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Things You Must Know About Accounting and Bookkeeping Services
  • Article, Singapore

Things You Must Know About Accounting and Bookkeeping Services

Often people use the term bookkeeping services and accounting services interchangeably. But in reality, they both are different altogether. In fact, both these services have different scopes and implications. In this article, we will explain the difference between these two terms which will help you better understand these services.

Let us first learn the meaning of bookkeeping services.

Meaning of Bookkeeping Services

Bookkeeping services is the activity of maintaining and recording financial transactions in an accurate and systematic manner. The focus of bookkeeping services is to maintain the financial records of the company and report them for further accounting services. Bookkeeping services involve making journals and ledgers.

Let us now learn the meaning of accounting services.

Meaning of Accounting Services

Accounting services have a much wider scope than bookkeeping services. The accounting services involve recording and reporting of the financial affairs of the company for a particular time period. It involves preparation of balance sheet, profit and loss statement and cash flow statement. With these services, a business can know the financial position of the company. This service can be outsourced to a reputed firm who has the required experience and expertise. IMC Group is one such organisation that leads the market in providing outsourcing finance and accounting services.

Let us now learn the major differences between a bookkeeper and an accountant.

Differences between a Bookkeeper and an Accountant

An accountant is a person who has the expertise and knowledge of the accounting process. The job of an accountant is very complex in nature and requires special analytical skills. The accountant must hold at least a bachelor’s degree. An accountant becomes a Certified Public Accountant if he has passed a higher level examination of CPA. On the other hand, a bookkeeper is one who has the basic knowledge of accounting and has taken several accounting courses. The basic responsibilities of the bookkeeper include collecting financial statements, balancing the accounts, reconciling the figures, etc. Bookkeeper’s job is mechanical in nature and it does not require any special skills.

The accountant verifies the data collected by the bookkeeper and analyses the performance of the company. Even though the job of bookkeeping and accounting are totally different yet there are some similarities between the two. In this section of the article, we will learn about the similarities between accounting and bookkeeping.

Importance of Bookkeeping in Accounting

The bookkeeper collects and records all the data of a financial transaction. The duties of the bookkeeper make the job of an accountant easier and simpler. The accountant gets the financial transactions in an organised manner and the work of accounting can be done with ease. The bookkeeper collects data from all the departments of the company and the accountant verifies the data. The major decisions of the company are taken after the outcome of verification and analysis of the bookkeeping data by the accountant. Therefore, the job of bookkeeping is very important for any business to be successful in the long run.

Let us now learn about the responsibility of the bookkeeper and accountant.

Responsibility of Bookkeeper and Accountant

The main job of the bookkeeper is to maintain and record the financial transactions on the basis of single entry, double entry and virtual bookkeeping system. On the other hand, the responsibility of an accountant is diverse. An accountant has a wider job scope that involves not just financial accounting but also management accounting, cost accounting, responsibility accounting and HR accounting.

Looking for Accounting and Bookkeeping Services?

IMC Group is one of the leaders in providing accounting and bookkeeping services in Singapore. Every company that is registered in Singapore has to comply with the Singapore Companies Act and maintain financial records accordingly. We at IMC Group, fulfil all your needs by maintaining proper books of accounts and meeting all the compliances on time. By hiring us for accounting and bookkeeping services you not only save your money but also get an expert opinion on various financial matters. Our services assist you in focusing on the core competencies of the business and you can work with increased efficiencies. To avail our services, you can contact us via email and know our quotation. We will be glad to serve you.

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Top Benefits of Outsourcing Accounting Services
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Top Benefits of Outsourcing Accounting Services

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AI is going to Transform How Accountants Function
  • Article

AI is going to Transform How Accountants Function

Artificial intelligence (AI) has been a big buzz word off late. But do you wonder what is meant by it exactly?

In layman terms, artificial intelligence is when a machine simulates human intelligence. There are various processes that AI can carry out. Today, AI applications are made around expert systems which simulate the behaviour and judgment of a human, speech recognition devices such as Google Home and Alexa and machine vision, which has the capability of a computer to see, just with same complexity of voice recognition.

AI enables automation of many processes, which were being inputted manually earlier. In addition, by using machine learning, AI can also gain knowledge without any programming. Isn’t that amazing?

However, though AI is very impressive and can automate carrying out simple tasks, it is unlikely to surpass human intelligence anytime in the near future. AI requires our human intelligence in scenarios of an emergency, for coding, in case of a malfunction, etc.

Therefore, AI are systems created and developed by human beings to act in “smart” ways for basically accomplishing some tasks and enhancing our work. Having said that, AI has to be trained; and that’s where Machine Learning (ML) steps in. ML is AI’s training with an objective of developing a model that constantly enhances and aids the augmentation of tasks done by humans.

How can AI and Accounting Collaborate?

For many questions that your clients could have like what is the amount of money that is expected to come in and who owes that to me? What are the expenses I am making? Who all do I need to pay?

It can be tedious to provide answers to these, right? For instance, an accountant might pull out a customized revenue report each month for a specific client. This might need you to export some data from a sheet, then sort it and find the needed information, do calculations, make a table or chart, create a jpeg of this chart to put in a PowerPoint slide and much more.

But imagine, if all this could be done using AI; then such reports and other steps could be done in a miniscule time. This saves time and money for both the client and the accountant.

How is AI restructuring the accounting industry

The estimates point out that by the year 2025, the international AI market would be around $60 billion. In 2016, it was pegged at $1.4 billion.

So you can imagine how using AI is increasing exponentially. However, this is surely going to have major consequences on the accounting industry.

Nowadays, various organisations are accepting and rather welcoming this change. Many businesses are applying the new AI technologies to enhance and streamline their business operations; one key area being accounting. That’s because AI gives many positive results like augmenting productivity, enhancing accuracy and minimising costs.

But AI cannot take over an accountant’s role completely; though what it really do is to perform the more standard, time-consuming, administrative or repetitive tasks, thus releasing accountant’s time to concentrate on the more complex and strategic accounting jobs; for example lending strategic advice to assist a business to expand further.


Which business and accounting jobs can AI perform?
 
1.Audits

The auditors now do not need to search file cabinets for documents as they would have access to the digital files. This helps in increasing the efficiency and precision of audits and makes it a possibility to audit all the financial transactions of a company rather than a few samples.

In addition, you also get those numbers in much lesser time because AI can give you data from a multiple sources, then consolidate it, and merge it together. All this and more while speeding up the end-to-end process and eradicating the possibility of human risk.

2.Procurement

For many companies, tracking and procurement is filled with paperwork and file formats that may not be compatible with one another. However, AI can be integrated with APIs and unstructured data can be processed. Meaning you and your company can go paperless, save the environment and make procurement easier in the process. AI allows you to easily track changes in price among several suppliers.

3.Expense Management

It is surely a humungous and very time-consuming task to sort out all those receipts to ensure that they are compliant with your company’s policy. AI helps you sit back and let your machine perform the checks and review the expenses. It even sends a warning signal in case there is any sort of a breach.

4.AI Chatbots

In case of AI, your machines can effectively resolve various common questions from users, which may include things like bill reminders, status on accounts and latest account balance.

Some other jobs that AI can handle are:

  • VAT returns
  • Bank reconciliations
  • Importing data such as receipts from apps
  • Following on debts
  • Automating billing for your clients


Key Takeaway

AI is already bringing far-reaching transformation in the accounting sector and it is expected to continue doing so; however, we don’t think that it is going to replace the job of accountants. There is a lot that it can accomplish but we will still continue to require accountants for the more complex jobs and decision-making.

With AI, the accountants in fact would have even more time to concentrate on other responsibilities that could benefit you and your firm. It is imperative to tread with the times and the ever-changing technologies for any business; hence, striking an apt collaboration mechanism between humans and machine is certainly a winning principle for your company.

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Singapore to Ink free trade agreement with Eurasian Economic Union
  • Article, Singapore

Singapore to Ink free trade agreement with Eurasian Economic Union

Singapore, one of the leading Asian economies is all set to sign a free trade agreement with the Eurasian Economic Union (EAEU) in October 2019. The news is confirmed by Veronika Nikishina, Minister of Trade of the EAEU at the Far Eastern Economic Forum. With this move, Singapore will become the second ASEAN (Association of Southeast Asian Nations) after Vietnam to sign such a deal.

The EAEU is the international organization for regional economic integration. It is a free trade area. Many other countries like Armenia, Belarus, Kyrgyzstan, Kazakhstan and Russia also enjoy free trade with the EAEU. The combined gross domestic product (GDP) of EAEU is approximately US $ 5 trillion. Moreover, the EAEU countries represent a market of around 183 million people which works in its advantage.

The EAEU is strategically located between the European Union and China facilitating easy transport of goods between the two countries i.e. China and Europe. Last year China inked the free trade agreement with the EAEU; however, it was a non-preferential agreement. The negotiations are in line between China and EAEU over tariffs on goods. Once the deal is crystallised, there will be a considerable expansion of trade between China and Russia and goods transport between China and Europe. With this news, Moscow and Beijing have expressed their desire to increase their current bilateral trade volume to US $ 200 billion in the coming four years.

The free trade agreement between Vietnam and EAEU has also seen a boost in bilateral trade with Russia from nil to approximately US $ 250 million per annum within a period of two years. According to the Deputy Prime Minister of Vietnam, the free trade agreement is expected to liberalise next year with additional categories in textiles and agriculture.

Singapore being a hub of financial services in Asia and ASEAN, it is expected that the free trade agreement will include the provisions for financial and related items.

Many other countries including Egypt, Turkey and Serbia are also negotiating with the EAEU to sign the free trade agreement. This further pushes Russia closer to the Asian markets of China and Southeast Asia. The Asian market is likely to see an increase in Russian investment.

For Russian businesses who are eyeing to develop throughout ASEAN and the emerging markets of Indonesia, Philippines, Malaysia, Vietnam and Thailand, Singapore acts as an excellent regional base. Moreover, the ASEAN economies are showing positive GDP growth which further attracts investments into the region.

As per the latest communication from the Russian trade office in Singapore, no official statement has been given on the date of signing of the free trade agreement. But as per the media reports, the free trade agreement between Singapore and EAEU will be signed on October 1.

In the initial phase, the free trade agreement is anticipated to deal with trade in goods and commodities and will not accommodate financial services.

About Us

IMC Group is a leading cross-border advisory firm focusing on AMEA (Asia, Middle East and Africa) markets. If you are looking for company formation in Singapore, you may get in touch with us. Along with Singapore company incorporation, we also offer accounting and business consulting services across the globe.

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16 MoUs Signed on Tamil Nadu Chief Minister’s U.S. Visit
  • Article, India

16 MoUs Signed on Tamil Nadu Chief Minister’s U.S. Visit

The Tamil Nadu government is expecting some changes in the industry, particularly in the auto industry, as the Centre is urging for electric vehicles by 2030 and would like to position itself well in this regard.

Mr. Palaniswami was escorted by a delegation including the Ministers of Industries M.C. Sampath, Revenue and Disaster Management and IT R.B. Udhayakumar, Milk and Dairy Development Rajenthra Bhalaji, Chief Secretary K. Shanmugam, many other government secretaries that included Industries secretary N. Muruganandam and CM’s secretary S. Vijayakumar. Sandeep Chakravorty, India’s Consul General in New York was there as well and he also addressed Thursday’s gathering.

In the meet, Mr. Palaniswami mentioned about former Tamil Nadu Chief Minister Jayalalithaa’s vision for fostering this state as the numero uno State in India and his government’s headway in achieving that dream.

Some recurring themes were observed throughout the event. As per data, Tamil Nadu was India’s second biggest State economy, which was doing better than the national average on multiple economic and developmental fronts, boasting of a highly educated population and also a skilled labour force. He said that the best evidence for the State’s vivacious investment environment is the great success of the Global Investors Meet (GIM) 2019. Tamil Nadu had pulled in approximately $43 billion worth of investments just through 304 MoUs.

Mr. Palaniswami said that in the defence industry corridor which is coming up in Tamil Nadu, his government is taking multiple initiatives to endorse aerospace and defence manufacturing industries. He also added that over 8,000 acres of land has been available at many industrial parks across the State.

While assuring the audience, he said that his State would always stand by everyone and give people the best possible investment experience. Top-level officials, including the Honourable Chief Minister, were also present to validate the commitment of the State government to attract investments.

He also said that investing in Tamil Nadu is like betting on a winning horse as the State is unique in being business-friendly and also welfare-oriented. This had developed the State into both a high consumption economy and a manufacturing hub.

Gaining profit from tension

Mukesh Aghi, the President and CEO of USISPF said that almost 200 U.S. companies, with around $21 billion in investment plans, were eyeing India as an investment destination because of the tariff wars going on between the U.S. and China. The accountability of capitalising on this prospect was divided between the Tamil Nadu and Central governments, according to Frank Wisner, who is a former U.S. Ambassador to India. He said that Centre carries huge responsibilities to come out with laws that ease employment of labour, the acquisition process of land, the dependability of tax systems and accountable and fiscally-minded government operations along with setting up a secure financial sector that is able to fuel investment.

The State, as per Mr. Wisner, would also then need to pitch in with full responsibility to assist in finding land and facilitating clearances, “running interference with Delhi”, offering educational and health infrastructure for the work forces and managerial talent.

The Chief Minister along with his team are slated to fly to San Francisco, Los Angeles, San Jose and then Dubai. He is going to meet with potential investors there and the Tamil diaspora in these places and then visit the Tesla electric vehicle factory located in Fremont, California.

The delegation also met with the Tamil diaspora in New York City this week, as part of the Yaadum Oorae (which means, everywhere is home) theme of the trip. Mr. Palaniswami also launched a website for pulling in more investment to the State, specifically from the Tamil population settled abroad. He said that by using this portal, the investors will be able to offer investment suggestions, which would directly reach the State government. People can also make use of the single window system through this portal.

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How is AI going to Impact Accounting and Bookkeeping Processes
  • Article

How is AI going to Impact Accounting and Bookkeeping Processes?

Typically, small-sized accounting firms are more forward-leaning as compared to larger accounting firms. Smaller-sized and more nimble accounting companies these days are introducing AI to their businesses nowadays. This means that they have a big chance of easily outsmarting the larger accounting companies if they remain slow in implementing AI into their accounting services.

The positive news is that the innovations and development in AI and applying machine learning technologies and AI into bookkeeping, is becoming a reality with majority of accounting software companies which are currently offering competencies for automating data entry jobs, reconciliations or even more with their online accounting and bookkeeping services.

By next year, it is possible that accounting jobs such as audits, tax, payroll, banking, etc. would become fully automated by using AI-based technologies and that would disrupt the accounting field in a big way like it has never happened in the last 500 years, thus opening up huge opportunities but some serious challenges also.

Why AI and Machine Learning?

The impact of AI in the near future would be the most significant and huge technological transformation till date. Accounting companies that lack or don’t accept AI implementation particularly in their bookkeeping and accounting processes would not remain competitive in the future. This technology is advancing very fast. The abilities and capabilities of what all AI can achieve today is momentous in terms of both accuracy and cost savings.

AI and machine learning result in:

  • Greater employee satisfaction
  • More robust recruitment process
  • Delighted and happy clients
  • Top-quality service offering

What is the Impact of AI and Machine Learning?

Companies which go ahead and implement AI and machine learning will be the only ones who would remain competitive in the accounting field.

In the coming three years, if you still haven’t employed AI technology in your accounting processes, then you would not stay competitive. For example, the companies who have implemented a service such as Vic.ai successfully are now pricing their accounting services differently.

AI and machine learning are primarily altering the way in which outsourced accounting services are assessed, priced, purchased by clients, and also delivered to clients.

AI and Cloud Software

Nowadays, it is getting next to impossible to charge higher hourly fees for any repetitive tasks. If your company is depending on offshoring and RPA, then that is considered as an old way of operating and doing things. AI services is expected to bring more accuracy and even faster turnaround.

AI applications such as Vic.ai work impeccably with traditional cloud accounting systems — enhancing and automating the human element in the equation. Even AI is continually learning and expanding over time. Thus, there is no need for replacing current accounting systems.

You would probably deploy various different AI systems in your software stack in the coming few years. However, the good news is that most of the AI systems usually plug into your fundamental software stack.

Bookkeeping

If you are looking at more practical manner of implementing AI, then bookkeeping jobs stand out. If one uses the best technology available, then invoicing and bank coding is just a matter of reviewing the AI as compared to actually performing the task. This, no doubt, is a stepping stone to thorough automation that we would see soon in future.

Employing AI for tasks such as invoice processing or bank coding involves a phased two-step approach:

  • The AI gives suggestions (The accountant determines if there is a need to accept or correct the given suggestions.)
  • Once trained, the AI codes would cost automatically (The accountant would then only need to provide feedback in case the AI is below a specified confidence level.)

Changes that come with AI

The procedural changes that AI is fetching may eventually trigger some controversy regarding the security of things due to the transition. However, as accounting benefits would still be felt as the final approvers of all the jobs that are performed by AI, they can keep control of any delicate or sensitive information that they want. Therefore, if all the information is backed up in the cloud, then they’re good to go.

Accounting is a very important part of any company – may be big or small. Due to the continuous evolution of technology nowadays, it’s imperative for any industry to update itself on the latest innovations and technologies if they want to stay ahead of their competition.

AI is revolutionizing the world today, and in particular how data is being handled or used. The potential of AI in the accounting field is immense. The value of AI is predicted to reach the $400 billion mark by 2020. In addition, almost 49% of all paid activities are expected to be automated by AI.

Automating the entire AP workflow

AI technology has already reached quite close to automating the entire AP workflow without any human intervention.

These days, AI and machine learning is being integrated into AP process for automating the entire workflow, which would be able to read invoices, extract the needed data, code the invoice to the accurate general ledger accounts, and then approve the whole process, and finally pay the invoice.

This actually seems like one area where we are underestimating the power of AI on outsourced accounting. It not only impacts how a team is built or the kinds of clients one works with. It also impacts the complete business model, how the product is marketed, how services are sold and delivered, and how they are priced.

One of the biggest advantages that are observed already with some early adopters is very advanced thinking and disruptive changes for how all of it is amalgamated and packaged for clients.

One way to determine how crucial this is for your company and the potential it has to impact the productivity and cost savings is by analysing the total volume of monthly invoices that you are processing currently for a typical client. You could also hire professional accounting and bookkeeping services in Dubai to do this analysis for your firm.

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A Complete Guide on Choosing an Audit Firm in Dubai UAE
  • Article, U.A.E

A Complete Guide on Choosing an Audit Firm in Dubai UAE

Dubai has been continuously serving as one of the biggest business hubs worldwide welcoming entrepreneurs, freelancers, industrialists and international investors to set up their corporate space. As more and more corporates set up their business in the country, there has been a proportionate increase in the need for accounting and auditing services in Dubai. These services are essential for every organisation, irrespective of their nature and size.

Moreover, a good audit firm can be extremely beneficial for an organisation as it provides helpful information that not only increases the organisations value but also the credibility of its financial statements. In this article, we will walk you through the necessary details regarding the audit services and how you can choose the best audit firm in Dubai UAE to accelerate the performance of your organisation.

Why Does a Company Need Auditing Services?

Auditing refers to the inspection and assessment of the company’s accounts and all its internal and external matters so as to identify whether all the business transactions conducted by the company are ethical or not. The need for auditing arises because of the following reasons:

  • Accountability

Auditing establishes accountability and keeps a track of who is accountable for what. This helps stakeholders to take better business decisions.

  • Reliability

Auditing establishes trust and confidence of the financial institutions, tax officers and the company management in the activities of the company.

  • Review

Auditing involves conducting a comprehensive review of the financial statements and provides an overall report on the business health which helps to resolve the present as well as future issues.

  • Boosts Investment

Audited financial statements attract investors’ attention as they boost the credit rating and creditworthiness of a company.

The above-mentioned points highlight the importance of auditing for an organisation. Outsourcing the auditing and assurance services is very fruitful. We will tell you how.

Why Outsource Audit Services in Dubai UAE?
  • Hiring an external audit firm saves cost to the company as compared to maintaining an in-house department for audit and spending on the training and recruitment cost.
  • External audit increases the confidence of outsiders in the financial statements of the business.
  • The company gains access to highly skilled professional auditors who have sound knowledge regarding the audit process.
  • Hiring an external audit firm reduces the chances of financial frauds within the organisation.
What to Look for When Choosing an auditing Firm in Dubai UAE?
  • Expertise

While outsourcing auditing services to a third party, it becomes vital to evaluate the strengths and weaknesses of the audit firm before handing the sensitive company information to them.

  • Experience

An experienced audit firm who is well versed in providing audit and assurance services and familiar with all the operations of your business is able to handle and make an audit report with more efficiency and accuracy as compared to others.

  • Qualification

It is of paramount importance to ensure that the audit firm you are hiring is properly qualified for the job. In order to ensure this, you may review the certifications of the audit firm before hiring them.

  • Reputation

It is advisable to hire an audit firm that enjoys a solid reputation in the market. It not only delivers satisfactory results to the business but also gains clients trust in your company. Moreover, an audit firm carrying a bad reputation can adversely harm your business.

  • Flexibility

While hiring an audit firm, ensure that you hire an all on one audit firm who can handle a diverse range of audit-related errands. This is especially important because when you hire different firms for different jobs, it becomes extremely tedious and hectic. Moreover, hiring a single firm for all the jobs can cut down on your time and cost.

  • Transparency

For an audit firm, it is extremely important to build a strong foundation of trust in order to maintain a long-term relationship between the company and the audit firm. Therefore, it becomes important to choose an audit firm that is transparent in the quality control procedures it follows. In addition, the audit firm should be able to understand the company requirements and maintain complete transparency during the audit process. Even the smallest inconsistency in the audit should be communicated by them to the management before it escalates into a larger issue.

Top Audit Firm in Dubai

Financial statements handling in UAE involves a lot of complexities. Therefore, it is advisable to hire an experienced and reputed audit firm who is well-versed with the rules and regulations and help you provide accurate and error-free audit reports. IMC Group offers a complete range of audit and assurance services along with outsource finance and accounting services in Dubai to meet the varying business needs of its clients in the dynamic global environment. Our audit experts take care of your audit processes and help you prepare your audit reports in a hassle-free manner. For, further information, you may get in touch with us.

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Is 2020 Going to Enhance the Economic Effect of SME Firms in Dubai
  • Article, U.A.E

Is 2020 Going to Enhance the Economic Effect of SME Firms in Dubai?

SME companies in Dubai or small and mid-size businesses have played a key role in encouraging the private sector and expanded the economic system. But now the question is if the year 2020 would enhance the financial impact of SME businesses located in Dubai and create new business opportunities for SMEs operating in Dubai?

The UAE economy is nurtured by SME firms in Dubai in a big way. As per current data, small and mid-size enterprises represent almost 96 percent of the total number of registered companies in Arab.

Next year, or 2020, is expected to bring a huge transition in the country. Some studies say that in 2020, there will be huge foreign investments by multinationals and many big corporate giants would enter the region. Due to this, the SME firms are anxious that their commercial characteristics would be sidelined. They also think their business opportunities would be restricted.

But UAE has done its ground work. After 2009’s economic downturn, UAE has prepared itself to deal with any global financial crisis such as fluctuations in economy, reduction of oil prices, etc. This is because of segregated business communities, business modules being based on knowledge, and investments in innovation-focused sectors which are majorly controlled by SME firms in Dubai and UAE.

There are over 4 lakh SMEs in Dubai which contribute around 60 percent of the GDP of UAE, and this figure has been rising with each passing year. In only Dubai, there are over 95 percent SME firms which add to the robustness of the economy.

UAE believes that the SME businesses in Dubai and in other parts of the region are its backbone. Thus, with the upcoming commercial plans for 2020, UAE has made it compulsory to integrate the SME firms through several programs. It is planning to adapt an approach where SME firms in Dubai and UAE get more flexibility and get equal opportunities to participate.

According to the latest reports, no advanced payment guarantees, no tender bonds and other similar leverages have been appointed for SME firms who are looking for collaborating on various government platforms. The SME sector is all set to almost 245,000 new jobs in the coming years particularly in tourism, event and hospitality sectors, which are set to grow by Dh143 billion. Besides, even IT start-up firms and consultancies will benefit hugely in 2020.

Do you want to take an approximation of how your company would fare in the year 2020? Or are you thinking if this is the right time for company formation in Dubai? Do get in touch with us and our professionals would guide you for business setup in Dubai free zone.

We at IMC, have the best experts of the industry who can help you with any assistance you require regarding company formation in Dubai or UAE. Just get in touch with us and we would offer you comprehensive solutions for business setup in Dubai free zone.

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How to Renew Business License in Dubai in Three Easy Steps
  • Article, U.A.E

How to Renew Business License in Dubai in Three Easy Steps?

Thinking of getting your business license renewed? It isn’t so tough now. Business licenses are renewed annually in Dubai, which can be now done in three simple steps. This is because of the new measures taken by DED or Dubai Department of Economic Development.

DED has come out with various initiatives such as registered agents and smart electronic services who help you with renewal. You can also just send an SMS and get renewal of your business license. With online renewal process, delays are also reduced and one ends up saving time and effort.

The three easy steps with which you can renew your business license are:

Check the tenancy contract’s validity: Your tenancy contract should be valid for a minimum of one month; and it’s better if it’s longer. Place of business is also of significance; hence, check the validity of your firm’s tenancy contract so as to avoid delays in getting the renewal.

Approvals needed for all business activities: Each particular business activity has selective requirements and could ask for certifications or licenses from specific authorities. For example, a car rental business or a private car service requires an approval from the Dubai Road and Transport Authority or RTA; however, a private medical clinic requires a certification from the Ministry of Health and Prevention from Dubai. So you need to get requisite approval from the business activity from the required judicial or government department before applying for the renewal of the business license.

Finally apply for renewal of your business license: Gather all the certifications and the duly-filled application for trade license renewal in Dubai. You can then submit your application to DED in various ways:

Offline Renewal: DED can renew your business license by offline modes like business service provider, law firms, authorised service agents, happiness lounge, etc.

Online Renewal: DED’s website and e-Services especially for the business customers on which they can do the renewal online. Getting the renewal done online saves time and effort and requires minimal paperwork.

Auto-renewal method: The Economic Department has started an auto-renewal process by which the renewal can be fast-tracked. The investors who want to renew their license only require to send an SMS along with their license number to 6969. The renewal cost is sent via SMS and the fee can be paid both offline and online.

The challenges in the process

If there is a delay or non-renewal of business license in Dubai, the company could have to pay a penalty and can also be blacklisted. The company’s plans to set up their business in the region in future could also be ruined. Therefore, many entrepreneurs feel that appointing an expert service provide in UAE is an easier and safer option.

If your documents are not in proper order, then the renewal of business license can take more time. You should be confident about your tenancy contract’s validity and have all your certifications in place. As running around various government agencies can be gruelling, many business owners find it easier to outsource this task.

So if you need assistance in getting your business license renewed or are looking for business setup consultants in Dubai or business setup in Dubai free zone, then get in touch with us. We can also help you with hassle-free process during company formation in Dubai.

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