UAE’s VAT refund scheme

The Federal Tax Authority (FTA) has held an awareness session in Ajman the campaign, which was in collaboration with the chambers of commerce, was  intended for the merchants and other representatives from the private sector in all norther emirates.

 The government allows visitors to recover the value added tax (VAT) incurred on their purchases through the refund scheme.

The FTA revealed that there has been a notable increase in the number of agreements signed with retailers to register them in the scheme, equip them with the necessary technology to implement it, and link them to airports and land and sea ports in the UAE.

The FTA said that dedicated offices would be established in various locations where tourists can recover taxes. It will be clearly outlining the taxes that are eligible to be refunded through the scheme’s digital system – said to be the “most advanced of its kind in the world.”

While many questions remain unanswered for now, it is likely that more information will become available in the near future. If you are concerned or have any questions as to how the proposed changes will affect your business in the UAE, please do not hesitate to contact us.visit:                                                                                                                                         http://www.namaccountants.com/                                                                                      or                                                                                                                                       contact  : +971-558876440

 

Offshore Company Formation UAE

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company Formation

Offshore company formation UAE

An offshore company is regarded as a legal business set up with an offshore tax haven which is shielded by explicit legislation. The Offshore company formation  UAE ensures special status for those companies that are formed under the jurisdiction. An Offshore company in Dubai is given full tax evasion and operates under high level of privacy and security.

Dubai and Ras Al Khaimah are the only two offshore jurisdictions of UAE. Both these jurisdictions offer identical services, but just differs in terms of strategic objectives of both distinct jurisdictions .

Offshore Company Formation can be of three types-

Offshore Company Formation in Dubai

Offshore Company Formation Dubai -When you want to open Offshore Company in Dubai, Jafza – under Jebel Ali Free Zone Offshore Companies Regulations 2003, allows the formation of an offshore Company by individuals or corporate bodies, as a non-resident company, having a corporate legal entity. These offshore companies enjoy all the advantages of other international offshore company formation. It is also important to note that Dubai has Double Taxation Avoidance agreement with more than 40 countries.

 

Offshore company formation in RAKOffshore Company Formation in RAK, UAE– Ras Al Khaimah Investment Authority launched an offshore facility in 2006, by passing of Ras Al Khaimah Investment Authority’s International Business Companies Regulations 2006 – also called RAK Offshore. Legislation and regulations adopted by the Free Trade Zone Authority favor big international interest for Offshore Company Formation. Rak Offshore Company Formation allows any non-resident individual or corporate to open a company in RAK as an offshore entity.

 

Offshore company formation in JAFZA

Offshore Company Formation in JAFZA, UAE– Jafza is one of the largest and rapidly growing freezone of the world and it is home to about 6400 companies from all over the world. It is a place with great business prospects for upcoming investors in the region. An offshore company formation in Jafza is highly desirable and has a sophisticated process with a lot of legal complexities and documentation .

Benefits of Offshore Company Incorporation:

  • 100% foreign ownership, there is no need for a UAE national to be a shareholder or sponsor
  • Exempt from corporate and income taxes.
  • No foreign currency restrictions.
  • Full repatriation of profits and capital
  • Setting-up costs are less than that of an onshore Company
  • No physical office needed, therefore, no employees and related costs
  • Minimum capital requirements
  • Own interest in real estate (as approved by the relevant authority) in the UAE and can act as a Holding Company                                                                           If you are looking for an offshore company formation, then we as expert business advisors can do this job for you with full professionalism and as per your satisfaction.                                                                                                                                                                                               For more details visit :http://www.namaccountants.com/offshore-company-formation.html                                                                                                                                                            or                                                                              Contact us :       http://www.namaccountants.com/contact-us.html

 

Benefits of company Formation in Dubai Silicon Oasis

Dubai Silicon Oasis (DSO)

Dubai stands at the crossroads of the East and the West, both geographically and culturally.
In little over two decades, Dubai has metamorphosed into a business behemoth, rivalling the top cities in the world. From being a dusty old town with a local trading community, today Dubai is an immensely attractive business destination for any company that wants to capture the rapidly expanding markets of the Middle East, Asia and Africa. Dubai is a city that inspires every other city and nation to strive to reach the heady heights which Dubai has scaled.
Dubai’s strategic geographical location makes it the ideal gateway between the East and West opening the door for businesses to target more than 2 billion people. It also is the hub for the region’s import and export industry, one of the most profitable markets the world over.
With the winning combination of increased foreign ownership, relaxed immigration formalities, excellent communication and infrastructural networks, and the relative ease in starting up a business, Dubai provides an ideal climate for operating a successful business.

Dubai Silicon Oasis Authority (DSOA) is a government-owned free zone and a technology park with revolutionary ideals situated in strategic location in Dubai. This elegant economic free zone in Dubai values highly efficient technology based industries and focuses on becoming one of the world’s leading centers of advanced innovation, design and development in the field of electronics. Dubai Silicon Oasis (DSO) offers you an integrated community environment where, along with your profession, you are entitled to the benefits of residential facilities, schools, shopping centers and many more leisure opportunities. A state-of-the-art utility infrastructure combined with advanced telecommunication facilities, electricity, and road networks makes us stand apart and ahead of our competitors. The companies operating within the free zone are guaranteed the all-round package of incentives and benefits.

 

Advantages of DSO

  • Strategic location in Dubai
  • Online support to register the company
  • 100% ownership
  • Personal income tax 0%
  • Corporate tax 0%
  • 100% repatriation of capital
  • No import or export tax
  • Low cost of operation
  • Free document assessment service
  • Stringent Intellectual Property (IP) law and support
  • Subsidized Electronic Design Automation (EDA) tools
  • Subsidized lease rates for high-tech companies
  • State of art IT infrastructure and affordable offices in the UAE
  • On-site IT support
  • Microelectronics lab
  • Business friendly one-stop-shop
  • Plug and play office space
  • Highly secured and state-of-the-art data center

Additional services in Silicon Oasis free zone.

  1. Careful documentation for a technology based company
  2. Preparation of necessary plans to prepare
  3. Airport transfers
  4. Document due diligence
  5. Formation of the company
  6. Private services
  7. Post formation services
  8. Visa services
  9. Company management services
  10. Company bank account opening
  11. Online payment for visa and company
  12. Installments plans for investors
  13. Special power of attorney

  Need of a Business Consultants   

Speak to a professional business setup consultant in Dubai before you set up a company in Dubai. While starting a business in Dubai you need to make some major decisions. This involves business plan, monetary investments, type of business activity, jurisdiction, financial policies, income structure, business licensing, documentation and the list goes on. Talking to an expert before starting a business can always be a wise decision.

Nam Accountants could be your first choice if you r looking to open a new business in Dubai,UAE .Or want to expend your business in Dubai. Entrepreneurs often find themselves in unfamiliar territory when starting a business and lack the knowledge ,time and expertise to develop reliable plans,appropriate business model and strategies to grow their business . So save your time and energy and give us chance to give you unlimited comfort to your business.

For more details visit : Company Formation in Dubai Silicon Oasis 

Company Formation in Dubai Silicon Oasis

Company Formation in Dubai Silicon Oasis

Dubai has long caught attention due to its favorable conditions for entrepreneurs looking to make it big. Each of the UAE’s free zones also offers a set of distinct advantages that differ from one to the next. For company formation in Dubai Silicon Oasis Free Zone (DSOA) which, along with the headline benefits listed above, also affords business owners a host of support services and an affordable, fast and straightforward setup process. 

Business Setup in Dubai Silicon Oasis: This free zone is heart of Dubai when you want to the best markets of the Middle East, North Africa, Asia and the Indian subcontinent.

  1. Convenient set up :A major factor behind its popularity is convenient setup service. The free zone offers fast-track business licensing with the entire application process taking no more than seven days – license and lease agreements are usually issued within just two days of submitting your legal documents and payment. Licenses start from just AED 18,700.
  2. Many options for doing business and license: It describes itself as helping to ‘facilitate and promote modern technology based industries. DSOA issues service, trade and industrial licenses to companies from all Department of Economic Development (DED) listed industries, plus IT.
  3. Flexible setup and office options :While taking some form of office or desk space is a mandatory requirement, Dubai Silicon Oasis offers a broad range of setup options so you won’t feel tied down. Flexi-desk package allows entrepreneurs use of its state-of-the art business facilities on an ad-hoc basis and it can come with a maximum of three visas.

 

  1. Sufficient visa options :They allow three visas and taking office or warehouse space enables you to set up with multiple visas. The only caveat being the more visas you wish to apply for, the more space you’ll be required to take.
  2. Sponsor dependents for their visas: As well as applying for plenty of visas for your employees, it’s also very straightforward to sponsor your dependents for their visa applications as well. Whether you require a visa for a spouse, child, maid or driver, the process is four straightforward stages. Keep in mind, however, that the sponsoring process is usually slightly easier for men than women.
  3. Set up with multiple shareholders: Setting up a free zone establishment in DSOA allows you to go it alone and maintain sole control of your business. If, however, you wish to set up with a partner – or partners – you also have that option. For that, Dubai Silicon Oasis allows you to establish a free zone company with anywhere between two and five shareholders.
  4. Auditing and book keeping requirements: These requirements make it one of the most respected free zones among banks and other professional institutions. However, while auditing and bookkeeping is mandatory, that’s not to say it’s excessive. All businesses registered in the free zone must simply submit yearly books and undergo an annual audit.

There are a number of steps that need to be undertaken, some complex, some less so. The first thing to do is choose your business activity. From here you can decide on your company name, complete and file your registration paperwork with the relevant authorities, open a bank account, and apply for any visas that may be required.

For more details visit : http://www.namaccountants.com/free-zone-company-formation/dubai-free-zone/dubai-silicon-oasis.html

 

 

Tourists to get refund on VAT from November

All non-UAE residents above 18 years old will be eligible for tax-free shopping.

The UAE looks set to put an up-to-date system in place for VAT refund to millions of tourists from November. The VAT refund system will be initially available at Abu Dhabi, Dubai and Sharjah airports and by year-end, it will be extended to 12 exit points, including the land borders and ports, it is learnt.

Federal Tax Authority (FTA) and Tourist Refund Scheme operator Planet have issued guidelines setting a minimum limit of Dh250 to claim VAT refund.

Planet said all non-UAE residents above 18 years old will be eligible for tax-free shopping. According to its website, tourists will be able to validate their tax-free forms at Dubai International, Abu Dhabi and Sharjah airports until December 16 whereafter the system will be in place at nine more locations – Al Maktoum airport, Abu Dhabi Port Zayed, Al Ain Airport, Al Ain land border, Fujairah Airport, Ras Al Khaimah Airport, Al Ghuwaifat land border, Hatta land border and Dubai Mina Rashid Harbour.

The operator further said tourists could be asked to present their goods to confirm they are unused. It said only the owner of the passport under which the tax free forms are registered will be entitled to collect the refund.

Anurag Chaturvedi, managing partner, Chartered House, tourists will receive 85 per cent of the total VAT amount after deduction of an administration fee of Dh4.80 per tax-free form.

Citing an example, he said if a tourist buys electronic goods worth Dh210 from a store and spend another Dh315 on buying souvenirs from another store, he can claim tax refund of Dh15 on purchases of Dh315 and not against electronics purchase of Dh210 as it’s below the minimum spend limit set by the authority.

“If the tourist spend Dh315 in the UAE, he/she will get refund of Dh7.95,” he said.

Thais Cunha, associate, Aurifer Middle East Tax, said tourists will be able to receive VAT refund for their purchases made from registered retailers.

“Retailer will charge VAT and also ensure that the customer has all the appropriate documentation to reclaim it,” Cunha said.

According to Planet, the tourists’ tax free tag needs to be validated within 90 days of the purchase. If receipts are not validated within 90 days, the tax free tag expires and VAT cannot be claimed.

An invitation sent out last week to retailers and tax consultancies across the UAE by the FTA and the Dubai Chamber of Commerce and Industry to brief them about how to register for the tourist refund scheme revealed that Tourist Refund Scheme will be rolled out in November 2018.

“Tourist can take goods and tagged receipt to the airport, seaport or border crossing. He will be required to visit Planet’s validation point (through self-service kiosks) to validate the invoice. Once validated, the tourist will choose a refund method – cash or credit card,” Chaturvedi said.

Joy Alukkas, chairman and managing director, Joyalukkas Group, also welcomed the step, saying Dubai is known as the City of Gold and this means the best quality and designs at the best possible prices.

VAT refund will help Dubai maintain its position with tourists since one of the biggest shopping attractions for them in Dubai is gold and jewellery. We warmly welcome this strategic step and are sure it will have a very positive impact for both the industry and the tourists visiting UAE,” Alukkas added.

Deepak Babani, executive vice-chairman of Eros Group, welcomed this initiative by the FTA, saying it’s a very a simple and friendly procedure for the tourists.

“It is a very positive step and procedures are simple. We were wondering about how much deduction will be for the tourists refund, but we’re happy that it’s just 15 per cent. It should definitely improve sales locally,” Babani said.

Anil Dhanak, managing director, Kanz Jewels, said tourists VAT refund will essentially put Dubai’s grip on the title ‘City of Gold’ firmly in place.

” Five per cent increase on the finished gold products had dampened demand for jewellery but we expect the tourists who come to buy gold in Dubai now will find a significant price difference between their home country and here as it had been previously,” Dhanak added.

According to a Dubai Chamber of Commerce and Industry study, tourist spending in the UAE is projected to increase from Dh154 billion in 2017 to Dh205.5 billion by 2022. In Dubai alone, a study by Mastercard had estimated visitor spending at Dh104.6 billion last year, a growth of 10 per cent. According to the annual Mastercard Destination Cities Index, Dubai outpaced all other cities in visitors’ spending in 2016.

UAE, along with Saudi Arabia, levied five per cent VAT on a host of goods and services from January 1, 2018. Bahrain and other GCC countries will implement VAT as part of GCC framework in 2018-2019.

For more Details visit :   Vat Consultants Dubai

 

Seed Group, WTS Dhruva sign partnership deal

The decision is aimed at supporting UAE businesses in achieving VAT compliance

Seed Group has announced a partnership agreement with a registered VAT and tax advisory firm WTS Dhruva.

The group, a conglomerate of companies, owned and operated by the Private Office of Sheikh Saeed bin Ahmed Al Maktoum, said the decision is aimed at supporting UAE businesses in achieving their VAT compliance, avoiding any risks of errors at any point of the VAT filing process and beyond, as well as offering VAT advisory services and solutions through a customised automated reporting VAT digital compliance tool designed for the GCC.

“Over the last year, WTS Dhruva worked with multinational clients and regulators on challenging tax environments, policies issuance and infrastructures. The firm will have a positive role by supporting businesses come to grips with tax issues,” Hisham Al Gurg, CEO of the Private Office of Sheikh Saeed bin Ahmed Al Maktoum and Seed Group said.

The senior management of the Private Office and Dhruva believe that existence of a specialised tax-focused boutique organisation will change the dynamics of the tax consultancy and compliance support for businesses in the region.

Dinesh Kanabar, CEO and founder of WTS Dhruva, said: “With nearly 300,000 VAT registered companies across the UAE, it is critical that these businesses receive holistic VAT advice.”

Pratik Shah, resident partner and VAT expert, said VAT impacts every aspect of a business from finance, human resources, IT and systems through sales to marketing as the tax is levied at every stage of the supply chain.

“VAT also provides an opportunity for an organisation to redesign certain aspects of the business to mitigate tax exposure at the same time being compliant under the law,” he said.

For more Details visit : http://www.namaccountants.com/vat-consultants-in-uae.html

or

Contact us : http://www.namaccountants.com/contact-us.html

FTA to hold tax clinics to promote compliance

The campaign kicks off on August 12 in Ras Al Khaimah

 

 

Ras Al Khaimah: The Federal tax Authority (FTA) has officially launched phase one of its “tax Clinic” initiative, which seeks to maintain direct and constant communication with taxable businesses.

For three months, the campaign will cover all seven emirates to raise tax awareness across the country, urging taxable businesses to register with the Authority and promoting compliance with tax Return requirements and the timely payment of due taxes. Phase one will take place in Ras Al Khaimah over the course of three days – from 7:30 am to 2:30 pm – until August 14, 2018, at the headquarters of Ras Al Khaimah’s Department of Economic Development (RAK-DED) and Ras Al Khaimah Economic Zone (RAKEZ).

 A press statement issued on Monday explained that the “tax Clinic” campaign will be organised as a collaboration between the Federal tax Authority and the departments of economic development and municipalities in all emirates.

 Two teams of analysts and specialists from the FTA’s Registration, tax Returns and taxpayers Services will go on an extensive tour, which includes several meetings and an interactive seminar in each individual emirate, with taxable businesses that have not yet registered in the tax system or that have fallen behind on submitting their tax Returns and settling their due taxes – particularly, small and medium enterprises (SMEs).

The sessions introduced attendees to the procedures, reassuring them that registration for taxes, submitting tax Returns and paying due taxes can all be completed – by the taxpayer or an authorised tax Agent – easily and in a matter of minutes through the e-Services portal on the FTA’s official website.

The Authority noted that the team of specialists will answer questions from business owners to identify and address the reasons that prevented these businesses from registering and submitting tax Returns, in addition to resolving any technical issues they may have faced while using the Authority’s digital portals.

The FTA explained that these meetings are organised in coordination with the departments of economic development and municipalities, who invited taxable businesses to attend and participate in the “tax Clinic”, held at the Customer Service Centres of each emirate’s department of economic development and other relevant authorities.

 The FTA pointed out that in order to expand the scope of beneficiaries of these seminars, the Authority broadcast the meetings live via social media channels.

 The Federal tax Authority called on businesses to attend the “tax Clinic” and benefit from the opportunity to ask any questions they may have, reiterating its commitment to coordinating with the relevant federal and local entities to implement the tax system and boost cooperation. This, in turn, serves to increase awareness among all stakeholders, maintain the utmost transparency and accuracy of information, and effectively address public enquiries to promote compliance with tax laws and prevent violations.

The Authority is intensifying its coordination meetings and awareness programmes to spread knowledge of the principles of the tax system, its executive and supervisory mechanisms, and its implementation, in addition to shedding light on the facilities and services that it provides to help taxpayers easily comply with tax regulations with minimum to no impact on their activities.

For more details visit : http://www.namaccountants.com/vat-consultants-in-uae.html

                                                     or

Contact us : http://www.namaccountants.com/contact-us.html

The role of Internal Audit in finance

Internal Audit

“Internal auditing is an independent, objective assurance and consulting activity designed to add value and improve an organization’s operations. It helps an organization accomplish its objectives by bringing a systematic, disciplined approach to evaluate and improve the effectiveness of risk management, control, and governance processes.”

What is the role of Internal Audit in finance

Internal Audit advances businesses to achieve their objectives by effectively evaluating and managing the risk factors and processes within an organisation. Once the risk factors are identified, the Internal Auditors focusses on managing the risks and processing them in the right way. Internal Audit is commenced in sync with the management to analyse and review the processes of an organisation by identifying areas where efficiencies and improvements can be progressed on strategic needs.

Internal Audit is functioning as a division to make sure that the prevailing internal control measures are effectively progressing adhering to the norms, procedures and strategies as put forward by the management.

What is the need for an Internal Audit in a company?

There is always a basic necessity in businesses to understand that the business is moving in the right track. Hence, the need of an internal audit arises as and when the business flourishes with time and in size and with its operations by ensuring proper compliance while expansion. The urge to call for an Internal Audit is to review the facts of procedures on their operations of various divisions and report for non-compliance, inefficiency, identify critical control areas and hatch areas of improvement to recommend corrective measures.

Internal Audit is necessary as it deals with issues that are fundamentally important for the survival and prosperity of any business.

Internal Auditing is now a necessity as it has become a specialised service requiring not only expertise in accounting but also in organisational behaviour and in functional areas of management.

The duties of an internal auditor are to:

  • Objectively review an organization’s business processes
  • Evaluate the efficacy of risk management procedures that are currently in place
  • Protect against fraud and theft of the organization’s assets
  • Ensure that the organization is complying with relevant laws and statutes
  • Make recommendations on how to improve internal controls and governance processe
  • Objectively review an organization’s business processes
  • Evaluate the efficacy of risk management procedures that are currently in place
  • Protect against fraud and theft of the organization’s assets
  • Ensure that the organization is complying with relevant laws and statutes
  • Make recommendations on how to improve internal controls and governance processe

What is the Scope of Internal Auditing?

The Qualified Practice of Internal Auditing in its International Standards , the IIA states that ‘internal audit activity should evaluate and contribute to the improvement of risk management, control and governance processes using a systematic and disciplined approach”.

Internal Audit now lays emphasis as mentioned below:

  1. Risk Management
  2. Governance
  3. Risk Management: The Internal Audit team will be assisting the business organisation to detect and evaluating substantial threats for risk which would contribute towards to enhance the risk management and control systems. The scrutinization will involve evaluating specific points as mentioned below:

Reliability and integrity of financial and operational information: The internal auditors shall be reviewing the reliability in sync with the finance team and the operations of the businesses to detect, measure and set out reports for such kind of extracted evidence. The process involves scrutinizing as mentioned below:

  1. Whether the Financial reports are correct, dependable, apt and complete.
  2. Whether there are any suitable operations to govern the record-keeping and reporting of the business.

Compliance with Laws, Regulations and Contracts: We as your Internal Auditors will be reviewing your ongoing systems and processes to make sure that your business is in compliance with UAE Laws. Businesses should have substantial impact with its ongoing policies, plans and procedures to have the reports of the processes to determine that the operations of your business have complied with the law of the region. Not adhering to the laws and policies in the UAE will attract huge penalties and serious consequences, hence 100% compliance is a must for the businesses which can be projected when proper systems are adopted.

Safeguarding of Assets: As your Internal Auditors, our internal audit team shall evaluate the systems and processes of safeguarding your assets to get and overview and evaluate the risk of losses from any unforeseen or unfortunate incidents like theft, fire, etc, improper activities and exposure to elements of nature.

Effectiveness and Efficiency of Operations: As your internal auditor we shall abide by the international standards we shall determine:

  1. Whether the operating standards have been set by the management to determine cost effective measures and its efficiency (it is not the responsibility of the internal auditor to set these standards);
  2. Whether the established operating standards are understood by all the divisions and are being met as it should;
  3. Whether if there are any discrepancy from operating standards they are set, progressed and communicated to those responsible for its correct action;
  4. Whether correct action has been taken or not.

Accomplishment of Objectives and Goals for Operations or Programmes: As your Internal Auditors we will be evaluating the processes and development of programmes to determine if the end result or outcome have been constant with the ongoing objectives and policies of the business and whether the objectives and policies should be being taken forward as it had been decided.

Governance: Our Internal Audit team shall conduct an assessment and give proper references to improve the governance process for accomplishing the below mentioned points:

  1. To endorse precise integrity and morals within an organisation.
  2. To make sure that the organisational performance supervision and accountability are progressive and effective.
  3. To efficiently communicate the risk and control evidence to the concerned department of the organisation.
  4. To manage the events and actions of communicating the information among the board members, external and internal auditors, and the management efficiently.

Nowadays Internal Audit has come up with modern days approach which covers vast areas to indulge in from reviewing of custodianship and safeguarding of assets, compliance with policies and reliability of accounting information.

It can thus be seen that the modern concept of internal auditing convers not only the traditional functions dealing with a review of custodianship and safeguarding of assets, compliance with policies and reliability of accounting information but it also lays emphasis in new areas like reviewing the economical and efficient use of resources and organisational performance. Once all the areas are assessed then, finally it will be evaluate the entire governance process and suggest recommendations for the businesses enhancement.

If you are looking for Audit & Assurance Services in the UAE, then you are in the right place. Nam Accountants Group caters highly qualified professional in the related field of work by providing a wide range of Audit and assurance services all over UAE

For more details visit : http://www.namaccountants.com/services/audit-firm-dubai.html

Basic steps to set up a business in Dubai

Business in Dubai

 

Basic steps to set up a business in Dubai

Are you thinking of starting your business in Dubai? Congratulations, you have chosen one of the best business ecosystems in the world for your new endeavor. Dubai is more than mere a city of architectural marvels– it is one of the most fertile grounds for new businesses. This is just one of the many things that make the commercial capital of UAE the best place to live and work. And as for starting up a business here, there’s no question that there’s a lot of potential to be tapped here in Dubai. So, if you are eager to set up your own enterprise, this article will help explain what you need to know and do to get your company registered and off the ground.

We have equipped this article with necessary links to guide you about the process and documentation required. Take a good look at the below before you kick off the actual process- the good news, though, is that on average, if you are ready with all required documents, it takes less than 10 days to start your company in Dubai. So, let’s start!

But before you start your legal formalities, you need to consider some elements required in the process:

  1. Know your business

    The success of a great business venture depends on sound knowledge of the local region, thorough research into the viability and demand for your product or service and a credible business plan that is likely to attract investment partners.

    Yes you have a great idea, but is there a demand for what you are offering? What does your competition look like and what puts your business offering a notch above the others?

     

  2. Select a Location that optimizes suitability, convenience, and costsAnother important step in planning a business startup in Dubai is to determine the most suitable location for the business. Setting up a profit-based enterprise in the city wouldn’t do you much good despite the growing economy if you’re customers or clients can’t reach you.You need to set up your business in an area that is most profitable for your business or most convenient to your business. A location in the right city can be selected for a shop or an office is most known for the type of product or service you are dealing with.If you are planning a Free Zone company then you must make the selection based upon the criteria of distance, costs and if it is suitable for your product, business model, and trade requirements.A tenancy contract must be concluded. If you’re aiming to start a small-scale enterprise, then the basic amenities, like telecommunication, storage, and space inside the establishment is the basic concern that must also be satisfied. Other services available in the commercial property can vary greatly.
  3. Financial viability

    Once you business is registered, the Ministry of Commerce will require owners to show proof of financial investment. If you are new to the region and have no track record, you must be prepared to find your own financial resources through your bank or by other means rather than relying on local support.

    Once you have established the validity of your concept, from a marketability stand point as well as financial viability, you can now look at the steps for turning your idea into a booming business.

    UAE Commercial Companies Law and Federal Law define seven basic categories of business organization that can be established in Dubai and the UAE. The requirements for minimum capital levels, shareholders and procedures for incorporation will vary with the type of business structure.

  4. Changes to Foreign Ownership and Visa Rules Announcement

    Anyone coming into the UAE as a professional or as an investor is typically granted a residence visa of two years, which is renewable. This has now been changed to a ten-year visa for investors and professionals in highly skilled fields such as engineering, medicine and science. Students will be given a special five-year visa, while those who consistently perform well and earn top grades will be granted a ten-year visa as well.

    Another very significant change is in the ownership of companies.Businesses within the UAE are divided into two main categories: mainland businesses and freezone businesses.

    At present, mainland businesses can be partially owned by expatriate entrepreneurs, but must have a UAE national as a majority shareholder in the company. Freezone companies, on the other hand, can have full foreign ownership and are subject to separate regulations depending on the freezone.

    With the new regulations, every business, whether mainland or freezone, will be able to have 100% foreign ownership without the need for an Emirati partner.

  5. Confirm your Visa eligibility and requirementFor a business startup in the UAE, a visa permitting you and employees to live in UAE is essential to run your business.Visas are allowed for almost all businesses.However, their number varies according to a variety of criteria such as the size of the office, nature of the business, the category of the employee or the investor. 

    Documents Required for LLC

    • Investor’s passport copy
    • Local Sponsor’s passport copy
    • Manager’s Passport copy
    • Registration application form from Economic Department
    • Trade name reservation
    • Initial approval from Economic Department Tenancy contract for the Office/warehouse or showroom attested by planning department and civil defence department of Dubai municipality along with location plan.
    • Memorandum of Association duly attested from public notary.

    Documents Required for Professional firms

    • Parent Business formation certificate duly attested from the UAE embassy in the home country of the parent organisation.
    • Board resolution for establishing a branch and to appoint the manager for the same
    • Attested copy(from UAE Embassy) of organisation memorandum / articles of association
    • Financial statements for the last two years
    • Local service agency agreement duly notarised in the UAE courts
    • Passport copy of the local service agent
    • Passport copy of the Manager
    • Company profile
    • NOC letter in favour of the Manager from the sponsor, if he is a resident of the UAE
    • Company Registration in Dubai, UAE

      Businesses of any category operating in the UAE must have a license for registering into the business network of the country. Company registration in UAE requires a trade license and permission from different law enforcement agencies and the state government for setting up your business. Company registration in Dubai for businesses like financial services, food, health services, printing and publishing requires a lot more clearance than any other business.

      Company registration in UAE falls into following three categories depending on the nature of your business:

      1. Company Registration in Dubai, UAECommercial License – This license is issued to those companies who are just looking for trading business activities.
      2. Industrial License – This license is for those companies who will engage in manufacturing or other industrial activities.
      3. Professional License – This license is issued specifically for different service providers, artisans, craftsmen and other professionals.

      For the company registration in Dubai, the Department of Economic Development (DED) of UAE issues the required licenses.

  6. Get a License Notification

    There are many complex requirements associated with the issuing of the business license. The company registration in Dubai for financial services must need the approval of the Central Bank of UAE. The license for the manufacturing companies requires approval from Industry ministry of UAE. Similarly, the medical service providers require approval from the Health Ministry of UAE .Once the necessary documents are obtained and formalized, the initial application process will begin at the relevant issuing authority along with registering the company’s formal name. This crucial stage paves the way for clarification of the final fees and the final acceptance of the company’s proposed activities.

  7.  Hire a registration agent to take you through the process of business startup

    Hiring a business advisory firm to register your business startup may be your best option.

    These consultants will not only hold your hand right through the setup process but will also actually register the company for you. And will help with opening your bank account, arrange for an auditor, do your renewals and offer you nominee services.

    You may find their expertise in dealing with the local government bureaucracy and with Free Zone Authorities to be of great help in planning and itemize your business startup costs.

    In most cases, these firms offer a team of experts to plan out your company registration from scratch — this includes the strategies you need to follow in order to smoothly set up your business, itemizing potential costs, offering licensing and location options, coming up with solutions for potential business hurdles, and so on.

    Also, they will take care of all the necessary requirements to help you to have your business registered legally with minimal problems on your end.

     

    If you are looking for trading in any of these industries in Dubai or any other, then we can give you the best advice for your company registration in UAE.                                                                                              For more details visit :http://www.namaccountants.com/                                                                        or                                                                                               Contact us : 971-558876440

VAT Voluntary Disclosure Form 211

The Federal Tax Authority (FTA) has introduced a form 211 – VAT voluntary disclosure form. It will help the taxable persons to rectify the errors they committed in their UAE VAT Form 201which is already filed. It is an option given by the FTA for the tax periods to voluntarily disclose the errors one has committed.

This disclosure requirement has nothing to do with your VAT return or voluntary registration. The voluntary disclosure referred to is only to be used in the  circumstances if you later discover an error in a VAT return previously submitted.

What is meant by Voluntary Disclosure under UAE VAT Law?

Every Taxable person has an option to rectify the contents of the VAT Return (Form 201) which were already filed. By using the voluntary disclosure option, the taxable person can rectify the amount of tax disclosed by him previously. One can use the form 211 – VAT voluntary disclosure to inform the authority and rectify the same voluntarily before the authority finds it before a tax audit or through an assessment.

 

 

How to use the VAT Voluntary Disclosure Form 211?

Once the taxable person identifies the error or omission he made in his previous VAT return form 201, he can log in to the official portal of FTA by using their user name and password and access the VAT voluntary disclosure form 211 to rectify.

As shown in the above screen shot, the taxable person can select the respective periods wherein a voluntary disclosure is required by clicking the button submit form 211 to rectify the mistakes.

When can one use VAT Voluntary Disclosure Form 211?

If a taxable person makes an error or omission or a wrong treatment of tax by which the output tax payable or input tax recoverable is more than AED 10,000/- for a particular period then, he must use the VAT Voluntary Disclosure form 211 to inform the authority. The form will show the original figures disclosed under “as reported” and will give an option to edit the amount under separate box named “as current”. Further the reason for such discrepancy also should be disclosed.

Once the newly arrived figures are written in the respective boxes under “as current”, the total tax liability under box number 14 also gets changed. This will be the actual tax liability to be paid to the authority. Further, the taxable person should also upload the supporting documents for such voluntary disclosure. It includes a letter describing the background of the facts and a detailed description of the errors disclosed, the reason for voluntary disclosure as well as the impact on the relevant boxes of the tax return.

Penalty while using the VAT Voluntary Disclosure Form 211?

There are two types of penalties.

  1. Fixed penalty
  2. Percentage based penalty

Fixed penalty – if the tax payer uses the VAT Voluntary Disclosure form 211 for the first time, AED 3,000/- shall be levied. For every repetition in using the VAT Voluntary Disclosure form 211 AED 5,000/- shall be charged.

Percentage based penalty – if the tax payer discloses less than the actual tax liability in the return and subsequently uses Form 211 VAT Voluntary Disclosure form, the percentage-based penalty will be as follows:

  • If the taxable person makes a voluntary disclosure before the authority notifies (by way of tax audit or tax assessment), 5% of the tax amount which was not disclosed earlier will be the penalty.
  • If the authority notifies the taxable person for a tax audit and during the tax audit if he makes a voluntary disclosure by using VAT Voluntary Disclosure Form 211, he will be liable to pay 50% of the tax amount.
  • If the taxable person makes a voluntary disclosure after the authority notifies for a tax audit but before starting the tax audit, he has to pay 30% of the tax amount as a penalty.

What if the difference in tax amount identified is less than AED 10,000/-?         

If a taxable person makes an error or omission or a wrong treatment of tax by which the output tax payable or input tax recoverable is less than AED 10,000/- for a particular tax period, then he need not use the VAT Voluntary Disclosure form 211 to inform the authority. He can rectify such errors in the subsequent VAT Return without a separate disclosure.

For Example:

XYZ LLC is a company registered in Dubai and the tax paid is 1st January 2018 to 31st March 2018 and quarterly thereafter. For the first quarter, the total sale was AED 10,000,000/-  out of which 3,000,000/- was an export and the balance 7,000,000/- was standard rated supply. The total output VAT is AED 350,000/-. Recoverable input tax under standard rated expenses (5,000,000/-) was AED 250,000/-. Hence, net tax payable is AED 100,000/-.

Suppose, XYZ  LLC wrongly filed their VAT Return Form 201 – AED 6,000,000/-  as 5% taxable supply and AED 4,000,000/-  as export. In this case it will be showing AED 50,000/- as net tax payable to the authority.

What will be the penalty under voluntary disclosure scheme?

  1. If voluntary disclosure is filed for the first time without any notification from the FTA then fixed penalty is AED 3,000/- and percentage-based penalty will be AED 2,500/- (5% of AED 50,000/-)
  2. If the authority already sent a notification for a tax audit and if XYZ LLC discloses under VAT Voluntary Disclosure Form 211 before the authority starts a tax audit, then the fixed penalty is AED 3,000/- and percentage-based penalty will be AED 15,000/- (30% of AED 50,000/-).
  3. If the authority already started a tax audit and XYZ LLC discloses under the VAT Voluntary Disclosure Form 211 during the tax audit, then the fixed penalty is AED 3,000/- and percentage-based penalty will be AED 25,000/- (50% of AED 50,000/-)

Every taxable person should file their VAT Return with optimum precision within the time frame specified by the UAE VAT Law which is within 28 days from the end of each tax period. A taxable person should ensure that the VAT Return Filing is processed in a correct manner, so as to limit the frequency of using the VAT Voluntary Disclosure Form 211 to avoid penalties.

I strongly suggest to get your VAT Return filed by licensed tax consultants to avoid penalties and fines from FTA.

Nam Accountants can help you to deal on this matter. For more details and information call us now  : 971-558876440

or

Visit us : http://www.namaccountants.com/vat-consultants-in-uae.html