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How to Choose the Best Freezone for Business Setup in UAE – Part One

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Introduction:

Setting up a business in the United Arab Emirates (UAE) offers numerous advantages, including a strategic location, a strong economy, and a business-friendly environment. One of the key considerations when establishing a company in the UAE is choosing the right free zone. Free zones provide businesses with a range of incentives, such as tax exemptions, 100% foreign ownership, and simplified company registration processes. In this blog, we will explore the top ten free zones in the UAE, known for their exceptional facilities and benefits.

1. Dubai Multi Commodities Centre (DMCC)

As the largest and fastest-growing free zone in Dubai, DMCC offers a wide range of sectors, including commodities, technology, and professional services. With state-of-the-art infrastructure, business support services, and a strategic location, DMCC is an ideal choice for businesses of all sizes.

2. Meydan Freezone

Situated in the heart of Dubai, offers a strategic location for businesses looking to thrive in a dynamic economic environment. Known for its modern infrastructure and business-friendly policies, Meydan Freezone provides a range of amenities and support services tailored to meet diverse business needs. Whether in technology, finance, or logistics, Meydan Freezone fosters growth and innovation, making it a preferred choice for local and international enterprises alike.

3. Jebel Ali Free Zone (JAFZA)

JAFZA, one of the oldest and largest free zones in the Middle East, provides a strategic location and world-class infrastructure. It offers a diverse range of business activities and has a reputation for attracting large multinational corporations.

4. Dubai Silicon Oasis (DSO)

DSO is dedicated to technology and innovation-based industries, making it an ideal choice for IT companies, startups, and research institutions. It offers advanced infrastructure, research and development facilities, and incentives for tech companies.

4. Ras Al Khaimah Economic Zone (RAKEZ)

RAKEZ, located in Ras Al Khaimah, offers cost-effective setup options and a wide range of business sectors. It provides simplified procedures, making it attractive for startups and small to medium-sized enterprises (SMEs).

5. Abu Dhabi Global Market (ADGM)

ADGM is a leading international financial center in Abu Dhabi. It offers a robust regulatory framework, attractive tax benefits, and access to a global financial marketplace. ADGM is particularly suitable for companies in the financial and professional services sectors.

6. Hamriyah Free Zone (HFZ)

Located in Sharjah, HFZ provides competitive pricing, a strategic location, and a wide range of business activities. Its proximity to major seaports and airports makes it an ideal choice for companies involved in import-export and manufacturing.

7. Ajman Free Zone (AFZ)

AFZ, located in Ajman, offers cost-effective setup options, a strategic location, and a supportive business environment. It is particularly attractive for startups and small businesses looking for affordable yet well-connected free zone options.

8. Sharjah Airport International Free Zone (SAIF Zone)

SAIF Zone, situated in Sharjah, provides easy access to Sharjah International Airport. It offers a wide range of business activities, competitive pricing, and excellent connectivity, making it an ideal choice for companies involved in logistics and trading.

9. Fujairah Free Zone (FFZ)

FFZ, located in Fujairah, provides a strategic location and a business-friendly environment. It offers a range of business sectors, attracting companies looking to access the Indian Ocean markets and benefit from the region’s growing trade opportunities.

10. Umm Al Quwain Free Trade Zone (UAQ FTZ)

UAQ FTZ, situated in Umm Al Quwain, offers cost-effective setup options, a strategic location, and a range of business sectors. It is particularly popular among startups and SMEs due to its affordable pricing and supportive business environment.

Conclusion:

Choosing the best free zone for your business setup in the UAE is a crucial decision. Each of the top ten free zones mentioned above offers unique advantages, ranging from strategic locations to sector-specific benefits and world-class infrastructure. It is essential to thoroughly research and consider factors such as your business requirements, target market, and industry focus before making a decision. By selecting the right free zone, you can benefit from the incentives and support available, setting your business up for success in the dynamic UAE market.

Get in touch with one of our professional Business Setup Consultants who would be delighted to go through the options for you, to ensure that your specific business needs and goals are catered for and enabling you to make an informed decision for your business setup.

Contact us now at narisah@affiniax.com for more information.

New Licensing Requirements for Social Media Influencers in Abu Dhabi and the Rest of the UAE

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Introduction

In recent years, the rise of social media has given birth to a new variety of celebrities known as social media influencers. These individuals have gained a significant following on platforms like Instagram, YouTube, and TikTok, allowing them to monetise their online presence through brand collaborations and sponsored content.

With the increasing influence and impact of social media influencers, authorities in Abu Dhabi and the rest of the UAE have introduced new licensing requirements to regulate this emerging industry. In this blog post, we will explore the new licensing requirements and their implications for social media influencers in the UAE.

Understanding the New Licensing Requirements

The UAE government has recognized the need to regulate social media influencers to ensure transparency, credibility, and fair business practices. Under the new regulations, social media influencers are required to obtain a license from the relevant authorities before engaging in any promotional activities or earning income through their online platforms.

This license aims to ensure that influencers adhere to certain standards and guidelines set by the authorities.

Application Process and Criteria

To obtain the license, social media influencers need to submit an application to the concerned authority, providing relevant information about their online platforms, audience demographics, and past collaborations.

The application may also require influencers to provide proof of their professional qualifications, such as certifications or relevant experience in their field. Authorities will review the applications and assess the influencer’s credibility and potential impact on the community.

Licensing Fees and Renewal

Social media influencers will be required to pay a licensing fee, which may vary depending on factors such as the influencer’s reach, engagement, and industry. The fees will contribute to the regulation and monitoring of the industry.

Additionally, influencers will need to renew their licenses periodically, ensuring that they continue to meet the required standards and guidelines which Affiniax Partners can certainly assist you with.

Compliance and Monitoring

Once licensed, social media influencers must comply with the regulations set by the authorities. This includes clearly disclosing sponsored content, adhering to ethical practices, and avoiding misleading or false information. Authorities may also conduct periodic audits to ensure compliance and monitor the influencer’s activities.

Implications for Social Media Influencers

The introduction of licensing requirements may present both challenges and opportunities for social media influencers. On one hand, the regulations may increase transparency and professionalism in the industry, enhancing the credibility of influencers and fostering trust among their audience. On the other hand, the licensing fees and compliance obligations may pose financial burdens and administrative challenges for smaller influencers.

Benefits of Licensing Requirements

The new licensing requirements aim to protect consumers, regulate the advertising industry, and create a level playing field for all influencers. By ensuring that influencers meet certain standards, the authorities can safeguard the interests of both brands and consumers. Licensing also enables the government to monitor the industry and take action against fraudulent or unethical practices.

Conclusion

The introduction of new licensing requirements for social media influencers in Abu Dhabi and the rest of the UAE is a significant step towards regulating this rapidly growing industry. While the regulations may pose challenges for some influencers, they also offer opportunities to enhance professionalism, credibility, and consumer trust. As the industry continues to evolve, it is crucial for influencers to stay updated with the licensing requirements and comply with the regulations to thrive in this dynamic landscape.

Contact us for more information at narisah@affiniax.com

Effortless Compliance Reporting: How Automation Revolutionises Regulatory Obligations

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Staying compliant with the ever-evolving regulatory landscape is paramount in the fast-paced business world. The burden of manual compliance reporting can be time-consuming and error-prone for professionals. Fortunately, automation, coupled with expertise, can be a game-changer. In this blog, we’ll delve into the art of automating compliance reporting, streamlining the process and ensuring accuracy.

Why Automate Compliance Reporting?

Automating compliance reporting is not just a trendy buzzword; it’s a necessity. Here’s why:

  • Accuracy: Manual data entry is prone to errors. Automation ensures data accuracy, reducing the risk of non-compliance and penalties.
  • Efficiency: Automation slashes the time required for report generation, allowing professionals to focus on more strategic tasks.
  • Adaptability: Regulations change frequently. Automation can quickly adapt to new requirements, keeping your business compliant.

Let’s break down the process of automating compliance reporting:

  • Data Extraction: Create a system to extract data from your accounting software. Utilize tools like Microsoft Power Query for seamless data retrieval.
  • Validation: Develop validation rules within the system to cross-check extracted data against regulatory requirements. If discrepancies are found, the system can flag them for attention.
  • Report Generation: Employ workflow automation tools such as Microsoft Power Automate to generate reports automatically. These reports can be tailored to meet specific regulatory needs.

Key Benefits of Automation:

  • Time-saving: Automation allows professionals to focus on analysis and decision-making rather than manual data handling.
  • Reduced Errors: Minimise human error and enhance the integrity of reports.
  • Auditing Made Easy: Automated systems maintain logs, facilitating audits and ensuring transparency.

Affiniax Partners offers this service, and if you’re interested, please contact Nihar Kothari, Partner at nihar@affiniax.com

Automate Your Payment Reminders and Improve Your Cash Flow

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Automated Payment Collection Reminders

Why Automated Payment Reminders?

As a small business owner in the UAE, you know that collecting payments from clients on time is essential for your cash flow. It is also an important part of accounting and bookkeeping services of a company. But it can be time-consuming and frustrating to track down late-paying customers. That’s where automated payment reminders come in.

Automated payment collection reminders are a simple and effective way to improve your cash flow and customer relations. By automating your payment reminders, you can free up your time to focus on other aspects of your business, while ensuring that your customers are always aware of their accounts payable status.

Benefits of Automating Payment Reminders

There are many benefits to automating your payment reminders, including:

  • Increased efficiency: Automating payment reminders frees up your time so you can focus on other aspects of your business.
  • Improved cash flow: By collecting payments on time, you can improve your cash flow and avoid levying late fees.
  • Better customer relations: Automated payment reminders can help you maintain good customer relations by keeping customers informed about their account status.
  • Improved customer service: Automated payment reminders can help you improve your customer service by providing a consistent and efficient way to communicate with customers about their account status.
  • Increased sales: By collecting payments on time, you can free up cash to invest in your business, which can lead to increased sales.

How to get started?

There are a number of ways to automate your payment collection reminders. At Affiniax Partners, we provide effective solutions to automate your collections and sending periodic reminders to your customers. This starts with a consultation to assess your current systems and processes.

To learn more about how to automate the payment reminders please contact Mr. Nihar Kothari, Partner at nihar@affiniax.com.

PHISHING ALERT: UAE VAT

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“We are aware that a number of clients have been sent emails and letters from fraudsters pertaining to be the Federal Tax Authority or Banks and requesting for certain details from them. The Federal Tax Authority would generally only communicate with registrants through emails from the domain tax.gov.ae sent to the registered email address, or via your eservices.tax.gov.ae portal and registered number. If you are uncertain as to the genuineness of communication received, please feel free to contact our VAT services team for guidance.”

OWN FREEHOLD PROPERTIES IN DUBAI WITHOUT A DUBAI LICENSE FOR RAKICC REGISTERED COMPANIES

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Dubai Land Department (DLD) strengthen ties with Ras Al Khaimah International Corporate Centre (RAKICC) by signing Memorandums of Understanding (MOU) for the registration of freehold properties in Dubai. With this, there is no need for RAKICC Registered Companies to obtain a Dubai trade/commercial license to own a property in Dubai. No objection Certificate from RAKICC is one of the main requirements to acquire a freehold property. As of now, there are total of 23 freehold areas in Dubai and some of them are the following:
  • Dubai Marina
  • Downtown Dubai
  • Jumeirah Village Circle
  • Palm Jumeirah
  • Jumeirah Lakes Towers
  • Business Bay
And project developer such as:
  • Dubai Global
  • Dubai Holding Projects
  • EMAAR
  • Nakheel
  • Dubai Real Estate Corporation – Wasl Properties
  • Meraas Holding
This collaboration aims to open more doors of opportunities to invest in the Emirate’s Real Estate market and to disperse DLD’s expertise in Real Estate regulation and registration at the local, federal and global levels. For more inquiries or clarifications, please feel free to contact our Corporate Services team at mail@affiniax.com.

DMCC INTRODUCES DUAL LICENSING SCHEME BY PARTNERING WITH DED

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As part of a continuous effort to transform Dubai into an investment friendly ecosystem, Dubai Multi Commodities Centre (DMCC), the world’s flagship Free Zone and Government of Dubai Authority on commodities trade and enterprises, and the Department of Economic Development (DED), the Government of Dubai entity that regulates the economic activities of all onshore companies, have signed a strategic agreement to collaborate on the licensing of companies in Dubai- allowing them to operate within the Free Zone and onshore. The Memorandum of Understanding (MoU) introduces a dual licensing scheme to DMCC member companies, enabling them to establish a presence and operation in mainland Dubai under a DED license. It will also enable Free Zone businesses to carry out some service activities onshore, provided that DMCC member companies will obtain a no objection certificate (NOC) from the DMCC Authority. The partnership aims to further facilitate trade and boost economic activity with the potential change to the entrepreneurship and business outlook in the Emirate and to further improve transparency, governance and compliance in the business sector. This will also welcome new business opportunity and flexibility to conduct businesses across Dubai. We will keep you posted on any update regarding the above matter and its implementation.

100% FOREIGN OWNERSHIP IN THE UAE FOR CERTAIN ACTIVITIES

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His Highness Shaikh Mohammad Bin Rashid Al Maktoum chairman of the UAE cabinet, Vice President, Prime Minister and Ruler of Dubai has approved the sectors and economic activities eligible for up to 100% foreign ownership in the UAE. Total of 122 economic activities across 13 sectors were specified to be entitled for up to 100% foreign ownership. The decision aims to support the growth environment and to reaffirm UAE’s position on the global arena as a hub for investment. The sectors covered are
  • Renewable Energy
  • Space
  • Agriculture and Manufacturing Industry
  • Transport and Storage
  • Hospitality and Food Services
  • Information and Communications
  • Professional, Scientific and Technical activities
  • Administrative Services
  • Support Services
  • Educational Activities
  • Healthcare
  • Art and Entertainment
  • Construction
The Local Governments will specify the ownership percentage of foreign investors in these activities. We will keep you posted on any update regarding the above matter and it’s implementation. We at Affiniax Partners can assist you with Economic Department Company Formation. For more information towards the company formation please feel free to contact our Corporate Service team at mail@affiniax.com.

WHY INVEST IN THE UNITED ARAB EMIRATES?

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Introduction: United Arab Emirates The UAE’s status as a growing knowledge hub is enhancing its attractiveness as a business destination that offers a multitude of possibilities. There are more than 40 free trade zones in UAE which offer business stability and 100% foreign ownership. The taxation regime is extremely appealing with 0% Corporate Income Tax for most sectors and no Personal Income Tax or Social Security Contributions. Business confidentiality and having no restrictions in establishing more than just one activity in the UAE makes it easy for international investors to set up their businesses in the UAE. Moreover, strong and rapidly expanding infrastructure plays a major role in attracting businesses to the UAE. Dubai is fast becoming an important financial center that offers business support for foreign investors looking to invest in the region. With the World Expo being held in Dubai in 2020, a number of international companies and investors will be looking to explore opportunities in the UAE. Having nearly 30 years of presence and experience in the region, Affiniax Partners are well placed to assist your clients with their requirements in the UAE. Few aspects to consider when considering your move to Dubai:
  • Skilled local and International workforce.
  • The import and export sector benefits from a series of advantages and foreign companies are exempt from most tax and duties.
  • Entrepreneurs in Dubai can easily connect with countries worldwide when having a business in the UAE.
  • It is very easy to set up a branch or a subsidiary in Dubai.
  • The incorporation process in Dubai is not subject to complex formalities and entrepreneurs can easily set up their business.
  • The tax benefits are huge in Dubai, and entrepreneurs from abroad can enjoy tax exemptions like 0% corporate or income taxes.
  • The positive trends of the real estate sector in Dubai attract different foreign businesses every year.
  • A strong Currency with pegged AED to USD rate.
  • Dubai is an important tourist destination which offers plenty of opportunities in this area.
  • The UAE has already signed over 40 Double Tax Treaties with various jurisdictions and is in the process of agreeing on agreements with more jurisdictions, including the UK, Australia, and other EU countries.

DOUBLE TAX TREATY: INDIA & UNITED ARAB EMIRATES

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The Double Tax Treaty between UAE and India was signed in 1989 and later amended through notifications of 1993, 2001, 2007 & 2013. Double taxation is defined when similar taxes are imposed in two countries on the same taxpayer on the same tax base, which harmfully affects the exchange of goods, services and capital and technology transfer and trade across the border. Public and Private companies, investment firms, air transport firms and other companies operating in the UAE, as well as residents, benefit from Avoidance of Double Taxation Agreements (DTA). Thanks to an intensive economic trade of more than 20 billion dollars between UAE and India, the two countries have signed an arrangement based on the promotion of mutual economic relations. Because of this tax convention, India and UAE have managed to avoid over-taxation of their legal entities and taken successful steps to prevent tax evasion. The following incomes are protected by the double taxation treaties signed between the UAE and India:
  1. Revenues from personal services.
  2. Revenues derived from shipping and air transportation.
  3. Interests, dividends, and royalties registered in both countries.
  4. Incomes from the alienation of immovable or movable properties are protected by this DTT (under specific conditions).
Companies with permanent establishments like factories, offices, branches, workshops, or any other workplaces in Dubai are covered. To determine the country of residence for a legal entity, the state takes into consideration whether the business has one of the following establishments on its territory:
  • A place of Management;
  • A Branch;
  • An Office;
  • A Mine;
  • A Factory or Workshop.

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