Are you thinking about settling in the UAE as an expat?
UAE has become a popular choice for investment as the country has a stable political system, strong capital flow, business-friendly taxation, and liberal trade restrictions. The government offers long-term visas for investment, therefore, business is booming in the UAE. Here are a few things that one should know before starting a business. One must know the legal structures for businesses in the UAE:
- Sole proprietorship
- Civil company
- Limited Liability company
- Foreign company branch
- Free zone company
Registering your business in the UAE
In order to register the business, the first step is choosing a trading name. A free zone or department of economic development can tell if the name is acceptable or not. UAE law states that a name should not violate public morals and it shouldn’t be registered before. Once the name is finalized, the next step is to apply for the business license. There are four types of the license granted:
Registration and licensing are done at the same time. In order to register the business, one has to apply to the relevant local authority and provide the following documents like Application form, Business plan, Passport copies of directors/shareholders, Specimen signature of directors/shareholders, Letter of intent, Licensing process in incomplete without Board resolution appointing a company manager, Power of attorney given to director/manager, Memorandum and articles of association, Specimen signature of manager/director, Photo of manager/director, Share capital information One also needs to register the business online with the federal tax authority.
Administrating your Business in the UAE
In order to have a business in the UAE, one must keep the documents, records of the company up-to-date aligned with the UAE laws. Documents like annual accounts, general ledgers, credit notes, VAT ledgers help in offering an accurate financial overview of the company. Zyla accountants can help small businesses /startups in managing their accounts and solve all the business problems related to accounting and VAT.
The government offers several schemes for financial support for starting a business in the UAE. Although these are only available to Emiratis, the company’s local partners or shareholders can apply for the schemes. Most of the programs come under the umbrella of the Khalifa Fund for Enterprise Development. Similarly, the Dubai SME offers financing as well as advisory and incubatory services for small and medium enterprises. In addition, the Intelaq program also offers financial support for start-ups, along with legal, marketing, and technical advice.
Taxation for business in the UAE
The UAE has two types of taxes on companies, excise tax, and VAT. excise tax is levied on carbonated drinks, energy drinks, and tobacco products. This tax is also applied to products that are harmful to the human body. One can register this online at the FTA website.
VAT is applied to all tax-registered businesses in the UAE mainland and free zones. If the company’s taxable supplies and imports are more than AED 375000. The company has to register for this. One must submit a return within 28 days of every tax period. Two types of tax periods are there for VAT. businesses below AED 150 million have to file returns quarterly and businesses operating above that level have to file every month.
Zyla Accountants understand that managing start-ups and growing businesses can be challenging. Therefore, they can help you in delivering a personalized, reliable, hands-on accountancy service that makes a real difference to your business.