How to renew trade license in Dubai

Is your trade license near expiry, or is it set to expire soon?

Since the Department of Economic and Development in Dubai mandates the renewal of trade licenses annually, you might need to know the process and requirements you must prepare before it’s too late. As you know, there are penalties for failing to renew a trade license. Penalties may worsen, ranging from incurring fines of AED 250 per month to blacklisting and banning the company. Without your trade license, you cannot carry out any trading activity crucial for your business to function.

Worry not because IBG Consulting will guide you on how to renew a trade license in Dubai with the below information and procedures. We can serve as your local business consultants to help in completing these requirements and applying the procedures for you. 

To start with your renewal process journey, let us discuss the requirements that you need for this application.

Requirements for Trade License Renewal

We will mention the mandatory documents that you should have before proceeding with the application process. Suppose your trade license has come to its expiry date, and you have failed to renew beforehand. In that case, the Department of Economic and Development (DED) can grant you a 30 days grace period to process your trade license renewal. You can check your company status through the UAE government website or with your company setup agent.

Documents needed for business license renewal in Dubai or at the DED:

Ejari Certificate  - mandatory due to your tenancy contract attested by the Real Estate Regulatory Authority. Without Ejari, trade license applications may be revoked and can incur fines.
Typed BR/1 form - it is a license renewal form with the signature of existing partners. This form is needed to start the process and must be attached along with the other documents.
Photocopy of the current Trade License - application must include the old license in the attachments of other documents.
Business partner’s photocopy of passports - a requirement to show the stakeholders involved in your business. If there is none, you can submit your passport instead.

Other requirements for Freezone trade license renewal:

• Trade license copy or original document (depends upon the freezone)
• Audit reports
• P.O box confirmation renewal
• Passport photocopies of the shareholders
• Other documents required by the Freezone

Steps to Renew a Trade License

Mainland license renewal can be done in three easy steps. However, processes may differ from other Free zone areas. To guide you on how to renew your trade license in Dubai, here are the steps you can follow:

Compile necessary documents - Once you have settled all the requirements mentioned above, you are good to submit it with the DED to start your renewal process. Take note that the Ejari is essential, and it should be valid for at least one month from the date of your application since you cannot file for renewal without it.
 
Proceed with the application - After completion, you can submit your documents online or offline, depending on your convenience.  

Pay for your renewal application - After the renewal application is made, a payment voucher will be issued to you. Make sure to pay upon receipt. Right after the payment is made, you will receive your new license immediately. The cost for trade license renewal in Dubai will depend on your setup type and your business sector. Usually, standard license renewal can cost around AED 8,000 to AED 15,000.

How can IBG Consulting help?

In IBG, we do not let your trade license come to the point of its expiration. We help you renew your licenses on time every year without you having to worry. Since we provide such services, we are committed to being transparent in giving you updates regularly, and we will file all the necessary documents for you to avoid the hassle.

With IBG Consulting’s years of experience in the sector, we continue to build trust with our clients and provide quality service to our client’s needs. We are a team of professionals equipped enough to give you the best business solutions and service that will guide you to the business success that you dream of here in Dubai, UAE.

If you want to avail of our service, reach out to us or contact us for an initial consultation.

Do You Need to pay Tax While Buying a Property in Dubai?

In the UAE, the property market is a lucrative one with many expatriates opting to purchase one as soon as their move is finalized. In all the Emirates, there are several exclusive developments under construction, providing ample opportunity to purchase the latest and best properties in desirable areas.

However, purchasing a property in Dubai differs from purchasing in other countries to some extent, so it is advisable to enlist the services of professionals to help simplify the process. Finding reputable real estate agents within the region is not a daunting task.

A major advantage to note is that there are no limitations on who can purchase a property in Dubai, the buyer also does not need to have a legal residency or a permit.

During the buying process, there are various fees and taxes that are payable and which you will need to take into account in order to budget accordingly as these are often not added to the listing price.

The two main ways to purchase a property in Dubai include ‘off-plan’ buying, which is gotten from a developer directly from a developer, while still under construction. The other one is buying a ‘resale’ from an individual seller.

If you buy through a real estate agent, then they will charge you a commission, usually around 2% of the final purchase price.

Other fees and taxes payable throughout the sales procedure include a deposit, usually, around 10% of the purchase price or 25% if being purchased from a developer, a one-off land registry tax which is 4% of the purchase price plus an admin fee which goes to the Dubai Land Department.

After all the terms have been agreed to, and the deposit received, a sales and the purchase agreement will then be drawn up which is basically a formal acknowledgment of the purchase.

For the official transfer of ownership, a visit to the Dubai Land Department is required as well as the full purchase amount payable to either the developer or the seller.

Additional fees are added ff you are taking out a mortgage on part or full of the purchase price, including mortgage registration fees which are 0.25% of the loan amount, payable to the Dubai Land Department.

With all these fees and taxes, the final price will be different from the original quote, so you as a buyer will need to take all these into consideration when purchasing a property in Dubai.

How much does it cost to set up a company in Dubai Freezone?

Making the decision to set up a company in Dubai Freezone is one of the best decisions ever taken. The benefits of such a decision are many and tempting. Enjoying facilitated process, state of the art infrastructure with modern technology, and tax exemption up to 100% and foreign ownership up to 100% of the business. Moreover, 100% repatriation of capital and profits, and exclusion from all import and export duties. This sounds absolutely promising, in addition to, complete support from the respective designated jurisdiction or authority.

Trying to get an estimate to set up a company in one of Dubai Free zones, require understanding that, Dubai Government alters the setup cost every once in a while. So making the cost or the fees of the setup a fixed amount is highly unlikely. Therefore, it requires having an experienced consultant that is always well informed with the most recent changes.

Dubai is the modern times business hub of the world and the region, a fact that encourages many investors and entrepreneurs to set up their businesses on its lands, or set up a branch to guarantee their existence in the region with access to Asia, Africa, and Europe.

The setup cost changing factors may include but not limited to:

·         Freezone License
·         Rental Cost (Smart Desk, Office Units, Permanent Office / Warehouses)
·         Share Capital Requirements
·         Freezone Visa Fee
·         Bank Guarantee for Freezone
·         Registered Agent Fee
·         Name Approval
·         Notarization
·         Insurance expenses
·         Bank account in Dubai
·         Medical check
·         Police clearance
·         Emirates ID card

Further additional charges may vary depending on the nature of the business setup and the activity pursued.

IBG stalwart experts and professional consultants facilitate the entire process, break down the expenses, and help you make the best decisions for the Freezonebusiness setup in Dubai. Let’s choose the most suitable free zone for the desired business activity and get started today. Call us or visit our website.

How to set up an E commerce license in UAE?

Online shopping has become a huge part of our lives today, and it’s only going to grow more in the coming years especially with the number of e-commerce businesses being launched today.

With UAE currently hailed as having the most advanced e-commerce market in the whole MENA region the demand for e-commerce licenses in Dubai is rapidly increasing, with an average annual growth of 23 percent projected between 2018 and 2022.

This growth is due in part to a number of factors, but more importantly, the UAE government’s decision to support smart transactions between businesses and consumers for different types of purchases and services in the country.

How to get an e-commerce license in Dubai

Decide on your jurisdiction

The two major areas in the UAE for business setup are the mainland and the free zone. If you decide to setup a company on a mainland, your e-commerce license will be issued by the Department of Economic Development (DED), and if you go with the free zone, it will be issued by the relevant free zone authority.

What is your legal structure

Are you a sole establishment, LLC, a representative office etc.

Register your trade name

In order to get the initial approval certificate from the DED, you have to reserve your trade name.

Provide all the Required documents these include:

Passport/visa copies of the shareholders

Copy of sponsors passport/ emirates ID

Local service agreement/ Civil works agreement

NOC from the relevant authority

Draft an MOA

Once you’ve submitted all the required documents, to the authorities along with your Tenancy Contract and Ejari, you can open a corporate bank account upon receiving the license.

These are just a few of the steps to keep in mind before starting an online business in the UAE. You may or may not require all the steps mentioned above, but that is based on the nature of your business.

IBG has a team of experienced and professional experts on hand, to guide and assist you through the entire process and ensure your launch is successful. To get started or schedule a meeting simply send us an e-mail.

How to Obtain Food Truck License in Dubai?

The emergence of food trucks in Dubai has shown that people are not only on the lookout and open to new business ideas, but that the way of doing business is changing quickly.

A food truck is basically a moveable food vending stall, lots of people like it and the license required to run one in Dubai is becoming quite common, showing that not only is there a market for it, but running a Food Truck Business is also not as hard as it may seem.

A food truck is allowed by the DED to operate in an open public area and as a result, it has to adhere to certain procedures and processes and also needs a clear and detailed business plan as well.

For more information on how to get a Food Truck License in Dubai, keep on reading.

Normally, in order to obtain a trade license such as a kitchen or catering license, your business has to meet certain qualifications as determined by the DED. This way, they are able to ensure food and consumer safety.

And while setting up a food truck license in Dubai is not an entirely complex process, it does require approval from 4 concerned authorities such as:

• The Department of Economic Development (DED)
• Dubai Municipality,
• The Roads and Transport Authority (RTA) and
• The Dubai Electricity and Water Authority (DEWA).

How to Setup A Food Truck License in Dubai:

Before setting up a new business, you need to meet with the best consultants on the topic, they can then advise on how to proceed.

The first step, however, involves making a proper business plan to submit to the DED and Dubai Municipality for approval.

The second step requires a certificate of Hazard Analysis Critical Control Point (HACCP) kitchen layout for approval.

For the third step, the food truck layout, designed by a professional will have to be submitted to the Dubai Municipality. In this document, you will be required to specify the fire and safety instruction, kitchen layout with proper ventilation.

For the fourth step, you have to choose an appropriate location where your food truck will serve food. It is important for the health and success of your business that you choose the most suitable location.

In the fifth step, you can now design the food truck, however, ensure that the design is the same one that has been approved by the department.

The final step is getting the license issued for your food truck business.

Although the process is not at all complicated, it is lengthy and as a new business owner unfamiliar with all the departments and local laws, you might find it difficult.

At IBG, we are here to share your burden, contact us today and we will take care of the whole process from beginning to end.

The Cost To Setup A Company In Dubai

A business setup in Dubai has its own advantage, particularly in terms of location and proximity. However, costs vary due to multiple factors that affect the final amount expected to spend. Moreover, low costs business setup in a free zone area, per say, also is determined by the business structure, nature, facility, and the number of visas required.  The following are some of the expected costs to register a company:

• In-the-city registration fee
• Name-reservation fee
• Business license fee
• Facility/office fee 
• Visas fee per person
  
  
  

Similar to free zone costs, setting up business in the mainland relies on factors like the business activity, visa permit counts, and facilities. Nevertheless, some additional expenses, that might be a one-time thing or recur annually, that increase the bill would include:

Government Fees are obligatory and would include:

• Notary fees
• Trade license fees 
• Registration at government department fees 
• Legal translations fees

Incorporation includes document submissions, arrangement of inspections, and others and that would be in most cases a one-time fee. 

Immigration and Ministry of Labor registration is to be expected and that might be renewed every two years. Moreover, the annual sponsor fee, a one-time legal fees, commercial premises fee and visa per person are to be quiet pricy on their own.

PRO service fees is another item to add to the list. For trade license management there is another fee under PRO services. Ministry of Economy registration fee is also to be included. In addition to Chamber of Commerce registration fee. PO Box, phone line for corporate registration, if needed, fees.

Having a solution house of experts helping you understand the fee structure of Dubai business setup would make the process way easier and controllable. A consultancy firm of complete business services from setup to running your company will leave you at ease and save you a lot of money, effort, and time! IBGME business consultancy team of experts will help make the right choices and understand what would be best for your plans. Call us today, let’s start working on making things better for your business success!

What are the Pros and Cons of company setup in UAE?

When entrepreneurs start pursuing a company set up in UAE, they must understand and comprehend the bigger picture. Look at all the angles understand what would seem like a disadvantage or an advantage. They should weigh the pros and cons of such a decision before going ahead and signing the business setup in Dubai. 

·        UAE has copious Free trade zones providing abundant possibilities of company setup all over the country with a functioning office, taxation exemption and the 100% ownership of the company by foreign investors.

·        Double tax treaties would avail more advantages in parallel thanks to the great number of tax treaties signed between UAE and other countries. Obtaining a number of residency visas in UAE for the company’s shareholders, directors, and employees based on the zone and the number of visas permitted with every activity.

There are more advantages to discuss but each free zone has it is a pack of pros, as well as mainland incorporation through the DED and allows you to do business locally and internationally. As long as the entrepreneur follows the regulations and fulfills the requirements. Contradicting to the long lists of advantages there are some items that some would consider disadvantages. Although Resident companies do not pay taxes, they have no choice but to prepare their accounting and file it for regular audit. Financial reporting is not to be considered an actual con.

·         The relatively high costs of Business setup in Dubai compared with the offshore companies in most of the international offshore jurisdictions. However, for a moderately sized business, considering that the company in UAE is the fully tax exempted resident company in a strong political and economic climate.  

Sharp ideas of the cons or disadvantages of the companies in UAE are relatively minor.  UAE is now the host of most of the largest international companies in the region. Moreover, the number of international companies keeps growing thanks to Emirates' clear legislation, professional local and international banks and modern technology developed infrastructure. Speak to IBG Consultants today, Success is around the corner.

Affordable Bookkeeping Services in Dubai

Bookkeeping can be a stressful task for many under the most favorable circumstances. Consequently, that is the reason it is vital to make a decision to get an ideal advice. Poor bookkeeping develops into wavering finances. Being a startup leaves a very small window for mistakes or making hasty decisions!

It is not for long till a business owner realizes that accurate and conversant financial records play a significant role in the success of a business. After all, business owners did not go into business to do the bookkeeping.

Hire full-timer or outsource a bookkeeper?
 
Outsourcing bookkeeping services firm in Dubai will:

• Give an owner peace of mind by removing the opportunity to have a member of their community in contact with their financial records when they have strong client references and many years’ experience.
• Enable the service to scale to needs, without having to hire or train additional staff. 
• Eliminates the concern over whether the records are accurate or questioning the integrity of the financial data. 
•  Elevates the burden of the task allowing business owners to spend their time doing what is best for business itself.

How is Outsourcing a bookkeeper affordable?

Outsourcing a bookkeeper or pursuing bookkeeping services in Dubai could be more affordable than hiring an in house bookkeeper because:

• It saves the headhunting process and its expencesses. 
• It saves the hiring process time and expencesses.
• It saves the liabilities of hiring an employee.
• It saves the on job training time.
• It is budget friendly as you can decide what kind of tasks are needed
• Moreover, choose a package that fits the business and its monetary requirements.

IBG bookkeeping services’ purpose is privacy, accuracy, precision, and professionalism.  We organize your finances eliminating unnecessary financial expenditures. Get par excellence services with the best Bookkeepers in Dubai and customize a budget friendly affordable package to fit your business needs with IBG, the most reliable Bookkeeping Services Firm in Dubai!

5 Reasons why Small Business Need Bookkeeping

Why is it substantial to pursue bookkeeping for small businesses?

• Accurate planning of the business resources and activity

Bookkeeping helps small businesses understand the concept of covering fixed costs, variable costs, and how to properly tailor the costs to avoid losses. Knowing where exactly the business stands will help in decision making as it concerns expanding the business.

• Controls misappropriation of funds

A good bookkeeping system will facilitate for business owners to be aware of unnecessary. In the absence of a proper monetary monitoring system, the business could be depleted.

• Auditing and Tax obligations

Bookkeeping helps small businesses get through audits worry-free. A good accounting and bookkeeping system helps to ensure fulfillment of all tax obligations and avoid tax penalties which.

• Business expansion plans

Banking is more facilitated for business owners who have a proper and accurate documentation on the finances of their business. It is clearer and more beneficial to determine if the business is ready for an expansion or not with proper bookkeeping. 

• Determining profits

A business that fails to generate profits regardless of whether it is generating large sales revenue is heading towards failure. With the help of a professional bookkeeping, it is easier to magnify the right trends for the business leading to more stable business and higher profitability.

IBG caters the Best Accounting & Bookkeeping Service in Dubai UAE for your small sized business. It is the first step in setting yourself up for success and at IBG; we believe that we are the success partners of our clients. Get in touch with our consultants and begin your own success story.

How to open a shop in Dubai?

Dubai has established its name as the financial, business and commercial, trade center of the Middle East, by becoming one of the GCC’s rapidly growing economies, due to its helpful business atmosphere and well-informed investment decisions. Ideally, setting up a shop in Dubai is quite a promising idea. Shops in the retail, beauty salon and restaurant domains are the most widespread in Dubai and each has its set of requirements and procedures. Nevertheless, what are the general steps of opening a shop in these fields?

·         Retail Shop

With the Dubai shopping festival and other similar events - opening a shop in Dubai could be a very profitable business. It is mandatory to obtain the support of a local partner having not less than 51% of share in the business. For the commercial license to be issued, some documents have to be submitted to the DED in Dubai and the UAE federal ministry of Economy:

Ø  An application with the company's name mentioned in English and Arabic.

Ø  The original lease contract for the registered address of the company.

Ø  The permit issued by the Dubai Municipality Building Department clearing the use of storage space as a business address for the retail store.

Ø  Payment proof of trade license issuance fee Shop on Rent Hiring a shop for rent also comes with certain series of permissions required to get from different governmental bodies.

After going through the outline and the main frame for the steps and what is needed to open a shop in Dubai, learn more with the assistance of IBG veteran consultants and make the best decisions for a UAE business setup. Join the parade of success and thrive with the budgeted and time-efficient consultancies.