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Business Setup

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This cost calculator is designed to provide you with an estimated budget for aΒ business setup in Dubai, UAE.

By using this tool, you can gain a clear understanding of the financial requirements for your specific business type. It allows you to make informed decisions and plan your investment more effectively. Additionally, this calculator helps us better understand your business needs, enabling us to offer tailored advice and support to ensure your venture’s success.

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FAQs

Frequently Asked Questions

At Emarzo Business Consultancy, we understand that setting up a business in the UAE can raise many questions β€” from choosing the right jurisdiction to handling legal documents and licenses.

Essentially, for the confirmation of the status of a license regarding any business in Dubai, there is a dire need to look for officially verified resources with accuracy and freshness. You can follow the subsequent steps in this regard:
Visit the DED’s official website: There exists an online facility provided on the website for a status check regarding any business license.
License Verification Service: Log in to the β€˜License Verification’ service from the DED website. You will have to provide details about the license you want to verify, like the license number or the name of the company.
Through the Dubai Economy App: It will provide users with an easy-to-use interface for accessing other services such as verification of the license. Click the required status for the entry of license particulars.
Tas’heel Centers: Visit any Tas’heel Center in Dubai. These centres provide various government services, including assistance with checking business licenses. Bring necessary documents such as the company name or license number for verification.
Customer Service: You can also approach the DED directly on the hotline or via email for your customer service, in case of further assistance or any other issue. They will give detailed information and guide you through the license verification process.
It is significant to verify whether the license is active and valid, as it confirms that the business exists legally and operates in Dubai. It is worth noting that checking should be done on a regular basis to avoid legal issues but also for mere compliance.

Business setup in Dubai has normally been regarded as easy, with the city’s policies being friendly towards businesses, but that ease may differ based on the type of business, location, and ownership preferences.
Key Factors Contributing to Ease:
Free zones: Dubai has more than 30 Free Zones, including DMCC and Dubai Internet City, that offer streamlined processes to set up businesses, especially for foreign investors. Full foreign ownership, no personal or corporate tax, and a simplified system of getting licenses-that is what entrepreneurs get in these zones.
Government Incentives: The DED in Dubai paves the way and simplifies the process with much ease, especially in terms of licensing, for companies in the emirate. Moreover, initiatives such as the Dubai SME promote and finance startups and small businesses, with added incentives.
Digital and automated services: The government of Dubai has invested much in digital infrastructure, and most of the steps with regard to licensing and registration can be completed online, therefore saving much time and reducing much paperwork. Initiatives such as Dubai Now and the Dubai Trade portal give access digitally to most government-related procedures.
Tax Benefits: There is no personal income tax and generally no corporate tax; this reduces the administrative burden and thus becomes highly attractive for international investors.
Challenges:
High cost of living/fees: Office rent, fees of visas, and other operational costs are high, especially in the mainstream areas. The Free Zone costs vary widely, and some might be more expensive than others.
Industry-specific regulations: May need special approval from the regulating body, which extends the time for set-up. For instance, industries related to finance or health may have special licenses.
Sponsorship requirements: The general requirement in mainland is that it has limited foreign ownership, often requires a local sponsor; recent reform allows foreign ownership of up to 100% for specific types of industries.

In the context of the United Arab Emirates (UAE), an LLC refers to a Limited Liability Company, while β€œnon-LLC” generally refers to any other type of business structure that is not an LLC such as a sole proprietorship or partnership. Here are some key differences between the two:

LLC
Non-LLC
Liability
The liability of the company’s shareholders (also known as members) is limited to their respective capital contributions.Β 
This means that the personal assets of the members are generally protected from business liabilities.
The owners have unlimited liability, meaning their personal assets may be at risk to satisfy business debts and obligations.
Ownership and Management
LLCs are typically owned by two or more individuals or entities, who are known as members. These members may be involved in the management of the company or may appoint managers to run the day-to-day operations.
The ownership and management structures can vary depending on the type of business entity chosen. For example, a sole proprietorship is owned and managed by a single individual, while a partnership may have multiple partners with shared ownership and management responsibilities.
Legal Formalities
LLCs in the UAE are subject to certain legal requirements and formalities. These include drafting a Memorandum of Association (MOA) and Articles of Association (AOA), obtaining necessary licenses and permits, and complying with reporting and accounting obligations.
Non-LLC structures, especially those involving sole proprietorships or simple partnerships, may have fewer legal formalities and requirements.
Foreign Ownership
The UAE has different regulations regarding foreign ownership in different sectors and the Emirates. Generally, LLCs require local sponsorship or a UAE national as a partner, holding at least 51% of the shares, while the foreign partner(s) can hold the remaining 49%.Β 
Non-LLC structures may provide more flexibility in terms of foreign ownership, depending on the business activity and location.

foreign company can register under VAT in UAE, but only when it falls under the Federal Tax Authority – FTA criteria. It is mentioned in UAE VAT Law that businesses which are not resident in the UAE should also be obliged to register for VAT if the value of their taxable supplies or expenses in the state exceeds the limit as determined. The compulsory threshold for registration is AED 375,000 and on a voluntary basis, an applicant company may apply for registration when its supplies or expenses are above AED 187,500.
This can be directly done through the e-services portal of the FTA. To set up an online account and access it, the company has to describe its activities, financial records, and other relevant legal documents. Foreign companies are also allowed to appoint a tax agent or representative in order to ensure proper compliance with UAE VAT obligations, including filing returns and making timely payments.
VAT registration would be beneficial for the foreign company to claim input VAT on qualifying expenses, thus reducing the overall cost of doing business in the UAE. On the other hand, a registered business must maintain proper records, issue VAT-compliant invoices, and file VAT returns on time. Failure to comply could lead to the imposition of fines or penalties; hence, foreign companies should be fully aware of regulatory requirements.

In the UAE, there are three major types of business licenses responsible for commercial activities and operations: commercial license, industrial license, and professional license. Each license has different requirements; rather, each license type is suited to different business operations.
Commercial License:Β The license targets all trading activities and, as such, defines the type of business operation that could be used by an entity. A company importing, exporting, selling, or distributing goods would normally need a commercial license. The license allows the holder to conduct trading activities within the UAE or export goods internationally. It is one of the most common license types for businesses operating in free zones as well as on the mainland.
Industrial License:Β This license is needed for any firm that is manufacturing any item or involved in an industrial activity, including production, assembly, packaging, or processing. For this kind of license, the business needs a physical warehouse or space for an industry and also needs to fulfill the requirement for equipment and labor. In fact, through this license, businesses are involved in industries such as textiles, chemicals, and metalwork, among others, whose merchandise could be distributed within the UAE or even exported.
Professional License:Β Professional licenses cover those businesses offering services rather than a physical good. Examples of such industries include consultancy, bookkeeping, legal, and medical professions. In general, a professional license requires qualifications or certification, as this type of license is intended for experienced professionals in their field of specialty.

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