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  2. PRESENTATION SCHEMA Dubai as a Destination Registration of company Obtaining Investor Visa Opening Bank account Miscellaneous
  3. LEGENDS USED DED Department of Economic Development MOU Memorandum of Understanding PPP Purchasing Power Parity TRC Tax Residence certificate VAT Value Added Tax
  5. DUBAI AS A DESTINATION • The UAE is one of the richest countries in the world and boasts the 24th highest GDP per capita(nominal) and 9th highest GDP per capita(PPP). • It is extremely well known for its warm hospitality, rich cultural heritage and known for luxury shopping, ultramodern architecture • Dubai, with an area of 3,885 square kilometers, is the second largest emirate in the UAE • The population is composed of 15% native residents with remaining, primarily being from India (51%). • The country’s oil reserves, which are the 7th in the world, and its natural gas reserves are the 7th largest in the world.
  6. DUBAI AS A DESTINATION CONTINUED… • Inflation rate is -2.08% in 2020 • UAE unemployment rate for 2020 is 5.00%, a 2.72% increase from 2019
  7. WHY DUBAI IS INTERESTING TO START A BUSINESS Security • Very low crime rate and is among the safest country to business. • Doing business Ranking is 16th in the world and Doing business score is 80.9. Logistics and Infrastructure • World Class infrastructure • Improves the productivity of businesses • Focus on Technology • 3rd best spot for logistics and infrastructure Free Zones • There are 24 free industrial trade zones specific to each industry • Offers lots of advantages like, • Ease of incorporation • No import export taxes • Repatriation of profits etc
  8. WHY DUBAI IS INTERESTING TO START A BUSINESS CONTINUED…. Resources • Abundant resources • Top quality human resource, economic energy, world class infrastructure, communication technology and financial resources Trading Opportunity • Effect easy trade with Gulf, African and Asian countries • Very well located for cross border trade • Attractive destination for global investors Attractive Tax System • Tax free in both free zone and mainland • Oil business and foreign banks are only taxed and others are exempted.
  9. 2655.51 1411.78 2639.22 1232.12 886.22 662.98 Total ODI 2020-21(in $ millions) Singapore Mauritius USA Netherlands UK UAE • India has emerged as Dubai's second biggest trading partner after China with the overall volume touching 38.5 billion dirham in the first half of 2021. • According to official data trade with India grew 74.5% year-on-year to 67.1 billions dirham from 38.5 billion dirham in first half of 2020. • Dubai currently holds the 17th rank in the ease of doing business amongst 190 countries.
  10. LOCATION TO START A BUSINESS Location Free Land Economic areas where goods and services can be traded, usually at preferential tax and customs rates Main Land Geographical area which is permitted by the DED to all the private business entities businesses What is Main Land? • Located outside Free zone and their licenses are issued by DED or any related department • They are allowed to do business without restrictions whatsoever in the local market and outside UAE • Foreign Individual require a local sponsor before starting any venture.
  12. REGISTRATION PROCEDURE Chamber membership Getting business license Obtain Approval of relevant authorities Choose location of your business Obtain Initial Approval Trade Name Registration Determine Legal Form Select the business type
  13. SELECT BUSINESS TYPE The first step in this process is selecting the type of business/commercial activity that you want to do Business types are generally categorized into Commercial Professional and Industrial Based on the business type, legal form of the company and the parties associated with that could be identified
  14. DETERMINE LEGAL FORM OF THE COMPANY Joint Liability Company Can conduct only commercial and industrial activities Branch of a free zone company A branch of a free zone company can conduct commercial, industrial and professional businesses as long as the activity of the main company is authorized on the mainland. Branch of a local or GCC company A branch of a local or GCC company can conduct activities included on the main company license. Private Joint Stock Company A Private joint stock company can conduct only commercial and industrial activities. Branch of a foreign company A branch of a foreign company can conduct selected commercial and professional activities; same as what the head office conducts Limited Liability Company (LLC) Can conduct any industrial, commercial, professional and tourism business. Some professional business are not permitted, and others require additional approvals. Sole establishment A business owner can practice any industrial, commercial or professional business activities. An industrial or commercial type sole proprietorship is only permitted for UAE nationals or GCC nationals Public Joint Stock Company A public joint stock company can practice any industrial, commercial or professional business activities. Civil company Under a civil company, professional businesses in recognized fields such as medicine, law, engineering and accountancy are allowed.
  15. TRADE NAME REGISTRATION Must not use the word Dubai Must not conflict with Islam or Arabic Interest Should be translated into Arabic Should be indicative of business activity The trade name has to be approved by Department of economic development [DED] • Trade name application form is available at DED offices or online at • It does not take more than 24 hours and the company name can be reserved within a day. • The cost for obtaining a trade name varies, depending on the content and language of the name (approximately Dhs.1,070)
  16. OBTAINING INITIAL APPROVAL After determining the activity, legal form and registering the trade name, one has to obtain initial approval The documents required for initial approval generally varies upon the business and its structure It is only after seeking the initial approval that you can proceed for additional approvals of authorities other than the DEDs which is required in case of certain business/trading activities. Foreign investors must obtain the approval of the General Directorate of Residency and Foreigners' Affairs before getting the initial approval. The initial approval does not allow a person to practise the activity, unless a commercial licence is duly issued, as a last step of the process. Note
  17. CHOOSING A LOCATION FOR BUSINESS The applicants must determine a site to conduct their businesses and location must comply with the requirements set out by the DED in the respective emirate and the zoning regulations of the local municipalities. In Dubai, rent agreement (MoU) for the proposed location of the business is required and must be registered with Ejari for attestation. To be sure of the proposed location is within the city’s zoning regulations, one can call the Planning Department Office within the DED enquire regarding the proposed location. The minimum size of office required by the DED to issue a new trade licence (mandatory to trade in the country) is 200 sq. ft.
  18. OBTAINING APPROVAL FOR RELEVANT AUTHORITIES In some cases, approval of bodies other than DED’s are required Nature of activity Approval from Insurance Activity Ministry of Economy Transport Activity Ministry of Interior Legal Consultancies Ministry of Justice Sell firefighting equipment Civil Defence Applicants should seek the assistance of DED to know what other approvals are required. However, business activities that fall under the DED's control do not require any additional activity-specific licensing approvals
  19. GETTING YOUR BUSINESS LICENSE After completing above steps Submit all documents to DED Finalise due payments Eventually one has to become a member of the champer of commerce, before one can actually commence business activity
  21. INVESTOR VISA (UAE) The government of UAE ensures that it proactively creates policies to make it easier for investors to become UAE residents, to carry on with their ventures well. Through the investor visa program, investors and their families make an investment into the UAE economy, can enter and remain in the UAE. In 2018, the UAE announced its plan of providing investor visas of 5-10 years to wealthy businessmen and property investors. The minimum investment required to get an investor visa is 5 million dirhams for a 5- year visa and 10 million dirhams for a decade. There are 4 types of visas that a business person can apply for, depending upon his specific needs and Dubai Investor Visa Validity.
  22. INVESTOR VISA (UAE) Provides Temporary residence to holders It lasts for a max period of upto 3 years It provides authorization to live and work in UAE Visa Stamping • The final step of the process is to get visa stamped on passport Emirates ID • This ID will also be processed at the same time, which acts as an important document for investor Medical Checks • A normal medical procedure will be applied for further documentation Get the Visa • After making application, Visa will be mailed and one can travel to Dubai Application • Fill the visa application with the required documents and submit it. Process of getting Visa 100% Repatriation of profits No Corporate taxes It makes the process of opening bank account easy
  23. DOCUMENTS REQUIRED • Passport Copy (Colour) • 1 Photograph (white Background) • MOA Copy (For LLC) • Trade License Copy • Service agent contract copy (Professionally licensed co.) • Original emirates ID • Immigration establishment card copy • Partnership contract • Recent 3 months Bank statement • Typed application for medical check up • Copies of passport • Copies of Visa • 2 Photograph (White Background) • 1 Photograph • Typed form for Emirates ID • Original Visa • Original Medical Certificate • Medical insurance certificate • Original Passport • Immigration Establishment card • LLC agreement • License • Partner’s copy list Investor Visa Medical Checkup Visa Stamping
  25. OPENING BANK ACCOUNT IN DUBAI The documents which are required for opening a corporate bank account are as follows Original Certificate of registration, Memorandum and Articles of Association, and Trading license of the company. Attested copy of Board resolution empowering a company officer to open the bank account. Share certificate(s), Original Passport for shareholders and authorised signatories. Description on the planned activities of the company, financial projections for the next year, and even details of customers and suppliers.
  26. CONTINUED.. Documents disclosing the source of funds which would be invested into the company. Information on the business experience of company owners or their CV and proof of their residential address in India. Bank reference letter from shareholder and 6 month bank statement of company’s shareholder duly stamped by the notary. The account holders have to be present in person to sign all relevant application forms. The above mentioned documents are only standard requirements and the banks may even ask for additional documents Generally it takes around 1 to 2 weeks to open a bank account in Dubai
  28. TAX RESIDENCE CERTIFICATE(TRC) A certificate issued for eligible for natural and legal persons to take advantage of agreements of double taxation avoidance on income signed by the UAE. To know more about TRC please refer Natural person • Emirates ID copy • Passport copy • Residence copy • Source of Income • Official Bank statement • Immigration report of residency Legal person • Trade license copy • Authorized Signatory Passport copy • Authorized Signatory Emirates ID copy • Audited Financial statement • Official Bank statement • Certified tenancy copy • Memorandum of association or any relevant document Documents required to obtain TRC
  29. VAT IN DUBAI 1 VAT was introduced in UAE on 1st Jan 2018. 2 New source of income to UAE for providing high quality public services 3 Helps government move towards its vision of reducing dependence on oil and other hydrocarbons The current rate of VAT is 5%
  30. AUDIT OF ACCOUNTS The UAE Commercial Companies Law requires the businesses to maintain their financial records for a minimum period of 5 years and also states that the audit of the mainland companies is compulsory
  31. APPLYING FOR ESTABLISHMENT LABOUR CARD This card, issued by the Ministry of Labour, allows a company to hire staff, obtain work permits and apply for visas on behalf of its employees • Trade licence with partners list for LLC company. • Copy of MOA for LLC company • Passport and Jinsiyya (family book) or Resident ID of local sponsor (if applicable). • Passport of local service agent or UAE national sponsor. • Passport of partners for LLC company (copies) • Location map in Arabic (from Municipality) • DEWA bill • Attested power of attorney declaration • Dhs.2,000 plus typing fees • Ministry of Labour Tas’heel Centre • Visit a Tas’heel typing centre with documents to complete relevant application form, then get it translated to Arabic. • Application can also be submitted at Ministry of Labour. • After receiving the card you can apply for a company E- signature card (Dhs.300) Documents required Procedure An establishment labour card will be issued on the spot if approved; it is valid until cancellation of the trade licence
  32. APPLYING FOR ESTABLISHMENT IMMIGRATION CARD It allows a company to recruit staff from abroad and apply for foreign investors, partners and employment visas. • Partners list for LLC company • Copy of (MOA) for LLC company. • Passport and Jinsiyya (family book) of local sponsor (if applicable). • Passport of local service agent or UAE national sponsor. • Passport of partners for LLC company (copies). • Passport photo of sponsors and partners • Tenancy contract (copy) • Location map in Arabic • Owner’s degree certificates (notarised and legalised). • E-signature card copy of sponsor and authorised signatories (if any). • Dhs.2,000 application fee • Ministry of Labour Tas’heel Centre • Application submitted by owner, partner or public relations officer (PRO) with fee. • Complete relevant documents • Authorised person must sign the forms and seal with company stamp. Documents required Procedure It is valid for 3 years
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