Third-Party Nominee Services in UAE

A system of legal contractual arrangements between directors/shareholders and a beneficial owner is known as nominee services. It is a situation in which someone other than the owner effectively administers the business and is thus designated as a director. The identical process is applied to both directors and stockholders. A Nominee Director, or ‘Third-Party’ Director, is a different person who is officially registered and acts as the offshore entity’s managing Director/Manager.

As the use of a Nominee Director has the legally binding power to operate as the only authority, third-party services are generally used to safeguard the owner’s confidentiality, which can be kept off the Company Registration documents (at least on paper).

The Nominee Director continues to act on the owner’s instructions and thus acts as a representative to sign all documents relating to the formation and management of the company on the owner’s behalf, ensuring that the beneficial owner remains off the documents and completely separate from the offshore corporate entity. 

Professional Management services include Third-Party Services, in which a managing business is hired to handle all contractual agreements, secretarial, legal, and day-to-day office needs.

Nominees are most commonly used in places where corporation law demands that director and shareholder registries be made public. There are various situations in which one does not wish to be viewed as being legally obligated to a corporation with which one has a relationship. Lawyers, doctors, and most other professionals are easily targeted by antagonist forces, political opponents, or other prying entities with a vested interest in exposing or bringing down another individual.

Nominee Director

A nominated director is a person who administers the activities of a corporation but does not do so at his or her discretion. The nominee Director follows the beneficial owner’s directions, which are legally binding under a previous agreement. The owner has the authority to fire or replace the nomination Director at any time, to override his authority or decision, and to grant the Director broad or limited powers that can be put into the UAE offshore company’s bylaws. A Power of Attorney can be granted to a nominee Director, allowing them to act on your behalf and open bank accounts, deeds, and sign paperwork, among other things.

Nominee Shareholder

A Nominee Shareholder is someone who holds shares on behalf of the company’s beneficial owner but has no legal control over them. According to a Trust agreement, the beneficial owner has ultimate responsibility for the nominated shareholder and can revoke, alter, or dismiss the shareholder at any moment. A nominee shareholder can be advantageous for offshore structures since it ensures complete confidentiality if the company’s owner desires to stay anonymous.

Offshore Professional Management Services

Using a completely adaptable and capable Professional Management entity to administer your non-controlled corporation gives you the highest level of assurance and protection. A Professional Management business’s expertise includes Third-Party Services, as the management firm is responsible for all contractual agreements, secretarial, legal, and day-to-day office-related needs.

Offshore Account Signatory Services

Offshore Account Signatory Services refers to a third-party expert who acts as a nominee for an IBC or offshore structure and is authorized to sign binding agreements on its behalf. These services are for people that want complete asset protection. By appointing a third-party signature and staying unlisted as a member, shareholder, or beneficiary on a company register, one can maintain complete independence from the organization on paper.

Risks and Vulnerability 

The risk of using formal nominee services is that beneficial ownership will be hidden. Extending the confirmation of the beneficial owner or creating relationships between firms that share nominations, nominee directors, and shareholders in business documents can obstruct law enforcement investigations. While the use of nominees is permitted in most jurisdictions, the nominee’s primary duty is to conceal or conceal the identity of the company’s or asset’s beneficial owner and director. A nominee can help companies get over corporate ownership constraints, hide ownership and control, get beyond court-ordered directorship restrictions, and get around rules controlling international business ownership and trade. When the numerous components of a corporate vehicle involve people from many different countries, these problems are amplified significantly. Criminals regularly construct, administer, operate, own, and operate enterprises in multiple countries, making it impossible for authorities in any one jurisdiction to obtain all necessary information about a firm. As a result, the practice’s long-term benefits are dubious, given the massive money laundering and terrorist financing concerns associated with it.

Transparency, Accountability & Enhanced Due diligence

In terms of the risk associated with the use of nominees, registrars should consider tightening control systems to stabilize nominee arrangements to promote beneficial ownership transparency, with the ultimate goal of combating corruption and money laundering, both of which have been known to hide behind nominees in the UAE and elsewhere. According to UAE law, nominees must explicitly explain themselves to the firm and its regulatory authorities. This mandatory self-identification is designed to promote transparency in the search for beneficial owners, as well as to penalize candidates who fail to appropriately disclose their status.

Registrars in the UAE can require that a natural or legal person carrying shares disclose if the person owns shares as a trustee or nominee on behalf of an individual, and if so, the person’s identity as well as any transaction instructions. In addition to maintaining all firms to report the existence of nominee shareholders and directors in their framework, registrars must take the following steps to limit the exploitation of nominee shareholders and directors:

• From a compliance policy standpoint, classify all organizations having nominee arrangements as high risk.
• Examine the reason for employing a nominee arrangement as well as the nature of it.
• Using a risk-based strategy, undertake enhanced due diligence.
• Examine the nominee contract.
• Make certain that all Ultimate Beneficial Owners (UBO) have been declared and validated.

Enhanced Due Diligence (EDD) is a KYC method that digs deeper into potential business ties and uncovers risks that Customer Due Diligence misses. The entire EDD process must be meticulously documented, and authorities must have immediate access to the data. The accuracy of data sources is crucial, and specialists are typically hired to evaluate data acquired about clients.

The following are examples of red signs that should prompt EDD:

• When it is obvious that a nominee is present, such as through a review of corporate documents, where the declared UBO is listed as the UBO of other licensees in the jurisdiction, and where the declared UBO is a CSP, both indicate the use of professional nominees, the entity fails to disclose nominee arrangements.
• The nominee arrangement’s purpose is unclear.
• Suspicion is raised for a nominee agreement
• Without any legitimate justification, family or close acquaintances operate as nominated shareholders or directors.
• PEPs, their colleagues, family members, or those with adverse findings are considered UBOs.
• The client is unwilling or unable to describe their company operations and corporate history, as well as refuses to collaborate or submit information and papers that are typically necessary for registration.
• Clients are forming businesses that look odd considering the age of the individual (this is particularly relevant for underage or very young customers)
• Companies that are listed under a name that implies they engage in activities or provide services that they do not.

Given how individuals have used and exploited nominee arrangements to hide their attention in legal entities and obscure true beneficial ownership, registrars must demonstrate their ability to collect and scrutinise all attempts to conceal true beneficial ownership, including through the use of nominees and complex corporate structures. As part of a remedial effort, all declared nominee arrangements should be examined, and the controls indicated above should be adopted as soon as practicable.

Starting a Food Delivery Service Business Setup in UAE

It is widely known that the UAE’s food delivery service and beverage Business Setup in UAE is massive, and it is only projected to grow. According to estimations, the F&B market is worth roughly AED 142 billion, with growth expected to reach AED 145 billion by 2021.

Meal delivery subscriptions are becoming increasingly popular among people and families, owing to their convenience. Furthermore, unlike their fast food and restaurant delivery equivalents, food delivery service give home-cooked meals, which are healthier options.

According to a recent survey, 60% of UAE consumers use an app to order food, compared to only 18% in the United States. The recent news that Zomato has sold its UAE meal delivery business for USD 172 million highlights the market’s strength. Meanwhile, Careem, a UAE startup success story, has revealed ambitions to fund USD 150 million to launch a food delivery arm in order to get into this lucrative industry.

The meal delivery business gives a significant opportunity for entrepreneurs with the skills and know-how to see success in the food and beverage industry, based on the number and overall future trends. If that describes you, there’s more good news: applying for a food delivery license in Dubai can be simple with the correct help.

Guidelines for Starting a Food Delivery Service in the United Arab Emirates

• If a restaurant can produce 150 to 250 orders per day through online platforms, it is likely to be able to negotiate a commission rate of 15-18% of the transaction value;
• The internet platform has a vested interest in actively promoting the outlet on its platform.
• It may run above-the-line advertising with the F&B brand once more;
• To improve the customer experience, the platform monitors the restaurant’s performance through weekly MIS (Management Information System) reports and performance data.
• To promote the restaurant, even more, it may offer free delivery and commission weeks.

However, if the restaurant’s order volume is poor, the operator will be required to pay a commission of 25-30%.

Incorporating a Food Delivery Service in the United Arab Emirates

With increasing concerns about COVID-19’s impact on the food and beverage Business Setup in UAE, timely delivery is more important than ever. The following are the stages to starting a meal delivery service:

• Make a decision about the type of business you want to run. The most important factor is that your chosen activities correspond to those listed by the Department of Economic Development (DED).
• Make a decision on a commercial name. Be advised that in the UAE, you must follow a stringent set of name regulations. In a nutshell, you should refrain from using rude or obscene language. If you’re naming your company after yourself, stay away from well-known corporate names and abbreviations. You should also double-check that the name you want to use is available for registration.
• You can submit an application for a business license in UAE. You’ll need to give a few pieces of information as well as some important documents, such as:

1. 1.  Completed application form
   2.  Passport copy of the proposed owner or owners
   3.  Two-color passport size photos
      

• Finally, you’ll need to apply for a UAE residency visa unless you already have one. With the appropriate assistance, the visa application procedure, like filing for a business license, may be surprisingly simple.

Constructing a Food-Delivery App

The most important aspect of starting a food delivery service business is having a viable application. Accepting orders solely by phone or website will exclude you from a vast market, thus developing a mobile app is essential. True, developing an app incurs additional expenses, but it is money well spent given the added level of convenience it provides to your customers.

So, first and foremost, you should have a thorough understanding of the UAE and client trends. This is a good place to start your research.

The ideal solution here is to work with an established company that specializes in mobile app design unless you have app-building skills. Costs vary greatly depending on the level of functionality and design you require. The trick is to collaborate with developers who want to see you succeed.

Working with a business setup expert can help you get your food delivery service up and operating quickly. Your app could help bring a range of Dubai cuisine into people’s homes, as more people desire to avoid eating out.

Projectfrpjsc can assist you with obtaining a license for your food delivery service in the United Arab Emirates. For additional information, please contact us immediately.

Why Dubai is a Preferred Destination for Foreign Investment

 Dubai is one of the destinations where numerous business opportunities are present to people willing to invest and take a few risks, making it a preferred destination for Foreign Investment. The United Arab Emirates is among the top 15 in the list of most FDI inflows. Dubai’s unique position on the map and the ocean of opportunities for entrepreneurs make it an attractive investment place.

 Why should you invest in Dubai?

Dubai provides outstanding financial rewards along with no annual taxes. The high return on investment and a developed infrastructure contribute to people’s many reasons to invest in Dubai. Dubai is considered the business hub of the Middle east. Even though Dubai is highly developed, the work towards betterment continues to go on. Dubai’s financial stability also draws companies to invest in Dubai.

 What are the best investment options in Dubai?

1. Real Estate

Investing in Real Estate is a good option in Dubai due to its ever-growing economy. In addition, due to its position in one of the most famous tourist destinations, the prices of property gain much more value.

2.  Stocks

While this is the first option that comes to everyone’s mind when considering investments, it is crucial to consider the risks associated with investing in stocks or any investments. Stocks are considered the most versatile investment option.

3. Bonds

Investment bonds are a safer option for investors and have great returns. It can be redeemed after 90 days.

4. Mutual funds

They are a long term investment option. It is considered the best by investors that are looking to invest a small amount.

5. Funds

There are several Fund investment options available in Dubai. It depends on the investor to invest in the right type of fund depending on their requirements.

6. Deposit accounts and e-saver accounts

These accounts provide high returns to the investors and come without any debit cards to discourage withdrawal.

 7. Gold

 Dubai is the land of gold. Investment in gold is also one of the most preferred options in Dubai. It helps in the long run and is also a safe option.

 Small investments in Dubai 

The ideal investing opportunities in Dubai for small investments include Stocks, Bonds, mutual funds, REITs and ETFs. The desire to be financially independent is one of the main reasons people invest in Dubai because it provides opportunities for both small and big investors.

 Standards of Living

The standards of living in Dubai are what people desire. It is amongst the top-notch destinations for a good quality of life. The high living standards and connectivity also make it ideal for people and seem attractive.

 Conclusion

Dubai is one of the most attractive investment destinations for investors. It holds a massive number of exhibitions or events that act as an attraction for investors and tourists. The location provides the place with easy access and is also a preferred destination for investments. It is home to many international companies as well. Dubai is the ideal place for people to invest for great returns and is preferred by many investors. It provides equal opportunities to those who invest huge amounts and those interested in smaller amounts of investments.

 In matters like investing, especially as an expat, people tend to get confused and get in chaos due to several rules and requirements. This is the time when people tend to look for an expert. A lot of confusion can be avoided if guidance is taken from the very beginning. We at Projectfrpjsc are a team of experts who help you with your queries related to all types of company setup in UAE.

 

Obtaining a Business Consulting License in the UAE

By starting a consulting company, you can open yourself up to new options and have complete authority of when, where, and how you work. Starting a consultancy company has low startup costs, and it’s simple to adapt to match your lifestyle and other resources but for this you will need a business consulting license.

In order to start a consulting business, you need to keep a few factors in mind such as what your specialty is? Do you need any special training? How much should you charge for consulting business? How should you structure your services? How to find new referrals and clients? And questions related to your business license as well.

Top 10 most popular consultancy businesses in the UAE

1. Management Consultancy
2. IT Consultancy
3. HR Consultancy
4. Operations
5. Marketing Consultancy
6. Aviation Consultancy7. Architectural Design Consultancy
8. Forensic Medicine Consultancy
9. Science and Technology Consultancy
10. Agricultural research and consultancy

Management Consultancy is one of the most popular Consultancy services in the UAE. If a license for DED mainland is required, a management aptitude test from the American University which has a fee of AED 2400 (approximately), needs to be cleared for the same. Only people with a minimum of a graduate degree are allowed to obtain a license for a Management Consultancy.

Starting a consulting business in UAE-

Step 1: Make a list of your activities.

You must first define your specific business activities – i.e. the sector or market you plan to consult in – before applying for a business permit for your consulting business. With this information in hand, you can begin your search for the ideal operating zone for your business.

Step 2: Pick a name for your company.

The next step is to pick a company name. It’s best to do this ahead of time so you’ll need to register it before trading in the UAE. A few naming conventions must be followed. There are some restrictions, such as the use of only full names with no abbreviations. Any potentially insulting or offensive terms are prohibited. The name should be available to register.

Step 3: Submit an application for your consulting license.

While you can create this application on your own, it is recommended that you collaborate with a company setup agent at this time. Your dedicated account manager will ensure that the submission is valid when you sign up in an operating zone, preventing any problems down the road.

Step 4: Submit your visa application

To setup company in UAE, you’ll need a visa. You can submit this application to the appropriate immigration department while attempting to establish a company. The application for a visa is part of the main business setup process

The Requirements for Starting a Consulting Firm

If you want to start a company in the Mainland, you’ll need a local sponsor. DED (if on the Mainland) or the Free Zone Authority would approve office space. A valid passport is required for the company’s owner or investor. The government protection authority must issue a certificate with no objections.

Documents Needed to Obtain a Consulting Firm License in Dubai

An application form from DED, Copies of the owner’s and partners’ passports are needed for expatriates forming a business, The consulting company is responsible for obtaining initial approval from the authority (municipality, RTA, National Media Council, etc.).If the expatriate is on an employment visa, a No-Objection Certificate (No-Objection Certificate) from the international partners’ sponsors is required. A Unified Number (UID No.) is needed if the investor is on a visa tour. If the company is an advertisement agency, it must obtain permission from the appropriate authority to advertise posters, pamphlets, and other promotional materials.

While this is a generic information on the procedure followed, many consultancies may follow a procedure that may differ from the one mentioned above. Consultancy licenses for certain services can be obtained directly from the authorities while some other consultancy services such as those which provide technical services (eg- medical and healthcare consultancies, etc), need an approval from the authorities associated with the concerned industries. In a management consultancy license, passing a management aptitude test is required as mentioned earlier in the article along with other requirements for the same. Consultancies such as IT and HR do not require any specific approvals.

The Procedure for Obtaining a Business Consulting License in Dubai

1) Company Formation in Dubai Mainland 

After stating the same for public notary services, fill out the application form and apply the above-mentioned documents to the DED. Where the corporation is subject to mainland jurisdiction, prepare a Memorandum of Association (MOA) with its local investor.If the office is authorized for a lease agreement, get the municipality’s approval for a lease arrangement. All forms must be accompanied by a certificate. Send passport copies of the owner/partner and the NOC to the expatriate owner/partner (if any) at any DED branch. At the counters, you can pay to get a warrant, as well as a transaction voucher.

2) Business Setup in Dubai Freezone 

To obtain a license for a freezone company, a simple procedure had to be followed. DED needs to be contacted after identifying the consultancy you want to go about. An application form is to be filled out. You’ll be asked to get the approval from the relevant authorities if needed. Five to Six days will be taken to issue the license.

How Projectfrpjsc helps you

In matters like business setup, people tend to get confused and get in a chaos due to a number of rules and requirements. This is the time when people tend to look for an expert. A lot of chaos can be avoided if guidance is taken from the very beginning. Every venture may have unique requirements like location, customer convenience, logistical feasibility and banking services.

We at Projectfrpjsc strive to understand these unique precepts and provide expert and reliable consultation to our clients with updated laws and governing regulations, awareness of their rights and cost effective business solutions tailor made to their business needs and budget.

Conclusion

Setting up a consultancy in UAE is an idea that will flourish a lot, provided the person works towards increasing the reach of the business and works in a customer friendly manner. Approaching professionals for issues related to the setting up of a business is the best choice available in order to prevent any mess up or chaos in the procedures in future. 

Top 5 Financing Options for Your Business Setup in Dubai & all across UAE

Every successful business needs some financing options and funding initially. These funds are used for setting up the business and to ensure a secure business as well. 

While these funds are important it is also difficult to know the right place from where you can get these funds if you don’t have enough saved. To open a business in UAE these are a few financing options that you can consider-

1. Family and close friends

It can be intimidating to ask family and friends for support. However, when seeking outside support, tapping those nearest to you is a good first move. Make a business strategy before meeting them.

Explain what you’re selling, how you’ll make it, any demonstrations, samples, or products you have, future profits, risk factors, competition, and how you’ll make money in the project. As friendship is important, be practical and straightforward in a way they can accept. Clearly show whether you’re seeking a loan, an investment, or a donation.

2. Alternative Financing Options

If you would need a small sum, there are microloan companies like Kiva that loan to startups. Other options include community platforms like Kickstarter, which allow you to collect funds from thousands of people who would like to sponsor you and contribute smaller quantities or advance orders in order to make it easier for you to reach your targets.

3. Local funding or financing options

Local support and awareness projects, such as:

1)The Khalifa Fund for Enterprise Development is a non-profit organisation that helps small businesses grow. H. H. Sheikh Khalifa bin Zayed Al Nahyan, President of the UAE and Ruler of Abu Dhabi, announced the creation of the Khalifa Fund for Enterprise Development (KFED) in 2007, which provides local businessmen with convenient funding options, entrepreneurs and SMEs in the country. The Fund’s goal is to encourage creativity and investment in the UAE, as well as support innovation and funding feasible and effective business initiatives that have a positive effect on the economy in a range of jobs. The KFED Programs are divided into two main categories: funding programs (such as microfinance) and outreach programmes (such as Al Radda) that serve specific groups.

2) Dubai SME is a Department of Economic Development Agency which offers funding and other assistance to start-ups and developed SMEs.

4. Venture capitalists 

Another possible source of funds for new enterprises is venture capitalists (VC). There are private equity partners who are able to put up huge sums of money facing high risks and they stand to benefit a lot if the firms they back succeed in launching and maintaining their services.

Once they have a local associate, agent, or company setup agency representing them, most businessmen feel safer about connecting with venture capitalists.

VentureSouq, which invests in high-growth early-stage tech companies; Shorooq Partners, a major seed stage venture capital company; and BECO Capital, an early-stage venture capital fund, are among the most active venture capital investors in the UAE.

5. Angel Investors 

If all the other ways don’t work, reach out to angel investors, such as high-net-worth individuals (HNWIs), family offices, or founders trying to broaden guide, and help contribute by investing in emerging ventures.

Ask other founders for recommendations, or use websites like Angel.co, etc to find angels in the UAE. Although individual angel investors can invest for equity or have a loan, angel investment associations hold monthly meetings, tournaments, pool funds (co-invest), and provide networking opportunities.

How Projectfrpjsc helps you

In matters like business setup, people tend to get confused and get in a chaos due to a number of rules and requirements. This is the time when people tend to look for an expert. A lot of chaos can be avoided if guidance is taken from the very beginning. We at Projectfrpjsc are a team of experts who are here to help you with your queries related to all types of business setup. Our banking team includes experienced bankers who understand banking well and can assist to client in terms of selecting the tight bank and preparing the documents as well.

Conclusion

Setting up a company in the UAE provides a lot of benefits and is an easy process with the help of expert guidance. However, finding financing options can seem like a huge task however Projectfrpjsc is here to help for this as well. Finding the right funds for your business is the thing that you need to excel.

Implementation of Business Digital Transformation

Digital transformation is the process of integrating digital technology into all aspects of an organization, fundamentally changing how you operate and provide value to clients. Firms must continually challenge the existing quo, experiment, and learn to embrace failure as part of this cultural transformation.

Many people, as well as companies, were harmed by the outbreak of Covid-19 in the United Arab Emirates. As a result of the pandemic, growth in all areas of the economy has slowed. Citizens were unable to go shopping, while other businesses were required to close. As a result, many people have opted to take their businesses online during this period, resulting in a digital revolution.

The continuous disruption caused by the COVID-19 outbreak has demonstrated the value of flexibility in the workplace. Many businesses are permanently altering their previously determined approach. Many entrepreneurs want to use platform-based business strategies to help them grow their companies.

What is the significance of digital transformation?

A company might decide to go digital for a variety of reasons. However, the most plausible reason is that they must: It’s a life or death situation. In the aftermath of the pandemic, a company’s ability to respond swiftly to supply chain disruptions, time to market issues, and rapidly changing customer expectations has become critical.

What is the driving force behind digital transformation?

Of course, technology is an important part of digital transformation. Getting rid of outdated methods and legacy technology, on the other hand, is frequently more vital than adopting new technology. It’s also about allowing for innovation.

More government agencies, for example, are on the verge of achieving the cloud model’s full potential, moving from cost-cutting to strategic cloud use.

Benefits of Business Digital Transformation?

Restaurants, retail, electronics, and other similar industries were severely impacted because all of these establishments were previously closed, and even after the lockdown was released, people continued to fear going out to buy products or utilize any of these services because stepping out was still dangerous. Shops or companies that offered tailored shopping offers and selections based on prior purchases, as well as a range of payment alternatives and the opportunity to monitor orders as accurately as feasible. Additionally, one of the services given by these firms to assist clients is home delivery.

Because of the epidemic, businesses are now going online. This has aided the UAE’s technical progress and enabled the government’s projected paperless policy to be executed. These firms have also begun to deliver to customers’ homes, removing the need for them to attend outlets or stores and therefore aiding in the prevention of the spread of covid-19. Everything is delivered at the chosen place by the firms. Bills may now be created on a computer, and budgets can be computed in seconds using computers, further promoting digitalization. Companies who have shifted to internet commerce and digitalization have seen tremendous growth and profit. These businesses have adapted to the digitization and are profiting as a result of the lack of COVID-19 restrictions on their operations. Connecting with people and users has also become easier as a result of digitization. Receiving and giving feedback has been simple, so there is more room for development and resolving problems, as well as replenishing items as soon as they run out.

What are the four primary areas where digital transformation is taking place?

1. Technology 

From the Internet of Things to blockchain, data lakes, and artificial intelligence, the raw potential of emerging technologies is astounding. While many are becoming easier to use, understanding how any particular technology contributes to transformational potential, adapting that technology to the individual demands of the organization, and integrating it with existing systems is highly challenging. To make matters worse, most firms have a lot of technical debt, which means they have outdated equipment that is difficult to update. These issues can only be solved by individuals with technological depth and breadth, as well as the ability to cooperate with the firm.

Digital transformation, on the other hand, must eventually involve institutional IT. This means that whenever a new technology is developed, innovators must provide and demonstrate a commercial advantage. As a result, technology domain leaders must be outstanding communicators with strategic acumen in order to make technological decisions that strike a balance between innovation and debt reduction.

2. Data

Unfortunately, the majority of data in many companies today does not fulfill basic standards, and the rigours of transformation need considerably enhanced data quality and analytics. Understanding new forms of unstructured data, utilizing proprietary data, and integrating everything together are very definitely all part of the transformation process, all while shedding huge volumes of data that have never been (and will never be) used.

3. Process

Transformation demands a holistic approach, a rethinking of how to meet customer expectations, the ability to manage across silos in the future, and the seamless integration of work processes. A process-oriented approach is best suited to these objectives. Many people, on the other hand, have found combining horizontal, cross-silos process management with traditional hierarchical thinking difficult. As a result, this vital concept has lost its sheen. Without it, progress is restricted to a succession of incremental steps that are necessary and beneficial but not truly revolutionary.

4. Capacity for Organizational Change

This category includes leadership, teamwork, bravery, emotional intelligence, and other characteristics of change management. Anyone in charge of digital transformation must have a thorough understanding of the subject.

How to digitally transform the business?

Begin your business transformation by focusing on your customers. While items are essential, so is responding to a customer’s requirements. Client happiness should be your first concern if you want to change your company. Clients are drawn to personalized and customised products and services. Employees that care after the client’s requirements digitally, as well as automation, are necessary for moving online with your firm. Aside from these fundamental requirements for digital transformation, the UAE additionally requires an e-commerce license. This license must be applied for, together with the necessary documentation and paperwork. Once the license is received, you can transform your business digitally.

A general step-by-step guide for implementing your digital transformation strategy:

1. Determine the main goal of the digital transformation project and write it out in full so you can set goals, create guidelines, and understand what your ideal end result will be. To put it another way, figure out what you want to do first.

2. Begin your digital transformation project by properly managing your data—this is critical for effectively supporting the digital transformation, as it will rely on the management of both external and internal data sources to help you implement your new strategy.

3. To build and deliver items and software as a service to end customers, create and use a basic data platform.

4. Consider a full revamp of your company’s operations and business models, which would need the hiring of new professional management positions.

5. Because a significant shift in fundamental capabilities may be necessary, it is critical to establish and maintain connections with a wide range of stakeholders in order to get support.

6. Use artificial intelligence to obtain rapid insights and data exploration during your implementation process.

How Radiant Biz helps you

In matters like business setup, people tend to get confused and get in chaos due to a number of rules and requirements. This is the time when people tend to look for an expert. A lot of chaos can be avoided if guidance is taken from the very beginning. Every venture may have unique requirements like location, customer convenience, logistical feasibility, and banking services.

We at Projectfrpjsc strive to understand these unique precepts and provide expert and reliable consultation to our clients with updated laws and governing regulations, awareness of their rights and cost effective business solutions tailor made to their business needs and budget.

Conclusion

Digital transformation is extremely important for a business to flourish and do well. We at Projectfrpjsc are here to help you with your business digital transformation and help your business flourish.

What are the initiatives taken by the UAE for SMEs?

Small and medium businesses (SMEs) make up the backbone of the UAE economy, accounting for 95 percent of all businesses in Dubai. These small and medium-sized firms employ 42 percent of Dubai’s workers and create roughly 40 percent of the economy’s overall value add. The government is putting a lot of effort into improving the contribution and performance of small and medium-sized enterprises so that they can compete with their counterparts in other developed and high-income countries. 

Role of SME in the economy of the UAE

According to the Ministry of Economy, the UAE SMEs sector employs more than 86 percent of the private sector’s workforce and accounts for more than 94 percent of all enterprises functioning in the nation.

Why would the government want more SMEs to start in the UAE

One of the most important reasons is that they promote growth, innovation, and job development. The UAE’s economy is built on small and medium businesses. They’ve shown to be significant drivers of sectors all around the country, and they’re likely to play an even bigger role in the coming years.

These SMEs, in essence, contribute to economic development, innovation, and job development. As a result, it’s critical to make sure they have the tools and support they need to continue on their path.

How is the government helping the UAE SMEs?

1. Cabinet Support Package for the Economy

On March 22, 2020, the UAE Cabinet stated that it will provide the economy with AED 126 billion in financial assistance. This assistance package has now been increased, totaling roughly AED 257 billion. The assistance is said to have three goals: (i) lowering the cost of doing business in the UAE, (ii) assisting small firms, and (iii) to hasten the construction of key infrastructure projects by the government

In addition, the Cabinet announced that special teams will be formed to guarantee that remote working is both sustainable and beneficial to the economy. The teams are responsible for reporting to the Cabinet on a daily basis on the financial effects of COVID-19 on the economy and what actions may be taken to mitigate the negative effects.

2. Central Bank’s Initiatives and Targeted Economic Support Scheme

The UAE Central Bank cut the interest rates on Certificates of Deposits by 75 basis points in mid-March in order to boost economic expenditure. The REPO Rates for borrowing short-term liquidity have been reduced by 50 basis points in tandem with the fall in interest rates. The Central Bank also reduced the rates applicable to the Interim Margin Lending Facility and the Collateralized Murabaha Facility by 50 basis points in March as part of its budget measures.

The UAE Central Bank has launched the Targeted Economic Support Scheme (TESS), which aims to provide temporary relief from principal, interest, and profit payments on outstanding loans for all affected private sector corporates, SMEs, and individuals. However, the waiver will not apply to loans made by the government or by foreign corporations.

TESS reduces current capital buffers to help banks in the UAE expand their lending capacity, as well as providing assistance to all financial institutions in the country.

TESS’s impacts result in the provision of AED 50 billion in collateralized loans and AED 50 billion in capital buffers being released.

3. Dubai Free Zone Initiatives

The Dubai Free Zone Council’s package will benefit free zones operating within the Emirate of Dubai, including a six-month rent delay, improved installment payment facilitation, refunds of security deposits and guarantees, cancellation of free zone applied fines, and permission for temporary contracts that allow free movement of labour between free zone companies.

Waiving any transfer fees between jobs will benefit both businesses and employees in the event of unpaid absence or redundancies, and will allow for a more fluid and dynamic workforce to deal with the changing economic situation.

Many of the UAE’s free zones have launched their own projects and packages, and we can give further details on individual jurisdictions upon request.

4. Establishment of Dubai’s Startup Hub and Remote Access

Dubai Startup Hub, the entrepreneurship programme of the Dubai Chamber of Commerce and Industry, has hosted its first entirely online event for its members. 40 new members joined, and they will receive online mentoring to help them with their new endeavors at this challenging time.

5. Small Businesses Initiatives in Abu Dhabi

The Abu Dhabi Department of Economic Development and the Abu Dhabi Department of Finance, in collaboration with Abu Dhabi-based banks, have launched a number of projects aimed at both people and small businesses. These measures have been developed to help both people immediately impacted by COVID-19 and the broader SME community who are suffering from the outbreak’s indirect repercussions.

The Abu Dhabi initiatives also help UAE SMEs affected by COVID-19 by allowing them to defer payments on current loans and credit cards for up to three months.

• Fees for bank merchant services are reduced;
• Fees and costs associated with banking are reduced; and
• Minimum average balance requirements are reduced.

SMEs that are not immediately touched by COVID-19, can take advantage of the following benefits:

• Installments on new borrowing can be deferred for up to three months;
• Interest rates on new borrowing will be reduced; and
• Bank costs will be reduced by 50%.

On request, more information and guidance on how small firms might benefit from Abu Dhabi initiatives may be offered.

6. Stabilisation Initiatives of Market Values

The Securities and Commodities Authority of the United Arab Emirates (“SCA”) has announced a ruling imposing a 5% restriction on stock price declines in the UAE. The limit was implemented on March 18, 2020, and will remain in effect until further notice.

A limit down cap determines the maximum amount of a stock’s price that can fall in a single trading day. The ceiling is presently fixed at 5% across all sectors, but the SCA decision empowers markets to possibly raise the ceiling to 7% for particular equities chosen by the markets. Any such judgment must be based on precise criteria that the SCA must approve. Nasdaq Dubai, Dubai Financial Market (DFM), and Abu Dhabi Stocks Exchange (ADX) all issued press statements announcing the implementation of a 5% limit down on all securities listed on their respective exchanges.

Any decreases will be stabilised by the implementation of the new limit down limitation.

7. Support and Prioritisation for Government Suppliers

The Federal Cabinet has ordered federal ministries and agencies to expedite payments to government vendors, requiring payments to be made within fifteen days.

Suppliers who have been delayed in completing federal government contracts may benefit from a congressional resolution that says there will be no penalty for delays for the next three months.

8. Unified Digital Platform

The Ministry of Finance has announced the creation of a single digital platform that will allow fees for common federal and local government services to be settled. The platform’s goal is to create an interconnected platform that allows users to access shared government services without having to go through manual procedures. The stated goal of this platform is to improve efficiency and financial flow sustainability for both municipal and federal income.

9. Reduction in Utility Bills

The UAE Cabinet has made a decree imposing a 20% reduction on water and energy rates for three months beginning in April 2020. Fee reductions will be applied to industrial plants, shopping malls, commercial stores, hotels, and hotel flats at this time.

A six-month delay in water and electricity connection installations, as well as a freeze on reconnection fines and the elimination of administrative costs for energy connection, will assist the aforementioned industries/entities.

10. Dubai Customs Initiatives

Dubai Customs Department has presented a stimulus package for imports and declared a delay of their auditing processes in an effort to guarantee that the UAE’s international commerce and imports are protected against the volatility of the supply of products. In particular, Dubai Customs would reimburse 1% of the customs charge normally charged on imported products (usually 5%) that are sold in the UAE market.

This reimbursement will be available for products imported between March 15th and June 30th, 2020.

The AED 50,000 bank or cash guarantee will be cancelled for individuals who provide customs brokerage services, and the sum will be reimbursed to individuals who have already placed the guarantee.

11. Smart Attestations

Initiatives include not just financial packages, but also efficiency improvements and remote operations. The evolution of attestations is one example of this.

The UAE relies significantly on document attestation to confirm the integrity and authenticity of important business papers. A face-to-face interaction is usually required for the attestation of the essential document. In the Emirate of Sharjah, the Sharjah Chamber of Commerce has indicated that they will accept attestation for all transactions via their website and dedicated Smart App in an effort to keep the payment process as quick as possible at this time.

Investors will be able to complete transactions remotely while receiving a ratification of signature, individual sponsorship, minors permission, a certified true copy, guardian approval, and external transactions, as well as the option of making online payments via credit card or prepaid from the registered company’s account.

12. Foreign Direct Investment Positive List

The UAE Cabinet has established a “positive list” of industries in which foreign citizens (i.e., non-UAE and non-GCC nationalities) can own 100% of an onshore company’s stock. The first Foreign Direct Investment Law (FDI Law) was passed in 2018 (Federal Law No. 19 of 2018), which included a negative list of activities in which foreign people are prohibited from investing.

Each positive-list activity will have certain (not minor) financial requirements, which investors must consider. It’s also worth noting that each Emirate will be able to decide which of the activities on the positive list can be carried out with 100 percent ownership in their respective Emirates. We anticipate that each Emirate will concentrate on recruiting investment in specific sectors.

13. Umm Al Quwain Financial Support Packages

Umm Al Quwain’s ruler has issued a Decree (No. 2 of 2020) that offers a range of financial assistance packages. The Umm Al Quwain Economic Development Department is offering a 50% reduction on costs for new business licenses and license renewals (these relate to renewals of commercial, industrial and professional licenses). Any fines associated with these expired licenses have been waived.

Finally, the Decree reduces all fees related to the Umm Al Quwain chamber of trade and industry by 50%.

14. Fujairah Licensing and Tax Fee Waivers

The ruler of Fujairah has issued a Decree (No. 4 of 2020) exempting firms engaged in specified economic activities from paying licensing fees and taxes for the rest of the year.

The fitness, food, and leisure industries are among those affected by the exempted licence costs. Hotels and hotel units, on the other hand, will be free from all local taxes.

How Projectfrpjsc helps you

In matters like business setup, people tend to get confused and get in a chaos due to a number of rules and requirements. This is the time when people tend to look for an expert. A lot of chaos can be avoided if guidance is taken from the very beginning. Every venture may have unique requirements like location, customer convenience, logistical feasibility, and banking services.

We at Projectfrpjsc strive to understand these unique precepts and provide expert and reliable consultation to our clients with updated laws and governing regulations, awareness of their rights and cost effective business solutions tailor made to their business needs and budget.

Conclusion

SMEs are an important part of the economy of the UAE and the government has introduced many initiatives especially during the pandemic to help them flourish. 

How to Establish a Joint Stock Company in Dubai?

In Dubai, a joint stock company is a corporate organization that needs a minimum share capital. If there are more than 10 founding members, you can form a public joint stock company, or a private joint stock company with smaller share capital. You may depend on the assistance of our law office in Dubai in matters relating to the creation of these businesses.

Advantages of a Joint Stock Company

1. Increased Capital
2. Limitation of Liability
3. Existence Stability
4. Scale economies
5. Expansion Potential
6. Public Acceptance
7. Professional Management
8. Transferability of Shares
9. Tax Benefits
10. Risk Diffused
11. Social Advantages
12. Increased Borrowing Power
13. Encourages saving and investing
14. Increased Adaptability
15. Increased Accountability
16.Capital and Capability Synergy 

Disadvantages of a Joint Stock Company

1. Formation Difficulty
2. An absence of secrecy
3. Economic Power Concentration
4.Delay in Decision Making
5. Personal Interest Deficit
6. Increased Government Restraints
7. Management that is inept and unscrupulous
8. Excessive Speculation in the Company’s Stock
9. A Cold Work Environment
10. Various Rules and Regulations
11. Oligarchic Management
12. Conflict in Interests
13. Insufficient drive and a lack of personal touch
14. Ownership and management are kept separate.
15. False advertising and management
16. Negative consequences of large-scale operations
17. There is a lack of continuity and concealment.

Difference between a public and private joint stock company

A private joint stock company is one in which the members’ ability to transfer their shares, if any, is restricted; the number of its members (not including its workers) is limited to 50; and the public is not invited to subscribe for any shares in, or debentures of, the business.
When a group of persons owns one or more shares in a firm, they are considered as a single entity.
A public corporation is one that has no restrictions on its members’ rights to transfer their shares, if any exist; has no limits on the number of its members; and encourages the public to subscribe for any of the company’s shares or debentures.
Directors must either obtain a consent to function as directors, sign a MOA, or enter into a contract for qualifying shares.

Creating a Joint stock company in Dubai

Opening a private joint stock company in Dubai has certain legal requirements, including a minimum share capital of 2 million AED. The shares must be distributed among at least three people and cannot be sold to the general public.
The free zones and mainland regulations in Dubai allow for 100% foreign ownership.

There are also certain restrictions on the kind of operations that a private joint stock corporation can engage in. As a result, a private joint stock corporation can be used for commercial or industrial purposes. If you want to do business professionally, you should opt for a different sort of corporation than a private joint stock company.

In Dubai, a public joint stock corporation requires a minimum share capital of 10 million AED and allows its members to bargain their interests in the firm. Each member’s liability is limited to the value of his or her shares in the joint stock firm.

Steps to open a joint stock company in Dubai

• You’ll need to get a trade name approved if you haven’t already.
• After that, you’ll need preliminary approval, which is a certificate that allows you to apply for a company license.
• Depending on the nature of your business activity, you may additionally require authorization from other relevant authorities. For example-If you work in the insurance sector, you may need to apply for authorization from the Insurance Authority. If your company is in the healthcare field, you may need to seek Ministry of Health permission.
  
•  You can apply for a business license online or in person at a Department of Economic Development (DED) customer service facility.

Documents needed

You must provide the following papers as part of your business license application:

1. your trade name certificate
2. your preliminary approval certificate
3. the applicant’s UAE ID card (and passport, if applicable)
4. copy of the extract of registration for every individual concerned who is an Emirati citizen
5. the commercial license or registration certificate for any shareholders who are legal persons (companies)
6. the lease agreement for your business premises
7. if you have a representative submitting your license application, a power of attorney attested by a notary public
8. a representation, eg photo or photocopy, of the business signboard, carrying the seal and signature of the calligrapher and the board measurements
9. a no-objection certificate issued by the appropriate authority if your business needs permission to carry out its economic activity
10. the company’s memorandum and articles of association, authenticated by a notary public proof that the company’s memorandum and articles of association have been published in the Ministry of Economy bulletin
11. a letter of approval from the Executive Council regarding the company’s incorporation
12. a certificate from a bank operating in the UAE showing that the subscribed capital has been deposited 

Conclusion

By following a few simple steps, you can open a joint stock company in Dubai. A joint stock company has it’s benefits and risks which should be carefully evaluated.It is advised to seek help from professionals when planning for a company registration in UAE. 

How Projectfrpjsc helps you

In matters like business setup, people tend to get confused and get in a chaos due to a number of rules and requirements. This is the time when people tend to look for an expert. A lot of chaos can be avoided if guidance is taken from the very beginning. Every venture may have unique requirements like location, customer convenience, logistical feasibility and banking services. We at Projectfrpjsc strive to understand these unique precepts and provide expert and reliable consultation to our clients with updated laws and governing regulations, awareness of their rights and cost effective business solutions tailor made to their business needs and budget.

Gold and Diamond Park is a free zone in DUBAI city that was founded in 2011. It is located on Sheikh Zayed Road. DUBAI Gold and Diamond Park is one of the popular tourist spots. Gold and Diamond Park has a collection of jewelry, precious stones, gemstones, gold, silver, platinum, and many other accessories & ornaments. It was built to provide a set of all the precious jewels in the world in a single room.

It is an Exclusive and luxurious place that provides all the necessary requirements for a business enterprise, especially in the jewelry and gemstones sector.

Advantages of Business Setup in Dubai – Gold and Diamond Park

The Gold and Diamond Park DUBAI provides for all the needs of a business firm. The park has all the benefits like total freedom for foreign ownership, 100% repatriation of capital and profits, no corporate tax or personal income tax, A good location within the heart of DUBAI with easy access to all areas, 24/7 operational freedom, and many others.

Types of Licensing in Gold and Diamond Park

The regulatory body of the park provides various licensing options like:

1. Trading License– The owner is authorized to carry out any type of trading activity in the Gold and Diamond Park.

2. Manufacturing License– The owner is allowed to carry out manufacturing activities.

3. Retail License- The owner is allowed to open a retail outlet by leasing the same in the Gold and Diamond Park, DUBAI.

4. Service License- Allows a person to provide professional services in DUBAI Gold and Diamond Park

5. E-Commerce License- Allows the owner to sell any commodities online and provides services online through a website.

6. National Industrial License- Allows the owner to open up an industry anywhere in the free zone.

Services Offered by DUBAI Gold and Diamond Park

There is a wide range of services offered by Gold and Diamond Park. Some of them are mentioned as under-

· Manufacturing units are available
· Presentable offices for all types of businesses
· Options for the retail sector as well
· Hallmarking will soon be implemented for all gold manufactured and sold

From the Gold & Diamond Park

The Gold and Diamond Park DUBAI Free zone follows a systematic approach towards company registration. Any type of company or firm is free to open a business in the park by following a few steps:

1. Obtain a lease agreement from the management authority.

2. Decide on the type of license needed. An application form needs to be submitted along with the following documents to JAFZA in DUBAI:

· The Memorandum of Association (MOA) and Articles of Association (AOA) or partnership agreement deed (in case of a partnership firm)
· Photocopied lease agreement
· Licensing fee payment proof

3. Certificate of Incorporation and a letter which while setting up any business need to be submitted to the Bank are issued by JAFZA. These are needed to open a corporate bank account.

4. After receiving the letter, the bank will in return issue a letter of confirmation of the deposit made in the bank account. This deposit is the minimum share capital of the company, as requested by the authorities.

5. The letter of confirmation should be submitted to JAFZA personnel and a business license will be issued.

Setting up a business is tricky work that needs to be done. All the tasks and duties need to be taken care of.

Assistance is also required to understand all the procedures and the laws. Projectfrpjsc provides all-round solution to all business setup queries whether it is an offshore, a mainland, or a free zone setup.

We are transactional banking and trade finance experts and will help you in managing your corporate bank account. We will guide you through the steps of obtaining a license with ease.

We have various packages to fit with your dream business and help to get the company that you desire to run.

New Company Formation Rules for Businesses in Dubai

On the light of recent policy changes, company/business set up dynamic has changed greatly. The new company formation rules for businesses in Dubai not only provide flexibility but efficiency and overall path to greater performance through a wider reach. Company setup or business setup in Dubai has never been easier. Let’s run down a few pointers on how the new policy reforms and changes have reflected on company formation rules for businesses in Dubai.

Dubai in demand as a Business Hub

With the recent changes, foreign companies and investors have seen a greater acceptance of flexi desk companies. It poses less of a challenge of having a physical residential address for initiating a corporate account in central banks.

Through this reforming not only have there been more company formation taking place but UAE as a region is providing a larger scope for companies to be set up in this current situation. uae free zone company formation will see a greater change of pace through this new implementation.

Business activities

Company formation in Dubai mainland is no easy feat. The ingredients to setting up a successful company not only relies on the beneficiaries but getting through and understanding various guidelines and policies. With many business ideas being brought to the table every now and then only a few are given the green signal when it comes to banking rules and other legalities.

To overcome this, companies may consult business setup consultant Dubai to run them through the process of bank approvals and other important formalities. As the market grows banks are inclined to approve companies with stronger and risk-free business ideas. However, if the right steps are taken this banking issues can be solved in no time with business consultants in Dubai.

Rules on taxes and laws

With the introduction of the Value Added Tax (VAT) in 2018, it’s safe to say that the offshore company formation in uae economy has seen a significant shift. Through VAT there has been a change in business operations and cash flow along with clientele relations. Creating greater opportunities VAT puts companies on the same page with their international partners.

As the new changes come into effect and have brought on new rules such as the 100% ownership for 122 economic activities, this creates a ripple effect of growth throughout the region. Thus, consolidating UAE as the business hub of the MENA region.

Through these changes not only will companies benefit from it but the UAE as well due to the influx of various businesses and companies wanting to set up in the booming economy such as the UAE. The current market becomes more feasible and viable for FDI and company formations thus making it the right time for you to invest in your company and change the game.