How to obtain a professional license in the UAE?

professional license in the UAE

Before starting the process of forming your company, you need to take into account all the procedures and requirements that you must have in order to carry out any commercial activity in the United Arab Emirates. Depending on the type of your company, you can choose between four types of licenses (professional, commercial, industrial and general trading). Today, you will get to understand the professional license in UAE in depth.

In this article, you will find information about what a professional license in the UAE is, how to acquire this type of license, what documents are necessary to acquire it, who needs this license, and also how we can help you obtain one.

  1. What is a professional license in the UAE?
  2. Characteristics of a professional license
  3. What is the process of obtaining it?
  4. Step by step to get a professional license
  5. What are the necessary documents?
  6. How much is the cost of a DED professional license?
  7. The license renewal process
  8. Who needs a professional license?
  9. professional license activities
  10. Benefits of a professional license
  11. How can we help you get your professional license?

1. What is a professional license in the UAE?

Firstly, a Professional License in UAE is an official document issued by the Department of Economic Development (DED) for those entrepreneurs who carry out professional activities that depend on their mental and physical abilities to generate income.

These can be, for example, artists, designers, business services providers, auditors, accountants, engineering consultants, among others.

However, the company must belong to a single person to obtain the DED Professional License. If, on the contrary, the company belongs to more than one person, then the organization will be considered a civil corporation.

2. Characteristics of a professional license

This type of license is the only one that allows expatriates to retain 100% ownership of their company in the United Arab Emirates. However, in order to achieve this, you must hire an Emirati citizen to be your local agent.

This agent will not have any direct relationship with your business nor will it interfere, his role will be based on assisting you in the process of applying for your license and will handle the necessary legal procedures. You must keep in mind that this agent will not be responsible for any debt that your company may acquire.

3.  What is the process of obtaining it?

Before starting the application process for your license, you must make a clear description of the productive activities of your company. Then, search for a local service agent to carry out all the legal procedures for your company.

Finally, get the initial approval from the Department of Economic Development, present the name chosen for your company and submit all the required documents to the DED to get the approval.

4.  Step by step to get a professional license

The detailed steps to get your Professional License in UAE are the following:

4.1 Local service agreement

You must make the local service agreement with a UAE National and translate it with an official translator. Once translated, you must certify the agreement in a public notary.

Also, keep in mind that if you make the agreement in Arabic, then the entire translation process is not necessary.

4.2 Memorandum of Association (MoA)

The MoA is an official document that describes the data of the company and the data of the shareholders. You must complete the MoA with your local agent and you must include the sponsor’s early fee in the agreement.

4.3 Civil Company

If you are applying for a civil company license, then you will need to fill out another application form and certify it.

4.4 Public Notary

All partners involved in the creation of the company must go to a public notary and sign the agreement.

4.5 Approvals

To continue the process, you must get approval from Dubai’s Municipality for the Tenancy Contract.

4.6 Submit the documents

The shareholders must submit all the forms (duly certified and with a copy of each one), the passports of each partner, and the No Objection Certificate for an expatriate partner (if any).

4.7 Pay the fees

Make the payment for the entire process and receive your license, the DED will give you a payment voucher at the same time.

5. What are the necessary documents?

The necessary documents for the application of your Professional License in Dubai and  UAE are the following:

  • The application form duly filled out
  • Copy of the local partner’s naturalization book
  • Visitor’s visa of the foreign shareholders
  • A No Objection Certificate from the local agents of the foreign shareholders if the expatriate has an employment visa. If the shareholder has a visitor’s visa, then their ID number is needed.
  • The initial approval of the relevant government authorities depends on the productive activity of your company. For example, Dubai’s Municipality, Road and Transport Authority, National Media Council, among others.

5.1 Necessary documents to submit to Tenancy Contract

  • Rental contract
  • Ejari registration
  • Name reservation certificate
  • Initial approval from the DED
  • A prescribed application form (BR1 form)

6. How much is a DED professional license?

Generally, the Professional License costs AED 10,310 and includes the following:

  • Administrative Services fee
  • Trade Name Fees
  • Professional License Fees
  • Local Agents Feel
  • Market Fees
  • Local fees
  • Government cultural fees

Additionally, it is important to realize that a shareholder in a Professional License (civil) company must pay an amount of AED 20,000 as a security deposit.

If a person decides to apply for the license without a partner, then they must pay the amount of AED 10,000 as a security deposit. Please note that the cost of the Professional License may vary from time to time.

7. The license renewal process

Depending on the productive activity of your company and the economic jurisdiction to which it belongs, you must approach the relevant government authorities and renew your license every year. The shareholders must submit the necessary documents and make the payment of the License Renewal Fee to the authorities.

The steps you must follow to renew your Professional License in UAE are the following:

  • Keep your tenancy contract up to date, it must be valid for at least 3 months from the date of the renewal application (It is recommended that you renew the tenancy contract before carrying out the renewal process for your license)
  • Get the approval of the relevant authorities to receive the renewal.
  • For a Professionals License, it is not necessary to get extra approvals from additional authorities.
  • Submit the Ejari certificate, the valid tenancy contract, the renewal form duly filled out, and also any other documentation requested by the Department of Economic Development.
  • Make the payment through the relevant channels and receive your renewed trade license.
  • Receive the payment voucher and the transaction number.

8.  Who needs a professional license?

Those interested in offering professional services such as Tourism guidance, auditing, designing, consulting, accounting, research, or any other activity related to skills, talent, or experiences, must acquire a Professional License if they want to work in the UAE.

By holding a Professional License, you are legally authorized to work and offer your services to any client, employer, or customer in the United Arab Emirates. Also, you have the right to carry out activities according to your area of ​​expertise and qualifications.

Offering professional services requires experience, skills, and talent to carry out certain activities that meet the quality standards established by the government entities of the United Arab Emirates and by your own company.

Although the Professional License in UAE covers a large number of activities, certain activities require additional approval or authorization from certain government agencies.

These agencies are established with the objective of managing and regulating industry standards, maintaining health and safety, and also ensuring that services are only offered by authorized professionals who adhere to the compliances and regulations of the respective ministry.

9. Professional license activities

Any person who decides to start a commercial or business activity will need a Professional License. The Department of Economic Development has created an administrative system that separates licenses into categories. Consequently, this allows a better opportunity at regulatory and constructive facilities.

Some of the activities that you can do with a professional license are the following:

  • Teachers and educational professors
  • Lawyers and legal advisors
  • Accountants, financial advisors, and auditors
  • Technical services
  • Medical representatives
  • Business consultants
  • Printing and publishing
  • Consultancy services
  • Carpentry and artisan activities
  • Management consultancy
  • Architectural consultants
  • Entertainment artists
  • Advertising professionals
  • Technology services
  • Beauty salons
  • Repair services
  • Educational training services

Only the most common activities that need a DED Professional License appear in this list. If you are interested in seeing the complete list of activities that require this type of license, you can always go in person to the offices of the Department of Economic Development or you can check their website.

However, it will always be a better option to hire a business setup company or a business consultant, such as Connect Zone, to gather all the information you need and help you choose which license best suits your business needs.

10. Benefits of a professional license

Possessing one of these licenses brings with it multiple benefits, some of which are the following:

10.1 Cost-effectiveness

Possessing one of these licenses will allow you to save money in the long term since you will be able to establish the offices of your company in any part of Dubai, which neutralizes the ties with any lease contract or with any authority. In this way, you can enjoy the freedoms of a Limited Liability Company (LLC)

Most startups decide to use serviced offices or co-working offices to have enough time to get their licenses. This will allow new businesses to have easy access to the workplace while reducing the high costs of forming a company.

The current market fee is 2.5 percent, which makes this option the cheapest.

10.2 A large number of activities

This type of license is not aimed at a select group of activities or businesses, on the contrary, it covers various sectors. Day by day, the list of activities under the DED Professional License increases, which greatly facilitates obtaining this license.

If you are interested in starting a company, there is a high probability that the business idea you have is already supported by the government entity that is in charge of delivering the Professional Licenses.

10.3 Foreign companies involvement and an adaptable market

As mentioned above, this type of license allows shareholders to maintain 100% ownership of their companies in Dubai. Another key point is that you can maintain the daily operations of your company without the need to use a local shareholding party, which is sponsored and made up of mostly UAE citizens.

In addition, with the help of this license, you will have the opportunity to meet, invest and trade in different places and with different clients. You will also be able to offer services to your clients and achieve important contracts with other companies.

Note that this includes those agencies that have ties to the UAE government and other educational institutions.

11. How can we help you get your professional license?

Going from being a novice entrepreneur to a successful businessman is the dream of every person who decides to invest in Dubai.

Over the last few years, the United Arab Emirates has become the quintessential region for job opportunities, and every month hundreds of people take the risk of starting a business. However, they do not go through this process alone, investors often hire specialized company formation agencies, such as Connect Zone, to guide them through the process.

At Connect Zone, we will be your trusted link with government entities. We will take care of being your local agent to carry out all the necessary paperwork and we can even help you find a list of business centers in Dubai for your offices.

Do you want to know more about us and the Professional License in the UAE? You can contact the following email: contact@connectzone.ae. Then, one of our advisers will answer all your concerns.

Also, if you would like to obtain a job in our firm, go to thetalentpoint.com and submit your application. In addition, you can contact the following email contact@thetalentpoint.com and send us your CV. We keep your information safe, as we do not store it or share it.

 

How to set up an industrial company in Dubai?

industrial company

The diversification of Dubai’s economy opened up a gap to new methods of income. Among them, the industrial company is an important asset in this Emirate. A strategic location, state-of-the-art equipment, and a successful market set Dubai a perfect center for establishing manufacturing companies of any category.

In this article, you will learn all about setting up an industrial company in Dubai. Plus the long list of business activities you can do. On the other hand, you will find out what steps to take to make the process run smoothly. Moreover:

  1. What types of activities are manufacturing companies in Dubai engaged in?
  2. Why should you start an industrial company in Dubai?
  3. Where is the best area in Dubai to start an industrial business?
  4. How to open an industrial business in Dubai?
  5. What can you do with an industrial license in Dubai?
  6. How much will it cost to form an industrial business and obtain an industrial license?
  7. How can we help you in the UAE VAT Registration process?

1. What types of activities are manufacturing companies in Dubai engaged in?

Dubai is famous for its wide economic activities’ diversity. Foreign investors see the Golden City as a zone for establishing manufacturing companies. That is to say, enterprises aimed at manufacturing products from raw materials, focusing on the use of machinery rather than human power.

Therefore, the idea of industrial companies is to create as many goods and services as possible through automated systems using the UAE’s tech developments. On the other hand, there are multiple types of activities performed by industrial companies in Dubai. These can be:

  • Base metal engineering
  • Chemicals
  • Transportation
  • Food and beverage
  • Machinery
  • Mining
  • Energy
  • Textile

There are other types of companies that work with product manufacturing in Dubai like clothing, hardware equipment, or hydrocarbons. However, companies linked to oil, gas, and telecommunications do have some restrictions when it comes to 100% ownership. Of the rest, all manufacturing companies keep the same benefits, rights, and duties.

2. Why should you start an industrial company in Dubai?

Dubai is a world-class financial center. Any foreign entrepreneur wishing to start an industrial company in Dubai should know the following key points about business setup in Dubai:

  • Strategic location: Dubai is a city with two of the best international airports and world-class infrastructure allowing investors to access the city with ease.
  • Local and foreign talent: There is a wide range of local professionals ready to run the machinery of a manufacturing company. Furthermore, the UAE’s pro-migration policy allows entrepreneurs to access a highly trained pool of foreign talents from anywhere in the world.
  • Foreign Investors market: Dubai is one of the best investment cities in the world. Therefore, UAE authorities have flexible policies for company formation. Consequently, the rules and guidelines allow investors to establish themselves with ease and have high levels of productivity.
  • Broad customer base: Dubai’s large population, coupled with its successful market, allows access to a wide variety of customers. In addition, its strategic location allows access to consumers in the Middle East, Africa, and South Asia which may allow for future expansion into other markets

2.1 Other key points to consider are:

  • One of the lowest tax rates within the Middle East territory
  • Easy access to logistics equipment and means of transport for products and goods
  • Economical foreign and domestic labor force.
  • High-class infrastructures such as business centers, warehouses, and offices
  • Low cost of resources and energy sources. In addition, Dubai promotes green manufacturing. Resulting in an environment that seeks to promote more environmentally conscious companies.
  • Constant market development and growth. Providing new opportunities for local entrepreneurs.

3. Where is the best area in Dubai to start an industrial business?

Throughout Dubai, there are multiple Free Zones dedicated to business start-ups like Dubai Multi Commodities Centre (DMCC). However, if your vision is to start an industrial business, it is best to do it in Dubai Industrial City.

Since its launch in 2004, Dubai Industrial City (DIC) is home to more than 500 operational local and international companies. Thanks to its robust infrastructure, tech resources, and competitive enterprise structures and services, DIC aims to be a hub for manufacturing companies to grow with ease.

The DIC is located between Al Maktoum Airport and near Jebel Ali Port. In addition, the area has total free traffic driveways connected to Sheikh Mohammed Bin Zayed Road and Emirates Road. It allows access to different types of company structures such as LCC structure, branches, and subsidiaries according to the owner’s license.

Likewise, the DIC guidelines permit maintaining 100% foreign ownership; it has no personal income or corporate taxes and allows full repatriation of invested/generated assets and capital.

4. How to open an industrial business in Dubai?

Although there are very few restrictions for opening an industrial business in Dubai, the procedure is quite simple. All you have to do is to follow the next 10 steps to the letter:

4.1. Choose the type of industry

To get started in the Dubai industrial market, it is necessary to define your industry sector. In other words, choose the appropriate product you would like to develop.

4.2. Find a local partner

Secondly, you should look for a local partner to help you establish your Gulf business easily within the UAE. In this way, you will gain an ally within Dubai who can advise you 24/7.

4.3. Pick a trading name

The next step is to select a name that fits your corporate identity and Dubai’s guidelines on the subject. Remember to avoid abbreviations, religious references and, if you use a proper name, it should be that of the owner or a shareholder.

4.4. Initial approvals

To get started, you must obtain initial approval from the Department of Economic Development (DED). You will need to provide a copy of your passport and your detailed business plan to open your industrial company in Dubai. This will allow you to get approval on your trading name and future requirements.

Likewise, it is important to note that you will require some extra permits according to the type of business. For example, some industrial activities may be harmful to humans and the environment. Therefore, it is necessary to obtain additional approvals before setting up in Dubai.

4.5. Post Approval Memorandum of Association

After obtaining approval for the product and trading name, it is time to sign the Memorandum of Association (MoA). For clarification, a draft of the MoA should be taken to the notary’s office for owners and shareholders to sign before submitting it to the DED.

4.6. Get a signed NOC

After submitting the required documents, you must obtain a NOC. The No Objection Certificate will allow you to start your manufacturing company operations as soon as possible. For this, you will need a NOC from the Ministry of Economy and Trade. You can obtain it by attaching the necessary documents.

4.7. Locating a commercial space

Choosing a warehousing space or a commercial office is critical. You must choose a location and look for a space to rent or buy. One of the biggest advantages that Dubai has is the wide variety of spaces equipped for industrial businesses.

Also, remember to look for a space that meets the construction measurements according to Dubai regulations. To get a trade license further on, virtual offices are not permitted.

4.8. Ejari and tenancy contract

After choosing the commercial and warehousing space, you must obtain your Ejari registration, the tenancy contract, and a barcode for future reference. Each one will be unique and unrepeatable.

4.9. Last requirements and approvals

Depending on the type of activities and products, you will need to obtain additional permits. For example, obtain approval from the Dubai Municipality and a NOC from the civil defense. This will help you to obtain an industrial clearance.

Similarly, depending on your product, you will also need different approvals. For instance, food control, narcotics department, or Dubai police could be some of the cases.

4.10. Get a valid trade license

Once all the requirements have been met, the only thing left to do is to opt for a trade license. In the case of manufacturing companies in Dubai, the most advisable is to opt for an industrial license.

4.11. Apply for a residential visa

Because you will need a physical workspace, it is essential that you apply for a visa. Depending on your purchasing power it can be a short-term visa, i.e. 3 years, or a Golden Visa which has a longer duration.

5. What can you do with an industrial license in Dubai?

There are three different types of trade licenses in the UAE (industrial, professional, and commercial) and each covers a different set of activities.

Therefore, the industrial license allows its holder to work within the manufacturing industry with freedom focusing on sectors such as food, textiles, metallurgy, heavy equipment and engines, hydrocarbons, and paper.

Getting an industrial license is the final step before opening an industrial business in Dubai because it is the one that guarantees that the business owner has fulfilled all the requirements to operate in the UAE. The license is yearly renewable

5.1 How can you get an industrial license in Dubai?

Among the steps to follow are:

  • Obtain the appropriate permits from the Dubai authorities.
  • After three months from the receipt of the authorization, you must apply for your license through DED.
  • The DED intermediary will notify you of the status of your license within 15 days.
  • Obtain a permit from the city council to build or modify the manufacturing business space. You will also need approval from the Chamber of Commerce and Industry, the Industrial Registry, and the Ministry of Health.
  • Submit the required documents according to the specifications

6. How much will it cost to form an industrial business and obtain an industrial license?

Dubai’s policies ensure that the company formation process is fast and cost-effective for both foreigners already resident in Dubai and newcomers.

In this regard, the total cost of manufacturing company formation can vary from AED 9,000 to AED 15,000. On the other hand, the license fee can range from AED 10,000 to AED 50,000 annually.

7. How can we help you to set up an industrial company in Dubai?

To sum up, starting an industrial business in Dubai is a perfect option to enter the Emirati market. If you know your product well and have a structured business plan, it is possible to start operations in a short time. At Connect Zone we have more than 20 years of experience helping local and foreign investors to set up their business in Dubai.

Our team is ready to assist you during every stage of the company formation. In addition, we can provide you with bookkeeping services, VAT registration systems, and consultancy services. Likewise, if you are interested in long-term residency in the UAE, we also offer specialized visa services to help you obtain your residency quickly, easily, and cost-effectively.

Would you like to contact Connect Zone to help you set up an industrial business in Dubai Mainland or Free Zone? If you have any questions, call us on +97143316688. Likewise, you can email us at contact@connectzone.ae, and you will talk to one of our representatives who will answer your questions.

In addition, to receive extra information attach your CV or resume to thetalentpoint.com. There is no need to worry, your personal information will not be stored or shared.

The Gulf Business: How to cope with the challenges of the off-season?

Gulf business

The ongoing pandemic has affected the finances of many companies in the UAE, especially seasonal ones (tourism, events, entertainment). Nonetheless, with the end of the COVID era in sight, this recession seems to be coming to an end too. Each tome more foreign investors are looking forward to establishing a Gulf business.

In this article, you will discover the various challenges faced by Gulf Business due to both off-season and sanitary restrictions. In this way, you will be able to create effective plans and strategies.

  1. What is the GCC and what is Gulf business?
  2. What is off-season and how does it affect Gulf business?
  3. Which ones are the possible challenges Gulf business faces during the off-season?
  4. What are possible solutions to the work challenges faced during the off-season?
  5. How can you establish a Gulf business in easy steps?
  6. Ensure the growth of your Gulf business with business advisory
  7. How can we help you set up a Gulf business?

1. What is the GCC and what is a Gulf Business?

The United Arab Emirates is one of the most prosperous countries within the Persian Gulf. Nonetheless, much of UAE’s financial success is due to its membership in the GCC.

The Gulf Cooperation Council (GCC) is a group of Persian Gulf countries focused on improving their culture, politics, economics, and economy in a unified way. That is to say, it is a conglomerate of nations seeking to achieve common goals based on their cultural and political similarities.

Some of its members include Saudi Arabia, Kuwait, Qatar, Oman, Bahrain, and, finally, the United Arab Emirates. Thanks to their flexible economic policies, country members have become investment hubs for local and foreign business owners, especially the UAE. Offering a 5% income tax rate, the UAE attracts a large number of investors every year.

Therefore, thanks to its low VAT rate and company formation packages, the UAE is thriving. Consequently, multiple investors come to the UAE to create companies of different nature, also known as Gulf businesses. To clarify, a Gulf business is an enterprise established within a GCC country, abides by the economic guidelines of the GCC.

2. What is off-season and how does it affect Gulf Business?

Within the UAE, there are businesses with a wide range of activities. From textile business industries to event management agencies, you can find any type of company in the country. However, there is one type of company that is affected by the seasons, national holidays, and even the product they offer. That is seasonal Gulf Business.

In other words, a seasonal Gulf business offer products and services deeply related to a seasonal period of the year. Their production and sales peaks depend on the season, climate, and holidays. For instance, hotels, tourist facilities, or agricultural companies are seasonal Gulf Businesses.

In this sense, the off-season in the UAE is the lowest season, affecting both seasonal and non-seasonal businesses. These are periods when the productive capacity decreases considerably, affecting the processes and the business processes.

In the UAE, this period is mainly in summer. This is due to the celebration of Ramadan and the rise in temperatures in the Emirati territory often causing a brief recession in seasonal Gulf business which, if not properly prepared, could suffer serious consequences further on.

3. Which ones are the top 6 possible challenges Gulf business faces during the off-season?

Gulf Businesses face multiple challenges throughout the year, especially seasonal ones. The list of challenges is extensive but to sum it up, there are 6 main commonalities between seasonal and non-seasonal that can help you develop a functional business analysis later on. These obstacles are related with:

3.1. Relationships

Business relationships with suppliers and retailers are fundamental to company growth. Nonetheless, during the off-season, relationships between Gulf business and its suppliers can be affected due to low orders and decreased production.

3.2. Costumers

When starting a Gulf business, it is often difficult to attract new customers. In this case, the biggest challenge is not to attract new customers but to create loyalty among the current customer base to avoid losses during the off-season.

3.3. Planning

The planning stage is important in any Gulf Business functioning. It is not only essential to plan the actions to be taken in the off-season, but also to create strategies that fit the needs, goals, and performance of the company.

In the same way, it is necessary to find a strategy that allows taking full advantage of the peak season.

3.4. Alternative income

A Gulf Business that focuses on a single financial activity may face several problems during the off-season. However, diversifying activities without the right advice could be more problematic.

3.5. Operations

One of the latest challenges is production and manufacturing. Among them, declining production capacity, a decrease in investment capital, and a drop in personnel productivity are some of the operational challenges facing Gulf Businesses.

3.6. Consultancy and advisory

Finally, one of the strongest challenges is to find the right consulting and advisory services. Starting a business in the UAE without the right advice is complicated. There is a wide variety of new rules, laws, and UAE Company structures guidelines that foreign business owners must understand first. So, the right counseling is a must.

3.7 What are the other common challenges Gulf Business faces during the off-season?

In addition to the off-season, Gulf businesses, new and old, face other types of challenges throughout the work year in the UAE. Among them are:

  • Operating in a jurisdiction that fits the company’s needs
  • Finding a comfortable and cost-effective business center
  • Language barrier
  • Growing familiar with Islamic culture and traditions
  • Measuring production time and scope
  • Understanding tax laws and regulations
  • Obtaining a long-term visa, e.g. a Golden Visa and work permits.
  • Create long-lasting ties with local and international suppliers

Knowing the different challenges can make the difference between creating a successful Gulf Business and a faltering one.

4. What are possible solutions to the work challenges faced during the off-season?

Although the list of off-season challenges is long, they are not impossible to overcome. On the contrary, there are several solutions that you can apply to solve from the smallest flaw to prevent even bigger mistakes. Points by point, the solutions you can apply in your Gulf business are:

4.1. Create and maintain good relationships with your retailers and suppliers.

Building good relationships with your suppliers and distributors will allow you to weather the off-season better. For example, you can arrange for smaller orders to be placed at the end of the season. Also, have inventory delivered by the end of the peak product season by prior arrangement.

In this way, your Gulf business will have a large stock reserve and your distributors and suppliers can save money on storage, transportation, and warehousing.

4.2. Building brand loyalty

A good customer comes up with successful branding strategies. Using resources such as social media and mass media can help you attract new customers. However, solid branding allows you to build customer loyalty and transform them into repeat customers. In addition, provide them with a unique experience with every purchase.

4.3. Plan operations during each season.

Both low and high seasons are times that must be planned for a Gulf Business to succeed.

In other words, invest in your stocks and increase working hours to generate more capital during the peak season to produce a reserve that will protect the business during the off-season. Rely on your expertise and the objectives of your Gulf business.

4.4. Diversify the company’s revenues

During the off-season, production becomes slow. Therefore, relying on a single product or service can cause challenges in the process. Consequently, it is highly recommended to find different forms of income that are derived from the main product. For example, an event management agency can offer courses on micro-events planning during the off-season.

4.5. Avoid closing during the off-season

Despite the reduction of activities, it is possible to continue working for a while. A great alternative is generating off-season expectations that create interest in the audience. Among the options, you can create marketing campaigns and deals that keep the bar high for your customers and suppliers.

4.6. Find the right business advisory

Performing a business analysis of your business can make the difference between surviving the off-season and generating massive losses. Using a consulting, auditing, and accounting firm can help you create effective action plans. On the other hand, it will help you better understand the UAE financial ecosystem and improve your bottom line, reaching new horizons further on.

5. How can you establish a Gulf business in easy steps?

Now that you know more about the pros and cons of setting up a Gulf Business and working during the off-season, there are a few steps to follow.

To be clear, entering the Emirati economic market is relatively simple thanks to the wide variety of flexible options. Nevertheless, to do so, it is important to follow a series of steps first. However, the steps are simple and quick. This indicates that you will be able to have your gulf business in the UAE in a very short time. In general terms, the common steps you should accomplish are:

  • Delimit the nature of your Gulf Business
  • Apply for a license according to your activities (Trade, Service, or Industrial).
  • Choose a suitable workspace
  • Get a residence Visa. Some of the different options are Freelancer, Golden, or Property Visas.

6. Ensure the growth of your Gulf Business with business advisory

Finding the right advice can help your Gulf Business survive before, during, and after the off-season. An advisory firm is a good option to learn more about:

  • Business activities consulting
  • Corporate compliance matters:
  • Investment guidance
  • Creating marketing and sales strategies
  • Tech consultancy

7. How can we help you set up a Gulf Business in the UAE?

Establishing a Gulf Business is an excellent idea if you know the issues to be faced. The UAE is an investment paradise, no matter the challenges to overcome.  Setting up a successful business in Dubai, Sharjah or any of the Emirates Mainland or Free Zones can be easy thus the UAE welcomes foreign investors with open arms.

At Connect Zone, we are ready to reach out to you during the company formation process. With 20 years of experience in the UAE market, we are prepared to assist you in finding the right bookkeeping team or VAT registration, taxation, and consultancy services.

Likewise, our Local Partner services allow you to get in touch with a reliable local agent who specializes in UAE business setup.  In the same vein, our team is ready to fulfill your company’s needs and obtain a residential visa in a short time, providing you with expert service and support 24/7 at the best price.

Would you like to contact Connect Zone to help you set up a Gulf Business cost-effectively? Give us a call at +971 43 316 688. We will answer any questions you may have about the process and our services. Moreover, you can send an email to us at contact@connectzone.ae. One of our representatives will write you back to answer your questions as soon as possible.

Lastly, if you want to receive extra information, attach your resume or CV to thetalentpoint.com. Do not worry, your personal information will not be shared or stored in our database.

DMCC Free Zone Company/Business Setup – the Ultimate Guide

Business Setup in Dubai Freezone

Dubai is indeed a haven to unlock any company’s potential. Likewise, the Free Zones in Dubai offer entrepreneurs a destination to thrive. In this regard, the Dubai Multi Commodities Center, also known as the DMCC Free Zone, stands out as a favorite among investors, offering them an easy alternative to create thriving organizations within the UAE.

In this article, you will take in everything about the DMCC Free Zone business setup and learn why the DMCC Free Zone is the best option to start a general trading company from scratch and how to get a quick rise in the Dubai business market. Let’s observe:

  1. What does DMCC stand for in Dubai?
  2. DMCC Free Zone vs. other Free Zones
  3. Activities and products allowed in the DMCC Free Zone
  4. Why start a business in the DMCC Free Zone?
  5. Set up a company in the DMCC Free Zone successfully
  6. the DMCC Free Zone Company setup cost
  7. How can we help you with the DMCC Free Zone Company setup process?

1. What does DMCC stand for in Dubai?

One of the UAE’s most successful strategies to attract foreign investors to its borders was the creation of Free Zones. These customs-free areas are geographical space within an Emirate that permits different business activities. In the same vein, Dubai has several Free Zones, being one of the most famous the DMCC Free Zone.

Dubai Multi Commodities Center (DMCC) is one of 20 different Free Zones that exist all across Dubai. This entity is the largest Free Zone in all the UAE and has several awards for its rapid financial development.

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The DMCC Free Zone was established in 2002 to provide local and foreign investors a place for business growth, becoming a global commodity trading hub. Likewise, in 2021, it broke records by reaching 18,000 registered companies, turning into “the world’s fastest-growing Free Zone” according to the Financial Times fDi Magazine for the fourth time in a row.

2. DMCC Free Zone vs. other Free Zones

When it comes to general trading business setup, more than 170 companies choose the DMCC Free Zone as their preferred business destination. Also, it offers entrepreneurs multiple options of physical workspaces, a thriving market, and a high-level infrastructure to establish their businesses.

Located in the heart of Jumeirah Lake Towers, the DMCC Free Zone has become the most well-known free zone in Dubai. Although Dubai Airport Free Zone (DAFZA) or Dubai Silicon Oasis Authority (DSOA) can be great options for company formation too, the DMCC Free Zone is the most competitive jurisdiction in Dubai.

To sum up, the DMCC Free Zone is a top choice for investors, multinational companies, and small enterprises due to the extensive list of trading and business activities it has to offer. From precious metals trading to cryptocurrency organizations, the DMCC Free Zone is the perfect destination for any general trading company.

3. Activities and products allowed in the DMCC Free Zone

As a general trading hub, the DMCC Free Zone permits companies to establish themselves without problems. However, by being an area focused on general trading, they have a long list of products that can be traded within the Free Zone jurisdiction and outside the UAE.

Some of the most important are:

  • Vehicles and automotive parts trading
  • Food and groceries
  • Water
  • Clothing, accessories, and shoe trading
  • Medical supplies and medicines
  • Heavy machinery
  • Gold
  • Precious metals and stones
  • Industrial materials for laboratories
  • Tools for the creation of films, TV, and radio programs
  • Computer parts and software development equipment

3.1 Business activities

On the other hand, the list of activities is not far behind. Among some of the activities that can be carried out within the DMCC Free Zone are:

  • Insurance Brokers
  • Consultancy services
  • Web-design
  • Software development
  • Accounting
  • Bookkeeping
  • General production services
  • Fashion and graphic design
  • Photography
  • Event management
  • Real Estate Brokerage
  • Traveling and hotel counseling
  • Construction
  • Energy
  • Shipping services

The list goes on and on. Therefore, there is a huge amount of products and business activities that you can perform within the DMCC Free Zone; you just need to find the suitable one for your company.

3.2 Cryptocurrency

One of the new activities recently added to the long list of trading assets is cryptocurrencies. In this way, the DMCC authorities allowed thousands of crypto-entrepreneurs to establish a new precedent never seen before in the Emirati territory.

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As a result, the creation of the DMCC’s crypto center allows obtaining a license to work with cryptocurrencies. But, in order to operate, list, and trade any cryptocurrency it is necessary to obtain a license first.

Therefore, the crypto activity licenses granted by the DMCC Free Zone are:

  • Distributed Ledger Technology Services: Allows business owners to offer data management and ancillary services based on distributed ledger tech like Blockchain. However, trade-in activities, currencies and cryptocurrencies exchange, brokerage, payment processing or any other type of financial activity is not allowed with this license.
  • Trading activities in Crypto-communities: Allows carriers to exchange crypto-assets in applications that allow it. Nevertheless, any type of financial activity such as banking, brokerage or financial services, payment processing, or providing storage space is prohibited.

Also, the DMCC Free Zone is the only Free Zone in the UAE that allows cryptocurrency trading. Therefore, if you are an entrepreneur with an eye towards this digital currency, DMCC is the perfect spot to establish a business.

4. Why start a business in the DMCC Free Zone?

Starting a business in the UAE is an easy process if you choose a Free Zone that suits your company’s goals and business plan. Therefore, the DMCC Free Zone grants wide access to one of the most prosperous financial hubs in the world.

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With a strategic location, flexible taxation, and thousands of tourists visiting it each year, the DMCC Free Zone offers large and small entrepreneurs a place to thrive in a short time. Consequently, the DMCC Free Zone company setup is a complete package of options for any type of investor, enterprise, or start-up.

Likewise, opening a general trading company in the DMCC Free Zone is a perfect alternative for those businesses focused on importing and exporting goods. Thanks to its strategy focused on the global trade of goods, it is a perfect destination for entrepreneurs who wish to succeed in the UAE trade market.

Among other benefits this free zone has are:

  • 100% company ownership
  • Less likelihood of capital loss by allowing full repatriation of assets.
  • No corporate, import, or export taxes
  • Multi-activity licenses
  • A long list of trading activities
  • Possibility to perform the business setup process remotely
  • Quick and simple licensing process
  • Possibility to opt for an investor’s Visa for yourself, your beloved ones, and your business partners
  • Access to multiple workspaces such as Flexi desks, storage units, and service offices
  • Opting for a 3-year residence visa

5. Set up a company in the DMCC Free Zone successfully

Now that you know more about the DMCC Free Zone and its benefits for foreign investors, it is time to take that life-changing decision and set up a business in one of the most thriving Free Zones all over Dubai.

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If you are thinking of establishing a new company or a subsidiary in the DMCC Free Zone, the business setup process is very simple. Moreover, the whole procedure is designed to be fast, clear, easy, and, above all, cost-effective.

5.1 Delimit your company’s activities and apply for a license.

Any organization or business that wants to establish in the DMCC Free Zone must opt for a license in accordance with the nature of its operations. There are different kinds of licenses you can apply for. Among them are:

  • Trade License
  • Service License
  • Industrial License

Each one has specific requirements on the activities that can be performed under it. However, they can include 6 different activities in the same area. Likewise, the DMCC Free Zone’s licenses can have 1, 2, and 3 years validity.

5.1.1 Dual License option

On the other hand, one of the major benefits of opting for a license in the DMCC Free Zone is the possibility of obtaining a Dual License. This type of license allows entrepreneurs to extend the business to the Mainland without resorting to a partner.

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Similarly, the dual license allows investors to set up a branch outside the free zone. It is also an economical and time-efficient option. However, to obtain a Dual License it is mandatory to have any of the DMCC licenses and a mainland license.

5.2 Applying online

The DMCC Free Zone allows business owners to fulfil the complete company formation process online. To do so, you must submit the filled application form, a valid trading name, pay an AED 1,035 initial application fee and submit your application through the Free Zone website.

5.3 Filing the documents and paying the fees

One of the last steps in setting up a company in the DMCC Free Zone is to file the appropriate documents and pay the registration and license fees.  Among the documents you will need are:

  • Copy of passport
  • Utility bill
  • CV or resume
  • A detailed business plan of the different activities of the company

Other documents you might need are:

  • Copy of parent company documents
  • UAE Residence Visa or Emirates ID copy (if applicable)
  • Company’s valid address in the DMCC Free Zone (post-registration)

5.4 Choose a suitable workspace for your business

Finally, it is essential choosing a workspace to give a physical address to your business within the UAE. There is a wide range of facilities that you can buy or rent. Also, there are different types of spaces that you can occupy, including single units to multi-store.

Nevertheless, there are multiple options for large and small companies. You also have options for a warehouse facility, an executive office, and a service desk.

6. DMCC Free Zone Company setup cost

As one of the most competitive Free Zones out there, the DMCC Free Zone company setup price can be a little higher than usual. However, it is still affordable for start-up owners, executives, and entrepreneurs.

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Consequently, the business setup should cost around AED 50,000 in total. There is also the possibility of opting for DMCC company formation packages to speed up the process and decrease costs. However, the price may vary according to the needs of each company and the license the organization requests

7. How can we help you in the the DMCC Free Zone Company setup process?

To sum up, the DMCC Free Zone is one of the best alternatives to establish a business. As a possible location for your business, it has multiple growth options to offer you. In addition, it is perfect to create a home. With thousands of places, experiences, and cultures to know, the DMCC Free Zone is a place to recreate, work, and achieve a better lifestyle.

Therefore, if your new goal is to settle in the DMCC Free Zone, at Connect Zone we are more than ready to reach out to you. Our expert team is prepared to assist you 24/7 during the company formation process, guaranteeing the best results in a short time and at the best price in the market.

Of course, you will also need advice after settling in the UAE. In that case, we are ready to help you with our Pro services. Moreover, we offer different Freelancer Visas services in case you are a remote worker with a view to settle in the UAE soon.

Would you like to contact Connect Zone to help you open Dubai free zone and across the UAE? In case you have any questions, call us on +971 43 316 688. Moreover, you can email us at contact@connectzone.ae, and you will talk to one of our representatives who will answer your questions.

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