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How To Register A Company In Dubai, UAE?
Accounting 2021-09-15 From: Mr. Abbas

Dubai is one of the famous business hubs and largest financial centers in the world. Dubai is a rapidly developing city in comparison to other middle east cities. The company registration procedure in Dubai is uncomplicated and easy.  But it’s required to know and understand all the procedure steps according to the law.

Company Registration In Dubai

Dubai is the prominent largest city or state in the UAE that allows foreign investors to set up their business in dubai. The Middle East has large extensive oil exporters in the world, apart from this, Dubai has developed the opportunities to ensure that there is regular development. There is no direct and indirect tax on living in dubai.

There is a special allotted area which is known as Dubai International Financial Centre (DIFC), not in dubai but also throughout the middle east. This area brings out the different forms of registration activities relevant to compliance.

When we come to foreign ownership company in DIFC, there is no form that restricts foreign ownership in the company.  Foreign businesses can have full ownership when the director and stakeholder of the company have registered in Dubai. As per commercial company federal law No. 2 of 2015. Outside Company jurisdiction has to obey the requirements of foreign investment. It means the company’s 51% ownership will be under resident of UAE.

With the company reference, the ownership aspect would be categorized on the basis of citizenship. It has a proper legal form which means 51% of the company is controlled by the local person. In 2008 from various sectors these investment restrictions were removed.

When we talk about taxation points, There is indirect VAT (value added tax) with a 5% rate imposed. In Dubai, there is no tax that is applied to the employees. In Dubai only a 5%  rate is applied on the product and service. These are the best employees working in Dubai that attract the foreign company registration in dubai.

Main Regulatory Authority For Company Registration In Dubai.

Its Registrar of the company and registrar can act as a unit of the authority to bring out different forms of compliance and registrations related to companies. Applicants of company registration can be the registrar of Companies.

Area Related Company Formation.

There are two types of areas inside DIFC and outside DIFC. 

  1. Outside DIFC - Companies may be incorporated outside the DIFC. As per Federal commercial company law No. 2 of 2015. A company that is outside the jurisdiction of the DIFC has to comply with the requirements of foreign investment. The company 51% is controlled by the UAE people. This includes the legal form to declare that 51% of the company will be controlled by the UAE nation. The restriction on foreign investment has been removed from several different sectors.

  2. Inside DIFC -  It’s the best suitable option for investors to determine company formation. This area has different benefits which include the company registration process. In this area, there is no restriction for foreign ownership in the company. Foreign shareholders and directors can control the 100% ownership inside the DIFC.

 

Advantages Of Doing Business In Dubai.

  1. Low taxes - In the UAE corporates are not the subject of the tax. There are no income taxes for all UAE residents. There is only VAT with a very low rate of 5%. Except for oil and gas companies and foreign banks.

  2. Dubai is the favorite location for business owners due to low taxes and lots of benefits. Business formation in the UAE allows businesses to easily and comfortably access the GCC countries, Asian Market, Africa, and Europe.

  3. 100% Ownerships - In the DIFC area, the UAE government allows 100% ownership for company registration. Shareholders and investors also have 100% equity shares.

  4. Rules and Regulation - There are no hard rules and regulations to run a business in dubai. Business can be run easily.

 

Disadvantages of Doing Business In Dubai.

  1. Local sponsor - To register a business in the UAE you need a trusted UAE nation sponsor. And the company 51% is controlled by the UAE nation. 
     
  2. Compliance Requirement - Every emirate has its own rules and regulations. UAE registered companies have to comply with the nation and emirates rules and regulations. If you register a business in the mainland then you have to follow mainland rules and regulations.

  3. In 2020 UAE introduced new rules and regulations for mainland registered businesses. UBO (Ultimate Beneficial Owner), shareholders, and directors new rules.

 

Business Registration Process In Dubai.

  1. Have to find a local sponsor which is mandatory to satisfy the Federal Commercial Companies Law No. 2 of 2015 (Companies Law).  The company is controlled 51% by the UAE nation if you are establishing your business outside the DICF area. If you want to set up your business inside DIFC then you don’t need a local sponsor. But finding local sponsors will be beneficial and after some time you can transfer the company.

  2. You have to go to the Department of Economic Development to reserve your business name and also pay the name reservation fee.

  3. Draft the article of association of the Company and draft the memorandum of association. The document will deal with the AOA and AOA will be downloaded from the company registry.

  4. After drafting, submit the drafting with required documents to the Companies Registry and the Department of Economic Development.

  5. Under the company registry, you will receive the incorporation certificate to carry out recommended activities. Now you have to select the license which is important to carry out business. Following license in Dubai

    - Professional licenses, includes  services, craftsmen, professions, and artisans.
    - Industrial licenses, includes industrial or manufacturing.

 

 

Required Documents For Company Registration In Dubai.

  1. NOC from the Sponsor.
  2. Business Plan.
  3. Application form of the Business.
  4. MOA and AOA which is duly notarized by the authority.
  5. Passports of the Managers of the Business.
  6. Bank Reference Letter for Each Shareholder.
  7. Passport of the Sponsor to prove that he/she is a UAE National.

Required document for the industry license apart from above.

  1. Copy of the Feasibility Study
  2. Information related to the Investor
  3. Existing Company Profile

Required Documents for Branch

  1. Copy which is attested related to the Certificate of Incorporation, MOA, and AOA.
  2. Passport Copy and Original Power of Attorney.
  3. Board Resolution of the Company.
  4. Three months bank statement related to the parent company.

LLC Company Formation Fee in Dubai.

 

 

License Fee For Services

License Fee For Trading 

License Fee For General Trading 

 

Sole Establishment

Civil Company

Limited Liability Company

Limited Liability Company

Trade Name Submission

AED 776.50

AED 776.50

AED 776.50

AED 776.50

Initial Submission Approval

AED 256.50

AED 256.50

AED 256.50

AED 256.50

Local Service Agent Agreement

AED 441

AED 4410

AED 650

AED 650

Virtual Office with Ejari & Tenancy for 1 year

AED 10,000

AED 7,000

AED 10,000

AED 10,000

License Fee

AED 8000

AED 9000

AED 13,000

AED 30,000

Total Dubai Company Setup Cost

AED 19,474

AED 17,474

AED 24,683

AED 41,683

 

Company Investors Visa  LLC Cost without medical health insurance.

 

Descriptions

Fee in AED

(Inside Country)

Fee in AED

(OutSide Country)

Entry permit

AED 1,180

AED 530

Change status

AED 675

-

Medical Urgent

AED 870

AED 870

Emirates ID (3 years)

AED 370

AED 370

Visa stamping Urgent

AED 930

AED 930

Total

AED 4,025

AED 2,700

 

Employee Visa  LLC Company Cost.

 

Descriptions

Fee in AED

Quota Application

AED 83

Quota Fee per person

AED 100

Quota Inspection

AED 500

Offer letter

AED 83

Work permit

AED 83

Labour Card charges - (Category A/B/C/D)

AED 1,500 / AED 2,103 /

AED 2,700 / AED 3,400

Entry permit Inside Country

AED 1,185

Change status

AED 675

Medical VIP

AED 875

Emirates ID

AED 270

Labour contract typing

AED 83

Labour contract submission

AED 83

Tawjeeh Training

AED 160

Visa stamping

AED 685

 

We hope this information helps you if you need help then you can contact us and also get our service.

 

 

 

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Accounting Standard For Private Companies
Accounting 2021-09-11 From: Mr. Abbas

Accounting is very important for the business. It aids the business in reducing expenses and avoiding unwanted expenses. A proper accounting system enables the business to give proper financial insight to the directors, stakeholders, Investors, and senior people. People are establishing their business in Dubai, UAE because of the tax-free system, state-of-the-art infrastructure, and various advantages in UAE that attract business owners to set up their business. As we know all accounting is a major part of the business and Companies also can’t run effectively without effective accounting. 

There are different accounting standards for the different industry businesses and develop the standard that will help the company to keep clear the future problems. Accounting standards also play a major role in enhancing the company’s goodwill. 

Accounting Standards and Definition

International Financial Report Standard (IFRS)

IFRS is an accounting standard that is needed to be followed by the company. The International Accounting Standards Board (IASB) and the IFRS Foundation accounting standard make financial statements understandable across the countries. This standard of accounting enables the different countries’ financial statements to be easily compared with each other to find new and better avenues of investments.

The IFRS specifies different kinds of techniques and methods of recording, defining, reporting, and maintaining and makes an accounting language or methods which is used all over the world and also provides consistency.

The IFRS Accounting standard is used by around 120 countries in the world. Countries companies are mentioned in the report that they are using IFRS standards in accounting. The United States of America and Canada don’t use the IFRS. Canada has their own accounting standard system and the USA uses the GAAP.

Generally Accepted Accounting Principles (GAAP)

Gaap is also a set of standards, accounting principles, and procedures issued by the FASB (Financial Accounting Standards Board). It is a combination of the commonly accepted method or way of reporting and recording accounting information and authoritative standards set by the policy board. GAAP provides and improves the clarity, consistency, and comparability of financial information.  GAAP makes it easier for the investors to analyze and check the useful information of the company from the financial statement.

GAAP is also used by many countries and developed by the International Accounting Standard Board (IASB) and Financial Accounting Standard Board (FASB). GAAP implementation requires good accounting service because it includes the revenue recognition, balance sheets, and outstanding classification of items and shared estimations for public disclosure.

 

Different Between IFRS and GAAP

Currently, For accounting communication globally more than 100 countries in Asia and the European Union are using IFRS. But the USA is still using GAAP. Canada has its own accounting Standard System. 

 

 

S.No.

Generally accepted accounting principles (GAAP)

International Financial Report Standard (IFRS)

1.

In GAAP accounting standards, Inventory reversal is prohibited.

IFRS allows the reversal of inventory in critical conditions of the business.

2.

Implementation cost is expensive

Development costs can be capitalized in IFRS.

3.

The USA uses the GAAP accounting Standard

More than 100+ countries use the IFRS accounting standard.

4. 

It is developed and introduced by the Financial Accounting Standard Board (FASB)

It is approved by the International Accounting Standard Board (IASB)

5.

GAAP supports Last In First Out (LIFO).

IFRS doesn't support Last In First Out (LIFO) 

 

International Financial Report Standard (IFRS) in UAE.

Securities and Commodities Authority (SCA)  and the central bank of the UAE have made the IFRS accounting standard the mandatory accounting system in UAE. The other various non-regulated bodies have to follow the IFRS. All the registered companies under Dubai Financial Market (DFM), NASDAQ Dubai (Formerly known as DIFX), or Abu Dhabi Securities Exchange (ADX) are required to maintain their accounts as per IFRS. Onwards 2013 all the legally listed companies in the Abu Dhabi Securities exchange have to submit the IFRS financial statement. 

 

All banks in UAE and even central banks need to follow IFRS accounting standards and publish financial accounting statements according to them. However, IFRS is not required for those companies that are not listed for various exchanges but implementing IFRS is considered a good practice of accounting. If you are thinking and wanting to establish a business in UAE or looking for the best accounting service for your business, you have landed at the right place. Risians Accounting and auditing is a leading accounting firm that is known for its quality and effective services. Risians Accounting has FTA-approved chartered accountant who has 30+ years of working experience in accounting, auditing, Business formation, and taxation that is the biggest reason for leading a firm in Dubai and also keeps us 1000 steps ahead from the other accounting firm. Make us helping hands for your business success and save hard-earned money on taxes.

 

 

 

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Everything About Business Environmental Audit
Auditing 2021-08-27 From: Mr. Abbas

Environmental Audi is a tool for auditing that helps businesses to analyze and examine their environmental performance to identify how management compliance and the working process perform. Today. Environmental auditing is important for every business, it doesn’t matter what size and type of business you are in. Understanding environmental performance is complicated in comparison to understanding other functional areas like financial and commercial. The environmental performance impact is not always 100% clear from normal performance. That’s why an environmental audit is conducted on a regular basis to identify and measure the performance outside normal performance.

 

What are the benefits of Environmental Auditing?

There are different benefits of environmental auditing based on your objective and scope of auditing. 

  1. To identify how businesses meet the legal requirements.
  2. To Demonstrate environmental responsibility.
  3. To demonstrate environmental policies are implemented. 
  4. To identify and understand interactions of products, services & activities.
  5. Meeting specific statutory reporting requirements.
  6. To identify and understand environmental risks are managed appropriately.
  7. To develop and implement an ISO 14001 EMS.
  8. To save money and improve environmental performance.

 

Types of Environmental Auditing

There are mainly three types of environmental auditing. These types of auditing are very helpful and organizations also rely on them.

  1. Management Environmental Auditing -  Management performs the environmental auditing to identify and measure their environmental performance are meeting expectations or forecasting.

  2. Compliance Environmental Auditing -  We conduct this type of auditing to identify and understand, review the site or company's legal compliance status (which can be important and costly).

  3. Functional Environmental Auditing - To focus on the environmental element or impact, such as water or electricity.

 

Who Can Conduct an Environmental Audit?

As per ISO 19011:2012 guidelines, environmental auditors should have personal attributes like perceptiveness, open-mindedness, ethics, tact, and understanding of the procedure, principal and techniques. The auditor should have clear objectives which are auditing and how it applies in different organizations. The team leader of the environmental auditing team should have the ability to plan and resources effectively and also have good leadership and communication skills. 

When you need auditors you should consider the above-given lines to find the best auditor who has adequate skills, knowledge, and experience.

 

When Do We Need To Conduct An Environmental Audit?

For environmental policy and performance environmental audit is very important for the organization. There are several environmental rules and regulations that apply to every business. Is your business in environmental compliance? Do you have all the permits? You can’t know until you don’t get the environmental audit done by the auditor. If you are not an expert in environmental auditing then you need to get an environmental audit from the best audit firm. So that You can provide documents on which compliance under you are working to inspectors when they visit your sites.

 

How To Perform An Environmental Audit?

In this audit, there are 3 main stages, or we can say phases.

  1. Pre-Audit
  2. Audit
  3. Post-Audit

 

  1. Pre-Audit

    - First, We select the people who have good experience and skills to make a good audit team.
    - Make the audit plan
    - Review and request the document which includes Permits or permit applications, Production Records, Reports, and previous audit resort.
    - Prepare the list of questions
    - Begin to fill in the Disclosure of Violation Table as issues are identified.

  2.  Audit 

    - Make ground rules
    - Determine and identify the issues
    - Daily information to keep informed.
    - Documents review like  Policies, Compliance, Training, Air/Water/Waste/Noise controls, monitoring and records, Emergency Response Procedures, Response to Complaints, Check documents for completeness, consistency, legal compliance, and whether it’s up to date.
    - Perform site inspection.
    - Check the operation for compliance.
    - Keep simple processes
    - Interact with employees.
    - Discover issues of concern
    - Conduct the last meeting with a report and discuss the issue and find an effective solution.

  3. Post-Audit
    - Make audit reports and Disclosure of Violations.
    - Present the list of issues and areas to concern. 
    - List required action and follow-ups.

To conduct a successful environmental audit, we have to follow the above mentioned points. If you still have any questions and doubts then contact us. We are here to help you.

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Internal Auditing Tips And Tricks By Risians Accounting
Auditing 2021-08-24 From: Mr. Abbas

Internal Auditing is the best tool for business management to evaluate and improve the business working processes. It defines which are working well and which are not and how you can improve. In order to achieve business goals, internal auditing plays a vital role to keep working business processes and procedures effectively. In this blog post, we are going to share simple and easy-to-use tips and tricks that can make your internal auditing process simple and easy.

 

Why Is Internal Auditing Worthy?

Internal Auditing is worthy for several reasons.

  1. The Internal Auditing report provides the proper insight about the processes and procedures of the business that enable the new opportunities to improve business processes and procedures in order to achieve the business goal.
  2. It helps us to find the root cause of any processes and procedures problems.
  3. It saves time, money, and effort. And etc.

Tips and Tricks To Conduct A Successful Internal Audit.

  1. Set Your Clear Goal Towards Auditing - First you have to ask yourself what and why am I going to do and achieve? Create the solid based on determining business processes like production, purchasing, development, warehousing, etc.

  2. Prioritize - Internal auditing is part of the whole organization. You have to set priority to determine which process component needs your attention urgently.

  3. Ask The Right Question - Think carefully about the issues in the planning states so that you can ask the appropriate questions with the associated people of the process. For Example. What is going on currently?How is it running? What is the area of problems and risks? What is the objective and how are we far from it? And etc.

  4. Use The Right Tool - While selecting a tool you need to keep in mind the department process and objective so that you can perform effectively and deliver good results by your auditing.

  5. Performing Internal Audit  - To conduct a Successful internal audit we need a variety of information from different sources to ensure that the process is being followed correctly. To get this follow this:-
    -Learn the expected procedures
    - Observing procedures
    - Check the records and similar documents
    - Interact with the other members of staff

  6. Follow Up - You should verify all the preventions and corrective action during internal auditing so that you can ensure that you are on the right way. In some exceptional cases, it may not be done, it may need time or change to the corrective action.

  7. Documents - It is an important part of internal auditing to make sure that all the relevant documents are correct and maintained properly. The document may be outdated formatted to change the address to non-conformity. You can tell them to correct them so that you can perform an audit with the right information in the right format.

Internal Auditing Mistake that you should Avoid.

  1. Often auditors forget to add value so that you can put value without wasting time.

  2. Most auditors don’t start planning before the day of auditing. They start planning later which consumes a good amount of time.

  3. Don’t cover your report with the No. of points. Keep your auditing report easy to read and simple so that management can use it effectively because no one loves to read a lengthy report.

  4. The auditor does not prepare yourself for an unexpecting thing when it appears they take time to resolve. Auditors should prepare some plans for unexpected things so that they make a good image in the eyes of management.

 

We hope these tips and tricks help you in internal auditing. If you are looking for an auditing service we would like to help you. If you have any questions, doubts, and need consultation then feel free to contact us it would be our pleasure to help your business.

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How To Prevent Businesses From Financial Crime?
Accounting 2021-07-29 From: Mr. Abbas

Every Business has to face the risk of financial crime. Due to digitization growth, financial crime is becoming a more crucial issue for global businesses like online banking. It’s become a game between financial criminals and authorities. Authorities always try to prevent crime in the organization and Criminals try to make new different strategies to perform the crime and harm the organization.

 

Financial crime is also a critical challenge for banks, individuals, and institutions. Financial authorities and regulators always work to introduce new rules and regulations to stop, combat and prevent financial crimes. The most common financial crime forms face money laundering, terrorist financing, fraud, tax evasion, and corruption.

 

What Is Financial Crime?

Over the last 3 years, financial crime is increasing and becoming a significant concern for governments in the world. Financial crime is the crime where one party takes the benefits of the crime financially and the second part faces financial loss. It is committed against the property and money for their own profit that belongs to someone else by the individual and organization. It can happen in several different forms and can happen anywhere in the world. In simple terms, someone or an organization performs an illegal activity to take over the property, money, etc for their financial benefits that belong to others. 

 

What are the main types of Financial Crime?

We have mentioned below the types of financial crime and their short definitions.

  1. Money laundering - It is the process of changing a large amount of the money which is earned by criminal activity.
  2. Terrorist Financing - Terrorist financing is the illegal smuggling of cash that is delivered to the terrorist. It’s linked to money laundering.
  3. Fraud - Accomplished property or money by deceiving someone else.
  4. Electronic Crime or Cybercrime - It’s committed by the cybercriminal and hacker to damage someone’s security and computer.
  5. Bribery And Corruption - Giving and receiving unearned money. Giving and receiving bribes.
  6. Tax evasion - Avoid paying the tax by hiding real income.
  7. Forgery - Use of false documents, altering, and false writing for our benefits.
  8. Identity Theft - Steal some identity or financial information to commit fraud.
  9. Counterfeiting - Use someone else's identity for manufacturing or distributing of goods.

Who Commits The Financial Crime?

Before talking about the person who performs the crime in the business, let’s move from the topic and think, you are walking on a road and suddenly someone came with a weapon or knife to steal money. Same in the business employee, a business leader suddenly commits the crime in the business individually or with the collaboration of the outsider of the business.

  1. Employees - Employees can commit a financial crime when they have access to confidential and important information about the business and they know how to control to perform the crime.
  2. Business leaders - Senior managers or executives don’t present the proper and complete financial data and prepare a plan for the future to steal business funds and assets. 

  3. Employee collaboration with the outsider Fraudsters - Sometimes employees meet with Fraudsters or Fraudsters meet with the employee to perform the crime in the business. By doing this they can easily carry out the crime easily to achieve bigger and greater harm to a business.

  4. Customers and suppliers - Supplier and customer can perform a criminal activity in business by using various forms of crime.

How To Prevent Financial Crime?

You would have heard the quote that “prevention is better than cure”. Of course, prevention is better than cure. Business owners should give priority to prevention so that they will not have to face any financial crime. Some important tips to prevent financial crime.

  1. Internal Audit - The most common method is internal audit. Businesses should conduct internal audits yearly or half-yearly. It will provide you with a correct financial report and several other important pieces of information about the business. It will also show you risk and crime are there or not.

  2. Law - Every country in the world has its own rules and regulations. Every business owner should keep updating himself about the change in the laws that are relevant to the business.  Businesses should ensure that we are doing our business as per government law and regulation. If we ignore applying in business, the fraudster can take advantage of performing the crime in your business organization.

  3. Risk Assessment Right - The policy to stop financial crime is to try to get your well-thought risk assessments right. It’s true that all businesses have finite resources. But by focusing on your key risk area you can use your resources well to prevent crime.

  4. Management - It’s the responsibility of the senior management to keep an eye on the risk area of the business. Business managers should provide proper and complete reports about the business, which help the management, understand the business's actual position and take effective steps.

  5. Right Team - Police, rules, and regulation have not only jobs to prevent crimes, but it also includes the right team of procurement, business development, HR, accounts, customer relations, etc. So that risk from all perspectives can be identified early and easily.

  6. Training of the employees - Keep updating and training your employees about business crime forms, prevention policy, and strategies. So that they can easily identify the crime and combat the crime.

  7. Use of Resources -   Use sophisticated resources to identify the clear picture of the threat and its source easily and quickly.  By using it you can detect the crime before getting any harm in business.

  8. Clients and Supplier Deals - Calculate and monitor the client's and supplier's transactions in different ways as you usually do to avoid crime. It allows firms to find suspicious activity and gives warning signals in advance for the future.

  9. State Law - Every state of the country has different laws regarding financial crime and business. Always monitor the state law and new changes. Implement the new changes in your business that will secure the firm reputation and save you from fraudsters.

If you need any kind of help regarding financial crime or other related issue regarding accounting, Auditing and Taxation then  you have landed right place. Risians Accounting team has good expereince to tackle these kind of issues. Get the free consultation. 

 

 

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