WHY INCORPORATE OFFSHORE ?

1. Low  Taxation:

 Most offshore companies pay no local taxes on the income derived from offshore operations, i.e. from activities outside of the jurisdiction of company formation. These offshore companies include Dubai Offshore, Belize IBC, BVI, etc

Companies in some on-shore jurisdictions, where we provide incorporation services as well, also have comparatively low taxation. For instance, a Dubai offshore pays no taxes on profits from operations generated outside of UAE. At the same time, onshore companies must comply with all relevant filing requirements, which are often costly. 

2. Anonymity: 

Registrars in most offshore jurisdictions do not disclose information about directors, shareholders and beneficiaries of offshore IBC companies. Thus, the underlying principal may carry out all relevant transactions in the name of an offshore company while remaining anonymous. It is important to note that this applies to legitimate operations only. 

3. Asset protection: 

In the international business context, it is usually the laws of the jurisdiction of incorporation that are applied, rather than those, where the company is being sued. Many offshore jurisdictions are renown for their favourable asset protection laws. Complementing an offshore company with an offshore banking facilities, protects company’s assets even further. 

4. Ease of Reporting: 

The compliance reporting requirements for offshore companies are limited, especially in comparison to companies, registered in onshore jurisdictions. Most offshore IBC companies are not required to file annual reports and accounts in the jurisdiction of the company formation. Instead, local authorities charge a flat annual licence fee, which is insignificant in comparison to reporting expenses and taxes in onshore jurisdictions. 

5. Operating Costs and Fees: 

With limited reporting requirements, offshore companies generally have lower maintenance and operating fees. The cost of compliance, preparation of accounts and auditing in on-shore countries is often considerable while offshore companies save on these particular expenses.

Registered office fees are also significantly lower than buying or renting premises in onshore jurisdictions. A virtual office could be also set up at the registered address of the company to further lower the effective fees of running one's business. 

Kind Regards,

Vithul V Murali 
Al Zaeim Corporate Services 
Dubai Mobile : +971 50 55 73 538

Email  :Vithul@a2zconsultus.com

Skype : Vithul.murali

DEPARTMENT OF ECONOMIC DEVELOPMENT ISSUES 16,688 LICENSES IN 2012

Dubai, 16 February 2013: Key economic sectors and economic activity in Dubai remained stable and growing in 2012, with the Department of Economic Development (DED) issuing 16,688 business licenses during the year, a 16 per cent increase over the 14,430 licenses issued in 2011. The tourism sector, at 56 per cent, accounted for the major share of licenses in 2012 followed by the professional (21%) commercial (14%) and industrial (13%) sectors compared to 2011.

“Confidence in Dubai is rising with the emirate emphasising on overall competitiveness and sustained investment in infrastructure producing rich returns. New project pipelines and growing links to new markets are attracting more investors who are leveraging the various business set up and growth options in Dubai,” commented His Excellency Sami Al Qamzi, Director General of the Department of Economic Development.

“The business registration and licensing activity in 2012 mirrored an increasingly positive investor sentiment and expectations. While existing businesses in Dubai are venturing further out and spreading their wings, a growing number of investors are also sensing the ideal conditions to step forward,” added Mohammed Shaal Al Saadi, Chief Executive Officer of Business Registration & Licensing (BRL) sector in DED.

The total number of amended licenses in 2012 was 67,056, up 14 per cent from 58,881 in 2011 while the total number of renewed licenses grew three per cent to 101,766, as against 98,981 during the previous year. The total number of transactions rose 16 per cent to 589,721 in 2012, from 506,792 in 2011.

The total number of commercial permits issued in 2012 was 29,266, a 21 per cent increase over 2011, while the total number of reserved trade names reached 65,089, a 24 per cent increase.

The number of licenses issued to companies according to legal status and for investing in Dubai reached 16,688 in 2012 compared to 14,430 in 2011. Limited liability companies topped the list of companies at 10,673 and a growth rate of 18 per cent o 2011, followed by Sole proprietorships (5,048), which grew14 per cent compared to 2011. There was also a 100 per cent increase in Partnership firms, from six companies to 12.

Among the 81 licenses issued to foreign investors in 2012, the top 10 nationalities accounted for 54. Kuwaiti nationals topped the list with 11 licences in 2012, followed by US investors (9), Indians (8) and Saudis (5).

The top ten business activities in Dubai accounted for 13,840 – 24 per cent – of the 56,914 activities licensed in 2012, compared to a share of 13,149 in a total of 52,949 licensed activities in 2011. ‘General trade’ led the list of the top 10 licensed activities in the commercial category with 2,198 licences, compared to 1,890 licenses in 2011. Dyes & paints; carpentry and flooring & tiling were the other business activities that showed significant growth last year.

Thanks

Vithul V Murali 
Al Zaeim Corporate Services 
Dubai Mobile : +971 50 55 73 538

Email  :Vithul@a2zconsultus.com

Skype : Vithul.murali

Courtesy : Dubaided

TRADE / SERVICE LICENSE FOR UAE NATIONALS - INTLAQ PROGRAM

Intlaq Program

‘Intelaq’ is an innovative program launched in the UAE to assist UAE nationals residing in Dubai to take their first step into the world of business. Intelaq allows for different business activities which can be worked on from home.

The program aims at supporting UAE Nationals setting up their business, through a mechanism that will enhance the budding business chances of success. The program also provides operational assistance and business development.

To achieve this, The Mohammed Bin Rashid Establishment for SME Development is dedicated to incubating & providing the necessary support during the initial phase for a period of three years. The support offered to Entrepreneurs manifest in the form of licensing, training courses as well as financial, legal, marketing, technical support, and consultancy. This will enable participants in the Intelaq program to become independent project leaders, and capable of achieving development growth.

Few restrictions

Almost any professional, artisan or trade business can be home-based. We simply ask if it is reasonable for the kind of business you want to create to operate from a residential environment. Some restrictions are obvious: your business must not harm the environment or the health of any person, and should not generate noise or other irritants that may have a negative impact on your neighbours. Other than these kinds of limitations, you are free to operate any kind of small business.

Licensing

The Intelaq licence costs just AED 1060. You can have only one trade or professional Intelaq licence but can operate more than one related activity under the licence. If your business requires the approval of other government departments, you will have to pay the relevant fees.

An Intelaq licence does not allow you to hire staff. However, you are free to engage contractors if necessary, who work from other location

Vithul V Murali 
Al Zaeim Corporate Services 
Dubai Mobile : +971 50 55 73 538

Email  :Vithul@a2zconsultus.com

Skype : Vithul.murali

courtesy: dubaiSME

How FreeZone Companies in UAE can Do Business in Dubai

The Department of Economic Development (DED), Government of Dubai, has reiterated that no Free Zone company can conduct business within Dubai unless it has a DED license or chose to open a branch in Dubai in accordance with the conditions stated in Law No. 13 of 2011 on business registration and licensing in the Emirate.

Issued by His Highness Sheikh Mohammed Bin Rashid Al Maktoum, UAE Vice President and Prime Minister and Ruler of Dubai, the Law No.13 of 2011 is meant to enable Free Zone companies to open branches in Dubai while maintaining their presence in the Free Zone.

“Under no circumstances can a Free Zone company in Dubai operate outside its jurisdiction unless it has a branch licensed by DED. The same applies to companies in any Free Zone in the UAE. Alternatively, such companies may appoint an intermediary to sell their products or services in Dubai but the intermediary should have a DED license,” stated Mohammed Shael Al Saadi, Chief Executive Officer of Business Registration & Licensing (BRL) Sector, DED.

Al Saadi issued the clarification after reports in certain online media and subsequent enquiries on a Free Zone company in another emirate claiming to be a “virtual free zone” providing cheaper means of enabling “international entrepreneurs operate their businesses from a home or office anywhere in the UAE.”

“Recently, we have been receiving complaints from various Free Zone companies, most of them operating outside Dubai, that their licensors had promised they can do business in Dubai under the Free Zone license. We have clarified to them that there is an established route to doing business in Dubai,” Al Saadi explained.

“Through Law No.13 of 2011, Dubai has acknowledged the role of Free Zone companies in economic activity in the UAE and the leadership wants to allow such companies to contribute further to overall development. DED’s role is to enable businesses that choose Dubai as their base to benefit from a competitive environment and best practices,” Al Saadi added.

A Free Zone company can operate a branch in Dubai as long as it is active within the Free Zone but any termination of the Free Zone activity will reflect in the Dubai license as well.

The Law No. 13 also allows Free Zone companies that have no local partners to open branches in Dubai, provided such branch has a Local Service Agent on board. A Local Service Agent is a UAE national or UAE company who will sponsor employees for the Dubai branch of a Free Zone company at the Ministry of Labour. The Local Service agent will have no rights of voting or decision-making in the company.

Vithul V Murali 
Al Zaeim Corporate Services 
Dubai Mobile : +971 50 55 73 538

Email  :Vithul@a2zconsultus.com

Skype : Vithul.murali

gulfnews : Transfer of ownership

gulfnews : Transfer of ownership

DuBiotech - advancing the business of science

The Dubai Biotechnology and Research Park (DuBiotech) is a science and Business Park dedicated to the biotechnology and pharmaceutical industry and is modelled on the free zone concept. A member of Dubai Holding, DuBiotech will accommodate the biotechnology industry and facilitate government funded R&D. DuBiotech’s world-class infrastructure includes facilities and services for incubators, R&D labs, biotech-related educational and research institutions, manufacturing as well as organisations from supporting and convergent industries. The headquarters for DuBiotech will be based in the Bio Head Quarters Building while the laboratories will be located in the Nucleotide Complex. So far, 26 companies have signed up to be Business Partners of DuBiotech. The expected completion date of the first phase of the project is beginning of 2010. Why DuBiotech? Dubai’s flourishing international business community and strategic location serve as a gateway to the Middle East, Europe, Africa, the Indian Sub-continent and the CIS regions. DuBiotech aims to facilitate a rich environment for networking and collaboration within the biotech community by offering products such as office space, laboratory space, land area for manufacturing and R&D operations. The presence of hotels, retail, a hospital, schools, safety and security measures, and residential facilities ensure a quality lifestyle within the park. Our business partners benefit from 100% foreign ownership, repatriation of profits and tax-free operations. Fast-track administration with no red tape promises hassle-free company licensing and visa procedures. The regulatory environment DuBiotech regulations will be developed in accordance with international standards set by regulatory organizations such as the FDA, WHO and ICH which govern all sectors of the life sciences industry, including Biotech, Pharmaceutical, Diagnostic and Medical devices. DuBiotech is committed to developing and enforcing regulations for health & safety, GMP, GLP, quality control and assurance, waste management, environmental issues, and bioethics. The Foundation for Research and Innovation (FRI) - bridging research, education and industry Through its Foundation for Research and Innovation (FRI) and government support, DuBiotech will endeavour to fund research that focuses on medical, environmental and agricultural issues relevant to the Gulf region. Currently, DuBiotech is in the process of developing the grant policy, application process, and funding mechanisms of the FRI, where grant proposals will be reviewed on their scientific merit, economic impact, and potential regional benefits. Joint ventures between DuBiotech and biotechnology companies will be considered by DuBiotech’s science investment committee. DuBiotech partnerships In an effort to focus on developing world class R& D infrastructure and a dynamic business environment, DuBiotech has partnered with leading national and international institutions such as: RTI International, Frankfurt Biotechnology Innovation Centre (FIZ), CUH2A, DOHMS (Department of Health and Medical Services, Government of Dubai), UAE University and CERT (Centre of Excellence for Applied Research and Training). Companies interested in partnering with DuBiotech contact: info@dubiotech.com DuBiotech Offerings

• Executive offices: Fully furnished spacious office units with access to a business centre and meeting rooms. This product is ideal for international companies setting up in Dubai.
• Hot desks: Fully-equipped workstations each with a PC and high-speed internet connection. Perfect for start up companies with small operational requirements.
• Commercial office space: Core and shell office space in varying sizes.
• Laboratory space Shell laboratory modules designed to offer facilities such as DI/RO water, access to compressed gas lines and a vacuum system. These lab modules allow flexibility of design ranging from clean rooms to analytical operations. Fitted out laboratory modules provide a fume hood, wet and dry bench, and a small office area, in addition to facilities offered by the shell laboratory modules.
• Leasable Land Area Land available for various activities in dedicated zones such as manufacturing units, R&D facilities, training centres, warehousing facilities, headquarter buildings, etc.
• Park Facilities

• Park Infrastructure
  • Regulatory framework for operation of Biotechnology and Pharmaceutical companies and laboratories
  • On site district cooling system
  • Waste management system
  • Gas distribution network
  • Space for Vivarium
• Education: Academic / research institutions focusing on Biotechnology and Pharmaceutical Sciences.
• Training institutes to provide programs on continuing education
• Convention centre – to host regional and international events

Free Zone Benefits
DuBiotech is one of many Free Zones created in Dubai over the past decade. Companies operating from DuBiotech enjoy the same business benefits, which have been instrumental in the success of hundreds of companies that have established business operations in Dubai.

Companies operating from DuBiotech enjoy a one-stop-shop service experience, to facilitate ease of entry into the region and incorporation within this diverse and rapidly developing market, in addition to specific benefits that relate to the biotech industry.

As part of a Free Zone, DuBiotech partners also enjoy:

• 100% foreign ownership
• 100% repatriation of profits
• 100% tax free operations
• Single window for government services
• Long- term lease
• Partners can avail of easy company incorporation
• Special customs exemptions
• Fast-track visa services

Vithul V Murali 
Al Zaeim Corporate Services 
Dubai Mobile : +971 50 55 73 538

Email  :Vithul@a2zconsultus.com

Skype : Vithul.murali

Hamriyah Free Zone Sharjah - Your Gateway to Global Business

General Information Hamriyah Free Zone (HFZ) was established by an Emiri decree issued in November 12, 1995. HFZ is fast becoming one of the cornerstones of the United Arab Emirates industrial development. As the Next Generation Free Zone, Hamriyah Free Zone is ensuring that its management is flexible and dynamic besides being an investor oriented free zone. Hamriyah Free Zone is challenged to provide competitive incentives and unique opportunities to establish businesses in a tax free environment with full company ownership, exemptions from all commercial levies and repatriation of capital and profits. The free zone manages an area of approximately 22 million square meters of prime industrial and commercial land and a 14 meter deep water port which includes scope for expansion. Location Hamriyah Free Zone is located in the emirate of Sharjah. Sharjah is the only one of seven emirates with ports on the Arabian Gulf’s west and east coasts with direct access to the Indian Ocean, and an International Airport. Sharjah offers extensive transportation links to the Gulf states, Indian subcontinent and the emerging markets in Asian and African nations. These services are made possible by the "Sharjah link". Business Incentives * 100% Tax free environment * 100% Company ownership * 100% Exemption from all commercial levies * 100% Repatriation of capital and profits Additional Advantages * Land lease for 25 years renewed for similar period. * Availability of a 14 meter deep water port & a 7 meter deep inner harbor adjacent to it. * Pre-built warehouses and office units for lease. * Exclusively designed and furnished Executive office suites. * International Business Center with conferencing, internet and telecommunication facilities. * On-site accommodation for investor's personnel including recreation center and health club. * Highly developed infrastructure, telecommunications links and an access to three sea ports * Seaports on both coasts in addition to Sharjah International Airport. * Abundant and inexpensive energy (Electricity: $0.05 per KWA, Water: $8.17 per 1000 gallons) * Liberty for personnel recruitment and economical workforce. * Affordable cost of living. Through the Emiri Decree establishing the Hamriyah Free Zone, investors are guaranteed security of investment and full repatriation of profits and capital. Activities Allowed by the Free Zone Almost any activity is permitted by HFZ as long as the activity is environmentally friendly and in accordance with local rules. Though it is preferred, companies do not have to add value to their products. Investors can ship goods in and out of HFZ without necessarily adding any value at all. Facilities for lease (Units & Prices) Pre-built warehouses, factories and offices are available for investors to take advantage of, and for those who require tailor-made facilities there are industrial plots available for lease. Staff accommodation is also available onsite with a choice of senior or junior suites. Land for lease - Tailor made development The strategic plan for future development of HFZ’s prime property envisions the building of a range of industrial plots ranging in size from 5,000 sq. m. and upwards in multiples of 5,000 sq. m. These plots can be developed by investors to suit their exact requirements, and up to 60% of the land that is leased can be developed. Land Leasing Terms:Although the minimum lease term is five years, investors do have the option of leasing their plot of land for a maximum of 25 years, and then later renewing the same lease for a further 25 years. Lease rates are normally fixed for the first 5 years with a rent review at the end of this period. Warehouses, Factories and Office UnitsHFZ’s customer-oriented approach allows customers the freedom to develop their factories, office infrastructure, warehouses, and other buildings in a custom fit manner. However, for those investors who require ready-made, immediately available warehousing space, HFZ provides the investor with a choice of pre-built buildings in sizes of 614 m2, 416 m2 and 275 m2.

Vithul V Murali 
Al Zaeim Corporate Services 
Dubai Mobile : +971 50 55 73 538

Email  :Vithul@a2zconsultus.com

Skype : Vithul.murali