Accounting and tax
Healy Consultants Compliance Department will assist our Clients efficiently and completely discharge their annual accounting and auditing obligations in accordance with the Dubai corporate law. This is what our Clients need to know:
- Dubai tax system exempts resident companies and individuals from personal income tax, capital gains tax, value added tax (VAT), withholding tax and corporate tax. That said, customs duties of 5% apply to imports;
- Only oil, gas, and petrochemical companies and branch offices of foreign banks are required to pay taxes;
- Audited financial statements are submitted to the Ministry of Commerce within 4 months of end of the accounting year. Healy Consultants will provide our Clients with accounting services;
- All goods imported into the UAE require customs clearance which may only be obtained upon payment of the applicable customs duty. If an importer fails to settle the duty, the customs authorities are empowered to sell the goods to recover the due amount;
- UAE has Double Taxation Avoidance Agreements (DTAA) with 71 countries including Canada, China, France, Germany, India and Singapore;
- Healy Consultants will assist our Clients with i) documenting and implementing accounting procedures ii) implementing financial accounting software iii) preparation of financial accounting records iv) preparing forecasts, budgets, and sensitivity analysis for Dubai company registration;
- For an active trading company, our accounting and tax fees are an estimate of Healy Consultants fees to efficiently and effectively discharge your annual company accounting and tax obligations. Following receipt of a set of draft accounting numbers from your company, Healy Consultants will more accurately advise accounting and tax fees. For a dormant company, Healy Consultants fees are only US$950;
- It is important our Clients’ are aware of their personal and corporate tax obligations in their country of residence and domicile; and they will fulfill those obligations annually. Let us know if you need Healy Consultants’ help to clarify your annual reporting obligations.
Legal and compliance
Healy Consultants Compliance Department assists our Clients efficiently and completely discharge legal and tax obligations.
- The legal framework of the Emirates is a dual acting system which comprises of mainly Islamic shariah and aspects of conventional law;
- Dubai company directors are appointed, replaced, and dismissed by the shareholders. Only the directors have the power to manage the day to day operations of the company. The identities of shareholders and directors are on the public register;
- The memorandum of association is a contract between the shareholders and comprises i) company activities ii) registered office address iii) shareholder and director details iv) share capital v) profit distribution method in the company;
- During Dubai incorporation process, our Clients will be required to appoint a manager. The manager is appointed by the memorandum of association or by a separate management contract. Unless otherwise stated in the MOA, the company manager shall enjoy full powers of administration, and his acts shall be binding to the Company, provided that it is supported with stating the capacity he enjoys;
- Every company must lodge an annual return confirming relevant details of the company for the public register including names and addresses of all directors, address of principal place of business, and details of shareholders and their shares;
- All business activities conducted in Dubai receive government approvals, permits and licenses. There is an obligation to register particular products with the government, including food, medical equipment, cosmetics, and medicine;
- UAE is a full member of i) the World Intellectual Property Organization (WIPO) ii) the World Trade Organization (WTO) iii) the Paris Convention iv) the Patent Cooperation Treaty (PCT) v) the WIPO Copyright Treaty vi) the WIPO Performances and Phonograms Treaty and vii) the Rome Convention;
- Foreign countries may only conduct business in Dubai after it is licensed to so by the Department of Economic Development (DED). The DED is the statutory body that regulates and controls the licensing procedures for all Dubai entities. Dubai company incorporation procedures will require our Clients to apply for the following licenses:
- A trade license for buying and selling of goods including wholesale or retail trade enterprises, contractors, hotels, transport and storing establishments, etc;
- An industrial license to discover natural resources or transform raw materials into manufactured products;
- A professional license to practice any profession such as engineering consultancy, auditing and accounting, business set up, medical, and educational services.
- It is not possible to incorporate company in one Emirate and setup office in another Emirate;
- A Dubai LLC is required to transfer 10% of net profits each year to a legal reserve until such reserve reaches a level of 50 percent of the paid-up share capital;
- The Department of Economic Development does not permit two different classified business activities under one license e.g. trading and manufacturing;
- The process of deregistering a company is dictated by the Government. This process will take a minimum of 6 months. Healy Consultants fee to project manage company de-registration is US$1,450. During this 6 months period it is mandatory to maintain a resident company secretary and a legal registered office.