Bank Account in UAE

How to setup a Subsidiary in Dubai, UAE?

UAE is one of the best countries for starting a business establishment. Many entrepreneurs choose Dubai, UAE as there are a lot of emerging business opportunities in the region. This article highlights the steps and process involved in Opening a Subsidiary Company in Dubai. Entrepreneurs already having a business in their home country who wish to move to Dubai and start a business entity in the region have many options to look forward to. Depending on their business requirements they can choose the right company structure. The low taxation, the improved business infrastructure, ease of doing business, reduced documentation, complete company ownership, top-class banking support, and more are few reasons why Dubai, UAE remains the top choice for business owners. Starting a Subsidiary Company in UAE Dubai is the perfect choice for Opening a Subsidiary Company for foreign investors. Opening a subsidiary is a strategic way of establishing a presence in a new market and expanding the business network easily. Registering a subsidiary in Dubai is relatively easy with a few additional attestations from the embassy and the Ministry of Foreign Affairs due to the compliance and laws. Else, the process is very straightforward and the investor can operate their branch in UAE as an independent entity driving business and contributing to the economy of UAE. Advantages of Establishing a Subsidiary Company in Dubai There are many advantages in establishing a Subsidiary Company in Dubai. Dubai offers the perfect infrastructure, economy, and governance. The business owner will have many benefits from being in Dubai. However, there are few attestation requirements and documentation to issue the trade license for the subsidiary company. Opening a Subsidiary in Dubai is lucrative to the business owner in many ways. Few of the benefits are as follows Full ownership of the company in Mainland or Free Trade Zone in the UAE Improved lifestyle, business infrastructure, and skilled labor, and more Favorable tax structure, cost effective company setup, ease of documentation Faster processing times, easy document attestation and approvals Ability to easily expand to newer markets Ability to take office space and get a bank account in UAE & more. So, there are many benefits in setting up a Subsidiary in Dubai for the business owners. They can easily expand their business to new geographies by making Dubai their base. Also, the ease of doing business in Dubai is an add-on for faster document clearance and obtaining the trade license for the company. Types of Subsidiary Companies in Dubai Subsidiary Company in Dubai is established either as a foreign company’s subsidiary or as a subsidiary of a local mainland company. There are two major business jurisdictions where foreign investors can start a subsidiary company in UAE. It is the Mainland and the Free Zone. The cost of setting up a subsidiary company in Dubai depends on varying business requirements. However, the trade license and a virtual office setup for the first year will cost approx. AED 28,000 for a services company. Also, a subsidiary can be set up with a general trading activity with a physical office. However, the cost of setting up the subsidiary company in Dubai will be significantly high for general trading with office type of business. By registering a Subsidiary company in UAE, the company can hire employees locally. It can also conduct trade operations in the region and abroad. In fact, the process of setting up a subsidiary is almost similar across the business jurisdictions as below. 1. Opening a Subsidiary in the Mainland of UAE In the mainland of UAE, the foreign company branch is set up as a new Limited Liability Company (LLC). If the foreign company wants to extensively expand in the UAE market, starting it as a new LLC Company is the ideal option for enhanced flexibility. Setting up a Foreign Company Subsidiary as an LLC Following are the steps for setting up a foreign company subsidiary as a Limited Liability Company in Dubai. Get the Parent Company Documents and the board resolution calling upon establishing a Subsidiary Company in UAE attested by the UAE Embassy in the home country. Get the Aforesaid attested Parent Company Documents Counter-Attested by the Ministry of Foreign Affairs Submit the Attested Company Documents and Board Resolution of the Parent Company to the Licensing Authority to start the subsidiary company’s incorporation process Reserve a company name and choose the business activities for your subsidiary company in uae Apply for the registration to the Department of Economic Development and submit the documents of the shareholders Make the required payment for obtaining the trade license Get the Memorandum of Association from the DED along with the Trade license Register the company with the Chamber of Commerce of the respective Emirate Open a Corporate Bank Account in UAE Apply for an establishment card for the company for applying visas for employees Benefits of Setting Up a Subsidiary in UAE Mainland Opening a subsidiary as a Limited Liability Company is beneficial for the parent company as they will not have to incur any liability. As a result, the subsidiary can act as an individual entity driving business in UAE. An LLC Company in UAE will have more flexibility such as hiring new employees, expanding the business by adding more office spaces, taking a warehouse, opening retail outlets, and more. Thus, being in the mainland of UAE the company can easily expand in the local market. It can as well as focus on the rest of GCC by building a robust distribution network in the region. 2. Opening a Subsidiary in the Free Zones of UAE Setting up a subsidiary company in UAE is beneficial for the investor as it is a global business center. Furthermore, UAE has a robust business networking setup for investors to easily grow their business. The Free Zones form a vital role in the business ecosystem of the UAE. Hence, most foreign investors prefer setting up their business in the Free Zones due to the ample business benefits and tax savings.

How to Open a Branch Office in Dubai?

Branch Office in Dubai is a popular business structure entrepreneurs from abroad prefer when they are looking to expand to the UAE. This article highlights the steps in setting up a branch office in the UAE. Often entrepreneurs are doubtful about ways to expand their business to the UAE. Opening a Branch Office of their company overseas is the most direct way for the business owner to maintain the ownership intact. Branch Office in Dubai So, a Branch Office is a fully own entity of the parent company but functionally it has its own characteristics. A Branch Office in Dubai, UAE can indulge in local business operations in the region. Additionally, through the branch office, the parent company can bring in their products and services to Dubai, UAE. They can hire employees in UAE, appoint a director or Managing Director to oversee the international operations by making Dubai the base. Moreover, a branch company in Dubai will enjoy all benefits offered by the specific licensing authority. They can take office space in Dubai, open bank accounts, and do business seamlessly in the region. Advantages of opening Branch office in Dubai Dubai is a perfect choice for foreign investors and entrepreneurs to start their company’s branch. Starting a branch office in Dubai is a hassle-free option if you hire a business consultants. Above all, there are numerous business advantages in setting up a new branch company in Dubai. As a global business hub, Dubai has a lot to offer investors. It has one of the best business infrastructure for entrepreneurs to easily expand their business to the UAE markets and beyond. 1. Get 100% Foreign Ownership The branch office is not a separate legal entity but as an extension of the parent company. Hence enjoy 100% ownership in the branch office and conduct the same business activities as the parent company. 2. Rent an Office Anywhere in UAE The branch office can be setup anywhere in Dubai as per the business requirements of the company shareholders. The company can opt for renting office space at a lower cost in Dubai Mainland to keep the administrative cost low. For organizations that do not require an office space at the center of the city, they can opt for offices with low rent anywhere in UAE. 3. Trade-in Mainland of UAE Setting up a branch office in the mainland of Dubai enables the company to actively trade-in the local markets of UAE. Branch Office allows a business to trade in the mainland of Dubai directly without the requirement of a local distributor, or agent. 4. Tax Benefits UAE has Zero Corporate and Income Tax, and Companies can gain maximum benefits out of this tax regime. By setting up a Branch Office in Dubai, the company can leverage the Double Taxation Avoidance Agreement (DTAA) and save tax in the home country. 5. Audit Report Requirement Auditing a large company with daily financial transactions is tedious. Setting up the Branch Office will help in legally tracking all the transactions between the branch and the parent company. 6. Low Administrative Cost The overall cost of opening a new branch is lower than setting up a new company in multiple countries. In UAE there is no requirement for branch offices to maintain audit reports. Also, taking a small office for your branch in Dubai will keep the administrative and costs low. 7. Cost-Effective Route to New Markets Setting up a Branch Office provides an easy way to enter a new market. The running cost of a branch office in Dubai is relatively lower than setting up a new company as a whole. Why Establish a Branch office in Dubai? So, a Branch office will help the business owner in many ways. It will help them easily start their business operations in Dubai. There are few procedures to follow for opening of a Branch office in Dubai. The branch office will have a separate trade license with the activities listed. They can provide seamless services to the customers across UAE and other regions by establishing a branch office in Dubai. A branch company in Dubai can operate independently and manage the business operations overseas. They can conduct business operations, prepare invoices, hire employees and more. Procedure to Open a Branch Office of a Free Zone or Mainland Company in Dubai There are certain procedures to open a branch office of a Free Zone or Mainland Company in Dubai. The Investor must get certain approvals and attestations from the respective authorities. Internally, the board of Directors, of the company must come to an agreement on opening a new branch in UAE. Then, get the documents attested from the UAE Embassy and counter-attested from the Ministry of Foreign Affairs in UAE. 1. Approval from the Board of Directors The approval from the board of directors is the first step. They must agree to the proposal of setting up a new branch company as part of the company’s expansion plans. They must pass the board resolution and sign to agree to set up the new branch company in UAE. The Board of Directors can appoint one director to carry out the setting up of the branch company and oversee the operations. 2. Branch Office Registration Following the board resolution, the company can proceed with branch registration. The Company can follow the above-represented steps to secure its business license and register the branch in mainland of Dubai. Aurion will assist you with end-to-end business support services to register your company’s branch office in Dubai in the most comfortable way. For a Free Zone Company with a service License category, the cost of setting up a branch office in Dubai is Approx. AED 30,000. The branch office will have the same name as the Parent Company with ‘Branch’ as the Suffix. It is entitled to conduct all the business activities of the parent company. Types of Branch Offices You Can Operate in UAE? A branch office in UAE can be set up two ways. FIrstly, with the Department

What is a Holding Company in UAE?

A Holding Company is a business structure used to own the outstanding stock of other companies. The Holding Company does not typically produce any products or deliver services. It only controls the group of related companies and manages their legal liabilities. Management can benefit from tax savings by forming a holding company in a tax haven like UAE. How Business Owners Are Leveraging a Holding Company in UAE? Business owners are always looking for ways to protect their business assets. They have developed many strategies over the years of business to keep them secure. One of the most effective ways for unifying businesses that are into diverse sectors and activities is the formation of a holding company. Holding Company in UAE will have 100% ownership of the subsidiary or it can be owning enough stocks or membership interests to control the subsidiary. The Holding Companies are corporates or LLC Companies that do not indulge in any commercial trade activity. The subsidiaries of the holding company will be into a variety of business operations. They would be into manufacturing, selling, delivering services, selling real estate, owning intellectual property, etc. How is a Holding Company Financed? The Holding Company is responsible for deciding where to invest the money. It can also obtain the funds by selling equity shares of the subsidiaries to the public. Also, the revenue earned by the subsidiaries is pumped into the holding company in the form of dividends, distributions, interest payments, rents, payments for back-office functions, and capital investment. How is a Holding Company Used? The holding company structure is used by businesses of all sizes and industries. Most of the publically traded multinational companies are holding companies. It is not only for large business groups that have multiple subsidiaries and companies operating in various business sectors but also for individuals and small companies. For example, an entrepreneur who wants to invest in real estate can register a company and buy the property in its name. The company can be owned by a holding company and the business owner can incorporate new subsidiaries and keep all businesses distinct but unified under the holding company. Advantages of a Holding Company Here are a few advantages of registering a Holding Company in the UAE. 1. Liability Protection It helps to protect the owner and the holding company from the liabilities of the subsidiary companies. Each subsidiary will be a separate legal identity with shareholders and management responsible for the business growth. Hence, the holding company and other subsidiaries will have hedging in case one company has a downturn. 2. Control Assets for Less Money The holding company in UAE can control the subsidiary without owning 100% of the shares or membership interest. Hence the cost of ownership of a subsidiary is lower for the holding company than acquiring the whole subsidiary’s ownership interest. 3. Lower Debt Financing Costs The holding company has the greater financial strength and can obtain loans for a lower interest rate than the operating companies. Also when the business requires capital especially when it is a start-up, the holding company will provide support by distributing funds to the subsidiary. 4. Foster Innovation The restructuring of the company into subsidiaries + a holding company is highly beneficial for the entrepreneur. It could help in routing the funds and channelize business growth without falling flat in case of anyone’s venture fails. Also, it will help in creating breakthroughs from research and innovation on one hand when revenue generation businesses flourish on the other hand. 5. Better Control and Birds-Eye View The holding company will have better management abilities as it is not focused on money-making or business operations but only on managing the subsidiary companies. The subsidiary will have its management that reports the profits and business information to the holding company every month. So, the holding company will have a bird-eye view of what is happening across the subsidiary and take corrective actions quickly when needed. Types of Holding Companies in UAE In UAE, there are majorly two business jurisdictions that offer provisions for establishing a holding company, i.e. The Onshore or Mainland in UAE The Free Zones in UAE Depending on the business structure, the holding company must appoint at least one director or a board director. Can a Holding Company Purchase Properties in Dubai & RAK Emirate? RAKICC Offshore has announced a partnership with RAK Municipality Department for enabling investors to purchase and register properties in the Emirate of Ras Al Khaimah. It has also provided an option for structuring the investments by the formation of a RAKICC Offshore Holding Company. Also, the Dubai Land Department is accepting registration from RAKICC Offshore companies for freehold plots and properties as part of an MOU signed. Investing in properties in the UAE through RAK ICC Holding Company (RAK ICC Holdco) has many benefits, such as: No Paid-up share capital and 100% profits repatriation Re-distribute assets to the holding company for tax purposes. Lower the withholding tax on income and capital gains. Ease of transfer when buying and selling properties. Greater privacy, with no shareholder details on the public register. Easy transfer of domiciliation or continuation. As a shareholder in a RAK ICC Holding Company, you are also able to open a UAE bank account, allowing you to make and accept payments within the UAE, subject only to local taxes. Requirements for Opening a Holding Company in UAE To set up a holding company in UAE the company must follow the below requirements: Setting up a management board that will be in charge of the leadership and decision-making. A shareholder resolution needs to be made. (Aurion will assist you in this process) The Director Board should be formed with at least one director for each subsidiary firm Share Certificate representing the share capital and shareholding pattern for the holding company Passport copies and photographs of the directors and shareholder Business plan and subsidiary company details (Company documents, trade license, etc.) So, in a nutshell, setting up a

Bank Account Opening in UAE – Our Banking Solution Partners

UAE is an investor-friendly destination with world-class business infrastructure, banking facilities, business ecosystem, political stability, improved lifestyle, and more. Bank Account Opening in UAE is the next important step after the successful company incorporation. The robust banking network in UAE enables companies to effectively run their business operations by quickly transacting funds, receive invoice amount, pay suppliers, and utilize the numerous banking services and benefits. Aurion majorly works with the following Business Banking Partners in the UAE to facilitate the opening of a Corporate Bank Account for all our clients. Our team of expert Business Consultants guides the investors to the right Banking Service Provider by analyzing the business requirements. Bank Accounts and Services in UAE that are highly beneficial for Entrepreneurs 1. Emirates NBD Emirates NBD has a Business Banking Package exclusively for clients who maintain an average deposit of at least AED 50,000*. This Banking Service Package is ideal to support business day-to-day needs and a low level of deposit requirements. Note*: If the monthly minimum average drops from AED 50,000; a small penalty will be levied. Benefits Multi-currency Account ( USD, EUR, GBP) Access to smart business online platform for effectively tracking and managing the transactions Dedicated Call Center Support for answering all queries. Wide range of Branches, Cash Deposit Machines across the UAE Bank Account Opening in UAE 1. Business Banking Plus Business Banking Plus is an ideal choice for investors who maintain average deposits of at least AED 200,000. This financial product has a set of additional benefits for the investors like: Dedicated Relationship Manager for answering all your queries Competitive Foreign Exchange & Telegraphic Transfer rates. Unlimited free checkbooks special rates on deposits and investments Discounted or Free charges on daily transactions Priority access to all banking services during branch visits. Note* If the monthly minimum average drops from AED 200,000; an amount will be charged as penalty. 2. Business Banking Select For Investors who maintain average deposits of at least AED 500,000*. The premium business banking Package offers a host of value-added banking services. Key Benefits Competitive Foreign Exchange rates and Telegraphic Transfer rates Preferential rates on Trade Services, deposits, and investments Free or discounted charges on daily transactions Corporate events to help business and free access to a lot more value-added services Note* If the monthly minimum average drops from AED 500,000; monthly an amount will be charged. Corporate Bank Account Opening in UAE To know more about eligibility and documents required for various banking requirements visit the Emirates NBD website. 2. Mashreq Bank Neo Biz Account Mashreq Bank has a tailor-made Corporate Business Account for SMEs and Entrepreneurs. The account opening process is seamless through the Mashreq Bank Website or the Mobile App. Investors can choose from the three business banking accounts. The most popular package is the Basic with a no minimum balance, low monthly maintenance fee, and a host of other benefits. Then there is an advanced corporate banking package with an AED 50,000 average monthly balance, no monthly maintenance fee, etc. It is an ideal choice for small businesses that require financial support to scale up the business effectively. Document Required for Opening Neo Biz Account Trade License Copy Memorandum of Association Board Resolution or Power of Attorney – provides authority to open and operate bank to managers/directors UAE address proof Identity Documents of Owner and Signatories- Passport, VISA, Emirates ID Any supporting documents as requested by the bank (supplier, buyers, and business details, invoice copies, etc.) 3. RAK Bank Business Account RAK Bank has a customized account for business owners and entrepreneurs termed the RAK Business Starter Account. The account opening is a simple two-step process. There are few documents required before you begin the process. Documents Required for the RAK Starter Account Company Trade License Investor or Signatories Passport and Visa Page Copy Copy of the Emirates ID of all signatories Board Resolution, share certificate, power of attorney to authorize the manager/director to operate and manage the account Supplier and buyer details, nature of the business, Shareholder/Investor profile, expected annual turnover Any supporting company documents as a request by the bank personnel (Memorandum of Association, Articles of Association, Share Certificate, Partners/Service Agreement, etc.) All the above documents need to be uploaded along with the application form online (RAK Bank Website). Once the application is through, the bank personnel will review the profile and once the Know-Your-Customer (KYC) Compliance is met, the account opening will be processed. The bank official will meet the entrepreneur to discuss more the product offering and take the authorized signature of the investor/signatory. 4. Banque Misr Banque Misr one of the most popular Banks in Egypt is expanding its presence in the UAE by opening a new branch in Dubai and the UAE headquarters. The Bank aims to provide financial products to entrepreneurs. SMEs and investors to scale up and sustain their business easily. Bank has a wide range of Microfinancing and small-medium enterprise finance options ranging from 5000 EGP to 500,000 EGP catering to the various range of business investments. Documents Required for Corporate Bank Account Opening A copy of the trade license Investor personal profile and identification documents Recent utility bills and existing bank account details Copy of tax residence certificate Last 3 months bank statement and transaction details of the company Copy of last insurance payment receipt (not less than 3 months) Any other supporting documents as requested by the bank personal. Explore the Banque Misr website to more about their financial products. To know more about Corporate Bank Account Opening in UAE, connect with our expert team right away! Contact: Aurion Business Consultants

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