Shuraa

Author: Sanovar Lohia

  • Company Registration in Dubai Free Zones

    Company Registration in Dubai Free Zones

    Company registration in Dubai Free Zones is a promising option for any entrepreneur across the world. But there are a lot of things that need to be taken into consideration while registering a company in Dubai Free zone.

    What is a Free Zone?

    This first thing to understand is what exactly is a free zone. Dubai free zones are territoriality different from the Dubai mainland. This is an isolated land, not only distinct based on the jurisdiction but also has specialised rules governing the area.

    Free zone company formation in Dubai is apt to do business outside the country. A free zone company registration in Dubai could be cheaper option, but it deals with several restrictions on where, when and how a business must be regulated or conducted.

    What are the various Free Zones for Company Registration in Dubai?

    Company formation in Dubai free zones is one of the swiftest ways of incorporating a company in the UAE. There are a lot of free zones, but below listed are the most preferred free zones for company registration in Dubai.

    Jebel Ali Free Zone

    Jebel Ali Free Zone is one of the first UAE free zones. It is one of the most expensive free zones for company registration in Dubai. It also offers a wide variety of business opportunities and conveniences.

    DMCC

    DMCC is the fastest-growing free zone encouraging the trading sector and creating networking options for the country.

    Dubai Media City

    Dubai Media City is a hub for global media enterprises, that include news agencies, publishing houses, online media, advertising, broadcasting firms and more.

    Dubai Internet City

    Dubai Internet City comprises of world’s top internet and communications technology companies.

    Dubai Airport Free Zone

    DAZFA is a booming jurisdiction for transport and logistics sector it also promotes the import and export of the country.

    DIFC

    The DIFC (Dubai International Financial Centre)caters several companies providing financial services. Currently it houses over 1327 companies.

    Dubai South Free Zone

    Company formation in Dubai South Free Zone comes with an integrated urban ecosystem enabling business personnel to develop substantial cost-effective business formulations and time management in dealings.

    Difference between FZE and FZCO:

    While registering a company in Dubai free zones it is crucial to understand the difference between a free zone establishment and a free zone company formation in Dubai.

    Free zone Establishments have single shareholder. Whereas a Free zone Company are similar to limited liability company. A free zone company has 2 or more shareholders.

    Even though both provide the same functioning and operational measures, the major difference is in the share capital requirement.

    Advantages of company formation in Dubai Free Zone

    1. Company formation in Dubai free zone offers 100% foreign ownership.
    2. Free zone companies can enjoy limited taxation on personal income and capital gains.
    3. Free zone companies have no corporate taxes and offer 0% duties on import or export.
    4. By registering a company in Dubai free zone you can have 100% repatriation of capital and profits.
    5. Liberal labor laws and easy recruitment process is a major benefit of free zones.

    Disadvantages of company formation in Dubai Free Zone

    1. Free zones companies have restrictions on doing business in Dubai or anywhere inside the country.
    2. Company registration in Dubai free zones sometimes also demand for a fixed investment.
    3. Dubai free zones companies cannot do business in Dubai Mainland.
    4. Registering a company in Dubai free zone limits you to rent an office space only in the designated free zone.
    5. Free zone companies cannot have a branch office. You will have register a new company, different from the parent company.

    Choose precisely while registering a company in Dubai Free zones:

    Having suitable knowledge about company registration in Dubai free zone is a must!

    Dubai free zones offer various options with regards to jurisdiction, legal type, legal structure, the process of establishment, etc. Thus, before registering the company in Dubai freezone make sure that you have all the information suitable for your business a then make the decision.

    You also need to know that there are industry specific free zones in Dubai, and you can opt whichever region suits your commercial requirements.

    Step by step process of company registration in Dubai Free Zone:

    Setting up a business in a free zone is relatively easier. Free zone authorities require minimum paperwork and duration. Here are the key steps to free zone company formation in Dubai.

    • Choose a business activity (or activities)
    • Find a free zone.
    • Choose a company name.
    • Make your license application.
    • Applying for visas
    • Opening your corporate bank account

    Get guidance before registering a company in Dubai Free zones:

    Guidance from company formation advisors or business setup consultants is the best option under this scenario. Business Setup experts help you to understand the right jurisdiction as per your business needs.

    They do not only tell you the perks of free zone, but also analyse whether a free zone or a mainland business set up in Dubai would be best for your company.

    Register your company with the help of experts. Contact Shuraa Business Setup – the leading business setup service providers in the UAE. We help you with Free zone and Offshore company formation, LLC business setups as well as commercial management consultations in Dubai and all over UAE.

    Call us on +971 44081900 or WhatsApp +971 507775554. You can also email us on info@shuraa.com or simply log on to shuraa.com

  • Do SMEs Need Business Setup Service Providers in Dubai

    Do SMEs Need Business Setup Service Providers in Dubai

    The business-friendly environment has boosted the small and medium enterprises (SME) in Dubai and across the UAE. As per a statistical analysis reported recently Dubai holds over 95% of the total SME companies. These SMEs further employ over 42% of Dubai’s workforce and contributes around 40% on the Dubai GDP. This means SMEs play an envisaged role that does not merely contribute to the robust economic structure but also to the innovation sector of the city.

    The pro-governmental possibilities and the capable business ideas of SMEs are a highlight but what mediates them are business setup service providers in Dubai. So, if you are planning to start an SME company in Dubai on a small budget and find yourself wondering if you need a business setup service provider, here is the answer!

    Here is why SMEs should appoint a business setup service provider in Dubai:

    • Dubai Startup Assistance

    Businessmen can be proficient at their businesses but understanding how to set up a startup company in Dubai could be difficult. They are not well-versed in the protocols for setting up a company in Dubai. Guidance is essential; hence a business setup service provider can be of a great assistance and a time saver!

    • Updated with the Judiciary

    Comprehending the extensive growth on the economy immense support is offered to the Small and Medium Enterprises by the Dubai government. Lately, the Dubai government has amended the SME law to aid development by exempting few fees during the process of registration. Nonetheless, to be updated, apprehend and make use of these benefits appointing a business setup service provider can be apt! 

    • Legalities & Paperwork

    Even starting a small venture can be a time consuming and a costly affair if you do not have the right knowledge and documents at hand. Taking advantage of small business consulting services are an ideal way to get your work done! Business setup service providers get all that you need such as legal requirements, documentation process, paperwork and so on.

    • Collaborations & Partnership

    Consulting business experts help SMEs to find an ideal business partner and ensure reliability. Business setup service providers can also help you deal with commercial requirements that are suitable specifically in this region. Subsequently, they also help you to network and assures a better recognition in the market.

    • Cohesive Development

    Business consulting firms in Dubai provide SMEs with clarity on the vision of the business development and the scope of expansion. This further helps in understanding the scalability potential as well as the degree of corporate governance orientation of the enterprise.

    For more information, get in touch with Shuraa Business Setup. Shuraa Business Setup is a Dubai based business setup services provider. We cater to multinational companies as well as several small and medium enterprises in Dubai and all over the United Arab Emirates. We help businessmen deal with the regional regulations and create developmental measures for SMEs for over-all growth. Book a free appointment with our business consultants to discuss in detail.

  • What are the nonpermitted Business activities in Dubai?

    What are the nonpermitted Business activities in Dubai?

    The Department of Economic Development (DED) is the governing body for business setup in Dubai as well as scrutinizes and legislates the various business activities in Dubai. There are over thousands of business activities in Dubai slated by the Department of Economic Development that is being updated every year to provide commercial entities enter the UAE market, make economical investments and eventually boost business setup in Dubai as well as across UAE.

    Nevertheless, like any other country imposes few limitations and restrictions the Department of Economic Development (DED) also restricts several business activities in Dubai. In UAE, standards of legislation and authoritative bodies abide by the Islamic Law, thus business activities in Dubai are as well implied by these laws. Hence, there are a few business activities not permitted in the country, that you could note.

    The nonpermitted Commercial and Business activities in Dubai:

    • Food Products: Alcoholic products and pork items are certain limitations on advertising themselves. Although, these products are available in the market. But the production of these products, selling and promotions have few boundaries that must be adhered to have a business setup in Dubai or UAE.
    • Gambling: Casinos, betting shops, sweepstakes and related business setup in Dubai are not allowed. Any business activities in Dubai related to gambling are completely termed as illegal.
    • Pornographic & Prostitution: Considered as an illegal business activity in most nations around the world, UAE also takes strict actions on conception, distribution, promotion of pornographic or prostitution. Also, related clubs and networks are heavily penalized and sternly punished for carrying out such business activities in Dubai or anywhere in the country.
    • Narcotic and Psychotropic Drugs: UAE is a cosigner to several international conventions on narcotic and psychotropic substances which involve applying internationally valid control measures to ensure that such substances are not freely available. Moreover, UAE ensures zero-tolerance policy under Federal Law No. 14 of 1995 that criminalizes manufacturing, buying, selling, possessing, storing of related substances.

    Thus, before you consider starting a company in UAE or propose a business setup in Dubai, thoroughly learn about the various permissible and non-permissible business activities.

    For more information contact Shuraa Business Setup – a leading business setup service providers in UAE offering A-Z business setup services and guidance in Dubai and across UAE.

  • Why Do You Need PRO Services in Dubai?

    Why Do You Need PRO Services in Dubai?

    Establishing a business in Dubai or starting your own company in the United Arab Emirates can be an ambitious as well as an overwhelming decision. Nevertheless, the increasing number of requirements and mandatories attached to business setup in UAE can be changeling if proper information and the right resources are not at hand. An easy relief to this is the PRO and document clearing services in Dubai and across UAE.

    So what are PRO service?

    Dubai has been growing at a rapid pace and frequent changes in the commercial law and the economic systems are normal. For a business enterprise or an individual entrepreneur, it is required to deal with various governmental departments and judicial authorities of Dubai, while starting as well as regulating a business in Dubai. The best PRO services in Dubai will help you through all the requirements concerning these authorities. Some of the departments in Dubai that PRO services assist with are Department of Economic Development (DED), the Dubai Economic Chambers, Trade and Chamber of Commerce, the various Dubai Ministries, Dubai Visa and Immigration departments, etc.

    The Dubai government has been trying to make the commercial obligations and document clearing services in Dubai user friendly, however, conciliation can be extensive. Further, being a foreign country understanding the rules and regulations; change in the currency, Arabic translated documents and such other contraints can be difficult to overcome on your own. Thus, the assistance of a Public Relationship Officer (PRO) could be very helpful.

    Here are some of the pointer that denote the need of PRO service providers in UAE:

    • The need to monitor and update company about registration, licensing, permits, payments.
    • To ensure agreement with the judicial systems, the legal structures and the various government agencies that need to be approve of the company and its commercial activities.
    • The need to appear before the local authorities and obtain the company’s business license. Also, to take care of the permit applications and renewal of the concerned licenses.
    • To signify the requirements of the Immigration & Labor Department for the company and to process and obtain related documents.
    • To acquire labor approval, entry permit, employment visa, labor card, labor contract, residence visa, and work towards various document clearing services in Dubai.
    • The need to build and retain virtuous working relationship with local and national government offices.
    • To ensure that company or business is thoroughly knowledgeable as well as timely informed about all the governmental protocols and instructions.
    • To monitor the ministerial directives and instructions from the concerned legislation and report it to the respective departments.
    • To maintain the company’s authorized stamps, official governmental letters and all the certified letters sent to Government.
    • To obtain certification and sanctions from authorities and coordinate for the Certificate of Origin/ Attestation, payment of (DEWA, Abu Dhabi distribution/Al Madina Real Estate / Etisalat/ Du etc)

    The above noted are just a few tasks provided by companies offering the best PRO services in Dubai and all over UAE. There are huge governmental as well as judicial responsibilities dealt by a Public Relation Officer. To know more about affordable and cheap PRO Services in Dubai or anywhere else in UAE, just get in touch with Shuraa Business Setup.

    Shuraa Business Setup is a one-stop-shop destination for all your governmental needs and legal issues related to business setup. To know the fastest and the best cost of PRO services in Dubai UAE call us now!!!

  • Penalties On an Expired Business License in Dubai

    Penalties On an Expired Business License in Dubai

    Business establishments in UAE, be it a mainland business, freezone institution or an offshore organization – any of these forms of company are allowed to regulate, provided they hold a Business Trade License or constitutional documents validating the entity as well as their existence. On an annual basis, these business entities are required to follow the practice of trade license renewal in Dubai as well as around the UAE.

    The Dubai Economic Development (DED) offers several options to renew trade license in Dubai. Also, business setup companies in Dubai offer effective and easy ways to renew business license. However, there are instances when companies still do not renew business license and attract several penalties.

    While there are a large number of issues that could be raised because of non-renewal of a business license, the major three are as follows:

    Monetary Penalties

    Economic Development in Dubai is an authority that monitors the process of licensing a company. The authority has made hi-tech implications such as online and SMS renewal system due to which businessmen can renew trade license in Dubai, within no time. However, at times when businessmen do not renew their license they are imposed with several forfeits such as – a business practiced without a license could be penalized with AED 5000, while failure to renew a license within the specified time-limit could cost AED 250, also an additional office for an existing license without permission fines the entity with AED 2000 (fines are noted as per the DED website)

    Black Listing of Company

    When companies continue their business activity without renewing trade license, there is a fair possibility that the company could be blacklisted. Blacklisting of a company would stop all the transactional activates the company is dealing with; nullify the visas and sponsors under the company and there is also a possibility that the investor or the businessman would have to leave the country.

    Restrict Expansion of Business

    Even a small business license renewal is taken place year on year, occasionally businessmen lose a track of when the license had to be renewed and a month’s delay could be worse because these small businesses in future are not allowed to expand under these circumstances. It is extensively important for businesses to have a clean record if there are plans for expansion or rather suspend or liquidate the entity.

    Renew trade license in UAE instantaneously at Shuraa Business Setup. With us, you can keep a track of your renewal dates, get the documentation done for your business trade license renewal process as well as get your business license renewed in Dubai or any other part of UAE, within no time!

    Shuraa Business Setup guides you through your business-related formalities, company formation services and more. For more information, visit our business centers, call us or drop in a quick inquiry and we will get back to you with the needful.

  • How to be Secure Under an LLC Partnership in UAE?

    United Arab Emirates is a major hub of foreign direct investment around the world. While UAE offers a range of opportunities for international investors, there are also few concerns on flexibility as a partner in a Limited Liability Company. A common area of concern for international investors is when it comes to entering a partnership agreement while starting a business in UAE and the laws governing such partnership business in UAE.

    According to the UAE Commercial Code, a foreign investor is required to have a UAE national partner to establish a Limited Liability Company in UAE. Further, the condition under a limited partnership agreement denotes that the UAE national needs to own at least 51 percent of the capital in the company. While there is no restriction on a branch and representative offices, yet the engagement towards commercial business for such entities is limited.

    Laws governing LLC partnership

    It is difficult to discuss the entire gamut of laws governing partnership in Dubai or any part of UAE, also there are provisions that differ from one emirate to another. The limited partnership agreement in UAE is defined by the Article 218 of the UAE Commercial Companies Law which clearly states that a Limited Liability Company, is where the liability of the partner is limited only to the extent of their shares in the capital.

    While this it is not the same for all the legal entities under an LLC partnership. The UAE Federal Commercial Companies Law No.2 of 2015 “CCL” positions various types of limited liability companies’ legal structures such as general partnership; simple limited partnership; joint partnership; public joint stock company; private joint stock company; limited liability company and a company limited by shares. The laws governing each LLC agreement under each legal entity is different.

    Capitalization under LLC partnership in UAE

    The general rule states that companies in the UAE must have at least a national shareholding of 51 percent. Limited liability company (LLC) and joint stock company (public and private) are among the most common forms of legal commercial structures that are frequently adopted by international investors establishing joint venture operations. Under the said categories, there was a huge capital requirement, however, the authorities have removed the clause of minimum capital.

    Nevertheless, authorities do expect that the LLC company should be formed with at least a sufficient level of capital to conduct the proposed business activities, likewise, certain industrial sectors are imposed additional levels of capital requirements.

    Are you secure as a foreign investor?

    Foreign investors and international entities are often concerned about the extent to which partners in UAE companies may be exposed or subjugated at times. Business partners in Dubai and around UAE are keen to understand whether UAE law recognizes the security of partnership in Dubai and other parts of UAE.

    The UAE Civil Code – Article 246 seeks a duty of good faith among the parties in any contract governed by UAE law. It states that (1) The agreement must be performed in accordance with its contents, and in a manner consistent with the requirements of good faith. (2) The contract shall not be restricted to an obligation upon the contracting party to do that which is (expressly), contained in it, but shall also embrace that which is appurtenant to it by virtue of the law, custom, and the nature of the transaction.”

    UAE laws affirm to this and several other such doctrines, they provide protection to the international investors considering that the parties will adhere to their obligations and duties under relevant contracts so that they ensure obedience to this wider duty of good faith.

    How can you protect your rights under a partnership in UAE?

    Create an agreement the safeguards your rights as an investor, create a protection contract that keeps your savings and investments protected, appoint an inactive partner for your business in exchange for an annual fee. Is it possible? Yes, with Shuraa Business Setup you can have a100% operational ownership of the company.

    At Shuraa, we offer strong investor rights and protection contracts, that is signed and certified by two witnesses from each side. Shuraa provides you with the most reliable business partners in Dubai. The power of attorney, agreement of incorporation, purchase agreement and several other such important documents that describe your position as a partner are carefully drafted and checked by Shuraa’s proficient business consultants. Shuraa gives utmost importance to your security and position in the partnership.

    If you want to know more about the laws governing partnership business in UAE or are trying to find the perfect local partner for your business – making sure you are the 100% operational owner in the business, contact Shuraa Business Setup now!