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.

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.

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.

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

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.

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.

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.

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.

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.