A company is liquidated in the UAE either compulsorily or voluntarily and it involves plenty of procedures, which should be taken care of with extreme care. Regardless of the type of business you do in the country, all business licenses and related permits associated with it must be cancelled once you make up your mind to liquidate your company in the UAE.

Cancelling license is of utmost importance, as it will inform the government authorities about the closure of your business and helps in avoiding getting penalized, once you stop renewing your license. People in a shareholding company should see to it that all liabilities towards creditors and partners are discharged.

Cancellation of business license in UAE depends on the form of company you own. Establishments and partnerships need to apply for cancellation via DED and get clearances from the following departments;

Ministry of Human Resources and Emiratisation

Directorate of Residency and Foreigners Affairs

The relevant water and electricity authority

The leasing entity etc.

In the case of companies with shares, the process is not that simple. It involves formalities that include liquidating the shares, collecting the debts and paying the creditors, prior to finalising with DED.

Companies which require a liquidator

A liquidator is mandatory if your company falls in any of the below legal forms;

General Partnership

Limited Liability Company

Simple Limited Partnership

Public Joint Stock Company

Private Joint Stock Company

Steps involved in dissolving companies

The process involves two stages:

Stage 1:

Notarised minutes of the general assembly that authorizes the liquidation of the company and the appointment of a liquidator must be prepared.

An official letter by a registered liquidator willing to accept the duty must be attained.

Filling the required form for cancellation through DED or other accepted channels.

Following this, DED will issue a liquidation certificate. The notice of liquidation must be published in two local newspapers, which gives debtors a grace period of 45 days to submit their claims.

Stage 2: Involves the following steps;

Submitting a no objection declaration letter to DED from the liquidator and the partners

Getting approvals from other government bodies

Cancelling the firm card at Ministry of Human Resources and Emiratisation and the visas of foreign partners sponsored by the company at the respective General Directorate of Residency & Foreigners Affairs

Upon submitting the documents and paying the requested fees, you can receive the certificate of deregistration (cancellation).

When you have made the decision to liquidate your company, it is always advisable to do it the right way. Failure to fulfil the formalities will not only land you in trouble, but it can affect any plans of starting a business in UAE again.

The post A Guide on UAE Mainland Liquidation appeared first on Vitta Financial Analysis & Consultancy LLC.

UAE is on a mission to combat the crisis and help its citizens face the situation and also ensure business continuity. Several relief packages and initiatives have been announced by UAE government in the last couple of weeks. To add to these, the Dubai World Trade Centre Authority (DWTCA) has unveils a series of measures to help businesses within its ecosystem.

According to Sheikh Ahmed Bin Saeed Al Maktoum, Deputy Chairman of the Board of DWTCA, “Dubai’s economy is built for resilience in scenarios of extreme global volatility and unprecedented uncertainty. DWTCA has been working actively with all stakeholders over the past weeks to support sectoral needs, and these latest measures are an enablement of broader financial relief to enable business continuity, and operational sustainability for entities housed within the FZ complex”.

The measures aim to subsidize the cost of doing business within the DWTCA free zone complex, specifically for small companies and the ones in Meetings Incentives Conferences and Exhibitions [MICE] ecosystem. Some of the measures implemented by Dubai DWTCA include;

MCE BUSINESS:

1. For organizers
   Zero cancellation and/or rescheduling fees;
   No penalties for late payments;
   Can carry forward prepaid fees as credit to next year
2. For exhibitors (DWTC-owned exhibitions)
   Complete refund on cancelled events and where new schedule is not possible for participants

RETAIL TENANTS

Up to 6-month rent-free on base rent till September 2020 for retail tenants in the Dubai International Convention and Exhibition Centre and One Central, impacted by lockdown.

SMEs and START-UP TENANTS:
Up to 3-month base rent deferment for DWTCA commercial tenants, till June 2020.

FREE ZONE BUSINESSES [effective for 3 months] 

1. 70% rebate on annual fees for all category-specific business registrations and licenses.
2. 50% rebate on annual fees for general trade licenses and registrations.
3. 0% administration fee on all visas — new, transfer and renewals.

It will take a while to get back to our normal lives. With the constant support from the government, the after effects of the pandemic can be lessened, without putting people under more pressure.

The post Dubai World Trade Centre Authority unveils measures to support businesses appeared first on Vitta Financial Analysis & Consultancy LLC.

There will be a reduction of 50-70 percent in business-related activities for companies operating in JAFZA and for new investors. The activities include registration, licensing and related administrative functions and certain online services will be offered free of cost.

According to Mohammed Al Muallem, CEO & Managing Director, DP World, UAE Region and CEO of Jafza,”It’s specifically designed to create value and opportunities for the companies to channel their resources to support their activities sustainably. We believe this forward-looking initiative will enable companies to do business in a smarter way and generate more business and create new jobs.”

“Trade has always powered Dubai’s economic development and DP World has played a central role in supporting it. The activities of our flagships Jebel Ali Port and Jebel Ali Free Zone are very closely connected with companies located there to take advantage of the world class infrastructure facilities and investment incentives and to connect to global markets.

The twin economic growth engines are examples to the world and serve as models DP World is rolling out in other locations across our network worldwide. As wealth generators, they are critical infrastructure assets that underpin prosperity and success for our nation,” said Al Muallem.

JAFZA is owned by DP world, which contributes over 33.4 percent of Dubai’s GDP. The new initiative will further enhance the ease of doing business at JAFZA along with elevating Dubai’s status as one of the global centres for commerce and trade.

The post JAFZA cuts down cost of Business-related Activities appeared first on Vitta Financial Analysis & Consultancy LLC.

According to federal Tax Authority, more than 300,000 individuals and tax groups have registered for VAT in the last two years.

The FTA received 3.2 million electric tax refund applications for tourists by the end of 2019. This shows an increase of 1.68 million applications with a growth of 110.53 percent, as compared to the second half of 2019, where 1.52 million applications were received by the end of June.

There was a 2.64-fold increase in daily average number of tax refund applications for tourists. In the first month of application, it was 372,000, which increased to 983,000 a day in December 2019.

According to Khaled Al-Bustani, the director general of the FTA, “The FTA started implementing the VAT refund mechanism for foreign visiting businesses as of last April. The mechanism has witnessed remarkable activity and steady growth in its operations.”

“The number of VAT refund requests dealt with through this mechanism reached 105, with a total monetary value exceeding AED 28.7 million, enhancing the attractive environment for investments to support economic activities,” he added.

VAT was introduced in UAE on 1^st January 2018, at a standard rate of 5 percent.

The post 2 years of VAT in UAE appeared first on Vitta Financial Analysis & Consultancy LLC.

New Products that will be levied excise tax

Electronic smoking devices and tools- 100 %
Sweetened drinks- 50 %

This is in addition to the 50 per cent tax on carbonated drinks, 100 percent on tobacco products and 100 percent on energy drinks.

Sweetened drinks that are excluded from Excise Tax

Ready to drink beverages that has at least 75% milk or its substitutes
Baby formula, follow up formula or baby food
Drinks used for medical purposes
Special dietary needs drinks
Beverages that contain alcohol as an ingredient

Any business that imports excise goods to UAE; is involved in the production of excise goods that are released for consumption in the country; stockpiles excise goods in the UAE; and anyone who is in charge of managing an excise warehouse or designated zone, must register for excise tax.

One must register for excise tax within the specified time period, otherwise it can result in fines and various other issues.

The post Excise tax in UAE appeared first on Vitta Financial Analysis & Consultancy LLC.

With the new scheme, a significant rise is expected in the tourism and real estate revenue of the country, as more people will start visiting the country and for longer durations. UAE currently provides a 90 days multi entry visa to tourists and if they wish to visit the country after the 90-day period, they need to apply again. But, with the 5-year visa initiative, people will find it much easier as they do not need to apply for visa for every visit. This will reduce the regulations and money involved in the process.

UAE is one among the most preferred tourist destinations in the world, where people flock to from various parts of the world. More than 21 million tourists visit UAE annually and around 25 million visitors are expected to be a part of Expo 2020. Expo will begin in the month of October.

Apart form being a favourable tourist destination, UAE is one among the best places to establish and flourish your business. The government of the country comes up with various plans occasionally to ease the process of doing business in UAE. 2020 will turn out to be vital year for the country, with diverse new strategies aimed at the welfare of the country and people in general.

The post UAE Introduces five-year multi-use visa for Tourists appeared first on Vitta Financial Analysis & Consultancy LLC.

Dubai International Financial Centre

DIFC is a leading financial centre in the Middle East, Africa and South Asia region. The free zone is home to more than 2000 active registered companies and around 30,000 people.

Banking, professional services, global corporations, insurance and wealth management are some of the prominent areas of business within DIFC.

DIFC has its own independent, globally regulated regulator and judicial system, common law framework, global financial exchange, tax-friendly regime, and a large business community and it aims to drive the future of finance.

DMCC

One of the fastest and largest growing free zones in the UAE, DMCC, connects more than 14,100 businesses and houses major multinationals and start-ups. The free zone is situated in the heart of Dubai and it offers world-class financial services, trading resources and investment platforms. The accessible location of the free zone makes trade with world’s key commodities market easier.

Gold, diamond, pearl, tea, agro and base metals are some of the main industry sectors in DMCC.

DAFZA

Dubai Airport Free Zone, a highly advanced and distinguished free zone, is a major contributor to Dubai GDP. The free zone is home to major international companies from diverse sectors such as electronic and electrical, IT and telecommunications, pharmaceutical and cosmetics, engineering and building materials, aerospace and aviation, logistics and freight, food and beverage, jewellery and precious stones as well as luxury items.

DAFZA launches various initiatives from time to time, to make it the most flexible and preferred location to do business. It hasn’t been long since the free zone decided to cut the business setup cost by 65 percent, a move that was appreciated by many.

JAFZA

Jebel Ali free Zone is the largest special economic zone in GCC, that plays a significant role in UAE’s economy.

JAFZA offers a perfect and flexible platform to do business, and it offers numerous benefits to its investors. The free zone became the first in the country to return cash and bank guarantees to its clients through its new Workforce Protection Programme initiative.

More than thousands of businesses from over 100 countries have established their base in the free zone and the number continues to rise.

Dubai silicon Oasis

Dubai Silicon Oasis is situated at the trade junction of Europe & Asia. The strategic location of the free zone makes it easily accessible from Dubai’s International Airport, Jebel Ali Port & Port Rashid, and central business district.

Dubai Silicon Oasis mainly houses companies that belong to Semiconductor Manufacturing, Electronic Manufacturing Systems, Microelectronics, Fabless IC Design, Test & Assembly, and optoelectronics related sectors.

Complete foreign ownership and hassle-free business setup procedures are the major highlights of these free zones.

The post Free zones in Dubai appeared first on Vitta Financial Analysis & Consultancy LLC.

A company is liquidated in the UAE either compulsorily or voluntarily and it involves plenty of procedures, which should be taken care of with extreme care. Regardless of the type of business you do in the country, all business licenses and related permits associated with it must be cancelled once you make up your mind to liquidate your company in the UAE.

Cancelling license is of utmost importance, as it will inform the government authorities about the closure of your business and helps in avoiding getting penalized, once you stop renewing your license. People in a shareholding company should see to it that all liabilities towards creditors and partners are discharged.

Cancellation of business license in UAE depends on the form of company you own. Establishments and partnerships need to apply for cancellation via DED and get clearances from the following departments;

Ministry of Human Resources and Emiratisation

Directorate of Residency and Foreigners Affairs

The relevant water and electricity authority

The leasing entity etc.

In the case of companies with shares, the process is not that simple. It involves formalities that include liquidating the shares, collecting the debts and paying the creditors, prior to finalising with DED.

Companies which require a liquidator

A liquidator is mandatory if your company falls in any of the below legal forms;

General Partnership

Limited Liability Company

Simple Limited Partnership

Public Joint Stock Company

Private Joint Stock Company

Steps involved in dissolving companies

The process involves two stages:

Stage 1:

Notarised minutes of the general assembly that authorizes the liquidation of the company and the appointment of a liquidator must be prepared.

An official letter by a registered liquidator willing to accept the duty must be attained.

Filling the required form for cancellation through DED or other accepted channels.

Following this, DED will issue a liquidation certificate. The notice of liquidation must be published in two local newspapers, which gives debtors a grace period of 45 days to submit their claims.

Stage 2: Involves the following steps;

Submitting a no objection declaration letter to DED from the liquidator and the partners

Getting approvals from other government bodies

Cancelling the firm card at Ministry of Human Resources and Emiratisation and the visas of foreign partners sponsored by the company at the respective General Directorate of Residency & Foreigners Affairs

Upon submitting the documents and paying the requested fees, you can receive the certificate of deregistration (cancellation).

When you have made the decision to liquidate your company, it is always advisable to do it the right way. Failure to fulfil the formalities will not only land you in trouble, but it can affect any plans of starting a business in UAE again.

The post A Guide on UAE Mainland Liquidation appeared first on Vitta Financial Analysis & Consultancy LLC.

Company Registration Consultants are dedicated to providing quality services and customized solutions to their clients while maintaining the highest standards of excellence in their work. With a team of expert professionals at the helm, these consultancies will not just make you sail through the business registration process, they also stay available to assist you even after you have successfully stepped on the shore.

Apart from the business set up services, Company Registration Consultant in UAE offer a host of extra benefits to their clients. These services may include: –

Assistance in selecting the right legal forms

More than a hundred legal forms are available in the market for setting a business in UAE. These include legal forms for setting a sole proprietorship company, partnership firms, branches of international companies and more. Management consultancies are aware of all the legal forms and extend assistance in selecting the right legal form keeping in mind the type of business you wish to operate in UAE.

Assistance in selecting the right Free Zone

At present, there are approximately fifty free zones in UAE. These Free Zones are isolated lands or setting with a specific taxation policy, customs, imports regime and are governed by their own framework of regulations.

Management consultancies in UAE enlighten you about the functionality, rules and regulations and legal formalities of these Free Zones companies and assist you in selecting the right Free Zone for business growth and escalated profits.

Assistance in preparing and compiling the required documents

Paperwork is one of the important practices of any industry, more so when you are just starting out. Company Registration Consultant in UAE are knowledgeable on the legalities of company formation and are well attached with a number of agencies and bureaus in the UAE so that you can get business start-up documents signed and processed in the shortest possible time frame.

Assistance in finding the perfect office space

An important aspect of company set up is to determine the most suitable location for the business to flourish. Management consultants are well aware of the industry specific areas which are fruitful and enlighten you about the location advantages and office spaces available to match your requirements.

Arranging company stamps, business cards and administrative work

Apart from assisting with front side important services, Company Registration Consultant extend secondary back end services as well. They help you arrange the company stamp, business cards and even assist you with the administrative work.

Recruitment of Staff

Human resource is among the top requirements for any company to conduct and grow its business. However, staff selection and recruitment can be tedious processes. Many Management Consultancies in UAE offer this extra service along with an array of other company incorporation services to their clients.

The post Why you should opt for a Company Registration Consultant in UAE appeared first on Vitta Financial Analysis & Consultancy LLC.

According to Sheikh Hamdan bin Mohammad bin Rashid Al Maktoum, Crown Prince of Dubai and Chairman of The Executive Council, the growth in FDI is the result of people’s confidence in the economy of the city.

“Dubai is among the top three global FDI locations, thanks to the vision of His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, which created a global investment environment in Dubai that keeps pace with the aspirations of investors, entrepreneurs and technology shifts in the region and the world,” said Shaikh Hamdan bin Mohammad.

Dubai has been successful in retaining its position as one among the most attractive cities for FDI. The city ranks third in the world, in terms of both capital flows and the number of greenfield projects. Dubai FDI, an agency of Dubai Economy-Government of Dubai, revealed the result.

“This is a proud achievement for Dubai. With the growth of talent and technology, Dubai will accelerate its drive to become the smartest and most sustainable city of the future,” said Shaikh Hamdan.

The various initiatives taken by the UAE government have played a significant role in increasing the FDI. The economy is looking forward to further boost the flow and this won’t be a challenge, considering its drastic growth in the last couple of years.

The post Dubai FDI Surges to Dh46.6 billion appeared first on Vitta Financial Analysis & Consultancy LLC.