UAE VAT refund scheme an opportunity for business to increase international travel spend

VAT Refund scheme for tourists in UAE

Vat refund UAE

The UAE Federal Tax Authority presented a VAT of 5% in January 2018, and will dispatch Tax Free Shopping in Q4 2018. Tax Exempt shopping is the acquiring of merchandise in the UAE which will be traded (subject to terms and conditions) whereby customers can acquire a discount on the VAT or tourist vat refund uae on these things, giving that they approve their buys as indicated by nearby principles. Dubai has for quite some time been a well-known shopping goal for universal voyagers. Between the twice-yearly shopping celebrations and the multiplication of universal brand name stores, there is no lack of approaches to burn through cash on glossy things.

The presentation of a VAT discount plan ought to go far to keeping the city at the highest point of many travelers’ shopping records. Same time business can take opportunity by registering themselves under VAT refund scheme to increase their international travel spend.

Who is eligible to get VAT refund UAE?

“Overseas Tourist” implies any natural Person who isn’t resident in any of the Implementing States or in other words all non-UAE residents above 18 years old and who isn’t a team part on a flight or on the other hand air ship leaving an Implementing State and the minimum purchase amount is 250 AED.
What are the conditions to get VAT refund?
• Products ought to be purchased by the tourist in the UAE.
• Visitor visiting the UAE must exit UAE inside 90 days from the date of shopping alongside the things purchased.
• With the end goal to get the VAT Refund, visitors ought to make sure only to purchase from enlisted organizations for tourist refund scheme conspire in the UAE.

What all should be done for vat refund for tourists in Dubai?

1. The visitor takes merchandise and labeled receipt from registered buisness under VAT refund scheme to the airplane terminal, seaport or outskirt crossing
2. The tourist goes to a Validation point: – For airplane terminals: Before checking in and going through security
3. When approved, the visitor picks a refund option (money or card discount)
4. VAT refund will be process by the authorized agency.

What amount does the traveler get back?

The tourist will get 85% of the aggregate VAT sum paid, short an administrator charge of 4.80 dirhams per Tax Free form.

What Businesses need to do?

Businesses must be enrolled for VAT with the FTA to give a Tax Registration Number (TRN), be fully informed regarding their VAT returns and settlement of payable expense, be a vender of products qualified to get charge discounts as controlled by the FTA, present their request to join the scheme to the authorized agency and be liable to a credit check. After successful registration business need to report amount paid to the tourists under the Tax Refunds Scheme for Tourists in their regular VAT returns.

What goods are eligible to receive tax refunds?

All taxable goods except for:
1. Services.
2. Goods that are not accompanied by the Overseas Tourist at the time of leaving UAE.
3. Food and drinks intended for immediate consumption.
4. Motor vehicles, boats and aircraft.

UAE VAT Law on Tourist Scheme. {Source ~ Federal Decree-Law No (8) of 2017 on Value Added Tax}
As per the Article 68 Clause 2 of Executive Regulations of the Federal Decree-Law No (8) of 2017 on Value Added Tax following conditions shall apply to the Tax Refunds Scheme for Tourists:
1. The Goods which are subject to the Tax Refunds for Tourists Scheme must be supplied to an overseas tourist who is in the State during the purchase of the Goods from the supplier.
2. At the Date of Supply, the overseas tourist intends to depart from the State within 90 days from that date, accompanied by the Goods.
3. The relevant Goods are exported by the overseas tourist to a place outside the Implementing States within 3 months from the Date of Supply, subject to such conditions and verifications as may be imposed by the Authority.
4. The phrase “overseas tourist” means any natural Person who is not resident in any of the Implementing States and who is not a crew member on a flight or aircraft leaving an Implementing State.
5. The Authority may publish a list of Goods that shall not be subject to Tax Refunds for Tourists Scheme.

Alya Al Marzooqi Auditing Chartered Accountants are the team of Certified Chartered Accountants offering reliable and cost effective accounting solutions to business all over the UAE including Dubai, Abu Dhabi, Sharjah, Ajman, Ras Al Khaimah, Um al Quwain and Fujairah. Our packages are affordable and suitable to all growing business, startups and stabled business.
We have quick solution for all your accounting, bookkeeping and taxation related needs, our expert consultants can help you to solve all your basic to extreme level concerns regarding VAT, accounting and bookkeeping.

Alya can help you solve all your VAT related queries.For more details please contact us on Tel: +971 4 876 9377, Mob: +971 52 975 0690, +971 52 475 4007, email us at : audit@alyaauditors.com

How Accounting can provide a huge help to Amazon Sellers in the UAE ?

accounting-for-ecommerce- in- uae-dubai

How Accounting can provide a huge help to Amazon Sellers in the UAE ?

With the advent of e-commerce and the majority of people conducting their shopping from the comfort of their own homes, becoming an Amazon seller is a very good and viable alternative. The Covid-19 epidemic has demonstrated that purchasing from home is a quick and straightforward approach. There is no need to be concerned about transaction security because online security has considerably improved.

As your Amazon business grows, you’ll have more and more responsibilities to consider. This is when the demand for a specialist’s accounting services arises for the businessman. These experts will assist Amazon sellers in making well-informed decisions regarding the products they offer.

Here are some examples of how outsourcing accounting services might benefit an Amazon seller:

1. Data Organisation

One of the most important benefits of accounting is that it aids in the organization of your company’s data, making it easier for management to access it. With this information, managers will be able to forecast the company’s future. In addition, management will be able to track the company’s success and concentrate on the parts of the firm that aren’t working well.

2. Focus on Task at Hand

When accounting services are outsourced, the seller is relieved of the burden of accounting operations. This means that the vendor will be able to concentrate on selling the product while also thinking about the many areas.

3. Business Growth

The accounting process will provide the business with a plan, which will provide the company with a general sense of the course it will take. Outsourcing accounting will also give business owners a third-party perspective on what they can do to enhance sales. This will provide vendors with a better understanding of how to offer their products more effectively.

4. Storing Business Records

Keeping track of and analyzing all of the company’s transactions might be quite beneficial in the future. This information can be utilized to secure finance or bank loans, as well as to attract customers and possible investors and for tax considerations. A company’s financial audits can be aided by having a record. As a result, keeping track of your business’s records is a good idea, and it’s something that every company should do.

5. Management of Payables and Receivables

If the company’s payables grow too large or it doesn’t receive its outstanding receivables, it will lose money and finally have to cease down. Keeping track of all receivables and payables is the best approach to deal with such a problem. The balance sheet analysis will assist us in locating this information, and we will be able to take appropriate action against such individuals as a result.

6. Selling off the Business

Businesses frequently hit their peak, and additional growth is comparably low over time, or the business owner wants to try his hand at something new. The business must shut down in this instance, and all profits (if any) must be dispersed among the investors and stockholders. If the business owner intends to liquidate the company, it is in his or her best interests, to begin with, the accounting of the company’s records.

These are some of the advantages that outsourcing accounting can bring to persons interested in becoming Amazon sellers. People should use accounting services from reputable organizations to achieve better results. These accountants will not only understand your firm and provide solutions that are tailored to it, but they will also assist you in reaching your full potential.

If you’re looking for Outsourced Accounting services in the United Arab Emirates, Alya Auditors is the company to call. We will present you with the finest available perks to help you expand your company. Simply notify us if you have any questions about the many services we provide. We will gladly help you with your business endeavors.

When should you outsource the accounting activities of your company?

outsourcing-accounting-services

When should you outsource the accounting activities of your company?

Do you struggle to keep up with your company’s accounting records late at night and on weekends? Or, even worse, does this time conflict with the time you spend running your business?

Are you having trouble determining your company’s profitability or knowing your financial requirements for the following 60, 90, or 365 days?

Do you have a feeling your margins could be better, but you’re not sure how to assess them when reviewing your financial statements?

Would getting some help forecasting your company’s operations over the next few years help you set priorities with your employees?

If you responded yes to even one of these questions, you require external assistance.

Many business owners and executives feel the same way, and there are resources available to help you obtain the help you need to grow your company.

The first step is to recognize that, while operations are the most important component of any firm, reliable financial data is critical for making critical business decisions. You can take your firm to the next level if you have visibility into cash flow and know where your margins may be enhanced.

The next step is to determine whether hiring a full-time accounting resource to straighten out your company’s finances makes sense in terms of cost and skill.

Is there enough work for a full-time accountant?

A 40-hour-per-week accountant would be insufficient for many businesses to execute the basic accounting operations they require, such as the monthly close process, sending invoices, recording and paying bills, conducting payroll, and so on.

Is there too much work for your current full-time resource?

Are you asking them to accomplish tasks that are either above or beyond their skill level? This happens all the time in any role in a developing company. This is a lose-lose situation for all parties concerned, and it may result in employee turnover.

Is there too much work for your current full-time resource?

Are you asking them to accomplish tasks that are either above or beyond their skill level? This happens all the time in any role in a developing company. This is a lose-lose situation for all parties concerned, and it may result in employee turnover.

What level of experience will they need to have – CFO, controller, staff accountant?

Will you hire a CFO and then overpay them to handle basic staff-level accounting if you can’t afford to cover the costs of more than one accounting resource? You might also engage a staff accountant and give them CFO responsibilities; but, both of these choices will cost your firm a lot of money and will result in poor decision-making.

If your company needs the resources of a complete accounting team but is not in a position to support the costs and management time of that entire, full-time team, then outsourcing your accounting functions is a very viable, flexible, and turn-key option for your business.

Signature Analytics, for example, provides you with flexibility in terms of the number of hours of service you receive, a better degree of experience through monitoring by more senior-level employees, and efficient service from experienced accountants (staff accountants through CFO level expertise). Outsourced accounting firms’ accounting teams operate with a variety of clients, so they’ve developed time-saving techniques that allow them to finish difficult jobs in far less time than a traditional bookkeeper.

There are several other situations in which hiring an outsourced accounting company to handle your financial information makes sense for your business, in addition to acting as the financial arm of your business by providing the resources of a highly experienced accounting department on an outsourced basis:

Preparing for a financial statement or audit review

Many business owners believe that a financial statement audit is a good thing for their company and that it gives their investors confidence in the financial data; however, most are unaware of the resource drain that an audit can cause due to a large number of requests for supporting documents and the technical accounting expertise that must be applied to the audit. Audit firms are unable to help with the accounting processes of the companies they audit due to independence requirements and must rely on management to identify suitable accounting procedures. Due to the inefficiencies, these difficulties frequently result in high audit firm overrun fees, which can be exceedingly costly for a company.

Using an outsourced accounting firm can give management the peace of mind that they have a team of accounting specialists – the majority of whom have past auditing expertise – who know what audit firms are looking for and how to deliver that information on time.

Investors requesting financial projections

Investors want to see what their money will produce in the future so they can help with financial and operational decisions. However, many business owners lack the expertise to prepare financial projections, so they may provide information that isn’t detailed enough for the purpose, or they may overlook significant costs that must be considered. Outsourced accounting services that assist with cash flow management and predictions have CFO-level professionals that are adept in quickly comprehending a business operation and translating that information into the organization’s future potential results.

Missing out on potential tax savings

When a tax preparer receives your financial information, it is possible that they will not explore all of your accounts for tax deductions. Tax preparers may be unaware of transactions that have been classified as improper accounts and hence fail to evaluate easy deductions. Meals and entertainment expenses, for example, are frequently deductible expenses, however, some transactions may be recorded in office expense categories, supplies, or miscellaneous. The deduction will be unreported unless the tax preparer is aware that such expenses may be wrongly classified, resulting in greater income tax. An outsourced accounting firm can organize accounting data and collaborate directly with tax experts to uncover as many tax savings as feasible.

Looking for capital investment from financial institutions

Perhaps you will need funds shortly and will approach various banking institutions. Financial information with evident errors, discrepancies, or a lack of organization may have a negative influence on your capacity to obtain financing, as lenders may find it difficult to truly grasp the performance of the firm without transparent financial data. When you use an outsourced accounting firm, you can rest assured that your financial statements will be accurate and timely. They will also give you a high-level financial resource who can aid you in creating professional assessments of financial data, making the loan proposal process less difficult. These statements can be used as a resource in interactions with individuals giving money to ensure that all aspects of the business’s operations are understood.

VAT applicable on Directorial Services in the UAE

VAT --UAE

VAT applicable on Directorial Services

A director is required if a Limited Liability Company (LLC) is created in the United Arab Emirates. This director is paid a set fee for the services he performs regularly. This remuneration for his managerial services is subject to a 5% Value Added Tax (VAT) rate. Management needs to guarantee that the director’s salary takes into account the VAT that applies to him, as well as that the business follows all of the jurisdiction’s norms and regulations.

We shall discuss the VAT rules that apply to the directors of a Limited Liability Company in the United Arab Emirates in this article.

Conditions for Value Added Tax Applicability (VAT)

There are a few requirements that must be met before the salary of an LLC’s director can be processed for VAT purposes. The following are the conditions:

1. As the company’s director, a person or entity should give services to the company. He or she can be an executive or non-executive, and these services should be provided on a regular and independent basis. This person can be a member of a single board of directors or numerous boards of directors.
2. If the entire value of all the services given by the director exceeds the registration benchmark, which is AED 375000 yearly, the director’s services are subject to VAT.

If a director meets any of the aforementioned criteria, he or she should be subject to VAT. To have a better grasp of the situation, the management should engage the services of a financial firm that will consult with the company’s management and provide a deeper understanding of the current situation.

When is it appropriate for a director to register for VAT?

If the fees charged by the firm on an annual basis exceed the mandatory benchmark of AED 375,000, a person serving as a director of the company should register for Value Added Tax. This restriction does not apply to a person functioning as a director of a limited liability company (LLC) who is covered by the business’s employment visa. The employment visa will create an employer-employee relationship between the corporation and the entity, which will not be considered taxable.

How to determine Place of supply for Director Services

o comprehend the location of supply of the services given by a director, several conditions must be met by the director. The following are the conditions:

1. Value Added Tax (VAT) is only applied to a director’s salary when the services are provided in the United Arab Emirates.
2. According to UAE VAT guidelines, the supplier’s domicile would be considered the site where the director’s services are supplied.
3. In many circumstances, the company receiving the services of a director is based in another GCC country and is VAT registered there. In such a circumstance, the director’s place of business will be treated as the director’s place of residence.
4. If the receiver company of the services is located in the UAE but the director does not, the place of provision of the services is regarded to be the UAE.

The application of Value Added Tax to the director’s salary has a significant impact on a company’s profitability. It is also vital for the firm to guarantee that all of the jurisdiction’s rules and regulations are adhered to avoid any problems shortly. This is why a company must seek financial consulting businesses’ aid, as they will be able to assess the existing state of the company and provide appropriate solutions.

TRC- Tax Residency Certificate in the UAE

Taxation-Of-Cross-Border-MA-Saudi-Arabia-

TRC- Tax Residency Certificate in the UAE

The UAE has gone from being a country entirely reliant on oil revenue to a country with a broad economy that attracts investment from all over the world in a relatively short amount of time.

The Emirates of Dubai and Abu Dhabi, in particular, have established themselves as global financial hubs that embrace cutting-edge technology, as well as attractive tourist destinations with world-famous landmarks and high-end hotels.

The UAE’s favorable tax climate is one of the many advantages that lure firms to the country. The great majority of enterprises that have their headquarters in the UAE are tax-free. Furthermore, it has signed double taxation treaties with several trading partners to ensure that the same taxpayer is not taxed twice in two different nations.

The UAE currently has 135 double taxation agreements in place or the works. This promotes open trade and investment from other countries while also safeguarding member countries from double taxation on products, capital, and services exchanged.

Companies or individuals must have a Tax Domicile Certificate (TDC), also known as a Tax Residency Certificate, to take advantage of the UAE’s double taxation avoidance agreements (TRC).

What is a Tax Residency Certificate?

A Tax Residency Certificate is a document provided by the UAE Ministry of Finance (MoF) to a firm operating in the country to establish tax residency and take advantage of double taxation treaties.

Any company operating on the mainland or in a Freezone that has been active in the country for at least a year is eligible for a Tax Residency Certificate. Offshore corporations are not eligible and must instead get a tax exemption certificate rather than a Tax Residency Certificate.

Individuals who have lived in the UAE for at least 180 days and seek to establish tax residency in the country can apply for a Tax Residency Certificate. This is especially advantageous for people whose home countries do not have a double taxation treaty with the UAE. To apply, persons must have a valid UAE resident visa that is valid for more than 180 days

What are the requirements to obtain the Tax Residency Certificate?

Individuals must meet different standards than corporations to acquire a Tax Residency Certificate. In both circumstances, the steps are outlined below:

Requirements for an individual to obtain the Tax Residency Certificate in the UAE

The following documents are required:

  • Passport copy and valid visa copy issued at least 180 days earlier
  • Emirates ID copy
  • 6 months of personal UAE bank statements, stamped by the bank
  • Proof of income in UAE – e.g. employment agreement, share certificate, salary certificate
  • A report from the General Directorate of Residency and Foreign Affairs (GDRFA), showing evidence of all entries into and exits from the UAE
  • A copy of the certified tenancy contract or title deed, valid for at least three months before the application

The Tax Residency Certificate application fees are AED 2000, payable to the Ministry of Finance (MoF). These fees must be paid through UAE e-Dirham Card.

What is the process for obtaining the Tax Residency Certificate?

  1. Create an account on the payable to the Ministry of Finance (MoF) portal
  2. Complete the application form
  3. Attach the required documents in PDF or JPEG format
  4. Your application and attached documents will be verified and if they meet the criteria, you’ll receive an email confirmation and be asked to pay the remaining fees via the system
  5. After payment confirmation, you’ll receive the certificate via an express courier

How long does it take to obtain the UAE Tax Residency Certificate?

  1. The pre-approval process with the Ministry of Finance (MoF) normally takes 4 to 5 working days if all essential documents are in order. The MoF can take up to 5 working days to provide the tax residency certificate after pre-approval and confirmation that all documents are correct.

    The validity duration of the Tax Residency Certificate / Tax Domicile Certificate is one year, and it can be renewed each year, subject to the resubmission and renewal process.

What are the benefits of obtaining a UAE Tax Residency Certificate?

When establishing a firm in Dubai or Abu Dhabi, investors in the UAE gain access to international markets. Being a Tax Resident in the UAE and acquiring the UAE Tax Residency Certificate has the added benefit of avoiding double taxation and receiving tax incentives. Individuals and businesses can apply for separate UAE Tax Residency Certificates, which allow income to be covered on both an individual and corporate basis.

Effective tax planning requires an overall view of your business structure and personal circumstances, and we recommend that you seek professional tax advice, as well as accounting and finance support, to ensure that your corporate structure and personal situation comply with tax rules, so you can get the most out of your UAE tax residency.

KSA Cabinet approves Double Tax Treaty with the UAE

The DTT between the Kingdom of Saudi Arabia and the United Arab Emirates is the first between two GCC member states, and it is intended to allow more cross-border trade and investment between the two countries. The DTT mostly follows the OECD Model Tax Convention from 2014.

The DTT includes a description of the types and levels of activity that would generate a taxable presence in the other nation, as well as certain significant modifications to the taxation of payments (e.g. interest, royalties, service fees) between the countries. This may lessen taxation and compliance obligations while also providing better assurance to taxpayers.

Individuals and businesses residing in the Kingdom of Saudi Arabia and the United Arab Emirates have access to the DTT. Individuals from the UAE and Saudi Arabia do not need to stay in the UAE or Saudi Arabia for DTT purposes.

A summary of the key provisions of the DTT is listed below:

  • An exemption from withholding tax (“WHT”) on interest and service fees
  • A reduced WHT rate of 10% on royalty payments
  • A maximum 5% WHT on dividends (same as the domestic dividend WHT rate in KSA)
  • No relief from non-resident taxation on the transfer of shares or immovable property
  • Foreign national residents of the UAE or KSA may also benefit from the DTT
  • Sovereign Wealth Funds and certain entities that are exempt from tax expressly qualify for DTT benefits.

What is Audit Trail?

Auditors-Chartered Accountants in the UAE

What is Audit Trail?

When an external auditor asks a question to better understand a certain accounting transaction, most business owners become anxious. You may also have difficulty making sensible business judgments as a result of erroneous financial data, but a proper audit log or audit trail would have prevented such unforeseen events.

An audit trail is a collection of documents that may be used to verify the validity of transactions recorded in your accounting books. The audit trail is the accounting documentation you preserve for recording your company’s transactions. An audit trail allows you to trace a transaction back to its source. An audit trail, whether electronic or physical, can also help you comprehend your company’s financial history and current situation. You can assure adequate accounting trail management by choosing the top accounting services in Dubai.

What Is an Audit Trail and What Does It Contain?

An audit trail is a record of business events such as the creation of an order, the delivery of cargo, the filing of an insurance claim, and so on. Each record would include details such as the nature of the event, who was responsible for its development, and the day and time it took place. Businesses utilize audit trails to check whether or not an accounting entry is correct. Audit trails are extensively used in the healthcare, finance, accounting, and information technology industries.

The following are some examples of documentation you should retain as part of your audit trail:

Purchase orders

Business invoices

Written estimates

Correspondence from transactions 

Why is an Audit Trail Important for Your Company?

Because of the following reasons, having a good audit trail is critical:

1. Fraud detection and prevention

An audit trail aids in the detection and prevention of fraud within the company. You can confirm certain accounting transactions using a trail of papers, allowing you to establish the transactions are legitimate. Ensure that all payments are accompanied by supporting papers such as purchase orders and invoices that have been approved.

Your audit trail should also include a financial reconciliation. An audit trail not only aids in the detection of fraud but also in the prevention of it. Employees will be less likely to conduct fraud if they know you are watching and recording their operations using an audit trail.

2. Makes Auditing Less Stressful

Aside from assisting you in tracking accounting transactions, an audit trail is quite useful to auditors during financial audits. The audit trail can be used by auditors to locate and verify the company’s activity. The audit process will go well for everyone involved if your organization has a good audit trail.

Annual audits are typically regarded as onerous for business owners and managers. The presence of a well-prepared audit trail, on the other hand, makes it less stressful for you. Consider the following scenario: the auditors have discovered an unusual transaction in the account books and have inquired about its veracity. Without an audit trail, validating the transaction would be more difficult. However, if an audit trail exists, auditors can evaluate supporting paperwork such as invoices to validate the transaction. Accounting firms in Dubai can aid you in correctly keeping track of your audit trail.

3. Improves the accuracy of records

An audit trail is a reliable approach for dealing with the problems that come with erroneous financial data. Business owners, investors, and lenders can make better decisions with accurate financial data. An audit trail gives you a comprehensive picture of your company’s finances and guarantees that your books are up to date. With the guidance of the best accounting firms in Dubai, create a thorough audit trail.

4. Aids in Securing Loans with Ease

Banks in the UAE will ask for your business plans and financial accounts if you are searching for a loan for your company. To authenticate the information in the financial accounts, the banks would seek verification of revenue and expenses. An audit trail, which includes rigorous record-keeping, will assist you in providing enough financial information to lenders.

Some banks may even request a financial statement that has been audited. Maintaining accurate records of all transactions speeds up the process and lowers the cost of auditing in Dubai. Maintaining a proper audit trail would benefit from the support of the best accounting firms in Dubai.

5. Reduces HR & Payroll Challenges

Payroll and human resource records are essential to the audit trail in general. Companies are required to keep records of employee employment, termination, compensation, and eligibility to work in the UAE. The labor department will impose penalties if certain mandatory requirements are not followed.

Employee disagreements are typical in a global market like Dubai. Dealing with staff conflicts will take up a lot of your time and resources. You can avoid such arguments with the use of an audit trail. Keeping track of all time, cards, and other employee documents is a good method to reduce the dangers associated with such conflicts.

What can we do to assist you?

To check whether a transaction is accurate or not, businesses must properly document each accounting transaction using traditional techniques or computerized forms. Purchase orders, company invoices, written estimates, and transaction communication are among the most frequent documents that make up the audit trail. Accounting firms in Dubai, such as Alya Auditors, can help you create a strong audit trail for your business. 

We have highly qualified Chartered Accountants in Dubai, UAE who can diagnose and provide insights into issues with your accounting department. We can manage your books of accounts and produce professional financial reports to assist you in obtaining loans and investments. You can also rest assured that your company’s financial health is in good hands if you use our top accounting services in Dubai.

6 Compelling Reasons to Establish a Firm on the Dubai Mainland

dubai mainland company formation

6 Compelling Reasons to Establish a Firm on the Dubai Mainland

If you establish your firm on the Dubai mainland, it will be easier to expand and remain flexible.

If you desire full freedom and flexibility for your business, forming a Dubai mainland company under the Dubai Department of Economic Development (DED) offers significant advantages.

If you’re an entrepreneur or someone in charge of starting a business in Dubai, deciding where to set up shop is critical.

Making the right selection can have a huge impact on the dynamics of your organization and its future success.

The following are the six major advantages of establishing a business on the Dubai mainland:

1. Trade across Dubai and the UAE is unrestricted

You have no limits on who you can trade with or where you can trade in Dubai if you register as a Dubai mainland firm.

Setting up shop on the mainland allows you to plan for any form of trade without having to worry about violating your trade permission in Dubai or elsewhere in the UAE.

When it comes to forming a mainland company in Dubai, there are various legal requirements, including the requirement that it be sponsored by a Dubai national. You may keep management and financial control of your firm by seeking professional help from a reliable business setup provider.

2. The ability to trade internationally and grow your business

Registration on the mainland of Dubai allows your company the ability to trade worldwide, which is critical for many companies in today’s increasingly linked globe.

It is also a good idea to consider your company’s future. Do you intend to expand internationally? Do you desire the freedom to enter crucial international markets?

Businesses with the ability to adapt in today’s fast-changing world are favored. Assume you have a product or service that has become popular in a specific country. In such a circumstance, you must organize the logistics to quickly infiltrate it.

Fundamentally, having a mainland Dubai license means having the independence and flexibility to expand and operate your company.

3. The opportunities to expand your business and team

Every company wants to expand and prosper, and a Dubai mainland registration allows you to accomplish just that.

If you choose the mainland route, you will be able to apply for an unlimited number of visas. It’s worth noting that when you apply for additional visas, you’ll require more warehouse or office space, which is normally 100 square feet for each visa. If you employ a large number of remote workers who do not require workspace, the requirement to rent additional office space is generally negotiable with the Dubai DED.

Having a company registered on the Dubai mainland also allows you to expand your operations to other parts of Dubai and the UAE. Consider obtaining a Dubai DED license if branch expansion is a priority for your company.

4. The ability to expand your product line

Dubai’s expanding smart city infrastructure is already propelling firms in new directions, and the ability to diversify will become more valuable as the country approaches and beyond 2020.

Choosing a mainland Dubai location gives your company substantially more room to grow.

When compared to your free zone competitors, obtaining a Dubai mainland license implies the administrative process is smoother, faster, and less restricted.

5. Ability to work with the governments of the UAE and the Gulf Cooperation Council

Another advantage of registering on the mainland in Dubai is that you will be able to compete for lucrative government contracts.

If your startup is going to provide services that are in line with government projects, you may be in a strong position. Government contract work in the UAE is worth billions of dollars each year. If your organization earns the trust of Dubai’s authorities, you’ll be able to lay the groundwork for long-term commercial networking and success.

Winning official governmental contracts around the UAE will undoubtedly increase your company’s reputation and prestige, both within the UAE and outside.

6. Ability to develop an adaptable business

While forming a company in Dubai’s mainland may appear difficult, partnering with the proper company formation specialists can provide you with a package that is both quick and thorough. Consider whether the bundle offers the following major benefits when deciding who to partner with:

  • Business setup and registration
  • Automated legal administration
  • Dubai national sponsorship included
  • Fast and affordable
  • Visa and immigration processing
  • Dedicated service agency for your business

Finally, forming a mainland corporation in Dubai is less difficult. As a result, your next step should be to examine your three-year business plan and assess whether Dubai mainland registration is the best option for you.