UAE client case studies
Japanese leading oil & gas company establishes a Foreign Branch in the United Arab Emirates
- Our Client is a Japanese Oil & Gas trading company which has supplied for Japan, Indonesia, Singapore and other Asian countries’ energy security for over 50 years;
- In January 2018, our Client decided to incorporate a Foreign Branch in Dubai to retain 100% ownership by the parent company;
- The main purpose of the Dubai branch office is to provide operational support to the parent company, including i) discharging the cargo at the port of delivery out of UAE (Bangladesh, Pakistan etc.) and ii) ensuring the cargo characteristics, volumes and quality are as agreed between Client and the parent company. In addition, Dubai Branch will promote the Liquefied Natural Gas products in MENA, South Asia region as well as Pakistan and Bangladesh. Our Client will not be involved in i) trading activities within UAE nor ii) import/export of products.
- Healy Consultants Group prepared and emailed our Client an engagement advancement proposal including a formal invoice, the engagement letter, the due diligence checklist and a list of our existing and past client for professional reference;
- Our Client promptly provided us with the due diligence documents and settled our complete invoice. Thereafter, Healy Consultants Group prepared i) a detailed engagement project plan mapping out by step plan to engagement completion and ii) a quality business plan to assist with corporate bank account opening;
- Following discussions with our Client regarding his intended business and confirmation from Client they wanted to proceed, Healy Consultants Group also translated the parent company MOA to Arabic language and met with the Department of Economic Development (DED) to confirm the branch was eligible to conduct their intended business activities in Dubai;
- Healy Consultants Group prepared a list of documents that our Client needs to i) certify by a Japanese Notary Public, ii) attest in the Ministry of Foreign Affairs and iii) legalize in the UAE embassy in Japan. It took our Client one month to attest all the documents in Japan and courier it to Dubai. Thereafter, within three days Healy Consultants Group translated the documents to Arabic and attested the same in the Ministry of Foreign Affairs and the Ministry Of Justice in Dubai.
- Within one day Healy Consultants Group reserved a branch name and submitted a quality complete branch registration application package to DED, for initial approval. Healy Consultants Group used the attested Board Resolution, which allowed us to register the Branch with the respective UAE authorities, so our Client didn’t have to travel to Dubai at this stage of company registration;
- Within one week, Healy Consultants Group provided our Client with the initial approval certificated issued by DED. Within an additional week, Healy Consultants Group helped our Client to find the right business premises in Downtown Dubai;
- Every foreign branch in Dubai requires to appoint a Local agent, who must be a UAE national. Healy Consultants Group therefore provided our Client the full due diligence of our trusted local agent and our Client signed a Local Service Agent (LSA) agreement. The local agent does not have voting rights nor managerial decisions, instead they just represent our Client in front of Government departments, sponsors visas and assists to review the company license annually;
- After the local service agent agreement has been approved and signed in front of the Dubai Court, Healy Consultants Group submitted the required documents to the Ministry of Economy for pre-approval. It took the Ministry of Economy three weeks to issue the initial approval;
- Our Client signed the lease agreement for office premises and Healy Consultants Group completed the Ejari attestation. Healy Consultants Group submitted the attested lease agreement together with the remaining documents to Dubai DED to issue the trade license. Within one day, DED approved our Client’s application and issued Dubai Branch Commercial License;
- Healy Consultants Group submitted all documents to the Ministry of Economy for a final licensing approval. However, before the Registration Certificate can be issued, every branch must make a deposit of AED50,000 equivalent US$13,612 to the local company account and present a bank guarantee letter to the Ministry of Economy. In theory, the bank guarantee must be submitted within one month from the date of commercial license issuing date, otherwise the Ministry of Economy imposes a penalty of AED1,000 (US$274) for each month of delay. This means in theory, the bank account should be open within two weeks, so our Client has the time to make the bank guarantee deposit and the bank has the time to issue the bank guarantee letter. In practice, no bank will open the corporate bank account so fast. Consequently, Ministry of Economy penalty is unavoidable;
- At this stage, our Client requested to assist with the employment visas. Healy Consultants Group sent to our client i) an invoice; ii) the list of documents required; and iii) the visa application forms. A UAE attested university degree is required for each managerial position, including sales;
- Within one month, Healy Consultants Group helped our Client i) to secure the company establishment card with the Ministry of Labor; ii) to complete the office premises inspection with the local authority Taqeem, before we submit the visa applications to the immigration department.
Corporate bank account opening
- Immediately, Healy Consultants Group submitted the business plan and the initial set of due diligence documents to one of Mashreq Bank to secure a bank account opening;
- While the company registration was under process, Healy Consultants Group secured the work and entry permits for our client’s employees and arranged the meeting with the bank officer. The branch manager, who is a bank signatory travelled to Dubai to i) sign the bank application forms; ii) stamp the resident visa;
- After the bank account numbers were issued, our Client deposited the amount of AED50,000 to the newly opened company account. The branch registration was on hold almost for three months due to the time it took the bank to i) complete its’ KYC check for the client; ii) issue the bank account numbers; iii) issue the bank guarantee letter. The bank explained this delay happened due to the corporate structure of the mother company has multiple layers.
- To comply with the Ministry of Economy requirements, Healy Consultants Group i) settled the penalty of AED 5,000 (US$1,369) imposed by the Ministry of Economy and ii) submitted the bank guarantee letter to the authority. Within one week the branch registration was completed and the Registration Certificate was emailed to our Client;
- To comply with the Ministry of Labor requirements, Healy Consultants Group assisted our client to register the branch with the Wages Protection System (WPS). An electronic salary transfer system that allows the company to pay workers’ wages;
- Lastly, Healy Consultants Group couriered to our Client a company kit, including i) company incorporation documents; ii) company stamp; and iii) a Client feedback survey.
UK Sports Consulting Company Establishes a Branch in Dubai
Our client, a global sports consulting and management conglomerate with their headquarters in the UK and with subsidiaries in Latin America and the Middle East wished to establish a presence in Dubai to venture into the untapped niche market in the region. Having found Healy Consultants Group PLC business website through Google, our Client approached Healy Consultants in February 2017 to determine the ultimate corporate structure and Dubai free zone to register their business. After expert analysis and deliberations with Healy Consultants’ UAE business setup experts, our Client decided to register a branch office in the Dubai Media City Free Zone.
Healy Consultants Group PLC prepared and emailed our Client an engagement advancement proposal including a formal invoice, engagement letter and due diligence checklist and a list of our existing and past client for professional refence. Our Client promptly provided us with the due diligence documents and settled our fees in full. Thereafter, Healy Consultants Group PLC prepared a detailed engagement project plan mapping out a step by step plan to engagement completion as well as a quality business plan to assist with corporate bank account opening in Dubai.
Healy Consultants Group PLC firstly confirmed with the Dubai Media City Free Zone Authority the optimum cluster suitable for our Client’s business and informed our Client of the same. Healy Consultants Group PLC then prepared the corporate structure, obtained the necessary branch registration documents from the DMC, prepared the board resolution and emailed the same to our Client for signature, notarization and attestation in the UK and courier back together with other additional parent company documents. Upon receipt of the original attested documents from our Client, Healy Consultants Group PLC submitted the complete quality branch registration application with the DMC FZA. Within 1 week of application submission, Healy Consultants Group PLC obtained the approval of the DMC FZA, secured the Commercial License of the branch office and immediately emailed our Client a scan copy of the same.
Corporate bank account opening
With the branch registered and commercial license obtained, Healy Consultants Group PLC approached multiple Dubai banks to secure in writing their interest for our Client’s business activity. Healy Consultants Group PLC then prepared all the required bank due diligence documents and scheduled multiple meetings with Dubai banks in accordance with our Client’s preference. Upon meeting with the bank officers at Healy Consultants Group PLC Dubai office, our Client decided to proceed with Emirates NBD Bank as their preferred banking institution and signed the necessary bank forms. Further, Emirates NBD advised that parent company documents had to be notarized and attested in UK and originals couriered bank to Dubai.
Upon receipt of the signed, notarized and attested documents, Healy Consultants Group PLC assisted our Client to complete the legalization process with the Ministry of Foreign Affairs (MOFA) in UAE. Healy Consultants banking team thereafter submitted a quality corporate bank account application to Emirates NBD for consideration. Within 2 weeks thereafter, Emirates NBD compliance department approved the multicurrency corporate bank account and directly emailed our Client the bank account numbers. The bank then couriered the internet banking token to our Client’s UK address within the subsequent 3 weeks.
To conform to the DMC’s statutory requirements, Healy Consultants Group PLC procured and provided our Client with a company stamp from a UAE Government approved agent. Upon receipt of all the corporate documents, our Client’s legal representative collected all the original branch office documents from Healy Consultants Group PLC’s Dubai office.
Securing UAE Tax Residency Certificate with India
Our Client contacted Healy Consultants
for assistance in securing a UAE Tax Residency Certificate (TRC) with India by August. Our Client facilitates delivery of global technologies with customized local solutions for Bauxite & Alumina and wider Mining, Minerals and Chemicals industry. It is based in San Francisco and has a major partner located in India.
Our Firm confirmed that a TRC can only be issued to an active company that is at least 1-year-old. Unfortunately, our Client did not meet this requirement and consequently we suggested our Client to buy a ready-made company that complied with the minimum requirements. Our Client agreed and our Senior Manager of Client Engagement, Ms Chrissi Zamora started sourcing and shortlisted 6 suitable companies. Eventually, our Client chose to proceed with an Umm Al Quwain (UAQ) company that was 1.5 years old.
Company purchase and TRC application
Healy Consultants conducted a due diligence check of the company including audited the company’s financial statements. Healy Consultants emailed our Client the results of our due diligence check and concluded the company was in good standing.
Immediately after, we prepared and submitted a TRC application to the UAE Ministry of Finance. The application included i) company documents, ii) audited financial statements, iii) 6-month bank statements, showing operational activities and iv) the personal information of the resident manager. Luckily, UAE Ministry of Finance approved the application in five days.
Right after we secured the TRC, we made changes to the company’s corporate structure to appoint our Client’s preferred new managers, directors and shareholder. The process was successfully finalized within 2 weeks.
During our engagement planning, we agreed with our Client that we would assist our Client to change the bank signatory of the existing corporate bank account at Noor Bank in Dubai and also open a new Emirates NBD bank account.
Our Client travelled to Dubai in early September and met with our preferred bank officers. The bankers conducted a due diligence check following which i) he was successfully appointed as sole bank signatory to Noor Bank’s existing corporate account within 5 days and ii) Emirates NBD account was successfully opened within 9 days.
In September, we couriered a company kit to our Client and received excellent feedback with regards to the services provided by Healy Consultants. For more information on this engagement and/or to obtain the contact details of our Client, please contact our Senior Manager of Clients Engagements, Ms Chrissi Zamora.