UAE & Basic Needs
Monday, August 31, 2015
Sunday, August 30, 2015
Important Information Regarding Visa Cancellation without the presence of sponsor
for every visa in UAE there always is a sponsor ( simple words can be said a guaranteer ), sponsor can be a local UAE national (for sponsoring maids, driver, e.t.c) or can be a company (sponsoring employees, labors) or can be an individual resident of UAE other than uae nationals (husbands sponsoring family, parents, friends)
For every residents visa (domestic workers, labor, employees of different professions, family) signature and willingness is a must of sponsoring person/company. This willingness is not only required to get visa but also for its cancellation. Sponsored person cannot just directly cancel their visas without involving the sponsors.
Normally procedure of cancelation of any visa is,
Application typed from any typing center for visa cancelation
One photograph of the person to be canceled
Passport and residence copy (residence is visa page pasted as a sticker on passport)
Passport and emirates id copy of sponsor (if sponsor is an individual)
License copy (if sponsor is a company)
With all these papers, person/company’s pro can visit immigration department and cancel the visa, immigration department check the status of the person to be canceled regarding any blacklist issue e.t.c and cancel the visa.
There are some cases under which sponsor do not cancel or not there to cancel the visa of sponsored person and without any involvement of sponsor it really is very difficult to cancel the visa through normal procedures. Under such cases a special procedure is there in immigration jaffliya to be performed.
These cases can be, husband divorced wife and wife was on husband sponsorship and now her husband is not willing to visit immigration to cancel her visa, so she should get canceled and change her visa if she needs to stay in U.A.E.
for every visa in UAE there always is a sponsor ( simple words can be said a guaranteer ), sponsor can be a local UAE national (for sponsoring maids, driver, e.t.c) or can be a company (sponsoring employees, labors) or can be an individual resident of UAE other than uae nationals (husbands sponsoring family, parents, friends)
For every residents visa (domestic workers, labor, employees of different professions, family) signature and willingness is a must of sponsoring person/company. This willingness is not only required to get visa but also for its cancellation. Sponsored person cannot just directly cancel their visas without involving the sponsors.
Normally procedure of cancelation of any visa is,
Application typed from any typing center for visa cancelation
One photograph of the person to be canceled
Passport and residence copy (residence is visa page pasted as a sticker on passport)
Passport and emirates id copy of sponsor (if sponsor is an individual)
License copy (if sponsor is a company)
With all these papers, person/company’s pro can visit immigration department and cancel the visa, immigration department check the status of the person to be canceled regarding any blacklist issue e.t.c and cancel the visa.
There are some cases under which sponsor do not cancel or not there to cancel the visa of sponsored person and without any involvement of sponsor it really is very difficult to cancel the visa through normal procedures. Under such cases a special procedure is there in immigration jaffliya to be performed.
These cases can be, husband divorced wife and wife was on husband sponsorship and now her husband is not willing to visit immigration to cancel her visa, so she should get canceled and change her visa if she needs to stay in U.A.E.
Another case can be when company is not willing to cancel the employee and employee directly goes to immigration department.
Under such cases, person have to visit department number 14 (complains & feedback section) in immigration jaffliya. There person has to submit all the papers and open an immigration case regarding cancelation, they will take all the details about the sponsor (numbers, e.t.c) and your details as well. And they will proceed with the case. They will call the company to come and provide sign if you are on right, if other party is not available to be contacted than immigration will wait for 3 days and after on will give you a call to come and cancel your visa from section 15 in immigration jafliyya. But only if there is not any other case pending against you, and you prove them if other party cancels you, you already have an offer letter to get new job and visa. This whole process takes approximately 5 working days.
Under such cases, person have to visit department number 14 (complains & feedback section) in immigration jaffliya. There person has to submit all the papers and open an immigration case regarding cancelation, they will take all the details about the sponsor (numbers, e.t.c) and your details as well. And they will proceed with the case. They will call the company to come and provide sign if you are on right, if other party is not available to be contacted than immigration will wait for 3 days and after on will give you a call to come and cancel your visa from section 15 in immigration jafliyya. But only if there is not any other case pending against you, and you prove them if other party cancels you, you already have an offer letter to get new job and visa. This whole process takes approximately 5 working days.
Thursday, June 18, 2015
cost to establish new license in dubai
Almost actual, yet approximate cost and Procedures to establish a new business in Dubai
When I speak about cost, I actually mean different elements of it
Almost actual, yet approximate cost and Procedures to establish a new business in Dubai
When I speak about cost, I actually mean different elements of it
1. Licensing /operational permit cost of a business
2. Cost of making physical office (rent, fit out, decoration)
3. Cost of manpower (how many employees to be hired)
4. Marketing cost to enter in local market.
Before providing you a cost estimate I would like to define all the procedures/steps for establishing new license
Procedures to establish a new business
Cost of making new license vary depending on the activity and legal form of the license to register. Detailed procedures/steps and costs related to them to establish/register a new license is as under:
Trade Name
Select a name of your license; keep different options for the name as you cannot just keep any name of any new license. You have to get it approved from department of economic development, department is the sole authority to give you approval for your decided business name. Name can be rejected due to following reasons:
Name already exist in the market under registration of department
Name is not sufficient to be allowed
Name does not match with the activity to be performed under it (a company in a business of trading products choose a name like products services is not appropriate and allowed. It must be something like products trading. Service means repairs maintenance e.t.c and trading means buying and selling)
Documents required to reserve a trade name
Passport copies of all the partners, their visa/residential status, emirates ids of resident partners, and some chosen names
Take all the papers and names list to tasheel or ontime office and they will register your trade name under DED (department of economic development) . You can also reserve a trade name online if you have an online eservices id of DED
Initial Approval
initial yet very important step of registering a license, under which the capability to get in the license of all the partners is seen, their background checks if any, security checks if any, objections if any, NOCs if any. This also is the step where a separate personal identification number is been allotted to every partner, which in future represent them everywhere. This is the process where legal form of the license is been defined (LLC, Sole Establishment, Civil Company)
Initial approval can be rejected due to following reasons:
One of the partner including local UAE National partner (which is a must for every mainland license) having any issue with government, any fine, any objection
One of the partners having any criminal record any pending case
Documents required for an initial approval
License Application typed and signed, Passport copies of all the partners, emirates ids if any, family book of local partner, visit visa copy if one partner is on visit visa, NOC letter from the company in which any partner already working as employee, stating that company don’t have any objection if its employee get in the license as investor/partner/owner
Take all these documents to tasheel or ontime office anywhere in dubai and get done with your initial approval. Initial approval can also be issued before selecting any trade name of the company
Stamp
A company stamp can be made after trade name and initial approval, which is required at the time of issuing license and further on every transaction of license with departments. Copy of trade name, initial approval, and copy of local partner’s emirates id is enough to get a stamp. Not every typing center issue stamp, you can get it urgently in 30 minutes, from presto offices in tawar center, minutes shops in mirdif city center and deira city center malls. A P.O.Box number is also required on a stamp, which you can get from emirates post office by showing them copy of your initial approval paper and trade name
Court papers Typing
After trade name and initial approval, comes the step to make an agreement about the company, and between partners according to the legal form of the license to be register.
For LLC (Limited Liability Company) llc agreement is been made which defines all the information regarding company, details about the owners/partners/manager of company, profit and loss distribution in the license, ownership distribution of partners. A sample llc agreement is attached in the photos for a better idea about it.
For Sole Establishment (company owned by a single person), if the company is to be registered under 100% owner ship of UAE National than there is not any agreement needed to be signed or made, if the company is to be registered under 100% ownership of expatriate partner (partner who is not UAE National) than a Service Agent Agreement is to be made defining that local partner is only a service agent of the company and for it he will be paid a fixed amount annually.
For Civil Company (company owned by more than one expatriate partners) two agreements are to get typed, one agreement called partnership agreement which define ownership and profit & loss among all the expatriate partners and second agreement a service agent agreement between local partner and expatriate partners (same as under sole establishment case)
Documents for Agreement
Copy of trade name and initial approval, passport & id copies if any, take these papers to any of the typing centers in dubai and they will type and print it and furthermore will get it attest from a legal translator if the agreement is been typing in English and Arabic both. If agreement is only in Arabic language, it does not need to be attested from legal translators. Normally 4 sets of one agreement are made, as one original set is been kept by notary public department for records, one set is required for DED department at the time of issuing license, one set is to be with local partner and one set with all other partners.
Notary Public (Normally knows as Court)
After the typing of agreements all the partners need to get this attested by Notary Public Dubai Courts commercial section. All the partners are first required to personally get present in front of judge and sign the agreement, after sign the agreement is to get stamped from notary public section by paying the fee of notary public which the judge write on while taking signs from all the partners.
Ejari / Tenancy Contract of office
Partners can get an office space on rent after initial approval, going through court agreement is not necessary for getting an office. After taking office space, make the tenancy contract under the name of company and register its ejari with land department dubai. Ejari is a must to register every tenancy contract in order to further use it in your license; normally the landlords or their agents assist in making tenancy contracts and get them register for ejari
License
After trade name initial approval, court and ejari comes the step to get the license printed from Department of Economic development (DED). Take the application typed for initial approval, trade name, initial approval, one set of original notary public agreement and ejari to tasheel, ontime or directly to Economic department office. They will check in the system all the papers and after on if no objection, will issue payment voucher for issuance of license. This voucher can be paid in bank, post office tasheel department and even online using a credit card. After paying the fee they will issue you license
All above mentioned steps were to get the license, after the license every new company/license is to be registered with two main departments, immigration and labor department. This registration is done through establishment cards (immigration establishment card & labor establishment card)
Immigration establishment card
This card is a registration of every new company with immigration department to issue visas (investor, employment) under sponsorship of company.
Documents required for immigration establishment card
Application (available at every typing center), License copy, agreement copy, ejari copy, copy of passport, emirates id for all the partners who are to put their name in the card with their signs, so in future they can issue visas from immigration by signing any of the partner who are on the card, and location map (even a drawing by hand) of the company showing where your office is situated in dubai
Visit visa holders cannot add their name in immigration card; they first have to change their visa to investor/partner only than their name can be added to immigration card. This card is a must to get eligible to issue any visa from immigration on the license
After typing of card application stamp it using company stamp, take signature of all the partners who are to be in card on the back side of card under their names, local partner is to sign on both of the sides of application card (front with stamp, and back side under his/her name). Take all mentioned documents to immigration department jafliya, go to establishments section in section 2 of jafliya and they will issue your immigration card
If you need to get investor/partner visa of all or any partner you don’t have to go through labor establishment card (which is to open employment visas with labor department), after getting immigration card you can apply for partner visa (get entry permit application typed from any typing center, seal it with company stamp and get the signature of any of the partners among those who are in the immigration establishment card, attach license copy, immigration card copy, passport copy of partner who’s visa is to get, visit visa copy if the person is on visit visa, cancelation paper copy if the person canceled his old visa and transferring to partner visa, court agreement copy)
Labor Establishment Card
After being done with immigration card, comes the final step of company formation which is labor card to get your company register with labor department so in future you can hire employees.
Labor card in fact labor department is most critical element of every company established in dubai, there are many formalities and procedures for it. It is not as simple as immigration card to add names of every partner on the card so every partner gets the authority to represent the company with labor department, every partner who wishes to add his name in labor establishment card also called labor file of company, needs to go through an undertaking from local UAE National partner in court, this undertaking is called (iqrar tahood, taukeel iqrar) in English form 2 (a sample is attached for your reference in images)
Documents required getting labor establishment card
Application card typed from any typing center, license copy, passport copies, emirates id copies of all the partners who are to be in the card (form 2 from court is must for every expatriate partner to have authority to sign in labor department if only local’s name is to be in the labor card than there is not any need to go through the undertaking), agreement copy, location map issued by department of municipality (check the landlord or agent from whom you have taken office for a location map) or you can submit a hand drawn copy of location map, immigration establishment card copy, sign and stamp of company
Take all the documents to tasheel center, buy an e dirham card (in tasheel department almost every transaction of labor you need an e dirham card) deposit some money in it, go to any counter with token submit all the papers. Tasheel department will put your transaction by issuing personal number of local sponsor and all other partners who are in labor card, you will then have to take all these papers to labor main office in AL Qusais for the activation of your new labor file. Labor department will allot a number to your company which will represent you for all your transactions with labor.
These are almost all the basic procedures every new license goes through, obviously there are other complications as well according to the chosen activity of any license to start, there are some specific approvals required for specific businesses which we will clear in other posts. And I definitely cannot post all the concerned details in only one post, is why consider this a basic but detailed procedures summary to establish a new license in dubai U.A.E
Tuesday, May 5, 2015
Dubai as an Investor
There are two zones in UAE to start and run a business
1. FREE ZONE
There are many free zones in UAE from where you can get a permit to operate JEBEL ALI FREE ZONE – DUBAI WORLD CENTRAL – SHARJAH FREE ZONE – RAS AL KHAIMAH FREE ZONE – AJMAN FREE ZONE
These zones are different according to activities permitted to perform and companies to establish. All of above mentioned zones would cost you around 30 to 35,000 AED for your desired products to export. In some areas you will have to deposit an amount of capital amounting around 200000 AED before preceding your license, and some areas does not require this deposit which is useable only after the completion of license.
If you wish to proceed in Dubai you must go with Dubai free zones rather than of Sharjah , Ras Al Khaimah and Ajman.Some of main benefits of free zones are:
100% foreign ownership: in comparison to non-Free zone areas where majority local partnership is required.
0% corporate tax for a period of 50 years, a concession that is renewable.
Unrestricted repatriation of capital and profits
0% import or re-export duties
0% personal income tax
No currency restrictions
No restriction on hiring foreign employees
For your proceedings by keeping in mind the initial cost I would recommend Dubai market and Dubai based free zone of DUBAI WORLD CENTRAL under which you get these advantages;
No capital deposit required - No visa deposit required - No bank letter required - No proof of residency - No presence required of the shareholders and the main one that you can capture bigger market of Dubai.
Main weakness of free zone company is that under every free zone license you can only work in the specified area which does not really an issue as far as you are just exporting, but would be a major limit while you will in future plan to trade in the UAE market.
Another weakness is that under free zone license companies don’t get any legal support from mainland legal departments as free zone authorities are only legal head for those licenses
2. Main land companies
These companies have their big time advantages as well but only with a plan to settle in UAE, so investor would have all the rights to reside here and all other supports legally can be availed for business. And to work/trade in the whole of UAE even if clients are from free zone or any other mainland company, giving you a bigger market to trade in but again only if you need to settle and earn from this market
Main advantages of these companies are:
A bigger market to trade in with no boundaries
All the legal support and facilities from UAE Government
A recognized status of residence
Cost of main land license would also be around 40 t0 45,000 AED as per your desired activities. You almost get all same benefits I mentioned for free zone, 100% ownership, 100% profits, no taxes e.t.c
Mainland companies are a bit restricted to operate without taking specific approvals and have to face involvement of government departments as when we have to take support from any government we have to follow all the rules too.
You can own a limited liability company (LLC 49% owned but only in papers, you still are 100% owner of profit) or a Sole Establishment (100% owned)
A bigger misconception for doing business in UAE about involving a local uae national person is just for papers and to present a business/investor in Government departments. He under any company has no right on profit or business operations
1. FREE ZONE
There are many free zones in UAE from where you can get a permit to operate JEBEL ALI FREE ZONE – DUBAI WORLD CENTRAL – SHARJAH FREE ZONE – RAS AL KHAIMAH FREE ZONE – AJMAN FREE ZONE
These zones are different according to activities permitted to perform and companies to establish. All of above mentioned zones would cost you around 30 to 35,000 AED for your desired products to export. In some areas you will have to deposit an amount of capital amounting around 200000 AED before preceding your license, and some areas does not require this deposit which is useable only after the completion of license.
If you wish to proceed in Dubai you must go with Dubai free zones rather than of Sharjah , Ras Al Khaimah and Ajman.Some of main benefits of free zones are:
100% foreign ownership: in comparison to non-Free zone areas where majority local partnership is required.
0% corporate tax for a period of 50 years, a concession that is renewable.
Unrestricted repatriation of capital and profits
0% import or re-export duties
0% personal income tax
No currency restrictions
No restriction on hiring foreign employees
For your proceedings by keeping in mind the initial cost I would recommend Dubai market and Dubai based free zone of DUBAI WORLD CENTRAL under which you get these advantages;
No capital deposit required - No visa deposit required - No bank letter required - No proof of residency - No presence required of the shareholders and the main one that you can capture bigger market of Dubai.
Main weakness of free zone company is that under every free zone license you can only work in the specified area which does not really an issue as far as you are just exporting, but would be a major limit while you will in future plan to trade in the UAE market.
Another weakness is that under free zone license companies don’t get any legal support from mainland legal departments as free zone authorities are only legal head for those licenses
2. Main land companies
These companies have their big time advantages as well but only with a plan to settle in UAE, so investor would have all the rights to reside here and all other supports legally can be availed for business. And to work/trade in the whole of UAE even if clients are from free zone or any other mainland company, giving you a bigger market to trade in but again only if you need to settle and earn from this market
Main advantages of these companies are:
A bigger market to trade in with no boundaries
All the legal support and facilities from UAE Government
A recognized status of residence
Cost of main land license would also be around 40 t0 45,000 AED as per your desired activities. You almost get all same benefits I mentioned for free zone, 100% ownership, 100% profits, no taxes e.t.c
Mainland companies are a bit restricted to operate without taking specific approvals and have to face involvement of government departments as when we have to take support from any government we have to follow all the rules too.
You can own a limited liability company (LLC 49% owned but only in papers, you still are 100% owner of profit) or a Sole Establishment (100% owned)
A bigger misconception for doing business in UAE about involving a local uae national person is just for papers and to present a business/investor in Government departments. He under any company has no right on profit or business operations
FAMILY VISA DUBAI
Family Visas Dubai
Been having the queries regarding family visas, and is why
felt the need to post this as for residents here in UAE it’s kind of a
nightmare (which I don’t agree).
There is just a need to
understand the procedures & laws regarding family sponsorship. Speaking
about law, one thing we all should keep in mind that law is to facilitate the
residents not to create problems. We must put our eye on darker sides as well
while considering any law or procedure very odd to follow.
Basic salary requirement of
an employee to sponsor wife & kids
A basic salary of 4000AED is
quite sufficient to sponsor wife and kids in UAE, or a basic salary of 3 to
3500 + stated in the labor contract that family accommodation is provided by
the company. Labor contract is the contract registered in ministry of labor
between employee and its sponsoring company, as to sponsor family salary
certificates on company letterhead is not acceptable (but under some special
cases).
Designation of employee to
sponsor wife & kids
Designation of employee stated on
employee passport also matters while sponsoring wife & kids, some
designation like driver, cook, tailor etc. need to deposit a refundable
security of 5020AED to sponsor their wife & kids
Documents required sponsoring
wife & kids
Passport copies of all including
the person sponsoring and family which is to be sponsored, visa page copy of
sponsoring person, emirates id copy of person sponsoring, labor contract salary
certificate for evidence that salary is according to requirement, attested marriage
certificate to sponsor wife, attested birth certificate to sponsor kids (in
case birth certificate is missing the person can get an affidavit from its
concerned embassy in UAE), flat/villa tenancy contract proving that you are not
only sponsoring your family but you also are capable to keep them good while
you bring them here.
Sponsoring wife & kids
by an investor/partner visa holder
Investor/partner visa which is
been considered as a freelance visa, as there is not any registered company
having responsibility of issuing you a visa by keeping a bank guarantee on your
behalf and by representing you in government departments. A private investor is
free as he/she represents themselves to departments personally and is why rules
are a bit different for them. On an investor visa there is not any labor
contract and salary requirement, is why there comes a requirement to deposit a
refundable security of 3020 against each family member. In some cases depending
on the partners in license in which the investor has invested, a requirement of
bank statement also required. All other requirements are same as mentioned in
the category requirement for an employee.
Sponsoring husband by the
wife working in UAE
Requirements regarding documents
are same as mentioned above, however salary and designation in these cases is
more important. Nationalities of person sponsoring and to be sponsored, salary
of sponsor, and designation of sponsor are very critical issue under this kind
of visa. A salary of more than 10000AED of wife sponsoring her husband is quite
sufficient, and when any person earning a salary more than 10,000 she
definitely would be having a good education degree and designation pasted in
her passport (office manager, marketing/sales/accounts/HR manager, doctor,
teacher, engineer, legal consultant, lawyer, accountant etc.). In some cases to
prove that salary mention in labor contract is true salary, a bank statement is
also required of employed wife. Some nationalities like Syrian, Egyptian wives
while sponsoring their husband need to go through a security background check of
8 working days. They need to submit their applications and immigration
department forward their applications to security department which take the
decision of approval or rejection.
Sponsoring Parents in UAE
For sponsoring parents in UAE
minimum salary required is 20000AED and a refundable security deposit of 5020
per parent. While sponsoring parents its compulsory to apply the visa for both
mother and father, if one of them is passed away you need to submit death
certificate attested. Another main letter which states that your parents are
dependent on you is also required in Arabic and attested. While talking about
flat/apartment there is a requirement of having minimum two bedroom flat to
sponsor
Here comes the Nightmare
Now after viewing some basic
requirement and documents lets figure out how it is a nightmare for which
residents keep on shouting about the laws that it is so difficult a person
having a salary of 4000AED taking a flat and getting the visa, being a resident
you can and will only think about yourself but being authority/government they
need to take care of thousands like you. I personally don’t find it fair by
having a salary of 4000AED sponsoring your wife and kids as I know where the
expenses of keeping them here in UAE will take you, definitely they will take
you up to a stage where you won’t be able to have any saving, you might run for
a loan or any other option which might not cause you any issue but to authority
is a pain in neck. Where you will accommodate your family in a bed space?
Obviously not, you must poses or be able to afford them by providing such
documents. I personally have witnessed courts and jails full of people from
various nationalities facing different issue claiming they have small children
here please let them go out they will pay money to banks they took loan from,
they need to feed their kids and is why they need to work. Well quite frankly
this is not something for which UAE government allows you to come/work and earn
for your living. They are quite sure about all the difficulties a person might
face and considering it they have made these rules which we think that only are
for people earning good salaries.
There is much flexibility in law
under humanitarian basis through which a person not having the required salary
or any other requirement still can sponsor but only after providing true
reasons
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