1. BANKING
In the UAE, most locally formed banks as well as branches of international banks provide commercial banking services. Federal Law No. 10 of 1980’s regulations apply to public shareholding corporations that have local bank licenses, and the same law also applies to foreign banks’ branches operating in the UAE. Certain foreign banks maintain representative offices in the UAE.
In addition to the company and personal documents, documentation of the business’s local address (EJARI – lease copy of business property and DEWA bill – most recent utility bill copies of the business property) and other UAE residency details to open a corporate bank account.
Depending on the type of bank you select, a monthly average balance is required. Banks in Dubai and the UAE typically require a minimum initial deposit of AED 25,000 to AED 500,000 plus for opening and operating corporate accounts. In most cases, this deposit amount can be withdrawn.
2. VISAS
All foreign nationals wanting to live and work in the UAE must acquire a UAE resident visa. The visa can either be sponsored by their employer or via other visa options (Golden visa, green visa, family sponsorship visa, work visa etc.) When the company is registered, an application for the company labour and Immigration / Establishment Card needs to be done to be able to apply for visas under the company. Note the number of visa eligibility available with the UAE company is linked to the business facilities/office size. Therefore, the more visas needed under the company, the bigger the business space needed. For more information, you can refer to our UAE visa services.
3. WAGE PROTECTION SYSTEM (WPS)
WPS is an electronic salary transfer system that was introduced in 2009, by virtue of Ministerial Decree No. 788. WPS ensures that employees are paid the right wages or salaries (based on employment contracts) and in a timely manner.
It is mandatory for all private sector companies to register with WPS and upload payroll details before they can transfer money to their employees. Ministry of Human Resources & Emiratisation (MOHRE) and the Central Bank of the UAE verify and validate the details of each employee’s salary. In the case of non-compliance with WPS, penalties range from AED 5,000 to AED 50,000 to a company. Therefore, it is vital your company is registered with WPS and ensures to pay salaries on time and as per the process.
4. OUTSOURCED SERVICES
Outsourcing can help businesses reduce operating costs significantly while a business is able to continue focusing on its core revenue-generating activities. Some of the main outsourcing solutions we provide to businesses are payroll, accounting and bookkeeping, VAT registration and compliance, PRO and Human Resource services.
5. PAYROLL
Payroll management is a challenging task for any company, especially the management team and directors of companies that are unfamiliar with the UAE labour law. The key considerations are listed below:
- WPS compliance
- Incentive computation e.g., overtime, commission, bonus, etc.
- Employee leave management
- End-of-service benefits and gratuity
- Salary processing and pay slips
- Managing deductions
- Employee expense reimbursement
6. ACCOUNTING AND BOOKKEEPING
Accounting and bookkeeping tasks are essential for every business. Keeping accurate, up-to-date, and comprehensive records of financial operations is essential for effective financial management. The main UAE accounting and bookkeeping tasks you can outsource are:
- Account setup
- Historic bookkeeping update
- VAT registration
- Quarterly VAT return filing
- Account ageing
- Annual audit preparation
- VAT refund assistance
- Custom registration
- goAML registration
- Economic Substance Reporting (ESR)
- Ultimate Beneficial Ownership (UBO registration)
- Annual budget preparation
- Quarterly re-forecasting
- Cashflow projections
- Business plans
- Pitch/Investment decks
- ERP implementations
7. VAT REGISTRATION
If a company’s taxable imports and supplies in the previous 12 months total more than AED 375,000, they are required to register for Value Added Tax (VAT). The Federal Tax Authority (FTA) would provide a Tax Registration Number (TRN) to the business following the registration.
If the supply and imports equal at least half (i.e., AED 187,500) of the statutory registration threshold, a business may elect to voluntarily register for VAT (AED 375,000).
VAT registration is advantageous for businesses since, unlike non-registered businesses, who are end-users and are not eligible to collect VAT, only registered businesses can claim input VAT paid on their purchases and expenses. In other words, if a business is not registered, it loses input VAT and must bear the expense of input taxes, which drives up selling prices, reduces market competitiveness, and slows corporate growth.
Additionally, failure to register would result in fines and penalties imposed by the FTA. Registration is crucial as a result.
8. COMPLIANCE
For the efficient and responsible conduct of business, the UAE has put in place several compliance legislations, and entrepreneurs are obliged to abide by these regulations.
The UAE wants to ensure that entrepreneurs follow its business regulations, which are in line with international standards, and that large fines are imposed if they do not.
9. PRO SERVICES
The most common requirements for PRO services in Dubai and the UAE include:
- Resident, investor, employee, family, domestic helpers, and visitor (all visa types)
- Company labour and Immigration Cards
- Company labour quota applications
- Immigration services
- Labour services
- Offshore & security passes
- Emirates ID Cards
- Company and branch formation
- Annual license renewals and updates
- Amendments to company licenses
- Company re-domiciliations
- Regulatory approvals
- Drafting and receiving No Objection Certificates/letters (in English and Arabic)
- Certification, notarization, and attestation of legal documents
- Liquidation and deregistration of companies or branches
- Trademark applications
10. HUMAN RESOURCES
Human Resources (HR) outsourcing can cover a broad spectrum of services, from day-to-day HR functions to long-term, strategic initiatives. Some of the main HR outsourcing services include:
- Recruitment and selection
- Drafting of employment offer letters and contracts
- Employment and labour law compliance
- Employee onboarding
- Payroll services administration
- Risk management and workplace safety
- Employee performance review
TAKEAWAY
There are various procedures and requirements that you need to prepare and take into consideration to successfully operate a business in the UAE. From selecting the right structure for your company, to drafting the correct documentation, to business license and office registration, visa services, banking support, accounting, bookkeeping, payroll, compliance, and tax services. The Corporate Structuring Department at Creation Business Consultants will help you throughout the entire process. Our team of experts will leverage our experience to help simplify the process while simultaneously providing you with support solutions to run your company in the UAE. Contact a member of our team to learn more about post-incorporation compliances in the UAE, email us at [email protected] or call UAE +971 4 878 6240 Saudi Arabia +966 54 511 2494
