Setting up business in UAE significantly depends on the rules and regulation, business environment and the culture itself. It is important that all related issues or concerns are identified, understood, measured and dealt effectively during the process of setting up the business.
Setting up business in the UAE Free zones significantly depends on the rules and regulation and policy guidelines that are specifically set by each Free Zones Authorities.
Advantages of the companies in free zones:
1.100% of foreign ownership.
2.100% corporate and personal income tax exemption.
3.100% repatriation of capital and profits.
5.Abundant and inexpensive energy.
6.No currency restrictions.
Key steps to set up a business in a free zone:
Determine the type of legal entity
In a free zone, you can set up one of the two types of companies:
I) Free Zone Limited Liability Company (FZ LLC) or Free Zone Company (FZ Co.)
II) Free Zone Establishment (FZE)
2. Choose a trade name
Before choosing a trade name, you should check either with the respective free zone authority or the respective with the Department of Economic Development about the permitted trade names and whether the intended name has already been registered.
3. Apply for a business license
The type of business license you will apply for depends on the primary activity of your business.
4. Choose an office space
You can either buy or lease office spaces in free zones. Office requirements depend on the number of employees and type of business activity of your company.
5. Get pre-approvals, register your business and get your license
Company Liquidation (also called de-registration) is the process when the company or business completely closes down all of its operations and all the assets and properties of the company distributed to its creditors and shareholders.
The following details are the requirements that are needed to accomplish before a business or company in the UAE will successfully liquidate or terminated.
Free Zone Company Liquidation Requirements:
1. The company must not have any liabilities
2. All existing active visas must be canceled
3. All existing corporate Bank Accounts must be closed
4. Any assets at the time of liquidation must be transferred to the shareholders or a third party
5. All fees and charges concerning the free zone authority must be cleared
6. Immigration clearance must be obtained from the Free Zone Authority
7. The company must prepare a resolution to liquidate and appoint a licensed liquidator to carry out the procedure
8. The liquidator must approve the order of action of the company’s liquidation and send confirmation that the company has no assets or obligations/liabilities by preparing a final Audit Report/Liquidation Letter
1. Clearance certificate from relevant free zone authority
2. Clearance certificate from the business unit and all utilities
3. Clearance certificate from any related authorities as per the regulated activity
4. Clearance for customs
(Note: Requirements may vary from free zone to free zone but most of them will remain the same in each free zone.)
In all cases, you will need to cancel the employees’ visas and their work permits. Dubai portal explains that this requires coordination with both the Department of Naturalisation and Residency and the Ministry of Human Resources and Emiratisation.
As per the UAE’s Labour 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. Collect a NOC from the utilities providing company for processing the closure.
Normally, there are three general stages for every liquidation process. These are:
In this stage, certain procedures are needed to be performed such as Due Diligence compliance, review of the company’s liabilities and commitments, asset disinvestment process and liquidation cost and plotting a liquidation timetable
2. Liquidation Stage
In this stage, the liquidation process now begins. This includes preparing the required documents and the accounts to be liquidated, asset disinvestment process, Debt recovery, and creditors payments and Liaison with Notary and Government authorities
3. Closure Stage
For the final step, this process includes termination of the contract, payments for final settlement, informing the public and deregistration.
Why need BMS Auditing Chartered Accountants?
BMS is an organization with expert professionals who can help you with the registration and formation as well as liquidation and de-registration of your business in any of the UAE Free Zones. Our market experience and the solid personal relationships which we constantly maintain with the major finance providers and business communities, we behold specialist advisory skills to support you both in the local and global market place.
With BMS, we can help you identify the needs of your business by:
1. Providing Guidance & Support in strategizing your business plan and providing business advisory.
2. Assisting you in making the best decision in favor of the business by assessing the risk along with the management techniques of the same.
3. Assisting you in preparing the application form to be submitted to the regulatory department
4. Providing proper guidance while selecting the strategic locations of warehouse/s and/or offices.
5. Providing VAT Compliance and Advisory support for VAT Registration, VAT Implementation, VAT Return Filing
6. Tax restructuring
7. Provisions for Accounting & Book Keeping services
8. Provisions for Accounting & Financial Reporting
9. Provisions for Audit & Assurance Services
10. Preparation of liquidation report and PRO service support for liquidation
With the continuous support from our Chartered Accountants, you will get core business advice, qualitative solutions and unique experience that are specifically catered with your business needs.
BMS AUDITING & CONSULTING CO. Suite No.1001, 10th floor, Smart Height, Dubai, United Arab Emirates PH: +971 45516399 | MOB : +971 555569829 email@example.com | firstname.lastname@example.org