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

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