Business Setup in UAE
Mainland Business Setup | Free Zones Business Setup | Offshore Company Formation
Business Setup in UAE
Mainland Business Setup
A Limited Liability Company is the most common form of a business entity currently formed in Dubai & UAE. Business setup in Dubai Mainland requires a business to be registered with the Department of Economic Development (DED). LLC Trade license in Dubai is the highly recommended type of company formation to start a business in the UAE. The infrastructure & facilities are of international standards that make it an ideal choice to form a company in UAE. Apart from that, other emirates in the UAE have different advantages in setting up a business.
Jitendra Business Consultants consists of experienced business setup consultants that are expert in providing a complete business setup solution for LLC company formation in Dubai and other emirates of the United Arab Emirates. We provide reliable UAE local sponsors for any type of mainland business setup in Dubai. We make custom business plans for our clients and provide quick and fast government approvals and PRO services.
Free Zones Business Setup
Free zone company formation in UAE enables the investor to own 100% ownership. Business setup in UAE free zones gives you a wide range of services depend upon the type of business activity you choose. Free zones in UAE located in important locations like international borders, international airports, international seaports to get the maximum advantages. Free zone authorities are the government bodies that register and issues trade licenses to non-resident companies in UAE free zones.
UAE free zones offer the best facilities to the license holders like the ease of one-window operation, dedicated offices and 100% ownership. There are about 44 free zones located in the United Arab Emirates.
Offshore Company Formation
An offshore company is also called a non-resident company with 100% foreign ownership, there are various benefits of registering an offshore company in Dubai & UAE. The main advantage of forming an offshore company is it doesn’t need a sponsor. Another advantage is that the identity of offshore company owners can be kept confidential unless there is suspicious business activity.
Forming an offshore company in UAE is the best option for those who want to expand business overseas and intend to serve the international market from UAE. They may also own real estate properties approved by authorities.
Three main jurisdictions offer offshore company formation in UAE that is Ras al Khaimah (RAK) offshore, Jebel Ali Free Zone (JAFZA) offshore & Ajman Offshore Free Zone. All three offer 100 % ownership and charge no income or corporate tax. Offshore Companies are permitted to open multi-currency accounts in the UAE and run business internationally. RAK offshore company formation is the most low cost as compare to JAFZA offshore company formation but JAFZA offshore companies are legally allowed to own property located in Dubai.
UAE VAT Compliance Checklist
UAE VAT Compliance Checklist
VAT Checklist
Here’s a checklist for businesses to stay VAT Compliant
Understand the VAT
The UAE government has offered different resources through its website and other ways for companies to become familiar with UAE VAT and its Rules. It is important to explore all the details available on the government website. They have added blogs, and other informational stuff to get acquainted with VAT and its laws to stay compliant and understand how and what affects your company. You can even reach out to experts to get more info on this. It is also vital to find out whether this is applicable to your products or no.
- Keep track of your Tax return period & due dates.
- Emirate-wise reporting of sales and other productions.
- The report separately import of services and goods announced through UAE customs.
- Combine details as per the format of the FTA.
- The net value of standard-rated supplies and output VAT amount must be informed after contemplating credit notes.
- Purchases or expenses on which input VAT is restricted should not be included in Input VAT Recovery.
VAT Registration
Companies with an annual turnover of Dh 375,000 are mainly obliged to register for VAT. There is an administrative penalty of Dh 20,000 for those businesses have not yet been registered. Before it’s too late, get your businesses registered for VAT now.
VAT provisions in Business Contracts
Given the fact that the VAT has become compulsory for businesses in the UAE, companies should include the VAT clause in their current and new agreements. If the agreement does not hold a VAT clause, the price in question will be deemed to be inclusive of VAT.
In accordance with the VAT law in the UAE, the companies are obliged to file quarterly returns. The return and tax payment must be made within 28 days after completion of the tax period.
Training your Staff
Your business may or may not come under VAT cover, but you should maintain appropriate accounting and professional documents in accordance with the VAT regulations. Companies are required to move the tax management & record keeping from manual to digital. This establishes the requirement for an expert group of accountants. If you’ve got that already, ensure your accountants are very well-trained in the theories and norms of the VAT. It’s important they know how to account for VAT compliance and file VAT returns.
Hiring a Professional
If your company still lacks an accounting expert or team, you might need to hire an accountancy firm or accountant who can process your business accounting records and file the proper VAT returns on time.
Update IT Software and Systems
Post the introduction of VAT, businesses must look for a trustworthy VAT management software that can process various VAT related tasks, such as filing returns, producing invoices, etc. Considering upgrading their IT software & systems should be on priority to stay VAT compliant.
VAT Management and Control
A most important part of implementing VAT in your business is going to be the proper and uninterrupted management of different VAT processes. It is critical that your organization has a professional who understands VAT laws and regulations and can take care of intricacies as and when required
You should be in continuous contact with your accounting team to learn the method and status of VAT reporting. Also, keep a close eye on any changes announced by the FTA concerning VAT.
Closing Note
It is important to understand that VAT is not levied on the revenue of a business, but only on transactions. The revenue limit is used only in establishing the VAT eligibility of a business.
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