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Opening a Restaurant in Dubai
  • Article, U.A.E

Opening a Restaurant in Dubai

Dubai is known for being a multicultural hub providing numerous opportunities to businesses and corporations. Every year, new investors get drawn to this destination as it is one of the fastest growing economies. The Food Industry is one such business area that offers a lower gestation period and has the fastest revenue generation. As per Euro monitor international forecasts, the Food and Beverage Industry of Dubai is estimated to have 19000 more outlets by the year 2019 alone. If you are looking to obtain a restaurant license in Dubai then we have compiled all the necessary information for your perusal.

How to Open a Restaurant in Dubai?
  • Follow the ‘Food Code’: To obtain a restaurant license in Dubai and set up a restaurant business, you need to follow the ‘Food Code’. The Food Code is set in place to ensure food safety and with an endeavour to guide the restaurant owner in following all the regulations required by the Food Industry. It has been designed by the Food Control Department of Dubai Municipality. The Food Code applies to the following types of food establishments in Dubai:

  • Cafes and restaurants
  • Bakeries
  • Food factories
  • Supermarkets and grocery stores
  • Canteens in hospitals and schools
  • Catering units
  • Butcheries
  • Mobile vending operations
  • Food packing material manufacturers and suppliers

 

  • Obtaining a restaurant license in Dubai: In order to set up a restaurant business in Dubai, you need a trading license from the Department of Tourism and Commerce Marketing. You need to specify the category of food establishment you want to operate in as it will be mentioned in your license.

 

  • Approval of Construction Plans: You must get the construction plans for your food establishment approved by the Food Control Department in Dubai. The blueprints of the restaurant must mention the following necessary information:

  • Space for storing food and processing
  • Entry and exit passages
  • Location of the food equipment which will be used in the processing of the food items
  • Windows and ventilation system
  • Sanitary spaces such as restrooms
  • Location of the washing machines

Note:As per the rules, the restaurant must be located at least 30 meters away from waste disposal places that could result in contamination. Also, the surrounding area of at least 10 meters should be clean at all times. 

  • Documents Required to Obtain A Food License in Dubai: The following documents are required to be submitted by a prospective restaurant owner to the Food Safety Department in Dubai:

  • In the case of the restaurant being located outside a shopping centre, the approval from the Planning Department
  • The layout of the premises
  • The first approval issued by the Department of Economic Development

If you are looking to obtain a special restaurant license in Dubai like liquor license then the procedure differs. Liquor license requires you to make your application with the Dubai police headquarters. You need the following documents:

  • Copy of the passport
  • Two photos
  • Application Fees

 

  • Food Safety Requirements in Dubai: All the restaurants operating in Dubai are required to appoint a duly qualified professional when starting its operations. Such ‘Person in Charge of Training’ would be required to undergo a special training to ensure that all the requirements of food safety are met with. Additionally, the restaurant must also obtain the following licenses:

  • A vehicle permit for transporting food products
  • A food consignment release license
  • A pork permit for handling and serving pork

If you wish to start a business set up in Dubai free zone, get in touch with us.

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Everything to Know About Opening a Branch in Dubai
  • Article, U.A.E

Everything to Know About Opening a Branch in Dubai

Foreign companies looking to open a branch in Dubai can retain full ownership over their business in Dubai by registering a branch office or a representative office. However, as per the guidelines issued by the UAE government, to open a branch in Dubai, every investor company is required to find and appoint a local service agent who is a UAE national or a company wholly owned by UAE citizens. These local sponsors assist in getting your visas, labour card, immigration cards and such other important documentation but are not involved in the working of your business. Our local agents in Dubai can assist you with foreign company registration in Dubai.

How to Open a Branch in Dubai?

  • Step 1: Trade Name Reservation – The first crucial step is to appoint a local agent as mentioned above. This local agent will then first approach the Department of Economic Development (DED) and reserve a trade name for the branch office you wish to open.
  • Step 2: Initial Approval by Ministry of Economy– After applying for the reservation of a trade name, the local agent will then apply for an initial approval from the Ministry of Economy (MOE) to open a branch in Dubai. For this, the following documents are needed to be submitted:
  • Proof of trade name reservation
  • Application forms for registration
  • Registration and Licence application forms issued by the Department of Economic Development (DED)
  • Memorandum of Association (MoA) of the parent company (notarized)
  • Articles of Association (AoA) of the parent company (notarized)
  • A power of attorney (POA) for the local director
  • A copy of the passport and the naturalization book of the local service agent
  • A passport copy of the director
  • A no-objection letter issued by the parent company
  • A copy of the Certificate of Incorporation of the parent company (notarized)
  • A board resolution for opening a branch in Dubai by the foreign company’s management

Note: The MoA, AoA and the Certificate of Incorporation must be translated into Arabic and duly notarized.

  • Step 3: Obtain License from Department of Economic Development – Once the initial approval has been obtained from the Ministry of Economy, the next step for the local agent is to apply for obtaining a commercial license from the Department of Economic Development. The documents needed for this include the following:
  • The approval needed from the Ministry of Economy
  • A statement mentioning the business activities that can be carried out, to be issued by the parent company
  • Last two years’ audited financial statements of the parent company
  • Copies of all the documents submitted earlier to get the initial approval from the Ministry of Economy
  • A copy of the property lease agreement of the branch office in Dubai

Commercial License v/s Non-Trading Representative Office License

A foreign company may obtain a trading branch office license (commercial license) or a non-trading representative office license. The main difference between the two is that with a commercial license, the foreign entity can carry out all the commercial activities covered under the trading license and carried out by the parent company. On the other hand, in the case of a representative office in Dubai, you are not allowed to carry out any commercial activities and can only use the office and the license for marketing and promoting the products or services of the foreign parent company. Depending on your requirement, you can either set up a branch office or a representative office in Dubai. The procedure for setting up both are largely the same.

Get in touch with us if you are looking for foreign company registration in Dubai.

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Strengths, Weaknesses, Opportunities – Investing in Indian Market
  • Article, India

Strengths, Weaknesses, Opportunities – Investing in Indian Market

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FTA Outlines Requirements for VAT Refund on New Residences in UAE
  • Article, U.A.E

FTA Outlines Requirements for VAT Refund on New Residences in UAE

The Federal Tax Authority (FTA) has recently set requirements and procedures to refund Value Added Tax (VAT) on new homes for UAE nationals.

According to the statement issued by FTA, in order to claim the refund of VAT there are three conditions that need to be met:

  • The applicant must be a natural person and a citizen of UAE.
  • The monetary cost that is being claimed must have been spent towards the construction of the new residence in UAE. Such residence must be used by the owner himself or his family for residential purposes. Additionally, the construction services must be a part of the construction project.
  • Only the VAT paid on expenses are eligible for the refund. For example, money expended on buying construction materials.

 

What Are The Steps To Claim Refund?

Now that we have established the criteria for claiming a refund, let us look at the steps to be followed to claim such refund.

  • Step 1: VAT Refund Form 

The applicants must download the VAT refund form from the official website of the FTA. After the download, fill in all the required details, take a print out and sign it.

If you cannot manage your VAT refund process on your own, it’s wise to take the help of a professional VAT consultant in Dubai like IMC Group.

  • Step 2: Form Submission 

Scan the duly filled and signed form and make a PDF File. Along with the form, you would also require the scanned copies of some additional supporting documents. These are:

  • A copy of the applicant’s passport
  • A copy of the applicant’s Emirates ID
  • The paperwork providing evidence of the applicant’s ownership of the plot of land in question

Send the form and the scanned supporting documents to [email protected]. It usually takes less than five working days to process the VAT refund applications. The applicants will receive an email that informs them about the status of their application i.e. accepted or rejected.

  • Step 3: Refund of VAT

For the applicants whose VAT refund application gets accepted, they become eligible for the refund. They will now have to submit the refund request to an accredited verification body assigned by the FTA. Along with the refund request, you must submit the reference number (of the earlier application), property blueprints, and related purchase invoices.

The accredited verification authority will evaluate your refund request and based on that prepare a ‘Verification Report’. This report will state the amount of VAT paid versus the recoverable VAT amount and will be sent to the FTA within 15 days from the date the invoices were issued. The FTA will further take approximately 20 working days to process the final request. In five more working days, it will refund the eligible recoverable amount to the applicant.

Things to Remember

The FTA has clarified that the applicant can submit the VAT refund application within six months after the completion of the residential building. This means that the completion of the home is essential, not the occupancy, to claim the VAT refund.
 

Get in touch with us if you have any enquiries regarding VAT Refund.

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Steady Increase in Foreign Direct Investment Inflow in India leads to Economic Growth
  • Article

Steady Increase in Foreign Direct Investment Inflow in India leads to Economic Growth

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Thinking of Expanding Your Business into New Markets Globally Here are some points to keep in mind
  • Article

Thinking of Expanding Your Business into New Markets Globally? Here are some points to keep in mind

Taking your business internationally could be very advantageous, but there are some things to keep in mind while you plan this move for expansion. It’s true that exploring newer avenues or markets for your products can be exciting; however, it’s not so easy to execute.The question to ask yourself is, is your business ready for it? Without a well thought of strategy, you cannot enjoy the benefits of this transition.

Do’s for global business expansion:

Start with getting the comfort in the new country:

Think of the barriers such as new language, culture, market ethics, regulations etc before you plan your transition.

It’s imperative that you feel secure, confident and comfortable in the new market or country you plan to go into. Why? Because you will be working there once your expansion plan is successful.

Build a trusted team in the country you are targeting:

Without a good support of a trusted team, you cannot aim to have a flawless global move. So look to hire marketing experts, HR leaders, accounting and also legal professionals. But why do you need native people? Because they know all the pros and cons of the market.

Find out about the laws of the land:

Get a basic understanding of the laws of the new land you plan to step into. This refers to being confident about the legal complications while operating internationally which will avoid unnecessary delays and hurdles.

Make changes to your existing business plan including global expansion

Updating your business plan with all the factors regarding international expansion is a must do.

Ensure to include all the updates like the potential markets, your new customers, untapped revenue sources, strategies to import and export, new costs like marketing, travel, shipping, possible partnerships and alliances, legal requirements, and other investment opportunities.

Take into consideration your competitive advantage

Before your expansion into global markets, see if you have any competitive advantage. For instance, for company formation in UAE, first think of a strategy to create a competitive advantage if you already don’t have it. Competitive advantage comes with increased resources, new strategies and innovations. You can enhance your business’ international competitiveness by using systematic processes to renew, exploit and improve your core capabilities.

Don’ts for global expansion:

Assuming that your IP (Intellectual Property) is protected is a big mistake

Before stepping into a new global market, you must think of a strategy for your Intellectual Property rights of your company. See if your IP is protected and what can you do if it is violated.

Expanding without local liaison is a strict No

Other than building a trusted team, you must liaison with local experts or consultants. This could help you in managing and planning the operations smoothly and without any hurdles. For example, if you are thinking of company formation in Singapore, find a find a business consulting firm  or local experts who are highly reputed to execute new deals and also handle your company’s information.

Think of a new market strategy

Start with a thorough research of the market in the country you are targeting. Study the culture, market techniques and think of an apt market strategy.

Starting from scratch is a bad idea

There are local experts who assist in building an international model for you. Take help in planning your entry, funding, hiring strategy etc.

So, planning a global expansion is a tough bet; but who says it’s a herculean task? Plan well and keep in mind the do’s and don’ts.

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India Hong Kong Tax Treaty Major Highlights
  • Article, India

India-Hong Kong Tax Treaty – Major Highlights

The recent tax treaty between India and Hong Kong will have a high impact on MNCs, funds, and entrepreneurs vis-a-vis investments and transactions in the two countries.It comes into effect in the tax year.

Favorable tax treaties with Singapore, Mauritius, Netherlands, and Cyprus have helped attract investors from these countries to India. Even though Hong Kong and India have had close economic ties for decades, the absence of a tax treaty has deterred investors.

The new treaty will not only encourage investments between the nations but also support existing Hong Kong-based set-ups. The base erosion and profit shifting (BEPS) initiative is the global buzzword– ‘substance-driven’ planning is trumping traditional offshore holdings. Under the circumstances, this treaty gains even more significance.

Here’s a look at how the new India-Hong Kong tax treaty affects MNCs, funds and wealthy families.

Investing in India

India levies capital gain tax on sale of Indian securities at rates of 10-40%. Under their respective bilateral treaties with India, residents of Mauritius, Singapore, and Cyprus were exempted from this tax before 1 April 2017. This date saw an end to this exemption.The treaty with Hong Kong does not offer any such capital gains tax relief either.

While the other treaties provide relief against tax on indirect share transfers, the Hong Kong treaty does not. If a Hong Kong resident owns shares in a Singapore company and the value of these shares are mostly derived from assets in India (through an Indian subsidiary), then he is liable to pay taxin India for transfer of these shares.

Recent reforms have made it easy torepatriate capital from India. There is also no dividend distribution tax – this has tempted many MNCs to set up limited liability partnerships (LLPs) for captive operations. The treaty, however, gives no relief against capital gains tax on transfer of other assets like debt instruments or interests in LLPs.

Withholding tax on interest can go as high as 40%at times – the Hong Kong treaty cuts it down to 10% – much lower than the 15% of the Singapore tax treaty but higher than the 7.5% in the Mauritius treaty. Even with the interest deduction caps introduced last year, businesses in India often use debt as a tax efficient route for funds. Indian regulatory norms are changing, and slowly paving the way for debt investment through easy intra-group loans, debentures and bonds. The treaty helps Hong Kong residents benefit from loans and debt investments in India. Hong Kong has a territorial tax regime, and certain foreign source interests are tax-exempt.

The new treaty accepts pass-through entitieslike limited partnerships and trusts. Different from most Indian tax treaties, this is an opportunity for funds and other investors from Hong Kong to explore such tools to invest into India.

The new treaty provides relief in the purview of anti-avoidance and anti-treaty shopping rules. Additionally, India’s general anti-avoidance rules also apply – these keep a check on investments that are fully tax-driven, with no commercial substance. To claim treaty relief, a resident of Hong Kong must obtain a tax residency certificate (TRC) from the Inland Revenue Department (IRD). The IRD scrutinizes TRC applications to ensure that all activities and decision-making is based out of Hong Kong.

Investors interested in emerging economies like India often look for an investment protection agreement – India and Hong Kong do not have such an arrangement yet.

Operating a Business

Permanent establishments (PE)

India has been consistently broadening its domestic tax rules. Profits resulting from a ‘business connection’ in India attract taxes for foreign enterprises – this is a broader category than the ‘permanent establishment’ (PE) defined under a tax treaty. With the treaty in place, there is more clarity on PE-related tax risks. This allows Hong Kong-based MNCs and businesses to invest and transact freely with Indian entities and makes Company formation in India a smoother process. Indian business groups interested in company formation in Hong Kong, or with existing holding and investment interests in Hong Kong also benefit – their potential tax exposure due to activities in India reduces.

The tax treaty works in favour of Hong Kong-based fund managers too. It defines the PE criteria and provides clarity on the actions of their Indian advisors that may potentially attract taxes for them in India. The agency PE concept now includes persons in India actively involved in contracts that are implemented by the overseas enterprise. This sweeping concept of PE gets relief under the treaty too.The treaty, in tandem with some algo-trading strategies or co-location servers for investments in India, helps establish if the Hong Kong-based funds need to pay taxes in India.

India recently introduced the ‘significant economic presence’ test – overseas enterprises may be taxed based on the magnitude of their Indian revenues and the size of their customer base. This holds true even if they do not have a fixed base, agents or employees in the country. Technology companies call it a ‘virtual PE’ concept. However, Hong Kong-based enterprises transacting with India get a breather under the treaty’s narrower PE threshold.

Withholding taxes – a breather

Indian domestic law allows authorities to tax various payments to Hong Kong-based residents for broadcasting fees, software licenses, and professional and technical service fees.The treaty changes the scope of taxable royalties and technical services to internationally accepted principles. These are generally narrower than domestic law and will provide more clarity to Hong Kong residents. For example, satellite broadcasting fees and software licenses without transfer of copyrights will not attract Indian withholding tax if the Hong Kong resident does not have a PE in India.

Profits from international air transport for airline operators in Hong Kong are exempt from tax in India.Profits from international shipping transport with sources in India will be taxed 50% of the applicable Indian taxes. Hong Kong-based partnerships, with no fixed base in India, need not pay Indian withholding tax on income from professional services.

Benefits for wealthy families

Hong Kong is home to many wealthy families of Indian origin. Clarity on the PE concept brings relief to those with family members and business interests in India. Families with funds and family offices managed from Hong Kong also stand to gain.

Regulatory changes in India have been favorable, and the treaty recognizes Hong Kong resident trusts and partnerships – this could encourage non-resident Indian families to use these instruments to hold assets in India, for asset protection as well as for succession planning.

Any individual ordinarily a resident in Hong Kong, or having stayed in Hong Kong for at least 180 days in a 300-day period for two consecutive assessment years, is considered a resident under the treaty. ‘Ordinary residence’ refers to a considerable presence, permanent home or regular residence in Hong Kong.

The treaty outlines a wide framework for the exchange of information between the two countries, for income tax matters and other proceedings related to customs, goods and services tax. Though the exchange mostly relates to tax years from the treaty’s effective date, prior year relevant data required for a tax year audit may also be shared.

Conclusion

The new treaty between Hong Kong and India, one of the fastest growing economies in the world, makes for exciting investment opportunities. Ease of company formation in India further fuels the investment flow.

While the economic and trade influence of jurisdictions like Singapore is unlikely to wane, the treaty is expected to boost trade and investment between Hong Kong and India.

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  • Article, U.A.E

A Clear View of the U.A.E. Tax Residence Certificate

Much confusion has ensued regarding the norms of application for the UAE Tax Residency Certificate. Several misinterpretations are surrounding the rules of application for this certificate. This article gives a clear and concise view of applying for the UAE Tax Residence Certificate along with setting straight the myths about this document.

The clear view of the UAE Tax Residency Certificate:

What is a Tax Residency Certificate?

It is a specialized document issued by the UAE Ministry of finance substantiating the applicant’s status as a resident of the UAE with regards to the Double Taxation Agreements (“DTT”) between UAE and a specific foreign dominion.

 
What is the use of UAE Tax Residency Certificate?

The Tax Residency Certificate is the essential document that helps the applicant to claim the benefits of DTT.

Is it applicable to individuals?

Subject to specific prerequisites, an individual can apply for the UAE Tax Residence Certificate.

What requirements are to be fulfilled by the individual to obtain this tax certificate?

The conditions to be met by the individual are:

  • The individual should hold a valid passport copy and visa copy issued at least before 180 days,
  • Emirates ID copy, (A report prepared by the General Directorate of Residency and Foreigners Affairs which specifies the number of days spent by the resident in the UAE)
  • Six months statements of a UAE bank. They are to be duly stamped by the bank,
  • A valid proof of income in the UAE, for example, the employment agreement, share certificate or salary certificate
  • Immigration (GDRF) Report (a report that has the all recorded entries into and exits out of the UAE),
  • Certified copy of tenancy agreement or title deed; valid for a minimum three months before the application,
  • Application Fees of AED 2,000 + AED 3 is to be paid by the applicant through the e-Dirham card.
 
Can a company apply for this UAE Tax Residency Certificate?

Subject to specific prerequisites, a corporate entity or company can apply for the UAE Tax Residency Certificate.

What requirements are to be fulfilled by the corporate entity to obtain this tax certificate?

The conditions to be met by the company are:

  • A copy of valid trade license,
  • Certified copy of tenancy agreement or title deed; valid for a minimum three months before the application, a physical office space is mandatory (not a flexi desk)
  • Valid passport, valid visa copy and Emirates ID of the company Director/ Manager
  • Latest certified audited financial statement or last six months company’s UAE bank statements; stamped by the bank
  • Application Fees: AED 10,000 + AED 10, paid through e-Dirham Card
  • Certified copy of company’s tenancy contract or lease agreement
  • Tax forms from country where the certificate is to be submitted
 
Is a UAE offshore company permitted to acquire a UAE Tax Residence Certificate?

No. The Ministry of Finance does not issue a UAE Tax Residence Certificates for offshore companies as they are treated as non-resident corporate entities for tax purpose.

 
Time is taken to Process the Application?

The whole process in case of an individual or corporate entities takes about 2 weeks for its completion.

 
What are the steps to apply online for the UAE Tax Residency Certificate?

The applicant should create an online account on the MoF portal and the application for the UAE Tax Residency Certificate has to duly fill and uploaded with the supporting documents for the review and the approval by the MoF. Once the MoF has issued the approval, the can be paid by the applicant through the online payment portal of the MoF. The Tax Residency Certificate can be collected in person by the applicant at the Ministry, or it can be couriered by the issuing authority to a domestic address supplied by the applicant. The whole process takes about 2-4 weeks.

The myths of the UAE Tax Residency Certificate:
These are the prevalent and common misconceptions surrounding the UAE Tax Residence Certificate:

Myth: An individual is required to stay in UAE for 180 consecutive days to meet the MOF requirements.

The above criteria contain partial truth and are a partial myth. The MoF has fixed a prerequisite for an individual applicant to have spent at least 180 days in the UAE within the year preceding the applications for the certificate. This is an objective criterion (day-counting). It is, however, possible to apply or reapply even if this condition is not met by the applicant if they prove to have strong ties to the jurisdiction.

Myth: There is no need for residential address in the UAE

A valid residential address in the UAE and a valid tenancy contract in the applicant’s name are mandatory conditions to apply for the UAE Tax Residence Certificate.

Myth: I can submit international bank account statements as part of my application

The MoF will not accept foreign bank statements. The applicant must have a UAE personal bank account in the UAE and have held such account for a minimum of 6 months. The MoF also requires the latest six months statements to be stamped by the UAE bank (Online generate bank statements are not accepted).

Myth: The Tax Residence Certificate cannot be predated.

An individual or a  company can acquire backdated Tax Residency Certificates. The MoF allows the applicants to backdate their Tax Residence Certificate application with the proviso that there are enough documented proofs of the applicant of having a UAE residency visa, six months UAE bank statements and a residential address for that period.

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What You Should Know About Abu Dhabi Global Market
  • Article, U.A.E

What You Should Know About Abu Dhabi Global Market

The United Arab Emirates is a collection of seven emirates, with Abu Dhabi being the capital. It is also the biggest emirate in UAE, and contributes nearly two thirds of the UAE’s economy. Careful planning and stringent laws transformed Abu Dhabi into a financial hub, with adequately capitalized banks and a lot of good sovereign wealth funds.

The Abu Dhabi Global Market

The unexceptional growth of GDP at 11%, Abu Dhabi has become one of the world’s largest sovereign wealth funds with highly capitalised banks.

The Emirate of Abu Dhabi introduced their first financial free zone, under the name “Abu Dhabi Global Market” or ADGM. Having its own rules and regulations, Abu Dhabi Global Market is located within the Al Marayh Island, and doesn’t come under any other jurisdiction. ADGM comprises of three main authorities: The Registration Authority, ADGM courts, and the Financial Services Regulatory Authority and soon to be launched the Arbitration Centre for creating a business environment that will allow the companies to carry on the business with ease and in a smooth manner.

It is to be noted that companies established in ADGM can have 100 percent foreign ownership are subject to a civil law commercial and regulatory environment.  The ADGM courts settle all disputes within the Abu Dhabi Global Market. The Registrar is responsible for regulating ownership, taking care of all legalities and issuing penalties whenever required. It is also responsible for the monitoring compliance of the commercial laws laid by the ADGM that includes levying penalties, directions, suspension and withdrawing the licenses based on the severity of non-compliance.

The FSRA is responsible for transparent and smooth financial management of ADGM. All the activities related to policy and legal, banking and insurance, capital markets, enforcement, international affairs, and financial centre development are undertaken by them.

Services provided by ADGM:

ADGM is not only for just business based on finance, it is for all kinds of businesses. What attracts businesses to ADGM is that it offers solutions to a variety of business activities, such as commercial, professional, management oriented, family businesses, corporate headquarters, etc. In the Abu Dhabi Global Market, there are financial, non-financial and retail businesses. The term “financial” covers all banks, brokers, agents, wealth managers, fund managers, etc. Non-financial activities consist of things like manufacturing, real estate, information, communication, education, transport, etc. Retail activities can consist of manufacturing and sale of textiles, jewellery, food & beverage, etc.

Steps for incorporation:

Every business entity has a different incorporation process because of the varied requirements. But, here is the general outline of the incorporation process that is followed by a private company limited by shares:

  • Step 1: the proposed company name should be in compliance of the ADGM Business and Company Names Rules 2016.
  • Step 2: Registered address must be located in Al Maryah Island, Abu Dhabi, UAE
  • Step 3: The incorporation documents and business plan is prepared as well as the access to the ADGM online portal is granted.
  • Step 4:  All the documents such as Articles of Association, shareholders resolution etc. are prepared and submitted along with the duly filled application form.
  • Step 5: A certificate of incorporation and commercial license is issued when registrar is satisfied with all the documents and information filled in the application form.


Attractive Features of ADGM:

Its wide range of business related activities is not the only reason why ADGM is seen as good investment destination by foreign investors. ADGM also has an extremely sophisticated and crystal clear legal system, and a prompt legislative regime, wherein foreign investors can conduct business in Abu Dhabi without a lot of legal troubles.

Businesses in ADGM can be owned completely by foreign nationals without the need to have 51% of it registered in the name of a UAE national.

ADGM has opened new avenues for businesses in Abu Dhabi and made it a financial free zone. The simplified incorporation requirements, abridged legislative regime, and the business-friendly infrastructure are attracting the businesses to Abu Dhabi.

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  • Article

How to set up a Health Clinic in Dubai

Introduction

United Arab Emirates (UAE) is world’s leader in many things and population growth in the country is one of them. Many expats from around the world look forward to move to UAE for better employment and investment opportunities and therefore the expected growth rate of the population of the country is expected between 5 to 8 percent per year.

This increasing population will also open investment opportunities in many utility industries and medical facilities is one of them. The rulers of the country also emphasize on ensuring best healthcare facility for the residents and this provides an opportunity for players in the healthcare industry around the world to explore the benefits by tapping into the healthcare industry in UAE. It is important to note that here that the UAE has a lower ratio of doctors and medical facilities in comparison to other developed countries and therefore there is a huge scope of growth considering the rapid urbanization and growing population. This article shall provide brief guidance on how can a prospective investor can start his own clinic/ policlinic in Dubai.

The Regulatory Authority

All the issues related to healthcare services in Dubai are supervised and regulated by the Dubai Healthcare Authority (DHA). This authority established in 2007 with an aim to regulate medical professionals, hospitals, clinics and other healthcare service providers in Dubai and to supervise their operation. All the entities wish to start their clinic in Dubai are mandatorily required to obtain the approvals from DHA. The whole process for obtaining a license for opening a clinic/ polyclinic can be divided into following steps:

  1. Reservation of Trade Name
  2. Initial approval from Department of Economic Development (DED)
  3. Initial approval from DHA
  4. Executing Documents
  5. Final Approval from DED
  6. License by DHA

The below paragraphs shall briefly describe the steps involved in obtaining license for opening a clinic/ polyclinic in Dubai.

Step – 1: Reservation of Trade name

The investor shall decide a trade name under which he want to open a clinic and obtain a license from the appropriate authorities. The investor needs to file an online application with DED for reservation of trade name. Once, the trade name is registered he can initiate the further process for setting up a clinic.

Step – 2: Initial approval from DED

Once the trade name is reserved, the investor needs to file an application with DED for obtaining initial approval for setting up a clinic. He needs to file an application along with various documents including his passport copy. The layout plan of clinic shall also require approval from Dubai municipality.

Step – 3: Initial approval from DHA

After obtaining approval from DED, the investor must apply to DHA for obtaining the license with documents like feasibility report for proposed clinic.

Step – 4: Executing Documents

The investor shall prepare and execute the documents including Memorandum and Articles of Association, lease agreements etc. for purpose of registering a limited liability company (LLC) with DED.

Step – 5: Final approval from DED

The investor shall submit all the executed documents along with copy of receipt of initial approval and payment of fee for registering the LLC with DED. The DED shall verify the documents and issue the trade license in the name of clinic.

Step – 6: License by DHA

The investor shall create his user id on DHA portal to apply online for obtaining DHA License. He will be required to furnish the details of medical professionals and licensed consultant to work under the proposed clinic. The DHA shall verify the same and issue a license for starting a clinic.

The Government of UAE is committed to provide best healthcare services to its residents are continuously striving for achieving this objective. This article shall help prospective investors to have a brief idea about the procedure for setting up a clinic in Dubai.

If you are looking to set up your Health Clinic in Dubai or to expand your business in Dubai, you can reach us on [email protected]

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