Cryptocurrencies and blockchain technology have gained significant attention and popularity in recent years. As the world embraces the digital revolution, many individuals and businesses are looking to participate in the crypto industry. If you’re interested in establishing a crypto-related business in Dubai, one of the most attractive options is to obtain a crypto license from the Dubai Multi Commodities Centre (DMCC). In this comprehensive guide, we will walk you through the process of obtaining a crypto license in DMCC, ensuring that you have all the information you need to navigate this exciting opportunity. With our guide, you no longer need to wonder how to get a crypto license in Dubai.
Understanding the DMCC Free Zone:
The DMCC is a renowned free zone in Dubai, recognized for its supportive business environment and infrastructure. It is home to a diverse range of industries, including commodities trading, technology, and now, cryptocurrency. The DMCC offers a dedicated framework for crypto-related businesses, allowing entrepreneurs and investors to set up and operate their ventures confidently.
You must meet certain eligibility criteria to obtain crypto license in DMCC. These include:
Business Type: DMCC allows three types of crypto licenses: crypto trading, crypto asset management, and crypto asset custody.
Corporate Structure: You can apply as a new or existing DMCC member company looking to expand into crypto-related activities.
Capital Requirements: A new company’s minimum share capital requirement is AED 50,000 (approximately $13,600), while existing DMCC member companies must maintain their current share capital.
Background Checks: The DMCC conducts thorough background checks on all shareholders, directors, and beneficial owners to ensure compliance and integrity.
Submitting the Application: Prepare the necessary documents, including a business plan, audited financial statements, and a compliance manual. Submit your application and supporting documents to the DMCC.
Initial Review: The DMCC will review your application and conduct due diligence. This process may involve additional document requests or clarifications.
Approval and Licensing: Once your application is approved, you will receive an approval letter from the DMCC. Pay the required fees, sign the license agreement, and receive your crypto license.
As a crypto licensee in DMCC, you must adhere to strict compliance requirements to ensure regulatory compliance and maintain the reputation of the free zone. These requirements include:
AML and KYC: Implement robust anti-money laundering (AML) and know-your-customer (KYC) procedures to prevent money laundering and illicit activities.
Reporting and Auditing: Prepare and submit regular financial statements, conduct annual audits, and comply with reporting obligations set by the DMCC.
Data Protection: Safeguard customer data and privacy by implementing robust data protection measures in accordance with applicable regulations.
Benefits of a Crypto License in DMCC:
Obtaining a crypto license in DMCC offers numerous benefits for entrepreneurs and investors:
Regulatory Framework: DMCC provides a regulated and supportive environment for crypto businesses, instilling confidence in investors and customers.
Networking Opportunities: Benefit from networking events, seminars, and workshops conducted by DMCC to connect with industry professionals and expand your business network.
Infrastructure and Facilities: Access state-of-the-art infrastructure, modern office spaces, and a range of business services offered by DMCC, facilitating the growth and success of your crypto venture.
Strategic Location: Dubai’s strategic location at the crossroads of Europe, Asia, and Africa provides easy access to global markets and enhances your business reach.
Tax Advantages: Enjoy tax exemptions on corporate and personal income tax, customs duties, and capital gains tax within the DMCC free zone.
Navigating the crypto licensing process in DMCC can be a rewarding endeavor for individuals and businesses seeking to enter the crypto industry. You can confidently embark on this exciting opportunity by understanding the eligibility criteria, the application process, compliance requirements, and the benefits of a crypto license. With its supportive business environment and regulatory framework, DMCC offers a platform for innovation and growth in the crypto space. Take the leap and explore the endless possibilities of establishing your crypto-related business in DMCC, at the heart of Dubai’s thriving business landscape.
About Smart Zone
Smart Zone is a one-stop business setup and consulting service provider in Dubai. Our experienced team provides comprehensive advice, support, and guidance to help businesses navigate the complexities of setting up their venture in DMCC. Get in touch with us today to learn more about how we can help you take your crypto business to the next level. Eid al Adha is a festive and significant occasion celebrated by Muslims across the globe. It signifies the culmination of the Hajj pilgrimage and honours the steadfastness of Prophet Ibrahim (Abraham) in his willingness to sacrifice his son as an act of devoutness to God. This auspicious time brings families and friends together to partake in prayer, engage in gift exchanges, and savour delectable feasts, fostering a sense of unity and joyous celebration. It is also an ideal time for a short getaway, and if you’re in Dubai, you’re in luck! Here are five spectacular destinations within four hours of Dubai that require no visa, perfect for your Eid al Adha holidays.
Doha, Qatar: (1 hour 5m flight)
Located just a short one-hour flight away from Dubai, Doha, the capital city of Qatar, is a vibrant destination that seamlessly blends modernity with tradition. Experience the stunning architecture of the Museum of Islamic Art, stroll along the Corniche promenade, or explore the bustling Souq Waqif, which offers a taste of traditional Arabian culture. With its luxury hotels, high-end shopping malls, and exquisite dining options, Doha provides a luxurious Eid getaway experience.
Salalah, Oman: (2 hour 50m flight)
One of the most popular holiday destinations close to Dubai, Salalah is a coastal city in southern Oman. Salalah is known for its lush green landscapes, serene beaches, and pleasant weather during Eid ul Adha. Explore the stunning Al Mughsail Beach with its unique blowholes, take a dip in the crystal-clear waters of Wadi Darbat, or immerse yourself in the beauty of the annual Khareef (monsoon) season when the region transforms into a green paradise. Salalah offers a tranquil and refreshing Eid getaway experience.
Yerevan, Armenia: (3 hour flight)
For a unique and culturally rich Eid al Adha experience, consider visiting Yerevan, the capital city of Armenia. The perfect choice for your Eid al Adha vacation from Dubai, Yerevan offers a blend of ancient history and modern charm. Explore the city’s rich architectural heritage, visit iconic landmarks such as the Armenian Genocide Memorial or the ancient Garni Temple, and indulge in the local cuisine. Yerevan’s warm hospitality, breathtaking landscapes, and vibrant cultural scene make it an unforgettable Eid destination.
Tbilisi, Georgia: (3 hours 20m flight)
Discover the charm of Tbilisi, Georgia’s capital city, within a three-hour flight from Dubai. Tbilisi combines a fascinating history with a lively atmosphere and breathtaking landscapes. Enjoy visa-free travel from Dubai, explore the cobblestone streets of the Old Town, marvel at the Narikala Fortress, or relax in the soothing sulfur baths. Don’t miss sampling Georgian cuisine and experiencing the country’s renowned wine culture. Tbilisi offers a perfect blend of history, culture, and natural beauty for an unforgettable Eid getaway.
Baku, Azerbaijan: (2 hours 55m flight)
Baku, the capital city of Azerbaijan, is a vibrant destination located just a three-hour flight away from Dubai. With its unique mix of modern architecture and ancient landmarks, Baku offers a captivating experience. Explore the UNESCO-listed Old City, visit the iconic Flame Towers, or stroll along the picturesque Baku Boulevard. Experience the local culture and cuisine, and don’t forget to indulge in a traditional Azerbaijani tea ceremony. Baku’s rich heritage, cosmopolitan atmosphere, and stunning views of the Caspian Sea make it an ideal Eid getaway destination.
These five spectacular destinations within four hours of Dubai provide a range of experiences for your Eid al Adha holiday. Whether you’re seeking cultural immersion, natural beauty, or a luxurious escape, these destinations offer it all. Best of all, no visa is required, making your travel planning hassle-free. So, pack your bags, embrace the spirit of Eid, and embark on a memorable journey to one of these enchanting destinations.
At SmartZone, leading business setup consultants in Dubai, we wish you a very happy and safe Eid al Adha in advance! Enjoy your getaway! If you’re planning to move to Dubai, UAE as an investor, then it’s important that you understand the policies and procedures for sponsoring family members too. The regulations in United Arab Emirates (UAE) are stringent and must be met before any applications can be submitted for sponsorship. It is often confusing and overwhelming trying to understand the rules of what is needed to sponsor your family or business partners when moving to the UAE. This blog post will review what needs to be done and the latest updated policies available from UAE immigration offices. We have compiled this information and condensed it into a comprehensive guide so that all investors looking at transferring themselves or their families over can easily comprehend the requirements to ensure everyone arrives safely in Dubai!
Strategic location: Dubai is strategically positioned between Europe, Asia, and Africa, making it an ideal hub for international trade and commerce.
Tax advantages: One of the main benefits is the absence of corporate and personal income taxes, allowing businesses to retain more profits.
World-class infrastructure: Dubai boasts state-of-the-art infrastructure, including modern airports, ports, roads, and communication systems, facilitating efficient business operations.
Business-friendly regulations: The city offers a favourable business environment with minimal bureaucracy and streamlined processes for setting up and running a company.
Access to global markets: Dubai provides access to a vast consumer market in the Middle East and beyond, enabling businesses to expand their reach.
Talent pool: The city attracts skilled professionals from around the world, offering a diverse and highly qualified workforce.
Safety and stability: Dubai offers political stability, safety, and a low crime rate, providing a secure environment for businesses and investors.
Innovation and technology: The city embraces innovation and invests in cutting-edge technologies, attracting businesses at the forefront of various industries.
Networking opportunities: Dubai hosts numerous international conferences, exhibitions, and events, facilitating networking and business collaborations.
What is the Dubai Investor Visa?
The Dubai Investor Visa is a type of visa that allows foreign investors to take advantage of the UAE’s booming economy and establish their businesses in Dubai. This visa requires an investment of at least AED 1 million into a new or existing business to qualify for residence in the UAE. The applicant can be either a sole investor, partner, director, or shareholder. It is also important to note that this visa needs to be renewed on an annual basis.
Investor Visa Categories
There are four different categories under which one can obtain the Investor Visa. These include:
Visa by Investment in Residential Property
Visa by Investment in a Company
Long-Term Residence Visa
Updated Policies for Sponsoring a Family in Dubai as an Investor or Business Owner
Investing at least AED 1 million into a newly established or existing company will allow you to sponsor your family members.
To be eligible for family sponsorship, the investor must prove that they have sufficient financial resources and accommodation.
The sponsor is also responsible for proving that their dependents will not become a public burden during their stay in the UAE.
All documents relating to your business or investment must be submitted along with the application form.
We hope this guide has provided you with clear and concise information regarding the updated policies for sponsoring your family as an investor or business owner after starting a business in Dubai. However, if you are still unsure about any of these requirements, then it is always best to seek professional advice from a qualified lawyer or immigration consultant to ensure that you are compliant with all laws and regulations set out by UAE government authorities.At Smart Zone, we are dedicated to helping all our clients in navigating the UAE’s complex immigration laws and regulations. Our team of experienced lawyers can provide you with the necessary legal advice and assistance for relocation, sponsorship, or obtaining a visa. To learn more about what we do and how we can help you, please don’t hesitate to contact us today.The United Arab Emirates (UAE) has introduced a game-changing initiative, the Golden Visa, offering long-term residency to qualified individuals and their families. This program has undergone recent updates and expansions, making it even more attractive for foreign investors, entrepreneurs, and talented professionals. In this blog, we will explore the latest rules of the UAE Golden Visa and how it opens up new opportunities for those seeking to establish their lives and careers in this dynamic nation.
What is the UAE Golden Visa?
The UAE Golden Visa is a comprehensive long-term residency program designed to provide qualified individuals and their families with an array of benefits. With a validity of up to 10 years, this visa enables recipients to enjoy the privileges of living, working, owning property, and conducting business in the UAE. In addition, compared to traditional visas, the Golden Visa offers numerous advantages, such as relaxed residency criteria, attractive tax incentives, access to top-notch healthcare and education services, and a host of other opportunities that contribute to an enhanced quality of life.
Updated Requirements As Per the Latest UAE Golden Visa Rules
The requirements for obtaining a Golden visa vary depending on the type of residence, such as an investor, talent, entrepreneur, etc.
Investors in public investments
Investing in an investment fund can lead to obtaining a Golden Visa for 10 years without requiring a sponsor. However, certain conditions apply.The investor needs to provide a letter from a UAE-accredited investment fund stating that they have deposited AED 2 million, or:
Provide a valid commercial or industrial license and a memorandum of association confirming your capital is over AED 2 million.
Submit a letter from the Federal Tax Authority stating that the investor pays a minimum of AED 250,000 to the government every year.
Real estate investors
If you own one or multiple properties, you may qualify for a Golden visa that is valid for 5 years and can be renewed under the same conditions without a sponsor. The conditions include:
Submission of a letter from the land department of the emirate confirming your ownership of one or more properties valued at a minimum of 2 million dirhams.
Provision of documentation demonstrating that the property was purchased using a loan from one of the local banks approved by the relevant local authority.
Entrepreneurs have the opportunity to apply for and acquire a UAE Golden Visa by fulfilling one or more of the following conditions:
A UAE-based auditor stated that the value of the project stands at a minimum of 500,000 dirhams
The authorities in the emirate verify that the project is either technically advanced or has a futuristic aspect to it.
An officially recognized business incubator in the UAE that can help set up the proposed business activity in the country.
Outstanding specialized talents
Individuals possessing exceptional talents, including inventors, innovators, and individuals excelling in critical domains such as culture, art, sports, and digital technology, can apply for and acquire a UAE Golden Visa.To obtain the visa, a recommendation or approval from a federal or local government entity is required, highlighting the exceptional talent and contributions of the applicant. This visa category recognizes and welcomes individuals who bring significant value to the UAE through their extraordinary abilities, promoting a diverse and vibrant society.
Doctors and scientists
Doctors who have obtained an approval letter from the Ministry of Health and Prevention in the UAE, permitting them to practice the medical profession.
Scientists present either a letter of recommendation from the Emirates Council of Scientists or a letter from the Secretariat of the Mohammed bin Rashid Medal for Scientific Excellence. The letter should verify that they have been honoured with the Medal of Scientific Excellence.
A salary certificate that states a minimum salary of AED 30,000.
A copy of the applicant’s bachelor’s degree (minimum) that the Ministry of Education has accredited.
A valid work contract.
A letter of experience that confirms the applicant held the same position for at least 5 years.
Outstanding students and high achievers within the UAE’s secondary school system, as well as exceptional graduates from local universities, have the opportunity to apply for the Golden Visa. Additionally, this eligibility extends to high achievers graduating from the top 100 universities worldwide.However, certain stipulations must be met, including considerations of academic performance, cumulative grade average, year of graduation, and university classification.Students with a GPA of 3.8 or higher from renowned universities worldwide are eligible to apply for the Golden Visa. Similarly, high school students who have attained an average rate of at least 95 percent in their high school certificate from public or private schools are also eligible.
Specialists in Engineering and Science
Under this category, the applicant must provide a certified copy of a Bachelor’s or Master’s degree issued by the Ministry of Education and a copy of a work contract.
Pioneers of humanitarian work
Humanitarian pioneers are eligible to apply for the prestigious UAE Golden Visa. These pioneers are considered distinguished members of international or regional charitable organizations and valued members of associations dedicated to public benefit.Furthermore, recipients of awards in the humanitarian and charitable sectors are recognized as eligible for the Golden Visa. Additionally, acknowledged volunteers who actively contribute to humanitarian, crisis, and charitable efforts are also eligible for this special visa.
Frontline healthcare workers, including nurses, medical assistants, lab technicians, and pharmacologists, who have exhibited exceptional dedication and contributions during challenging times such as the COVID-19 pandemic, may qualify for a Golden Visa. The eligibility criteria include obtaining a recommendation from a competent authority acknowledging their commendable efforts.
About Smart Zone
At Smart Zone, we understand the complexities of each immigration matter and are here to help you with your Golden Visa application. Contact us today, and our team of experienced professionals will gladly assist you with all your visa needs.
Setting Up A Corporate UAE Bank Account
Doing business in the United Arab Emirates? You’ll need a corporate bank account to get started! This guide will walk you through the process of setting up your new account, including what documents you’ll need and how to choose the right bank. Let’s get started!
How to get started?
The first step in setting up your business bank account in the UAE is to choose the right bank. There are many factors to consider when making this decision, including the type of business you’re running and your specific banking needs. Do some research and compare different banks to find the one that’s best for you.
Once you’ve chosen a bank, it’s time to gather the required documents. You’ll need to provide proof of your company’s incorporation, as well as documents showing your share capital and ownership structure. You’ll also need passport copies for all shareholders and directors.
Now it’s time to open your account! The process will differ slightly depending on the bank you’ve chosen, but generally you’ll need to fill out an application form and submit all of the required documents. Once your application has been approved, you’ll be able to start using your account.
Documents required to open a business bank account in the UAE
Valid Trade License
Certificate of Incorporation / Registration
Company Memorandum & Articles of Association
Board Resolution authorizing a Company Officer to open the account (if applicable)
Passport copies for shareholders and authorized signatories (if applicable)
There are additional banking documents that will be required and this will depend on the bank, corporate structure and business activities your company performs.
Additional documents that maybe required to open your corporate bank account are inclusive of:
Copies of contracts and agreements
Invoices from supplier or receipts issued to customers
Reference letters and so forth
How much does it cost?
The cost of setting up a corporate bank account in the UAE can vary depending on the bank and type of account you choose. Some banks may require a minimum deposit, while others may charge monthly or annual fees. This balance begins at 50,000 AED and goes up to 500,000 AED depending on which UAE bank you apply to. For example, for Emirates NBD, it starts from 50,000 AED. If you do not maintain the minimum monthly average balance, a penalty of 250 AED per month applies. Be sure to compare different banks and accounts to find the best deal for your company.
Now that you know how to set up a corporate UAE bank account, it’s time to get started! Follow the steps outlined in this guide and you’ll be up and running in no time. For a more smooth and hassle-free experience, connect with the experts at Smart Zone!
The Golden Visa program was introduced in the UAE in 2019. The program was initially aimed at attracting investors from around the world, but recent changes have expanded the scheme, and have now made it possible for individuals from varied backgrounds to obtain extended residency and receive multiple benefits if they fulfill certain criteria.
If you are looking to get a golden visa of the UAE, then you will need to know the latest process and requirements. In this post, we will provide an up-to-date overview of what is required for a golden visa in UAE. So, if you are interested in getting a UAE golden visa, be sure to read this post!
Information about the Golden Visa of UAE
The Golden Visa of UAE is a residency permit that allows foreign nationals to live and work in the country. It is basically a renewable residence visa with a 10 year validity. There are many benefits to having a golden visa, including access to quality healthcare and education, as well as the ability to own property and start a business in UAE.
To be eligible for a golden visa of the UAE, you must meet the following requirements:
You must be at least 21 years old
You must have a valid passport from your country of citizenship
You must have proof of financial stability, such as bank statements or income tax returns
You must have health insurance that covers you in UAE
You must have a clean criminal record
If you meet all the above requirements, then you can begin the application process for a golden visa in UAE.
Who can apply for a UAE Golden Visa?
The following foreign nationals can apply for a UAE golden visa:
Professionals such as doctors, engineers, and scientists
The United Arab Emirates offers several options for foreign nationals who wish to invest in property. If you meet any of the following requirements, you may qualify for a Golden visa:
If you choose to buy a property for at least AED two million
If you acquire a loan from approved local banks and purchase a property
Buy at least one off-plan properties from authorized local real estate firms in the UAE worth a minimum of AED 2 million.
It is possible for entrepreneurs to apply for a Golden Visa by fulfilling at least one of the conditions mentioned below:
Having a business that generates annual revenues of at least AED one million and is registered as a small or medium-sized enterprise in the UAE
Obtaining approval for a new business concept from an official business incubator, such as the Ministry of Economy or other competent local authorities.
Establishing an entrepreneurial project that has been sold for a minimum of AED 7 million.
The Golden visa is available to researchers and scientists with outstanding achievements in their field. The Emirates Scientists Council must offer a recommendation for this visa. A Master’s degree or PhD in a range of fields including engineering, technology, life science, or natural science from the world’s best institutions, as well as significant research accomplishments, is mandatory.
Golden visas are available to innovators, inventors and those who hold exceptional talents in vital disciplines such as art, culture, digital technology or sports regardless of their qualification or job status. A letter of recommendation or permission from a federal or local government department is required for this visa.
Outstanding students and graduates
The Golden visa is available to high-performing children in secondary schools in the UAE, as well as outstanding graduates from UAE universities and the finest 100 institutions worldwide. The most important criteria are academic performance/cumulative average, year of graduation, and classification of the university degree.
Professionals or highly trained specialists in a wide range of fields, including medicine, science and engineering, information technology, business and administration, education, law, culture and social sciences may apply for the Golden Visa if they:
Currently employed in the United Arab Emirates
Hold a first or second occupational level as classified by the Ministry of Human Resources and Emiratisation
Possess at least a bachelor’s degree or equivalent
Earn a minimum salary AED 30,000 per month
If you need help with the Golden Visa process or requirements in UAE, please contact us at Smart Zone and we will be happy to assist you.
Excellent business opportunities, good purchasing power, modern infrastructure, and unique tax strategies have made Dubai one of the most attractive business hubs around the world. Dubai is one of the best places to start small businesses or startups and run branches of well-established infrastructures. The city is now populated mainly by the working-class and is being visited by thousands of tourists every year.
Dubai has two areas for conducting business in: i) Dubai free zone that enables foreign investors to establish their 100% owned business and offers unique tax-free opportunities, ii) Dubai mainland, which is a popular zone for conducting business locally in the whole UAE and establish strong local ties.
For business in Dubai mainland, there are a few requirements and steps to take before obtaining the final approval:
Business Activities: determining the nature of the business is the first and obligatory for forming any business in Dubai. The decided business should then be approved and fall under one of the Department of Economic Development (DED).
Office or Business Location: this is one of the main factors that decide the success of a business. Determining the place of the business is also mandatory in the process of legally registering the business.
Legal Structure: there are various legal business forms that companies can be established under. The legal structure of a business also depends on the nature of the business. This is why determining the type of the business carefully is of high importance.
Local Sponsor or Local Service Agent: this is applicable for those businesses set up either in the mainland (not a free zone in which a business can be owned 100% by a foreign investor) or fall under categories that necessitate partnering with a local partner.
Other Documents: the documents required for establishing a business are usually straightforward to prepare. They are mainly the visas or passports of the shareholders, the sponsor’s Emirati ID, MoA, contract draft, necessary trade licenses, etc.
Once all the steps above are followed, registering a company or business should not take longer than a week by the DED.
With the right guidance from our dedicated Business Setup Advisors and quick turnaround time, Smart Zone can setup your Dubai Mainland business on the same day.
We will assist with all your trade license requirements, PRO services and take care of the visa procedures for yourself, your employers and your family members.
The very first step for establishing a business is assessing the preliminary business establishment costs. The zero company and personal income tax policy enforced in Dubai has attracted many foreign investors’ attention. However, there are costs for obtaining a trade license, and business registration should be evaluated in advance.
There are two options for selecting an area for establishing a business in Dubai: i) Dubai free zone, and the more popular ii) Dubai mainland areas. The aforementioned costs regarding registering a business thus are subject to the selected area.
There are few steps to take for setting up a business in Dubai mainland:
Initial approval from the Department of Economic Development (DED)
This is a one-time cost issued by DED and amounts to AED 110. This initial approval from DED allows foreign entrepreneurs to start their business 120 days from the license issuance, while the other documents are under investigation by DED.
Approval of trade name
This is another one-time cost and ranges between AED 700 – 900 if the name selected for the business is Arabic, and can increase to AED 3,000 for non-Arabic names.
This is a monthly charge, and as a standard, it is AED 80 per sq. feet in Dubai mainland. Renting a physical space for conducting a business is mandatory in Dubai mainland as DED considers this space and the documents associated with this space for approving the legitimacy and registration of the business set up.
Attestation of Memorandum of Association (MoA)
An MoA needs to be drafted in a law firm or any other legal entity eligible for writing this piece of document. This MoA needs to be approved by all shareholders and be submitted to the DED. As this process needs to be done only once, the cost associated with it (AED 400) is also a one-time cost.
Drafting of contract and court agreement attestation
This draft also needs to be approved by all shareholders and is a one-time payment amounting to AED 1,000 – AED 2,000 + AED 300 for preparations performed by a legal firm. The contract draft and court agreement both need to be written in Arabic and English.
Registration with Ministry of Economy
This step is necessary for the official registration of the business in the UAE and is a one-time cost of AED 3,000. Once this payment is made, the business becomes officially legal.
Trade license fee
There are various trade licenses available in the UAE, and based on the nature of the business, the license costs vary. The first time the license is issued, its cost is around AED 15,00, while the license’s annual renewal is much cheaper, i.e., around AED 3,000.
Commercial license fee
Plus trade license, a commercial license is mandatory for operating a business in the UAE. This license should be renewed annually and costs AED 700 (same for the renewal).
Fee for Chamber of Commerce
The costs associated with this fee vary based on whether the business entity is manufacture-related or industrial. On average, the annual fee charged by the Chamber of Commerce is AED 1,200.
Fee for improvement of commercial services
This is a fee charged by the government for the services they offer in the whole process and is a one-time payment of AED 400.
Fee for administrative services and waste collection
This fee is charged by the DED and is self-explanatory. This is a one-time fee, costing AED 1,050.
This fee is charged by the government and is similar to paying annual tax. Usually, this fee constitutes the office rent, 5% of the rent for shops, and 20% of the rent for warehouses. Thus, this fee is subject to variations, but approximately, it can amount to an annual cost of AED 1,250.
Smart Zone‘s business setup experts can guide you from documentation to application and corporate bank opening hassle-free. Call +97155 233 0077 today.
E-commerce business is booming worldwide, and the UAE, as one of the world’s most modern business hubs that have been thriving quite fast in the last decade, is no exception to this trend. Online shopping has become a big part of almost every business today and is changing the business model as the number of e-shoppers is constantly increasing. The increasing demand for an e-commerce license in the UAE proves that online trading will grow even further in the UAE.
Process of applying for an e-commerce license
There are a few steps for registering an e-commerce license in the UAE:
Selecting the business jurisdiction: there are mainly two business jurisdictions in the UAE, i) free zone and ii) mainland. Before applying for the e-commerce license, this jurisdiction should be selected. The e-commerce license shall be issued by the corresponding authorities then.
Selecting the business’ legal structure: the most common legal forms in the UAE are either an LLC, company branch, representative office, or sole establishment. This step is essential for registering the e-commerce license.
Registering the trade name: there are terms and regulations for selecting a trade name. Once selected, the corresponding authorities will issue the initial approval stating that the chosen name is available and meets the set criteria.
Submitting the e-commerce application: this process depends on the selected jurisdiction. For the mainland, the Department of Economic Development (DED) will issue the license, while in free zones, the free zone authorities directly should be approached for registering the license.
Required documents for registering the e-commerce license
The required documents for registering the license are as follows:
Passport or visa copies of all shareholders
Passports or Emirates ID of sponsors and local partners
Local sponsor or local service agreement
NOC from the relevant authority
Draft of the MoA approved by all shareholders
Once the application is completed, the main applicant can apply for their UAE residence visa and a limited number of visas for their employees (this number depends on the size, location, and nature of the business). The visa application process is rather straightforward, even for the main applicant’s dependents. If the intended business also involves trading physical goods, entrepreneurs also need to rent a warehouse. This can be either opted for a third party logistics or be built independently by the entrepreneurs. The last step to take before running a business in the UAE is opening a corporate bank account. Every bank in the UAE have their own regulations and criteria for opening a bank account, and they offer various services suitable for specialized business fields. Thus, it is important to choose them carefully. For a smooth e-commerce business setup in Dubai Mainland or Free Zone, call +97155 233 0077 and talk to one of Smart Zone‘s business setup experts.
The UAE is one of the world’s most famous business hubs for its excellent tax policies and vibrant and clean business environment. Setting up a business, be it expanding a business or starting it from scratch, has proved to be cost-effective and profitable for foreign investors. The question of the cheapest trade license option in the UAE can be broken down into many questions and depends on many factors. The UAE has many established free zones, and each of them has its cons and pros for starting a business. To emphasize this fact further, the UAE’s free zones are divided based on specialized business activities. With this in mind, it is best to first look for the free zone that suits the nature of the business best and then apply for the corresponding trade license from the selected free zone authorities. However, here is a list of the cheapest trade licenses in the UAE, regardless of the limitations on various businesses in every free zone:
Sharjah Media City (Shams Free Zone) – The free zone is currently running a promotion of AED 5,750 for a limited time only. This is open to all media and e-commerce activities. The timeline for Shams Free Zone license setup normally takes less than a week.
International Free Zone Authority, Fujairah (IFZA) – IFZA license fees start at AED 11,500. This price does not include visa costs or any consultancy services. A zero-visa trading license starts at AED 13,500 in IFZA.
Ajman Free Zone – Starting from AED 11,000, a foreign entrepreneur can already get a Free Zone license. The timeline for the whole business setup normally takes only two business days. This is also open to all business activities. Five similar activities can be conducted with the same license.
Ras Al Khaimah Economic Free Zone (RAKEZ) – The minimum cost to start a commercial business in RAKEZ is AED 14,800. Entrepreneurs can conduct five activities under the same license they apply for (if the businesses are suitably connected). Any additional activity belonging to the same category will cost around AED 1,000. Two different activities from different categories will cost AED 3,000.
Benefits of Operating a Business in a UAE Free Zone
Fast and easy setup
No personal presence requirement
Open to a wide range of business activities
No NOC requirement – this is of particular interest for persons already employed by other companies, small businesses, and solo entrepreneurs
0% corporate and personal tax
100% company ownership
Full range of business activities permitted
100% repatriation of capital and profits
No currency restrictions
100% import and export tax exemption within the free zone
One point which should be considered in general about starting a business in the UAE is that there are more than thirty free zones in the UAE that offer ‘affordable’ trade licenses for foreign entrepreneurs. This implies that, depending on the nature of the business, running a business in the UAE is relatively simple and straightforward.
Let our business setup experts help you get started with your company formation in the UAE. Call +97155 233 0077 or email email@example.com today.