How to set-up a consulting business in UAE

Introduction

How to set-up a consulting business in UAE

UAE has always been the business hub for many enterprises in the world. The fact of being tax free has attracted many companies from all over the world. New business ventures are   encouraged by UAE government to develop economic stability in the local and International market. Development in the economy and new technologies mandates business owners to be in pace with the latest technologies. Due to this reason of ever changing state of the technology the necessity of qualified business consultant having qualitative knowledge and experience to provide expert advice to their clients has significantly increased.   Therefore, setting up a consultancy business in UAE is the need of the hour. This means huge clientele base with required business provisions such as growth incentives and stable profits. Now starting up a consultancy business in UAE is proving to be a lucrative business in UAE. And adding cream to the cake is the specialized economic zones with special economic status, facilitating the optimization of many business processes, operating in UAE. One such special economic zone in UAE is the Dubai Outsource Zone.

Knowledge from the post

• Introduction
• What is the Dubai Outsource Zone. (DOZ)
• How to set Up a Consultancy business Dubai Outsource Zone,UAE
• Legal Structure in setting up a consulting business in UAE
• Other Formalities for setting up a consulting business in UAE
• Advantages of setting up a consulting business in Dubai Outsource Free Zone
• Reach Online Accounting Software for setting up a consulting business in UAE
• Conclusion

What is the Dubai Outsource Zone. (DOZ)

Dubai Outsource Zone is a business industrial estate set up to cater to the needs of outsourcing companies.It supports Business Process Outsourcing (BPO),HR Outsourcing,IT Outsourcing,back office and call centres operations.

DOZ is a free zone established to provide a comprehensive infrastructure and environment to all the business set ups by getting organizations and individuals of consultation industry under one roof.

Setting up a consultancy business and registering in Dubai Outsource Free Zone is a great opportunity for operating business in a tax-free territory with economic stability and legal protection. Business activities that are established in Dubai Outsource Free Zone are Professional Consulting Services, Outsourcing Services, Professional Training and Remote Outsourcing Services.

 How to set Up a Consultancy business Dubai Outsource Zone,UAE

To set up a business in Dubai Outsource Zone a professional license is required in. A state license gives an opportunity to provide professional services that is to provide consulting.

• To set up a consultancy company in Dubai Outsource Free Zone, you first need to come up with a company name (must not be already registered with DOFZ), so that you can register your business with DOFZ.
• Once you settled on the name, you need to apply for registration in order to acquire a Professional Service License (PSL) from DOFZ authority. This will give you the opportunity to offer your professional consulting services to your clients.
• Professional Service License will allow you to enjoy 100% ownership and capital repatriation, however, you need to have a Local Sponsor/Local Service Agent (LSA) i.e. business partner to acquire PSL.
• You can have LSA as a sleeping partner in your business which means he will not have any authority or say in business matter and profitability and also cannot hold any shares of the business.

Legal Structure in setting up a consulting business in UAE

There are various legal structures for foreign businesses in the UAE:

• an Establishment (owned by one person)
• a Limited Liability Company or LLC (owned by two or more people, or corporates)
• a Branch of a foreign company (100% owned by a foreign company
• a Freezone (the above structures will also apply in the Freezone)

Most preferred legal structure for a consultancy is an Establishment as it is owned by just one person. The owner bears all financial liability and obligations. Estblishment option is fairly reasonable and easy and quick to set up as this just needs the ID documents and qualifications of the individual.

Business types that fall under this licence are described as “…consultancies, law firms (and) audit officers”. This business set up could also cover marketing and advertising firms, writers, various forms of e-commerce and myriad other services.

The freezones offer licence types which suit independent consultants.

Meanwhile a Branch of a foreign company, can be linked to its parent company in another country.

Companies and individuals that are aiming to deliver consultancy services within the UAE and those that wish to get ‘access all areas  that is  Government, Large Corporations, Oil and Gas etc should opt for the Limited Liability Company.  With a full onshore LLC maximum legal ownership by the foreign party is 49%. It is compulsory to have a local UAE national as a partner in the LLC company owning 51% – note that this 51% shareholder can be a 100% owned UAE Company – Corporate Partner.

Other Formalities for setting up a consulting business in UAE

• Determining cost for setting up a consulting business in UAE so as to apply for loan if required.
• Corporate or Personal bank account.
• Obtaining Residence Visa
• Obtaining Staff Visa

Advantages of setting up a consulting business in Dubai Outsource Free Zone

• Infrastructure of  highest international standards;
• A simplified procedure of registration of the foreign company;
• A favourable and absolutely transparent corporate legal framework, which provides protection of the interests at the national level;
• A wide range of transport, post and other services, and also a round-the-clock legal support by public authorities

Conclusion

Increasing number of foreign investors coming to the UAE has led to the development of various industries. The development in consulting business in UAE attributes to investors coming from European and Western countries.

UAE administration offers a number of benefits to prospective businesses in the form of tax incentives, export duty exemptions and much more.

It should be noted with all such exemptions and facilities UAE government has enforced VAT filing procedure and law for the consulting business set up in UAE.

Reach Online Accounting Software  for setting up a consulting business in UAE 

We at Reach are the preferable mentor who can be there at all time to assist and answer all the queries relating to VAT and other verticals of the business. Reach VAT software is the perfect solution proving to be your best companion in the VAT transition period.

You can use Reach instead of using multiple software for different functions or trying to create customized software. Reach software are VAT complaint which simplifies business operations.

Top Features of the Reach Online Accounting Software  for setting up a consulting business in UAE

• Accounting Management
• Tax Management:
• Income Management
• Expense Management
• Invoicing
• Print Tax Invoice In Arabic
• Auditor View:
• Check Post for VAT returns:
• Automatic Update on Tax legal Sections
• Filing Of VAT Returns
• Auditor’s Report
• Mobile Application
• Bank Synchronization
• Security
• Run Business from anywhere
• Free and Automatic Upgrades
• No investment in expensive hardware
• Automatic Data Backup
• User Interface & Complexity
• Scalability

Technology Used

Reach has implemented the latest technology Cloud Computing to handle day to day business transactions just  a click away from your browser from any part of the world.

Cloud Computing is a concept through which organizations can manage their data centres, processes and applications online via internet on the scheme of pay for use basis. Many of today’s small businesses find great advantages when adopting a virtual office environment. Rather than maintaining one centralized business location, employees are given the opportunity to work from home and connect via computer. Virtual offices can stretch across the country, or even exist within a small geographic area while still providing benefits to both employees and employers. Yet certain business functions need to be managed differently in a virtual environment. When it comes to accounting, a cloud system can improve virtual office management, especially for tasks such as expense tracking and financial report consolidation.

Thus Reach Accountant software is well designed to match all the needs for successful running of the business. The software can be used in different industries  ,traders ,manufacturers, retailers,  workshop ,business projects etc. It is an accounting software that can automatically manage your book of accounts, taxes, inventory, sales, purchases and more online quickly and securely.