BUSINESS SETUP IN DUBAI PRODUCTION CITY (DPC)/IMPZ
Dubai Production City(DPC)/Dubai International Media Production City (IMPZ)
DPC benefits from free zone privileges and regulations that facilitate the ease of business and operations, a unique and vibrant community supporting and fostering the growth of media production
Types of Company Formation in Dubai Production City
Freezone Limited Liability Company (FZ-LLC)
A FZ-LLC is formed as a separate legal entity, with shareholders as individuals and/or Corporates. The minimum capital requirement for incorporation depends on business activity.
- FZ-LLC WITH NATURAL PERSON AS SHAREHOLDER
- FZ-LLC WITH CORPORATE PERSON AS SHAREHOLDER
- FZ-LLC WITH NATURAL AND CORPORATE PERSON AS SHAREHOLDER
A branch is not a legal entity separate from its parent. It is considered a place of business that forms a legally dependent part of the parent company. It conducts all or some of the operations inherent in the parent’s business Share capital is not required.
The Freelance permit offers the ability to operate as a freelance professional. The permit identifies you as a sole practitioner. It enables you to conduct your business in your birth name as opposed to a brand name.
Value Added Tax (VAT):
Value Added Tax (VAT) has been introduced across the UAE on 1 January 2018 at a standard rate of 5%.
Who should register for VAT?
A business whether situated in designated zone or non-designated zone or outside free zone should register for VAT if the taxable supplies and imports exceed the mandatory registration threshold of AED 375,000 within preceding 12 months or it is anticipated that the total value of taxable supplies exceed
AED 375,000 in the next thirty 30 days. Upon registration, a tax registration number (TRN) would be issued to business by the Federal Tax Authority.
What is a designated zone?
A Designated zone is a specified fenced geographical area having security measures and customs controls in place to monitor entry and exit of individuals and the movement of goods to and from the area. Following free zones are declared as designated zones.
a. Free Trade Zone of Khalifa Port
b. Abu Dhabi Airport Free Zone
c. Khalifa Industrial Zone
d. Jebel Ali Free Zone (North-South)
e. Dubai Cars and Automative Zone (DUCAMZ)
f. Dubai Textile City
g. Free Zone Area in Al Quoz
h. Free Zone Area in Al Qusais
i. Dubai Aviation City
j. Dubai Airport Free Zone
k. Hamriyah Free Zone
l. Sharjah Airport International Free Zone
m. Ajman Free Zone
n. Umm Al Quwain Free Trade Zone in Ahmed Bin Rashid Port
o. Umm Al Quwain Free Trade Zone on Sheikh Mohammed Bin Zayed Road
p. RAK Free Trade Zone
q. RAK Maritime City Free Zone
r. RAK Airport Free Zone
s. Fujairah Free Zone
t. FOIZ (Fujairah Oil Industry Zone)
What is a non-designated zone?
Any free zone which is not declared as designated zone is a non-designated zone. In other words a non – designated zone is any geographical area within UAE which does not have any security measures and custom controls in place to monitor entry and exit of goods and individuals. Eg. DMCC, Dubai Media city, DIFC and Dubai Internet city.
What transactions are subject to VAT within Designated zones?
a) Goods transferred between designated zones shall not be subject to VAT. However goods supplied by an entity in the designated zone to entities outside the designated zone are subject to 5% VAT.
b) Services provided by an entity to other entities inside the designated zone or outside the designated
zone are subject to 5% VAT.
c) Professional fees for services are subject to VAT @ 5%.
What government/free zone fees (License/Visa/rent) are subject to VAT?
In case of designated zones the trade license fees, visa fees, lease rentals will not be subject to VAT. And in case of non-designated zones the trade license fees and visa fees are not subject to vat however rent is subject to 5% VAT.
Need for Audit in Dubai Production City
An audit of the company will not only help provide the information about the current scenario of the company but will also help to reduce any wrongdoings. Audit services will improve the efficiency and profitability of the company in the free zone. The company will be better able to utilize its resources and will be more productive.
In Dubai Production City, it is necessary for a company which has been registered in the free zone to provide its audited financial report annually. It should also be kept in mind that only an auditor or auditing firm which has been approved by the management of the Dubai Studio City free zone is allowed to conduct any audit in the region. Thus it is recommended that you avail the services of an approved auditor or an approved auditing firm.
If you want to conduct an audit of your company which is established in the free zone, it is recommended that you avail the services which are provided by ALYA AUDITORS . ALYA AUDITORS is an accounting and auditing firm which is approved by the management of the Dubai Studio City. This firm aims to solve all the financial problems of our company by understanding the working of the company and then providing a customized solution. For details on the services provided by ALYA AUDITORS, do contact us – we’ll be happy to help!
For More Details Contact Us @ Tel : +971 4 876 9377, Mob: +971 52 975 0690, +971 52 475 4007