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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The business sectors in UAE such as real estate, commercial building construction, hotel and hospitality, sports complexes, educational institutes, to the hospitals require Facilities Management Services on a regular basis.

Facilities Management helps organizations to effectively manage, monitor, and utilize the resources to achieve higher business results. There is a definite business opportunity for Facilities Management in the UAE.

How to Register a Facilities Management Company in UAE?

Facilities Management falls under the professional license category and hence it can be registered under the professional services. The entrepreneur has two options to register a facilities management company in UAE. 

It can be registered as a Free Zone company from any of the Free Trade Zones. Also, as a Civil Work company from the Dubai Economy or respective mainland authorities of each Emirate.

Registering the Facilities Management Company in Mainland of UAE

To register the Facilities Management activity in the mainland, the investors can register it as a Civil Work Company or a services company. As per the new UAE government law, there is no requirement for a Local Service Agent for the Mainland Facilities Management company. 

The mainland of UAE is a perfect place for registering a Facilities Management (FM) Company. The FM Company will be able to easily expand its business operations by opening branch offices, taking warehouse spaces, etc.

The 100% foreign ownership in the mainland, makes it easy for global business investors to set up their base in the UAE Mainland. Furthermore, the FM Company can take part in the Real Estate Regulatory Authority (RERA) grading system.

Based on the specialization and expertise, the company will be graded by RERA. It will help FM Companies to grab exclusive contracts available from leading developers for their annual maintenance and more.

Registering the Company in Free Zone

Free Zones are the perfect choice for getting a Facilities Management Company License in UAE. The Company can be set up as a Free Zone Establishment or Free Zone Company depending on the number of shareholders.

The Free Zones offer a top-class infrastructure for investors to easily set up their companies. The Free Zone facilities company can deliver their services such as consulting, feasibility study, project management, etc., anywhere in UAE, GCC, and the rest of the world.

The plug-and-play office spaces, meeting rooms, and robust business ecosystem that the free zone offers are ideal for the Facilities Management company. These feacilities will help to easily operate and meet their business requirements 

Which are the Free Zones to Choose for Setting up a Facilities Management Company?

Following are a few of the top-rated Free Trade Zones in UAE that offer Facilities Management License as a business activity. These Free Zones are the ideal choice for investors to setup their Facilities Management Company due to the various business benefits the Free Zones offer.

IFZA

IFZA offers a host of business licenses and business activities related to facility management, building management, project management, etc. Investors can choose from the list of business activities and business license types depending on the nature of the business. Facilities management companies can be registered under services license and the business activities can be chosen according to the specific business requirement.

IFZA has got sophisticated office types ranging from Flexi-desk, to shared workstations, to fully furnished offices. The business infrastructure IFZA offers is perfect for a Facilities Company to quickly start the business operations without any hassle.

Check out the latest Dubai Silicon Oasis – IFZA office packages here.

Dubai CommerCity

Dubai Commercity is a perfect Free Zone for a services company. It is one of the newest free zones in Dubai and it offers attractive company setup packages for every type of company. The Free Zone has a wide range of office facilities, a quick company setup process, a reputed Dubai Address, bank account opening assistance, and many more business support services.

The proximity to Dubai `international Airport makes it an ideal choice for investors to set up their base. Investors can get their global clients to their office easily and conduct meetings, host conferences, and sessions. Clients can fly in and out within the same day without any hassles.

Dubai Airport Free Zone

Dubai Airport Free Zone is one of the world’s most prestigious Free Zones in the world. It houses some of the world’s top-rated companies. The Free Zone has the right facilities for any type of company to scale up their business establishment.

There are co-working spaces, fully customized offices, and Warehouse + office space available in the Free Zone. Depending on the nature of the business, budget, and staff requirements, the investor can choose their desired business license and office type.

Check out the latest DAFZA office packages here.

Sharjah Airport International Free Zone

Sharjah Airport International Free Zone is one of the most dynamic free trade zones in the Emirates of Sharjah. It is a well-established and growing free zone with more than 4000 companies registered and operating within the Free Zone.

The proximity to the Sharjah International Airport makes SAIF Zone one of the most preferred free zone in the UAE. It offers a range of cost-effective business license packages. The SAIF Zone Company Setup Package starts from AED 10,800 for a 3 Visa quota Shared office space.

The quick company formation, availability of office spaces of various sizes, warehouse facilities, in-house customs, and attractive company setup offers; make the Free Zone a perfect choice for Facility management companies.

Hence, in a nutshell, UAE is a perfect business location for any type of company. Investors can avail of top-class business support services, and infrastructure to easily set up their base. Then scale up their business globally.

Connect with our expert business team to know more about opening a Facilities Management Company in UAE.

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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

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UAE has signed a Double Taxation Agreement with more than 137 countries around the world.

Double Taxation Avoidance Agreement – Highlights

Being part of the international tax framework and adhering to the OECD (Organisation for Economic Co-operation and Development) regulations, the DTAA treaty provides protection and benefits for companies registered in UAE.

Double Taxation Avoidance Agreement allocates taxing right and ensure individuals and businesses are only taxed once.  The agreements also provide relief from foreign taxation and certain foreign tax compliances of other countries.

The Double Taxation treaties allow for the exchange of information and cooperation between countries to address tax evasion and provide a globalized framework to resolve any tax-related issues between countries.

What impact do UAE expatriates and Company Have from DTAA?

For expatriates’ double taxation agreement come into play when they have a second residence outside of UAE. Also, the individual is living in UAE for more than 183 days (need not be a continuous stay). Companies that consist of international shareholding, it is not subjected to a tax of jurisdiction of the shareholders.

Companies with more than 1 year of establishment in UAE can avail of the benefits of Double Taxation by applying for the Tax Residence Certificate.

Things to Lookout – Tax Reforms in the UAE

UAE has a strategic partnership with the OECD and part of the inclusive framework on ‘Base Erosion and Profit Shifting (BEPS). It refers to strategies used by large global companies as part of tax avoidance strategies.

Companies shift profits from higher-tax jurisdictions to a lower-tax jurisdiction. Thereby, eroding the tax base of higher -tax jurisdiction.

UAE has created regulations and treaties based on the consensus of international tax rules to protect tax bases while offering increased benefits for residents of UAE.

Multilateral Agreements of UAE with Other Nations

UAE has signed a Multilateral Instrument that makes it easier to amend the existing treaties accordingly to comply with the international framework of double taxation avoidance and Base Profit Erosion and Profit Shifting (BEPS) regulations.

To be further transparent and compliant with international taxation standards, UAE introduced the Economic Substance regulations.

Companies in certain relevant sectors residing in UAE and exchanging business transactions with foreign connected entities are subjected to an Economic Substance Regulation Test and filing of sufficient information about the business operations in UAE to the authorities.

Double Taxation Agreement & UAE’s Commitment

Double Taxation Agreement aims to exempt or reduce tax on investment and profits from direct and indirect taxes. Also helps in profit repatriation to other currencies without any tax regulations.

UAE has signed almost 137 DTAs with its trade partners to avoid double taxation for the inevstors who conduct business in UAE legally. DTA is aims at free trade and eliminate the chances of double taxation on the tax payer having company operations in UAE.

DTA supports free flow of trade between economies and cross-borders. It helps UAE to diversify the income source and increase investment inflow. Also, exchaning tax information helps in acheiving transparency and protection of national economy.

By complying to the DTA, the stature of UAE as a global financial and trade hub is strong. Also UAE plays an active role in supporting Double Taxation. It helps in strengthening international cooperation and comply with international regulations.

UAE Ultimate Beneficial Ownership Regulations

A legislative change aimed to improve corporate transparency is issued by the UAE Cabinet. It is a framework for reporting and registering beneficial interests, ultimate beneficial owners, and shadow directors.

All UAE Companies (Onshore and Offshore – excluding those registered in the DIFC or ADGM) must comply with their reporting obligations under the UBO regulations.

Companies must prepare the following details to comply with the UBO regulations.

1. A UBO Register

UBO is a natural person who ultimately owns or controls or has the right to vote with a minimum of 25% shareholding of the company.

In the absence of a natural person satisfying the condition, any natural person who exercises control over the company can be the UBO.

2. Register of Nominee Directors/Managers

Details of directors/managers acting under the instructions of a third party.

3. Shareholder/Partner Register

Include the number of ownership interests held by each partner/shareholder and their voting rights, date of acquisition of interests.

Any change in the information provided must be notified to the relevant authority within 15 days of such change. All registers must always be completed and up to date to avoid administrative fines.

MLI Synthesized Text of the India-UAE DTAA

The Multilateral Convention to Implement Tax Treaty Related Measures to prevent Base Erosion and Profit Shifting (MLI) is an outcome of the BEPS action plan of the IECD Inclusive framework.

BEPS framework offers a solution for governments to plug loopholes in international tax treaties by introducing favorable bilateral tax treaties worldwide.

What is Synthesized Text?

“Synthesized Text” is a document consisting of the consolidated text of the provisions of a Double Taxation Avoidance Agreement (DTAA) and the Multilateral Instrument (MLI).

The Synthesised Text is not a source of law or cannot be used for legal purposes, it is a few procedural amendments to be followed to ensure double taxation is avoided for residents living outside their home country.

Amendments in the Synthesised Text for India -UAE DTAA

The Synthesised text for the application of the India – UAE DTAA is edited on a common agreement by UAE and India to protect the interests of both parties. The amendments in the synthesized text have been developed on the lines of the OECD Guidance and DTAA regulations. 

The amended text will cover the regulations of tax savings strategies and the right way of evading double taxation in the home country by a foreign investor.

To know more about Double Taxation and apply for a Tax Residence Certificate in UAE or How Tax Residency in UAE can help Investors from Europe, connect with our expert team right away!

Contact: Aurion Business Consultants

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