5 Things To Do Right After Company Incorporation

Establishing a business is anything but cakewalk and more so for an entrepreneur. After you are done with the process of choosing a structure for your business and company incorporation, you must not sit idle if you have big dreams for your company. There are a lot of things that you need to do before you finally kick-start your business.

So what are the things that you need to do if you have recently incorporated your own company? Here is a to-do list that you need to check off! 

1.      Getting a Tax Registration Number

Be it a corporation or an LLC or a sole proprietorship – every business entity needs its Tax RegistrationNumber or the TRN to operate in Dubai and other parts of the Emirates. It is through this unique number that the UAE government tracks your business's activities. So right after forming an LLC, this should be your priority. But why is this number so significant? Without the number, you won’t be able to file your business’s tax returns. 

2.      Obtain business licenses

After company incorporation of your business, you must apply for the necessary licenses that you would require in the course of running your business. You also need to keep track of all the offices that you need to visit to apply for the permits.

3.      Meet with a tax advisor

Before you start operations of your business, I would suggest that you get an appointment with a tax advisor to gain a better understanding of all the taxes that you need to file. An advisor would also be able to help you choose the correct tax and VAT schemes.

4.      Open a business bank account

Once the formalities for company formation are duly done, you need to get your documents to open a bank account for your business. As this can be a complicated process, you can hire an agent who offers business setup services. The agent can do the needful and open an account which you can use solely for the financial transactions of your company.

5.      Protect your name with a trademark

Before company incorporation, you have given a name to your company, right? So your next step after formation should be to get your company name trademarked so that no one can infringe on it and use the name elsewhere.

With the above simple steps, you will be able to keep your business legally protected for years to come so that you can proceed with your business without any hindrances. Just tick off these five tasks, and your company will achieve the height it deserves.

6 Benefits of setting up an offshore company

If you are an entrepreneur and you are thinking of setting up an offshore company formation in Dubai, then I believe that you have taken a right decision indeed. Establishing a company offshore might be an elaborate process, but there are several benefits that an offshore company incorporation has on offer for you. From minimisation of taxes to better confidentiality – an offshore company can be a safe bet for such reason and many more.

Here are the six key benefits of forming an offshore startup.

ü  Optimization of taxes

The first and foremost benefit than an offshore company can offer you is the lowered and minimised tax obligations of your business in Dubai or any other place in the Emirates. Since non-resident companies enjoy an exemption from taxes and have to pay low percentages of taxes, an offshore company can help you optimise the tax cost of your company. Make sure you hire an agent who is a local of Dubai as he or she will be able to guide you in the best way when it comes to matters of corporate taxation.

ü  Confidentiality

Since most offshore companies are not required to publish their financial information or the details of directors and shareholders publicly, this will help you maintain the privacy of your company. In Dubai, you will never be asked to reveal your financial information to any third party unless your business activities are considered criminally offensive.

ü  Low administration costs

Since the legal obligations of an offshore company are lesser than other kinds of establishments in Dubai, you will not need any extra staff for accounting, or other administration activities. This will help you save a considerable amount of money on other staff thus making it more cost-effective for you and your budget.

ü  Lower set up and maintenance costs

Since the procedure of setting up an offshore company is considerably easier and more straightforward, the expenses that you have to spend in the process of offshore company incorporation in Dubai is lower. Since as an entrepreneur budget is a big problem, this is the best option to save money by spending less on establishment and maintenance costs.

ü  Lower capital requirement

In Dubai, registering an offshore company will require minimal capital, usually less than what is needed for an onshore registration. In many other parts of the Emirates, there is no margin for money required for registration. This makes offshore company incorporation a profitable option indeed.

When you think of a new business setup in Dubai, an offshore company is the best option as it is flexible regarding the structure of the company and its capital requirements, etc. So what are you still waiting for? Go and start your offshore enterprise today!

How to Register a Company in the UAE?

The process of company setup in UAE is often seen as a difficult job by most of the aspiring entrepreneurs in the country. In fact, the foreign investors find the whole process quite intimidating, which is the reason they look for expert assistance while planning their company formation in the country. However, the process is not as complex as people think it is. If you are willing to establish your business in the prosperous land of UAE, you may need to comply with the following steps in for registration.

1.      Decide who your local partner will be:

As you may know, every foreign investor needs a local partner to perform the company incorporation procedure in the UAE successfully. While that may sound like an additional task, finding a genuine local partner can be way more taxing than it sounds. Also, you need to decide what sort of contribution you expect from the local partner.

2.      Choose a name for the company and get activity approval:

One of the challenges regarding company setup in UAE is that you don’t have the option to choose any name for your company and get away with it. While it is mandatory to get your business activities approved by the authority, you are also obligated to get the name of the company approved by the Department of Economic Development (DED). You can apply for the approval of name and business activities by submitting a standard application form at DED.

3.      Look for business premises and make tenancy contract:

There are several favorable areas where you can set up your business in the UAE. However, you need to have a valid tenancy contract for your rented business premises before you can start the operations of your company in the UAE.

4.      Make a MoA with the partner:

The MoA or the memorandum of association with your local partner is the testament to the arrangement between you two. It includes all the necessary details about your partnership, including the ownership percentage, responsibilities and much more. It needs to be submitted to the DED.

5.      Submit the MoA and the license application:

Lastly, you need to submit the MoA as well as the license application at the DED along with the required legal documents and tenancy contract. You will be needed to pay all the fees at this stage. The process usually takes about a week to get you the license.

That’s it. Now you have the permission to run a company in the UAE. However, you still need to abide by the regulations set by the government.

Everything You Need to Know about VAT Refund in the UAE

Every VAT registered business needs to file their VAT return within the said time. You will also find the VAT refund form on the online portal where one can claim any extra VAT paid. Businesses are required to gather the VAT from the consumers for the government. Along with this, they also have to pay the VAT to their suppliers upon any purchase. In the VAT return form, this input and output VAT are calculated.  A taxable person can only claim for a refund if the paid VAT is more than the collected one. To do this calculation more accurately, the assistance of an expert tax agent Dubai is highly recommended.

There are also some conditions fulfilling which one can claim a refund:

·         Type of the service or product- Apart from the standard rated taxable goods, VAT refund can be claimed even on the zero-rated service and products. But, if the goods are exempted from the VAT, no refund can be requested for that.

·         VAT registration- In order to claim for a refund, the business must be a VAT registered company. Otherwise, it cannot make a request for a refund.

·         Eligibility period- Following the supply date, if the payable or paid amount passes six months, any refund claim will not be considered as eligible.   

·         Rational charging of VAT- The company must collect the VAT in a reasonable way. There will be no refund if the VAT is charged wrongly on the services and products.

·         VAT invoice- Businesses need to show VAT invoices that have been properly created to claim a VAT refund.  

The process of claiming VAT refund

While filing your VAT return, you will get an option to request for a refund if your paid VAT amount is more than the received VAT. There, you will have to choose the ‘Yes’ box to claim your refund. After the submission of the VAT return form, you will have to finish the application form for VAT refund, ‘Form VAT311’.

You need to log in to the portal of FTA and then, go to the refund form. Here, you will have to fill in all the details. The fields which you will find in the VAT refund form are as follows:

·         Name and TRN of the organisation or taxable person- You will not have to fill up this field as it will be automatically filled up.

·         Excess Refundable Tax- This is another automated field which will contain the total amount of the refundable tax which is extra. This will be according to the reported amount in the last filed VAT return.

·         The refund amount you want to get- In this field, you will have to input the amount of the VAT that you wish to get back.

·         The outstanding excess refundable tax amount which is eligible- This field will again be automatically filled and show the remaining refundable amount.

·         The penalty for late registration- This area will contain the details of any late registration penalty that you might have.

Now you have a good amount of knowledge regarding the VAT refund. Thus, you can claim for the same very easily the next time you do this.  

Features of Offshore Company in the UAE

Offshore company formation in UAE is a very lucrative option for any entrepreneur. But, before one take any action it is important to learn about the nit and grits of this company. This will obviously make the process of the offshore company formation UAE much easier for any person and also helps in avoiding any risk which may occur due to ignorance. As we all know, many steps are there which needs to be taken care of for a company formation UAE. Thus, it becomes more important to know about the regulations and other aspects to ensure all these steps are carried out effectively.

Below are some of the features of this type of company:

·         The UAE law states that it is necessary to hire a registered agent who can represent the enterprise before the government. This agent must come from the list of these agents who have been approved by the government.

·         By starting an offshore company, the permission for opening a corporate account in any Dubai bank can be received

·         There must be a minimum of a single shareholder and one director

·         Offshore companies in the UAE enjoys full exemption from tax and duty

·         It also allows for complete foreign ownership

·         Operating licences are not issued to the offshore companies in the UAE, instead, they are provided with just an incorporation certificate

·         With this company, business owners can keep their business completely secret

·         The owner of the offshore business can keep the whole of the profit

·         It is also possible for an entrepreneur to own the company solely

·         In special cases only, the  offshore company may be asked for submitting audited financials

·         No restriction is there on the amount of money or the capital for opening an offshore company

·         The registrar verifies the important documents which are needed for the incorporation of this company

·         The process of registration for this type of company in the UAE is very short. It may take up to only three to seven days

·         The shareholder also gets the authorisation to run the business

It is always advised for those who wish to start an offshore company in the UAE to get adequate knowledge on the process to the legislations from the business consultants. This will obviously be beneficial for preparing the documents, as well as, for the whole process. 

How to Rope In the Best Company Formation Consultants in Dubai?

To establish a business successfully is not everyone’s cup of tea, but neither is it a rocket science too hard to understand and achieve. If we are to talk about the business scenario in and around the United Arab Emirates, then it is to be mentioned, that among the overall chunk of business in Dubai, 72% is occupied by micro firms, 18% by the small firms, followed by 5% by the medium firms. This is a fair indication that company establishments in Dubai are on a rise, and this, as a result, calls for the intervention of various company formation consultants in Dubai. In case you too are planning to establish a business successfully and looking for reliable consultants in the country that can help you form a successful firm in the long run, then consider reading through the following tips and suggestions on roping in the bet consultants for a successful company establishment in the near future.

§  Conduct thorough background research before finalizing the deal

First things first; you should consider conducting thorough background research regarding the company and figure out whether the business setup consultants of the firm is experienced enough in the field of providing corporate solutions requisite for an ideal formation of companies. If the experts do not possess all vital technicalities and ground knowledge regarding all nitty-gritty of various business models and what strategies would work well in the long run, then that might not prove to be beneficial for your business agenda.

§  See if the consultancy has an informative and well-maintained website

A well-maintained, user-friendly and informative website is often an indication that the company itself is responsible enough in the matter of prioritizing client’s concerns. You should be able to find things readily available in front of you with informative insights regarding services and how things work. Unless and until you are being able to learn about the company and exploring what all services the organization offers, there would always remain confusion at the back of the mind. Thus, in order to avoid confusions and hesitations as such, it is always better to check out the website thoroughly before hiring a service.

§  Make sure that the company executives understand your business model

This is one aspect which is equally important to be considered if you wish to rope in the best company formation consultant in and around Dubai. There are fake, inexperienced and unprofessional agencies available as well. It would certainly be a great responsibility on your part to figure out the genuine ones and consultants that are technically updated, having thorough knowledge and technical insight on various business models and how things could be executed in ways that can actually serve the purpose consulting professionals and seeking their help in the matter of forming companies successfully.

In addition to following each of the aforementioned suggestions on finding the best company formations experts in and around Dubai, do keep one thing in mind that you got to be quite sure of your plans and what agendas you have for your business to flourish in the future. Otherwise you won’t be able to explain things properly to the consultants. And in case the communication is disrupted, unclear and confusing, your company might just end up adopting an inefficient and inappropriate strategy, which any day, a big NO-NO!

The Importance of Company Formation Consultants in Dubai

Dubai can be a great place for opening any business, but you will need to carry out many proceedings to do so. It is always advised to take assistance from the expert company formation consultants in Dubai to properly start the business. As mentioned above, a lot of works need to be done to open a company in this location. Even if you have knowledge regarding the proceedings, an expert can offer a much better service which will help you to avoid any risk.

If you are still sceptical about why you should hire business setup consultants, then the following information can help you to better understand it.

The advantages of recruiting an expert to form a business in Dubai

·         Accurate Paperwork- It is obvious that starting a business will include a lot of paperwork. If you do it yourself, you might forget some important documentation that can delay the proceedings and thus, your company will get affected by it. Hiring a professional will ensure that all the paperwork gets done accurately and quickly. This will also give you some relief from the hassle.

      A detailed market study- With the help of professional company formation consultants in Dubai, you will get all the information related to the market in which your company will operate. They can tell you which location will be the best for opening your type of company. You will also get to know what works in a specific market for a business to be successful in it, who will be the target audience, the competitors etc. This will be ultimately beneficial for your company.

·         Better management of legal matters- In order to start a business, there will be many legal formalities that need to be taken care of. For this, you will need a registered professional who has a good understanding of the related rules and regulations. They can also offer expert advice that can be beneficial for both the company and you. With the help of an expert, getting permits and approvals from the governing bodies will also become easier. Remember that if any error or mistake happens in the legal proceedings, it may cost your business largely.

·         Superior strategy planning- If you want to run a successful business, you must take an experienced professional’s help. An expert can assist you to develop strategies that can lead to your company’s success. Thus, hiring a professional can bring success to your business.

As you can see that there are so many benefits of hiring a consultant for business formation, you might want to recruit one to get to those advantages.

Different types of branch offices which you can open

A business setup in UAE is a buzz among entrepreneurs as it has become the most preferred location in terms of benefits, infrastructure, communication, government aids etc. Along with this, with the implementation of the vat, UAE has become a fast developing business hub as well with a high rate than what it was five years back.

Investors prefer a business setup in UAE also because of the high and sophisticated living and working conditions. The introduction of vat has ensured that the revenues that the investors will earn will be double than what they have earned in the last decade itself. UAE has brought forward diversified and strategic economic projects that ensure the revenues.

Why do a business setup in UAE is because of an increase in FDI flow, the GDP has accelerated to a high level, the company setup laws have become more friendly which has also got international accreditation. Thus, more foreign investors are moving into UAE today. Moreover, the country has distinct business specifications and categorized business jurisdictions that makes doing business easy.

Due to this, company formation in UAE has been tagged as one of the best places across the globe. The government is giving a lot of business opportunities and state-of-the-art facilities. The country houses the best infrastructure as per the business needs too where for example, there are places where companies can do business even 24 hours.

So when you own a company, it is necessary to have a dedicated outlet. These are often referred to branches too. A branch office is not a separate legal entity. It is only a means that functions to help the business to grow so that you can reach various places. You can establish your presence in new regions which will add authenticity and earn more revenues.

How can you get a branch office?

You need to file an application for this to the Ministry of Economic and Commerce through an agent. A permit letter is issued from the ministry. This approval must be secured from the needed authority. After this, the local economic department will be registering the branch office. Only after this, you will be getting the business license to open the branch.

Different types of branch offices

·         GCC company branch: Only a GCC based company can open this type of branch and extend business in any of the countries that form the GCC. The company can undertake more than one activity as stated in the company license. Even if they have multiple branches, they can register for the same.

·         Foreign company branch: You can open a foreign company branch in UAE and own it, i.e. have 100% ownership. You can operate this branch as headquarter in the country. However, if you want to import any good, you have to do it only through a local firm.

·         Free zone company branch: This branch has to be located in the UAE’s free zones. You can use this branch to expand your business. You can only open this kind of branch in the mainland; however, you need to get a license from DED.

Along with this, you must have an Emirati shareholder. In case, you do not have a shareholder who is local, you can get the branch license approved by the concerned ministry. A local service agent will help you with this.

·         UAE company branch: This kind of branch is only an extension of any UAE-based company. The company can only extend its branches within UAE and undertake all the activities that are stated in the company license.

These are the different branch offices that you can open for your business in UAE. However, these branch offices depend on the type of company that you are forming. 

Effect On Tourism Industry Due To VAT In Dubai

With the introduction of VAT in Dubai, its tourism industry is facing a number of changes and transformations. Travel and tourism sector is a part of UAE’s national economy with an average national contribution of Dh130 billion, annually.  A recent forecast in UAE has prompted an increment on international tourism revenue by 7 per cent annually. The UAE government is expecting a steady growth by 2020 with contemporary openings of new attractions like Motiongate Dubai, IMG Worlds of Adventure, Bollywood Parks and many more.

Now, the question is with the impending roll out of VAT in Dubai, what is going to the impact on tourism sector? Businesspersons are already concerned about their VAT return 

(Register for VAT return filing now)

and there is a lot more things doings rounds in the corner. Subsequent to this, you can find some of the recent impacts on tourism industry since the induction of VAT in UAE –

 Which of the companies have to be a VAT registered business?

According to the ministry of finance in UAE, businesses with annual turnover of more than Dh375,000 are compelled to register under VAT law. The update also informs that the trades with taxable turnovers between Dh187,500 and Dh375,000 come under the regulation of “optional VAT registration”.

      Is there any impact of zero-rated supplies on Dubai Tourism?

The tourism sector in Dubai can be categorized into several sub-divisions viz. luxury, medical, meetings, education, exhibitions, events and other special interest groups. According to recent updates, education and healthcare segments are subject to zero-rated supplies but the details are yet to be announced.

      What is the effect of current GCC VAT framework on events like World Expo?

If Dubai tourism industry hosts international events like World Expo, it may be subject to zero-rated or standard VAT rate. According to GCC VAT framework agreement, the option of selecting a scheme completely depends on the hosting members. This is going to have a positive impact on the larger exhibitions where 5% standard rate may show significant impact.

      Can they tourists claim back the VAT charges and administrative charges?

It is true that tourists are allowed to claim back the VAT charges they have paid. Considering lower administrative charges and VAT charges, the refund amounts is expected to be nominal. Once the UAE government introduces this scheme, the tourists are subject to take the administrative burden and the original refundable amount.

Till now, the road towards the execution of VAT is full off hurdles, errors and trials. However, UAE government believes that, once streamlined, this taxation is going to be the cornerstone of Dubai’s economic system.

What You will need to be a Business Consultant?

The job of a business consultant can be very attractive, as well as, challenging. You need to be really good at what you do, and only then, you can expect to get the big paycheck. You will have to obtain a bachelor’s degree in any one area of finance, accounting, marketing, business etc. But, once you become a professional what you will have to do as a business consultant?

The work of a business consultant is that of a problem solver. And, unlike any other professionals of a specific area like a tax consultant, your work may involve all the areas of a business. It will be your primary job to help a business improve and grow.

So, what does the job of a business consultant in UAE include?

·         Analysis- Since the main work in this profession is to provide solutions, it is necessary to at first to detect and understand the issue. So, a thorough analysis of how the business operates is what a professional does at first.

·         Coaching- The professional gives coaching or training to the company, which can include personal development, as well as, teaching in a specific area that needs to be improved.

·         Temporary employee-These consultants are also hired when a business has less human resource and needs an expert to handle a project. Thus, they can work as a temporary employee which will be very cost-efficient for the business.

·         Problem-solving- This is the chief work of a VAT advisor uae. After doing the research and reviewing work, the professional will prepare plans and strategies to solve an ongoing problem. They will also help in improving an area of the business, and their performance to bring them maximum growth.

·         Travelling- It is required for a professional to travel as they will have to work with clients from different parts of the world. Thus, they should also be able to work in different time zones, and be prepared to have less to no ‘off time’.

·         Providing an extra perspective- These professionals look into a business from an outsider’s view. So, they can detect a problem within the business which the existing employees failed to find out. Thus, they will have to provide fresh ideas to give the business advantages and help it to get ahead of others in the market.

·         Bringing changes- As an expert, a consultant will have to implement changes in a company for its development like cost-cutting, firing etc. As these measures can bring in many disturbances and internal strife, the consultant will be the one who will take all the heat. So, they must be ready for dealing with such situations.

So, this pretty much sums up the job profile of a business consultant in dubai, and you can expect to do more or less these works as a professional.  

Tax Consultants In Dubai Put An End To Tax Disputes

Are you a victim of tax disputes, every year, at the tax season? Probably, you are yet not aware how beneficial it is to hire a tax consultant in dubai. With years of experience and plethora of knowledge, these tax advisors can erase off all your tax disputes. No matter, whether you are a self-employed person or own a corporate firm, hiring a tax consultant is what makes the difference.

Do you know, in precise, what are the tax disputes a businessperson or an individual faces in Dubai? Check in the subsequent lists whether your issue matches with any of the followings.

Common tax disputes in Dubai

Paying tax on exact dates is one of the major duties of a citizen and moreover, tax plays an important role in the development of your country. However, several disagreements arise when you are about to pay the taxable amount. Note the disputes that are common to every citizen.

      You may have forgotten the tax date and have failed to pay the amount on particular span

      Having too many taxes to be paid like property tax, road tax, business tax and others, it is difficult to keep a track of all the records

      An individual may not have a clear idea on the definite tax seasons. The confusion arises as property taxes, and business taxes are due once in a year whereas road taxes are collected every time you cross the tollgate.

      Corporate companies are subject to countless taxes and the slabs change very frequently. Therefore, it is a neck-breaking job for them to keep track of all the updates.

Hiring a professional tax consultant Dubai is one of the extraordinary ways to overcome all these tax challenges. Be a little stress-less with pro taking responsibilities of your taxes!

How tax consultant appears to be helpful?

For obvious reasons, tax consultants are subject matter experts and deals with a dispute better than you can. Choosing a tax consultant is far superior to losing pennies as extra tax.  Here’s how a consultant guides you through the tight circumstances.

      They check and affirm that you are paying taxes only for what you have to pay

      An advisor always keep you informed with all the latest updates

      They also let you know about the definite items subject to sales tax

      You can save a handsome amount as the consultants enlighten on the taxable services beforehand

      Corporate tax advisors prevent taxes from queuing up and simultaneously, draw innovative budget plans ensuring companies’ rapid growth

The role of tax advisors is indispensable when it concerns to maintaining corporate and personal finances in Dubai. You must not hesitate in choosing one, but make sure the consultant is genuine and knowledgeable.