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.

How to Find the Best VAT accountant in UAE

The need for a VAT accountant in UAE is now on high demand as the VAT has been introduced in this country from January 1^st, 2018. Every Business must be VAT-ready with this tax implemented in their system. Now, after having almost no tax in UAE for decades, the new system of tax can be quite confusing for many. In such situations, it is best to take professional help to make a company compliant with the VAT and to ensure a smooth operation. Any business owner must find an expert who is fit for the company. To do this, one must consider doing the followings:

·         Asking questions- As this is a completely new concept, any non-expert will have very little knowledge about VAT. Before hiring, a person can ask questions on the areas where they have confusion. A professional must have enough knowledge on VAT and be able to clearly describe on it.

·         Qualification and experience- It is essential to check the qualification and experience of a professional. The individual must be experienced in dealing with tax-related works. Since VAT has been there in other countries for years, a person having experience in that would be a plus point for the candidate, and can be a good choice for hiring.

·         Good knowledge of technology- As all the VAT related work will be done online, it is important that the professional is good with technology. To be able to carry out all the work in an organised way, it is necessary to know the use of different applications online.

·         Past and present clients- By knowing this, one will get an idea whether the candidate is suitable for his/her particular company or the industry. If the professional has worked or working with companies that belong in the same industry, then he/she will have a good understanding of how everything works here, and can be considered as a good candidate for hiring.  

·         Attention to detail- The professional must have good knowledge on the legislation concerning VAT as well. He/she must be able to evaluate and tell the possible effect of the VAT laws on the expenses, operation of the business. The professional must also be able to evaluate the necessary changes in the company’s accounting system, procedures that need to be done in order to implement the VAT in that company.

·         Approach- It must be seen how the individual approach the task. It must be focused and specific to the business. The professional must concentrate on the model, goals, needs, structure of operation of the company to effectively make it VAT compliant.

Implementing the above methods, any recruiter or business owner will be able to find a VAT expert perfect for his/her company.

Summary

As the VAT has been introduced in the UAE, it has become mandatory for every business that has a specific annual revenue to register for VAT. Thus, companies must hire a suitable professional for this task. This article describes the method of finding the right one.

Author’s Bio

Mansour Almasi is a tax expert who has been working in this industry for more than seven years. He also works at Uaevatexpert.ae as a VAT accountant UAE. Business owners in need of an expert can contact him.

5 Misconceptions About Business Consultants In UAE

Think you are cut to be a business consultant, in UAE! How does it feel when you observe certain myths about your consultancy service? Well, it is surely not a cherishing thought. To flourish as a business analyst in UAE, you need to overcome all the misconceptions about your service.

Prove them wrong and ascertain yourself as a genuine business consultant

Here is the list of top 5 misapprehensions concerning a tax advisor. Never let these create a false impression regarding your service.

1.      People think Business Coaches and Business Consultants are same

Contrary to what the mass believe, BusinessConsultants and Business Coaches are not identical in respect to their job role. The responsibility of the business coaches is to guide the entrepreneurs in achieving their visions by accomplishing their missions. However, business advisors deal with a completely different chore. Business owners hire an expert analyst for solving trade issues and providing personalized objectives and information. They may deal with the same business at the same time, but in anyway, their duties differ from each other.

2.