Why Setup LLC Company in Dubai, UAE?

Dubai offers strategic location which is conducive to several business opportunities. It is the span between the East and the West, thereby providing access to the lucrative markets of these regions. Moreover, this fastest growing UAE state offers several business landscapes such as Free zones and mainland Dubai.

LLC company formation in Dubai - Confused?

Like the rest of the world even Dubai offers several business structures or company types such as LLC, partnership companies, branch offices and FTZ ( Free trade zone ) enterprises. However, LLC is extremely popular with new entrepreneurs.

In a LLC business setup in Dubai, an expatriate / foreigner can build company through shareholding which is typically fixed at 51% for the local partner and 49% for the aspiring business entity. A point to note - the type of activities that can be conducted by this enterprise is dependent on the type of license obtained.

So, what is LLC Company in Dubai and what are advantages of LLC Company setup in UAE?

• Protection -

As the name suggests, Limited Liability Company offers personal protection in case the business idea backfires. It simply means bad debts and a myriad of liabilities arising out of failed business does not put the partner into any uncomfortable situation, typically with the court of law.    

• Capital -

LLC company formation in Dubai doesn’t demand you to put/show any minimum capital in bank. If a new company requires X amount then it can start its business with the said capital. However, the setup fees, license charges, visa coverage and a host of other expenditures need to be taken into consideration.

• Bouquet of Business Activities -

LLC company setup in UAE offers a bouquet of business activities which can be conducted from mainland Dubai. New business entities simply need to pick the right type of license, the one that matches their aspiration or existing line of work. DED or Department of Economic Development has a list of every single activity which can be initiated in Dubai.

• Residency Visa -

Under the shelter of Visa an investor can enjoy some of the perks of a local citizen. Entrepreneurs can rent office space, residential space and apply for various amenities.

How to start a LLC company in Dubai? 

Mentioned below are some of the requirements for LLC company formation in Dubai.

1. A local sponsor for LLC Company in Dubai will hold 51% stake in the new business. Many aspiring entities turn apprehensive after encountering this clause. However, there is no need to worry as the local partner who is typically a government employee or a businessman is a thorough professional. In fact, this entity is paid a yearly fee for his service, and that’s about it. Nonetheless, this could turn tricky and sometimes rebound; therefore it is advisable to hire services of business Setup Company such as Business Link UAE who provide end to end solutions.

2. Once a local sponsor is selected the next step is to reserve a company name.

3. Applying for license is the next obvious task which can be daunting as it requires submission of several documents such as passport and visa copies of the partner/s, Memorandum of Association, Certificate of Incorporation, Board resolution, rent agreement etc.

So, if you are looking for company setup in Dubai contact Business Link UAE one of the foremost company setup consultant in Dubai.

Civil Company Formation in Dubai – How to Set it up in UAE?

UAE in general and Dubai in particular offers a plethora of lucrative advantages to business community. State of the art infrastructure, strategic location, impeccable ethos, transparency, amazing government support and host of incentives are some of those bright spots that beckon business entities from across the globe. Although Dubai offers several types of company formations the one which thrills certain section of aspirants is civil company formation.

So, what is civil company formation in Dubai? But before that, let us understand the dynamics and metrics of setting up any kind of business in Dubai.

Dubai offers three main jurisdictions for enterprising entities – Mainland, Free Zone and Offshore. While the first option requires a local partner who by default will hold 51% stake in the company, the second option allows 100% ownership with a bouquet of incentives such less corporate tax and personal tax as well and 100% repatriation of profits. However, mainland business opportunities in both the cases are simply off limit.

Offshore option is chosen by businesses for the same set of reasons, similar to free zone, but with a different set targets and goals.

Once an appropriate jurisdiction is selected the next step is to apply for a relevant license. Business entities need to understand that licenses for mainland are issued by Department of Economic Development, and for free zone and offshore, respective authorities are responsible.

Department of Economic Development issues three different types of business licenses:

• Commercial license
• Industrial license
• Professional license

And the types of companies that can be registered under these licenses include:

1. Limited Liability Company
2. Civil / Professional Company
3. Joint Venture Company
4. Private Shareholding Company
5. Public Shareholding Company

Of all the above mentioned company formations, Civil Company offers the best of both worlds, i.e. 100% ownership and access to mainland business opportunities. The question is how to start civil company in Dubai? The answer is really simple. Get a professional license in Dubai. However, a point to note - professional license setup in Dubai is only meant for professionals such as  doctors, accountants, lawyers, legal consultants, management consultants and engineers, and these business entities must hold professional qualification/s in their field of expertise.

Nonetheless, a local service agent, basically a UAE national is still required as a liaison between the said entity and the government department/s. This agent applies for various approvals, license, permits, visas etc. Business Link UAE with a dedicated and qualified staff provides a one stop solution for professional license in Dubai as well as professional company formation in UAE.

Mentioned below are some of the salient features of Professional / Civil Company formation:

1. Professional / Civil Company can only be created for professional services.
2. The owners / partners must be qualified professionals in their chosen area of expertise.
3. 100% ownership allowed. Access to mainland for business opportunities allowed.
4. Services of a local agent still mandatory.
5. Non professional activities such as trading / manufacturing activities disallowed.

Business Link UAE, a company formation consultant in Dubai can help you start professional company or any other type of business setup in Dubai, UAE.

RERA Certified Local Sponsor in Dubai – His Roles and Responsibilities

Events whether on a large or small scale require a sponsor. The sponsor will be responsible for supervising the entire project or event over its whole cycle.  The sponsor will be the required leader, he or she will decide the sequence of steps in a project, will coordinate between all the heads and overview the entire project.

Usually a Sponsor is an individual with years of experience in the role of leadership. He or she must have e sponsor is also an influential personality who can chair his or her ways through people and make the participants listen to him or her effectively. The sponsor has both steering as well as stealing role. RERA certified local sponsor in Dubai fulfills all the duties efficiently and effectively.

As such there are many roles and responsibilities of a local sponsor for real estate in Dubai but the major ones include-

• Sponsor is the captain of the ship- sponsor will decide the particular event or project to be undertaken and will shape it. He or she will analyse the cost of the entire project and also make the cost benefit comparison. This forms the basis of starting any project. Without understanding the benefits that can be realized from the project one should not invest their funds.  A project should be started where it is needed the most.

• The sponsor will be responsible for smoothly managing the project in its entire cycle. He or she will resolve conflicts if any between the members and take care of any last minute mishaps. He or she has to be capable enough to offer any and every kind of advice as and when required. He or she should have contacts with the right people from all kinds of professions and backgrounds. This will help in getting all the approvals easily and solving a problem if one arises. For example having contacts with government officials can help in saving time by way of easily getting the approvals.

• After the base of the project as decided and the baselines decided and made clear any change after it has to be made by the sponsor. No changes can be made without the approval of the sponsor. Any increment, decrement, rectification, alteration will take place by the sponsor. In this he can be assisted by a team selected by him for this purpose. This is beneficial for the project in the way that not everyone can alter the project as per his wishes. It will also help in sticking to the timeline.

• Sponsor will play an important role in identifying risks and explain to his team the ways of managing it. The important areas are identified by him before hand and ways are sought to surpass them. The local sponsor for real estate business setup in Dubai will let the head of the project understand the risky portions and assist him in tackling them. For example if the sponsor knows that an industry cannot be established in a forest area he will not go ahead with the project and save precious time and resources.

If you want to start real estate business in Dubai and looking for a trustworthy local sponsor then we at Business Link UAE consultancy assist you through the whole procedure to get right RERA Certified Local Sponsor in Dubai.

About VAT Implementation and Registration Services in UAE

The United Arab Emirates (UAE) a member of the Gulf Cooperation Council (GCC) is getting ready to roll out the new Value Added Tax (VAT) regime on the first day of the New Year. But, what does VAT actually mean? How does it impact common man’s life? The aim of this post is to throw some light in this direction.
 
VAT implementation in Dubai, UAE, a GCC member country, can be considered as another source for raising government’s revenues. According to estimates, the UAE government will generate additional revenues of over Dh12 billion in the first year of implementation of the VAT.

The decision to implement VAT was taken by the governments in GCC member countries with a view to diversifying revenue sources in the wake of a sharp drop in oil prices. Further, the recommendation of the International Monetary Fund (IMF) that the members of the GCC should diversify their revenue sources and reduce subsidies to achieve fiscal consolidation had put the countries under pressure.

As part of the implementation of VAT in the UAE, it is mandatory for companies reporting annual revenues of more than Dh3.75 million to register under the VAT system. On the other hand, registration is optional companies earning revenues in the range of Dh1.87 million to Dh3.75 million during the first stage of VAT implementation. Eventually, all companies will have to have VAT registration.

Even after VAT implementation & VAT registration services in Dubai, the UAE will continue to remain tax-free in several ways. This is because salary income is not taxed in the country. Further, free zones would continue to be tax havens, offering even complete ownership for foreign investors.

In order to ensure that the impact of VAT on common man is minimal, the government may either exempt or zero-rate many supplies. Most governments implementing VAT focus on taxing consumers’ discretionary expenditure. This is to protect people earning lower incomes.

According to an announcement made earlier by the UAE government, VAT will not be applicable in the case of 100 food items, health, bicycles, education, and social services. However, VAT will be applicable in the case of electronic items, smartphones, cars, watches, eating out, jewellery, and entertainment. It is also expected that the GCC members will levy excise duties on beverages that are harmful to health, especially those that have high sugar content.

Companies supplying products or services for which VAT is applicable will be allowed to reclaim VAT on costs. On the other hand, VAT cannot be reclaimed when supplying products or services exempted from the VAT.

As VAT is levied on the price paid by the customer, cost of products and services may increase. However, suppliers can decide the price of the products or services they provide.

There is hardly any time left to clearly understand the implications of the value-added tax system and make the required changes. In addition, the complexity and size of a business will determine the amount of effort required to implement changes. However, it is important to take the impact into consideration and deal with it in the best possible manner.

If you are looking for VAT consultants in Dubai for VAT registration services, please call Business Link UAE at +971 43 215 228 or email to us at info@businesslinkuae.com. We are VAT Consultants in Dubai and we provide VAT registration services, and Accounting and auditing services for small and medium companies. We have a thorough understanding of UAE rules and regulations and the requirements to be met for setting up different types of businesses. We work with complete transparency and clients will not be burdened with hidden costs. In addition to providing cost-effective business solutions, we work as per the time frames agreed upon.

How to Set Up Limousine Company in Dubai?

Nobody minds a little luxury every now and then. After all we slog ourselves and work hard only to enjoy a little. So when you visit one of the most expensive places why compromise. Travel in style and comfort with DTC Limousine Service. Dubai has some of the most beautiful manmade structures along with the magnanimous desert. The iconic Burj Khalifa, palm islands are now world famous tourist destinations. Imagine yourself moving around the swanky lanes of Dubai in a shiny, huge and super comfortable personal limousine.

Not only would it be safe and comfortable to travel but will also save precious time when there is so much to see within a limited period. Also people on business visits can use this service to reach to their destination well within time and without facing the terrible heat. Thus starting your own limousine rental business in Dubai is a wise decision. The venture will be a profitable one. Being a rich nation people prefer to travel in style and don’t shy away from spending.

Business link UAE assist you in the entire journey of setting up Limousine company in Dubai. From deciding on the model and number of cars to obtaining the necessary licenses and permits, to getting a team of well trained and experienced chauffeurs and setting up the office space the team of business link will be with you. Initially one should keep the investment small and scale up gradually with the rise in profits. Business link Dubai has been in this business for more than three decades now and has earned a good name for itself.

Business link Dubai will guide you in the customer care points also. They are quite well known in the Dubai circle and offer only the best and top models for the clients to commute. The service is meant to serve the tourism industry. The various hotels, resorts are covered by DTC service. Along with this the limousines are available 24/7 for the convenience of corporate clientele and government officials. They are linked to most of the major airlines and are available for airport pick and drop facility.

The following points have to be kept in mind while starting your own limousine business- 

• Convenient booking- the limousines should have an option of pre booking through app along with booking through email, official website and telephone conversation. All the charges including taxes, tolls, service charge should be made clear to the clients at the time of booking. The booking process should be fast, hassle free and reliable.

• Customer service- there should be availability of the customer care service 24/7. The helpline numbers should be answered promptly irrespective of the day or hour.

• Team of elite drivers- the entire fleet of limousines has to be driven by a team of professional drivers. They should be experts at their job with years of training and experience.

• Multiple modes of charging- the calculation of the fare can be made according to your choice. The option includes calculating fare based on time, zone and meter based, zone based, time based.

• Greetings- the drivers should always keep enough margins for flight delays and early arrivals and will greet you with a smile on your arrival. There will be complimentary snacks offered to you at the airport.

Thus if one follows the guidelines of business link UAE, success is bound to follow.

All You Want To Know About Business Setup in Dubai Mainland

The business friendly facilities and infrastructure offered by Dubai mainland is very popular. Several advantages are there of a highly developed economy that could be enjoyed by the business setup.

Utmost international standards are matched by the services and infrastructures that expedite quality, efficiency and services for business setup in Dubai Mainland.

 Some of the benefits for business setup in Dubai Mainland are: 

• Best quality options for residential  and office accommodation
• Advanced arrangement of transportation
• Top venues for international conference and exhibitions
• Simple recruitment process
• Reasonable workforce
• Open enterprise system
• Reliable utilities, power etc.

For relishing all these benefits, the task of company formation in Dubai has to be accomplished. This is challenging as well as time consuming. Business Link UAE is there as your reliable partner making this task hassle free and opportune for you.

Process of business setup in Mainland:

For company formation in Dubai Mainland, a UAE national has to be appointed as your business’s local sponsor. However, an agreement will be signed by the local sponsor of not having any profit sharing or involvement in operations of the company. Therefore, no active participation is there of the local agent in company’s profit sharing, operations and business management. Instead, their role will be of a figurehead characteristic at the time of required documentation and enlisting of legal settlements in Dubai.

 Necessities for business setup in Dubai Mainland:

For a business setup in Dubai Mainland, it is required to have the office address verified from the Dubai Municipality. This requirement varies on the basis of license type that is required by the investor. For the business setup in Dubai mainland, 6 steps are involved. These are:

• Selection of the business activity and approval of name for the same
• Selection of the service agent or the local partner
• Application for getting the preliminary approval for business setup in mainland
• Provision of MOA and notarization from court
• Getting the occupancy contact as well as space for office
• Final proposal for business setup in Dubai mainland

The skilled Dubai company formation consultant at Business Link UAE are there to provide best services and support to the clients for business setup in mainland.

All You Need to Know About Local Partner and Services Agent in Dubai

There has been a repeated confusion concerning the terms used in connection with the Local (Emirati) Sponsor, a mandatory requirement when establishing a business outside the free zones in the United Arab Emirates.

The mix-up merges two expressions into one (“sponsor”) without a proper distinction, which creates the impression that there is always an Emirati in full control of the business.

In fact the word “sponsor” is neither a job title or position nor a job description of the involved Emirati. However, it can be considered a status that a Local Partner or Local Service Agent gains after forming a company or after being appointed as a Service Agent for a certain entity.

Whether a Local Partner or a Local Service Agent is required depends on the kind of activity and the company structure that the entity will have.

In Dubai, trading and industrial activities require a Local Partner (who holds 51% of the company shares) and are usually structured as a Limited Liability Company (LLC).

However, a professional license in Dubai can’t use the LLC structure and can only be a civil company. In Dubai, all sorts of commercial activities can use the LLC structure.

The main difference between the entities under the CCL (Commercial Companies Law) and those under the Civil Code is that the activities which may be practiced in the CCL are of a commercial nature, whereas in the Civil Code they involve the use of intellectual faculties, acquired information or the use of skills.

Civil activities may not use the Limited Liability Company structure. Moreover, as mentioned earlier, the activities civil entities may be engaged in will be restricted to all those of a civil nature alone.
Professional companies may be 100% foreign owned. However, it is necessary to appoint a local Emirati Service Agent from the same Emirate.

Under the Civil Code, service or professional companies are de-fined as companies where two or more agree to be bound to carry out work and to be liable to third parties against payment of consideration, whether they share their work equally or unequally.

According to Dubai rules on licensing professionals and trader and in order to establish a business which practices services or professional activities, the business will be formed as a “Business Partnership”. Most of the services related to professional activities require a professional license.

A Local Service Agent has to be appointed while 100% of the company shares can be owned by foreigners. The Local Service Agent will deal with the government officials and Ministries on behalf of the company and facilitates the renewal process.

With a Dubai local Sponsor/Local Service Agent, it is common to arrange side agreements that redefine the conditions between the parties in favor of the actual owners/managers of the company.
For the last few years, there has been a discussion whether or not certain activities should be exempt from the requirement to have a Local Partner and a correspondent law is in the pipeline.