Corporate Services

Dubai’s Economic Ascent: A Beacon for Global Investment

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The expert team at Affiniax Partners, ready to assist businesses in Dubai.

Dubai’s economy is a testament to visionary leadership and strategic diversification. In the first quarter of 2024, the emirate’s GDP soared to an impressive AED 115 billion, marking a robust growth of 3.2% compared to the same period in the previous year.

This economic surge results from concerted efforts across various sectors, with transportation and storage and financial and insurance activities, leading the charge with identical growth rates of 5.6%.

The city’s economic narrative is one of relentless ambition and unwavering progress. Dubai’s comprehensive development plans, including the Dubai Economic Agenda and Dubai Social Agenda 2033, are pivotal in enhancing the quality of life and consolidating Dubai’s stature as a global economic capital.

The emirate’s success is not just in numbers but also in creating a dynamic business ecosystem that continues attracting foreign investments.

Affiniax Partners: Your Gateway to Business in Dubai

For entrepreneurs and businesses looking to capitalize on Dubai’s flourishing economy, Affiniax Partners stands as a beacon of expertise. Whether you aim to establish a presence on the mainland or navigate the advantages of Free Zones, Affiniax Partners offers comprehensive services to ease your journey.

From obtaining the necessary trade licenses to advising on company structures, our team of seasoned professionals ensures a seamless setup process. With a deep understanding of the local business landscape, we are adept at guiding companies of all sizes through the intricacies of establishing and growing their business in the UAE. Our services extend beyond Company Formation to include Visa assistance, including applications for Golden visas, Tax Residency Certificates, and Intellectual Property Registration, ensuring that your business is established and primed for success.

In a city that’s synonymous with innovation and opportunity, Affiniax Partners is your trusted ally, helping you unlock the potential of Dubai’s dynamic market. With our support, your business can thrive in an environment that’s conducive to growth and excellence.

Contact Us

Please contact us for any queries on Company formation, Tax Advisory, Accounting and Auditing needs, HR Recruitment Services at mail@affiniax.com or call +971 58-5620168.

New E-Invoicing Requirements in the Kingdom of Saudi Arabia

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E-Invoicing requirements in Saudi Arabia

With Saudi Arabia mandating e-invoicing to increase transparency and compliance with tax regulations, ZATCA (Zakat, Tax, and Customers Authority), formerly known as GAZT, has issued new regulations for controls, requirements, and technical specifications.

The Generation stage commences on 4th December 2021, and businesses are required to generate, issue, and store electronic invoices and notes and should notify the Authority if any technical error arises. The second phase, Integration commences 1st June 2022, by which time taxpayers must mandatorily integrate their systems with ZATCA’s (the Authority) systems by using an Application Programming Interface (API).

In accordance with ZATCA’s regulations, all the transactions that earlier required tax invoices to be issued must comply with and follow e-invoicing requirements:

  • Supplies of goods and services that are either subject to the standard VAT rate or zero rates;
  • Export of goods and services from the Kingdom;
  • Intra-GCC supplies in accordance with the Agreement, VAT law, and it’s Implementing Regulation;
  • Nominal supplies by the taxpayer in accordance with the Agreement, VAT, and Implementing Regulation; and
  • Any payments related to the supply of goods or services and received by the taxpayer before the actual supply.

The transactions for which notes are issued as per Article 40 and 54 of the VAT Implementing Regulation shall also have to comply with the latest regulation in the following instances:

  • Cancellation or suspension of the supplies after their occurrence, either wholly or partially
  • In case of essential change or amendment in the supply, which leads to the change of the VAT due; and
  • Amendment of the supply value, which is pre-agreed upon between the supplier and consumer, in case of goods or services refund.

Transactions that are not required to follow the regulations are:

  • Transactions with Exempted Supplies;
  • Any payments related to exempted supplies received by a taxpayer;
  • Supplies subject to VAT pursuant to Reverse Charge Mechanism; and
  • Import of goods to the Kingdom.

What changes should businesses observe from 4th December 2021?

During the transition phase, businesses will be required to adjust their accounting systems and internal processes to meet the e-invoicing requirements through an ‘e-invoice generation solution’. The ‘e-invoice generation solution’ will be considered as compliant after prior verification of its conformity to all specifications and requirements by the Authority, third party, or self-certified by the person subject to e-invoicing regulations.

Business entities and banks must ensure that their accounting system has enhanced capabilities both for VAT compliance and e-invoicing solution:

  • The compliant solution should be able to connect to an internet connection and integrate with external systems by using an Application Programming Interface (API). Taxpayers will be required to work with their IT team to ensure that technical requirements are met.
  • The e-invoices and associated notes must contain mandated fields as specified by ZATCA, which will help with integration.
  • Business entities should be able to generate e-invoices in XML format or PDF/A-3 format (with embedded XML) and share the same with customers.
  • The Authority shall create a Cryptographic stamp (an electronic stamp created via cryptographic algorithms to ensure the authenticity of origin and integrity of content) after receiving the e-invoices and electronic notes pursuant to the integration procedures starting from the date determined by the authority.
  • Businesses need to prepare themselves to share tax invoices or their associated notes that have been generated electronically in XML format or PDF/A-3 format (with embedded XML) in the same format of such invoice or note with customers.
  • Businesses should be able to export generated invoices and associated notes into an external archival system.

What should the compliant e-invoice generation solution be able to do?

  • The compliant solution must be able to generate invoices and their associated notes in the XML format or PDF/A-3 format (with embedded XML) as per the requirements of electronic invoice formats.
  • The compliant solution must be tamper-resistant and include a mechanism that prevents tampering and should reveal any tampering attempts that might occur by the user or any third party in accordance with the specifications and requirements specified by the Authority. The Authority has the power to verify the e-invoicing generation solution to the specifications and requirements.
  • The compliant solution must be able to protect the generated electronic invoices and electronic notes from any alteration or undetected deletion and contain some functionalities which enable the person subject to e-invoicing regulation to save electronic invoices and electronic notes and archive them in XML format without an Internet connection.
  • The compliant e-invoice generation solution must be able to generate a Universally Unique Identifier (UUID) in addition to the invoice sequential number, which identifies and distinguish each VAT Tax Invoice, Simplified Tax Invoice, and their associated notes in accordance with the specifications, requirements, and timelines. This shall be for each electronic invoice or electronic ote as per the requirements and timelines. UUID is a 128-bit number generated by an algorithm chosen to make it unlikely that the same identifier will be generated by anyone else.
  • The compliant solution, which is used for generating Simplified Tax Invoices and their associated notes, must be able to generate a Cryptographic Stamp for each electronic invoice or electronic note. Such cryptographic stamps must have an identifier as per the requirements and timelines.
  • The compliant solution must be able to generate a hash (an enciphered text obtained by applying a one-way algorithm upon data which prevents the return to the original data or amending or tampering with it) for each generated electronic invoice or electronic note within the sequence of the electronic invoices and electronic notes. The hash of the invoice is then embedded in the next invoice in the sequence. This hash is used to protect the sequence of Invoices from tampering, whether by deletion or replacement.
  • The compliant solution must be able to generate a QR code which is a type of matrix barcode, with a pattern of black and white squares that is machine readable by a QR code scanner or the camera of smart devices in order to enable basic validation of electronic invoices and electronic notes.
  • The compliant solution must have a tamper-resistant invoice counter that cannot be reset. The counter must increment for each generated invoice or associated note, and the compliant solution must record the value of this counter in each invoice or associated note. This counter is used to ensure that invoices cannot be deleted from the end of the invoice sequence without detection.

Will there be any fines or penalties for non-compliance?

Yes, all provisions related to tax invoices in the VAT Law are applicable to electronic invoices, including fines and penalties.

Further regulations relating to the generation of e-invoices shall be made available by ZATCA in the coming months.

Affiniax has collaborated with Pagero, a digital solution provider, to ensure all our clients are compliant with the forthcoming E-invoice mandate.

Not sure if these requirements apply to you? Read our blog on applicability, as well as other commonly asked questions, to learn more.

If you would like to know more about the E-Invoicing Requirements, please feel free to approach our team.

New E-Invoicing Regulations in the Kingdom of Saudi Arabia

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Mandatory E-Invoice in Saudi Arabia

New regulations have recently been issued by Saudi Arabia to mandate electronic invoicing (e-invoice) effective from December 4, 2021, for all registered entities and businesses. The Zakat, Tax and Customers Authority (ZATCA), formerly known as the General Authority of Zakat and Tax (GAZT), has published a framework about the implementation which focuses on increasing transparency and compliance with tax obligations, which, in turn, leads to high consumer protection.

Who does it apply to?

The new invoicing regulations are applicable to all taxable persons (excluding non-resident taxable persons) who are a resident in KSA. Any customers or third parties that issue a tax invoice on behalf of a taxable person who is a resident of the Kingdom shall also be required to comply with this regulation. Taxpayers who are not residents of KSA are excluded from these regulations.

What is the KSA e-invoicing regulation all about?

Taxpayers under the KSA e-invoicing regulation are expected to issue invoices and amendments (such as debit and credit notes) electronically for all their purchase and sale transactions (including exports which may be zero rated).

The taxpayer residents and business entities will have to comply with a standard electronic format and be prepared to issue, receive and store e-invoices in a particular electronic format with predefined data fields.

But firstly what is an e-invoice and electronic notes, and what will be the content?

An e-invoice is simply a tax invoice that is issued in an electronic format. Electronic notes comprise of debit and credit notes which shall also be issued in an electronic format. A handwritten or scanned invoice will henceforth not be considered an electronic invoice, even if they are sent digitally. Only e-invoices generated in the specified format are acceptable.

The terms, requirements and conditions applicable to tax invoices as per Article (53) of VAT Implementing Regulation will be determined at a later stage by ZATCA for a smooth transition.

Can I issue scanned copies or PDF documents for invoices?

No, scanned and PDF invoices will not be considered as an e-invoice. Invoices that are handwritten, Microsoft Word invoices and any unstructured invoice on a webpage or email will not be accepted.

Should a taxable person generate the e-invoices for sales outside the Kingdom (exports)?

Yes, it is mandatory for all taxable persons to issue and store the e-invoices starting from December 4, 2021, for all taxable supplies, whether it is subject to standard rate or zero rate for resident and non-resident consumers.

When will this be implemented?

ZATCA will be implementing e-invoicing in two stages. ZATCA issued their first e-invoicing regulations on December 4, 2020, by giving a period of 12 calendar months from the date of publication for businesses to start generating invoices.

Hence, the first phase of Generation shall commence from December 4, 2021, and it will be mandatory for businesses and entities (excluding non-resident taxable persons) to generate, issue and store electronic invoices and electronic notes, related to their processing and record keeping as well as any other third party issuing tax invoices on behalf of a taxable supplier.

From June 1, 2022, all taxable persons must integrate their internal systems with ZATCA’s system through an API (Application Programing Interface). The timelines for integration with the system and phases are yet to be announced.

Affiniax Partners has collaborated with Pagero, a digital solution provider to ensure all our clients are compliant with the forthcoming E-invoice mandate.

In case you would like to learn more about the E-Invoicing requirements mandated under the regulation, read our blog on the subject.

If you would like to know more about the E-Invoicing Regulations, please feel free to get in touch with our team.

How to Use your ISO 9001 Accreditation to Grow Your Business

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Why you should get your business ISO 9001-accredited

Whatever the reasons for seeking compliance and certification, many organisations fail to capitalise on the potential benefits that ISO 9001 accreditation can bring. These organisational benefits can include process improvements, reputation benefits, and cost savings, as well as ensuring consistency of product and delivering customer satisfaction.

MAKING THE MOST OF ISO 9001

The sooner an organisation realises that an ISO 9001 accreditation is actually a marketable tool, the sooner that organisation will be able to expand its business using that very accreditation as a foundation. The organisation should know that new markets are open to operate in that previously would have been closed, for example:

  • Ability to tender for local and national government contracts: These opportunities will increase due to most entry levels stipulating ISO 9001 accreditation. However, these contracts will not come looking for the organisation- your appropriate departments will need to investigate, register, and prepare the team for the bidding and presentation process ahead.
  • Ability to trade with larger businesses: Many blue-chip organisations simply refuse to trade with organisations that do not have ISO 9001 as a starting point. The organisation will now be qualified to seek associations and partnerships with larger operations showing that it cannot only provide added value to their supply chains but can use ISO 9001 accreditation as proof of its credibility and commitment to customer satisfaction.

USING ISO 9001 AS LEVERAGE IN BUSINESS

Presenting your organisation as an ambitious and capable partner can be challenging; but, using ISO 9001 principles, it is a task you can embrace. Whether on a face-to-face level or presenting at trade shows, or even recording video marketing presentations – which is a modern, but effective marketing tool – your organisation can promote the use of ISO 9001 quality management principles to advertise its qualities:

  • Customer Satisfaction – Your organisation can correctly claim that the desire to be accredited against ISO 9001 comes from the intrinsic company ethos, which is to provide unrivalled quality of product and service to the end user.
  • Customer Focus – One of the advantages your organisation can claim over larger conglomerates is better customer focus and service. A more timely and effective reaction to the customer and any problems can be seen as an excellent selling point, and utilising examples of its customer feedback and corrective action processes, your organisation can demonstrate an edge in this area.
  • Emphasize Your Operational Control – If you are in a service or manufacturing environment, almost nothing is more impressive than displaying operational control and consistency of product. Again, this is something that many larger organisations find more difficult to control, and whether providing non-conformity rates, displaying process documents, or offering facility visits, this is another area in which your organisation can claim advantage over the larger corporation.
  • Continual Improvement – The ability to improve and demonstrate to a potential customer is a valuable bargaining tool. Evidence of continual improvement can demonstrate a willingness to listen, take action, and improve – again, a quality that is often slower to be demonstrated within larger organisations where things often happen more slowly.

ADVERTISING ISO 9001 TO THE BENEFIT OF THE ORGANISATION

Your organisation should understand the rules of advertising its ISO 9001 accreditation by ensuring that the correct logo is used on your website and stationery, if desired. Look to join local trade organisations, which will allow you to network with new potential customers and partners. Consider throwing an open house to celebrate your ISO 9001 accreditation, where you can gain some new contacts, attract some media attention, and say “thanks” to everyone who has worked hard to gain accreditation (and who will need to continue to do so to maintain compliance and improve standards in the future). Use your ISO 9001 accreditation to leverage your organisation’s ability to move in higher circles, and use the elements suggested above to drive home the advantages a small organisation can have over a larger business. Use 9001 as the leverage to take you from being a smaller organisation to a bigger organisation. Nobody else will do it for you.

WHY IS ISO 9001 A GOOD IDEA FOR YOUR ORGANISATION?

The benefits of ISO 9001 are not overstated; companies large and small have gained great benefits from using this standard by discovering cost and efficiency savings. Here are the explanations of six main benefits and why they are important:

Improvement of your Credibility and Image – Because ISO 9001 is an internationally recognised standard, it has become the basis for creating a quality management system around the world, replacing many previously published requirements. When a company is looking for a supplier, it is often a requirement to have a QMS based on ISO 9001 in order to be considered. This is particularly the case if you are competing for public sector jobs in many countries. Attaining ISO 9001 certification can be a powerful marketing tool.

Improvement of Customer Satisfaction – One of the quality management principles that are the foundation of the ISO 9001 requirements is to improve customer satisfaction by planning for and striving to meet customer requirements. By improving your customer satisfaction, you will retain more repeat customers since happy and satisfied customers are the key to keeping customer loyalty. And such customers bring in additional revenues.

Better Process Integration – By looking at the overall process interactions through the process approach of ISO 9001, you will be able to more easily find improvements in efficiency and cost savings. This is done through eliminating the waste that can occur when processes are maintained without a view of the inefficiencies that can arise during process hand-off. The better process flow can also be used to drive efficiency towards fewer errors and resulting reworks, which can improve cost savings.

Improve your evidence for decision making – A second quality management principle of ISO 9001 is the need to use evidence-based decision making. By driving your decisions based on the evidence, rather than on “gut feelings,” you can be more focused on applying resources to the areas that will improve efficiency and increase cost savings with less trial and error to find the right decision. In addition, by monitoring the process you are improving, you will be able to see how much improvement has happened based on the data.

Create a continual improvement culture – Continual improvement is a third quality management principle of ISO 9001. By adopting this culture to improve your processes and organisational output, you will find efficiency and cost savings, including the use of systematic processes when problems occur in order to reduce the impact of the problem and increase the speed of recovery. By making this continual, improving year after year, the company can see continuing benefits from this.

Engagement of employees – Employees who are involved in the improvements of the processes they work with are happier and more engaged employees. Who better than the people working on the process to best identify the areas that need improvement, and to help to test and advance these improvements when they are implemented? Engaged employees are more productive and will help the company better improve and save, especially when they understand how the quality of the process depends on them.

If you want to know more about how ISO 9001 can help grow your business contact us on mail@affiniax.com or call on 04 425 6616.

LIQUIDATIONS IN THE UNITED ARAB EMIRATES (PART 1)

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How Liquidations Work in UAE

Introduction

Liquidation can be defined as the winding up of a Company by selling off its assets to convert them into cash to pay off the firms unsecured creditors. The secured creditors take control of the respective pledged assets upon obtaining foreclosure orders. Any remaining amount is distributed among the shareholders in proportion to their shareholdings. It is an event that usually occurs when a company is insolvent, meaning it cannot pay its obligations when they come due.

Types of Liquidations

There are two types of liquidations in the United Arab Emirates.

  • Voluntary Liquidation

In case of voluntary liquidation, the owners or shareholders of the firm decide that to close and wind up the Company as they do not have enough funds to pay off their creditors and other liabilities.

  • Mandatory Liquidation

In case of mandatory liquidation, the liquidation order is put forward by the courts. It is not in the will of an owner or shareholders to liquidate their company. This usually occurs when a company fails to pay creditors multiple times. Because of this, creditors can file a request for the liquidation of a company.

Here the assets of the Company are distributed to the creditors and contributors based on the priority of their claims.

Roles and Duties of a Liquidator

A liquidator must be appointed in order to liquidate a Company in the UAE.

Below are 7 points that describe the role of a Liquidator.

  • The liquidator appointed by a Company in its liquidation stage shall represent the Company in any litigation that may occur.
  • The assets of the Company are sold by the liquidator in order to settle the debts of the Company.
  • Certain debt is considered a priority, and these are settled before other debt. This mainly includes outstanding employees’ salaries.
  • Once all debt has been settled, the remaining funds are distributed among the shareholders or the owner.
  • In case the funds generated from the sale of the Company’s assets are insufficient to pay off the debts, the deficit will be adjusted against the share capital of the shareholders.
  • The Statement of Affairs and Liquidation Report has to be prepared by the liquidator after conducting the necessary procedures.
  • The liquidator would also be responsible to request for the removal of the Company from the Commercial Register.

Documents required for Liquidation of a Company in the UAE

  • Copy of the license
  • Memorandum of Association
  • Shareholder’s Resolution to Liquidate the Company
  • Power of Attorney
  • Passport copies of all shareholders, along with Emirates ID’s
  • Application for deregistration
  • Statement of Affairs and Liquidation Report
  • Letter from Labour and Immigration department that there are no visas.

To learn more about liquidation procedures in the United Arab Emirates, read Liquidations in the United Arab Emirates (Part 2)

For more information, Email us at mail@affiniax.com

LIQUIDATIONS IN THE UNITED ARAB EMIRATES (PART 2)

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Liquidation in UAE (PART 2)

In my previous article, titled, Liquidations in the United Arab Emirates (Part 1), we came across the roles, and duties of a Liquidator, the necessary documents required, and the different types of Liquidations in the UAE.

We now take a look at the Procedures for Liquidation.

Procedures for Liquidation

Mainland Company

In the case of a mainland Company the following steps and documents are required for its liquidation:

  • Shareholders resolution confirming the liquidation of the Company. This would usually be in the form of the minutes of the meeting which is held by the shareholders in which they decide on the liquidation of the Company and appointment of the liquidators for the same.
  • An acceptance letter from the liquidators accepting their appointment.
  • Application for cancellation of the Company from the Department of Economic Development (DED)
  • Receive a liquidation certificate from the Department of Economic Development (DED) once the above steps are completed.
  • Once the liquidation certificate is received from the DED, the Company has to publish a notice of liquidation in two local newspapers.
  • After the notice has been published, there is a notice period of 45 days for the debtors to submit their claims (if any).
  • Once the notice period of 45 days is over, the Company must submit the following documents:
    • A declaration stating that all parties have no objection relating to the liquidation of the Company
    • Approval would be required from other government agencies for the cancellation of the Company’s license.
  • The Company must then cancel its firm card with the Ministry of Human Resources and Emiratisation
  • Cancellation of the foreign partner’s visas which are sponsored by the Company.
  • The last step is to pay the DED fee, and the company will be successfully liquidated.

Free Zone Company

In the case of a free zone Company, the procedure is slightly different and involves the following steps:

  • Every free zone in the UAE has a portal. The Company intending to liquidate must notify the free zone by applying on the member portal.
  • Once they have notified the respective free zone, they need to submit their application for termination of the Company.
  • After submission of the application, they need to publish the notice in a local newspaper.
  • The free zone will file a final Company termination letter, and the Company will be liquidated.
  • A letter is to be obtained from the Labor and Immigration Department that there are no visas.

Bank Accounts, Employee Contracts, Utilities, and Other Services on Liquidation

In all cases, the Company will need to cancel the employees’ visas and their work permits. Dubai portal explains that this requires coordination with both Department of Naturalisation and Residency and the Ministry of Human Resources and Emiratisation.

As per the UAE’s Labor Law, employers are required to give their employees a two-month paid notice period before terminating their contracts. In many cases, employees can keep their residency visas until the company’s trade license runs out. Then, the company needs to cancel utilities and telecommunication services and close all its bank accounts. Collect a NOC from the utilities providing company and bank closure confirmation for processing the closure.

Company liquidation can be a complicated process. However, we can assist you in case you decide to liquidate. Our procedures for preparing the required documents and completing the process shall help you liquidate your Company smoothly.

To learn more about liquidation procedures in the United Arab Emirates, read Liquidations in the United Arab Emirates (Part 1)

For more information, Email us at mail@affiniax.com

Instant License in Dubai

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What is an Instant License?

The Instant License is a trade license available to those intending to carry out commercial or professional business activities and can be obtained within minutes. For an instant license, you do not need to submit following documents to the Dubai Economy (DED):

  • Memorandum of Association
  • Office Tenancy Contract

It is a great opportunity given by the government to invest in Dubai by providing a one year grace period to conduct business.

What are the benefits of an Instant License?

Generally, the process of obtaining a UAE mainland trade license can be quite long, depending on the company activity, document preparation time etc. Additionally, a tenancy contract / Ejari is mandatory for the licence to be issued. With the Instant License, businesses are able to take advantage of the numerous benefits, which include:

  • License Issued in minutes
  • Immediately trade and perform business activities
  • Significantly less paperwork
  • Cost-effective first year of business
  • Opportunity to explore & discover the Dubai market
  • Memorandum of Association not required for the first year
  • Tenancy / Ejari not required for the first year.

Who is Eligible for an Instant License?

Any Company whose activities do not require external approval can apply for an Instant License. Trading / professional companies with specific activities require an external approval and are not eligible for Instant Licenses.

Instant Licenses are available for the following legal structures:

  • Limited Liability Company
  • One Person LLC
  • Sole Proprietorship
  • Civil Company
Note : A Person who requires a CID approval due to sanctions/restrictions in the UAE is not eligible for the Instant License.

What documents and information are required to apply?

Those applying through outsourced service centers will require:

  • Passport copies of all partners – all partners must be present during the official application process
  • Residence visa copy and Emirates ID
  • NOC from current sponsor / employer (if required for foreign shareholder)
  • Local Sponsor passport copy and Emirates ID
  • Individuals applying for a General Trading licence in Dubai will need to apply for DED e-services and obtain a Dubai Smart Pass ID
  • Details of Trade name, activities, Commercial registry, Partners & managers details.

Those applying through E-Services will require:

  • The online process does not require any additional documents
  • In-Person attendance with original ID to create an account on Dubai ID Smart pass (for those who don’t have existing account)
  • Details of the Trade name, activities, Commercial registry, Partners & managers.

What is the cost of an Instant License?

  • Payment Voucher: This includes the application fees, initial approval fees, trade name reservation fees and license issuance. The cost varies dependent on the activities but starts at approximately AED 9,000.
  • Sponsorship Fees: It is mandatory to have a local sponsor (a National Service Agent (NSA) for Civil Business or Sole Establishment or a 51% local partner for LLCs) for any mainland license in the UAE- sponsor fees depend on your individual agreement with said sponsor.

Note:

  • An investor can request for the establishment card to Dubai Immigration, once it is obtained, he or she can then apply for the residence visa.
  • Instant License is ideal for investors who just need a license and visa in the first year, but do not want to open a bank account or start business operations in the first year.

How Affiniax Partners Can Assist?

Affiniax can assist you in obtaining your Instant License in Dubai and can advise the best Method and the right activities for your company formation. To know more about Instant License setup and the full breakdown of all the relevant costs, please get in touch with us at mail@affiniax.com.

DMCC Launches Employee Protection Scheme

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DMCC, Dubai, Employee Visa Dubai, bank guarantee refund

Dubai Multi Commodities Centre (DMCC), in collaboration with Dubai Insurance Company (DIC) have launched a new “Employee Protection Insurance (EPI) Programme” to provide more comprehensive benefits for all DMCC and member company employees. The said programme will offer increased protection for DMCC employees in the event their employers default on salaries, gratuity or repatriation cost.

Effective 19th May, 2020, Employee Insurance Scheme (EPI) programme will replace the bank guarantee requirements for every DMCC member’s employees during the submission of visa and permanent identity card related service request, with a certificate of insurance to be issued upon completion of the application.

To avail this benefit, as per DMCC notes:

  • All visa-related service requests saved as ‘Draft’ on the Member Portal will be cancelled on 19th May, 2020, therefore you will need to initiate a fresh service request
  • All visa-related service requests in progress on the Member Portal will go through the existing Bank Guarantee process
  • DMCC encourages you to renew your due employee visas to avail the benefits below:
    • The AED 3,000 bank guarantee will be refunded upon the renewal service request being approved and closed
    • The EPI for renewed employees will cover the following in case their employer defaults:
      • Unpaid salaries
      • Unpaid air ticket allowance
      • End of service payments.

Dubai South Announces Economic Stimulus Package

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Dubai South Free Zone, DSFZA, Economic Stimulus Package

To lighten the effects of the current situation in the United Arab Emirates (UAE) and the world due to the coronavirus, Dubai South Free Zone announced several economic stimulus incentives. The stimulus package is a part of the UAE Leadership’s vision to stimulate the economy and support different sectors of the business society so that Dubai will remain a sought-after business destination.

Dubai South joined other free zones and government departments in coming out with measures that will help individuals and companies during this challenging time and beyond. The stimulus package includes:

  • Flexible payment plans with easy instalment schemes
  • Waivers of penalties on late renewals and cancellation of contracts and licenses
  • 20% reduction on fees for license renewals [please confirm that this is what is meant by license fees renewals] for individuals and companies operating in Dubai South Free Zone
  • First year license fees for new customers in the aviation, logistics and E-commerce sectors and the Business Parks will be waived
  • Reduction of up to 25% on the renewal fees for Dubai South Business Centre customers renewing their contracts between now and October, 2020
  • Flexibility to settle annual rental fees in up to four instalments
  • Rental fees for individuals and companies looking to establish a new business will have a reduction of up to 25%
  • Opportunity to apply for a lease deferral request of up to six months for customers who operate in the Business Park Free Zone, which will be granted on a case-by-case basis.

The said incentive package complements the measures announced by the Government of Dubai and its ongoing efforts to reduce the cost of doing business in the Emirate and help the companies to maintain their resources and employees.

To know more about the Dubai South Free Zone stimulus package, please feel free to contact us at mail@affiniax.com.

DMCC and DED announce 2 new Services

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Free Zone Companies, NOC, Onshore Activities, DUbai

Introducing New Services from DMCC in Partnership with DED

Last year, Dubai Multi Commodities Centre Authority (DMCC) – the world’s flagship Free Zone and the Department of Economic Development (DED), the entity of the Government of Dubai that regulates the economic activity of all onshore companies, signed a strategic agreement to collaborate on the licensing of companies in Dubai allowing them to operate within the Free Zone and onshore mainland.

In line with the partnership, DMCC has finally introduced the two new services that will further facilitate trade and boost economic activity in the emirate.

The services are as follows:

  • DED NOC to Operate Onshore
    DMCC member companies with specific service licence activities are now permitted to offer their services outside the Free Zone without having to incorporate another Company, provided that they obtain a no-objection certificate from DMCC first. Currently, there are more than 30 eligible service activities that would be permitted to conduct business outside its zone.
    The eligible DMCC companies can apply online for a No-Objection-Certificate (NOC) from DMCC to obtain the permit from DED. This NOC will be required to obtain the Commercial Permit to operate onshore/mainland, from DED.The NOC will be valid for 90 days from the date of issuance.
  • Dual Licence Office Permit
    DMCC member companies who wish to have their DED branch/Subsidiary or a DED Company with Common shareholder operate from the same JLT office address they occupy, can now apply for Dual Licence Office Permit subject to meeting the eligibility criteria.Eligibility criteria are as follows:

    1. Branches of DMCC Companies:
      A DMCC licensed Company occupying an office in DMCC Free Zone and having a branch in DED can apply for this permit in order to share the same unit (office) address with DED Company.
    2. Subsidiaries of DMCC Companies and Companies with Common Individual Shareholders:
      The Company may share the same unit (office) address, provided 25% common ownership is continually maintained.

The validity of the permit is one year, which will help save the cost of leasing another office for the DED licence. Leased/purchased property type must be office as per the title deed of the Unit. Sharing on any other property types such as “workshop, shop/retail, land, flat etc.” is not allowed.

Also, units within Business Centres, co-working spaces and Incubation Centres are not eligible for Dual Licence Office Permit as each Company must be allocated to a dedicated area within the unit with the minimum area size for DMCC Company being 300 sq. ft.

Retail and industrial activities are also not eligible for Dual Licence Office Permit.

To know more about the partnership and services, feel free to get in touch with one of our team members at mail@affiniax.com or call us on +971 4 425 6616.

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+971 58 562 0168

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