Let us guide you through it.

Trade license (What & Why) ?

A legal authorization is necessary to run any company. And each country has its own laws regarding trading and its own jurisdiction to further avoid any issues.

Hence, a trade license in the UAE is a must to start any commercial activity for an individual or entity. With this the company ensures to hold complete accountability to all its actions as per the terms of the trade licence and gives them a legitimate identity. 

Who issues it?

The Department of Economic Development (DED) and Free Trade Zones in the UAE are the licensing authorities that issue the trade license.

Trade License Validity

Businesses hold a 1 year licence and keep renewing it.  In Free Zones, there are Multi-Year Trade Licenses available. And yes, any delays in renewing the trade license, there will be notification from the trade license authority to complete the process on time.

Anyhow, there is a 30 days grace period for renewing the Trade License. Don’t worry we are here to assist you for the renewal too!

Time taken to receive the trade license

It basically depends upon your business plan and the clarity of your documentation. For an estimate it takes around three days to four weeks to get your Trade License.

Types of Trade Licenses in Dubai.

➔    Professional License

This allows you to get a license for professional services such as law firms, consultancy, finance and accounting.

➔    Commercial License

Companies can engage in buying or selling goods, for example, different forms of trading, it can be either retail or wholesale.

➔    Industrial License

It involves providing licenses to companies that do industrial activities, like producing, fabricating and segregation of products.

➔    General Trading License

It is slightly different from the normal trading licenses as a General trading license allows the company in a vast trade activity and gives the privilege to trade virtually any goods. But it does come with a slight limitation as it does not guarantee the right to trade goods like cars, alcohol, medical products, and weaponry.

➔    E-Commerce License

This license is very important for companies who sell goods or provide online services via the internet.

• Hence, each license is only limited to ten business activities except a General Trading license that allows the businesses to trade in different varieties of commercial activities.

Trade Licenses in UAE Jurisdiction

1. Mainland Trade License

The Mainland Trade License is issued by the Department of Economic Development (DED). This license entitles a company or an individual to start their business in the local markets of any Emirate in the UAE. The license also guarantees your company a smooth flow of goods in and out of UAE by setting up large warehouses in the industrial areas. It also ensures the Expatriate investors to have a 100% share of the Mainland company. If you are thinking of expanding your venture in Dubai then do grab this opportunity.

2. Free Zone Trade License

Freezone Trade License is only provided to begin business activities in specific demographic locations that perform preset business activities in UAE. So if you’re wishing to start up your business in these specific locations then you require a UAE Freezone Trade License. And you have to keep in mind these licenses are limited to specific kinds of businesses.

3. Offshore Trade License

Offshore Trade License are issued from approved license authorities like JAFZA, RAKEZ, and AFZA. When Corporate firms want to extend their business, outside their registered jurisdiction for operational needs they could apply for an Offshore Trade License.

In a country like UAE, if you are planning to expand then you could enjoy the benefits of saving up tax, investing in the vast real estate field and also  enjoy the ownership rights of an Offshore company. Benefits come with regulations, thus your company will be considered as a non-resident company without office space in the UAE.

How to apply for a Trade License

• Pick A Business Activity: The nature of your business allows you to opt for the right trade license.

• Select Jurisdiction: Select the demographic location or an Emirate which you are willing to set up a firm.

• Documentation: Passport copies, Business plans, Visa copy of the investor and manager, Tenancy Agreement, Three Name choices for the company name reservation, Educational certificates ( some cases).

• Fee Amount: Amount of the fee depends upon the Jurisdiction and the type of license you are applying for.

• MOA or LSA: Prepare a Memorandum of Association or MOA or LSA with the local sponsor if it’s a  professional type of license

• Approval and Issuance: On the approval of your submitted application ,you will be given the applied Trade license. It will permit you to legally begin your business operations.

Payment Estimate For Trade License

To provide an estimate excluding the visa expenditure and other expenses of your business activity, a Trade license in Dubai costs between AED 12,750 to AED 30,000. Additionally, to be specific the cost of a Trade License in Dubai mainland is around AED 18, 000 to AED 27, 000. Furthermore, the cost of the Trade license in Dubai Freezone ranges from AED 5,750 to AED 30,000. Also, to get a more accurate cost of your Trade License, please feel free to contact our team.

Benefits of Acquiring A Trade License

• Tax Benefits: Dubai is all about creating more revenue from your business, there isn’t personal or corporate taxes. You can file your tax returns separately after acquiring your Trade license; it ensures you the maximum benefit.

• Business Credibility: Acquiring a Trade license increases your chances of getting more customers, stakeholder and also investors as the license escalates the credibility of your business.

• Access to Government support: The UAE government promotes entrepreneurs to invest as they provide a hassle free and supportive business environment, which is very evident as you see  brisk growth of the UAE economy.

How will AURION pitch in with getting you a Trade License ?

Our consultants will give you a thorough briefing into the terms and regulation regarding Trade licenses in the area in which you would like to begin your dream project. We are here to assist you in whichever Jurisdiction you may prefer.

Our team will be assisting you with each and every stage of your documentation process, may it be for a new license or renewal. We are here for you.

AURION will try its best to provide you the Trade license by  approaching a cost effective process and always give you and your company the needed follow up and support.

Feel free to connect with our team, always here for your service.

The post What is a Trading License in Dubai? appeared first on AURION.

Several large and small companies have a wide range of products and services that are dependent on third-party delivery services for its distribution. There are many factors such as technological advancement, rise in disposable income, Internet penetration, more acceptance of online shopping, etc., are driving the positive demand for delivery services in Dubai, UAE.

What is a Delivery Service Company License in Dubai?

A delivery services license in Dubai is the legal document that will enable an entrepreneur to legally operate a delivery service company in Dubai. There are various cost-effective options to choose from for obtaining a delivery service license in Dubai.

Also, various business owners can obtain a Delivery Service License in Dubai. They can go with the respective Department of Economic Development (DED) of the Emirates. Alternatively, they can go ahead with the Free Trade Zones in UAE.

The Delivery Services License in Dubai will help the investor to carry out home delivery services and take corporate orders for document collection, file storage, gift delivery, and more.

What is the Scope of a Delivery Service Company in Dubai?

A Delivery Services Company in Dubai mainly handles a few operations relating to the goods delivery. They can work with partner corporates to deliver the goods and services of the parent company.

Similarly, by obtaining a delivery services license from Dubai, they can work independently for end-customers to deliver flowers, gifts, food items, online shopping products, personal documents, and more.

The scope of operations for a delivery services company in Dubai is huge. They can effectively expand to newer areas of delivery services by leveraging technology and manpower that is available in the region.

Things to consider for a Delivery Service Company in Dubai?

There are a few aspects to consider for a delivery services company before launching their operations in Dubai. The success of a delivery service company largely depends on manpower, technology and customer service.

These three are of paramount importance for a delivery services company in any part of the world to achieve their desired goals. Dubai is a populated city with numerous business and individual requirements, and the operational scalability of a delivery service company is enormous.

The delivery services license in Dubai opens up enormous business opportunities for the investor. They must invest in developing a robust mobile application for the customers and delivery agents to communicate effectively.

Also, set up top-class customer service support for attending to all the customer queries, and train the manpower and the delivery agents with all the latest techniques. Compliant handling remains a very important aspect of a delivery services company.

What are the procedures to get a Delivery License in Dubai?

To obtain a Delivery Services License in Dubai there are certain steps to follow. The process is very straightforward and similar to any other common business license in Dubai. Also, there is no additional approval required for issuing the Delivery Services License in Dubai.

However, to manage the delivery fleet and branding, the investor must obtain approval from the Dubai Municipality. Also, RTA permits for driving Delivery Bikes and Vans to carry goods around the UAE.

The steps to obtain a Delivery Services License in Dubai are the following

• Choose the right business jurisdiction and select the right business activity
• Get the company name approval and collect the documents of the business owner
• Submit the passport copy, photograph of the investor and other documents to the licensing authority
• Prepare the tenancy contract for the office space or warehouse for the delivery service office
• Wait for the document review by the licensing authority, make the fee payment and obtain the Delivery Services License from the authorities.
• Proceed to take a UAE residence Visa and Bank Account for the Delivery Services Company in Dubai

How to the Delivery Services Company Operate in Dubai?

Along with the setting up of the Delivery Services Company. The Fleet Management and technology infrastructure are important aspects of consideration. Above all, it is the delivery agents. Also, a robust payment system is essential for facilitating the transactions.

So, for fleet management, the business must acquire the vehicles as a lease or buy from a dealer. Motorbikes, Delivery Van, cars, etc. For the branding, they must get approval from the Dubai Municipality and a vehicle permit from the RTA, Dubai.

Each Delivery van, Bike, and Car must be fitted with the Smartphone and must have the Delivery Application. It will help the Delivery Service Agents to connect with the customer, activate their location search, facilitate online payments, collect returns, and more.

Similarly, Customer Service is another key component in a Service Delivery Company. They will be receiving numerous calls for order tracking, requesting refunds, product cancellations, and many other concerns.

So, a 24/7 fully operational customer support centre is required to tackle customer complaints instantly and address them effectively. It will add to the trust and credibility of the online service delivery platform.

Who are the Customers of a Delivery Service Company?

The Delivery Service Company will have numerous business-to-business companies that can utilize the services. Several large companies in Dubai require a robust delivery service to ship their products and services to the end customers more efficiently.

The enormous scalability for a Delivery Services Company. With its fleet of vehicles, delivery agents and a fully operational call centre, the scope of its operation is huge. It is an interesting and profitable business model that can be easily scaled up to new geographies.

Large and small hotels, online shopping websites, flower shops, Corporations, banks, Pharmacy, and more can utilize the services of the Delivery Company in Dubai.

How Aurion will help?

AURION will guide the business investors in setting up their Delivery Services Company without any hassle. The team will work with you to obtain the Delivery Services License in Dubai in the most cost-effective and hassle-free way.

Starting from choosing the trade name for your company to establishing an office space, and processing the investor’s and employees visas, the team will handhold you in all stages of operations.

Connect with our expert team of Business Consultants to learn more about obtaining a Delivery Services Business License in Dubai right away!

The post Delivery Service Company License in Dubai [ 2024 Guide] appeared first on AURION.

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

The post Freelance License in UAE for Remote Work appeared first on AURION.

The long term residence visa enables talented individuals to contribute more towards society and thereby support the economic growth in the region.

New Amendments to Golden Visa

Golden Visa is targeted towards the foreign investors and expatriate population living in UAE currently. It enables ex-pats to live, work and study in the country without the need of a national sponsor.

The golden visa eligibility is extended towards managers, CEOs, specialists in science, engineering, health, education, business management, and technology professionals.

The visa application process is simplified for highly skilled and specialized residents, investors, entrepreneurs, scientists, pioneers, leading students, and graduates. These visas are valid for a period of 5 or 10 years and are renewed automatically.

New UAE Residence Visa Reforms

Following are the Residence Reforms added along with Golden Visa amendments in the recent UAE Cabinet decision by the Government.

• Business trip permits extension from 3 to 6 months
• Parents Sponsorship under the visa of direct family members
• One-year residency extension for humanitarian cases
• Extensions of children’s age limit on parent’s residency from 18 to 25 years
• Extension of grace period to exit the country after a job loss or retirement from 30 to 90-180days

Green Visa and Freelance Visa

UAE has also announced a Green Visa that expands the self-residence status to investors, entrepreneurs, highly skilled individuals, top students, and graduates.

Also, there is a freelancer visa for self-employed workers based in UAE and overseas specialized fields such as artificial intelligence, blockchain, and digital currencies, etc.

All the latest residence visa amendments are aimed at retaining the best talents in UAE and inviting new ex-pats to the country. UAE is transforming itself into a competitive business and family destination to invite foreign investors to settle in the region.

UAE through the latest initiatives is creating a sense of stability and security for the residence, strengthen the labor market, facilitate sector growth and skill development of individuals present here in the country.

Long-term Residence Visas in the UAE

The UAE Government launched the Long Term Residence Visa for residents and foreign investors to extend their living in the UAE and contribute actively to the growing economy.

The Long-term Residence Visas will be issued for 5 or 10 years and will be renewed automatically.

Eligibility for a 10-year Visa without a Sponsor

For a 10-year Residence Visa in the UAE, there are the following categories.

1. Investors with Public Investments of at least AED 10 million

The investment can be of any form below:

• A deposit of at least AED 10 million in an investment fund inside the country
• Company Formation in the UAE with a capital of not less than AED 10 million.
• Partnering in an existing or a new company with a share value of not less than AED 10 million

The investor must have a total investment of not less than AED 10 million in the above areas. Also, on condition of having more than 60% of the total investment in sectors other than real estate.

Criteria for the Visa Application Processing

• The amount invested must not be in the form of any loans
• The investment should be retained for at least 3 years.
• There should be financial solvency up to AED 10 million

Visa can be extended to include business partners, provided each partner contributes to AED 10 million. The Long term visa can also cover spouse, children and one executive director and one advisor of the company.

To initiate the process of long-term visa and company formation in the UAE, the investors can apply for a multiple-entry permit for a 6-month tenure.

2. Individuals with Specialized Talents

Specialized talents and researchers in the field of science and knowledge are eligible for long-term visas. Professionals such as doctors, specialists, scientists, inventors, as well as creative individuals in art and culture can apply for the visa.

All the professionals must be having a specialized field of priority in the UAE.

Criteria for Processing the Visa Application

• A scientist must be accredited by Emirates Scientists Council or holders of the Mohammed Bin Rashid Medal for Scientific Excellence.
• Creative individuals must have accreditation by the Ministry of Culture and Knowledge Development
• For inventors, there must be holders of patents approved by the Ministry of Economy and the patent must add value to the UAE’s economy.
• Inventors & Researchers must have their patents or scientific research published in a world-class journal
• Executives must be highly qualified in academics and must be part of an internationally recognized company.

Doctors and specialists must be fulfilling at least 2 of the following conditions

• Ph.D. degree from one of the top 500 universities in the world
• An award or certificates of appreciation in the field of the applicant’s work
• Contribution to major scientific research in their domain
• Published articles or scientific books in renowned publications
• Membership in an organization related to their domain
• 10 years of professional experience in the domain with a Ph.D. degree. The domain must be in the areas of priority to the UAE.

Eligibility for a Golden Visa without requiring a Sponsor

1. Investing in a Property in the UAE – 10 Year Golden Visa

New Update: As per the latest update, for the Golden Visa (10 Year Residence Visa), there is no requirement of AED 1 Million Down payment for the property that is valued at AED 2 Million.

So, investors who have started the process of Property Purchase through Loan, Mortgage, Easy Monthly Installment, are now eligible for Golden Visa. Connect with our expert team to know more.

2. Entrepreneurs Five Year Visa

Entrepreneurs having an existing project with a minimum capital of AED 500,000 or those who have the approval of an accredited business incubator in the country.

The entrepreneur is eligible for a multiple entry visa for 6 months, renewable for another 6 months. They have to do the processing of long-term visas within the tenure. The entrepreneur can sponsor dependents including spouses, children, a partner, and 3 executives.

3. Outstanding Students

Students with a minimum grade of 95 percent in public and private secondary schools. University students within and outside the country having a distinction or a GPA of at least 3.75 upon graduation. The students are eligible to sponsor their families under the visa.

How to Apply for Long Term Residence Visas in the UAE

For the foreign investors, students, and academicians to start the long-term residence visa process, they can visit UAE on a Multiple-Entry Visit Visa valid up to 6 months (extendable to 6 months more).

Multiple Entry Visa – 6 Months for the Investors (New Visa)

Visa Application Steps Overview

• Submission of the application through the system (E-channel)
• Receive the application by the employee
• Checking the request. In case of errors, will be rejected
• Receive the Gold Visa Permit

Documents Required

• Dependent passport and color photo
• Bank letter as proof of Deposit
• 3-year bank deposit of AED 10 Million
• Attested Company Establishment Contract (Share of AED 10 Million proof or 6 Million if there is another real-estate investment of worth AED 6 Million)
• Certified Financial Auditing Company Report (Proof for the investments are not loaned or mortgaged)
• Real estate registration department (Proof that the real estate is not loaned or mortgaged)

For entrepreneurs, students and Special talents the process is similar to the investors, there is no requirement to furnish any investment or bank deposit.

They have to submit identity documents (passport copy, photo) and proof of long-term residency eligibility (employment contract, academic qualification, etc.)  

Long Term Residence Visa is an initiative launched by the Government of UAE to strengthen the economy and drive foreign investment and fresh talent across industry verticals.

The launch of Long Term Residence Visas in the UAE is in line with UAE’s long-term plans of diversification of the economy, technology advancements, entrepreneurship, and build a better tomorrow.

To know more about the Long Term Residence Visa, connect with the experts Business Consultants right away!

Contact: Aurion Business Consultants

The post Golden Card Visas in UAE – How to Apply for Long Term Residence Visa in UAE? appeared first on AURION.

The Free Trade Zones in Dubai offer a perfect launchpad for start-ups to succeed. There are various competitive company setup packages tailored for entrepreneurs with diverse business requirements.

There are few start-up incubators in the Free Zones that will fund the business ideas and pump in capital for carrying the start-up forward until it reaches sustainability.

How to Register a Start-Up in Dubai?

Dubai has emerged as a Start-Up capital of the Middle East with a robust start-up ecosystem. It comprises infrastructure support, company laws, technology support, financial aid, and more. The Free Zones in Dubai plays a vital role in providing the required base for start-ups to thrive.

To register a Start-Up in Dubai is a straightforward process by applying for a suitable company setup package from any of the Free Zones in Dubai. The investor has to go through a defined process to obtain the business license and other clearances to kick off the business.

For an entrepreneur who is new to Dubai, it is advisable to get the assistance of a business consultant to pick the right option at the lowest cost and get all the paper works done the right way.

Steps to Register a Start-Up Company in Dubai?

To register a Start-Up company in Dubai one must follow certain procedures. Broadly the steps can be listed as:

1. Choose the right Free Trade Zone and get the Application form
2. Reserve a trading name for the company. It will be used in all future communication and branding activities
3. Choose the right business activity and company structure (Based on the number of Shareholders – FZE/FZC/ FZ-LLC) for the start-up
4. Select the right office space based on the business requirements. Ranging from co-working spaces to Flexi-Desks, and fully-furnished offices, the Free Zones in Dubai offers a wide choice.
5. Based on the business license the tenancy contract will be signed with the respective Free Zone and annual office rent will be agreed upon along with the business license cost.
6. Submit the required documents (Shareholder’s passport copy and photograph) and the fee as per the company setup package and the chosen office space to obtain the business license.
7. Certain business activities would require special permits from the Authorities. For example, Healthcare/Pharma companies require approval from Dubai Health Authority to conduct business in Dubai.
8. Apply for a UAE Residence Visa and open a Corporate Bank Account using the newly formed company documents.

Top Free Zones in Dubai that offer start-up packages in UAE

1. Dubai Airport Free Zone, DAFZA

Dubai Airport Free Zone is a prestigious Free Trade Zone in Dubai offering an exclusive company setup package for investors to easily scale up their business establishment. Entrepreneurs have a wide choice starting from a 6 Sq.m Flexi-Desk to a 50 sq.m office.

DAFZA offers umpteen business benefits for the start-ups and easily earns credibility among the business network in UAE. The Free Zone hosts a lot of business networking events to empower the companies based in the Free Zone with the latest market trends.

2. Dubai Technology and Entrepreneur Center, DTEC

The Dubai Technology and Entrepreneur Center is a start-up hub for newbies in the field of technology. The Digital Park offers perfect infrastructure support to start-ups to test and launch their products and services.

The Free Zone also offers a business incubator service for funding and mentoring start-ups and make them self-sufficient. DTEC offers attractive company setup packages for investors to set up their base in Dubai in the most hassle-free and cost-effective way.

3. Dubai Multi-Commodities Center, DMCC

DMCC is a popular business hub of the UAE with a large business network and ecosystem. It is spread over a large area with a long list of large and small companies operating there daily.

It is a start-up hub and a technology center. A lot of entrepreneurs have set up their base in DMCC and testing their products in the UAE market. DMCC offers cost-effective company setup packages for the investors to set up a company in the region and expand.

Ranging from Gold Trading to Crypto License, DMCC offers a host of business activities for investors. There is a huge range of office spaces to choose from starting from shared desks to fully customized office areas. 

4. Dubai Silicon Oasis – IFZA Dubai

Dubai Silicon Oasis – IFZA Dubai is a relatively new free zone with ample business infrastructure for start-ups to thrive. It offers one of the most competitive company formations cost in Dubai. The company setup cost in IFZA starts from AED 13,500 for one visa quota business license.

Investors can choose from Flexi-Desk, Shared Office, or Executive Offices for their new company. IFZA has a dedicated in-house immigration channel for the quicker company formation and visa stamping process.

IFZA offers one of the lowest-cost company setup packages in UAE to investors. The 100% foreign ownership, low-cost company setup, low tax rates, global trade network, etc., make IFZA the perfect choice among investors.

5. Mainland Business License

The instant license from the mainland helps to keep the company setup cost at an all-time low. It helps entrepreneurs to start their business venture with very less overhead cost.

The instant license from the Department of Economic Development is a one-year virtual license without any office space requirements for the first year. However, from the second year onwards for the renewal, the investor would require to take an office space to continue the chose business activity.

To set up a business in the mainland the investor can also opt for the most popular company structure the Limited Liability Company (LLC). Now with 100% foreign ownership in the mainland, this option seems attractive for most of the ex-pat investors in UAE.

To know more about opening a start-up in UAE, talk to our expert team right away!

Contact Us: Aurion Business Consultants

The post Start-ups in Dubai – How to register a Start-up Company in Dubai? appeared first on AURION.

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

Company Incorporation and Role of Business Consultants in UAE

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

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

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

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

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

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

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

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

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

1. Result-driven Expert Advice

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

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

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

2. Efficient Handling of Legal Matters

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

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

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

3. Better Understanding of Business Jurisdictions

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

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

1. Company Formation Application

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

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

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

2. Choosing the Business Type

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

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

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

3. Choosing the Office Type

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

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

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

4. Obtaining Clearance and Approvals

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

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

5. Obtaining the Business License

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

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

6. Assessment of Costs for Business Setup

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

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

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

7. Compliance Process for Business Operation

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

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

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

8. Business Support Services

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

9. Company Closing

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

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

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

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

Contact Us: Aurion Business Consultants

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

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.

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!

The post What is the Difference between Mainland, Free zone, and Offshore Companies in UAE? appeared first on AURION.

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

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

What is a Cryptocurrency License?

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

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

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

Operation of Crypto exchanges in UAE

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

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

Taxation of Cryptocurrency Trading Companies

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

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

Procedures to Follow for Obtaining a Crypto Currency License in Dubai

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

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

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

Crypto License Governing Bodies in UAE

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

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

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

Crypto License Guidelines from Abu Dhabi Global Market Free Zone

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

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

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

DMCC Launches New Crypto Centre in Dubai

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

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

DMCC Crypto Center – The Crypto and Blockchain Hub of UAE

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

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

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

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

Contact Us: Aurion Business Consultants

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

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

What are the Advantages of a Free Zone Company?

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

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

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

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

Free Zone Company – Key Highlights

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

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

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

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

Top Four Free Zones to explore in UAE

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

What is an Offshore Company in UAE?

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

Offshore Company in UAE – Key Highlights

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

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

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

Offshore Company Formation in UAE – Key Business Benefits

1. Tax Advantage

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

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

2. Business Anonymity

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

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

3. Ease of Formation and Low Maintenance Cost

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

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

4. Access to Bank Accounts

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

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

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

Contact Us: Aurion Business Consultants

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