneurs active around the clock. It has every business support system that will easily help in scaling up your venture.

Hence, most of the co-working spaces across the world have the following in common:

• Meeting rooms- Conference rooms for calls, meetings, with potential clients, and holding strategic discussions
• Break Spaces- Outdoor areas, pool tables, and lounges
• Office Stationery – Office furniture, Flexi-desks, office stationery
• Cafes & Restaurants – Free Coffee, fruits, basic appliances fridge & microwave, etc.
• Work-Life Balance
• Co-working spaces

5. Work-Life Balance

Co-working spaces help the entrepreneur to plan their day more effectively and be free of distractions while they are focused on work. Thus, they can access their workspace at any convenient time and maintain a healthy work-life balance by being with family and friends too during their off-peak hours.

Also, the 24-hour access to Co-Working spaces in UAE allows entrepreneurs to spread their work and errands to a 24-hour window.

Free Zones in UAE – Co-Working Spaces Available

The Free Trade Zones in UAE play a vital role in the progress of business and commerce in the region. The start-up growth in UAE is powered by the cost-effective business license and freelance license package.

Hence, most of the Free Trade Zones in the UAE offer co-working spaces and Flexi-Desk office areas for freelancers and entrepreneurs to easily start and scale up their business ventures. 

Co-Working Spaces in Dubai Free Zones

With the start-up revolution in Dubai and more foreign investors focusing on setting up their base in the region, the demand for Co-Working spaces is skyrocketing.

Additionally, in the Free Zones and Mainland, there is a boom of Co-Working spaces. Entrepreneurs opt for doing their work by paying for the business infrastructure and allied utilities on a pay-as-you-use model.

1. Dubai Silicon Oasis – IFZA

Dubai Silicon Oasis-IFZA is the fastest growing Free Trade Zone that has exclusive company formation packages for start-ups and innovators. The Free Trade Zone offers a host of cost-effective business setup packages available for entrepreneurs.

IFZA offers a low-cost business license package with a flexi-desk and shared office setup for the investors. The business license cost starts from AED 17,300 for setting up a One Visa Quota company in the Free Zone

IFZA Dubai offers the perfect platform for start-ups to thrive. The business infrastructure, virtual events, Free Zone Authority support, business ecosystem are all ideal for the start-ups to grow.

The straightforward company formation process, faster UAE residence visa process, Dubai Address, proximity to Business Centers of UAE, etc., are add-ons for the popularity of this Free Zone among start-ups and entrepreneurs.

2. DMCC – Dubai Multi Commodities Centre

DMCC Dubai offers cost-effective business setup packages for investors. There are approved Co-Working spaces in DMCC Free Zone that investors can sign up with after receiving the business license from the Free Zone.

Read more: DMCC Business Setup Packages

3. Dubai Airport Free Zone Authority

Dubai Airport Free Zone Authority (DAFZA) is the most prestigious Free Trade Zone in the UAE. Globally investors are looking at establishing a company in Dubai Free Zone for experiencing the host of business benefits the Free Zone is offering for the investors.

The prestigious Dubai Address, access to world-class business infrastructure, being part of a niche business network, etc., makes Dubai Airport Free Zone the first choice for global investors.

There are Flexi-Desk and Shared offices available for entrepreneurs to kick-start their business activities. They can later expand to a full-fledged office space in the Free Zone.

Co-Working Spaces in Sharjah Free Zones

Following are a few of the Free Trade Zones in Sharjah that offer Co-working Spaces for investors at competitive prices and top-class facilities. Connect with our expert team to know more about the process of obtaining a Co-working Space in UAE for your company.

1. Sharjah Media City

The Sharjah Media City (SHAMS) is a dynamic Free Trade Zone offering start-ups cost-effective business setup packages.

To start a consultancy company, the Free Zone business license package starts from as low as AED 9,200 for a Zero visa quota. It offers a wide range of business activities and business infrastructure for entrepreneurs to easily set up and scale up their business ventures.

Sharjah Media City also offers affordable media as well as trading licenses. A Freelance Permit can be obtained for a special discount package of AED 5750 with a Zero visa quota.

Also, the Flexi-Desk office spaces can be availed for a monthly rate or pay-as-you-go basis.

2. Sharjah Publishing City

Sharjah Publishing City is another newly formed Free Zone in the Emirate of Sharjah. It offers special business license packages for entrepreneurs to easily scale up their business by keeping the company setup cost low.

Investors can obtain a trade license from SPC Free Zone for a cost of AED 5,750 for a Zero Visa Quota company. Entrepreneurs can upgrade to business license packages with visa quotas and fully furnished office types accordingly to their business requirements.

From Flexi-Desk to Executive offices, the Free Zone offers investors several kinds of office spaces and business support services.

In conclusion, the Co-working Spaces in UAE are receiving great traction among entrepreneurs for their low cost. It is the perfect option for an investor who is beginning company operations in the country.

Also, the cost of a Co-Working Space is generally lower than a full-fledged office space. Hence Entrepreneurs prefer a Co-working space and start working there initially and take a full-fledged office as they expand.

To know more about Freelance business licenses, and co-working spaces in UAE, connect with our expert business consultants right away!

The post How to get a Co-Working Spaces in UAE Free Zones? appeared first on AURION.

However, for the businesses to not have any hassles in the course of their regular business operations, knowing the business regulations in UAE are essential. UAE has several regulations in place for smooth and transparent business operations.

The Entrepreneur must comply with the Company Laws that will:

• Govern the business
• Protect Labour rights, consumer rights, and intellectual property rights
• Protect the health and the environment
• Govern the Free Zone that the business is established in.

1. Economic Substance Regulations

The Economic Substance Regulations (ESR) is in line with UAE’s commitment to international tax cooperation and transparency.

All companies in the UAE’s onshore and Free Zones that carry out any of the ‘Relevant Activities’ listed in the regulatory framework must submit the ESR file. Also, these companies must have an adequate ‘Economic Presence’ in UAE and will have to undertake the Economic Substance Test.

To know more, read about Economic Substance Regulation in UAE

2. Business Regulations in UAE

Businesses in UAE are governed by two major Business jurisdictions the Mainland and the Free Zone depending on where the company is established. Each of the business jurisdictions has its own governance and policies that the businesses have to adhere to.

Business Regulations for Mainland Companies

The companies operating in the mainland of UAE are governed by the Federal Law No.2 of 2015 on Commercial Companies.

Business Regulations for Free Zone Company

The businesses operating in a specific free zone will be regulated and governed by the policies of the free zone. In some cases, it might be additionally governed by another government entity.

Law on Bankruptcy

Business bankruptcy in the UAE is governed by Federal Law by Decree No.9 of 2016. The law provides a legal framework to help distressed companies in the UAE avoid bankruptcy and liquidation through various mechanisms such as:

• Out-of-court financial restructuring
• Composition procedures
• Potential to secure new loans under terms set by law
• Conversion to the declaration of bankruptcy and liquidation of debtor’s assets

Changes to UAE National Minimum Ownership Law – 100% Expat Ownership in UAE Mainland

The recent company law amendments state that there is no requirement of a UAE national for establishing a company in the mainland of UAE. More than 1000 business activities are on the positive list which allows 100% ex-pat ownership.

For a service company in the mainland for there must be a local service agent appointed by the company for an annual fee.

The local Agent does not have any control over the shares or the business operations but will act as a liaising agent with the government during the trade license renewals.

Ultimate Beneficial Ownership in UAE

Based on the UAE Government Cabinet Resolution 58, 2020, the Ultimate Beneficial Owner Procedure is for increasing corporate transparency.

The resolution is applicable for all legal entities that are registered in UAE Mainland and the Free Zones. The entity must keep the details of their owners ready at their office premises and must file it with the authorities. Any change in the register must be notified to the authorities immediately.

Filing Ultimate Beneficial Ownership

The reason for filing for UBO is to reduce the chances of monetary fraud at corporate levels. unregulated industries can get into financial transactions that can be harmful to the country. Declaring the shareholders of the company as Ultimate Beneficial Ownership can avoid all illegal transactions and curb money laundering to a great extent.

A person or party owning more than 25% of a company share or the person who benefits from the transaction made by the company in UAE must be registered as the Ultimate Beneficial Owner of the company.

VAT Registration and Filing

Business residents in UAE must mandatorily register for VAT who have a turnover of more than AED 375,000 in the last 12 months. Also when a company’s turnover exceeds more than AED 375,000 in the next 30 days they can apply for the VAT registration.

Businesses in UAE can voluntarily register for VAT if the turnover or expenses (subjected to VAT) were more than AED 187,000 in the last 12 months or the company expects the turnover to exceed AED 187,500 in the next 30 days.

UAE Cabinet has defined certain Free Zones as Designated Zone. It is treated outside the scope of VAT when the goods are transferred between Designated Zones.

Filing the VAT Returns in UAE

At the end of each tax period, VAT-registered businesses must submit a VAT Return to the Federal Tax Authority (FTA). A VAT Return summarizes the value of supplies and purchases a taxable entity has made during the tax period and shows the person’s VAT liability.

The VAT filing is either monthly or quarterly depending on the annual turnover. If the annual turnover is less than AED 150 million, It can be submitted quarterly.

To know more, read VAT Registration in UAE

Excise Tax in UAE

Excise Tax was introduced across the UAE in 2017 as a form of indirect tax levied on specific goods that are typically harmful to human health or the environment.

The rate of Excise Tax on various items are:

• 50% on carbonated drinks
• 100 percent on tobacco products
• 100 percent on energy drinks
• 100 percent on electronic smoking devices
• 100 percent on liquids used in such devices
• 50 percent on any product with added sugar or other sweeteners

Hence, businesses engaged in the following categories must be registering for Excise Tax.

• Import of Excise goods into the UAE
• Production of Excise goods where they are released for consumption in UAE
• Stocking of the Excise goods in UAE in certain cases
• Overseeing an Excise warehouse or designated warehouse storing Excise goods

Businesses can register for Excise Tax through the FTA Website, Aurion will assist in registering for Excise Tax in UAE.

To know more about the Business Laws in UAE that are applicable to your company. Talk to our expert Business Consultants right away!

Contact Us: Aurion Business Consultants

The post Company Laws in UAE that Every Entrepreneur Needs to Know appeared first on AURION.

There are more than 45 Free Trade Zones in UAE that offer customized and cost-effective packages for entrepreneurs to start their dream company.

Visa Sponsorship – Sponsoring Dependents in UAE

An employee in UAE other than domestic workers can sponsor their immediate family, wife, and children with a minimum salary of AED 4,000 or AED 3000 plus accommodation.

Irrespective of the job functionality or position held, as far as the employee has a valid UAE residence visa, they can sponsor the dependents.

Female Sponsoring the Dependents in UAE

For female residents to sponsor their family there are few criteria to be followed. They must be holding a valid UAE Residence Visa and must be in any of the following professions – engineers, doctors, teachers, medical sector, or others (Special approval required).

Also, the female sponsor must have a monthly income of AED 10,000 or AED 8,000 + accommodation. For women in other categories must have a monthly salary of AED 10,000 and must get special approval from the General Directorate of Residency and Foreigners Affairs (GDRFA).

Sponsoring Parents in UAE

To sponsor parents one must earn a minimum salary of AED 20,000 or a monthly pay of AED 19,000 plus a two-bedroom accommodation. Also, a medical insurance policy with minimum coverage is stipulated for each.

The visa issued is valid for one year and would be required to apply for renewal after the period. The sponsorship of parents is for both the parents and cannot bring only one parent under the sponsorship.

Sponsoring Single Parent

In the case of single-parent. the related official document as a justification to sponsor must be provided to the authority as required.

There are special approvals required from the GDRFA if the sponsor is a son or daughter-in-law of the parents. A Kinship certificate and other different documentation would be required accordingly.

Residence Visa for Children Sponsored by Parents

There are amendments made to the residence visas for 18-year-old sons sponsored by their parents (until the age of 21).

Under the new rule, the ex-pats can apply for a renewable one-year residence visa for their son. There is no deposit amount required for applying for the visa for the children. For a girl child, the parents can sponsor them until they get married.

Long Term Residence Visa Rules – Golden Visas

The 5-years and 10-years Golden visas have changed the residence status of UAE into a long-term destination for ex-pats. Also, with the retirement visas, UAE is becoming a family-friendly location for the ex-pat to work, live, study, and settle for the long term.

To know more read about Golden Visas in UAE – How to Apply and Eligibility Criteria  

Documents Required and Visa Fees

• Passport copy (in color) valid for six month
• Original Emirates ID
• Dependent Passport copy and color photograph (white background recent picture)
• House Rental Contract showing the minimum requirement for Sponsoring wife/children/parents accordingly
• Electricity bill copy
• Labour contract or salary certificate
• Bank Statement for sponsoring parents
• Mobile number, email id, and P.O Box (if any)
• Birth certificate – (for a newborn), Marriage Certificate Attested and Legal Translate (Arabic) for Spouse Sponsorship

Sponsorship Visa Fee

• File Opening – AED 280
• Entry Permit – AED 530
• Medical Fitness Test – AED 345
• Emirates ID (2-Year Fee) – AED 270
• Visa Stamping – AED 400 (Normal), AED 480 (Urgent)
• Change status – AED 1,330 AED

**Actual Rates May Vary please contact us for precise rates

New Visa Rules and Effect on Property Market

With the expat-friendly residency rule amendments, it is anticipated that the property market will see a long-term revival.

More ex-pats will bring in their dependents and the residential apartments will have higher occupancy rates.

Also, it is expected to be a boost to the purchase of freehold properties in UAE by the middle and high-income ex-pat population who will be settling in AUE for a longer-term.

Company Formation and UAE Residence Visa

Company formation in UAE is a straightforward way towards obtaining a residence visa in UAE. The company owner will get an investor visa for 2 years from the mainland or free zones of UAE.

Setting up a company in UAE is easy with the Free Zones due to the quick and reliable business support and infrastructure facilities offered.

Also, the investor can benefit from umpteen business benefits and sponsor their family in UAE. UAE is the perfect location for expanding business internationally as it a hub for trade and commerce.

To know more about the latest Company Formation Packages from UAE Free Zones, talk to our expert Business Consultants right away!

Contact Us: Aurion Business Consultants

The post How to Sponsor Dependents in UAE? – Live, Work, Study & Settle in UAE with Family appeared first on AURION.

Foreign direct investment in UAE is expected to rise as the business-friendly policies and growing business ecosystem constantly supports business growth in the region.

Mainland, Free Zone, Offshore – Three Business Jurisdictions

In UAE, there are three main business jurisdictions – The Mainland, Free Zone, and Offshore.

Based on business requirements the investors can choose the required business jurisdictions. The three business jurisdictions of UAE are distinct and come with their advantages and business benefits for the investors.

Mainland Company in UAE

Mainland companies in UAE are mostly registered as Limited Liability Companies. The next common company type in the Mainland of UAE is the professional license category or Civil Company. There are other Public and Private Joint-Stock companies in Mainland that are Semi-Government companies.

The Department of Economic Development in Dubai is the Licensing Authority for registering a Limited liability or Civil Work Company. Global Investors can choose the various business license types and activities available to start a company in UAE.

Also, almost 122 business sectors are on the positive list that allows 100% ex-pat ownership with no minimum share capital requirements. The foreign ex-pat can register a company in the mainland without the requirement of a local sponsor.

There are many advantages for the investors for setting up a company in the mainland of UAE. It is a perfect choice for large-scale commercial and industrial units as well as retail businesses. Service License or Professional License is also one of the major business license categories in the Mainland.

100% Expat Ownership for Mainland Companies

The recent cabinet decision enables 100% ownership for expatriates and eliminates the need for local sponsors or local service agents. Most of the business activities in the mainland are obtained by foreign investors with 100% ownership.

Business Activities in the field of consulting, commercial, industrial, eCommerce, etc., can be opted by foreign investors to obtain the trade license. The process of mainland company formation is hassle-free and quick.

Investors can choose from a wide range of business activities and business license types at affordable trade license costs from the mainland of UAE.

Mainland Company Formation – Key Highlights

Depending on the business activity and company type, the mainland company registration requires certain pre-approvals and will enable the company to trade in the whole of UAE, GCC, and beyond.

• Mainland companies have total flexibility in carrying out a wide range of business activities including industrial, commercial, and professional sectors.
• Investors can take office spaces, retails shops, and showrooms in UAE and conduct business in the UAE and the rest of GCC regions seamlessly.
• Obtaining a UAE Residence Visa, sponsoring employees, and opening a corporate bank account in UAE is easier using a mainland license as the company has a physical address in UAE.

Pre-Approvals for Strategic Industries

The mainland company formation is relatively easier when compared to offshore companies. Depending on the business activity chosen, the offshore company will require a pre-approval to get the business license.

Whereas, for mainland companies unless healthcare, manufacturing, and other strategic business activities, the company registration process is instant and the company license can be issued within hours.

Professional License from UAE Mainland – Steps to Follow for Starting a Civil Work Company

Using the professional license category, a Civil Work Company can be registered through the DED, Dubai. Civil Work Company enables the professional to quote for Government orders and tenders.

Following are the steps involved in Opening a Civil Work Company in Dubai. Civil work Companies help professionals to set up their business ventures in the mainland of Dubai.

AURION will assist in setting up a Civil Company in UAE, our team of expert Mainland Company Formation Consultants will guide you through the complete process and handle all the related activities to ensure you get the Civil Work Company License at the lowest cost. Our team will assist in:

1. Choosing a tradename for the Civil Company and getting the pre-approvals
2. Filling up the Application form and submitting the shareholder details to the DED
3. Preparing the Tenancy Agreement for the office space
4. Preparing the Agreement for the Local Service Agent and Appointing an LSA for the Civil Company
5. Making the required fee payment for obtaining the Professional License
6. Obtaining and Delivering the Professional License to the investor
7. Applying for the investor visa and coordinating the opening of the bank account for the company.

In a nutshell, the Professional License from UAE mainland is one among the preferred business license categories by foreign investors who are looking to venture into services business and expand their business network in UAE

Free Zone Company Setup

Free Zone companies enjoy 100% foreign ownership, tax-free status, no customs duty for import-export. Also, there is a VAT exemption for designation free zone and investors get access to world-class business infrastructure and amenities.

Free Zones offers a cost-effective business setup and need not have a local partner or agent. It has fully furnished office space readymade warehouses and light manufacturing units readily available for investors to take.

The shareholders, directors, and employees of a free zone company are eligible for obtaining a UAE residence visa.

Free Zone Business Benefits

Free Zones enable investors to experience a hassle-free business setup and peace of mind. The business license fee is paid upfront for a year, also the rental expense of the office space is paid to the Free Zone as a whole yearly.

It gives relief for the rest of the year and the investor can focus on their core business activity more. Also, the Free Zones offer a perfect business ecosystem for investors to easily scale up their business. It also enables the business to get access to world-class amenities and facilities. 

Most of the Free Zones are VAT Exempted and consist of an in-house residence visa processing center. It is a perfect choice for trading companies as the customs clearance process is far easier and the proximity to airports and seaports make the transfer of goods and services easy,

What are Offshore Companies?

Offshore Companies are registered with the offshore jurisdictions of a business center. There are there offshore jurisdictions in UAE that are RAKICC, Ajman, and Jafza. Offshore companies do not fall under the legal and business regime of UAE mainland or Free Zone Authority.

Offshore companies also fall outside the scope of VAT (Value-Added-Tax) in UAE as these companies are deemed to be outside of UAE and does not have a onshore/resident status. The companies can neither open office spaces in the UAE nor can apply for UAE Residence Visa for the employees. It is an ideal option for investors to conduct international trading.

Ras Al Khaimah International Corporate Center –RAKICC

RAKICC is one of the most popular offshore business centers in the UAE. The key highlights of RAKICC Offshore are:

• 100% foreign ownership and confidentiality of the owner ( No public documentation, No audit reports for renewals, No share capital requirements)
• Robust Offshore infrastructure with easy company formation process,
• Ability to buy and own properties in UAE with the virtual license obtained.
• Operate the business from being at anywhere in the world

It is a perfect choice for companies looking at an international market expansion. The tax-free status of Offshore company makes it a favorite choice among foreign investors.

To know more, read : Offshore Company Formation in RAKICC

Jebel Ali Free Zone Authority (JAFZA) Offshore

JAFZA Offshore is governed by the Jebel Ali Free Zone Authority. The Offshore companies listed with JAFZA will have direct access to one of the world’s largest shipping ports to easily facilitate global trade.

JAFZA Offshore – Key Highlights

The exemption of taxation, absence of personal and corporate tax, no import-export duties currency restrictions, etc.; make investors choose JAFZA for setting up their offshore company. There are many business benefits for a JAFZA offshore Company such as no minimum capital requirement, the appointment of directors and secretaries are mandatory, annual reporting requirements, etc.

Offshore Companies in JAFZA can purchase real estate in Dubai upon receiving pre-approval from the developer and free zone authorities. Similarly, offshore companies can be owners of mainland and free zone companies by investing in company shares.

Ajman Offshore

Ajman is another choice and when it comes to offshore company setup. With a relatively low price, it offers a perfect choice for the investor. Ajman Offshore is the cheapest offshore business jurisdiction in UAE. The companies can conduct operations outside of UAE and have the ability to purchase a property in the emirate of Ajman.

There must be a shareholder and director to register the offshore company, the presence of the company is mandatory. There is no minimum requirement for the share capital in Ajman Offshore.

Read more about Free Zones vs. Offshore Companies in UAE and Which is the best Emirate in UAE for Company Formation. To know more about Company Formation in UAE, talk to our expert team right away!

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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

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The ease of doing business in UAE, the robust business ecosystem, improved lifestyle, secured corporate banking network, lowest crime rates, etc., make UAE the perfect destination for establishing a company.

Why is Investor Visa a Popular Visa Category in UAE?

For business owners, there is a separate visa category known as the Investor or partner visa. Business Owners can register their companies in the mainland, or Free Zones and can apply for the investor visa.

Investor Visa in UAE allows an individual to manage a company of their own and sponsor employees and family members under the newly incorporated company.

Based on the location where the company is established the entrepreneur can apply for the UAE Investor visa.

How to Get a Dubai Investor Visa?

In Dubai, the entrepreneur can obtain an investor visa in two ways –

1. Registering a Mainland Company
2. Incorporating a Free Zone Company

There is one more popular way of obtaining an investor visa in Dubai and that through property purchase of a residential apartment, or a villa worth value (current sale price) above AED 1 Million for a 3-year visa, and AED 5 Million or above for a 5-year visa.

Also, there is a 10-Year investors visa where the applicant must invest about 40% of the total investment value (AED 10 million) in real estate in UAE and the rest in any business establishments or funds in the region.

Documents Required for Obtaining an Investor Visa in Dubai Mainland

• Passport copy
• Photograph with white background
• Memorandum of association for the company
• Copy of the Local Sponsor Agreement with UAE Nationality
• Immigration Establishment Card
• Trade License
• Office Space Lease Agreement
• Bank Statement for last 3 months

How to Apply for Dubai Investor Visa?

In Dubai Mainland, the Investor Visa can be applied in Amer Centres across the city.

After registering the company and obtaining the trade license, the entry permit for the entrepreneur must be applied if he/she is not in UAE currently (if in UAE, apply for the changing status by paying the in-country status change fees).

Steps in Applying Dubai Investor Visa

Once the confirmation of change status is received, the investor visa will be stamped on the entrepreneur’s passport. The required visa stamping fee must be paid to obtain the Investor Visa in Dubai.

The required documents must be submitted to the Amer Center for processing of the investor visa.

There will Extra charge for the medical testing and Emirates ID. The immigration Establishment Card would be required for applying for the investor visa.

Dubai Investor Visa for Free Zone company

The Free Zones in Dubai plays a vital role in attracting significant foreign investment through facilitating company formation.

It also provides the required infrastructure and support functionality to entrepreneurs wishing to invest and settle in UAE.

There is a steady growth in economic activities that are centered around the Free Zones of UAE.

Free Zones in UAE – Major Highlights

The major highlight of a Free Zone company formation is the 100% foreign ownership, ease of business setup, and the tax savings from VAT while being in a VAT Exempted Free Zone.

Free Zones are the favorite choice of foreign entrepreneurs for company incorporation due to the umpteen business benefits and the ease of setting up a company.

Also, obtaining an investor visa is hassle-free with the Free Zone.

How to Obtain Investor Visa for Free Zone Company?

For Obtaining the investor visa for a Free Zone Company, the following documents are submitted to the respective Free Zone Authority.

• Investor passport copy & photograph (white background)
• Establishment Card for the Company
• Company Trade License
• Memorandum of Association
• Tenancy Contract for the Office
• Bank Statement for 3-6 months

It usually takes 5 to 7 working days to complete the whole process of processing the investor visa.

Starting from applying for the visa to the final stamping of the investor visa on the passport the process is streamlined by the immigration authorities in UAE.

Depending on the Free Zones, the time taken to process the investor visa varies as the schedule of processing the visas differs across the Free Zones.

10-Year and 5-Year Investor Visa (Golden Visa)

UAE Government has launched a long-term Golden Visa to boost the economy and provide a platform for long-term investments in the region.

The long-term investor visa enables entrepreneurs to extend their tenure and expand their business investments in UAE.

There is a set of criteria specified by the UAE Government for the investors to be eligible for the investor visa.

To know more about it, read the criteria for Golden Visa in UAE here.

Other Residence Visas Launched in UAE

To make UAE a global tourist, family-friendly, and business-centric country, UAE Government has a list of specific UAE Residence Visas for individuals from different walks of life.

There a student visa for students studying in UAE colleges with the eligibility to sponsor their parents by meeting specific criteria.

Similarly, there is a retirement visa for ex-pats aged above 55 years subjected to few criteria such as having a financial saving of more than AED 1 million, property investment of value more than AED 2 million, etc.

To know more about various UAE residence Visa and steps in obtaining an investor Visa in UAE, connect with our expert team right away!

Contact Us: Aurion Business Consultants

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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 major logistics hub and a trade center. It facilitates import-export to more than 180 countries across the world.

UAE – The ideal location for Heavy Equipment Trading

Also, UAE’s economy is driven by the growth in the construction, real estate, tourism, and infrastructure sector.

So, there is a growing local demand for Heavy Equipment Trading in the region.

The well-connected shipping lines and airline routes have made UAE the best choice for setting up heavy equipment machinery trading and setting up a manufacturing center with a global distribution network in the region.

Heavy Equipment & Machinery Rentals – A Sub Category

Heavy Equipment & Machinery rental is a booming sub-category in UAE due to the growing demand for heavy equipment in the field of construction.

The construction sector in UAE is vast and there is a constant requirement for heavy equipment such as cranes, heavy-duty trucks, concrete mixers, etc.

The industrial and commercial sector is another sector where the heavy equipment requirement is growing. Large manufacturing plants and warehouse licenses in UAE are in high demand to meet the local business requirements.

Advantages of Starting a Heavy Equipment Rental Business

Heavy Equipment & Machinery purchases require a huge investment and easily it can go up to a few 100,000 dollars.

So, to complement the primary business activity, starting a heavy equipment rental business could help the Heavy Equipment Trading Company to expand their service offering.

Customers who do not want to spend too much money on buying the product can instead use them as rentals for a fee per hour/ per project contract accordingly.

Also, renting used heavy equipment & machinery can further help in growing the business and keeping the initial investment lower than purchasing new equipment and selling it or renting it out.

Industry Demand for Heavy Equipment Trading

So, equipment like forklifts, refrigerators, and other industrial machinery would be required in large numbers to meet the industrial requirements in the region.

Now with Expo 2020 on the onset, the real estate, tourism, and infrastructural facilities in UAE are getting a major enhancement to handle a large number of visitors coming into UAE.

This is a major boost to the heavy equipment machinery trading as the demand for the equipment is  at sky-high

Key Business Activities – Heavy Equipment Trading

Under the Heavy Equipment Trading, there is a various specific business activity that investors can venture into depending on their requirements.

• Heavy-duty refrigeration units for cold storages and warehouses
• Air Purifiers, Filters & AC Duct Cleaning Equipment
• Metal Cutting and Forming
• Food & Beverages Processing, Cleaning, and Sorting
• Tobacco Processing
• Textile Apparels & Leather Productions
• Lifts & Escalators Installation
• Automobile Washing Equipment
• Electric Generators, Switchgears,
• Water Pumping, Sewage Treatment, Boilers.
• and more

Setting up a Heavy Equipment Trading Company in UAE

In UAE there are few company structures available to set up a Heavy Equipment Trading Company. The major ones are the below

1. Limited Liability Company

2. Sole Establishments

3. Civil Company

4. Trading License from Free Zone 

Limited Liability Company

As Heavy Equipment & Machinery Trading is a highly capital-intensive business sector, registering a limited liability company in UAE is beneficial to the investor to separate the company liabilities from personal wealth.

For a heavy equipment machinery Trading license in Dubai, the cost is approx. AED 25,000. The steps in setting up a Heavy equipment trading company are similar to any other company.

Read more: Finding a Local Sponsor for an LLC Company Setup

Sole Establishment and Civil Company

In the mainland of UAE, there are two more options to set up a Heavy Machinery Trading Company. In the case of Sole Establishment and Civil Work Company, there is no requirement of a UAE National Sponsor for setting up the company.

However, a local Service Agent is required to be appointed as the contact person for the company and the contract has to be submitted to the authorities to get the business license issued.

Heavy Equipment Trading License from Free Zone

Obtaining the Trading License from Free Zone for a Heavy Equipment License is a favorable option to keep the business setup cost low.

Various Free Zones in UAE offer the specialized Business License Types and the perfect infrastructure support for heavy equipment trading at a cost-effective fee in the region.

Investors can choose the Free Zone based on their exact business requirements, office space, and budget.

Our expert Business Consultants will assist you in choosing the right Free Zone for setting up your heavy Equipment Trading business in the most comfortable way in UAE.

Connect with our expert team to know more!

Contact: Aurion Business Consultants

The post How to Get a Heavy Equipment Trading License in UAE? 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.