how to start a sole proprietorship in Dubai UAE

How to Start a Sole Proprietorship in the UAE in 2025? Essential Steps and Benefits

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In the United Arab Emirates (UAE), the most common form of business is the sole proprietorship because it provides full control of the business. This is because of business friendly policies on the market, tax holidays, and sundry incentives which have rated the UAE among the most favored business locations across the globe among budding business people. This guide aims to explain what it means to have a sole proprietor business in the UAE, advantages and disadvantages of such business, and how to set up a sole proprietor business in the UAE. What is a Sole Proprietorship? Sole trader is that type of business which is carried by an individual who is personally liable for the business. In contrast to corporations or partnerships, the sole trader is not legally distinguished from the owner, thus the owner himself is fully responsible for all the legal liabilities of the enterprise. Key Features of Sole Proprietorship in the UAE Complete Ownership and Control In the UAE, sole trader businesses are owned 100% by the individual who is conducting the business. That is why this structure is best suited for those who tend to like autonomy and direct authority over the business processes. Personal Liability The business owner is legally liable for all the debts, which may be a problem in the event that the business is contracted to provide services that it cannot deliver. Simplified Setup Process The registration of a sole trader business entity in the UAE is relatively easy, and in most cases, the legal formalities might be less compared with other legal entities. Benefits of Sole Proprietorship in the UAE Ease of Management If there is only one owner of the business, the strategic actions are fast to make, therefore the time taken to execute strategies and respond to change is minimal. No Corporate Tax At the moment, the UAE does not have the corporate tax policy for business entities, therefore it’s favorable for sole traders. Access to Local Market A sole trader gives full access to the UAE local market, especially if the owner is a UAE national. For the expatriates, this structure is restricted to some business activities, unless they are set up in free zones. Lower Costs and Administrative Requirements Sole trader business entity is relatively easy to establish and has fewer regulations, hence incurring less establishment and operating costs. Steps to Establish a Sole Proprietorship in the UAE Choose a Business Activity Establish business activity to be carried out, since it defines the licenses and permissions to be obtained. The Department of Economic Development (DED) controls business operations and offers a list of approved operations. Select a Trade Name It is important that your trade name should be in harmony with the type of business you are carrying out. To make certain it conforms to the UAE laws, there are no obscene words or any reference to religion. Obtain Initial Approval Once you have selected a trade name and business activity, you will require the initial approval of the DED. This approval shows the first stamp of approval from the government on your business. Submit Required Documents Required documents include a clear copy of the passport, Emirates ID, an NOC, if you have a sponsor currently, and proof of residence. Secure a Business Location A business location and tenancy contract are compulsory for mainland businesses. In the case of free zone sole proprietorship, some of the amenities could be offered within the free zone. Obtain a Business License After reading the above steps, seek a professional or commercial license, depending on your business. After approval, one is legally allowed to commence business in the UAE. Costs of Establishing a Sole Proprietorship in the UAE Costs may vary based on location (mainland vs. free zone) and business activity. Major costs to consider include: Trade Name Reservation: AED 600 – AED 800 Initial Approval: AED 1,000 – AED 2,000 LSA Fees (For Foreigners): AED 5,000 – AED 15,000 annually Trade License Fee: AED 3,000 – AED 7,000 Office Space Rental: AED 10,000+ annually (depends on location and size) Municipality Fees: 5% of the office rent Administrative Costs: AED 1,000 – AED 2,000 for document attestation, legal translations, etc. Free Zone vs. Mainland Sole Proprietorship Free Zone Free zones allow 100% foreign ownership as well as; they are subject to few taxes. But they restrict your business operations to the free zone unless you get special permits. Mainland Mainland sole proprietorship provide a gateway to the rest of the UAE market, but expatriates may require a UAE national local service agent. Limitations of Sole Proprietorship in the UAE Personal Liability The owner has unlimited liability of the business, implying the fact that personal property of the owner may be responsible for paying of some debts in instances where businesses are in deep. Limited Capital Options One of the disadvantages of a sole trader is that it may be difficult for such a trader to mobilize large capital, as compared to a corporation. Restricted for Some Nationalities Some of the challenges that expatriates encounter when starting some forms of businesses on the mainland include lack of permission to start some forms of businesses without a local sponsor or service agent. Important Legal Considerations for Sole Proprietors Comply with Regulatory Requirements The key idea is that business owners and managers ought to follow the requirements of DED, in order not to receive penalties or face shutting down the business. Renew Business License Annually A business license requires annual renewal. Renewals should be made in good time to continue with the operations legally. Consider Liability Insurance To reduce personal exposure, the sole trader should consider taking liability insurance. How AB Capital Supports Entrepreneurs in Setting Up a Sole Proprietorship in the UAE AB Capital Services offers a full range of services to clients who want to start a business as a sole trader in the UAE. During company formation consultation and advising in choosing the most

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How to Start a Cafeteria Business in UAE: Is It the Best Business to Start in 2025?

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A fertile ground for innovative ventures, the United Arab Emirates (UAE) is a vibrant hub of entrepreneurship. Starting a cafeteria business in UAE is one of the most promising opportunities in 2025. The UAE, with its cosmopolitan population, booming tourism industry and strong economy, is a fantastic environment in which to start, or expand, a successful cafeteria. However, how do you start a cafeteria business in UAE and is it really the best business to start in 2025? Let’s delve deeper. The UAE’s food and beverage industry is projected to grow at a compound annual growth rate (CAGR) of over 6% by 2025, driven by a booming tourism sector, increasing disposable incomes, and a shift towards casual and health-conscious dining trends. Why Start a Cafeteria Business in UAE? The potential of the UAE’s cafeteria industry is driven by the dynamic demographic landscape of the country. Due to residents and tourists that have diverse cultural background, the need for different culinary options there is very high. The unique opportunity to attract a wide spectrum of customers is given to cafeterias that provide a gamut of cuisines, from the global to the local. The UAE economy is heavily dependent on tourism. Dubai and Abu Dhabi are cities that attract millions of visitors of each year. Cafeterias are a popular choice among tourists since they are affordable and easy. Also, the state’s pro business policies, tax benefits and ease of getting licenses for a cafeteria business in this region makes it appealing for starting up a cafeteria business in this region. Also check: How To Start A Tourism Business In Dubai 2025 With Investment & Benefits? Steps to Establish Your Cafeteria Business When you are starting a cafeteria business in UAE is of course carefully planned and executed. First, you conduct thorough market research. By understanding customers preferences and analyzing competitors, they will be able to know opportunities and areas of differentiation. To properly execute your startup, it’s important of crafting a solid business plan which includes outlining potential methods of raising capital, operational costs, and revenue forecasts. It is important to select the right location. Cafeterias make a killing where the foot fall is high, such as the malls, business districts and tourist hotspots. After you find a good space, you’ll have to navigate the legal and regulatory landscape. You must get a trade license, food safety certification and other permits. By partnering with companies such as AB Capital Services FZE, this process becomes much simplified and feasible also for compliance with local regulations. Then, you should start setting up your cafeteria. Put your money where your mouth is (literally) and invest in good quality kitchen equipment. To get loyal customer base, hire experienced staff and give good customer service to them. Another important component is marketing. Use social media and collaborative with influencers and provide promotional deals to create hype around your launch. What are the Costs and Challenges? Starting a cafeteria business in UAE is a very expensive affair. Licensing and permits alone can cost between AED 20,000 and AED 50,000. Rent and Utility is based on location, but typically between AED 50,000 and AED 200,000 annually. The equipment, furniture along with marketing are other expenses. The amount of investment required can be from AED 200,000 to AED 600,000. The success potential is high, but that’s not the only thing, the business of the cafeteria café has its challenges. UAE Food and beverage sector is highly competitive so that Businesses are always required to innovate and differentiated themselves. Profitability is also subject to the operational costs — particularly rent and utilities. In addition, adherence to strict health and safety standards is routinely a condition. Also check: How to Start an Event Management Business in Dubai? Why 2025 is an Ideal Year? Several trends make 2025 a good year to begin a cafeteria business in UAE. Casual dining and health conscious menu options are becoming the preference of consumers. These trends can be catered to by cafeterias that have vegan or organic or less calorie dishes. Another driving force behind it is technology. Industry standards are online ordering, food delivery apps, and AI driven customer service. These technologies allow for new convenient ways to cater and stay competitive. Pros of the cafeteria industry in the UAE are given by the continued economic growth of the country, and its investment in tourism infrastructure. How AB Capital Can Help? Business in UAE starts with a lot of legal and administrative work, and any person who keenly observes the rules would have to admit they require preparation time. AB Capital Services can make a difference here. AB Capital is an expert in business setup and offers end to end support from choosing the right legal structure to getting licenses and permits. In addition, these companies also provide financial advisory services to entrepreneurs to help them invest and reduce the operational costs. With AB Capital Services, Dubai, you can focus on creating a one of a kind and memorable cafeteria experience without worrying about running the administrative part of things. Also check: How to Start a Scrap Business in Dubai: 12 Easy Steps Conclusion A promising venture with great potential for growth, starting a cafeteria business in UAE in 2025 is a good idea. A supportive business environment, a broad customer base and changing dining trends combine to make it a fertile environment for success. But that doesn’t mean your business will reach the heights of profitability without careful planning, strategic execution and constant innovation. Entrepreneurs can get to where it’s at by doing unbiased market research, finding the best location, and relying on people like AB Capital, whose services are things that can help them pass off on to create a successful cafeteria business. This could be one of the best businesses to start in 2025 if you take the right approach. Schedule a FREE Consultation with AB Capital today by clicking here. FAQs How much does it cost to start a cafeteria

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5 Easy Steps for Company Registration in Dubai in 2025

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In 2025, Dubai is still a kingpin for businesses. Entrepreneurs are drawn to the city because of its combination of a tax-free environment, world-class infrastructure and limitless opportunities. However, Company Registration in Dubai is the key to unlocking all that potential. The process can feel overwhelming, but it doesn’t have to be. In reality, setting up your business here is actually easier than you might think. In this article, we will break down the five simple steps to complete your Company Registration in Dubai and get your business off the ground. Step 1: Choose Your Business Structure Step 2: Find the Right Location Step 3: Secure Your Trade Name Step 4: Get Your Licenses and Approvals Step 5: Finalize Your Registration and Start Your Business Step 1: Choose Your Business Structure Before you can start your company registration in Dubai officially, you need to decide what type of business structure you need. Do you want to have a free zone company with the freedom and tax benefits? Or do you want to expand into the larger UAE market with a mainland company? Perhaps you want to go global and set up offshore. It all depends on what you are trying to achieve. AB Capital Services can help you if you’re unsure which structure will be best for your business aspirations, so you can be sure your setup is the right one. Step 2: Find the Right Location Dubai is a city of opportunity, and the right location can make or break your business. Tax benefits are free zones and are perfect for businesses that don’t require a physical presence in the city. However, mainland companies enable you to reach out to the UAE and even beyond its borders. Offshore might be your best bet if you’re looking for international operations. The cost of company setup ranges between AED 9,000 to AED 40,000, and it will depend on the location choice, and the market you can access will also be affected. This is where insight from business experts like the people at AB Capital Services will mean that you choose wisely, and your business will thrive. They know the ins and outs of each location and make the process of company registration in Dubai a lot easier. Step 3: Secure Your Trade Name After you have decided on the right structure and location, the next step for company registration in Dubai is to choose your trade name. Your business name is important to your branding and identity, and it may sound simple, but it is. In Dubai, it has to be unique, professional and reflect your business. You can request for a Trade name registration on the government website by clicking here. Don’t take the risk of delays by choosing a name that doesn’t meet the requirements. With AB Capital Services, you can be sure that your name is both compliant and memorable, and that the approval process will be faster. Your first impression is your name, make it count. Step 4: Get Your Licenses and Approvals Now comes the paperwork. In order to finish your company registration in Dubai, you’ll be required to obtain the necessary licenses. These licenses depend on your business activity: A trading activity Commercial License. A Professional License for service based businesses. Manufacturing and production Industrial License. This is usually the part that trips people up, but don’t let it get you down. With the right guidance, you’ll have all your licenses in hand without a hitch. This step is made simple by AB Capital Services, Dubai, who takes care of all the bureaucratic hurdles and makes sure you are compliant with local regulations. Step 5: Finalize Your Registration and Start Your Business You’re almost there! After you have secured your trade name, licenses and approvals, it’s time to complete your company registration in Dubai. Registering with relevant authorities and making sure you officially identify your business as such forms part of this step. After registration, you’ll need to: Open a corporate bank account. Set up your office. Apply for visas for yourself and your employees. Now you have all of these pieces in place, you’re ready to launch. AB Capital Services takes care of everything from bank account setup to office leasing, so you’re ready to go when you hit the ground running. Why Choose Dubai for Your Business? There are no doubts about the advantages of company registration in Dubai. Dubai’s tax-free environment, world-class infrastructure and access to both regional and international markets make it an ideal place for entrepreneurs. Dubai has what you need to succeed, whether you want to serve the local market or expand globally. With a business friendly environment that encourages innovation and growth, there has never been a better time to register your company. Conclusion Company Registration in Dubai is easier and more straightforward in 2025 than ever. If you follow these five simple steps—choosing your structure, choosing your location, securing your trade name, getting your licenses, and finalizing your registration—you’ll be well on your way to starting your Dubai based business. If you want to make sure everything goes smoothly, then partnering with experts like AB Capital Services will help you with your Company Registration in Dubai. Don’t wait, Dubai is calling and your business needs to be here. FAQ’s 1. What is the process of Company Registration in Dubai? The process of company registration in Dubai involves several key steps. First, you need to choose the right business structure, whether it’s a free zone, mainland, or offshore company. Next, you must select a suitable location, secure a trade name, obtain the necessary licenses, and finally complete the registration with the relevant authorities. The process is straightforward, but it’s best to seek professional guidance to ensure everything is done efficiently. 2. How long does Company Registration in Dubai take? The time it takes for company registration in Dubai can vary depending on the type of company and its structure. Generally, the process takes anywhere from

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Important Tasks for Your First Financial Year Under UAE Corporate Tax Law

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Ensure compliance with UAE Corporate Tax Law as the first financial year ends. Learn key tasks like corporate tax registration, forming tax groups, finalizing accounts, and leveraging tax relief options. Discover actionable tips to avoid penalties, claim foreign tax credits, and meet Federal Tax Authority (FTA) deadlines. Partner with experts for a smooth transition and financial efficiency in 2024.

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Important FTA Guidelines on Transfer Pricing Schedule Reporting Thresholds

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Recently, the Federal Tax Authority (FTA) has issued important guidelines on the Transfer Pricing Schedule reporting thresholds. The purpose of these updates is to increase transparency, facilitate the compliance with international tax standards and boost the tax reporting processes. This article gives insight into how these guidelines affect businesses in the UAE and what to expect. Understanding Transfer Pricing and Its Relevance Transfer pricing is the pricing of goods, services or intangible assets between related entities, for example, subsidiaries of the same parent company. TP ensures compliance with global tax regulations and avoids profit shifting to countries of low tax rate. Through TP regulations, the FTA leads to fair taxation and helps in upholding confidence in the UAE’s tax system. FTA Guidelines on Reporting Thresholds The FTA’s latest guidelines provide clear thresholds for entities that must report under the TP schedule. These thresholds are intended to identify businesses that are engaged in controlled transactions that may affect taxable profits. Here are the key highlights: The guidelines are applicable to entities that are transacting with related parties. Reporting requirements apply to a business only if it meets specific financial thresholds. Businesses above these thresholds are required to provide comprehensive TP documentation. Threshold Criteria for Reporting Understanding the threshold criteria is essential for businesses to determine their reporting obligations. Key considerations include: Annual Revenue Thresholds: Businesses with annual revenues exceeding AED 40 million must comply with TP reporting requirements. Controlled Transaction Thresholds: Entities engaged in controlled transactions exceeding AED 4 million are also obligated to report. Group-wide Revenue: Multinational enterprises (MNEs) with consolidated group revenues above AED 3 billion are subject to additional TP documentation. Documentation and Compliance Requirements This is where the FTA guidelines note that all Transfer Pricing Schedule practices must be meticulously documented to prove that they exist. Required documents include: Master File: A report that provides an overview of the group’s global operations, including structure, financial activities and TP policies. Local File: A document specific to a country that addresses local entities and their related party transactions. Additionally, businesses must: TP documentation should be submitted along with corporate tax returns. Help in keeping the records accurate for their use at audit time. Supply evidence for the use of TP methods. Deadlines and Submission Process Submission deadlines are strictly adhered to by the FTA. Businesses must: Documentation file TP as stipulated time frame, usually deposited at corporate tax filing deadline. Submit through the designated online portals without any hassle. Consequences of Non-Compliance Failure to comply with the FTA’s TP reporting guidelines can result in significant consequences, including: Financial Penalties: Non-compliance may attract hefty fines and penalties. Increased Audit Risks: Non-compliant entities are more likely to face audits and investigations. Reputational Damage: Public scrutiny and reputational harm may follow breaches of TP guidelines. How Businesses Can Prepare? To navigate the FTA’s Transfer Pricing Schedule requirements effectively, businesses should: Conduct a TP Risk Assessment: Look ahead to determine whether current transactions are risky. Implement Robust Documentation Practices: Make sure, all TP policies have been appropriately documented and in line with FTA policy. Engage Expert Consultation: Get advice from TP specialists to make sure you are compliant. Benefits of Compliance Compliance with the FTA’s Transfer Pricing Schedule guidelines offers multiple benefits, including: Enhanced Transparency: It gives investors and stakeholder confidence. Reduced Legal Risks: It mitigates penalties and disputes risk. Streamlined Operations: It makes tax filing processes smoother. Conclusion FTA’s diligent thresholds for Transfer Pricing Schedule reporting portrays that its strong and transparent tax framework would remain. To be compliant, be protected from being caught off guard, and play a positive role in fair and equitable taxation, UAE businesses must adaptively follow these guidelines. Entities can protect its operations and its reputation in a competitive market by carrying out the requirements of the FTA. You can contact AB Capital Services to know more. FAQs about Transfer Pricing What is the purpose of Transfer Pricing guidelines? Transfer Pricing guidelines aim to prevent tax avoidance by ensuring fair pricing of transactions between related entities. Who needs to comply with the FTA’s TP reporting requirements? Entities exceeding the specified financial and transaction thresholds must comply with the reporting requirements. What are the consequences of non-compliance? Non-compliance can lead to financial penalties, increased audit risks, and reputational damage. What documents are required under TP reporting? Businesses must prepare a Master File and Local File to substantiate their TP practices. How can businesses ensure compliance with TP guidelines? Conducting risk assessments, maintaining robust documentation, and seeking expert advice can help businesses ensure compliance.

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Free Zones in UAE: Best Opportunities for Businesses in 2025

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Explore the best free zones in UAE for business in 2025! Discover tax benefits, 100% foreign ownership, and tailored infrastructure. Learn how AB Capital simplifies the setup process with expert guidance. Start your journey today!

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Cost of Dubai LLC Company Registration: 2025 Guide for Entrepreneurs

While it is true that Dubai has enjoyed a steady rise as a global business hub, attracting businesses from many corners of the world, it is the strategic location and business friendly policies of the service. The Limited Liability Company (LLC) is one of the popular businesses structures in Dubai and is chosen by investors due to its popularity. Knowing the costs to be incurred in registering a Dubai LLC is essential to planning and a successful launch. In this comprehensive guide, we will discuss Dubai LLC company registration costs and how AB Capital Services makes it easy for aspiring business owners. Why choose an LLC for Business in Dubai? 1. Flexibility in Business Activities An LLC allows you to do a lot of commercial activities, such as trading, manufacturing, services, and real estate. 2. Access to Local Markets An LLC is different from Free Zone companies in that it can operate freely in the UAE’s local markets, which makes it a good choice for businesses that want to sell to domestic customers. 3. Legal Protection An LLC safeguards shareholders to the point of their share capital, providing a layer of cushion. 4. Local Partner Requirement An Emirati local LLC has a 51% local Emirati partner owning shares, while the profit sharing agreement can be customized. Key Costs of Registering a Dubai LLC The cost of registering an LLC in Dubai varies based on factors like business activity, office location, and government fees. Below is a breakdown of the main expenses: 1. Trade Name Registration It’s important for a trade name to be officially registered by every business in Dubai with the Department of Economic Development (DED). Cost: The price ranges from AED 600 to AED 2,000 depending on the name’s uniqueness and category. 2. Initial Approval Fee This is a mandatory step to get preliminary approval for your business activity from the DED. Cost: The price ranges from AED 600 to AED 2000 depending on the name’s uniqueness and category. 3. Drafting the Memorandum of Association (MoA) The MoA outlines how much capital will be contributed and by whom, as well as how and to whom monies received by the LLC will be paid and how decisions will be made. Cost: Legal consultation, AED 500–AED 2000. 4. License Fees The business license is issued by the DED and depends on your activity type: Commercial License: AED 10,000–AED 15,000. Professional License: AED 7,000–AED 12,000. Industrial License: AED 12,000–AED 18,000. 5. Office Space Rental According to Dubai law, LLCs must have a physical office. Cost: AED 15,000–AED 50,000 annually. 6. Sponsorship Fees A local Emirati sponsor is mandatory for LLC formation. Sponsors charge an annual fee or a percentage of profits: Cost: AED 15,000–AED 50,000 annually. 7. Visa Fees Investor, partner, and employee visas require processing and annual renewal: Cost: AED 3,000–AED 6,000 per visa. 8. Government Approvals and Other Fees Some business activities need regulatory authorities, such as approvals or inspections, to their approval. Cost: AED 2,000–AED 10,000. 9. Corporate Bank Account The initial deposit and banking fees are required to set up a corporate bank account. Cost: Depending on the bank’s requirements, AED 2,000–AED 10,000. Hidden Costs to Consider Marketing and Branding: For building your presence on a market with a crowd. Utilities and Overheads: Electricity, water, and internet can all cost a lot. Consultant Fees: This process can be made easier, and expensive mistakes avoided, with expert advice. Cost Optimization: How AB Capital Helps AB Capital Services specializes in cost-efficient LLC company registration in Dubai. Their services include: Transparent Cost Estimates: Before you start, get a clear breakdown of all expenses. Local Sponsor Assistance: Get connected with trustworthy Emirati partners at competitive rates. Office Space Solutions: As you plan for your affordable office rentals. Document Handling: Expert preparation of the legal requirements, including MoA. Visa Processing: Simplification of investor and employee visas application and management. Benefits of Partnering with AB Capital End-to-End Support: AB Capital takes care of everything from company formation to saving you time and effort. Customized Solutions: Packages according to what will work best for your budget and business type. Expert Knowledge: Dubai’s regulatory landscape is no problem for their experienced consultants. Cost Efficiency: Their streamlined processes and local partnerships save their money. The Registration Process Simplified Consultation with Experts: AB Capital begins by understanding your business objectives and budget. Trade Name and Initial Approvals: They handle the registration of your trade name and secure the necessary approvals. Document Preparation: Expertly drafted MoA and other required documents ensure compliance. License Issuance: AB Capital liaises with the DED to secure your business license promptly. Visa Processing and Bank Account Setup: They assist in obtaining visas and opening a corporate bank account, completing the process seamlessly. Conclusion Registration of a Dubai LLC is an exciting thing for entrepreneurs who want to pursue opportunities in the UAE’s growing market. But it’s important to understand the costs and requirements associated with it. AB Capital Services with its expertise and commitment to excellence makes the registration process simple and easy, so that your business is registered quickly and at a reasonable cost. Contact AB Capital right now and make your entrepreneurial dreams come true! FAQs on Dubai LLC Company Registration Cost 1. What is the minimum capital requirement for a Dubai LLC? Most LLCs do not have a specific minimum capital requirement, but it must be declared in the MoA. 2. Can I own 100% of my LLC in Dubai? By law, a local Emirati partner must hold 51% of shares. However, profit-sharing can be negotiated. 3. How long does it take to register an LLC in Dubai? The process typically takes 2–4 weeks, depending on approvals and documentation. 4. Are there ongoing costs after registration? Yes, annual license renewal, visa renewals, and sponsor fees are recurring expenses. 5. Why choose AB Capital for LLC registration? AB Capital offers transparent pricing, expert guidance, and comprehensive support, ensuring a hassle-free registration experience.

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Open a Company in UAE: Your 2025 Guide to Business Success

Discover the benefits, processes, and key steps to start a business in the UAE, a global hub for entrepreneurs. Learn how AB Capital Services simplifies company formation with expert guidance, tailored solutions, and end-to-end support.

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FTA Certified Agency to get mortgage in Dubai

Steps to Secure a Mortgage in Dubai: A Comprehensive Guide

Looking to buy property in Dubai? Our comprehensive guide explains how to secure a mortgage in Dubai, from finding the right lender to finalizing your purchase by the guidance of AB Capital Services. Learn about the benefits of investing in Dubai’s booming real estate market, understand the step-by-step mortgage process, and discover how AB Capital Services can simplify your journey with expert advice and streamlined solutions. Whether you’re a first-time buyer or an experienced investor, this guide has everything you need to make your dream property a reality.

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Establish company in Dubai 2025 Ab capital services (1)

How to Establish Company in Dubai? A Complete Guide for Entrepreneurs

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Learn how to establish company in Dubai with our comprehensive guide. Discover the benefits of Dubai’s pro-business environment, free zones, tax incentives, and strategic location. Get step-by-step guidance on legal structures, licensing, and more. Partner with AB Capital Services for a smooth, hassle-free setup. Start your journey toward success in Dubai’s thriving market today!

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How to start event management business in Dubai

How to Start an Event Management Business in Dubai?

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Looking to start an event management business in Dubai? This comprehensive guide from AB Capital Services covers essential steps, from market research and business structure selection to licensing and marketing strategies. Learn how to navigate Dubai’s business landscape and build a successful event management company.

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what is the Minimum investment to start a business in dubai

Minimum Investment to Start A Business in Dubai 2025: A Guide

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Discover the Minimum Investment to Start Business in Dubai, including key cost components, low-cost setup options like free zones, and expert advice from AB Capital Services. Learn how to minimize costs and navigate the business setup process with ease. Book a free consultation today!

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How to Start a Small Business in Dubai? A Complete Guide

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Learn how to start a small business in Dubai with this step-by-step guide. Discover AB Capital’s services and the benefits of starting your business in Dubai.

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Detailed Overview of FTA Private Clarifications Guide | AB Capital Services

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FTA Private Clarifications Guide by FTA Certified Agency, their eligibility criteria, application process, and common mistakes to avoid. Simplify tax compliance with AB Capital Services’ expert assistance.

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Dubai International Financial Center (DIFC): Your Gateway To Global Business

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Discover why Dubai International Financial Centre (DIFC) is the ultimate global financial hub. Explore its strategic location, tax advantages, robust legal framework, and world-class facilities. Learn how AB Capital Services simplifies DIFC business setup with expert advisory, financial planning, and compliance solutions for success in the MEASA region.

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Expand From Russia To Dubai: A Smart Business Move

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Expand your business from Russia to Dubai with ease. Discover Dubai’s strategic advantages, tax-free business environment, and access to global markets. Learn how AB Capital Services can simplify your transition and help your business thrive in the UAE.

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Dubai: A Home Away from Home for Indians – Where Community, Opportunity, and Comfort Meet

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

Dubai has grown to become a cosmopolitan city that has attracted people from all over the world, but most especially from India. By virtue of the city’s potentials for economic success and relatively equal balance of tradition and cosmopolitanism, it is a perfect place to start a new life. Dubai is not just a city for Indians, but it is their second home. The Indian Community in Dubai India has its mini-version in Dubai because of the great culture diversity and numerous Indian migrants. A recent survey shows that today there are more than 3.5 million Indians living in the UAE. Dubai markets; the sidewalk vendors and the food markets in Bur Dubai all bear evidence of Indian inspirations. Newcomers are welcomed by a coping community, especially in an environment filled with skyscrapers and other modern structures. You will definitely get Indian restaurants with real tasty biryani or Groceries shops with special parts of your Indian spices, or even festivals like Diwali are celebrated with immense pleasure. This vibrant Indian community makes sure that anyone decides to move to Dubai does not feel homesick. Opportunities Abound for Indians in Dubai Dubai is renowned for its business-friendly environment, making it a hotspot for entrepreneurs and professionals. The city offers a tax-free income, excellent infrastructure, and a strategic location that connects East and West. This economic stability attracts a wide range of Indian professionals, from engineers and IT specialists to hospitality and healthcare experts. AB Capital Services can offer specialized services for those who are interested in investing or opening a business in Dubai because it can make things easier. If you are an investor who wants to diversify your portfolio, or a business person who wants to expand your business in Dubai, AB Capital provides you with professional advisory services that will enable you to maneuver through the economy of Dubai effectively. Due to their experience in various fields including formation of companies, financial planning and investment, they are a perfect ally in achieving your dreams in Dubai. Comfort and Quality of Life in Dubai Another major factor that really pulls many Indians to Dubai is the quality of life they enjoy there. Dubai has a very modern healthcare services provision, quality and well established universities and most importantly it’s secure for foreigners to live in. The emphasis that the city pays to safety, and cleanliness coupled with the commitment by the police department has made the city one of the safest in the nation to live in and, more important, raise a family in. In addition, the Indians have also been successfully able to retain its roots, this is evident from the fine Temples, Gurudwara’s and Mosques in the country for the religions following Indians. These features of solutions enable the Indians to retain their ethnic self-image while adapting to the society of Dubai as cosmopolitan. AB Capital Services: Your Partner in Navigating Dubai’s Financial Landscape In this case, the issue of how to build a secure future in Dubai is closely connected with the problem of finance. AB Capital Services offers financial planning services to clients and immigrants from India in particular. As a corporate advisory firm as well as wealth management specialists, they help their clients navigate the world of business and investment in the UAE. With extensive knowledge of the local and global financial environment, AB Capital guarantees that clients can make sound decisions that will help them achieve their goals. This makes them a client-oriented team that is focused on assisting you to achieve a successful future in Dubai. Conclusion Dubai is no less than a city that is known for the cultures where people from India feel at home. The community, business prospects as well as the climate of the place; the food and traditions that are similar in a new location offers Indians exactly what they desire, the opportunity of a fresh start. The help of such specialists as AB Capital Services makes the process of establishing and building a successful business in this fast-growing city rather unproblematic. Thus, whether a prospect of a new job, starting a business in Dubai, or simply wishing for a change of pace, Dubai holds the promise of a worthwhile life — a second-residence for every Indian. Frequently Asked Questions (FAQ) 1. Is Dubai a good place for Indians to live? Absolutely. Dubai is one of the most Indian-friendly cities in the world, offering excellent opportunities for work, business, and a high standard of living. The large Indian community, cultural familiarity, and tax-free income make it an attractive destination. 2. How can Indians set up a business in Dubai? Setting up a business in Dubai is streamlined thanks to free zones, minimal paperwork, and a supportive legal framework. Partnering with services like AB Capital can help simplify the process, from company formation to financial advisory. 3. Are there good educational facilities in Dubai for Indian families? Yes, Dubai has numerous Indian schools that follow the CBSE and ICSE curriculum, along with international schools offering IB and British curriculum options. This ensures that families have access to high-quality education tailored to their needs. 4. Is it easy for Indians to find jobs in Dubai? Yes, particularly in sectors like IT, finance, construction, healthcare, and hospitality. Dubai’s rapidly growing economy creates a steady demand for skilled professionals. Networking within the Indian community can also be beneficial. 5. What are the benefits of partnering with AB Capital Services? AB Capital Services provides tailored financial advisory, corporate structuring, and investment solutions to individuals and businesses. Their expertise helps clients navigate Dubai’s financial landscape with ease, ensuring sustainable growth.

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EASY GUIDE ON HOW TO GET A MORTGAGE IN DUBAI: COMPLETE GUIDE 2025

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

Are you ready to invest in one of the most active global real estate markets? Bearing in mind that Dubai boasts of and offers luxurious lifestyle, no tax on personal income, and superior quality of life, the city has become one of the most attractive destinations for property purchasers and investors. If you are planning to purchase an affordable property in Dubai and your plan is to use a mortgage, then it is crucial for you to know about how to get a mortgage in Dubai. In this guide, we will explain how to get a mortgage in Dubai on properties, give an overview of the main requirements, and tell you about AB Capital Services as your mortgage broker. Why Choose Dubai for Property Investment? This has made Dubai to be a preferred destination for property investment because of the fast-growing economy, strategic position and high returns. For both residents and international investors, the benefits of owning property here include: High ROI: Rental yields in Dubai are among some of the highest in the world. Tax-Free Income: No property tax or capital gains tax. Stable Economy: A hedged-off, diversified economy based on tourism, financial services, and export. World-Class Infrastructure: Preferably recognized for its hedonistic, spectacular architecture, and superior standards of living. With such strong arguments, it is not shocking to see that the real estate market in Dubai is booming. Nonetheless, the purchase of property using a mortgage entails the right knowledge of the financing opportunities as well as the process. Step-by-Step Guide to Getting a Mortgage in Dubai In order to make a right decision, it is significant to understand how the mortgages work in Dubai and what does the process involve. 1. Understand the Types of Mortgages Available The mortgage market in Dubai has a number of choices for residents and non-residents. Key mortgage types include: Fixed-Rate Mortgages: It provides a fixed and predetermined interest rates with attached tenors, these ranges from one to as high as five years. Variable-Rate Mortgages: The interest rate is adjusted according to the base lending rate of the United Arab Emirates. Islamic Mortgages: Islamic home financing, which is a type of mortgage that complies with the Islamic law. Both are useful, but contain their positives and negatives, depending on market environment and own financial objectives. You can talk to a mortgage advisor such as AB Capital Services to find out which of the two suits you best. 2. Eligibility Criteria for Mortgages in Dubai Mortgage application is open to both residents and non-residents of the UAE, but the conditions vary. Here’s a quick breakdown: UAE Residents: The majority of the banks provide first-time buyer loans at 80% of the property value with a 20% deposit. Non-Residents: Usual proportion of 50 to 75 percent of the property value and down payment of 25 to 50 percent. Income Requirements: Lenders want to be sure that the borrower has a steady income. This encompasses paid employees and business people who can produce income proof. Credit History: It is legalized that payment of damages or any financial product requires a good credit history. 3. Calculate Your Budget and Affordability One of the most important questions that need to be answered when considering property investment is how much one can afford. Consider all costs, including: Down Payment: This is usually 20 percent for residents and about 25-50 percent for non-residents. Mortgage Fees: This is in addition to other charges such as valuation, processing and registration fees. Interest Rates: Deduct fixed and variable rate to determine monthly payment. Mortgage calculators like the ones provided by AB Capital give you an exact figure of what you can afford and one can then budget for an amount accordingly. 4. Documents Required for Mortgage Approval While the exact documents may vary by lender, the following are commonly required: Passport and Visa: Identification and residency proof. Salary Certificate or Trade License: Proof of employment or business ownership. Bank Statements: Typically for the last six months. Credit Score Report: For assessing creditworthiness. Having all documents organized speeds up the mortgage approval process, allowing you to move quickly when you find the right property. Mortgage Approval Process in Dubai After accumulating the necessary papers needed for the mortgage and determining the financial estimation, a person can apply for a mortgage. The process generally involves: Pre-Approval: Gives you a clear understanding of how much you are willing to borrow and makes you a better negotiator. Property Valuation: A valuation report provides an estimate of the market value of the property at play, confirming the market value, which is crucial in finalizing the amount of the loan required. Final Approval: Upon successful valuation, the bank sends a letter of final approval to the borrower. Transfer of Property Ownership: You can then get to the Dubai Land Department to complete the mortgage contract after approval of the mortgage. Having a reliable partner like AB Capital throughout this journey can make each of them easy and hassle-free. Why Work with AB Capital? Securing a mortgage in Dubai is more than just filling out paperwork. It involves understanding fluctuating interest rates, eligibility requirements, and legal procedures. AB Capital offers the expertise you need to make informed decisions and secure favorable mortgage terms. Book a Free call with AB Capital today by clicking here. Key Benefits of Working with AB Capital: Customized Solutions: AB Capital customizes mortgage options based on individual needs, whether you’re a resident or non-resident. Expert Guidance: AB Capital’s experienced advisors guide you through the entire process, from document collection to final approval. Mortgage Comparison: They offer detailed comparisons of available mortgage options, ensuring you find the best fit. Streamlined Process: Their efficient, client-focused approach reduces delays, ensuring a smooth and stress-free experience. With AB Capital, you’re in capable hands to navigate Dubai’s mortgage landscape confidently and find the best financing solutions for your property investment. Benefits of Getting a Mortgage in Dubai Opting for a mortgage instead of paying outright can be a wise financial

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How to obtain and renew establishment card?

How to Obtain and Renew an Establishment Card in Dubai: A Complete Guide for Businesses

Leave a Comment / Accounting, Blog, Business Banking Solutions, Company Formation, Corporate Services, Tax, UAE Compliance / AB Capital Services

An establishment card, often referred to as a “company establishment card” or “labor establishment card,” is a critical document required for businesses operating in Dubai. This card allows companies to hire foreign employees, sponsor their visas, and comply with the legal framework governing employment in the UAE. Obtaining an establishment card is essential for businesses, whether they are startups, multinational corporations, or small and medium-sized enterprises (SMEs). In this blog, we’ll delve into everything you need to know about an establishment card in Dubai, including its importance, application process, renewal, and how AB Capital can help you streamline the procedure. What is an Establishment Card? The establishment card in its various forms is widely referred to as the Immigration Establishment Card or Labor Establishment Card and which has been created by Dubai’s General Directorate of Residency and Foreigners Affairs (GDRFA). This card is tied to the company’s trade license and allows the business the legal authority to sponsor foreign workers and obtain their residence visas. The establishment card also has important information concerning the company including the company name, license number and the validity of the card. It acts as evidence that the business is legally recognized by the government and can participate in employment activities in Dubai. Why is the Establishment Card Important? The establishment card is one of the key documents that enable companies to hire and sponsor employees legally in Dubai. Here are a few reasons why this card is essential for businesses: Hiring Foreign Workers: Companies in Dubai rely heavily on expatriates to fill various roles. Without an establishment card, businesses cannot legally sponsor foreign employees for residence visas. Visa Processing: The establishment card is required for processing employee visas and securing work permits for foreign workers. It’s used to track the company’s sponsorship of employees. Compliance with Labor Laws: Holding an establishment card ensures that the company is compliant with the UAE’s labor laws, which mandate proper documentation for all employment activities. Business Operations: For businesses that are expanding their workforce, having an updated establishment card is essential for smooth operations. It allows the company to manage employee-related processes efficiently. Eligibility Requirements for an Establishment Card in Dubai To apply for an establishment card in Dubai, businesses must meet the following criteria: Valid Trade License: In this connection, the business must have a trade license which is issued either by the Department of Economic Development (DED) or a free zone. Registered Business: The company should be registered with the GDRFA or any other immigration authorities of the country. No Pending Legal Issues: The company cannot accomplish the process if it has any pending court cases or if there are any fines the firm has not paid. The Establishment Card Application Process The process for obtaining an establishment card is straightforward but requires careful attention to documentation. Here’s a step-by-step guide to applying for an establishment card in Dubai: Prepare Required Documents: You will need several documents to apply for an establishment card, including: A copy of the valid trade license A copy of the company’s Memorandum of Association (MoA) Passport copies of the shareholders A copy of the UAE national sponsor’s Emirates ID (if applicable) A power of attorney (if someone else is handling the application) Submit the Application: The application for an establishment card must be submitted to the General Directorate of Residency and Foreigners Affairs (GDRFA) via its online portal or in person at a GDRFA office. Payment of Fees: A fee is required to process the establishment card application. The cost varies depending on the type of business and the number of employees the company plans to sponsor. Receive the Establishment Card: Once the application is approved, the GDRFA will issue the establishment card. The processing time typically ranges from a few days to a week. Renewal of the Establishment Card An establishment card is valid for one year, and it is required to renew it every year to meet the requirements of the UAE. Inability to renew such a card on the right time comes with penalties, and can limit the employer from hiring employees. Here’s how to renew an establishment card in Dubai: Check Expiry Date: The establishment card must also be renewed from time to time, and therefore it is advisable to keep close track of this lest one is to be charged some fine. Prepare Renewal Documents: The required documents for renewal are generally the same as those needed for the initial application, including the trade license and identification documents. Submit Renewal Application: The renewal application can be submitted online via the GDRFA portal. If any information has changed (e.g., company name or license amendments), you will need to update these details during the renewal process. Payment of Renewal Fees: There is a renewal fee, which must be paid to complete the process. The fee amount will depend on the business structure and the number of employees under sponsorship. Common Challenges and How to Avoid Them Some of the difficulties associated with applying or renewing the establishment card include, wrong documentation, expired licenses, and unpaid fines. To avoid these issues: Ensure All Documents Are Up to Date: Ensure that the application you submit has up to date trade license, MoA and any other document that is required. Clear Any Outstanding Fines: Any fines or penalties associated with the company must be cleared before the establishment card can be issued or renewed. Work with Professional Consultants: A reliable business consultancy like AB Capital Services can help ensure the smooth processing of your establishment card by handling documentation, application submissions, and follow-ups on your behalf. How AB Capital Services Can Help The elementary process of applying for a new establishment card or renewal of a previously issued one can cause confusion to the business owners due to the various legal formalities involved in functioning a business in Dubai. AB Capital Services offers a comprehensive range of formation services, including assistance with establishment card applications and renewals. By working with

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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 information 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 information 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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Legal Compliance Dubai Business Formation Step-by-Step Guide

Dubai Business Formation Legal Compliance: Step-by-Step Guide

2 Comments / Blog, Company Formation, Tax, UAE Compliance / AB Capital Services

Starting a business in Dubai offers vast opportunities, but navigating the legal framework can be challenging. To ensure success, it’s essential to understand the intricacies of Dubai’s legal requirements, such as choosing between mainland and free zone jurisdictions, securing the appropriate business license, and ensuring visa and immigration compliance. With the guidance of AB Capital Services, entrepreneurs can simplify the process of Dubai formation while maintaining full legal compliance. AB Capital provides expert assistance in trade name registration, drafting the Memorandum of Association (MOA), and fulfilling office space and corporate banking requirements. Whether you are a start-up or an established enterprise, partnering with AB Capital guarantees a smooth and compliant formation experience in Dubai’s thriving market.

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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 registration 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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One Million AED Turnover and Beyond: A Guide to Corporate Tax in the UAE

Leave a Comment / Tax / AB Capital Services

Whether Individuals With 1 Million AED Turnover Should Pay Corporate Tax in UAE? The taxation structure in the United Arab Emirates (UAE) has gained a lot of attention in recent times. There are various speculations regarding whether individuals and business activities registered in the UAE with an annual turnover exceeding 1 million AED are liable to pay corporate income tax. Let’s explore more about this topic in this blog. Speculations Around 1 million AED Threshold There has been ongoing speculation regarding whether individuals and businesses in the UAE could face corporate tax obligations if their annual turnover exceeds 1 million AED. Recently, the UAE Ministry of Finance provided clarity on this issue by announcing a new Cabinet decision. As per Cabinet Decision No. (49) of 2023, business owners in the country will be subject to corporate tax only if their combined turnover in a calendar year exceeds Dh1 million (around $272,294). The aim of the decision is to clarify how the corporate tax regime will apply to UAE residents and non-residents. Importantly, the Ministry has confirmed that personal income from sources like employment, investments, and real estate will not be taxed. So corporate tax liability will arise solely based on business or licensed commercial activity income earned by a taxpayer. For instance, if a sole proprietor generates over 1 million AED in annual revenues from their combined retail business registered in the mainland UAE, the profits of that business would now be subject to the 9% corporate tax rate. However, rental incomes or returns from personal investments would fall outside the tax net as per the clarification. Proper segregation of individual and commercial sources of earnings is therefore important. This move provides certainty to small businesses that were uncertain about crossing the speculated 1 million AED thresholds. It maintains the UAE’s growth-focused approach without disincentivizing entrepreneurship and encourages more firms to set up locally. The decision is testimony to the government’s aim of adopting a clear, consistent, and stable regulatory regime that fosters investment. Keeping personal incomes like employment compensation tax-free also protects individual taxpayers. Recently, the UAE issued its federal corporate tax law imposing a 9% rate on taxable annual profits exceeding 375,000 AED. Small businesses with revenues below that were kept tax-exempt. Additionally, in April 2023, the Ministry launched a Small Business Relief program exempting firms with under 3 million AED in annual revenue from tax liabilities for an initial period until the end of 2026. This provides headroom for SME growth. Keeping these broader context points in mind, the new Cabinet Decision provides much-needed clarity. It establishes that crossing an annual turnover mark alone does not automatically trigger corporate tax exposure for individuals in their personal capacity. Tax responsibilities will emerge only from income streams covered under the tax law, like profits generated via business operations. Maintaining robust books of accounts segregating commercial and personal activities is thus important. Overall, individuals operating registered businesses in the UAE can breathe easy knowing that exceeding 1 million AED in revenues will not by itself land them in a tax liability trap. Proper strategic compliance continues to be advised, though, to pre-empt uncertainties. Consultants specializing in the UAE market can help entities and entrepreneurs incorporate, file necessary registrations, and handle reporting requirements upon commencing operations. The technology solutions offered by them simplify regulatory adherence remotely. In conclusion, through this new Decision, the UAE Ministry of Finance has provided the necessary clarification. As long as commercial revenues are appropriately ring-fenced, individual business owners will not have to worry about corporate taxation due to high personal turnovers alone. The nation’s pro-business ecosystem is thereby reinforced further. Proper entity segregation and knowing the distinction between corporate and personal tax obligations is key. Overall, the UAE’s stable business-conducive regime is expected to continue with calibrated fiscal reforms if needed. AB CAPITAL SERVICES for your assistance Consultants like AB CAPITAL can help businesses in corporate entities, file necessary registrations, and handle VAT and corporate tax documentation requirements. Our specialists track policy updates, advising clients on implications. Technology-enabled services allow remote regulatory compliance and reporting. The experienced tax consultants at AB CAPITAL can assist you in getting your tax liabilities sorted and staying complied to all the tax laws prevailing in UAE. AB CAPITAL can help you navigate your taxable income and maintain all the required documents that may be mandatory. To know more about our personalized services, feel free to contact us now.

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Partnerships and Taxes in the UAE: A Comprehensive Overview

2 Comments / Tax / AB Capital Services

How UAE Corporate Tax Regime Applies to Partnerships Are you a UAE business owner who recently formed a partnership? Are you curious about how the new corporate tax laws apply to your partnership venture? The UAE embraced a corporate tax regime in June 2023, reshaping the financial landscape for businesses operating within its borders. While this development has far-reaching implications, it particularly affects partnerships established in the country. This blog explores the intricate interplay between UAE corporate tax law and partnerships, shedding light on how different types of partnerships are taxed and addressing common questions partnership firms might have. Types of Partnership Under the UAE corporate tax regime, partnerships are considered to be legal entities and thus liable to register for corporate tax. This indicates that all taxable income generated by the partnership, such as profits from sales or ROIs, is subject to taxation. However, different types of partnerships may be subject to varying levels of taxation depending on their corporate structure. As per the UAE corporate tax, partnerships are broadly categorized into two forms, which include: Unincorporated Partnerships: Unincorporated Partnerships refer to a contractual relationship between two or more persons. These partnerships are treated as ‘transparent’ for UAE CT purposes, i.e., they are not subject to corporate tax because they have no legal identity. Instead, each partner is subject to paying taxes on their share of the income generated through the partnership. Incorporated Partnership: An incorporated partnership is one that’s officially registered as a legal entity with the FTA. This includes limited liability partnerships, partnerships with limited shares, and other similar arrangements where none of the partners are fully responsible for the partnership’s debts or other partners’ deeds. This type of partnership is subject to CT in the same manner as a corporate entity. Foreign Partnerships: A foreign partnership will generally be considered an Unincorporated Partnership under UAE CT Law, subject to meeting certain conditions – Are Partnerships Taxed Under the UAE CT Regime? In the UAE, a partnership is taxed under the CT law; however, the tax rate may vary depending on the type of partnership. While incorporated partnerships are taxed at a normal rate, unincorporated partnerships are not subject to CT in the UAE. Furthermore, all partnerships are required to register with FTA to file their taxes annually. This means that even if an unincorporated partnership is exempt from corporate income tax, it must still file its taxes with the help of a qualified tax consultant. Tax Treatment of Unincorporated Partnerships According to UAE CT Law, partners who do business as an unincorporated partnership are recognized as taxable individuals. The taxable Income of these partners is based on their income shares, taking into account: To calculate the corporate tax paid by individual partners, the assets, liabilities, revenue, and expenses of the unincorporated partnership must be divided among the partners based on their ownership stakes. If the exact ownership share isn’t clear, it should be divided in the proportion decided by the FTA. For instance, let’s say there’s a partnership with two partners, X and Y, and they made a profit of Dh100,000 during a tax year. According to their agreement, X is entitled to 60% of the profit, and Y would receive 40%. After adjusting the expenses and interests relevant to the partnership, X will be taxed on Dh60,000, and Y will be taxed on Dh40,000. In Summary In conclusion, it is important to ensure that all partnership ventures operating in the UAE register for CT with the relevant tax authority and file their taxes correctly. To ensure compliance with UAE CT regulations, it is wise to seek expert guidance from reputable tax consultants, such as CDA. These tax experts will implement streamlined tax solutions and advice businesses on relevant taxes that need to be paid based on business model or structure. This will help you meet the FTA’s regulations and standards, safeguarding you from hefty fines. How can AB CAPITAL assist you in tax compliance? AB CAPITAL SERVICES, with its best team of tax experts, is well equipped with all the dimensions of corporate tax in UAE. Get your firm in UAE with premium tax consultancy services and stay complied with all the regulations under the tax regime. Our team not only provides you with mere consultation but will also enable you to implement strategic tax control processes to maintain a perfect tax structure within your business. To know more about our services, feel free to contact us.

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Who Qualifies for Corporate Tax Exemptions in the UAE?

1 Comment / Tax / AB Capital Services

Exempt Entities Under Corporate Tax in UAE The UAE Corporate Tax Law grants exemptions to certain individuals and entities. These exemptions are vested in public interest and policy considerations which create an equitable and balanced tax framework. This article explains various categories of exempt entities and the conditions to determine their tax exemption. Therefore, it is advisable for Taxable Persons to seek the expert services of AB CAPITAL SERVICES in UAE to effectively determine taxability in compliance with the statutory Law. Exemption of Government Entities: The first category of exempt entities encompasses government entities at both the federal and local levels. This includes all government bodies, ministries, departments, and public agencies that are integral parts of the respective government structures. Government entities encompass ministries, federal authorities, municipalities, and local government agencies. The rationale behind exempting government entities lies in the fact that their activities are conducted as part of their official duties and responsibilities within the government. Consequently, these entities are automatically eligible for exemption, obviating the need for additional paperwork or applications. Entities Controlled by Government: Entities controlled by the government are distinct legal entities with separate juridical personalities from the government. While they may engage in activities similar to those of the overseeing government entity, they do not inherently enjoy automatic corporate tax exemption. To qualify for tax exemption, government-controlled entities must secure explicit inclusion in a Cabinet Decision, as per Article 1 of the UAE Corporate Tax Law. Additionally, these entities must fulfil specific requisites, including complete ownership by one or more government entities and the allocation of their earnings to the government’s treasury. The composition of their board of directors also holds significance in determining their classification as government-controlled entities. Entities Engaged in Natural Resources Business (Extractive and Non-Extractive): While these entities are exempt from corporate tax, it’s important to note that the treatment of Emirate-level taxation may differ. The UAE Constitution designates natural resources in each Emirate as public property, and those involved in the extraction and exploitation of these resources may be liable for taxes at the Emirate level. To promote the development of the resource sector, the Corporate Tax Law provides exemptions for individuals engaged in both extractive and non-extractive aspects of the natural resources value chain. The provision pertaining to extractive businesses covers activities such as quartering, dredging, exploring, extracting, removing, or producing natural resources, such as oil and gas . Clause 1d of the CTL encompasses non-extractive natural resource businesses, specifically including midstream and downstream subsectors. This encompasses activities related to the processing, transportation, storage, marketing, distribution, and selling of natural resource products, such as oil and gas. It is important to highlight that renewable energy sources, such as solar and wind energy, as well as agricultural activities involving plants and animals, do not qualify for the tax exemption provided to natural resource businesses. Qualifying Public Benefit Entities: Another category of exempt entities under the Corporate Tax Law includes Qualifying Public Benefit Entities. These entities are recognized and eligible for tax exemption based on specific criteria delineated in the law. These entities are not government-controlled but are established for public benefit purposes, such as charitable organizations, non-governmental organizations (NGOs), and certain non-profit organizations. To qualify for tax exemption under Clause 1e, these entities must meet specific criteria and conditions, which may vary depending on their nature and objectives. Generally, they must engage in activities that provide genuine public benefit and refrain from distributing profits to private individuals. Additionally, they may need to undergo a formation process or obtain a certificate of public benefit status from the relevant authorities. Private Social Security and Pension Funds: The exemption provided by the Corporate Tax Law extends to private social security funds, which play a pivotal role in supporting individuals post-retirement. These funds are designed to finance end-of-service benefits and enjoy tax exemptions akin to private pension funds. To qualify for tax exemption, the fund must consist of assets specifically allocated by law or contract for end-of-service benefits. By encouraging the establishment of private social security funds, the new law aims to provide a safety net for employees and ensure financial stability during retirement, thereby promoting comprehensive social security coverage for the workforce. Tax Obligations for Exempt Entities: While exempt entities are not subject to corporate tax on their qualifying income, they may still be liable for other taxes, such as Value Added Tax (VAT) and withholding tax. Furthermore, certain activities conducted by exempt entities may fall outside the scope of their exemption and could be subject to corporate tax. The responsibility rests upon exempt entities to remain vigilant about their tax obligations, staying abreast of any changes in tax laws or regulations that could affect their status. Non-compliance with regulatory tax requirements could result in punitive measures and other legal consequences. Seek the expert services AB CAPITAL SERVICES in UAE Corporate tax exemption in the UAE extends to diverse entities and individuals based on a specific criterion. Moreover, other individuals or entities may apply for Exempt Person status contingent on their circumstances and eligibility. A comprehensive understanding of these exemptions is imperative for taxpayers and businesses to ensure compliance and make informed decisions amid the evolving economic landscape. Thus, it is advisable for Taxable Persons to seek the expert services of trusted Tax Consultants in UAE to effectively determine taxability in compliance with the statutory Law. Therefore, contact us today and we shall be glad to assist you.

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5 Best freezone in UAE for Company Formation

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Best Free Zones in the UAE Beginning your exploration of the top free zones in the UAE is the ideal initial step for you.The UAE has solidified its position as a prime destination for entrepreneurs seeking to establishbusinesses. Its appealing tax framework, numerous incentives, incubator programs, and more make ita favourable location for investors.Commencing your business venture in a free zone is the perfect starting point. Free zones representthe ideal jurisdictions to kickstart your business and guarantee that your entrepreneurial journey is ona well-directed course. Jebel Ali Free Zone Authority (JAFZA) JAFZA, a part of Dubai Ports (DP) World, is recognized as the flagship free zone within the DP WorldUAE region’s integrated business hub. Established in 1985, JAFZA stands as one of the UAE’s earliestfree zones. Its strategic location in close proximity to the world’s 7th largest container port, Jebel AliSea Port, positions it as the optimal choice for import and export activities. Over the years, JAFZA has set a benchmark for other free zones to emulate, thanks to its distinctivepositioning and progressive operational procedures. The jurisdiction has obtained ISO certification,enabling businesses to diversify their operational models. JAFZA issues a variety of licenses, including those for trading, services, industry, and even ecommerce. Due to its popularity and consistent growth, JAFZA stands out as an ideal free zone formultinational corporations (MNCs). Dubai Multi Commodities Centre (DMCC) DMCC is recognized as one of the most prestigious free zones in the UAE and holds the title of theworld’s number 1 free zone. DMCC has played a significant role in the development of trade andcommerce in Dubai, making it an attractive industry to enter and establish a business in the UAE.DMCC is open to nearly every business activity and offers a wide range of office solutions. A single license issued by DMCC can cover up to 6 business activities within the same group. DMCC’slicense isn’t limited to industrial, service, or general trade; it’s also one of the few free zones thatpermit crypto commodities trading Additionally, DMCC allows entrepreneurs to obtain a dual license, enabling businesses to expand theiroperations to the mainland or onshore. To qualify for a dual license, entrepreneurs must obtain botha DMCC license and a mainland license. International Free Zone Authority (IFZA) The International Free Zone Authority (IFZA) is among the highly sought-after free zones in the UAE.Despite its relatively recent establishment, IFZA garnered rapid attention for its status as one ofDubai’s most economically friendly free zones for company formation. Strategically situated, IFZA offers an exceptionally cost-effective formation process, rendering it one of themost promising free zones for business expansion and opportunities. IFZA also provides a diverserange of licenses catering to the needs of entrepreneurs. These licenses encompass consulting,service, e-commerce, commercial, and trading licenses. A particularly attractive feature of establishing a company in IFZA is that there is no obligatoryrequirement for a physical office space to initiate a business. Fujairah Creative City Free Zone Fujairah Creative City Free Zone (CCFFZ) stands out as one of the fastest-growing media free zones inthe MENA region, offering a wide range of flexible options for business entities. What sets this free zone apart is its convenience. Not only is it highly cost-effective, but it also boastsa streamlined formation process that requires minimal effort and documentation. Creative City in Fujairahaccommodates a diverse spectrum of business activities, with a primary focus on media, events,consulting, education, marketing, and more. A notable feature of this free zone is the option to establish a virtual office, allowing entrepreneursthe freedom to work remotely. Investors and staff can form a company without the obligation ofobtaining a visa, though cost-effective visa solutions are available for those who require them. FujairahCreative City distinguishes itself by allowing entrepreneurs to obtain up to 20 visas under one tradelicense. Sharjah Media City Free Zone (Shams) Launched in 2017, Shams Free Zone in Sharjah has quickly gained recognition as one of the UAE’sfastest-growing free zones. It offers a straightforward and cost-effective formation process, making it anattractive choice for branch companies seeking business expansion. Shams provides the flexibility to choose between LLC company formation and branch formation, withminimal upfront and renewal costs. What makes Shams unique is the option to register without theneed for attested documents. It caters to various business activities, including service, industrial,freelance, trading, and holding licenses Despite its name, Sharjah Media City extends beyond media-related activities, offering opportunitiesacross diverse sectors. Sharjah Publishing City Free Zone (SPCFZ) Sharjah Publishing City is a relatively new yet promising free zone that offers abundant opportunities.It is the world’s first Printing and Publishing free zone and caters to various business needs, providingworld-class infrastructure and a business-friendly environment. While the core activities revolve around publishing and printing, SPCFZ permits additional activitiesrelated to trading, consulting, e-commerce, and IT-related businesses. One of its key advantages is theability for entrepreneurs to conduct up to five activities under one license without incurring extra fees Entrepreneurs establishing a company in SPCFZ have the opportunity to obtain a dual license, and thefree zone offers a range of packages for UAE residents. Three company structures are allowed: FreeZone Establishment (FZE), Free Zone Company (FZC), and branch company. Ras Al Khaimah Economic Zone (RAKEZ) Ras Al Khaimah Economic Zone (RAKEZ) is a popular choice for formation due to its strategiclocation near a seaport and in close proximity to Ras Al Khaimah (RAK) airport. While RAKEZ accommodates a wide variety of business types, it is particularly well-suited formanufacturing activities. It distinguishes itself by offering customizable warehouses and plots ofindustrial land for development, a feature not common in most free zones in the UAE. As one of the largest free zones in the emirates, RAKEZ permits a broad range of activities, spanningfrom commercial and media to e-commerce and educational endeavours. Key Highlights of Free Zone Company Formationin the UAE The Free Zone Company structure in the UAE is consistently the top choice for foreign investors,offering numerous benefits such as: Top 5 most affordable free zones in the UAE: Sharjah Research Technology and Innovation Park (SRTIP) SRTIP is in line with the UAE’s

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Company Formation in Dubai Freezone

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The UAE Ministry of Finance released a judicial determination for the accounting method that is to be followed and the Generally Accepted Accounting Principles (GAAP) that are to be followed for the purpose of corporate tax UAE as per No. 114 of 2023. Thus, this article explains accounting standards that businesses are required to follow in compliance with the statutory legislation. Corporate Tax Consultants in UAE are committed to assisting Taxable Persons to implement these accounting standards and methods; therefore it is advisable to seek their expert services. What is a Free Zone? Dubai free zones are distinct geographical areas separate from the Dubai mainland. They are notonly distinguished by their jurisdiction but also operate under specific regulations unique to eachzone. Establishing a company in a Dubai free zone is advantageous for conducting business outside of thecountry. While it may offer a cost-effective option, it comes with various constraints regardingwhere, when, and how business activities are conducted and regulated. Difference between FZE and FZCO: When registering a company in Dubai free zones, it’s essential to differentiate between a Free ZoneEstablishment (FZE) and a Free Zone Company (FZCO). A Free Zone Establishment typically has a single shareholder, whereas a Free Zone Companyfunctions similarly to a limited liability company, requiring two or more shareholders. Although bothshare similar operational procedures, the primary distinction lies in the share capital requirements. Advantages of company formation in Dubai Free Zone Opting for company formation in a Dubai free zone offers several advantages: Disadvantages of company formation in Dubai Free Zone However, there are some limitations and disadvantages to consider: Choose precisely while registering a company in Dubai Free zones: Selecting the right free zone for your business is crucial. Dubai’s free zones offer a variety of optionsin terms of jurisdiction, legal structure, and establishment processes. Therefore, it’s important togather all the necessary information specific to your business needs before making a decision.It’s worth noting that there are industry-specific free zones in Dubai, allowing you to choose theregion that best suits your commercial requirements. Step by step process of company registration in Dubai Free Zone: Setting up a business in a free zone is a relatively straightforward process, characterized by minimalpaperwork and a short duration. Here are the key steps for free zone company formation in Dubai: 1. Choose a business activity (or activities) The initial step to kickstart your Dubai free zone business involves making a decision regarding thespecific business activities you intend to engage in. This choice will have a direct impact on whereyou can register your company. The type of license you ultimately apply for will also be contingenton the specific activities you wish to undertake. These activities can encompass professionalservices, e-commerce, commercial operations, trading, and more. 2. Select a suitable free zone. After you have settled on the nature of the business you intend to launch, the subsequent stepinvolves identifying the most suitable free zone for your venture. The United Arab Emirates offersnumerous exceptional free zones, making it necessary to carefully review the options and select thelocation where you envision your business thriving. 3. Choose a unique company name Selecting a business name is a challenging task, regardless of the global location you choose for yourenterprise. This process involves not only choosing the company’s name but also defining the natureof its operations. 4. Submit your license application To obtain your trading license in the UAE, you must complete the application form and furnish avariety of required documents and paperwork. Once the relevant authorities have granted approvalfor your company’s activities, you can obtain essential legal documents such as the Memorandum ofAssociation, Certificate of Incorporation, Trade license, Share certificates, Visas, Tenancy agreement,Labour cards, and more. 5. Apply for visas as needed Apply for visas as neededAt this juncture, you can initiate the visa application process. This involves applying for your UAEresidence visa, as well as those for your employees 6. Open a corporate bank account Once you’ve successfully processed all the essential documentation for registering your company inDubai from India, the next step is to establish a business bank account for your company. It’s vital toselect a bank that aligns with your company’s requirements and offers perks and substantialadvantages that contribute to cost optimization for your business. Types of Trade Licenses in UAE In the UAE, there are different types of licenses for businesses: Mainland license in Dubai A mainland license in Dubai, or in any other location worldwide, serves as an essential documentthat legitimizes your company as a recognized legal entity. In Dubai, a mainland trade license isgranted to businesses to monitor their operations and ensure that business activities are conductedin a secure and accountable manner. The process of registering a company in Dubai encompassesmultiple stages, with obtaining a trade license standing out as the most pivotal step Step by step process of company registration in Dubai Mainland Step 1 – Choose Your Business ActivityFirst, select the business activity you intend to pursue in Dubai or any other Emirate. It’s importantto assess the feasibility of the chosen business activity within the region.Step 2 – Opt for a Local UAE Sponsor or PartnerOne of the most critical aspects of obtaining a business license in Dubai is finding a suitable local UAEsponsor or partner. This choice is pivotal, as selecting the right sponsor is essential for smoothbusiness operations and regulatory compliance.Step 3 – Determine Your Legal Form or StructureEvery formation in Dubai or anywhere in the UAE must adhere to a specific legal form orstructure prescribed by the Dubai Economic Department.Step 4 – Reserve Your Trade NameChoose a distinctive name for your company, which will serve as its unique identity. You must alsoreserve the trade name following the procedures set by the Dubai Economic Department.Step 5 – Apply for Initial ApprovalOnce you have your initial paperwork in order, apply for Initial Approval from the Dubai EconomicDepartment. This approval allows you to initiate your business in Dubai and concurrently apply forother required certifications as stipulated by the DET.Step 6 – Obtain External ApprovalsCertain businesses may necessitate

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Corporate Tax Accounting Standards and Methods as Per the Corporate Tax Law

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Free business bank account opening services in dubai

Claiming Your VAT Refunds Made Simple: A Step-by-Step EmaraTax Walkthrough

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As a small business operating in the UAE, we are sure you have come across many situations that affect you on a daily basis. One of the most common complexities that many businesses face is when the VAT charged on goods purchased (input tax) is more than the VAT on the amount generated through sales of products or services (output tax). This definitely looks like a one-off situation, but if you actually look more closely at the numbers, it affects nearly 90% of businesses in the UAE. Most small businesses have no clue how to recover the tax difference amount that arises in such situations, which is why we have put together a guide on how this works practically when you log in to the EmaraTax platform How to Use EmaraTax to Claim Direct VAT Refunds So, let us deep dive into the steps for reclaiming VAT from the EmaraTax platform: Always remember, you can access the refund request from the VAT 311 tile within the VAT tax module. With the introduction of the Emaratax platform, the authorities have made it convenient for businesses to file returns and apply for refunds, if any. Small businesses in UAE may still not be aware of the procedures they have to follow, but these issues can be solved by approaching expert tax consultants like AB CAPITAL, who can meet your tax needs at any time. Choose the Best Tax Firm in the UAE! Now that you are well-equipped with the knowledge to claim your direct VAT refunds from EmaraTax, feel free to proceed confidently and start the process. However, if you do encounter any challenges or need expert guidance throughout the refund process, AB CAPITAL SERVICES is always here to help. Our team of professionals can provide you with comprehensive support and ensure a smooth and successful VAT refund experience and further tax assistance. Do not hesitate to reach out to us for assistance at any stage of the process or for tax consultation.

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Guidelines you should know about new businesses in UAE

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The United Arab Emirates has been a longstanding business hub for budding entrepreneurs and established businessmen all across the globe, and the recent guidelines further enhanced its appeal. Moreover, these new regulations have also introduced additional requirements for businessmen and companies who set their businesses in UAE. The UAE has actively encouraged innovation and entrepreneurship. Initiatives such as the Dubai Future Accelerators and Dubai Startup Hub support startups, attract talent and facilitate collaboration between entrepreneurs, investors and government entities. Businesses can be set up through mainland companies, free zones and offshore entities each with particular advantages. Comprehending the legal structure, understanding the market, adhering to regulations Freezones have played a vital role in driving business growth in UAE offering significant advantages to the industry which includes offering 100% foreign ownership, tax exemptions, and streamlines processes, making them an attractive choice for entrepreneurs and investors. These zones offer state-of-the-art infrastructure, access to global markets and proximity to major transportation hubs, facilitating seamless operations and international trade. The introduction of e-platforms and digital services has simplified administrative tasks, making it easier for businesses to operate. Now, you need to be aware of the business laws passed which places an important role in smooth and fair conduct of a business. You are obliged to several laws that you need to be responsible for which are: This is just an overview of the regulations one need to adhere to, to start a business enterprise in UAE. Contact us at AB Capital to set up your business or get advices on everything business related now!

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Non-residents liable to pay taxes on income from real estate: New Tax Regime

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Owning a home, an apartment, or a piece of commercial property is not subject to a yearly tax in UAE. Additionally, VAT (Value-Added Tax) is not levied on commercial property transfers. Owning property in the UAE, however, will result in additional costs in the form of fees and charges. It\’s important to note that some of them must be paid by both homeowners and renters. A failure to comply with governmental requirements (even if it\’s an honest mistake) can result in significant fines, so it\’s important to stay up to date on UAE tax legislation. Cost of purchasing land and property in the UAE The following costs need to be taken into account when purchasing real estate in the UAE: In Dubai and Abu Dhabi, the Land Department (LD) one-time fee is equal to 4% of the property\’s worth. For land, administrative costs are AED 430 ($117), while for homes and apartments, they are AED 580 ($158). For properties valued at less than 500,000 AED, registration fees are AED 2000 ($544) + 5% VAT, while for properties valued at more than 500,000 AED, registration fees are AED 4000 ($1088) + 5% VAT. If you obtain a mortgage, these amounts will vary. In Dubai, mortgage registration costs are 0.25 percent of the total bank loan amount; in Abu Dhabi, they are 0.1 percent. When everything is done, you can ask your local LD for a Certificate of Owned Property. In Dubai, this will cost you AED 260 ($70), while in Abu Dhabi, it will cost you AED 1000 ($272). It takes this process about 3 business days. You should be ready to pay extra costs when purchasing real estate in the UAE and executing a Sale and Purchase Agreement, such as: Fees charged by the real estate agent equal to 2% of the final sales price of the property plus 5% VAT. The cost to issue a NOC (No Objection Certificate) is AED 1000 ($272). The certificate attests that the owner of the building has no objections to you purchasing the property. When purchasing real estate that is already in use, this sum is applicable. If the property you\’re purchasing is still being built, the project\’s real estate developer will charge you AED 5000 ($1361) for the NOC. UAE property maintenance fees There are mandatory property maintenance and upkeep fees that cover things like garbage collection, janitor work, lawn maintenance, ongoing and future renovations, as well as taking care of public areas like playgrounds, gyms, and swimming pools, despite the fact that there are no federal or municipal taxes on real estate in the UAE. Owners of homes incorporated into residential communities, as well as those who own apartments and other residential spaces, must pay an annual service fee that ranges from AED 3 to 30 ($0.82 to $8.2) per square foot of real estate. All property measures and associated costs in the UAE are computed in square feet (1 square foot equals 0.093 square meters), thus all UAE residents should get used to this. According to a clarification from the UAE Ministry of Finance, income from real estate and other immoveable property would be subject to a nine percent (9%) corporate tax for foreign businesses and other non-resident juridical persons. These annual service fees are calculated precisely by UAE real estate developers (i.e., building owners) using factors such property size, number of floors, equipment on-site, project infrastructure, and so on. Rental taxes in the UAE In the UAE, municipal governments impose taxes on rental properties that are the responsibility of the tenants. The rates of these taxes, which are based on annual rental costs, vary from one emirate to the next. All tenants in Dubai pay 5% of the annual rent, expats in Abu Dhabi pay 3%, and renters in Sharjah pay as little as 2%. In all emirates, tenants of commercial property pay taxes equal to 10% of their yearly rent. The monthly instalments for these UAE rental property taxes are added to utilities bills. Properties in the UAE, both residential and commercial Every residential property is connected to land ownership under UAE law. A tent, caravan, or trailer are not regarded as residential properties. Before any development on a property can begin, \”intended use\” is another consideration. Exclusion determines what qualifies as commercial property, therefore everything that doesn\’t fit into one of the following categories: The same UAE real estate taxes and fees that are levied on residential structures also apply to mixed-use environments (buildings that include residential spaces together with commercial, retail, or entertainment sectors). VAT on UAE Real Estate When it comes to paying VAT on real estate in the United Arab Emirates, everything initially seems straightforward. Residential property transactions are exempt from VAT, but commercial property transfers are subject to a 5% levy. For residential real estate, there are two different VAT statutes in the UAE: \”exempt from VAT\” and \”zero-rated.\” Formation as a UAE VAT payer is required in the following circumstances: You presently fall under ZERO RATED TAX regime If you belong to one of these categories. This implies that until the government changes your rate (which they may do if they so choose to), you are not required to pay UAE VAT on residential real estate. VAT on residential property is EXEMPTED for everyone else in the UAE. VAT refunds on real estate in the UAE The UAE government promotes real estate development; people and businesses can buy a plot of land, build residential property on it, and then ask for a VAT refund on the costs of construction materials and other related costs. A Building Completion Certificate must be obtained from the local development authority and submitted to the FTA no later than six months after it has been issued in order to accomplish that. In addition, the VAT rate is 0% for the first three years following the completion of an apartment or house\’s construction on initial sales and rentals. Developers in the UAE are able to do this

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A complete guide to the new UAE corporate tax for individuals and businesses

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The captivating sector of corporate tax in UAE where businesses bloom amidst a dynamic and diverse economic structure is a debatable topic to discuss on. In this Blog, you will get to learn more facts about the new corporate tax in UAE that was announced by the Ministry of Finance (MoF). Here are a few commonly asked Questions one needs to know before starting a new business in UAE: Was there any tax prior to the announcement of the new corporate tax? The UAE first introduced VAT in 2018 at 5% but then in January 2022, they announced a corporate tax that would come in effect this year. What is the rate of corporate tax in UAE? The corporate tax rate is at 9% of the net profit made by the business. However, if the annual profits of the business are up to AED 375,000 then up to that limit no corporate tax would be payable. Are all businesses in UAE subjected to corporate tax? No, not all business in UAE are subjected to corporate tax. The applicability of corporate tax depends on various factors including legal structure, business activities and annual turnover of the company. Why did they introduce the corporate tax in UAE? The corporate tax in UAE was introduced in order to amplify UAE’s position in the global market helping it become a hub for investments and start-ups with affordable registration fees and no corporate tax for new businesses. Is there any tax for small business and start-ups in UAE? No, there aren’t any tax rates for small businesses as of now. In fact, they have introduced Small Business Tax Relief in UAE for businesses with annual revenue of below AED 3 Million. Why did they announce Small Business tax relief for start-ups? The government announced this small business tax relief in order to provide support to small businesses and start-ups so that more people can operate in it. How to register for the Small Business tax relief? Businesses subject to corporate tax are required to register and obtain a tax registration number. The registration application must be submitted to the Federal Tax Authority. Will there be a personal tax in UAE now? No, there is no personal tax on people’s income in UAE. All the salaries, dividends and other income that a person earns in his personal status will not be subject to corporate tax. Navigating corporate tax applicability can be hard and requires a comprehensive understanding of the local tax laws in UAE. It is always advisable to seek professional guidance from a business or tax consultants who specialises in this sector. To seek guidance and help, AB Capital Services is here to deliver all your unique requirements accurately.

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UAE’s new Corporate Tax Relief for Small Business!

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Everything you need to know about UAE’s new Corporate Tax Relief for Small Business! Small industries are the backbone of a thriving economy and UAE is mindful of it and its importance. By implementing relief measures for various small businesses, the UAE government aims to attract entrepreneurs, foreign investment and have a growing economy. Understanding these reliefs and measures given to the small business owners, it helps to navigate them the confidence and stage for their industry and its success. What is the relief that these businesses will get? In April 2023, the ‘Small Business Relief’ was announced by the Ministry of Finance by introducing tax relief for those who fit under a certain norm. Small business owners in UAE with revenue under AED3 million can apply for tax relief which came in effect from June 1, 2023 and will extend upto end of 2026. Once the revenue exceeds the minimum revenue, the business will no longer cater to the Small business tax relief policy and need to give 9% tax then onwards. Why was this decision made? How will it benefit the small business? This decision was strategically made to diversify UAE’s income sources which were only limited to oils, allowing the country to maintain its status and economy. The new tax regime reaffirms UAE’s commitment to meeting international standards for tax transparency and prevent harmful tax practices. What are the conditions in which one can claim this relief? The small business relief only applied to a ‘resident person’. The Ministry of Finance also clarified that if FTA (Federal Tax Authority) establishes that taxable persons have artificially separated their business or business activities and have a revenue higher than the one stated, this would come under anti abuse rules of the Corporate Tax Law and may be set aside. Conclusion The UAE maintains a competitive environment for local and foreign investors with tax exemptions and reduced rates. It remains a viable business destination, even with the new tax, offering a favourable climate, especially for small businesses which can leverage the business-friendly ecosystem while adhering to the new rules. We at AB CAPITAL can help you with all your queries about everything you might want to know about business and taxes. Our consultants aim to assist you in all aspects you want to know more about. You can directly get in touch with us through our quick form you can fill or even visit our office regarding any help or advice.

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Decoding Freelancing and Corporate Tax in the UAE: What You Need to Know in 2025!

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Will a Freelance Professional be Subject to UAE Corporate Tax? As per the regulations of corporate tax in the UAE, any taxable income exceeding AED 375,000 will be subject to Corporate Tax. This tax system will also be applicable to freelancers and independent contractors in the UAE who work for themselves if their income goes beyond the AED 375,000 limit. Before heading deeper into how UAE corporate tax applies to freelancers, let’s take a look at the diverse aspects of corporate tax and implications. UAE Corporate tax Being the pro-business hub, the nation provides businesses with unparalleled access to cutting-edge infrastructure, technological advancements, 100% foreign ownership, and a tax-free culture. These advantages draw hundreds of professionals to the UAE each year in search of intriguing career prospects. This is why the Ministry of Finance of the UAE published Federal Decree-Law No. 47 of 2022, which establishes the legal foundation for corporate tax on commercial profits in the UAE. The UAE has taken this step to follow international norms and comply with Pillar 2 of the OECD’s Global Minimum Tax Plan. According to the law, starting with their first fiscal year beginning on or after June 1, 2023, taxable individuals and businesses must pay a 9% corporation tax. It is critical to assess how the UAE corporate tax will apply to both individuals and businesses in the future given that it is the first time the country has chosen to impose it. Do Freelancers Have to Pay Corporate Tax? The Corporate Tax regime will also apply to freelancers in UAE and other independent contractors who work for themselves if their income exceeds the AED 375,000 threshold. The law dictates that these independent contractors must have a license or permit. Many eventualities that apply the corporate tax for freelancers are as follows: • Those who have the new freelance permit, which is provided under the new labour law for self-sponsored expatriates, are not required to pay corporate tax on their profits. • If freelancers with business licenses are sponsored in a free zone and engage in any activity for other businesses, the sponsor will be charged corporate tax. • Freelancers who work for a business will not be subject to income tax on the money they make from salaries; rather, the business that issues the visa will be subject to income tax on its net profit. Corporate Tax for Freelancers: Exemptions The following situations are where the corporate income tax law in the UAE exempts individual or freelancer profits made in their capacity: • Interests, profits, and other earnings made by a person residing in the UAE from bank deposits or savings plans. • Income derived from real estate investments by individuals in their capacity. • Dividends, capital gains, and other income received by individuals from their ownership of shares or other securities How can AB CAPITAL assist the Freelancers in UAE? Business owners have always regarded the UAE as a tax-free oasis. By introducing the new corporate tax regime, the UAE intends to follow worldwide best practices in developing a leading global hub for businesses while advancing the nation’s strategic objectives for further growth. Whether it’s for the deployment of countermeasures, training personnel, or formulating a compliance policy, our professionals can handle your company’s accounting and auditing demands and assist you in becoming UAE corporate tax ready. If you are a freelancer having any confusion regarding the corporate tax on your income, get in touch with AB CAPITAL’s professionals for your guidance. Also Read: The UAE Awaits: Are You Ready to Invest in the UAE in 2025? How Can a Foreign Company Open a Branch in Dubai, UAE in 2025? Step-by-Step Process of Company Registration in Dubai Free Zone in 2025 How To Open A Company In Meydan Free Zone In 2025? Important Tasks for Your First Financial Year Under the UAE Corporate Tax Law

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Tax applicability on crypto exchanges :What You Should Know:

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Crypto exchanges have revolutionized the way we trade digital assets. But what about the tax implications? In this blog post, we\’ll explore the key points to understand about taxes on crypto exchanges. 1. Crypto Tax Basics: Cryptocurrency taxation is an important aspect to consider when engaging in crypto transactions. Understanding the difference between investing and trading is crucial. Additionally, accurate record-keeping is essential for tax purposes. 2. Taxable Events on Exchanges: Various activities on crypto exchanges can trigger taxable events. When buying and selling cryptocurrencies, capital gains tax may apply. Trading activities can lead to short-term or long-term capital gains. Converting one cryptocurrency to another also has tax implications. Furthermore, mining and staking cryptocurrencies can have tax considerations. 3. Reporting Requirements: It\’s important to understand your tax reporting obligations as a user of crypto exchanges. Forms such as 1099-K and 1099-B may be applicable. Keeping track of cost basis and accurately calculating gains or losses is crucial. Familiarize yourself with the common tax forms and schedules related to cryptocurrency transactions. 4. Tax Strategies: Implementing tax-efficient trading techniques can help minimize your tax liabilities. Tax-loss harvesting is a strategy that involves offsetting gains with losses. Additionally, understanding like-kind exchanges (if applicable) can provide opportunities to defer tax obligations. It\’s highly recommended to seek advice from a tax professional who specializes in cryptocurrency taxation. 5. Regulatory Compliance: Staying compliant with tax regulations is essential. Stay updated with the IRS guidelines and enforcement efforts related to cryptocurrencies. If you have foreign crypto accounts, make sure to understand the reporting requirements. It\’s crucial to stay informed about evolving tax laws and regulations. Conclusion: Understanding the tax implications of crypto exchanges is vital for compliance and making informed financial decisions. By familiarizing yourself with the basics of crypto taxation, recognizing taxable events, meeting reporting requirements, implementing tax strategies, and staying compliant with regulations, you can navigate the world of crypto taxes with confidence. Remember, seeking advice from a qualified tax professional is crucial for personalized guidance tailored to your specific tax situation. Disclaimer: This blog post provides general information and should not be considered legal or financial advice. Consult a tax professional for personalized guidance. For more such tax related Information contact us.

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