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Amendment in Citizenship Law will Attract More Investment and Talent to The United Arab Emirates
  • Newsletter, U.A.E

Amendment in Citizenship Law will Attract More Investment and Talent to The United Arab Emirates (UAE)

The UAE announced on Saturday, January 30 2021 about the amendment of the country’s citizenship laws granting citizenship status to investors and expatriates for the first time, a move that could potentially benefit the UAE with more foreign investment and new business setup in Dubai. Additionally, the move will mean quality human capital for the country.

The Prime Minister of UAE, Sheikh Mohammed bin Rashid Al Maktoum, also the ruler of Dubai, said “the new measures were aimed at attracting skilled professionals and their families to help in the development of the emirates.”

“We adopted law amendments that allow granting the UAE citizenship to investors, specialized talents & professionals including scientists, doctors, engineers, artists, authors, and their families. The new directives aim to attract talents that contribute to our development journey,” he added.

The nomination and approval rights for qualifying the eligibility of such citizenship will lie with the UAE cabinet, local emiri or rulers’ courts, and executive councils of the seven emirates under clear criteria set for each category. The law will allow those qualified and provided with UAE passports to “keep their existing citizenship”, he added.

The changes to the law on nationality and passports, in effect, will allow expatriates to become dual citizens and for the first time in history for any of the Middle East nations. The UAE has also become one of the few countries in West Asia to grant citizenship to expatriates, who form a large chunk of the population in the region.

The UAE alone is home to millions of foreigners, one of the largest concentrations of expatriates in the Middle East and other parts of West Asia. It is believed that this citizenship amendment act along with the recent Abraham Accord and normalization of diplomatic and economic ties with Israel will witness increased FDI pouring into the UAE with many new Dubai company incorporation as well as many new businesses in other parts of the Emirates.

The categories that can qualify to acquire UAE nationality include.

  • Investors
  • Specialists
  • Families, spouses, and children
  • Doctors
  • Scientists
  • Artists
  • Inventors
  • Talents
  • Intellectuals


Granting of citizenship will be through nominations from the courts of rulers and crown princes, executive councils of the seven emirates, and the cabinet and will be based on nominations received from federal entities.

The UAE cabinet declared the changes in line with an order received from President Sheikh Khalifa bin Zayed Al Nahyan to attract and retain individuals with specialized skills and innovative minds.

The amendments laid down certain criteria and conditions to be fulfilled by each of the above categories before granting UAE citizenship.

Doctors and specialists must be specialized in a unique scientific discipline or any other scientific principles that are highly required in the UAE and have acknowledged scientific contributions, studies, and research of scientific value and practical experience of not less than 10 years, in addition to obtaining membership of a reputable organization in his/her field of specialization.

Scientists are required to be active researchers at a university, research center, or in the private sector, with practical experience of not less than 10 years. They should have contributions in their field, such as winning a prestigious award or securing substantial funding for research in the past 10 years. It is also mandatory to obtain a recommendation letter from any recognized scientific institution in the UAE.

Investors must own a property in the UAE

Inventors need to obtain one or more patents approved by the UAE’s ministry of economy or any reputable international body, in addition to a recommendation letter from the Economy Ministry.

Persons with creative talents, such as intellectuals and artists, should be pioneers in culture and arts and winners of one or more international awards. A recommendation letter from related government entities is mandatory as well.

If some expatriates qualify then before acquiring citizenship, the expatriates must swear an oath of allegiance, commit to abide by local laws, and inform authorities in case they acquire or lose any other citizenship.

UAE citizenship offers a range of benefits, including the right to establish or own commercial entities and properties, and any other benefits coming into effect from federal authorities.

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UAE-ADNEC and Expo Tel Aviv Sign Strategic Memorandum of Understanding (MOU) for Enhancing Business and Investment Opportunities
  • Newsletter, U.A.E

UAE-ADNEC and Expo Tel Aviv Sign Strategic Memorandum of Understanding (MOU) for Enhancing Business and Investment Opportunities

Abu Dhabi National Exhibitions Company (ADNEC) and Expo Tel Aviv, the leading exhibition center of Israel, enters into partnership to encourage and promote further collaboration and cooperation in the business of travel and tourism sector in the region. The MOU signed will help in identifying and capitalizing on the business opportunities for the Middle East’s business tourism sector and will facilitate new business setup in Abu Dhabi.

The Memorandum of Understanding (MoU) signed between the two leading exhibition centers will forge a relationship and enhance their respective new business pipelines and increase opportunities for collaboration at both venues as reported by the state news agency.

The MoU demonstrates the greater spirit of cooperation between the United Arab Emirates (UAE) and Israel. The agreement was signed at a virtual signing ceremony between Humaid Matar Al Dhaheri, Managing Director and Group CEO of ADNEC, and Tamir Dayan, CEO of Expo Tel Aviv.

Humaid Al Dhaheri in his comments about the agreement added, “Our relationship with Expo Tel Aviv will enable the wider growth of the business tourism sector in the UAE and wider region, which ADNEC consistently seeks to promote. This strategic partnership showcases ADNEC’s efforts in fostering intraregional cooperation and will offer new developments for the transfer of knowledge to local audiences. Through this partnership, we aim to foster innovation and business opportunities between our two nations.”

Al Dhaheri remarked, “Additionally, this partnership will continue to boost ADNEC’s leading status as a key destination for business tourism. Our efforts to identify opportunities for collaboration with a range of regional and global partners are ongoing, strengthening the Middle East’s and the world’s business tourism sector.”

Tamir Dayan of Expo Tel Aviv remarked, “The Abu Dhabi National Exhibitions Company and Expo Tel Aviv provide models for regional leadership in the business tourism sector. Our mutual expertise in the design, delivery, and execution of world-class events makes us natural partners. Israel and The Emirates will probably be the first countries in the world to be vaccinated against the coronavirus and lead the exhibitions industry forward and now through this MoU, we are aiming to foster our cooperation, providing further opportunities for the transfer of knowledge and expertise between our two entities. My colleagues and I look forward to working with our Emirati partners in identifying and capitalizing on new opportunities for the Middle East’s business tourism sector, and welcoming new visitors from the UAE and beyond in Tel Aviv.”

ADNEC is committed to encouraging and promoting regional collaboration in the business tourism and events sector in the region, which is evident from a range of agreements and partnerships that have been signed with other countries in the Middle East. The continued focus of ADNEC on encouraging and exploring the greater outreach opportunities with event organizers and associations in Israel at the backdrop of the historic signing of the Abraham Accords in 2020 will provide new opportunities for pan-regional collaboration and cooperation including Israeli foreign investments by encouraging business entities to explore how to start business in Abu Dhabi Global Market.

Municipally owned Expo Tel Aviv is the leading and foremost international convention center in Israel’s leading and center city of an economy, commerce, culture, and media. The center hosts approximately 400 events every year that include both local and international conventions and exhibitions, along with events, fairs, and shows. Founded in 1933, the Expo Tel Aviv International Convention Centre houses eight pavilions and 20 conference halls, 45,000 sqm of exhibition and conference space. A 400 room hotel is also currently being developed. Expo Tel Aviv attracts over 3 million visitors each year and also hosted and broadcasted the 2019 Eurovision Contest to 200 million viewers across the globe.

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How to start a business in Abu Dhabi Global Market (ADGM)
  • Article, U.A.E

How to start a business in Abu Dhabi Global Market (ADGM)

ADGM Background

Abu Dhabi Global Market is an award-winning international financial centre and free zone located on Al Maryah Island in the heart of Abu Dhabi. Its strategic location helps to serve the growing economies of the Middle East, Africa and Asia.

Since the time it came into operations in 2015, it has gained immense global recognition for its robust, progressive and responsive business-friendly ecosystem. Besides, it is an ideal location for businesses operating in the financial sector, particularly private banking, wealth management, insurance and asset management.

Some of the compelling reasons to consider setting up a company in ADGM are 0% corporate and personal tax, 100% company ownership, 100% repatriation of capital and profits, 100% import and export tax exemption and no currency restrictions.

Legal Framework of ADGM

The ADGM free zone is governed by its own rules and regulations and is controlled by three independent authorities – the Registration Authority, the Financial Services Regulatory Authority and the ADGM Courts.

ADGM came into existence in accordance with Federal Legislation and Abu Dhabi Legislation including Abu Dhabi Law No. 4 of 2013 with its own civil and commercial laws. The free zone offers a world-class legal system and regulatory regime.

Setting Up in ADGM

The four broad categories of businesses that can set up in ADGM are financial businesses, non-financial businesses, retail and Special Purpose Vehicles. Let us see each category in detail.

1. Financial Business

As an International Financial Centre, ADGM offers a conducive environment to financial businesses along with the geographical advantage of serving growing economies. Let us see, which type of companies can set-up under financial business.

Banking

  • Corporate and transaction banking
  • Private banking and wealth management
  • Investment banking
  • Money service business
  • Digital banking

Wealth and asset management

  • Investment management
  • Funds and fund management
  • Asset servicing
  • Virtual assets activities
  • Securities

Capital markets

  • Brokerage
  • Market infrastructure

FinTech

  • FinTech
  • RegLab

2. Non-Financial Business

Along with financial businesses, ADGM also provides a legal and operational platform for non-financial businesses. Let us see, which type of companies can set-up in ADGM under non-financial business.

Corporate

  • Corporate headquarters
  • Corporate treasury
  • Family offices and foundations
  • Professional services
  • Tech start-ups
  • Associations

3. Retail

ADGM also offers a dynamic environment for retail businesses. Some of the permitted retail activities in Al Maryah Island include wholesale and retail trade, manufacturing, transportation and storage, repair of motor vehicles and motorcycles, accommodation and food service activities, scientific and technical activities, information and communication, arts, entertainment and recreation and administrative support service activities, among others.

4. Special Purpose Vehicles (SPVs)

SPVs are passive holding companies that come into existence with an intention of isolating financial and legal risk by ring-fencing certain assets and liabilities. The SPV regime at ADGM

Procedure to Set-up in ADGM

If you are looking to set-up in ADGM, there are various options available for you. You can incorporate as a business limited by shares where you will need at least 2 directors, or you can open a branch of the company which is already established in the UAE or any other foreign country.

When you decide to set-up in ADGM, you will be required to fill up an online application form through ADGM online registry solutions. You can also opt to apply offline by paying some extra fees.

The ADGM registration process is as follows:
  • Before filling and submitting the business application form, you will be provided with a special business development team to discuss the requirements of your business.
  • After receiving the approval from the authorities, you need to fill up the online registration or incorporation form and submit the required documents mentioned in the form.
  • On receiving approval, you will be issued a commercial license within a week.
  • In order to proceed with the visa processing, you need to apply for a FAWRI account and Establishment Card.

    So, this was a brief process of setting up a business in ADGM. However, the specifics of the process largely depend on the kind of business you wish to carry on, type of license and so on. Therefore, it is advisable to consult an expert who can guide you through the entire process and ensure smooth and timely incorporation.

For any assistance related to business set up and allied services in ADGM free zone, you may get in touch with IMC Group.

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Dubai Startup Hub Launches Eight Sector-Specific Guides To Support New Entrepreneurs
  • Newsletter, U.A.E

Dubai Startup Hub Launches Eight Sector-Specific Guides To Support New Entrepreneurs

Established by Dubai Chamber in 2016, Dubai Startup Hub is the first initiative of its kind in the Middle East and North Africa region that emphasises public and private sector collaboration for promoting innovation and entrepreneurship as key economic drivers of Dubai and the UAE.

The initiative provides a multi-programme platform for global entrepreneurs to explore business opportunities in Dubai and enables them to benefit from a set of initiatives and services including Market Access Program, Emirati Development Program, Dubai Smartpreneur Competition, and the Co-Founder Dubai Program, among others.

Dubai Startup Hub initiative has launched eight guides to help startups in the UAE do business, as the Chamber concluded its fifth and final ‘Networking Series’.

Organised in cooperation with Virtuzone, the Series convened from mid-October to mid-December 2020 and focused on eight industrial sectors.

The key sectors identified include Fintech, Healthcare, Transportation, Education, F&B, Social Impact, Sustainability, and Travel, Tourism & Hospitality.

The fifth edition of Dubai Chamber’s Networking Series attracted more than 360 participants including 22 per cent Emirati entrepreneurs besides global startup owners desirous for new company formation in Dubai participating in the virtual event.

Natalia Sycheva, Senior Manager, special projects and Entrepreneurship in Dubai Chamber noted, “The guides are an innovative new tool to help promising startups in each of the target sectors,”

She also highlighted saying, “They form part of the Chamber’s plan to address the repercussions of the Covid-19 pandemic, where a significant chunk of our investments has been earmarked for knowledge-building and providing information for entrepreneurs and startups at this critical time.”

“The Dubai Startup Hub’s mandate is to support emerging companies and help them understand and navigate the procedures for establishing businesses in Dubai,” she explained.

“The initiative serves to facilitate the exchange of knowledge and lays solid foundations for partnership and cooperation, all to drive growth in the emirate’s startup scene. This ultimately boosts Dubai’s entrepreneurial ecosystem and strengthens its position as a global destination for new businesses,” she also added.

Entrepreneurs willing to know and learn more on the Dubai market can now make use of this industry guide to better equip themselves on the know-hows and can continuously receive sectoral updates for informed business decisions. This initiative will also equally benefit the business startup consultants in Dubai to discharge their responsibilities.

For Delivery, Logistics and Transport businesses, the key elements addressed are

  • Key market statistics e.g. Dubai’s 11th position as the world’s logistics-friendly country in the world, Dubai International airport as the world’s 6th busiest cargo traffic, its strategic location as the gateway to the Arab, African and Asian countries and its logistics market ranked first among the top 55 global logistics markets in logistics etc.
  • Dubai customs being the main regulatory body
  • Licensing and authorities
  • Incubators and accelerators
  • Important industry events and conferences
  • Choosing between various free zones and mainland options
  • Steps for starting a logistics business

For the Fintech Industry, the important aspects covered are

  • Key market statistics highlighting UAE as MENA’s largest fintech hub with 39 per cent yearly growth of fintech startups since 2012 and the 2nd largest outward remittance country in the world 44 billion remittance market size
  • Dubai Financial Services Authority (DFSA), Securities and Commodities Authority and Central Bank of Dubai as regulators
  • DIFC as the licensing authority
  • DIFC Fintech Hive as the prime accelerator
  • Industry events and conferences
  • Easy steps for a startup business and fundraising including crowd funding

 

For Healthcare business, the guide focuses on

  • Important market statistics e.g. healthcare sector accounting 3.6 per cent of UAE’s GDP with a total of 3397 healthcare facilities licensing between January to June 2020
  • Dubai Health Authority (DHA) as the regulatory authority
  • Dubai Future Accelerator (DFA) as the prime accelerator
  • Main Events and conferences
  • Dubai Department of Economic Development (DED), Dubai Healthcare City (DHCC) for health tech licensing and other information
  • Startup steps and financing guidance
  • For F&B startups, the guide highlights
  • Dubai F&B market is estimated to grow by 6.9 per cent YoY, UAE’s National Food Security Strategy 2051 stresses upon local domestic food processing for self-reliance, a tremendous surge in demand for packaged food etc.
  • Dubai Municipality as the sole controller of food safety and licensing through DED and Food watch platform
  • UAE Food and Beverage as the accelerator
  • Important events and conferences including Halal Expo, SIAL Middle East etc.
  • For Travel, Tourism and Hospitality business, the guide specifies
  • Key market statistics e.g. Dubai’s ranking as 4th most popular global tourist destination and 3rd in International tourism spending approximately AED 102.47 billion in 2019 etc.
  • Department of Tourism and Commerce Marketing ( DTCM) acts as the business regulator
  • INTELAK HUB and WAMDA as accelerators
  • Digital Travel MEA, Arab Medical Travel as important events


Similarly, for startups in sustainability and education businesses, all important and pertinent information is provided in the respective guides.

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100 Million Venture Debt Investment Fund Launched by Dubai-Israel Partnership
  • Newsletter, U.A.E

100 Million Venture Debt Investment Fund Launched by Dubai-Israel Partnership

Tel Aviv-based venture fund Liquid Capital and Dubai-based Vault Investments jointly announced agreeing and launch a joint Venture Debt Investment fund with more than $100 million based in Dubai. It shall deploy debt financing aiming for technology financing across the Middle East, North Africa, and Europe and benefitting from already used and available technologies by Liquidity Capital for its newly formed offices in Dubai.

This joint venture stands as the living testimony of recent diplomatic ties between the two countries as a result of the Abraham Accords easing and normalizing bilateral relations between Israel and the UAE. The two firms will benefit by using the existing technologies in the Middle East and explore opportunities for Middle Eastern startups and companies with growth potential and help them become competitive globally.

Debt financing as opposed to equity financing will fuel technology financing in the Middle East, North Africa and Europe, and will deploy technology already in use by Liquidity in its company’s Asia-Pacific and US investments. As part of the partnership, Liquidity Capital and Vault investment will engage in DMCC company formation, to more strategically locate investments in the region.

The joint venture stands as a significant step forward in the speedy diplomatic and economic relationships between Israel and the United Arab Emirates and at the backdrop of the recent peace agreements between those countries. Coming together, Liquidity Capital and Vault Investments will better explore and capitalize on the region’s growing and sound technological know-how including adequate available capital to unlock opportunities for business set up in Dubai for Middle Eastern startups and growth companies.

“The United Arab Emirates, the Gulf Cooperation Council countries and the Middle East as a whole are overflowing with technology,” remarked Sultan Ali Lootah of Vault Investments. “The partnership between Vault Investments and Liquidity Capital will create new growth in the region, and the facilities and services we provide will be a positive anchor for entrepreneurs. We believe that our partnership will provide success in the future through our combined leadership in Dubai,” he also added.

Ron Daniel, CEO and Founder of Liquidity Capital said, “Beyond the personal excitement by this first of its kind fund, and the wonderful relationship with Sultan Lootah of Vault Investments and his team, I strongly believe the new fund is a game-changer in both the availability of non-dilutive growth capital in the region and for the fast distribution of tech products from the Middle East and globally. The new climate in the region brings a lot of potentials to capture. Non-dilutive debt is an asset class now transforming successful companies into unicorns and Liquidity Capital is at the forefront of this by marrying technology and credit know-how.”

Avner Stepak, Controlling Shareholder at Meitav Dash and Chairman at Liquidity Capital noted “We are thrilled to cooperate with one of the most significant business groups of Dubai and incorporate an innovative fund that will help technology companies, mainly from our region, finance rapid growth, based on Liquidity’s great online underwriting technology. Sultan Lootah and his team will become great partners of ours and I strongly believe that this is just the beginning of several future joint businesses.”

Navas Ebin Muhammed, Partner at Vault Investments added, “We are very excited about this partnership with Liquidity Capital. Non-dilutive growth capital is the need of the hour and together we can play a significant role in helping companies that will redefine the collective future of humanity.”

Established in 2017, Liquidity Capital is a global fund manager providing growth capital through funds focused on the US, Asia and the Middle East. Mars Growth Capital, the Singapore based subsidiary of Liquidity Capital and its partner MUFG manage and administer the company’s South East Asia program. Liquidity’s newly-released proprietary platform, Liquidity Dynamics, is one of the most advanced, real-time predictive modelling SAAS platforms for investment professionals from Vault and many other companies.

Vault Investments was founded in 2012 and is considered to be one of Dubai’s most prominent investment companies engaged in investing in many companies besides offering investment advisory services to both private organizations and governments. A dynamic, diversified, innovative and cross-border approach towards investment helped Vault investments to exploit both innovation and technical and financial expertise of its team to evaluate potential opportunities.

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Want to Start a Business in Dubai: Dubai PRO Services Can Address All Your PRO Needs
  • Article, U.A.E

Want to Start a Business in Dubai: Dubai PRO Services Can Address All Your PRO Needs

Summary

Dubai is increasingly growing as one of the most attractive international business hubs due to the UAE government’s initiatives in economic policy reforms. Dubai has a competitive and diverse business environment with numerous opportunities. However, from a legal and administrative standpoint, there exists bureaucracy and stringent regulations for an entity willing for a business set up in Dubai.

PRO Services

Pro service providers are equipped with specialized knowledge and expertise in core business areas including law, marketing, accounting etc. They allow customers to focus and excel in fundamental business concerns, take responsibility for end business outcomes.

Dubai Pro services are mainly needed because company owners are not aware of all the applicable laws including labour contracts, residence Visa and other visa applications. Liasioning with different government departments for approvals also becomes an uphill task at times without dedicated internal resources for effectively dealing with government officials which is almost an everyday chore.

Services offered by Dubai PRO Services

The scope of Dubai PRO services normally includes

  • New Company and Branch setup
  • Resident and Employee visa
  • Labor and Immigration cards
  • Emirates ID card
  • Passport
  • Approval and renewal of Trade License
  • Regulatory approvals and NOCs
  • Notarization of legal documents
  • Annual License renewals, automatic status updates and timely reminders
  • Opening Corporate Bank Account

Benefits of outsourcing PRO Services in Dubai
1. Saves Money

PRO services often reduce the cost of document processing and clearing. It also eliminates the need for any internal PRO and administrative set up resulting in a drastic reduction in salary and other fixed costs.

2. Saves Time

Time is money and outsourcing of PRO services can help you save a lot of time. You can concentrate on the core areas of your business rather than standing in queues in various government offices.

3. Reduces Hassles

From picking up documents to handing them over to your offices are all done by PRO services on-time after necessary clearing from government offices and relieve you of your daily worries.

4. Provides Automated Reminders

PRO services keep all the records of your essential company documents and provide automated timely reminders for renewal requirements such as trade license and employee visa renewals.

5. Increases Business Efficiency and Growth

As the huge burden of judicial and government responsibilities are taken away, you can come up with innovative business strategies for future growth and expansion.

6. Improves Company Reputations and Goodwill

PROs act as company extensions in the Government departments improving public relations through their expertise, knowledge and professionalism and generate a positive longtime image in the government and amongst the business communities.

7. Protects from Fines and Penalties

Professional PRO services help companies remain updated with renewals and regulatory compliances e.g. government licenses, visas and registration policies. Businesses in Dubai can be subjected to heavy fines and penalties in case of failure to comply with UAEs rules and regulations.

8. Transparency

Every government fees and incidental spendings are supported by valid receipts and documents enhancing transparency and maintenance of cost.

Criteria for selection of your PRO Services in Dubai
1.  Awareness of Dubai business environment

As a business owner in Dubai, you need to know your competitors on how they are handling their PRO related issues. Your chosen PRO services should be well acquainted with similar businesses in Dubai and their modus of Operandi.

2. Adequate knowledge of the laws of the land

The PRO services in Dubai you choose need to be well-versed with the law of the land for ensuring appropriate business need identification for PRO services.

3. Proven Experience

Your chosen PRO services need to have the right and proven experience preferably with exposure to international laws and regulations.

4. Affordability

PRO services always come with a cost. Selecting the right option as per your affordability without sacrificing the service quality is always a must.

5. Referrals

Before hiring any pro services in Dubai, it is advisable to check from your peer companies, friends and other sources about their quality and cost of services.

6. Scope and terms of services

Critically reviewing all the clauses of the business agreement and clearly understanding the scope of services is important before signing the contract.

Summing up

Doing business in Dubai comes with lots of regulatory challenges and an experienced and expert PRO services can be your real support.

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Dubai Tax Residency Certificate: Everything You Need To Know
  • Article, U.A.E

Dubai Tax Residency Certificate: Everything You Need To Know

What is the Tax Residency Certificate?

A Tax Residency Certificate in Dubai sometimes called Tax Domicile Certificate (TDC) is issued by the Ministry of Finance (MOF), International Financial Relations and Organisations Department conferring eligibility to government entities, companies and individuals to benefit from the treaties of double taxation avoidance of the UAE with its other global counterparts.

If a person resides in the UAE for at least 180 days he can apply for the Dubai Residency Certificate. The non-residents cannot apply for this certificate.

Companies functioning in the UAE for at least past one year can apply for the certificate.

The eligible applicants on opening an account online on the MOF website system receive the Tax Residency Certificate in Dubai through email after making payments of necessary government fees.

Double Taxation Agreement(DTA)

Double Taxation Agreements (DTAs) are treaties reached between the UAE and other treaty countries for relieving double taxation of income earned in one country by a resident of the other country.

The United Arab Emirates first signed the Double Taxation Avoidance Agreement with France and since then, the Emirates, including Dubai, have signed 92 double taxation treaties with countries across the world.

Eligibility for a Tax Residency Certificate

To obtain a Tax Residency Certificate or Tax Domicile Certificate in the UAE, eligible government entities, legal persons and resident individuals can apply to the FTA from 14 November 2020. Mainland and Free Zone entities are also eligible to apply for the certificate. However, offshore companies may not be eligible to apply for TRC in the UAE since they do not have a physical presence in the country.

Procedures for Dubai Tax Residency Certificate

The procedural steps involved in the tax residency certificate in Dubai are

  • Creating an online account in the system of the MOF
  • Filling up tax Residency application form
  • Attaching necessary documents in digital formats such as PDF or JPEG and applying with fees
  • Receiving email notification of successful verification of application and remaining payment advice
  • Making payment
  • Issuance of certificate and sending to the registered address by express courier

Goals of Tax Residency Certificate

  • This stimulates Dubai and the UAE’s economic growth
  • It helps individuals to avoid paying taxes in multiple countries
  • The process of international commerce and investment becomes more efficient with its implementation
  • This facilitates increased economic growth for all parties involved

The Validity of Tax Residency Certificate in Dubai

The validity of the tax residency certificate in Dubai is one year from the date of issue. Corporates and individuals can use the Tax Residency Certificate also known as Tax Domicile Certificate for one specific country at a time. Application for multiple certificates can also be made based on specific requirements.

Documents Required for Tax Residency Certificate in Dubai

For Companies

To apply for tax domicile certificates, the company must have exercised its activity in the UAE for at least one year:

Documents required for Companies to get a tax residency certificate in Dubai are

  1. A copy of the trade license and partners’ attachments
  2. A copy of MOA (Memorandum Of Association
  3. A copy of the company’s owners/partners/directors’ passports, IDs and permits of residence
  4. A certified copy of the audited financial accounts
  5. Validated Bank statement for 6 months
  6. A certified copy of the lease agreement
  7. The establishment contract certified by official authorities (if it is not a sole company)
  8. The organizational structure of the company ( if it is not a sole company)
For Individuals

To apply for a tax domicile certificate individuals must have been a resident in the UAE for at least 180 days. The certificate is not granted to non-residents.

The documents required for individual tax residency certificate in Dubai are

  1. A copy of Passport and Emirates ID
  2. Valid residence permit
  3. A certified copy of the (residential) lease agreement / Tenancy contract
  4. Bank statement for 6 months
  5. Salary certificate / Income certificate
  6. A report from the General Directorate of Residency and Foreigners Affairs mentioning the duration of the person’s stay in UAE (Minimum 180 days)
  7. Tax forms (if any) from the country where the certificate needs to be submitted
For Investors
The company license in addition to partners’ names should be attached including any previously mentioned documents.
For Housewives
The application should accompany a copy of Marriage Certificate plus a copy of passports and permits of residence for the married couple including the salary certificate and employment contract of the husband. Any other documents related to the husband and submitted previously must also be attached.

Fees for Tax Residency Certificate in Dubai

For Individuals

100 Dirhams plus 3 Dirhams, paid through e-Dirham Card for application submission and 2,000 Dirhams plus 3 Dirhams paid through e-Dirham Card for issuance of cards.

For Companies

For applying, 100 Dirhams plus 3 Dirhams paid through e-Dirham Card and for issuing the certificate, 10,000 Dirhams plus 3 Dirhams, paid through e-Dirham Card.

Benefits of Tax Residency Certificate in Dubai

Investors in Dubai can considerably benefit from their access to the international market after company formation in Dubai. The benefits of being a Tax Resident in Dubai are many and include

  • Can avoid double taxation
  • Can receive tax incentives
  • Can get tax benefits for import and export
  • Can ease international business and strengthen cross border business relationship
  • Individuals and corporates are permitted for separate certificates

Bottom Line

Effective tax planning with a multidisciplinary approach backed by strong business knowledge, accounting and finance structures and prevailing tax rules are must get the maximum benefits out of the tax residency certificate in Dubai. Considering this fact It is always prudent to outsource one of the best professional and experienced PRO services in Dubai for this purpose.

FAQs
Q1. What is the tax residency certificate in Dubai?
Tax Resident certificate (TRC), also known as Tax Domicile Certificate (TDC) is an official document issued by the Ministry of Finance of UAE to either a Company or an Individual with UAE residency visa / permanently residing in the UAE for a minimum of 180 Days.
Q2. What is the purpose of the tax residency certificate in Dubai?
The TRC offers tax advantages of the Double Taxation Avoidance Agreements (DTAA) signed by the UAE with more than 76 Countries in the World where foreign-sourced income is not subjected to double taxation.
Q3. What is the validity of TRC?
The certificate is valid for one year from the date of its issue.
Q4. Is the Tax Domicile certificate applicable for the UAE offshore companies?
No, the TRC alias TDC is not Applicable to Offshore Companies or International Business houses.
Q5. What are the requirements for the TRC?
Documents are required for Tax Residency Certificate and depend on the type of Application viz. a company or an individual.
Q6. What documents are required for companies?
The documents required are Valid company Trade License Copy, Passport Copies of shareholders & Manager Copies of Residence Visa, Shareholders’ and the Manager’s Emirates ID, Certified copy of the latest audited financial Statement and Audit Report, Latest and validated 6-month Company bank statement, Certified copy of Company lease agreement or Tenancy Contract and Tax forms, if any from the country of origin.
Q7. What documents are needed for individuals?
The documents required for individuals are Passport Copy, the UAE Residence Visa Copy, Emirates ID Copy, a certified copy of residential lease agreement or Tenancy Contract Copy, latest Salary certificate and validated last 6-months bank statement, a report from the General Directorate of Residency and Foreigners Affairs specifying the number of days the resident has been staying in the UAE, applicable tax forms from the country in which the TDC is to be submitted.
Q8. How long does it take to obtain a TRC in Dubai?

It usually takes 4 to 5 working days for pre-approval processing and 5 to 7 working days for the issuance of a tax residency certificate in Dubai once approval is made.

Q9. What happens if the tax Residency certificate in Dubai is lost or damaged?
For lost, damaged, or an extra copy of origin you have to pay 100 Dirhams for issuing a replacement of lost, damaged or copy of original certificate plus 3 Dirhams, paid through e-Dirham Card.
Q10. Do I need a residential address in Dubai?
Yes, a residential address in Dubai is mandatory.
Q11. Are foreign bank statements acceptable?
No, a UAE bank personal account is mandatory and should be held for a minimum of 6 months.
Q12. Can I get a backdated certificate?
Yes, you can get one provided there is documented evidence of holding a valid bank account, a residential address and staying in Dubai during that period.

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The UAE is All Set for USD 7 Billion Investments in India’s Food Sector Over the Next Three Years
  • Newsletter, U.A.E

The UAE is All Set for USD 7 Billion Investments in India’s Food Sector Over the Next Three Years

UAE business entities, coordinated by Dubai based Emaar group will invest up to USD billions in India’s food sector over the next three years as a part of the UAE-India food corridor project. The investment is planned for the mutual benefit of two nations with the core focus of UAE’s food security and company-formation–in–India.

UAE- India diplomatic ties date back to 1972 and have developed as a strategic partnership over the years. UAE is the third-largest trading partner of India with an annual trade volume of approximately USD 60 billion.

The National Strategy for Food Security was presented during UAE Government’s second annual meeting in November 2018 with its objectives focused on ‘facilitating the global food trade, diversifying food import sources identifying alternative supply schemes, and covering three to five sources for each major food category.’

In line with its National Food Security 2051, the UAE has a concrete and robust plan of investment in India for developing food security and in the sector including agricultural produce as well as logistics for storage and transport.

In a recently held two days of food conclave on 7th and 8th December 2020 between the two countries, UAE confirmed its investment of USD 7 billion in Food-Corridor.

Two UAE based companies, DP World and Dubai Multi Commodities Centre (DMCC) are already working on possible tie-ups with Indian companies and farmers. While DP World is exploring synergies for Integrated Supply chain solutions, DMCC with its agriculture trading platform “Agriota” will connect Indian farmers with the food companies in the UAE for promoting agriculture import from India.

The Emaar group, a real estate company in the UAE will invest USD 5 billion in setting up mega food parks, logistics and warehouse hubs, fruits and vegetable hubs in several Indian cities and USD 2 billion in contract farming, and sourcing of agricultural commodities and related infrastructures.

“Considering our strategic relationship, I strongly believe that this is an opportune time for UAE and India to escalate food security cooperation,” remarked Ahmed Al Banna, UAE’s Ambassador to India in a public briefing. UAE’s investment in eight food parks in Madhya Pradesh in India is a testimony to this statement. This project will benefit 2 crore Indian farmers and will create 20,000 new employments by establishing logistics and agriculture infrastructures. The food park projects are essentially planned to keep in mind the farmers from Punjab and Maharashtra, the two most fertile Indian states with excess agriculture produce.

UAE choosing India over other adjacent gulf countries as a food security partner doesn’t come without reasons. Firstly, India with its vast fertile land bank and geographic climate has tremendous potential in agriculture and becomes a food surplus nation. As per a report, approximately 30 per cent of agriculture produce goes waste due to shortages of appropriate storage and other logistics facilities. Agriculture export to the UAE will not only prevent this huge wastage but will also pave the path for additional income for Indian farmers who are currently demonstrating in Delhi for the Minimum Support Price (MSP). This will help alleviate Indian farmers’ monetary concerns and direct contact with the companies will free them from the clutches of middlemen.

Secondly, UAE’s climate is not conducive for agriculture and farming and partnering with India in its food security programme can bring its objectives to fruition. The long-standing diplomatic ties with UAE is thus a guiding factor in choosing India as its reliable partner.

Thirdly, UAE is one of the biggest trading partners of India and there are already regular trades in oil and petroleum. India presently imports approximately 8 per cent of its oil requirements from UAE.

Last but not the least, this investment will help promote the UAE’s logistics and services sectors and lower food prices from India can hugely benefit UAE economically.

It is worth noting that a Minister from the Punjab government, Rana Gurmeet Singh Sodhi, invited UAE investors to set up food processing industries in the state who can benefit from a reliable and steady source of crops and can avail efficient logistics support through a company–formation–in–Delhi.

With increasing business and FDI policy reforms, India is becoming an attractive business destination for foreign investors easing the incorporation steps–for–companies-in–India. The recently launched production linked incentive scheme will also make India lucrative to foreign companies. Even the presently introduced more lenient insolvency and bankruptcy act will help foreign investment flow in India.

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ADGM Ends 2020 with Significant Growth and Partnerships Amidst Covid Pandemic Challenges
  • Newsletter, U.A.E

ADGM Ends 2020 with Significant Growth and Partnerships Amidst Covid Pandemic Challenges

Abu Dhabi Global Market (ADGM) ends 2020 on a strong note despite all-round disaster caused by Covid-19 pandemic. 2020 is marked as the record year of achievement for ADGM with remarkable growth in key areas of fintech, regulation, sustainable finance and arbitration.

Amidst the adverse impact of the pandemic, ADGM continued to register steady growth in its three authorities namely the ADGM Financial Services Regulatory Authority (FSRA), the ADGM Registration Authority (RA), and the ADGM Courts. ADGM increased the number of registered licences by 43%, totalling 3,211 by year-end 2020. Assets increased by 193% totalling over USD 85 billion.

H.E. Ahmed Ali Al Sayegh, Minister of State (UAE) and Chairman of ADGM noted: “The year 2020 had been a trying period for the UAE and its community. However, the timely intervention and invaluable responses from the UAE leadership, the Abu Dhabi government and authorities have helped the country and its people to overcome the challenges brought on by the pandemic. The UAE economy is also well underway to recovery and further growth.”

“Despite the strong headwinds from the pandemic, ADGM grew to become more agile and responsive to the needs of its stakeholders and customers. We have achieved better results and developments than expected this year. We had welcomed the successful amendment of ADGM’s Founding law, launched several transformational initiatives, formed historical partnerships, and also established greater outcomes in the FinTech, arbitration, sustainable finance and academy fronts. I would like to express my sincerest gratitude to the Abu Dhabi leadership and government, our partners and customers for their unwavering support of ADGM. All these are possible only because of their trust and vote of confidence in us,” the Chairman of ADGM highlighted.

H.E.Ahmed Ali Al Sayegh also commented saying, “2020 marks the fifth year in operations for ADGM as an International Financial Centre. The ADGM team is committed to better serve the needs of its community and will continue to do our part in bolstering the financial development, growth and economic sustainability of Abu Dhabi and the UAE. We look forward to 2021 with anticipation and great hope for our nation.”

ADGM marked its 5th anniversary in 2020 and finished the year by hosting the fourth edition of its flagship event, the FinTech Abu Dhabi Festival, in association with the Central Bank of the UAE (CBUAE).

More than 7,500 delegates from over 110 countries participated in this event held in a virtual format and was a record success. FinTech AD convened the world’s foremost policymakers, regulators, investors and FinTechs to a digital platform and hosted leading initiatives including the Government FinTech Forum, the FinTech100 and the Innovation Challenge.

2020, also saw the official launch of the ADGM Digital Lab enabling the rapid prototyping and adoption of digital solutions aiding businesses to overcome their pain points and accessing new market opportunities for company–formation–in-Abu–Dhabi and showcased ADGM FSRA’s growth as a financial regulator.

ADGM Academy has been expanded in co-operation with the Human Resources Authority (HRA) and First Abu Dhabi Bank (FAB) and the Abu Dhabi Commercial Bank (ADCB) to create an education platform for young Emiratis. Together, these four institutions will launch The Bankers Programme, a new initiative to support the government’s requirements for vital professions guided by the UAE Central Bank and in line with FAB’s talent employment and management requirements.

ADGM also exhibited significant progress in Sustainable Finance and has hosted the second edition of its flagship Abu Dhabi Sustainable Finance Forum serving as a background to several high-profile announcements, including the region’s first green Real Estate Investment Trust (REIT), as well as the second round of signatories of the Abu Dhabi Sustainable Finance Declaration.

2020 also witnessed ADGM and the Ministry of Climate Change and Environment releasing the ‘State of Sustainable Finance’ report, underscoring the collective achievements by private and public sector stakeholders. This year also saw agreements with Israeli bank Hapoalim and Israel Securities Authority.

ADGM also expanded its partnership network with globally recognised institutions and regulators such as the Aurora50, Abu Dhabi Exports Office, the International Renewable Energy Agency (IRENA), Companies House Gibraltar, the British Virgin Islands Financial Services Commission, and ArbitralWomen, among others and had entered into a total of 208 MoUs, including 88 International MoUs and Statements of Cooperation (SoCs).

2020 showcased ADGM’s commitment to its community members through various support and relief measures introduced including an array of fee reductions, waivers and refunds, including a 100% waiver on continuation fees, annual fund fees and commercial licence renewal fees, and a 50% waiver on any new supervision fees, a 50% refund of supervision fees, and a 50% reduction on the incorporation fee for new ADGM companies boosting up business–set-up-in-Abu Dhabi.

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UAE Aims for One Million Companies over Next Ten Years through Landmark Economic Policy Reforms
  • Newsletter, U.A.E

UAE Aims for One Million Companies over Next Ten Years through Landmark Economic Policy Reforms

The recent ground-breaking policy reforms allowing full ownership rights to the foreign companies are primarily designed to enhance the openness of UAE’s business climate and increase the number of businesses operating in the UAE to one million within the next decade jumping three-fold from 300,000 currently, the Minister of Economy added.

In a virtual media briefing, the economy minister Abdulla Bin Touq Al Marri highlighted the amendments to the commercial companies law would increase the business transparency and attract more foreign investment and help diversify the economy and ensure additional non-oil income.

“In light of the recent economic changes and challenges that were witnessed globally as a result of the Covid-19 pandemic, the realisation of this vision and this transformation has become even more necessary and urgent.”

Al Marri also pointed out the key changes will boost investor’s confidence and “provide a greater opportunity for establishing productive partnerships between citizens and foreign investors” and also enable the nation ” to contribute to the creation of new job opportunities, development of market movement, localization of technology, and development of skills and human capabilities.”

Other notable personalities who attended the briefing included Dr Ahmad Belhoul Al Falasi, Minister of State for Entrepreneurship and SMEs; Dr Thani bin Ahmed Al Zeyoudi, Minister of State for Foreign Trade; Abdullah bin Ahmed Al Saleh, Undersecretary of the Ministry of Economy; Dr Obaid Saif Hamad Al Zaabi, CEO-Securities and Commodities Authority.

“We are expecting new companies to come in, more FDI (foreign direct investment) flow to the country and we are going to support those companies and direct them to right clusters and projects within the country,” Thani Al Zeyoudi, minister of state for foreign trade noted during the briefing.

The compulsory provision for a UAE national or a UAE-owned company acting as an agent has been abolished as part of the new measures. A stipulation requiring a company chairman to be an Emirati and for boards to have a majority of Emirati directors has also been abandoned.

The reforms have been welcomed by the business community as it would reduce the costs of doing business and improve competitiveness and stock market listings.

“There is no doubt that the new amendments to the commercial companies law will encourage local and foreign investment. It will encourage initial public offerings and listings in the country’s capital markets and will increase the rate of transactions and attract foreign capital, which in turn will increase the depth and size of financial markets capitalisation,” Obaid Al Zaabi, chief executive of the Securities & Commodities Authority said during the event.

Al Marri added the UAE currently has around 300,000 companies of various formats and also highlighted saying, “National companies represent 99.3 per cent of this figure, and the new amendments are designed to increase the number of companies operating in the country to one million within the next ten years.”

“Besides, they will accelerate the rate of transformation of SMEs in general into joint-stock companies listed in the financial markets to secure public financing, risk-based capital financing activities market development is also expected to be an outcome,”  emphasized Al Marri.

Al Falasi described the initiatives that are being undertaken in partnership with various concerned government establishments to lay sound foundations for the transformation towards a more flexible economic model including updation of the regulations and legislation governing economic, commercial and investment activities in the country.

Launching and implementing new initiatives and policies that would enhance the national economy’s ability to accommodate the changes in the current global economic scenario, develop future sectors and generate opportunities are also on the UAE government’s agenda to promote new business–set–up–in–Dubai.

The minister for SMEs pointed out that the new reforms would help protect the interests of both the UAE and the foreign investors by reviving the market movements, increasing the number and size of companies and projects in the country, and diversifying the foreign investment base.

Al Zeyoudi emphasized the efforts of the UAE to bring about a qualitative transformation to the existing economic model encouraging Emiratis to directly engage in business and invest in the local market.

“It will also boost the UAE’s ability to attract start-ups, innovative companies, and SMEs focusing on advanced technology,” Al Zeyoudi noted.

Al Saleh said as per the new law, the formation of a foreign company branch can now be possible without a Local Agent.

Recent policy reforms made UAE companies more optimistic than their global peers about profitability returning to pre-Covid levels in the next two years as business slowly recovers with more investments pouring in for doing–business–in–UAE.

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