Services

VAT

The Ministry of Finance has announced that the Value Added Tax (VAT) will be implemented, with effect from 1st January 2018. The Companies, need to prepare themselves for the introductory stage of implementation of the VAT. So, here at Al Dariba Consultants, we are all set to guide our clients and are well prepared to take the essential and progressive step towards the Compliances as per the new law and we shall help you make the necessary changes to your business as per the new finance and taxation guidelines issued by the Ministry.

We will help you understand about the Value Added Tax (VAT) as an indirect tax and will be imposed on every goods and services sold or brought for commercial purpose. As most of the countries practice this type of consumption tax, it is being charged at each step of supply chain of goods and services. Each consumer of those goods and services has to bear the tax and the businesses or goods and services provider will have to charge the tax from the consumer and deposit the same to the government.

We will make sure to make you understand about VAT and its different aspects of VAT. Sales taxes are only imposed on transactions involving goods and only on the final sale to the consumer whereas, VAT will be charged on goods and services both and is implemented throughout the supply chain of sale and purchase of the goods and services.

Being an integral part of a group of countries which are further very closely connected through “The Economic Agreement between the GCC States & GCC Customs Union”, UAE is working together with other GCC countries in designing and implementing new public policies as a collaborative approach towards the betterment of the area. Also to generate a new source of income to the country to continue the high quality public services into the future is one of the main reasons for the implementation of the VAT.

As the VAT is more likely to cover the maximum goods and services, until the next information, we will help you to ease down the process of implementation and payment of the VAT to the government. Also, with effect from the new information of setting a minimum slab of turnover for the business, few of the small businesses can be exempted from this VAT implementation. And if your business falls under the slab of VAT, as per the proper record maintained, we can help you reclaim the difference between the VAT paid to the supplier and the same charged from the consumer.

Our team of experts will help you meet the touchstone to register your business for VAT, even 3 months before the actual launch of the VAT implementations. It is also very necessary to file the return for the Value Added Tax or to submit the VAT, every 3 months on the regular basis, to the government. For that we will help you to understand about what all records need to be maintained and how to track your inflow and the outflow of the funds.

Whereas the implementation of the VAT is a sign of a maturity in economy, on the other hand VAT is o going to increase the living cost most likely by 5%. It is also analyzed that it will also affect tourism industry as the tourists also have to bear the additional cost to buy any goods or services but it will strengthen the country’s economy by expanding the revenues apart from the oil reserves and helps to raise funds for much more increased public services.

Bookkeeping & Acounting

Our accounting and bookkeeping services consist of the following primary elements:

Accounting and Bookkeeping Services – Primary Elements:

  • Setting up of Chart of Accounts
  • Entry of business transactions
  • Bank statements reconciliation
  • Allocation of payments & receipts to match invoices
  • Preparation of year-end audit schedules and reports
  • Budget set up & budget status reports
  • Extraction of monthly Management Reports
  • Extraction of monthly income statement and balance sheet
  • Extraction of monthly expenses report
  • Monthly review of your accounts by a professionally qualified Partner
  • Monthly presentation of accounts to help you understand better about your business
  • Gratuity provision calculation as per UAE labor law
  • Sorting and matching receipts & payments with credit card or bank statements
  • Presentation of Weekly Bank Reconciliation Statement
  • General Ledger Reconciliations
  • Set Up Payroll System
  • Reconciliation of input and output Taxes
  • Reviewing and processing payroll
  • Accounts payables reconciliations
  • Accounts receivables reconciliations
  • Aged Receivables Management (debtors)
  • Aged Payables Management (creditors)
  • Comprehensive Financial Reports (operational & financial ratios and many others)
  • Preparation of year end working papers, reconciling balance sheet items to ensure maximum efficiency.
  • Reconciliation of any end of year amendments required by external auditors
  • Monthly Management Report highlighting the critical areas of improvement including areas to improve business efficiency
  • Co-ordination with Accountant (in case of a partly outsourced accounting service)
  • Co-ordination with Auditor
  • Accounts Trouble-Shooting
  • Data file backup and storage
  • Fantastic customer support

Company Formation

Before establishment or the expansion of your business, our experts will help you understand the advantages for the formation of a Company in UAE or why UAE is the best option for you:

  • Import duty is only 5% with exemptions
  • 100% repartition of profits and capital
  • Globalized business community and regional Hub for major MNCs
  • No Income tax, Corporate tax and Withholding tax
  • Modern Infrastructure facilities
  • Mixed population and work force from all over the world (150+ countries)
  • Stable currency (USD is pegged with local currency -1USD=3.66 Dirhams)
  • Presence of biggest airports and seaports in the world
  • Cosmopolitan culture
  • Transparency
  • Presence of E-Governance system
  • State-of-the-art telecommunications
  • Sophisticated financial and services sector
  • Top international exhibition and conference venue.

Team Al Dariba Consultants, will lead the way for you in the process to form any of the below mentioned;

- Branch Offices / Foreign Branch / RepresentativeOffices

The Law of Commercial Companies regulates the formation of Branch offices and Representative offices of foreign companies in UAE. It also guarantees that the offices are 100% foreign owned.

If you wish to establish any of your Branch office or Representative office in Dubai, our experts will support you to:

Apply for a license from the Ministry of Economy and Commerce by submitting an agency agreement with UAE national or 100% UAE based company. The application will be further forwarded to the Ministry of Economic Development to get it approved by the Dubai Government, forward the application specifying the activity that the office or branch will be authorized to undertake in the UAE, to the Federal Foreign Companies Committee for approval;

Once this has been done, the Ministry of Economy and Commerce will issue the required Ministerial license specifying the activity to be practiced by the foreign company;

The branch or office should be entered in the Economic Department’s Commercial Register and the required license will be issued;

The branch or office should also be entered in the Foreign Companies Register of the Ministry of Economy and Commerce;

Finally the branch or office should be registered with the Dubai Chamber of Commerce and Industry.

The following documents will be required for foreign company branch:

  • Trade license copy of Parent company.
  • Chamber of Commerce Certificate. (Arabic Translated, Attested by UAE Embassy and Min. of Foreign affairs)
  • Memorandum of association for Parent company (Notarized, Arabic Translated, Attested by UAE Embassy and Foreign affairs)
  • Board resolution of Parent company authorizing manager(Power of Attorney) (Notarized, Arabic Translated, Attested by UAE Embassy and Foreign affairs)
  • Board resolution of Parent company to setup branch company in Dubai(Notarized, Arabic Translated, Attested by UAE Embassy and Foreign affairs)
  • Manager’s passport copy.
  • If manager is residence visa holder in UAE then NOC is required from his employer.
  • Company profile and business plan.

For Branch and REP office of Foreign Company, the Fee for Ministry of Economy approval required:

Limited Liability Company

A limited liability company can be formed by a minimum of two and a maximum of 50 persons whose liability is limited to their shares in the company’s capital. Such companies are recognized as offering a suitable structure for organizations interested in developing a long term relationship in the local market.In UAE, The minimum capital requirement law was abolished on 10th August 2009. While foreign equity in the company may not exceed 49%, profit and loss distribution can be prescribed. Responsibility for the management of a limited liability company can be vested in the foreign or national partners or a third party.

The following steps are required in establishing a limited liability company in Dubai.

Select a commercial name for the company and have it approved by the Licensing Department of the Economic Department;Draw up the company’s Memorandum of Association and have it notarized by a Notary Public in the Dubai Courts;Seek approval from the Department of Economic Development and apply for entry in the Commercial Register; Once approval is granted, the company will be entered in the Commercial Register and have its Memorandum of Association published in the Ministry of Economy and Commerce’s Bulletin. The license will then be issued by the Department of Economic Development.

PROFESSIONAL COMPANY LICENSE

A limited liability company can be formed by a minimum of two and a maximum of 50 persons whose liability is limited to their shares in the company’s capital. Such companies are recognized as offering a suitable structure for organizations interested in developing a long term relationship in the local market.In UAE, The minimum capital requirement law was abolished on 10th August 2009. While foreign equity in the company may not exceed 49%, profit and loss distribution can be prescribed. Responsibility for the management of a limited liability company can be vested in the foreign or national partners or a third party.

The following steps are required in establishing a limited liability company in Dubai.

Select a commercial name for the company and have it approved by the Licensing Department of the Economic Department;Draw up the company’s Memorandum of Association and have it notarized by a Notary Public in the DubaiCourts;Seek approval from the Department of Economic Development and apply for entry in theCommercial Register;Once approval is granted, the company will be entered in the Commercial Register and have its Memorandum of Association published in the Ministry of Economy and Commerce’s Bulletin. The license will then be issued by the Department of Economic Development.

OFFSHORE COMPANY FORMATION

An offshore company is a company which does not conduct substantial business in its country of incorporation and is formulated in a law of no tax jurisdiction for the purposes of legally minimizing any type of tax payment and improving one’s wealth management. Primarily one would open an offshore company to gain confidentiality over their financial affairs and grow wealth without intrusion.

Offshore companies can eliminate many types of tax payments such as:

  • Capital Gains
  • Profits on Business Earnings
  • Property Sales
  • V.A.T (Value added Tax)

Incorporation of an offshore company can be used for various purposes. One of the most common is the use of an offshore company as a holding company to hold interests in other companies in various jurisdictions, to hold trademarks, copyrights and other intellectual property rights, as well as to serve as the holding company for licensing of franchises. The income from taxable jurisdiction flowing to the offshore company (holding company) is not taxable.

Benefits and Advantages for individuals and corporations to utilize offshore companies include:

  • No Minimum Capital Requirement
  • 100% Tax/Duty Exemption
  • 100% Foreign Ownership Permitted
  • Dubai Offshore Bank Account
  • The Offshore Company can own Real Estate Properties in UAE Maintain financial privacy
  • No Accounting or Reporting Requirements
  • No >Auditing
  • Reduce tax
  • Enhance assets
  • Free remittance of profits and capital
  • Banking privacy
  • Access to foreign insurance and reinsurance
  • Territorial taxation on foreign income
  • Foreign investment inducements
  • Higher yields and returns
  • No inheritance, succession or gift taxes
  • Protection from inflation
  • Reduce legal liabilities
  • Reduce operating expenses
  • Freedom from currency exchange control
  • No international trade tariffs
  • No annual tax return requirements
  • Data on owners and directors not publicly available and remain confidential
  • World class banking and investment management services available
  • Easy procedures for transfer of shares.
  • Offshore Companies can own/lease real estate properties in the UAE as well as anywhere outside the UAE.
  • Offshore Companies may own yachts registered in the UAE.

FREE ZONE COMPANY FORMATION

A Free Zone Authority offers business licenses allow 100% foreign ownership and have no taxes. Each Free Zone is designed around one or more business industry categories and only offers licenses for a FZE OR FZC within those categories. UAE free zones were established to support economic reform, to act as the main solution for the growing unemployment .Free Zone, offers customized support services to its investors. Therefore the basic requirements for all business activity in Free zones are the following licenses:

  • Commercial (All kinds of trading activities)
  • Industrial (manufacturing & Industrial activity)
  • Professional (Services & Consultancy)
  • A company set up in a Free Zone offers benefits to owners:
    • 100% ownership (no sponsor required)
    • Tax exemption
    • Owning properties is allowed(Purpose built office or warehouse facilities)
    • Fair renewal fees
    • Confidentiality of your business is maintained
    • Allowed to open bank account in Dubai
    • No restriction for doing more than one activity
    • Can wind up at your discretion
  • There are more than 30 Free Zones operating in UAE.UAE-Dubai Free Zones
    • Dubai Airport Freezone (DAFZA)
    • Jebel Ali Freezone (JAFZA)
    • Internet City in Dubai (DIC)
    • Media City in Dubai (DMC)
    • Dubai Knowledge Village (DKV)
    • Studio City in Dubai
    • Dubai International Academic City (DIAC)
    • Dubai Outsource Zone
    • Intl Media Production in Dubai (IMPZ)
    • Dubai Energy Park
    • Dubai Multi Commodities Centre (DMCC/JLT)
    • Dubai Silicon Oasis (DSO)
    • Dubai Healthcare City
    • Dubai Maritime City
    • Gold & Diamond Park
    • Dubai Cars & Automotive
    • Humanitarian City
    • Dubai Textile City
    • Dubai Logistics City
    • Dubai Techno Park
    • Dubai Dragon Mart FZ
    • Dubai Flower Centre
    • Dubai Auto Zone
    • Dubai Int. Financial Centre (DIFC)
    • Dubai World Central (DWC)
    • Dubai Biotechnology
    • UAE-Sharjah Free Zones
    • Sharjah Airport FreeZone
    • Hamriyah Free Zone
    • UAE-RAK Free Zones
    • RAK Investment Authority
    • RAK Free Trade Zone
    • RAK Media City
    • UAE-Ajman Free Zones
    • Ajman Free Zone
    • UAE-Abu Dhabi Free Zones
    • Abu Dhabi Air Port Fz
    • Abu Dhabi Zones Corp
    • UAE-Fujairah Free Zones
    • Fujairah Free Zone
    • Creative City Fujairah
    • UAE-UAQ Free Zones
    • UAQ Free Zone