- Waiver of late license renewal penalties
- Waiver of office sharing permit fee
- Waiver of all Flexi Desk and DMCC Business Centre Penalties
- Discount on license renewal
- 3 months’ rent holiday for Flexi Desk and DMCC Business Centre tenant’s renewal (this is applicable for those who are due for renewal during the offer period).
Corporate Services
Why set up a business in Hamriyah Free Zone?
Established on November 12. 1995, the Hamriyah Free Zone is home to more than 6,500 businesses from 163 countries. In addition to world-class facilities including offices, warehouses, factories and executive office suites, Hamriyah Free Zone also has over 15 on-site key business services, like banking and auditing firms, currency exchanges, conference rooms, staff accommodation, and more.
Sharjah is the only Emirate to have ports on the coast of both the Arabian Gulf and the Arabian Sea, providing the Free Zone with a huge strategic advantage as it has the capability of servicing three continents- and over 1.5 billion people- due to its unique positioning. Businesses located at the Hamriyah Free Zone can take advantage of the numerous shipping networks that pass through Sharjah, as well as the state-of-the-art technology and range of cargo containers at the Port and the Depot.
Due to its strategic benefits the Hamriyah Free Zone is home to the largest number of Steel fabricators in the UAE, as well as being a hub for oil and gas companies and transportation and logistics companies. There is also an 11 million square feet Food Park specifically planned and developed for the requirements of the food industry.
Its 26 million square metres of prime industrial land make it an ideal location for heavy industries, while its abundance of land and warehouse facilities have made it extremely popular amongst manufacturers of building materials.
Hamriyah Free Zone has built a world-class infrastructure in order to ensure that the businesses set up there have all the tools necessary in order to succeed.In addition to that, the Hamriyah Free Zone Authority (HFZA) has brought a special discount on E-office packages. The first-ever HFZA exclusive discount is commencing from 1st April to 30th June 2020.
PACKAGE 1 Normal Price AED 11,000 Yearly Promotional Price AED 8,800 20% Discount |
Free Zone Establishment (1 Shareholder) |
Hamriyah Business Centre (Virtual) |
Up to 3 activities |
Provision to apply for 1 visa* |
PACKAGE 2 Normal Price AED 17,000 Yearly Promotional Price AED 13,600 20% Discount |
Free Zone Establishment (1 Shareholder) |
10sqm Office. |
Up to 3 activities |
Provision to apply for 4 visas* |
PACKAGE 3 Normal Price AED 20,000 Yearly Promotional Price AED 16,000 20% Discount |
FZE/FZC (1-3 Shareholders) |
10sqm Office. |
Up to 3 activities |
Provision to apply for 4 visas* |
PACKAGE 4 Normal Price AED 25,000 Yearly Promotional Price AED 20,000 20% Discount |
FZE/FZC (1-5 Shareholders) |
10sqm Office. |
Up to 5 activities |
Provision to apply for 6 visas* |
PACKAGE 5 Normal Price AED 35,000 Yearly Promotional Price AED 28,000 20% Discount |
FZE/FZC (1-5 Shareholders) |
10sqm Office |
1 General Trading activity |
Provision to apply for 7 visas* |
All packages include:
1. Office rent for 1 year.
2. License fee for 1 year.
3. Name approval charges.
4. Service charges (office, electricity and maintenance).
*Visa related costs are excluded in package price.
To know more about this exclusive offer, get in touch with one of our team members at mail@affiniax.com or call us on +971 4 425 6616.
NEWLY INTRODUCED, RAK ICC FOUNDATIONS
- Enhanced succession planning and asset protection
- Robust governance structure
- Guardian oversight
- Distinct legal personality that separates liability whilst maintaining control of assets and have perpetual existence after the lifetime of the Founder
- Governance
- Continuity
DMCC – NEW RULES & REGULATIONS TO ENHANCE EASE OF DOING BUSINESS
- Increased flexibility around a company’s Articles of Association;
- Introduction of different share types
- Allowing businesses to tailor the structure of shareholdings
- Introduction of new dormant status
- An increased ability to transfer company incorporation into DMCC.
SHARJAH MEDIA CITY FREE ZONE- AN EMERGING NAME IN THE U.A.E BUSINESS MARKET
- 100% repatriation of capital and profits gain
- 0% corporate and personal income tax
- 100% foreign ownership
- 0% import and export duties (Custom Duties)
- No Deposits required by Shams
- Allocation of up to 6 visas on a shared desk facility
- Ease of selecting multiple activities on same license.
- Presence of Shareholders are not required to incorporate a company
- Easy and inexpensive recruitment of workforce
NEW JAFZA OFFSHORE REGULATIONS
- Residence Visas
- Re-domiciliation of Company
- Conversion of Company
- Directorship
- Variation in Rights of Shares
- Resolution Requirements
- Permitted Activities
Dubai International Financial Centre Introduces New Licensing Categories
- Short Term License: Under this category, it is now possible for retail businesses and other non-financial companies to operate from DIFC at a competitive cost, depending on the duration of license required.
- Restricted License: This license is applicable to firms interested in developing or testing out new, innovative products and services in the DIFC. These initiatives are encouraged by DIFC as this would allow incubators and startups to flourish within the DIFC environment.
- Commercial Permissions License: This license would allow both DIFC and non-DIFC entities such as event companies, promotion companies, retail outlets, seminars and educational services to conduct their business activities within the DIFC for a competitive fee.
- Dual Licensing: This license will allow the firms which are under the license of Department of Economic Development (DED) such as law firms, audit consultancy firms, family businesses, holding companies and corporate service providers to operate in the DIFC with an affiliate
UAE FOREIGN INVESTMENT LAW CHANGE
The UAE Government has now enacted Federal Decree-Law No. 19 of 2018 (“FDI Law”) in furtherance of its objective to allow increased foreign shareholder participation in UAE mainland registered companies beyond the current restriction of 49%. To date, foreign investors wanting to own UAE businesses wholly, or to have a majority stake, have been limited to registering their companies in UAE free zones or limiting their operations to a branch/representative office. Free-zone registered companies, and branch/representative offices have limitations to their trading and investment activities in the UAE. Previously foreign investors have often found structuring business for commercial activities in the UAE challenging.
The FDI Law does not represent a wholesale change to business investment in the UAE and, to avoid doubt, it does not allow 100% foreign ownership across all sectors of the economy. Rather, the FDI Law introduces a framework under which the UAE Government (acting through a newly formed FDI Unit and FDI Committee in addition to the existing licensing departments of the Department of Economic Development) may designate certain sectors of the economy as being available to more than 49% foreign ownership. These are deemed to be “priority” economic sectors and are in furtherance of Federal Decree-Law No. 18 of 2017 (an amendment to the UAE Commercial Companies Law), which gave scope to the UAE Cabinet to authorise foreign investors to have an increased shareholding in companies within certain sectors.
FDI Unit and FDI Committee
The FDI Law provides, in summary, for the establishment of:
- by decision of the Ministry of Economy, an FDI Unit, which shall, amongst various responsibilities, be charged with: (i) proposing FDI policies, priorities and programmes; (ii) building a base of investment data and information; (iii) consolidating and facilitating registration/licensing procedures for FDI projects;(iv) promoting/advertising the FDI environment; (v) preparing periodical reports on the FDI environment in the UAE; and (vi) attracting FDI to vital/strategic sectors; and
- by decision of the UAE Cabinet, an FDI Committee, charged with studying and recommending to the UAE Cabinet, amongst others things: (i) a list of economic sectors that may benefit from additional levels of foreign ownership (“Positive List”); and (ii) adding to the list of sectors that shall not be open to additional levels of foreign ownership (“Negative List”).
Positive List
- The FDI Law does not explicitly define the economic sectors or business activities in which foreign ownership beyond the current 49% limitation may be permitted. Rather, it provides that a Positive List will be developed by the FDI Committee based on certain key criteria, including:
- Strategic Plans in the UAE
- A return on investment for the UAE economy
- The business’ approach to UAE innovation
- Emirate national’s job and training opportunities
- The impact on other Emirati owned businesses
- The reputation and competence of the foreign investor
- The investment into and the use of modern technology
- Positive impact on the environment
The permission of foreign ownership is therefore based on discretion by the FDI, and the award of the business licenses will occur on a case-by-case basis. The FDI Law also provides that the conditions of investment will prescribe:
- The legal form of entity which may be established
- The percentage of capital capable of being owned, hence there may be a requirement for some Emirati national ownership of a minority investment;
- The minimum capital to be invested (with any conditions or controls attached to this investment); and
- A prescribed Emirati workforce/employees to be engaged by the company.
Negative List
The FDI Law sets out a number of sectors/activities in the Negative List, which the FDI Committee shall be able to add to. Currently, the Negative List includes:
- Exploration and production of petroleum products
- Hajj and Umrah services (including labour supply and recruitment)
- Insurance services
- Banking & finance activities and payment/cash handling systems
- Postal, communication, and audio-visual services
- Water and electricity services
- Land and air transport services
- Commercial agents services
- Retail medicine (private pharmacies)
Other Welcome Measures
The FDI Law also provides assurances that profits generated in the UAE from any FDI investment, the proceeds from the liquidation of the investment, and funds collected from the settlement of any dispute can be transferred out of the UAE, subject always to existing legislation. This would appear to give comfort and assurance to foreign investors that the UAE’s longstanding friendly investment culture will continue to apply.
Please contact Affiniax Partners for any advice with respect to registering a business with the new FDI entitlements.
5 THINGS YOU MUST CONSIDER WHEN SETTING UP A BUSINESS IN DUBAI
If you’re planning to start a business in Dubai, there are five crucial things you need to consider before setting up.
1. Forming the business model
It is imperative to understand the model of your business before taking the plunge into entrepreneurship. Often companies have been formed where the owner has a great idea but forgets that an elegant solution doesn’t automatically translate into a successful business. Companies require an appropriate and effective business model, with the right pricing, communications, and delivery channel to the right segment of customers to keep the business thriving.
It starts with validating a business opportunity, defining a large customer segment willing to pay money to solve a real problem, in much the same way as a proof of concept or prototype validates a technical solution.
Here are 5 points to understand when building your business model:
- Ensure your product pricing matches your target segment
- Ensure that your product offers a feasible solution to consumers’ problems.
- Pitch your solution to a group of customers, including all pricing details
- Talk to industry experts
- Plan a local rollout or pilot
2. Let your business model dictate your jurisdiction
An important part of your business model is the activity of the business. In the UAE, different jurisdictions allow or restrict certain types of activities. For instance, an MEP company cannot operate in a Free-Zone. These typically import products and store them in warehouses and factories, most of which are only allowed in LLC mainland areas.
When you have decided on the business activity, the next step is to determine the location, i.e., the place of operations. With all of the regulations around this area, it is important to seek advice from trusted company formation or business advisory companies.
3. Start-up Capital
When starting a business, it is a difficult decision whether to fund the business yourself or to use an investor to help with the start-up capital. Whilst having 100% of the business is compelling, it is important to understand the costs when initiating a new business. It is equally important to understand the costs when initiating a new business. It is equally important that with the investor model, all bases are covered in your financial model.
Common costs of starting a business in Dubai are:
- Registration of company and license type required
- Office rent
- IT infrastructure hardware and software solutions
- Employees salaries
- Your salary
Often businesses overlook costs that may seem small at first but can mount up. For instance:
- Marketing budget – How much are you going to invest in brand awareness and lead generation? Who or what is going to deliver the results you want?
- Staff secondary costs – Visas, medical expenses, cars, parking, etc. all add up. Ensure you understand the full costs of each staff member. Also, ensure you speak to the right company to ensure your visa allowances and commitments are clear.
- Information Technology (IT) – Whilst quantifying the IT hardware cost is relatively simple, the software required can seem a hidden factor. The small charges can add up to a much larger fee and can leave you overwhelmed if you are not prepared. Think about the different required software, who needs them, and for whom are they a ‘nice to have’ rather than a necessity.
- Office rental secondary charges – Firstly, think of the rental solution you require. Would a rented office space suffice, or is your team going to be starting in a way that requires your own office? Remember that any space that is taken and designed requires approvals from Government bodies before action can be taken.
- Communication / Utilities – From the mobile phones of your staff to the office phones on the desk, the associated bills need to be accounted for. With respect to utilities, enquire about average electricity and water charges from neighbors to allow you to get an idea about the cost; with rented office space, these are often accounted for and again provide a viable option.
- Consumables – Water, coffee, tea, sugar, printing cartridges…these all add up. Make sure to keep them as part of your costs.
4. Corporate Governance
When starting a business in Dubai, it is vital that you have the correct agreements and processes in place. From the start, you must ensure that, as a bare minimum, you have the SOPs (standard operating procedures) documented. These are the rules which allow you to define the rules and policies, and functions required to operate your business.
If you enter the business world as a partner/co-founder, you must ensure that shareholder agreements are created correctly. Not only must the business display its shareholder shares, but the functions that are delegated to them to earn that share, from investors to shareholders performing a set of key functions that dictate their worth.
Also, the contracts that stand between you and your customers, are they required, and to what depth must they be created?
Whilst, at the start, all parties are excited about the business, things can change that can change the relationships between parties. Ensure that all bases are covered and that clear policies and guidelines are drafted to handle even the worst-case scenarios.
Corporate Governance should be of paramount importance when setting up a business in Dubai. It is advisable, again, to seek the advice of a trusted business advisor when forming the company. You may not know of the potential hurdles you may face down the road.
5. Accounting
Accounting is one of the tasks that need to be satisfied early. For many start-ups, this can seem an overwhelming and confusing task.
Who will do it? What is important to record, and what tool shall be used?
The importance of accounting can have huge ramifications for a business throughout its lifetime. It is important to ensure the right steps are followed from the beginning so that you know financially where your business is throughout.
Effective accounting will define your budget throughout the year. However, a budget is often malleable, as businesses change based on many factors. An accounting role must be implemented regularly to track your performance against budget and the ramifications of different actions.
Accounting will also play a part in your cash flows. With cash flow being the vital killer of many businesses, it is important that it is implemented correctly.
Conclusion
With the many things to consider when setting up a business in Dubai, your choices of who will fulfill what roles, which can lead to success or failure, are very crucial. You are in the market to play out your business idea. Wherever you can use trusted resources to complete tasks that may not be in your skill set or time allowance.
Business Set Up with International Free Zone Authority (IFZA), Fujairah
International Free Zone Authority, or IFZA, is a newly launched free zone located in the heart of Fujairah. Fujairah is one of the seven emirates of the United Arab Emirates, and it lies on the eastern side of UAE, which has a coastline solely on the Gulf of Oman.
IFZA is set to quickly become a leading investment hub within the thriving UAE economy. Offering a highly customized approach, coupled with efficient international service standards and cost-effective solutions.
Top 5 Reasons Why Set up a Company with IFZA
Cost Effective
Fujairah is relatively less expensive for new businesses company compared to Dubai. In IFZA, a company can be set up with an Annual License fee of as low as AED 11,500. Several advantages are also available to all types of businesses, such as;
- Full repatriation of company profits and capital.
- 100% Foreign ownership
- 100% exemption from corporate and income taxes.
- No paid-up share capital requirement
- A maximum of 10 shareholders are allowed per license
Fast & Easy Company Incorporation
IFZA has made it easier for businesses to get approval from Authorities, and “NO” physical presence is required for an owner/investor, nor NOC (no objection certificate) is required from their sponsor if the owner/investor is carrying the UAE resident visa.
Wide and Comprehensive range of business activities and license
IFZA offers a wide and comprehensive range of business activities, including Consultancy, Service, Trading, and Industrial options. Holding License is also available. To be able to serve business locally and internationally.
Limited Liability Company
All licenses are registered with a structure of LLC which is an independent entity whereby the company structure separates the owners and shareholders from the Company.
Bank Account Opening
After obtaining a license, another struggle for investors is to set up their company’s bank account. IFZA has a list of banks where IFZA Company owners can easily open their bank accounts. However, the bank account opening will always be subject to bank compliance approval.
For more information on setting up a company with International Free Zone Authority, please feel free to contact our Corporate Services team at mail@affiniax.com