Why Choose UAE for setting up a Company?

Investors choose UAE for establishing their business due to:

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

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

Factors to Consider While Choosing the Right Emirate for Company Formation

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

1. Cost of Setting Up a Company

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

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

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

Low-Cost Company Formation in Dubai

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

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

Premium Company Setup in Dubai

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

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

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

2. Location

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

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

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

3. Company Formation Package

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

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

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

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

4. Business Infrastructure

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

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

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

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

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

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

Driven by the growth in the eCommerce business sector, warehousing is a lucrative business opportunity that large and small distributors, logistic service providers, traders can take advantage of.

Ecommerce Sector growth and Requirement of Warehouse

The increasing popularity of e-commerce and global trading requirements are adding more warehousing space to the UAE market.

The high internet penetration, high purchasing power per capita, and large consumer spending are creating a favorable market for eCommerce companies.

To power the eCommerce business there is a growing requirement for the right logistics support, distribution network, and warehouse for managing the deliveries effectively.

Warehouse License Categories in Dubai

In UAE mainly warehouse license is available from two major business jurisdictions – The Mainland of UAE and the Free Zones. The rates for the warehouse have been highly competitive in the UAE with a wide range of options available.

Cost of Warehouse License in UAE

Warehouses License in UAE are an integral part of the Free Zones and Mainland business ecosystem. Depending on the specifications, location, and type, the price varies. The cost of a warehouse license in Hamriyah Free Zone starts at AED 85,500 for a 307 Sq.m Warehouse.

The warehouses are an essential business requirement for all businesses that require storage space or a light manufacturing and assembling unit. The cost of the Warehouse depends on various factors such as size, power consumption, customization for cold storage, manufacturing unit, assembling, etc.

The Warehouse License cost of a 125 Sq.m warehouse in the Sharjah Airport Free Zone is AED 48,000 / year ( Special Discount rate). SAIF Zone has a wide variety of Warehouse units for lease ranging from 100 sq.m, 125 sq.m, 400 sq,m, and more customized offers available for the investors.

The warehouse rental cost is a recurring yearly payment to continue the operations to the next year. Similarly, the Warehouse License and Trade License of the company must be renewed on a yearly basis.

Choosing the Right Warehouse and Business Jurisdiction

Most of the Free Zones have warehouse facilities for their investors at the Free Zone premises. It provides the right storage infrastructure for trading companies and light manufacturing units.

Also, there are warehouses available in the Mainland of UAE operated by private businesses that can be rented as per requirement.

UAE as a whole provides top-class warehouse, storage, transport, and logistics support services to the businesses operating in the region to easily conduct daily trade operations locally and internationally.

Warehouse Choices in Free Zones and Mainland of UAE

An investor can apply for a general trading license from any of the Free Zones in UAE or the mainland of UAE by opening a Limited Liability Company.

The Free Zones offer Customized Warehouses for investors at affordable rates and enormous business benefits. Similarly, for an LLC Company, there are private warehouses around the UAE where the goods can be stored and managed accordingly.

All the goods imported to the UAE must follow the Customs guidelines and clear the required checks to be legally sold or distributed in the UAE.

Also, for the goods stored in the Free Zones, there are in-house Customs checkpoints in most of the Gated Free Zones in UAE. Any exchange of goods to and from the Free Zone must pass through the Customs.

Free Zones with Warehousing Facility

Free Zones in UAE with warehousing facilities offer the perfect infrastructure for trading companies to store the goods, facilitate imports/export, and distribute in the UAE and GCC region.

Top Free Zones with Custom Build Warehouse Facilities

1. Dubai Airport Free Zone

2. Sharjah Airport International Free Zone

3. Hamriyah Free Zone

4. Dubai South

5. Jebel Ali Free Zone

Benefits of Setting Up an Export House in UAE

Investors can get into long term lease contracts and use the space for storage, distribution, packaging, and assembling. Free Zones in UAE offer customized warehouse facilities that can be used as light manufacturing units for the manufacturing of certain permissible items.

To get more details about warehouses license in UAE and light manufacturing units offered by various Free Zones in the UAE, connect with our team right away!

The key benefits of setting up an export house or a logistics business in UAE are the following:

1. Enjoy the Tax-Free Environment in UAE

UAE has a Zero Taxation policy for business, the only tax in UAE is a 5% Value-Added-Tax. In the Free Zones, there is a benefit of Zero percent import duty on imports to Free Zones.

However, the goods going out of the Free Zone to the mainland will be subjected to the normal VAT.

Also, the foreign investors who are setting up an export or trading company in the UAE can benefit from the Double Taxation Avoidance Agreement (DTAA) and save tax in the home country.

A Tax Residence Certificate can be applied in the UAE that will act as proof of residence for tax savings in the investor’s home country.

2. Ease of Doing Business

UAE has a robust e-Governance and simplified Company Setup options across the various Free Zones and the mainland of UAE.

Compared to the European region and other countries in Asia, UAE has one of the most streamlined and quick companies formation and ease of doing business.

To support business growth UAE has all the necessary infrastructure and Government support.

Business Consultants will assist investors in preparing the required documents and guide through the company formation process ensuring a hassle-free company setup in UAE.

3. Enormous Market Opportunities

Setting up a company in UAE opens up a large market opportunity for the investors. The strategic location of the UAE makes it a perfect trade hub and business center.

The logistics and transport infrastructure (road transport, shipping network, air transport) connects UAE with more than 190 countries including the whole of GCC Countries and the rest of the Middle East and Africa region.

Hence, for local traders and business investors in the UAE, there is immense scope for easy expansion to global markets and target more customers for their business by setting up a company in the UAE.

4. Low Cost- High Revenue Generating Business

The Business Setup Cost in UAE is comparatively lower than other European Countries and provides world-class infrastructure facilities to support the business.

Also, businesses in the UAE have a huge potential to grow and scale-up generating higher revenue due to an expanding market and trade ecosystem.

5. Flexible Warehouse Options

The vast availability of customized Warehouses in the UAE makes it a perfect location for general trading companies and export houses.

Trading Companies can set up their distribution unit and branches / new companies in UAE and facilitate global trade operations by making UAE the central warehouse location.

The well-established logistics connectivity and storage spaces for specific purposes (Food Storage, Cold Storage, Medical Products, etc.) as well as storage facilities for general goods make the general traders easily import and export goods to and from UAE.

To know more about Warehouse Facility Requirements in UAE for your company, connect with our team right away!

Contact: Aurion Business Consultants

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Why is UAE a Popular Choice for Expats?

There are umpteen reasons why UAE has grown to a popular choice for all. To name a few, they are:

• The high-end infrastructure and lifestyle in the UAE at 1/3rd cost compared to European countries
• The zero personal income tax rates, just 5% VAT, 100% foreign ownership of property & companies and ease of doing business
• UAE is the trade hub of the Middle East, UAE has one of the Safest banking sectors with the presence of all international Banks & hassle-free opening of bank accounts (Currency Arab Emirate Dirham pegged to Dollar)
• Easy access to world-markets in 160 countries, well-developed air, and sea transport & logistics support
• Geo-Political stability in UAE with enormous Government support to promote trade & entrepreneurship
• Safety & Security of life, the lowest crime rate in the world, high-end health care facilities, residents less prone to infections due to weather, hygiene, and food habits.

The Government of UAE has launched a series of initiatives in the lines of promoting Business ecosystem, real estate, Banking, lifestyle & tourism.

UAE aims to bring in a fresh talent pool, business growth, and foreign investment through the long term residence initiatives. “ FEEL FREE TO GROW” is the campaign initiated by a major Freezone in UAE.

Here is a list of options available for a Foreign expatriate to settle in UAE with their family.

1. Investor Visa through Company Formation

Setting up a company in one of the cheapest Free Zones of UAE is an easy way to obtain a 3-year Investor Residence Visa.

The Investor visa holder is eligible to sponsor their family subsequently to the company formation and processing of the owner visa.

2-Year Investor Residency Visa

The 2-year Investor Residency Visa can be renewed continuously at the end of its expiry period so that it’s almost like a permanent resident in UAE.

The country is NOT issuing any passport by way of separate CITIZENSHIP BY INVESTMENT in UAE. The UAE Free Zones has a wide range of Company Formation Packages tailormade for various investor requirements.

An investor can choose from multiple business license types, activities, office types, visa quota, free zone locations, etc. based on their nature of the business activity and budgets.

To know more about choosing the right Free Zone and Business Setup Package, talk to our expert team!

2. Residence Visa through Investment & Deposits

UAE grants residence visas for those investors who make significant deposits in a Company and become a shareholder or deposit on the entrepreneurial projects in the UAE.

Investments into new company formation or entrepreneur projects worth of AED 5 Million are eligible for a 5-year investor visa.

3. Residence Visa through Property Purchase

Property owners with an investment of at least AED 1 Million in designated freehold areas are eligible for a two-year renewable visa. As long as the property rests with the owner, the visa will remain valid. The investor must-visit UAE at least once every 180 days for keeping the visa status active.

The Visa provides all benefits of living in the UAE, apply for a driving license, opening a bank account, sponsor family, etc. The property residence visa does not entitle the investor to work in UAE.

4. Long Term Residence Visa

The Long Term Residence Visa is currently the most popular investment opportunity available for foreign expatriates and businessmen due to the long term validity of the visa. Here are the criteria required for fulling the Long Term Residence Visa issuance in the UAE.

Eligibility for 10-Year Visa (GOLD VISA)

1. Investment in UAE in the form of Real Estate and Business Setup

Public Investment of at least 10 AED million in the UAE in the form of real estate investment and other business investments.

The investment could be in any of the below forms:

• AED 10 Million deposit in the investment fund in UAE
• Company formation with a capital of AED 10 Million
• Partnership with an existing or new company with a share value of AED 10 Million
• Having a total investment of AED 10 Million in UAE with 60% of investment in sectors other than real-estate. (Real Estate shall not be under the mortgage)

Conditions to be met for issuance of the 10-Year Long Term Visa

• The amount must not be loaned
• The investment must be retained for at least 3 years
• There should be financial solvency of up to AED 10 million
• Each partner who contributes to AED 10 Million, could apply for the visa individually

The long term visa holder is eligible to sponsor their family, one advisor, and an executive director.

Investors from abroad could apply for the six-month multiple-entry visa initially to complete the procedures and apply for the long term visa.

2. People with Specialized Talents

Specialist Talents in the field of research, innovation, science, medical, art & Creativity have an opportunity to avail of the 10-year long term license.

The visa advantage also extends to the immediate family.  All the job categories require to have a valid employment contract in the specialized field.

To know more, read: Criteria for Long Term Residence Visa

5-Year Long Term Residence Visa in the UAE

Another popular visa option is the 5-year visa for entrepreneurs, property investors, and outstanding students.

Eligibility for a 5-Year Visa

1. Investors in a property in the UAE

The investment must be made in any residential property in the freehold areas of the UAE with a gross value of AED 5 Million

• Real estate property shall not be under the mortgage.
• The property must be retained for at least 3 years

2. Investment in Entrepreneur Projects

Investment of AED 5 Million in any of the entrepreneurial projects or accredited business incubators based in UAE is another option available for a long term residence visa.

A six-month multiple entry visa would be allowed initially to complete the long term visa process. The investor is eligible to sponsor Spouse & Children, also a partner and three executives.

3. Outstanding Students

Students with outstanding academic performance are eligible for the 5-Year Long Term Visa.

Students with a minimum of 95% marks in public & private secondary schools. Also, university students within and outside country having a distinction GPA of at least 3.75 upon graduation. The student is eligible to sponsor the family under the long term visa.

5. Freelance Permit

Freelance Visa permits are gaining popularity in the UAE recently. Most of the UAE Free Zones are offering Freelance Permits with Visa quota at affordable rates. Freelancers and Part-time employees can apply for freelance permits from the Free Zones and work legally in the UAE.

Freelancing is common mostly in the field of marketing, IT, Consulting, etc. A Freelance Permit is a perfect way to start an entrepreneurial journey in the UAE. It helps you to test the market first and then take the big step towards setting up your dream company.

6. Residence Visa through Employment

Expats who do not want to start a company or invest in property could consider the option of getting employed in a UAE based company. The employer would sponsor your visa and subsequently, you could bring your family to the UAE.

Most of the first-timers to UAE follow this route and then in the future look at opportunities of company formation once they get to know the local UAE market and business environment well.

Why choose UAE for Settling with your Family?

UAE is a perfect place to start your life and business establishment due to the world-class infrastructure and a stable economic & business environment. Also, being part of the growing business ecosystem provides you with numerous opportunities and networking capabilities.

UAE has it all to keep your family entertained year-round, it is one of the most secure and liveable places in the world. The Overall business and economic environment in the UAE are positive for long term growth and sustainability.

To know more about Long term residence visa and how to peacefully settle in UAE with your family, reach out to our expert business consultants right away!

Read more about “Why it is the Best Time to Start a Business in UAE?“.

The post How to Settle in UAE with Family – Choices Available for Expats appeared first on AURION.

Here is a glance at the special Business License categories issued by the DED to the foreign investors for setting up their business establishments and successfully operate in the UAE.

Types of Special Business License Types in the Mainland of Dubai

1. Instant License from DED

The business Registration and Licensing (BRL) sector in the Department of Economic Development (DED) has issued 1882 instant licenses until the end of 2018. Out of the total licenses issued (87%) are for commercial and 13% for the professional category.

Instant License Issuance in Dubai

The instant license is issued within 5 min in one step. There is no requirement of a lease contract or physical office location for the first year. The instant license also offers the option of an electronic contract as an addition to the physical license and entry into the DED’s commercial registry.

Also, the licensee is given membership in the Dubai Chamber instantly as well as establishment cards of the Ministry of Human Resources & Emiratization and the General Directorate of Residency & Foreign Affairs. Four legal forms of businesses can be set up: Limited Liability Company, One person LLC, Sole Proprietorship, and Civil Company.

Instant License from DED – Characteristics

Investors have to note the following characteristics of the Instant License issued from DED. The Instant License has to be renewed every year & after the first year, the owner has to ensure the company follows the general requirements of a mainland company.

Instant License Characteristics for the first year of Business  

• No Memorandum of Association (MOA) in the first year
• No Trade name reservation – Automatic name will be generated.
• NOC from the current sponsor and a copy of UAE Residency is required.
• No signed lease contract is required for the first year

All types of companies except the Public and Private Joint-Stock Company can be formed using the DED Instant License.

Documents required

• Copy of passport of the shareholders
• Copy of residence visa and letter of no objection from the sponsor to the foreign parties

The instant license is aimed at promoting sustainable economic development in Dubai by making it easier for investors to start a business in the region.

2. Consultancy Licenses from DED

The Consultancy License is issued by the DED for various business activities as follows. However, there are some prerequisites for obtaining the Consultancy License in Dubai.

Type of Company Structure for Consultancy License

Business activities under the Consultancy License cannot take a Limited Liability Company as a legal form. They can either be incorporated as a Sole Proprietorship or as a Civil Work Company. The Business owner/director must join a training program from the American University of Dubai for qualifying as directors in the consultancy domain.

3. Dubai Municipality-related Engineering Activities

Only engineering related activities can be incorporated under this license. The company cannot form an LLC Company but a sole proprietor or as a Civil Works Company. The shareholders, owners, & partners must be having a university degree or equivalent experience in the respective consultation field.

4. Legal Consultation Activities

For Legal Consultancy, the owner has to get an approval from the Legal Affairs Department before obtaining the initial approval and the trade name from the DED. There is no requirement of appointing a corporate agent for opening branches.

5. Freelance Permit from DED

There are more than 100 activities under the freelance license offered by the Dubai Economic Department. A wide range of activities from mobile repairing, marketing services, document storage, social media, Website Design, Data entry, etc., can be chosen by the individual for applying for the freelance permit.

6. E-Trader License from Dubai Economy (DED)

It allows UAE Nationals and GCC nationals residing in Dubai to conduct social media business activities through available social media platforms. The E-Trader is registered under the single owner name and not a company. They cannot open a shop, issue visas or hire any staff.

7. E-Commerce License

Companies involved in selling & buying goods online have to apply for an E-Commerce License from the DED before they initiate any service delivery. Getting an eCommerce License from the DED is an easy and simple process.

Advantages of E-Commerce License In Dubai

The main advantage of an eCommerce license is that there is no mandatory requirement of having a physical office space in Dubai for the issuance of the license.

Also, there is no paid-up share capital required for an eCommerce venture. The requirement of a physical office comes into the picture once you wish to hire staff and grow your venture.

The digital and technology infrastructure in Dubai and the wide variety of audience demographics make it a perfect place to start an eCommerce business and scale up easily.

8. Social Media License

Social media as a platform for promoting business and trading is becoming popular.

Based on the data from the Department of Economic Development in Dubai (DED), more than 3000 licenses have been issued since 2017 for trading in social media.

Scope of Social Media License in Dubai

The DED has an e-Trader license for UAE Nationals and GCC Nationals, for ex-pats and Foreign investors they can apply for a social media license.

Also, if you are a social media influencer, apply for a social media license from DED and then get a permit from the National Media Council.

The Social Media trading Space in the UAE is regulated for entrepreneurs. Only those who have the right business Licenses are legally entrusted to do special media trading and promotional activities, else heavy fines will be levied.

To know more about any specific license types and how to apply for a business license in UAE the most comfortable way, talk to our experts right away!

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