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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

 

Accounting for business

 

It's important to step back and review what factors make up your sales

Accounting is indeed one of the most important parts of a business as it functions as a lifeblood of a company. A business cannot simply operate without accounting in it. Although some aspects are all equally important for the success of your company, accounting can make or break you. This is why there are a lot of accounting services that are available in the country.

Even when asked, accounting firms in Dubai will tell you that knowing the numbers and dealing with them properly can help you to manage your business better. It is better than you know too much than to know nothing at all.

 

  • WHAT IS ACCOUNTING FOR A BUSINESS?

In very general terms, accounting is a documentation of all economic operations through records management. This activity has three main areas:

  1. Bookkeeping process. Management of financial statements in accordance with established procedure.
  2. Tax records. Document of business deals with a view to building tax base and calculation, reporting to fiscal bodies.
  3. Management accounting. Analysis of recorded data enables the entrepreneur to evaluate the effectiveness of his activity, to make sound economic decisions, to plan and optimize work processes, to monitor progress made and results achieved. Analysis of recorded data enables the entrepreneur to evaluate the effectiveness of his activity, to make sound economic decisions, to plan and optimize work processes, to monitor progress made and results achieved.

As can be seen, accounting is not an empty word, but a necessary tool for a successful businessman.

  • Kind of Records to keep
  1. You should know what type of records to keep.
    1. Legal documents. Business licenses and permits, sales tax licenses, DBA certificates and any other documents that have legal significance for company’s activity should be stored separately and be kept accurate and current. You need to know exactly where one or another document is, both online and offline.

         b .Supporting financial documents. The source documents are of a great value for a business because all accounting operations are based on them. Supporting financial documents include all contracts with counterparts, invoices, receipts, payrolls, cash register tapes and a number of other documents related to the finance

  • Accounting software makes it easier for you to track your business’s financial health and monitor the money moving in and out of your accounts. It can create invoices, track expenses and generate a variety of reports that help you analyze your business’s performance from various angles. Many applications can also help you track your bills and manage your inventory or projects.Choosing accounting software can be challenging. Each program includes a different set of features, and most offer multiple pricing plans to choose from, which also vary by feature, number of users, or other factors. Here are three items to keep in mind when selecting accounting software for your business:
    1. Costs. Would you prefer inexpensive, basic accounting software or an application that costs more but includes extra features?
    2. Usability. How many users need to access the software? Do you prefer a cloud-based system you can access anywhere or desktop software? Do you need it to have a mobile app?
    3. Features. What do you need the accounting software program to do? Do you need both accounts receivable and accounts payable tools? Which reports do you need it to generate? Do you need it to track inventory? Do you need it to include ancillary services, like time tracking, project management and payroll .

  •  Hire a good accountant: An accountant will work in conjunction with your attorney and be instrumental in determining the best form of ownership. He can also help you establish bookkeeping and other record keeping procedures that can keep you on track for years. Most important, a good accountant will help with tax planning. “You will also want an accountant who understands the state laws, since every state has its own little intricacies, such as sales tax issues,” .
  • Hire a good business attorney: You don’t necessarily need to have an attorney on a retainer, but you’ll want to hire an attorney experienced with new businesses to help you get started. Your attorney can advise you about such things as drafting contracts, reviewing your lease and determining the right business structure. “A good attorney will know what it is that you are trying to do and help you structure your business in a way that will be beneficial to you,”                                                                                                                                                                   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

VAT Registration and Its Impact

VAT Registration And Its Impact

Value Added Tax (VAT)

Value Added Tax or VAT is a tax on the consumption or use of goods and services levied at each point of sale. VAT is a form of indirect tax and is used in more than 180 countries around the world. The end-consumer ultimately bears the cost. Businesses collect and account for the tax on behalf of the government.

VAT Registration – What is VAT registration?

VAT registration is the process of listing your business with the government as active in production and sales. Once you are VAT registered, you will become eligible for the return of VAT.

Implication of VAT on individuals

VAT, as a general consumption tax, will apply to the majority of transactions in goods and services. A limited number of exemptions may be granted.

As a result, the cost of living is likely to increase slightly, but this will vary depending on an individual’s lifestyle and spending behaviour. If an individual spends mainly on those things which are relieved from VAT, he is unlikely to see any significant increase.

The government will include rules that require businesses to be clear about how much VAT an individual is required to pay for each transaction. Based on this information, individuals can decide whether to buy something.

Implication of VAT on businesses

Businesses will be responsible for carefully documenting their business income, costs and associated VAT charges.

Registered businesses and traders will charge VAT to all of their customers at the prevailing rate and incur VAT on goods/services that they buy from suppliers. The difference between these sums is reclaimed or paid to the government.

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

or

Contact us : +971-558876440

Reasons To Start Your Own Business In The UAE

 Reasons To Start Your Own Business In The UAE

 

Why Choose Dubai As An Investment Location?

The Dubai economy enjoys a competitive combination of cost, market and environmental advantages that create an ideal and attractive investment climate for local and expatriate businesses alike. In fact, these advantages not only rank Dubai as the Arabian Gulf’s leading multi-purpose business center and regional hub city, but they place it at the forefront of the globe’s, dynamic and emerging market economies.
Dubai, with its ancient commercial and seafaring traditions, has long been recognized as the Middle East region’s leading trading hub and has emerged as its key re-export center. In more recent years, the Emirate has become a major venue for a number of growing, profitable industries and activities .

 

Political And Economic Stability: Dubai is part of the UAE which is a low-crime and politically-stable country. Also, the UAE enjoys financial and monetary stability. Its well-developed, sophisticated banking system features ,extensive credit facilities and ample liquidity. The Emirate’s emerging capital markets are built on a basis of leading-edge technologies and sound regulatory systems. The government has a long, consistent commitment to pro-business, liberal economic policies including the protection of intellectual property rights. The UAE benefits from stable and harmonious industrial relations. Finally, there is a well defined, sound legal framework for business and a clear set of ownership rules. Foreigners are permitted ownership rights of up to 49% for limited liability companies established within the Emirate of Dubai and up to 100% for professional companies, branches and representative offices of foreign companies and free zones enterprises. All of these factors reflect positively in Dubai’s being assigned an investment grade rating for fixed income investment by Moody’s Investors Service.

 

Large, available workforce

One of the biggest struggles when starting up any new enterprise is finding the right people to work with. Dubai wins again. Its liberal and cost-effective labour laws, along with its desirable working location, make it both easy and – perhaps most importantly – rather affordable, to recruit employees from almost anywhere in the world. The ease at which expatriate workers – who make up a staggering 90% of the city’s labour force – can enter and exit the UAE also makes it easier for businesses .

Ease of starting your own business

New markets, new consumers, the rise of Internet technology – Dubai is a land of booming opportunities.

A recent survey by HSBC revealed that Dubai is ranked second-best city in the world after Singapore for expats looking to start a business. The survey highlights that the UAE’s entrepreneurial environment, job prospects and better salaries as primary factors attracting expats from across the world.

“Despite the volatility in the global economy and insecurity in job markets, the UAE’s diverse business landscape and its position as a hub in the Middle East means that it continues to be an attractive destination for expats from across the world,” .

No Taxation. 

The UAE’s economy in general is considered to be the most liberal and most diversified in the region. Dubai applies NO TAXATION policy for almost all types of business activities with exception of branches of international banks, hotels and major oil and gas companies. The following taxes are NOT applied in Dubai:

  • Personal income tax;
  • Capital gains tax;
  • Value-added tax;
  • Withholding tax;
  • Corporate tax.

Dubai Free Zones.

 Free Zone is a designated tax-free area, where foreigners can set up and do business in Dubai with full ownership and without partnering with a local emirati partner or agent. All Free Zones vary from one to another and offer licenses in various sectors. For example, there is a Free Zone for healthcare providers (Dubai Healthcare City or DHCC); there is a Free Zone for educational and training institutions (Dubai Knowledge Village); there is a Free Zone for media companies (Dubai Media City), there is a Free Zone for financial institutions and services providers (Dubai International Financial Center or DIFC) and many others. There are more than 20 Free Zones currently operating in Dubai itself.

Residency Visa.  

If you have a company in Dubai and in other Emirates of the UAE in general, you will be eligible to get a UAE Residency Visa for yourself, your family members and for your expatriate employees. Having a UAE Residency Visa will give many benefits such as:

  • you can open a current account in UAE Banks
  • you can lease an apartment for long-term basis
  • you can enter/exit to/from UAE multiple times
  • you can get visas for other countries  more easily as a resident in the UAE.

 

Logistics and Infrastructure

Dubai enjoys the position of a significant player in international trading and transport logistics. It has the advantage of its inherent strategic location on the globe. Dubai is in the middle of far east and Europe and situated at the crossroad of international trade between east and west. Due to its geographical location, Dubai is considered to be the gateway to the world’s most progressive markets, including Africa, India and china.

 

  • Air

Dubai offers immense facilities in air transportation and air cargo. Dubai has two airports Dubai international airport and Dubai World Central (Al Maktoum International Airport). Dubai international airport is one of the busiest international airports in the world. It has world’s largest cargo hub known as cargo village, most of the cargos for Asia & Africa are using this cargo village. Dubai world central is operational but it is still in developing phase. DWC is located in Dubai south district which is also future home for expo 2020 site. Once completed and start operation in full capacity it will become world’s largest airport and multi-model logistic hub with the capacity of 160 million passengers and 12 million tons of cargo per year. DWC is an integrated project of six clustered zones Dubai logistic city, commercial city, residential city, aviation city and the golf city. Dubai logistics city is one of the largest industrial submarkets under construction. According to the latest research from cluttons, international real estate consultancy it has already attracted a number of high-profile players including integrated national logistics, emirates, sky cargo, Aramex etc. DWC has one more speciality. It has world’s only 7- star airport terminal for private aviation.

  • Sea

Dubai’s Jebel Ali port is the largest port in the middle east, it is likely to become the biggest container port in the world. The government of Dubai and DP world are working on the expansion plan of Jebel Ali port. According to the official statement, the current plan will multiply the total capacity of Jebel Ali port by seven, making it world’s biggest port, surpassing the ports of shanghai and Singapore. India and china are using it as a logistical hub for their African ventures. Due to its strategic location port is providing market access over 2 billion people across six continents. It is a gateway for over 90 shipping services connecting 140 ports in the world. The strategic geographical location and facilities made it the busiest port in the middle east, according to a research report revealed by arabiansupplychain.com based on statics of 2015. Port Jebel Ali is linked to Dubai’s express-way system and to the Dubai international airport cargo village. The rapid transportation facilities available in Dubai made it possible to achieve ship-air and air-ship connectivity in four hours. Dubai has two more ports Port Rashid and Al hamriya.

  • Land 

Dubai has one of the best road infrastructures in the world. According to world economic forum’s travel and tourism report (2013), the UAE has been rated second best in the quality of roads. Dubai is known for wide roads with disciplined traffic and centralised monitoring system by high-tech cameras and radar. The Dubai metro is world’s largest automated driverless train system, with more than 70 Km of magnetic tracks. The government is working on an extension of the metro route and connecting metro to expo 2020 site. Soon Dubai will enjoy connectivity with 1200 km long Etihad railway network. This network will connect all major population, trade and industrial zones across UAE. This will fulfil freight & passenger needs. Dubai will be connected with GCC rail network also. GCC railway is 2,117 km long rail network this will connect all six countries of gulf corporation counsel. Transportation of goods will become easy for UAE, Saudi Arab, Kuwait, Qatar, Bahrain, Oman. The Dubai government is developing 500 Km road network and 120 multilevel interchanges by investing $ 12 billion. The development work is expected to complete before expo 2020.

Local culture and heritage
Although Arabic is official language; English is the most widely spoken language in business rooms.  The company is hospitable and is ranked safe place to work.
You get a chance to enjoy the delectable local cuisine and Arabic culture in forms of art, music and architecture.

Before we conclude, we‘ll do a bonus section on major UAE cities which you can eye for a business setup.

  • Dubai: It is the most cosmopolitan city in all of UAE, tourists from all over the world visit Dubai for its shopping experience.
  • Abu Dhabi: Home to the richest, it is also the most planned and organized business center in UAE,
  • Sharjah: Sharjah airport international freezone is a premier freezone which attracts foreign investors.
  • Jebel Ali: It is a freezone on the western side of Dubai. Readymade facilities like business parks, office spaces are available for the customers.
  • Fujairah: The Fujairah freezone is an upcoming one and is attracting shipping and transport companies from all over the world.

So, are you excited to start up your own venture in the UAE?  If yes, then prep up your business idea and get in touch with international business consultant in UAE ,Namaccountants -who have guided thousands of business owners for successful business setup in this region.

With Namaccountant team’s international business men and local Middle Eastern exposure, you can rest assured that your business setup is taken care of.

Have more questions on how to go about?

Write to us at  Info@namaccountants.com

 

 

 

UAE approves 100% ownership of companies, new ten-year visa

Changes to Foreign Ownership and Visa Rules Announc

Residency system amended

“The UAE will remain a global incubator for exceptional talents and a permanent destination for international investors. Our open environment, tolerant values, infrastructure and flexible legislation are the best plan to attract global investment and exceptional talents to the UAE,” stated Shaikh Mohammad.

He also directed the Ministry of Economy, in coordination with the concerned parties, to implement the resolution and follow up on its developments, and to submit a detailed study in the third quarter of this year.

At a meeting of the Cabinet of the Council of Ministers of the United Arab Emirates (“UAE”), the UAE Government decided to allow foreign investors to own 100% of their businesses in the UAE and approved sweeping changes to the current UAE visa system.

The changes were announced yesterday evening (20 May 2018), on Twitter, by Sheikh Mohammed Bin Rashid Al Maktoum, the Prime Minister of the United Arab Emirates and the Ruler of Dubai.

 

  • What Are The Changes That Have Been Announced?

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.

  1. 10-year residence visas

The system will grant investors and talents up to 10-year residency visas for specialists in medical, scientific, research and technical fields, as well as for all scientists and innovators.

It also grants five-year residency visas for students studying in the UAE, and 10-year visas for exceptional students.

The Cabinet also issued instructions to conduct a review of the residency system with a view to extending residency permits for those sponsored by their parents after completing their university studies to facilitate their future residence in the UAE.

 

    2. When will these changes come into effect?

According to Sheikh Mohammed’s messages, the new changes will be implemented starting with the third quarter of this year. Previous reports suggested that the new investment law should be published by the end of the year. It remains to be seen whether the visa changes will be provided for in the investment law or will be implemented earlier through Cabinet decision or similar legislation.

When implemented, these changes are likely to significantly alter the business environment in the UAE and have a tangible impact on the majority of UAE based businesses and (at least) certain categories of residents. 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

 

Company formation in Dubai

Company Formation 

Company formation is the process of legally incorporating a business as a limited company or LLP at Companies House. Upon formation, a company becomes a legal individual with its own rights, responsibilities and liabilities.The process is also referred to as ‘company incorporation’ and ‘company registration’.

When you incorporate a limited company, it becomes an individual ‘person’ in the eyes of the law. Incorporated businesses are completely separate from their owners in terms of finances, liabilities, contractual agreements, and ownership of property and assets.

 

How easy is it to register a company in Dubai?

In most cases, the Dubai Company Act requires a foreign investor to have a local partner who will own the majority interest. The only places investors may incorporate fully foreign owned companies are the Dubai free zones. The company registration requiremts will be different from case to case because of the type of company one chooses to open in Dubai. According to the Company Law, investors may set up the following types of companies in Dubai:

  • – limited liability companies,
  • – private and public joint stock companies,
  • – partnerships,
  •  branch offices,
  • – subsidiaries,
  • – free zone limited liability companies,
  • – free zone establishments.

For those seeking a simpler form of doing business in Dubai, the sole proprietorship could be an appropriate choice. Depending on the selected type of company and licensing requirements, the registration procedure with the Dubai Companies Registration Office will take several days.

 

Points to be kept in mind before incorporating a business.

  1.  Select a local sponsor, a UAE national for local business startupThere are plenty of business opportunities available in Dubai, as well as in the other Emirates of UAE. However, if you really want to start a business which must exploit the potential of Dubai then you need a locally registered LLC business.

    A UAE national must be taken as a 51% partner who is called a local ‘sponsor’. A local company provides the freedom to locate the business anywhere in the city. For a business startup in Dubai, this is a boon because it affords the best choice of locations to suit your budget.

  2. Select a Free Zone if you wish to own your business 100  Free zone Company in Dubai, UAE                Keep in mind that the only way for a business startup in UAE to start without taking a UAE national acting as your partner is to locate your business in one of the Free Zones.For a business startup, Free Zones offer three great advantages
    • 100% ownership
    • Speedy startup
    • Duty-Free customs boundary.
  3. Select a Location that optimizes suitability, convenience, and costs.  You need to set up your business in an area that is most profitable for your business or most convenient to your business. 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.
  4.  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.

  5. Hire a registration agent to take you through the process of business startupHiring a business advisory firm to register your business startup may be your best option.A company registration agent will do many things for you:
    • Advise you on the right license and jurisdiction that meets your objectives
    • Prepare documents including legal documents
      – Company registration (Package)
      – Visas
      – Amendments
      – POA
      – BOD resolutions
    • Submit physically to banks, authorities
    • Monitor completion of jobs
    • Help you open a bank account
    • Facilitate and solve problems with your bank, legal issues, your jurisdiction
    • Trust and fiduciary services
    • Act on behalf of clients
      Accounting & Bookkeeping
      – Nominee
      – Bank operation in a limited way on instructions
      – Signatory
      – Manager                                                                                                                                        Simply put, a company incorporation agent will help you to maneuver through the legalities involved in starting a new business in the United Arab Emirates.                                                               visit:                                                                                                                                  http://www.namaccountants.com                                                                                                  or                                                                                                               contact us : +971-558876440

Importance of Charted Accountant

Importance of a Charted Accountants

Chartered Accountants don’t bring together any resources to create any significant economic development, they are resources themselves. Most CAs help the economy indirectly through the following activities:

  1.   Supporting in tax compliance. This includes liaison with government authorities, representing clients in courts, ensuring smooth business operations by taking over the complex tax compliance part. For example, without the CA profession, changes like GST will be very hard to implement.
  2. Financing -Creating opportunities by arranging for business finance. They are helpful in making calculations and convincing banks about the credit worthiness of entrepreneurs. On a large scale too, many CAs working with investment banks help to arrange some key business deals between organisations.
  3. Auditing – which includes the redundant but still necessary function of control procedures. This is to prevent leakages from the economy and stand vigil to check on creation of illegal properties, black money and frauds etc.
  4. Accounting – bringing together professional standards of accounting in changing business environment and to accommodate new developments in business. This ensures comparability, reliability and investor faith, which is good for the economy.
  5. General business support – a lot of other things that Chartered Accountants do can be classified as general support and consulting services. They can do this because of their knowledge about laws, taxes, compliance, financial markets, investments, valuations, banking, regulations etc. It’s too many things, but mostly for supporting roles only.
     

 

Auditors in Dubai

AUDITORS IN DUBAIAudit Firms in Dubai, silicon oasis, JLT, Jebel Ali free zone, DMCC Dubai, UAE

‘The Dedicated Financial ,Auditors in Dubai’,

Auditors in Dubai – Among the top listed financial auditors in Dubai, UAE, Nam Accountants Group has gained immense respect and popularity as top Auditors with their rich service culture embarked in the area of auditing, business accounting and management consultancy. It was incorporated as an accounting firm with a strong vision of enhancing the business health and personal wealth of its clientele spread across the globe. The auditing firms in Dubai submit audited financial statements annually for ,Auditing in Dubai airport free zones,. Our auditors in Dubai make sure that the annual financial statements are submitted three months prior to the end of the financial year. If they failed to do so, then heavy fine can be imposed on the investor. Therefore, it is necessary that you choose any one out of many reputable audit firms in Dubai. Checking the track record of the auditing firm and their current or previous clients’ feedback can give you a good idea about the reputation of the auditing firms in Dubai, UAE..

Our Vision

To ensure clients progress financially and socially.

 

Our Mission

Our service is to ensure financial security and social responsibility of a business in order to enhance confidence level in every client.

 

We are proud to announce that we are one of the top most in

  1. Adudit Firm in Dubai
  2. Auditors in Dubai, UAE
  3. Audit Firms in Jebel Ali Free Zone
  4. Audit firm in Dubai silicon oasis
  5. Audit firms in DMCC Dubai
  6. Audit firm in Dubai airport free zones

 

Audit Firm in UAE

Auditing Firms in Jebel Ali Free Zone

 

 

Chartered Accountants has earned its place as one of the most respected and trusted audit firms in Dubai, UAE by leveraging industry experience and technical proficiency in a range of corporate financial specializations, including accounting, auditing, and financial reporting, to provide clients tailored business solutions to fuel their Growth.

We go beyond providing our clients with conventional services – we customize valuable, data-based financial insight that enables our clients to bolster the cost-effectiveness of their processes and improve the allocation of their resources. Our team is composed of professionals, certified accountants and auditors in UAE, of combined experience providing auditing and consultancy services to clients in the UAE. By having a complete expert team in-house, we are able to offer a full spectrum of unified business solutions to our clients.

 

Track your finances with precision and efficiency, partner with one of the leading auditing firms in Dubai and the UAE today –

NAM ACCOUNTANTS

AUDIT FIRM IN DUBAI AIRPORT FREE ZONE

In the corporate world, business efficiency is the key to gaining competitiveness. When your business maximizes its resources, without increasing cost, you are left with more capital to spur growth and expansion. More importantly, an efficient business is able to steadily increase profit margins over time.

Give your business a competitive edge with the help of Auditors – your partner for growth and success.

DUBAI AIRPORT FREE ZONE is an ideal base to do business in the Middle East by providing a business-friendly environment, world class infrastructure, tax exemptions, and full repatriation of earning, total ownership and exceptional facilities. It is a rising hub of the country significantly known for extensive trade and commerce both in the national as well in the international arena. The demand for Auditors in Dubai Airport Free Zone is always high

Auditing in the companies can be of three types. It depends on the owner of the business that which type he requires for his company. They are:

  1. Internal Audit
  2. Statutory Audit
  3. Other Non-statutory Audit

 

For assistance please visit: www.namaccountants.com

Or

Contact +971-558876440