How to get TRC certificate in the uae for Legal Person

TRC Certificate in the UAE for Legal Person: Step-by-Step Process by AB Capital Services

Leave a Comment / Blog, Company Formation, Corporate Services, Finance, Tax, UAE Compliance / AB Capital Services

Introduction The UAE has a very favorable climate for doing business and has signed double taxation agreements with many countries. In order to take advantage of these tax treaties, the companies and other legal entities require a Tax Residency Certificate (TRC). This certificate helps businesses to escape the double taxation, get the best tax rates, and meet the international tax standards. In this blog, we will explain how to get a TRC certificate in the UAE for Legal Person, the advantages of this document, and how AB Capital Services, top business consultants in Dubai, can assist your company in this matter. What is a TRC Certificate for Legal Persons? TRC is recognized as an official document, which is released by the UAE’s Federal Tax Authority (FTA). It confirms the legal entity or company residence of the United Arab Emirates for tax Identification purpose. Having TRC means that legal entities can take advantages of UAE tax treaties with other states, and thus it is useful for the companies with global presence. Eligibility Criteria for TRC for Legal Entities For legal persons (companies and other business entities) to be eligible for a TRC in the UAE, they must meet certain criteria: Established in the UAE: The company must be legally operating in the UAE either as a mainland, free zone or offshore company and must be registered. Active Operations: The company must show that it is conducting business within the UAE and that it is conducting business frequently. Physical Presence: The entity must have an office or place of business in the UAE. Compliance: The company should also be in compliance with the laws of the UAE, accounting and VAT if any. Documents Required for TRC Application for Legal Persons To qualify for a TRC in the UAE when applying as a legal person, there are several documents that one is needed to produce. To prevent any form of delay, AB Capital Services makes sure that all the paperwork is well done. The following documents are typically required: Photocopy of the trade license of the company. Certified true copy of the company’s Memorandum of Association (MoA). Company’s shareholders and ownership structure showing the proportion of ownership of each shareholder. Consolidated audited financial statements for the last fiscal year. Lease agreement of the company for the office or operational place. Bank statements for the last six months. Business documents that show that the business is active in the UAE (invoices, contracts, etc.). Letter of board resolution to affirm the company’s decision to apply for the TRC. TRC Application Process with AB Capital Services The application of the TRC is not easy, especially for companies that have international operations and businesses. AB Capital Services makes this process straightforward by offering expert guidance at each step: Initial Consultation: AB Capital checks your company’s compliance with the TRC and examines your existing business model for improvements. Document Preparation: The team helps you compile and submit all necessary documents that meet the FTA’s requirements. Application Submission: AB Capital is responsible for the submission of the application to the FTA and guarantees that all the insetup provided is correct and all the necessary documents are included. Follow-up and Approval: AB Capital monitors the status of the application and informs the client periodically until the TRC is received. Why Legal Entities Should Obtain a TRC in the UAE? Obtaining a TRC as a legal person provides numerous benefits for businesses, especially those engaged in cross-border transactions: Avoid Double Taxation: The TRC enables a legal entity to escape from being taxed in the UAE and in another country on the same income. Access to Favorable Tax Rates:The advantage of having a TRC is that companies can take advantage of the lower tax rates that are negotiated between the UAE and other countries. Strengthened Business Reputation: Having a TRC puts your company in a better position, proving that the company is in compliance with the international tax laws. Financial Optimization: The TRC enables companies to minimize their tax liability and invest more in their growth and development. Challenges in Obtaining a TRC for Legal Persons and How AB Capital Can Help Although the process of obtaining a TRC holds many advantages, it may have its difficulties for those companies who lack knowledge of corresponding legislation. Common challenges include: Complex Documentation: Meeting the FTA’s requirements on all the documents, you may encounter problems without the help of a professional. Time-Consuming Process: Seeking a TRC may be cumbersome, particularly if some organizations are operating in several different countries. Frequent Changes in Regulations: With UAE taxes and compliance laws, there can be amendments in laws which can make it hard for the businesses to adapt to the changes. These challenges are well handled by AB Capital Services through provision of services that are unique to each client. It also makes sure that approved applications at the time of submission are properly prepared and timely submitted so that they are not rejected by the UAE laws. AB Capital Services: Your Trusted Partner in TRC Applications AB Capital Services has established itself as a trusted partner for businesses seeking tax residency certificates in the UAE. With a team of experienced consultants, they offer comprehensive support for businesses throughout the TRC application process. Here’s why AB Capital is the right choice: Expert Knowledge: Their team has vast knowledge in UAE tax residency laws, which makes your company’s application to be in conformity with the laws. Personalized Solutions: AB Capital offers its services in a way that is most suitable for your business needs, so you get the best services that you need. Transparent and Timely Service: The company is also very professional and keeps the client informed throughout the process and the process is very fast. TRC Certificate for Legal Persons vs. Natural Persons While both legal persons (companies) and natural persons (individuals) can apply for a TRC, the process and requirements differ significantly: Legal Entities: Need to provide a lot of insetup concerning their activities, financial

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How to get TRC Certificate in the UAE for Natural Person? AB Capital Services

1 Comment / Accounting, Blog, Business Banking Solutions, Corporate Services, Finance, Tax, UAE Compliance / AB Capital Services

A TRC Certificate in the UAE (Tax Residency Certificate) offers significant benefits for individuals and businesses, particularly those involved in international trade and investment. With a TRC, UAE residents can leverage the country’s extensive network of tax treaties to avoid double taxation and enjoy favorable tax treatment in over 100 countries. However, obtaining a TRC can be a complex process that requires meeting specific residency criteria and submitting various documents to the Federal Tax Authority (FTA). AB Capital Services, a trusted business consultancy in Dubai, streamlines the application process, ensuring compliance and efficiency, so applicants can secure their TRC with ease. Whether you’re a natural person or a corporate entity, AB Capital provides personalized guidance to make the TRC application process straightforward and legally sound.

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Corporate Tax Formation in Dubai by AB Capital Services

Corporate Tax Formation in the UAE: A Complete Guide by AB Capital

1 Comment / Accounting, Blog, Corporate Services, Finance, Tax, UAE Compliance / AB Capital Services

AB Capital: Simplifying Corporate Tax Formation in Dubai

As a leading business consultancy in Dubai, AB Capital makes corporate tax setup a breeze for businesses. With the UAE’s growing economy, compliance with tax laws is vital, and failure to do so could lead to penalties. AB Capital, an FTA Certified Tax Agency, offers a fast, efficient, and customized service for businesses of all sizes. Their expertise ensures that companies meet the necessary requirements, avoiding costly mistakes while allowing them to focus on growth.

With their end-to-end support, from document preparation to filing, AB Capital guarantees compliance and peace of mind in Dubai’s competitive business landscape.

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Maximizing Business Growth in the UAE: Leveraging Holding Companies and Group Structuring

2 Comments / Blog, Company Formation, Corporate Services, Finance / AB Capital Services

The United Arab Emirates (UAE) has grown and developed into an international business destination that attracts investors, business people and multinational corporations. Another of the most effective tactics which companies apply in order to increase effectiveness of their activity in the UAE is leveraging holding companies and group structuring. It also has a number of financial, legal, and strategic advantages in addition to increasing operational effectiveness. In this article we are going to discuss the importance of holding companies in the UAE, the advantages of group structuring and how companies can leverage such models. What is a Holding Company? A holding company is simply a company that owns shares in other companies. It does not engage in production and sale of goods and services, but rather supervises and directs its operating companies through owning their shares or securities. In the UAE, the holding companies are generally adopted for managing the fixed assets like real estate, patents, trademarks and other investments. Benefits of Setting Up a Holding Company in the UAE Asset Protection: The first advantage of a holding company is that it provides the shareholders with better protection of their assets. Through this integration, operational and investment assets are distinguished to protect high risk and valuable assets from legal actions or other losses. Tax Optimization: The UAE has a relatively low tax system and no income tax, capital gains tax, or withholding taxes for holding companies. This makes it possible for businesses to minimize their tax responsibilities, thus making the UAE a favorable country for holding company setups. Simplified Management: A holding company structure makes the management of several subsidiaries easier. It enables the parent company to manage and coordinate several businesses in one organization, hence enhancing efficiency. Risk Mitigation: There are advantages of group structuring through holding companies, and the risks are also reduced. Another advantage is that if one subsidiary is experiencing some financial troubles or legal issues, the holding company and the rest of the subsidiaries are protected from the direct influence. Facilitated Investment Opportunities: The legal requirements of holding companies in the UAE can attract local and foreign investors because of the country’s strong legal system, geographical advantage, and business-friendly environment. It also facilitates mergers, acquisitions, and joint venture since the companies are already structured to accommodate such strategies. Understanding Group Structuring in the UAE Group structuring involves the formulation of a pyramid in which several companies fall under a single parent company. It also makes business sense since it enables organizations to spread their operations while at the same time keeping all the important functions under their control. Key Advantages of Group Structuring Enhanced Operational Efficiency: This is because through group structuring, businesses are able to reduce costs in different areas of operation such as through consolidation of core functions such as finance, human resource and insetup technology. Brand Consistency and Market Expansion: Group structures also enable the companies to work under a single brand hence reducing on the costs of expansion to new markets. They can work under the same brand name and this creates a strong market image and customer confidence. Legal and Financial Flexibility: Corporate group structure allows for the easy of resource mobility, shifting of funds from one subsidiary to another and flexibility in restructuring the company. This flexibility helps to respond to changes in the market and to capture new opportunities. Regulatory Compliance and Control: The legal structure of the UAE is friendly to group structures as there is a lot of certainty and backing for conglomerate structures. This assists in observing legal requirements of the country of operation while at the same time exercising some level of control over various business operations. Steps to Set Up a Holding Company in the UAE Choose the Right Jurisdiction: The UAE has a number of options available to business people in terms of setup of companies: mainland, free zones and offshore. The choice of the right jurisdiction is very important if one wants to reap maximum benefits of having a holding company setup. Define the Business Structure: Select the type of holding company and its subsidiaries depending on the goals that you set for your business. This could be in the form of investment holding, asset management or managing operating businesses. Legal and Regulatory Compliance: Make sure that your holding company is in line with the UAE laws regarding licensing, reporting and taxation. One should seek legal and financial advice when dealing with the requirements set by the government. Capital Requirements and Funding: Determine the amount of capital required for the holding company and the funding sources available. This could be through internal resource mobilization, external financing or through partnerships. Develop a Governance Framework: Establish a sound corporate governance system that will help in the management of subsidiary companies, risk management and corporate governance. This entails the appointment of a board of directors, structure of management and internal controls. Common Challenges in Holding Companies & Group Structuring Regulatory Complexity: The legal framework of the UAE is complex, particularly for those organizations that are new to the region. One needs to be in touch with the existing rules and regulations to avoid coming across the legal pitfalls. Cost of Setup and Maintenance: Running a holding company and its subsidiaries also require some amount of expenditure in the form of licenses, legal fees and other overheads. Corporate Governance: The operational and strategic management of several subsidiaries within a group structure calls for proper corporate governance to ensure that all the subsidiaries are aligned and operate as a single entity towards the realization of the group’s strategic vision. Market Adaptability: The business environment of the UAE is very competitive and constantly evolving and therefore the structures of the companies have to be flexible enough to respond to the changes in the market, competition and the economy. How to Leverage Holding Companies for Business Growth Strategic Acquisitions: As for the acquisition of new businesses, revenue sources, and markets, it is possible to use holding companies

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How to Create a PayPal Account in the UAE: A Step-by-Step Guide

Leave a Comment / Blog, Finance / AB Capital Services

PayPal is a popular online payment platform that allows you to send and receive money, make online purchases, and accept payments for your business. If you live in the UAE & want to receive and send payments for your business, creating a PayPal account can be a convenient way to manage your finances and conduct online transactions. Step 1: Sign Up for a PayPal Account Visit the PayPal website: Go to www.paypal.com. Click “Sign Up“: You’ll find this button at the top right corner of the page or on the homepage as shown in the above image. Choose a personal or business account: Select the option that best suits your needs. For personal use, choose “Personal.” For business purposes, select “Business.” Provide your email address: Enter your email address and click “Continue.” Create a password: Choose a strong password to protect your account. Enter your personal insetup: Fill in the required personal details, such as your name, date of birth, and address. Verify your email address: PayPal will send a verification email to the address you provided. Click on the verification link in the email to confirm your account. Step 2: Link Your Bank Account or Credit Card Log in to your PayPal account: Enter your email address and password. Go to “Wallet“: Click on the “Wallet” tab at the top of the page. Choose “Link a bank or credit card“: Select this option to add a payment method to your account. Select your payment method: Choose whether you want to link a bank account or a credit card. Follow the instructions: PayPal will provide specific instructions for linking your chosen payment method. You may need to provide additional insetup, such as your bank account number or credit card details. Step 3: Verify Your Identity (Optional) PayPal may require you to verify your identity to prevent fraud. This process typically involves providing additional documents, such as a government-issued ID or proof of address. A PayPal Business account can be verified via a Union PayCard or an international credit card. Step 4: Setting Up Two-Factor Authentication on PayPal Account It is very important to add a security feature to your PayPal account as Two-factor authentication (2FA) adds an extra layer of security to your PayPal account, making it much harder for unauthorized users to access your funds. Here’s how to set it up: Log in to your PayPal Go to “Settings.” You’ll find this option in the top right corner of the page. Click on “Security.” Locate “Two-Factor Authentication.” Click on the “Set Up” button next to it. Choose your preferred method: PayPal offers two options: Use an authenticator app Use a security key device Follow the on-screen instructions. Security Key Device: You can purchase a security key device and use it for authentication. For an authenticator app: Scan the QR code provided by PayPal using your app. (You can use Google Authenticator or Microsoft Authenticator Confirm your choice: Review the insetup and click “Confirm” to activate 2FA. Once you’ve set up 2FA, you’ll be prompted to enter a security code whenever you log in to your PayPal account from a new device or location. This extra step significantly reduces the risk of unauthorized access. Remember to keep your mobile device or authenticator app secure to prevent unauthorized access to your security codes. Step 5: Start Using PayPal Once your account is verified and you have linked a payment method, you can start using PayPal for various transactions: Sending money: To send money, log in to your PayPal account, click on “Send & Request,” and enter the recipient’s email address or mobile number. Receiving money: You can receive payments from others by sharing your PayPal email address or using a QR code. Making online purchases: Many online stores accept PayPal as a payment method. Simply select PayPal as your payment option during checkout. Accepting payments for your business: If you have a business account, you can use PayPal to accept payments from customers on your website or through invoices. Tips for Using PayPal in the UAE Check fees: PayPal may charge fees for certain transactions, such as international transfers or currency conversions. Be aware of these fees and factor them into your calculations. Protect your account: Use a strong password, avoid sharing your account details with others, and be cautious of phishing scams. Contact PayPal customer support: If you have any issues or questions, contact PayPal’s customer support for assistance. 4 Benefits of a Business PayPal Account in UAE Easy money: You can easily send and receive money online. Sell stuff online: You can sell things on your website or social media. Safe money: PayPal helps protect your money from bad guys. Work with other businesses: You can connect PayPal to other tools you use for your business. How to check fees of Paypal Business Account in UAE? To check the fees associated with your PayPal Business Account in the UAE, you can: Log in to your PayPal account. Navigate to the “Fees” section: This is typically located under “Help” or “Settings.” Review the fee structure: The fees will be outlined in detail, including transaction fees, currency conversion fees, and any other applicable charges. Look for specific insetup: Pay attention to fees related to domestic and international transactions, as well as any fees associated with accepting payments through your website or social media. Additionally, you can: Contact PayPal customer support: They can provide you with specific insetup about the fees that apply to your account based on your usage. Refer to PayPal’s website: The PayPal website often has a section dedicated to fees and pricing insetup: https://www.paypal.com/ae/webapps/mpp/merchant-fees Conclusion Creating a PayPal business account in the UAE is an easy process that can provide you with a convenient and secure way to manage your finances and conduct online transactions. By following the steps outlined in this guide, you can set up your PayPal account and start using it immediately.

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Company Formation as a foreigner in Dubai

5 Things To Know Before Starting a Business in Dubai (as a Foreigner)

Leave a Comment / Finance / AB Capital Services

Entrepreneurs from all over the world call Dubai home. VirtuZone reported that over 20,000 new businesses launched in Dubai last year alone. The long-term visa, which enables foreigners to stay in the UAE for protracted periods and possibly retire here at the end of their careers, is one of the most attractive things about this place. Even non-residents can set up their company in the UAE and manage their company from any location in the world with the right assistance. But how do you really start a business in Dubai as a foreigner? What are the steps involved? Here’s a detailed guide about how to launch a business in Dubai. Is it possible for a foreigner to start a business in Dubai? It’s very possible for non-residents to start a business in Dubai. In fact, over 80% of the residents are foreigners, and many of them run their own businesses. Dubai actively welcomes foreign investors and entrepreneurs. The emirate is home to a large number of setup agents and company setup specialists who were established to assist foreign business owners with the license, visa, and business incorporation procedures. Tax exemptions, simplicity in starting a business, speedy procedures, a booming economy & political stability are just a few benefits for foreigners starting new businesses in Dubai and other UAE emirates. The short answer is that yes, expatriates can easily register a new business in the UAE. Things to know before starting a business in Dubai Before we get into explaining how to start a business in Dubai as a foreigner, it is important to understand how things work in the city. Why Dubai? The city has gained international prominence as the economic hub of the Middle East. Its strategic geographical location provides easy connectivity to suppliers in the Gulf, Asia as well as the African subcontinent. Also, 90% of the city’s population comprises expats from all over the world. Dubai has an excellent infrastructure with a very safe living environment and tax-friendly policies. The visionary leadership which supports technology and innovation, create highly conducive for entrepreneurs to thrive. Therefore, starting a business in Dubai as a foreigner provides you with the option to live in such a lucrative city. Corporate structure One of the first decisions you need to make before starting a business in Dubai as a foreigner is the type of company you want. This will be determined by various factors, including the nature of your business, the purpose of your company and its operational aspects, among others. There are two major types of corporate structures that you can choose from: Limited Liability Company and Sole Establishment. Jurisdiction In Dubai, you can set up shop either on the mainland or in one of the many free zones. Starting a business in Dubai as a foreigner, one may wonder what is the difference between mainland and free zones. Mainland — operating a company on Dubai Mainland allows you to trade within the local markets as well as trade internationally. The process of company setup is quite systematic. Moreover, you can get a business license within a day. Free zones — Setting up a business in free zones is quite reasonable and favourable for new businesses. Some of the most prominent free zones in Dubai include Jebel Ali Free Zone (JAFZA), Dubai Airport Free Zone (DAFZA), Dubai Media City, Dubai Silicon Oasis, Dubai International Financial Center (DIFC), Dubai Healthcare City (DHC), and Dubai Multi Commodities Center (DMCC). The rules and regulations for businesses and timeline for setup formalities, however, may vary from one free zone to another as they are governed by their own authorities. Steps to start a business in Dubai as a non-resident Setting up a company in Dubai is straightforward if you know the rules and regulations maintained by the government. To start a business in Dubai as a foreigner or non-resident, follow these steps: 1. Decide your business type The type of business you want to build is one of the most important decisions you need to make before starting a business in Dubai as a foreigner. The activity you choose will define the structure of your company. You can launch a sole proprietorship that allows you to be the sole owner of your business. Furthermore, you can form a limited liability company (LLC), the most common type of business structure in Dubai that allows you to have a separate legal structure. 2. Choose a trading name Trade name reservation is a precondition for a company’s setup. Your company name must reflect the type of business you do. The legal advisors at AB Capital can help you choose a name that is not previously registered, does not violate public sentiments, and complies with your business activities. 3. Obtain a license Acquiring a license is mandatory to start a business in Dubai as a foreigner. The trade license can be obtained directly from the respective free zone authorities, or from the DED. 4. Business setup and incorporation Once you’re done with all the steps mentioned above, you can register your business with the concerned jurisdiction and get started with your operational activities in the UAE. Registering would mean gathering all documents, identity proofs, trade licenses, permissions, bank accounts, etc. Your business becomes a legal entity in Dubai post-setup only. 5. Get a business visa A business visa facilitates the movement in and out of the country for the business. Besides, it allows three of the senior business staff to apply for residency. The people who want to start a business in Dubai as an expat can get a long-term visa for themselves and their dependents. You can get the visa by contacting the local embassy. Furthermore, anyone willing to relocate to the UAE to establish a business is eligible to apply for a business visa. Cost of starting a business in Dubai as an expat The cost of starting a business in Dubai as an expat or a foreigner is dependent on various factors like type of

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Key Tips to Financial Forecasting and Budgeting in UAE

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Financial forecasting involves projecting a business’s upcoming financial performance where the key elements are revenues, expenses and cash flow. The prediction is based on previous financial data, records and trends. Financial forecasting is a step for making informed business decisions and other relevant data for a successful and long term business planning. Whereas, Budgeting is the process of making a financial plan for a period of time like a year or so. It involves setting up financial goals and allocating resources such as money, time and people achieve those certain goals. The difference between the two is really simple that is budget will tell you where a business wants to go and forecast will tell you where the business is actually going. Here are a few efficient key tips to ensure successful financial forecasting and budgeting in the UAE: Overall the key is to successfully and efficiently have your business budgeted and financially forecasted in UAE to have an understanding of the market and where your business stands and it is furthermore very important to have relevant people around it. It is always beneficial to take help and advice from a professional who has been in this niche for long enough now and can guide you well. If you are a start up or at really any stage of your business, these are a few elements one needs to keep in mind before any decision making. The success solely depends on the best decision making and our team will do that for you with their skill and experience. Contact us at AB Capital and get a free consultancy right now for any of your business and accounting needs.

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