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    • Mainland
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  • Services
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    • Bank Account Opening
    • Compliance
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EzonePanelAdmin

How to start your Tourism Business in the UAE

March 15, 2023 //  by EzonePanelAdmin

map of the world

How to start your Tourism Business in the UAE

Samantha Simms

Samantha Simms

Business Setup Consultant

15 March 2023

Despite the challenges of 2020, The UAE, especially Dubai,  has made an impressive recovery in terms of its tourism business. Between January and May 2022, 6.17 million international overnight visitors flocked to this vibrant destination which was a staggering 197 percent increase compared to 2019. 

At the inaugural City Briefing of the Department of Economy and Tourism (DET),  over 1,200 industry executives were in attendance, representing sectors such as aviation, travel, hospitality, and retail.  The Director General of DET, His Excellency Helal Saeed Almarri has praised the exemplary vision of His Highness Sheikh Mohammed bin Rashid Al Maktoum for propelling Dubai to success. This can be seen in the nation’s strive towards becoming the primary economic and tourism investment hub in the world. 

Seeing a remarkable rise in the tourism industry, there has been a surge in Dubai’s hotel occupancy rate from 62 percent in 2021 to an impressive 76 percent between January and May of 2022. According to data from STR, one of the world’s leading hospitality analytics firms, this places Dubai far ahead as global No.1 for hotel occupancies when compared with international cities like New York (61%), London (60%), and Paris (57%).

Through Expo 2020, the UAE is converting this momentum into growth in all tourism aspects – from cultural heritage to culinary delights – with a determination towards making it “the most visited destination and city of the future” providing an unparalleled living and working experience.

How to Start

To encourage more travelers, the UAE government has eased restrictions attracting more people, and making UAE an investment-worthy and tourist-friendly destination. As a significant economic driver, tourism is expected to reach US$1,285.00 million in 2023.

With the numerous advantages and licensing options of doing business in the UAE, especially Dubai, there’s no better time to start a Travel and Tourism company. Let’s get to know more about the license options and how you can get started now.

What You Need to Know?

approved license
What is a Tourism License?

A Tourism License is needed for business establishments that operate in the travel and tourism sector to provide services to travelers and locals.

The types of Tourism licenses have their own features and certain activities are subject to approval.

Inbound Tour Operator License

●  This license allows agencies to handle inland travel, visa issuance, events, and transportation for nationals and foreigners who are visiting Dubai or any other emirate.

Outbound Tour Operator License

●  This license allows agencies to sell travel and tourism packages outside UAE through online platforms, e-commerce, offline agents, and many more.

Travel Agent License

●  This license allows agencies to act as a seller for tickets and booking-related services such as transportation rental services and ticket issuance for flights, buses, trains, hotels, and holiday packages on behalf of other agents.

Tour Guide License

●  This license allows tour guides to have access to tourist attractions and should be knowledgeable of the historical and cultural significance of the local places.

Who can benefit from Tourism License?
  • Travel firms

  • Travel agents

  • Hotels

  • Restaurants

  • Airbnb

  • Holiday homes

  • Car rentals

  • Hospitality outlets

  • Other tourism-related entities
illustration of a tour operator
bus luggages
What can you do?
  • Selling tourism packages online and offline

  • Issuing travel insurance

  • Providing accommodation and stay options

  • Offering support services related to visa issuance

  • Selling flight, rail, and bus tickets

  • Providing car rental services

  • Offering adventure tour packages
What activities are allowed?
  • Tour operator activities

  • Tourism agency

  • Business and corporate tourism

  • Inbound and outbound excursions

  • Residential premises rental

  • Tourism consultancy

Guided tour
What are the requirements?
  •  Completed Application Form

  • Applicant’s valid passport copy

  • Applicant’s valid visa copy

  • Latest UAE entry stamp from the passport

     

  • Emirates ID Copy (if applicable)

  • Passport size photo

  • Proof of work qualifications of manager/s

  • Certificate of good conduct of the owner/s

What are the steps and procedures?
  1.  Choose your License Jurisdiction: Mainland or Free Zone

  2. Define your business activity

  3. Company Name Reservation

  4. Get the Initial approval

  1. Memorandum of agreement (MOA) signing
  2. Finalize business address

  3. Submission of all the above approvals

  4. Issuance of trade license

How can EZONE help you?

At EZONE, we make setting up your new tourism business a hassle-free experience by calling on the expertise of our team. With our proven track record and personalized services, you can be sure that every detail is taken care of so that you’ll be ready to welcome travelers in no time.

 We have the skill and knowledge to streamline the entire process – from obtaining a license to ensuring full legal compliance – for you. Contact 800-EZONEUAE or email setup@e.zone and start your Tourism business today.

Category: Uncategorized

Ramadan in Dubai: What to Expect?

March 14, 2023 //  by EzonePanelAdmin

muslim woman praying

Ramadan in Dubai: What to Expect?

Marketing Team

Marketing Team

14 March 2023

Ramadan is a special time for Muslims around the world, including in Dubai. Here is a guide to help you understand what to expect and how to best experience Ramadan.

Understanding Ramadan in Dubai

Ramadan is the ninth month of the Islamic calendar, and it is observed by Muslims worldwide as a time of spiritual reflection, self-discipline, and charitable giving.

Around 76% of the UAE population are practicing Muslims, they will fast from dawn until sunset, refraining from food, drink, and other physical needs during the day. The Metropolis is transformed into a more subdued and reflective place during this time.

calendar date
The Dates of Ramadan

The dates of Ramadan change every year as the Islamic calendar is based on the lunar cycle. In 2023, Ramadan in Dubai is expected to start on 23rd March depending on the moon sighting.

What to expect during Iftar

Iftar is the meal that breaks the fast at sunset, and it is a significant moment of the day. You can expect to see different and exciting activities in Dubai during iftar time, as people gather to break their fast with family and friends. Many restaurants and hotels offer iftar buffets, and it is a great opportunity to indulge in traditional Arabic cuisine.

hands sharing dates
dubai mosque
Visiting Mosques

Visitors are welcome to visit the beautiful mosques in Dubai. During Ramadan, mosques become even more significant as people gather for their daily prayers, including Taraweeh, which is a special prayer performed only during Ramadan.

Charity

Charitable giving is an essential aspect of Ramadan, organizations and companies in Dubai engage in various charitable activities. You can also take part in charitable activities during Ramadan, such as volunteering at a local charity organization or donating to a good cause.

hand holding charity box
Business As Usual

It is business as usual during the day for most businesses in Dubai. However, there are changes to keep in mind during Ramadan:

Working hours: Businesses in Dubai reduce their working hours during Ramadan, with some offices closing early in the afternoon. It is important to check with your employer or the business you plan to visit to confirm their working hours during the month of Ramadan.

Restaurants and cafes: With the announcements of new regulations in 2022, Commercial establishments such as restaurants and café can operate or serve meals as usual. There are others who will be closed during the day, but they will be open for iftar, which is the meal that breaks the fast at sunset. Many restaurants and hotels offer special iftar buffets during Ramadan, and it is a great opportunity to experience traditional Arabic cuisine.

Shopping Malls: Dubai’s shopping malls are open during Ramadan, their hours may be extended to during the fasting month. Some malls may open earlier in the day and close later at night, while others may be closed during the day and reopen in the evening.

Traffic: Traffic can be heavier than usual in Dubai during Ramadan, particularly in the late afternoon as people rush to get home for iftar.

Respect for local customs: It is important to be respectful of local customs and traditions during Ramadan. It is illegal to eat, drink, or smoke in public during fasting hours, and visitors are encouraged to dress modestly and avoid loud music or behavior in public places.

Overall, while there are some changes to keep in mind during Ramadan, most businesses in Dubai continue to operate as usual during the day. It is important to be mindful of local customs and traditions and to embrace the unique atmosphere of the city during this special time.

How can EZONE support you during Ramadan?

Although we have shortened our office timings, it’s still business as usual. If you have a solid business idea or planning to setup your own business, any PRO or visa requirements, we are just a call 800-EZONEUAE or email (hello@e.zone) away.

Ramadan or any other time, there may never be a ‘perfect’ time to start a business. Waiting for the perfect timing may result in missed opportunities.

mosque and moon illustration

Category: Uncategorized

#EmbracingEquity: How Women are Championing the Challenges

March 7, 2023 //  by EzonePanelAdmin

embrace equity

#EmbracingEquity: How Women are Championing the Challenges

Marketing Team

Marketing Team

Women of EZONE

07 March 2023

Women in the GCC region, as well as in other parts of the world, encounter various obstacles to achieving gender equality. Some of these challenges include restricted access to the workforce or barriers to employment, limited representation in leadership positions, educational inequality to name a few.

The United Arab Emirates (UAE) along with Lebanon are the best performing countries in closing the gender gap in the region. And UAE is ranked 1st in MENA and 24th globally on women’s inclusion, justice and security.

paper cutouts of people
Equality vs Equity

Equality and equity are two concepts that are often used interchangeably, but they have distinct meanings.

Equality refers to the state of being equal, especially in rights, status, and opportunities. It means treating everyone the same regardless of their differences, such as race, gender, age, or socio-economic status. In other words, equality is about ensuring that everyone has access to the same resources and opportunities, regardless of their individual circumstances.

Equity, on the other hand, refers to the state of being fair and just, taking into account people’s differences and individual needs. It means providing different levels of support to different people, depending on their unique circumstances, to ensure that everyone has an equal chance of success. In other words, equity is about recognizing that people have different starting points and providing them with the necessary resources and support to achieve the same outcome.

In essence, equality is about treating everyone the same, while equity is about treating people fairly by giving them what they need to succeed. Both concepts are important in promoting social justice and creating a more equal society. However, achieving equity often requires going beyond equality and taking active steps to address systemic inequalities and provide support to those who need it most.

The Challenges 

Women may face cultural or societal barriers that prevent them from entering the workforce, such as restrictive dress codes, gender segregation, or limited access to education and training opportunities. Even when they do enter the workforce, women may face discrimination or bias that limits their opportunities for advancement or equal pay.

Additionally, women may be underrepresented in positions of power, both in the public and private sectors. This lack of representation can make it difficult for women to have a voice in decision-making and policy development, which can further perpetuate gender inequalities.

Furthermore, educational inequality is a significant barrier to gender parity. Girls may face limited access to education, particularly in science, technology, engineering, and mathematics (STEM) fields, which can limit their career opportunities and perpetuate gender gaps in the workforce.

women illustrations

Addressing these challenges requires a concerted effort from governments, organizations, and individuals to promote policies and practices that support gender equality, such as providing equal access to education and training, promoting diversity and inclusion in the workplace, and implementing policies to address gender-based discrimination and bias.

Championing the Challenges
7

Embracing equity is a critical step towards achieving gender parity and promoting social justice. Women around the world are championing the challenges and working towards creating a more equitable society for all. Here are a few ways that women are making a difference:

1. Advocating for policy change: Women are advocating for policy changes that promote gender equality, such as equal pay, parental leave, and anti-discrimination laws. By raising their voices and advocating for change, women are pushing governments and organizations to take action to address gender inequalities.

2. Breaking barriers in male-dominated industries: Women are breaking down barriers in traditionally male-dominated industries, such as STEM and politics. By stepping into these fields and achieving success, women are showing that gender should not be a barrier to success and encouraging others to follow in their footsteps.

3. Supporting and mentoring other women: Women are supporting and mentoring other women to help them achieve their goals and overcome obstacles. By sharing their experiences and offering guidance, women are helping to build a community of support and empowerment.

4. Using their platforms to raise awareness: Women in positions of influence, such as celebrities and politicians, are using their platforms to raise awareness about gender inequality and advocate for change. By using their visibility and influence, these women are amplifying the voices of those who are often marginalized and working towards creating a more equitable society.

Overall, women are making significant strides in championing the challenges and promoting equity. By working together and supporting each other, we can create a more just and equitable society for all.

women posing

Category: Uncategorized

INVEST IN DUBAI: PROPERTY INVESTOR GOLDEN VISA

February 28, 2023 //  by EzonePanelAdmin

dubai buildings

Dubai Property Investor Visa Program

Ailan Lapuz
Ailan Lapuz

Operations Manager

As of 28 February 2023

The world-class infrastructure, secure regulations, and stable economy make property ownership in Dubai, UAE one of the most lucrative investments in the world.

To further attract foreign investment and take advantage of the booming economy, the government has introduced the Property Investor Visa Program which grants investors long-term residency when they purchase a property in Dubai with a minimum value of AED 750,000.

WHY INVEST IN DUBAI PROPERTY: 

  • State-of-the-Art Infrastructure 
  • Growing Population 
  • Tax-Free Income
  • High Rental Yield
  • Safety and Security
  • Booming Tourism
  • Strategic Location
  • Innovative City
  • Thriving Economy
  • High Standard of Living
  • Investor Friendly Policies
  • Strong Regulatory Framework

Invest in your future with EZONE.

Let us make your Property Investor Visa process stress-free. We can also assist you with your administration and application process, including your Medical & Emirates ID, plus, visas for your dependents which can be processed after their principal obtains his/her own Emirates ID card. 

To understand the Property Investor Visa Program, the relevant information is shared below: 

Kinds of Property Visas
2 Year Property Visa
10 Year Property Visa

Description

Allows the investor to stay in the country for 2 years with a minimum property investment of AED 750,000.
Allows the investor to stay in the country for 10 years with a minimum property investment of AED 2 million.

Duration

2 Years

10 Years

Investment

The property value should not be less than AED 750,000. If the property is under a mortgage, then NOC from the bank is required and it must show the total paid amount and the remaining amount.

If the property is ready and not under construction, a financial statement with proof of payment of 50% of the total property value, equivalent to AED 750,000 is needed.

The property value should not be less than AED 2 million. Multiple properties will be accepted under the applicant’s name. If the property under a mortgage, 50% of the property value or at least 2 million of property value must be paid to the bank. No Objection Certificate (NOC) letter in Arabic and a bank's current mortgage statement must be presented.

Off Plan Properties

Not applicable; property must be ready.

For mortgaged properties, the developer must issue a statement of accounts and subject to immigration’s approval

Authority

Dubai Land Department (DLD) Real Estate Regulatory Agency (RERA)
Dubai Land Department (DLD) Real Estate Regulatory Agency (RERA)

Benefits

  • Obtain 2-year UAE residency, Receive Emirates ID, Live and work in the UAE without a local sponsor for Golden Visa Holders
  • Apply for UAE driving license
  • Sponsor immediate family members
  • Obtain 10-year UAE residency, receive Emirates ID, live and work in the UAE without a local sponsor
  • Apply for UAE driving license
  • Not required to be in the country within 6 months, if you extend your stay abroad
  • Sponsor up to 3 housemaids and drivers
  • Sponsor your family for 10 years
  • Sponsor your children until 30 years of age
  • Sponsor parents for 10 years

TERMS AND CONDITIONS

Property Value
  • The property value must be based on the purchase price, not the current market value.
  • If the property is under a mortgage, a NOC letter and statement of account from the bank or real estate developer(s) showing the paid amount and balance due must be presented.
  • If the property is off-plan, 50% of the property must be completed as per the Dubai Land Department (DLD).
Qualifications
  • The investor still qualifies for a property visa if he or she decides to take multiple properties with a total investment of AED 750,000 for a 2-year property visa and AED 2 million or more for a 10-year property visa. 
  • An attested marriage certificate must be presented when the husband and wife want to obtain one property.
  • A copy of the initial sale certificate is needed if the property is mortgaged by the developer.
Restrictions
  • Dubai Land Department (DLD) will issue a restriction on the property to avoid disposal/sale of the property while the visa is valid.
  • Dubai Land Department (DLD) will cancel the visa in case of a property sale unless it is replaced by a substitute property.
  • Once the application is filed, the applicant cannot travel outside the UAE.
Requirements
  • Title deed of the property
  • Original passport of the applicant
  • Current visa copy/residency copy/UAE entry stamp
  • Current Emirates ID (if applicable)
  • Passport-size photos with matching ID specifications
  • Health insurance (UAE based)
  • A copy of the national identity (applicable for these countries):
    • Iran 
    • Pakistan 
    • Iraq 
    • Libya 
    • Afghanistan
  • Certificate of good conduct and behavior issued by Dubai Police addressed to the Dubai Land Department (DLD) (applicable for 2 year property visa application only) .
  • Physical presence of the applicant at the time of application

 

Invest in Dubai and enjoy great tax incentives, get your Dubai Property Investor Visa with EZONE! 

Get started on a smooth transition. Call us at 800-EZONEUAE or email us at setup@e.zone – don’t wait, seize this golden opportunity today!

Category: Uncategorized

Unlocking the Potential of the Food and Beverage Industry in the UAE

February 23, 2023 //  by EzonePanelAdmin

Food and Beverage Name

Unlocking the Potential of the Food and Beverage Industry in the UAE

Ivan Joson
Ivan Joson

Business Setup Consultant

24 February 2023

The UAE’s food and beverage (F&B) market is a growing sector that presents immense opportunities for business owners and investors. Projected to be one of the highest revenue-generating sectors for 2023 with measured steps towards breaking a revenue record of more than billions every year, investing in the F&B sector looks more profitable than ever. 

With its rapidly-growing population, flourishing economy, and strategic location, the UAE is a prime destination for F&B

Here are the top reasons why entrepreneurs should invest in this  robust industry. 

Luggage with a tourist
Surge of Tourists

Dubai is a city that’s packed with culture, adventure, and opportunity. According to the Department of Economy and Tourism, 2022 saw over 14.36 million tourists arriving in Dubai, growing 97% year on year (YoY) – an increase from previous years – making Dubai one of the most exciting cities in the world. 

Tourists are provided with both luxurious and affordable packages that enable them to experience adventure and relaxation in a variety of settings, from bustling cities to serene deserts. The tourism industry is an attractive opportunity for entrepreneurs and investors looking to establish an F&B business in Dubai, and it is further enhanced by the city’s diverse population, which allows for a range of international cuisine options to be enjoyed by tourists alongside the F&B and hospitality industries.

High Demand for F&B

As one of the leading sectors in Dubai with an estimated CAGR of 4.39 percent from 2023 to 2027, the UAE F&B industry has grown its 2020 market value to US$37.89 billion in just a few years. Various factors play a role in the expansion of the F&B industry in the UAE, especially in Dubai.  

As more people have busy lifestyles, convenient foods, and snacks are becoming more popular. There is a constant flow of customers seeking ready-made meals or snacks they can take on the go. With the ever-growing population of expatriates living in this country, access is needed at all times which increases the demand for F&B products. As a result, it’s now easier than ever for business owners in this sector to capitalize on this opportunity successfully.

Restaurant Kitchen
Burj Khalifa Dubai
Favorable Regulations

The United Arab Emirates has one of the strongest economies in the region. Its GDP growth has been consistently high over recent years. As per World Bank, the UAE GDP rose to 3.9 % in 2021 compared to previous years.   

Economic stability provides an excellent platform for establishing a successful F&B business in the country. The UAE’s government implements several policies and incentives such as free trade agreements with other countries as well as offering grants or subsidies for research or development initiatives related to the F&B sector. 

Additionally, businesses are able to benefit from lower taxes compared to other countries in the Middle East region which helps them remain competitive in their respective markets.  Through this, F&B businesses can save significantly on their costs while maximizing profits.

Strategic Location

The UAE is a destination like no other. Strategically located near major international markets such as India, China, Europe, Africa, and Central Asia, the import and export of F&B products internationally and within these markets become a hassle-free process without worrying about customs issues or transportation costs. 

As a global logistics gateway, the UAE has numerous interconnected links and ports which make it easier for F&B businesses to receive and deliver their products throughout the region quickly and efficiently.  

The hospitality industry through its iconic hotels and restaurants also offer constantly evolving experiences, from 7-star luxury in Burj Al-Arab to eclectic eateries dotted around the city center of old Dubai. Experiencing renowned hospitality at every turn, this beautiful oasis ensures extraordinary adventures and culinary experiences which prompt visitors not only to return but stay in the country for the long term.

Flag of the UAE
How do you start your F&B business in the UAE?

With more than 40 free zones and 7 mainland Emirates, choosing which one is best for you can be a daunting task. Dubai Mainland can be one of the best options for you. You get more opportunities with lesser restrictions for business setup and growth. 

Depending on your chosen business activity in the F&B industry, requirements and timelines may vary but the flexible regulatory procedures, efficient processes, and structured timelines make Dubai Mainland License a preferred choice for many investors.

Requirements for License Issuance:

  • Passport Copy
  • UAE Visa Copy
  • Emirates ID
  • UAE Entry Stamp from the Passport
  • NOC Letter (if applicable)

Steps:

  • Name Reservation 
  • Initial Approval
  • Memorandum of Agreement (MOA) Signing
  • Finalizing Business Address 
  • Submission of Approvals and Documents
  • Trade License Issuance

There are a number of Free Zones too that can provide beneficial options for you as they offer many perks for F&B investment – from zero tax and capital incentives to waived customs duties – you can reap a host of rewards while providing access to expatriates living inside or outside these zones. 

How can EZONE help you?

At EZONE, our team will help you in choosing the right business activity that fits your goals. Our organized approach will help simplify your F&B license registration process while providing you with guidance for a worry-free start. 

With careful planning & execution -we believe that any entrepreneur willing to take advantage of what the F&B market has to offer will be sure to unlock the potential and reap great benefits.

Join the exciting world of F&B in one of its most lucrative destinations in the world.  Call 800-EZONEUAE or email setup@e.zone to start your F&B journey today!

Category: Uncategorized

How the UAE is embracing the Pre-Loved Fashion Market

February 14, 2023 //  by EzonePanelAdmin

How the UAE is embracing the Pre-Loved Fashion Market

Samantha Simms

Samantha Simms

Business Setup Consultant

14 February 2023

In 2021, the market revenue for second-hand luxury goods or pre-loved fashion was estimated to be just below 5 billion U.S. dollars worldwide but by 2027, it is projected to almost triple in size reaching a value of 14.7 billion U.S. dollars. 

Where once upon a time, buying second-hand goods was frowned upon, today they are not only acceptable but have become mainstream in the market. The appeal of this unicorn industry has grown exponentially in the last two decades as consumers seek better value for their money and contribute to sustainability efforts. 

It can be challenging to start a business in the UAE, especially when the market can be unpredictable, but once you know the ins and outs then it can be extremely rewarding.  Let’s find out how you can start something of your own and break into the fashion industry.

Circular Economy, Second hand, Fast fashion, Sustainable fashion. Many second hand red colors clothes hanged on clothes rack.
Why start a pre-loved fashion business?

The preloved or pre-owned fashion industry is on the rise , different generations are proud to purchase pre-loved items and call them their own. With the retail market pioneering and transforming its resale strategy, many entrepreneurs are taking the plunge and bringing their passion to life.

In 2019 alone, the fashion resale business grew 25 times faster and soared to 80 billion dollars compared to other retail sectors. Being part of a circular business model, entrepreneurs recognize the flow of goods from one purchaser to another. 

These shoppers want new, on-trend, products, and find ways to either discard their old ones or sell them to purchasers that want them. These are luxury, classic, vintage, or rare items that are in demand in the market.

What is the business all about?

There is demand for buying these products and a successful venture can be formed which will bring them to the market and make way for a new set of consumers who want to purchase them at a fraction of the original cost. 

A loyal base is formed where pre-loved goods sell faster than ice-cold water in the hot weather of the UAE. Through this movement, you not only score big brands at half the price but you play an important role in preserving the environment by purchasing used goods that can be reused again which eliminates the wastage of materials.

What are its benefits? 

UAE, especially Dubai, has a high-end clientele that wants to own premium or vintage goods. Bags, shoes, clothes, or jewelry from luxury brands such as LV, Gucci, or Hermes– sell like hotcakes in the golden city.

With the pre-loved fashion business having its own economic and environmental benefits, it would be a shame not to invest in this lucrative business. Some of the most significant motivators of this business are linked to understanding consumer demands and sustaining business performance. By considering these benefits, entrepreneurs can craft their marketing models according to these motivators. With all these perks, it is undeniable that the resale fashion business is here to stay.

premium brands
Who is taking part in it? 

Online platforms such as ASOS, Boohoo, and Marks & Spencer are also supporting resale businesses as they are committed to selling reused and recycled fibers that minimize waste and improve the long-term durability of the garments.

Big brands such as Burberry and Gucci are also partnering with consignment services to collect and resell their pre-loved goods so that they won’t be misused or thrown in the market since it may be a matter of their reputation. 

The SMBs are also excited about this amazing opportunity. Buyers, resellers, and distributors are enthusiastic about starting their own pre-loved fashion businesses either on vintage apparel, designer brands, or various product categories as they know there is an enormous demand for it not only in UAE but in other parts of the world.

What are the requirements? 

Department of Economy and Tourism mandates that certain requirements must be met to ensure your business has the necessary approval for operations within borders:

  1. Passport Copy 
  2. Visa Copy 
  3. Latest UAE entry stamp from the passport 
  4. NOC Letter if currently on employee residence visa
  5. Emirates ID Copy 
  6. Passport size photo 
  7. Three (3) proposed company names
How can EZONE help you start your pre-loved fashion business? 

If you’re looking for a unique business opportunity with plenty of rewards, the pre-loved fashion business is the way to go! 

With just AED 5,750 you can start your own business today! To know more about our offers, please call us at 800-EZONEUAE or email us at hello@e.zone. Let us welcome you to the world of pre-loved fashion.

Category: Uncategorized

Your Guide to the 3 Main Jurisdictions in the UAE

January 17, 2023 //  by EzonePanelAdmin

Dubai Skyline

as of 17 January 2023

Your Guide to the 3 Main Jurisdictions in the UAE : MAINLAND, FREEZONE & OFFSHORE


 

Businesses in the UAE can take advantage of multiple jurisdiction options, each with its unique benefits and distinct features. The three main jurisdictions are Mainland, Free Zone, and Offshore, where companies can establish their presence in the United Arab Emirates (UAE).  

Mainland companies have the widest range of over 3,000 business activities, the majority of which can be 100% foreign owned without any limitation on where they can conduct their business activities.  On the other hand, Free Zone companies can be 100% foreign owned but have restrictions in conducting activities on the mainland without a proper branch license or agent. Offshore companies have complete ownership but are not allowed to conduct business within the UAE. In addition, mainland and free zone companies can issue visas for investors and employees, whereas offshore companies cannot. 

While each jurisdiction has pros and cons, businesses can take advantage of the flexibility multiple jurisdictions provide. Entrepreneurs, owners, and investors alike should consider each objective before deciding  on the type of company to set up in the UAE. A business setup consultant can help on this matter. They should understand not just the nature of your business but the direction your business will grow. Below is EZONE’s comparative guide on the three kinds of jurisdictions in the UAE in terms of business setup, registration, and other requirements.

Description
Mainland
Free Zone
Offshore
Type of Company
Onshore companies are registered under the government authority of the Emirate. Legal Forms of companies: Sole Ownership, Civil Company, Limited Liability Company (LLC), Branch of a Foreign Company/Free Zone Company, Private/Public Joint Stock Company.
Free zones are formed within special jurisdictions under a specific Emirate. Legal Forms of free zones – Free Zone Establishment (FZE) has a single shareholder, Free Zone Company (FZCO) has multiple shareholders, a Branch of a Foreign Company, and depending on the free zone, it can also be an LLC-FZ or LLC.
Established in a foreign jurisdiction to operate outside their original location of registration. Offshore entities are usually established as Company Limited by Shares (CLS), or Company Limited by Guarantee (CLG). The name of a limited company shall end with the word “Limited” or “Incorporated” or the abbreviation “Ltd” or “Inc”. Most recently, Unlimited Companies (UC) were introduced.
Registration Authority
A trade license is issued by the Department of Economic and Tourism (DET) in Dubai and the Department of Economic Development (DED) of the other six (6) emirates. Additional approvals from other external government authorities may be required depending on the business activity.
Free zones are established under a special decree passed by the Ruler of the Emirate in which the free zone is created. They have rules and regulations that oversee the license and visa issuance regulatory and administrative processes. Additional approvals from other external government authorities may be required depending on the business activity.
Offshore entities are subject to the Federal Laws of the United Arab Emirates (UAE) and the local laws of the Emirate in which the offshore entity was incorporated. A registered agent can help with the process of incorporating the entity.
Trade Restrictions
Free to do business anywhere in the UAE - both inside and outside the UAE, including Free Zones. There are no restrictions of any kind in different parts of the Emirate.
Free zone companies can only legally trade only within the free zone, with other free zones, and outside the UAE.
Offshore companies in Dubai are only allowed to conduct international trade outside of the UAE and purchase/manage real estate within the UAE. They are not allowed to conduct business activities or hold offices inside the UAE.
Ownership
100% foreign ownership for businesses in the mainland is allowed on over 2,000 approved business activities. There are only a limited number of business activities that require 51%-100% local ownership.
The investor/s enjoys 100% foreign ownership of the company.
The investor/s enjoys 100% foreign ownership of the company.
Location and Office Space
No restriction on where the company can rent or buy the offices/warehouses/retail spaces as long as it is on the mainland. Free Zones can issue NOCs for mainland companies to lease in a free zone area.
Renting or buying offices/warehouses/retail spaces should be within the registered free zone and a variety of options are available for workspaces which include offices, Flexi-desks, and virtual offices.
No specific location or physical office requirement. The registered agent will provide a registered address.

Shareholders

Minimum of one individual or corporate shareholder is allowed.
A minimum of one individual or corporate shareholder is allowed.
Minimum of one individual or corporate shareholder is allowed.
Capital Share Requirement
The minimum share capital requirement starts from AED50,000 to set up a business in the UAE. There is no paid-up capital requirement unless stated by the Emirate or due to business activity.
The minimum share capital requirement starts from AED50,000 to set up a business in the UAE. There is no paid-up capital requirement unless stated by the Emirate or due to business activity.
The minimum share capital requirement starts from AED50,000 to set up a business in the UAE. There is no paid-up capital requirement unless stated by the Emirate or due to business activity.
Capital Repatriation and Profits
100% repatriation of profits and capital are done by the company without any restrictions on the county of origin of the investors.
100% repatriation of profits and capital are done by the company without any restrictions on the county of origin of the investors.
Offshore companies are void of any capital requirement.
Activities
Mainland companies can combine up to 10 business activities that belong to the same activity group. Combining unrelated business activities will require special approval.
Depending on the free zone, you can usually combine 3-5 business activities and others would be at an extra cost.
It is mandatory for offshore companies to operate outside of the UAE to start their business activity.
Corporate Tax
From June 1, 2023, a 9% corporate tax will be introduced with exemptions for taxable income up to AED 375,000.
Free Zone entities can enjoy tax holidays provided they maintain adequate economic substance, comply with regulatory requirements of the respective free zone, ensure audited books of account, and, most importantly, do not earn income from Mainland entities and only derive service income within the Free Zone or from other Free Zones.
Offshore Companies are subject to 0% Corporate Tax.
Value-Added Tax
For tax-registered businesses, a 5% VAT is applied at every step of the taxable supply of goods and services.
Free zones are applicable to VAT except for designated zones.
Offshore companies are 100% tax-free and are not subject to paying taxes in their home jurisdiction.
Withholding of Taxes, dividends, and Capital Gains
No withholding of taxes on domestic, and international payments. Exemptions are granted to dividends and capital gains.
No withholding of taxes on domestic, and international payments. Exemptions are granted for dividends and capital gains.
No withholding of tax on income, payments, and other transactions.
Tax Residency
Tax Residency Certificate is granted to mainland companies that have been active in the UAE for two years or more. This certificate can be used in other jurisdictions under the double tax treaty.
Tax Residency Certificate is granted to free zone companies that have been active for two years or more in the UAE. This certificate can be used in other jurisdictions under the double tax treaty except for companies with a virtual office.
Granted investment protection since UAE has signed a double taxation avoidance agreement which allows offshore companies to have monetary benefits in terms of tax exemptions.
Duration
This can range from one week to 4weeks depending on the additional external approvals required.
1 day to 6 weeks depending on the free zone authority.
1 to 4 weeks depending on the compliance requirements.
Physical Presence in the UAE
If the shareholders have previously been to the UAE, signing can be done via an online notary and the incorporation process can be done remotely.
If the shareholders have previously been to the UAE, the incorporation process can be done digitally and remotely.
The incorporation process can be done digitally and remotely.
Visa
No restrictions on visa eligibility but the number of visas issued is dependent on the size of the workspace.
The number of visas allocated depends on the free zone license package which can range from 0 to 6 but can be increased depending on the size of the office.
Not permitted to grant UAE residence visas.
Visa Duration
2-year validity for investors and employees
2-year validity for investors and employees
Not permitted to grant UAE residence visas.
Bank Account
Flexibility to open multi-currency bank accounts in the UAE and do business locally and globally as long as the authorized signatory is a UAE resident and can provide proof of address in the UAE.
Flexibility to open multi-currency bank accounts in the UAE and do business locally and globally as long as the authorized signatory is a UAE resident and can provide proof of address in the UAE.
Flexibility to open multi-currency bank accounts in the UAE and do business globally if the authorized signatory is a UAE resident and can provide proof of address in the UAE.
Audit Requirement
An annual financial audit is federally required however, it is at the discretion of the DET/ DED authorities or external government authorities if they will require submission.
Audit requirements vary from each free zone and most of them don't require an annual financial audit which is subject to change once the corporate tax is introduced.
No annual audit requirement.
Import Duties
No exemption on import duties.
Permitted to import goods to free zone from other countries with no payment of customs duties. However, customs dues of 5% are due once the goods are taken out of the free zone.
No import and export tariffs as no business can be conducted locally.
Approvals
Depending on the business activity, mainland companies may or may not have to seek external approvals from government bodies.
Depending on the business activity, free zone companies may or may not have to seek external approvals from government bodies.
Not Applicable as no business can be conducted locally.
Applicable Laws and Courts
UAE adopts three levels of courts for litigation: The Court of First Instance, the Courts of Appeal, and Federal Supreme Court, and the Courts of Cassation.
All free zones have their own regulations, falling under the federal Commercial Companies & Commercial Transactions law. There are two autonomous free zones that follow the common law system with its independent courts which are Dubai International Financial Center (DIFC) and Abu Dhabi Global Market (ADGM).
Laws dependent on the jurisdiction in which offshore companies are established which are Jebel Ali Free Zone (JAFZA), Ras Al Khaimah Economic Zone (RAKEZ) and Ajman Free Zone.

When it comes to setting up a business in the UAE, you have three vital options – each with its own unique benefits. Whichever jurisdiction you choose, ensuring that it is best suited to your corporate goals is essential. Make sure no stones are left unturned and that your plans match perfectly by considering which jurisdiction is good for you and your business. Taking the time to understand what’s on offer not only simplifies decision-making but makes navigating this journey so much easier and smoother.

Don’t waste another minute wondering where to start your business in the UAE. EZONE is here with years of expertise guiding you through every step. From picking the right jurisdiction that fits your needs best, our knowledgeable team can provide accurate information on setting up a successful endeavor. Contact us today at 800-EZONEUAE or hello@e.zone for valuable assistance! Take advantage and set up your business now!

Category: Uncategorized

All You Need to Know About Meydan Free Zone

January 17, 2023 //  by EzonePanelAdmin

Meydan Free Zone Building Facade

as of 17 January 2023

All You Need to Know About Meydan Free Zone


 

Nestled among the 7 Emirates in the United Arab Emirates, Dubai is a land of opportunity for numerous entrepreneurs and business owners all over the world. With a population of over 3.5 million, Dubai is one of the most affluent cities ranking as the 29th wealthiest in the world. Dubai is a golden city of opportunities, home to more than 67,000 millionaires, 200 centi-millionaire, and 10 billionaires across different continents with net assets ranging from millions to billions of dollars.

According to the New World Wealth report, “the millionaire population of Dubai is growing quickly and is expected to break into the top 20 wealthiest cities by 2030.” Currently, it ranks as the 23rd richest city globally. So, if you’re thinking of starting a business in Dubai, Meydan Free Zone should be on top of your list. 

Meydan Free Zone is centrally located at the heart of Dubai for ease of access.  Being just 20 minutes away from the Dubai International Airport, and ports, Meydan Free Zone is not far from the hustle and bustle of the city and offers an excellent base to impress customers, build your company, and enjoy your leisure time. It offers numerous lifestyle perks combined with state-of-the-art infrastructure that goes beyond more than just attractive aesthetics. 

Its strategic location with great transport links to emerging markets makes it a perfect place to set up and expand your business. Owners can enjoy ample corporate space and a thriving business community with a number of amenities while hosting their business and personal guests. With only AED 35 a day, Meydan Free Zone has everything to get your business started in the UAE. Take a look at the vital information that makes Meydan Free Zone a cut above the rest.

Meydan Free Zone

Description

Meydan is a corporate-focused free zone that offers investment opportunities, state-of-the-art facilities, and world-class infrastructure with numerous lifestyle benefits.

Location

Dubai

Facilities

Virtual offices, Flexi desks, shared desks, and fitted offices

License

Professional, Commercial, Consulting, Trading, and Media licenses | Dual license for Mainland and Freezone

Ownership

100% foreign ownership

Shareholders

Up to 6 shareholders per company with additional options

Bank Account

Digital banking options Other banking solutions available

Business Activities

Up to 3 business activities An additional fee is applicable for added activities

Capital Incentives

Zero paid-up share capital

Investment

Capital repatriation without restrictions

Tax Benefits

0% corporate and personal tax

Visa Allocation

Up to 10 visas – Flexible options available for visa allocation | Valid for 2 years

Immigration Card

Renewable annually

Insurance

Mandatory for employees and dependents
E-Channel Registration
Not Required
License Issuance Time
1 to 3 days

As a popular choice for businesses, due to its high-profile location and a large number of international businesses, Meydan Free Zone gives startups access to entrepreneurs who want to tap the local and global market.  It offers a favorable tax regime, strategic location, growing economy, business-friendly environment, and a wealth of resources. 

Additionally, the government offers many incentives for businesses to set up in Dubai, making it an attractive choice for many entrepreneurs worldwide.  Being more liberal in their approach,  start-ups have more freedom to explore potentials that distinguish them from other emirates. There are many reasons why Meydan Free Zone is an attractive destination for businesses looking to set up operations in Dubai. 

At EZONE, business setup in the UAE doesn’t have to be a complex process. Our experienced business setup consultants are equipped with the knowledge and expertise to get you what you want to set up your business. Our straightforward and transparent process makes it easier and simpler for you. 

Book a free consultation and let EZONE help you start your business today so you don’t have to deal with any unwarranted delays. Call 800-EZONEUAE or email setup@e.zone to find out how you can be part of this impressive free zone in Dubai, UAE. We are committed to bringing your vision to life and being part of your business setup journey.

Category: Uncategorized

SPC Free Zone in a nutshell

January 17, 2023 //  by EzonePanelAdmin

SPC Free Zone Building Facade

as of 17 January 2023

SPC Free Zone in a Nutshell


 

Businesses are always on the lookout for new opportunities to get a foothold in the market. After all, the market is ever-changing, and businesses need to adapt to survive. This is especially true in the United Arab Emirates, where the landscape is constantly evolving. For this reason, many businesses are choosing to set up their companies in Sharjah.

Sharjah is often seen as a more affordable option compared to other Emirates. It has a growing population, with many business opportunities. With many industries establishing their roots there, it’s no wonder that entrepreneurs are relocating there to take advantage of the lower costs and easier set-up process. Offering a more stable environment for businesses to thrive, startups can access a wealth of experience and expertise in the Emirates of Sharjah.

SPC Free Zone is just one of the many free zones supporting businesses from all across the UAE. As a driving force providing access to financing, technology, and other resources that can ease your business’s operations while also promoting economic growth within this strategically important region of Sharjah. To get you started, here is some valuable information you need to know when you incorporate your company into SPC Free Zone.

Sharjah Publishing City (SPC)

Description

SPC provides easy access to seaports and airports, up-to-date infrastructure, and an accommodating regulatory framework with a sustainable business environment.

Location

Sharjah

Facilities

24 hours office facilities, coworking amenities, food & beverage (F&B) outlets, retail areas, customized spaces, and warehouses

License

Service, commercial, e-commerce, and general trading license | Specializing in media and publishing activities | Dual license for Sharjah Mainland and Freezone

Ownership

100% foreign ownership

Shareholders

Up to 5 shareholders per company on entrepreneur package
Up to 7 shareholders per company on publishing & standard packages

Bank Account

Flexible banking options

Business Activities

Up to 5 business activities: An additional fee is applicable for added activities

Capital Incentives

Zero paid-up capital share capital

Investment

Capital repatriation without restrictions

Tax Benefits

0% corporate and personal tax

Visa Allocation

Up to 6 Visas without a physical office | Flexible options are available for more visa allocation | Visas are valid for 2 years

Immigration Card

Payable every 3 years upon renewal

Insurance

Optional
E-Channel Registration
Mandatory annually
License Issuance Time
Same day or within 7 working hours

SPC being centrally located in the Emirates of Sharjah is interconnected to Dubai and other Emirates making it one of the most accessible free zones in the UAE. With excellent infrastructure and competitive cost of doing business, SPC offers everything you need for your business to get started with only AED 16 a day! 

Aside from offering 100% foreign ownership, import and export duty exemptions, tax benefits, smooth visa applications, and easy licensing procedures, including a 10-year dual license option combined with 1,500 activities from various sectors, SPC should be at the top of your list for business establishment.

 With a number of government incentives available, there’s no better time to set up your business at SPC Free Zone. Let EZONE help you along the way while you stay in comfort and ease. Our business setup consultants are equipped with the knowledge and expertise to get you ahead without any hassle or worry. Call 800-EZONEUAE or email us at setup@e.zone and find out how you can start your business at SPC Free Zone today!

Category: Uncategorized

The Importance of TAX REGISTRATION NUMBER in the UAE

December 5, 2022 //  by EzonePanelAdmin

Man with paper on hand and using the calculator

 

as of 30 November 2022

The Importance of TAX REGISTRATION NUMBER (TRN) in the UAE


 

INTRODUCTION

On January 1, 2018, the introduction of VAT brought in a new era of economic change in the taxation system in the UAE. Since then, the companies that are operating in the GCC (Gulf Cooperation Council) are subject to VAT provisions. With the establishment of VAT, the Federal Tax Authority (FTA) has generated the Tax Registration Number (TRN) as an important measure for any business activity being operated in the UAE.

The Federal Tax Authority (FTA) has stated that businesses in the UAE don’t need to present a tax certificate for their commercial activities. Instead, they can use their Tax Registration Number (TRN) for VAT-related matters which makes the TRN registration significant for business owners.

This is a positive step toward the international tax compliance law where certain companies that reach a specific threshold must be registered under the Value Added Tax (VAT) system which proves to be an income-generating source for different kinds of business transactions. 

 

WHAT IS VAT?

Value Added Tax (VAT) is a form of indirect tax where a specific value can be added to the product at any stage. In the UAE, the rate for VAT is 5% which can be imposed on different forms of businesses. It is beneficial for registered businesses, as it allows them to get back the amount from their transactions or purchases through VAT Returns. This allows them to collect taxes from the consumer which in turn can contribute to the betterment of the economy on a large scale.

 

WHAT IS TRN?

The Tax Registration Number (TRN) is a 15-digit number issued by the FTA that is used as a distinguishing tool for companies. The number helps segregate or differentiate one company from another.  It is part of the unique identification system that is used for tax invoices, VAT returns, tax credits, and other financial matters.  Businesses that are part of VAT, receive a TRN together with the TRN certificate which permits the companies to charge their customers VAT.

At times, TRN is also called the VAT registration number which every company receives when they are registered for VAT. Non-compliance or failure to do so can lead to fines and penalties.

 

WHAT IS THE ROLE OF TRN?

TRN plays a very important role in processing several tax-related documents that allow different companies to function in the country and avail of various tax benefits. Any company registered for tax purposes in the UAE, particularly for VAT must own a Tax Registration Number and a certificate. Through TRN, the tax authority can verify businesses and track all their purchases. They can also see the tax status of the company which ensures compliance with the new law.

 

WHAT IS THE IMPORTANCE OF TRN?

TRN Verification is a time-efficient, money-saving, and productive method for both the public and private sectors. It can help with:

Claiming back paid taxes that are charged on the purchase, manufacture, and processing of a product or merchandise.

  • Providing a refund for companies who have registered under VAT and have acquired a valid TRN.
  • Recovery of business purchases by the buyer through VAT.
  • Paying for utilities like electricity and water for commercial use.

 According to the VAT Law of the UAE, TRN Verification of all tax documents is necessary for companies, and these are:

  • Tax Invoice
  • VAT Return
  • Tax Credit Note/Record
  • Other relevant documents

 

WHAT ARE THE BENEFITS OF TRN?

 TRN Verification is a compliance measure created under the UAE VAT Laws. When a company completes the TRN Verification process, numerous benefits are provided which are listed below:

  • It tracks all the transactions made by numerous buyers and establishments
  • It provides a unique identity for businesses
  • It offers easy communication with the FTA
  • It legalizes the business on the tax invoice
  • It organizes the collection of documents related to taxes
  • It highlights the compliance aspects of the company
  • It creates investor and shareholder confidence
  • It mitigates any risk of non-compliance to avoid penalties
  • It simplifies communication between the buyer and seller
  • It showcases an organized process of transactions for businesses

  

WHO NEEDS TO REGISTER FOR TRN?

For a company to be eligible for VAT Registration and TRN Verification, they need to fulfill certain revenue requirements listed below:

Mandatory Registration

The mandatory threshold for registration is AED 375,000.

  • If the company’s revenue exceeds in the past 12 months or is expected to exceed in the coming 30 days, then it must mandatorily register for VAT to avoid penalties and fines.
  • This threshold does not apply to foreign businesses.

Voluntary Registration

  • The voluntary threshold for registration is AED 187,500.
  • If the company’s revenue is greater than AED 187,500 but less than AED 375,000 then the company can choose to register for VAT.
  • If the company’s revenue is lower than AED 187,500 then it does not need to register for VAT.

 

WHAT IS THE PROCEDURE?

An assessment of TRN eligibility is needed to evaluate if the business needs to go through the procedure. Those who are due for VAT registration can hire tax agents who can guide or help them in the completion of the process.

The agent can register on behalf of the tax applicant and apply with the relevant authority within 30 days of registration. The steps needed to acquire TRN in the UAE are:

  • Login into the e-services online portal of the FTA for registration
  • Click on the button to receive the complete information
  • Complete the VAT registration form
  • Fill all the sections with the required details
  • Submit the information for approval

 

WHAT IS THE PURPOSE?

Once registration is done successfully, the company will receive a TRN certificate issued by the FTA. Based on that, the company will process its VAT filing before the mentioned due date. Businesses with a valid TRN can use the certificate for:

  • Change of ownership
  • Business closing
  • Below voluntary threshold
  • Below mandatory threshold

 

WHAT DOCUMENTS ARE REQUIRED?

To ensure that the documents comply with the rules and regulations, the company can hire tax agents that can review, organize, and submit the following documents: 

  • Company’s trade license
  • Company’s address and contact details
  • Company Bank Account Details
  • Company’s Memorandum of Association
  • Last Year’s bank details and income statement
  • Company’s turnover declaration letter
  • Passport copies of the manager/shareholder on license
  • Emirates IDs of the manager/shareholder on the license
  • Valid Residence Visa copy of the manager/shareholder on license
  • Custom registration
  • Sample invoices from the suppliers and customers
  • Import or export declarations

 

WHAT IS THE PENALTY FOR NON-COMPLIANCE?

Any company with late registration will receive a fine of AED 20,000. Other penalties will also be added by the FTA depending on the date on which the threshold exceeds.

If incorrect information is provided or if there is an error in the registration process, then the completed form will be dismissed. The company will have to go through the whole procedure all over again which prolongs the registration process.

 

HOW TO CHECK FOR TRN AUTHENTICITY?

One of the vital requirements for companies to register for VAT is to allow them to file and collect taxes. TRN verification ensures that the businesses that are charging clients with VAT have a valid TRN.

If the client pays VAT without TRN verification, then the VAT return will not be available to them as an input tax credit. To avoid the loss of tax and to check the authenticity of the company claiming to be VAT registered, an FTA check can be performed not only by businesses but by individuals as well.

The steps for TRN Verification are as follows:

  1. Visit https://eservices.tax.gov.ae/en-us/trn-verify
  2. Enter the TRN of the business in the space provided
  3. Enter the Security Code as displayed on the screen
  4. Press the ‘Validate’ button
  5. If the number is authentic then the legal name of the company will appear in English and Arabic.

 

HOW EZONE CAN SUPPORT YOU?

To avoid any penalties, you can hire a trusted consultancy that can provide you with start-to-end solutions from assessment to procurement for TRN registration.

For a better understanding of the TRN requirements, EZONE can help your company navigate through the extensive guidelines of the new tax law in the UAE. With our support, you can incorporate the right tax structure in your company that can save you time, mitigate the risks, and protect your assets.

Book a FREE consultation with us and get to know more about our various services. Call us at 800-EZONEUAE or email us at hello@e.zone. We are looking forward to hearing from you.

Category: Uncategorized

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