CPA Audit Firm in Dubai

Useful Tips to Reduce Operational Cost of Business in UAE 2024

Naqqash Ahmad — Sat, 10 Dec 2022 09:57:06 +0000

Low cost is not something that enters one’s mind when he thinks about establishing a business in UAE because the skyscrapers, explicit architecture, and living standards in Dubai send a completely opposite message.

However, UAE is not only a glimmer and big budget. There are different proven strategies that can help you reduce your business’s operational costs, if implemented in the right way.

Dubai, in a very short period of time has become a center of attraction for starting up businesses because of its countless opportunities for new companies to grow and establish their setups in the market.

Any company aiming to establish in the UAE surely has a vision and strategic plans because running a business there has never been a piece of cake, especially in a place like Dubai.

Here are some possible effective ways that you can adopt to run your business with reducing Costs of Operation.

Experience Growth by reducing operational cost of your business in UAE

Follow the techniques given below to reduce operational costs and daily expenses of a business.

Look out for free zones:

Free zones can be a home for low cost business setup because of its affordable license policies, visa costs, tax exemption etc. Running a business needs space for an office which requires a good amount of budget that becomes a problem for low cost buisnesses but in the free zones you do not have to worry about the expenses.

To reduce the operational cost of business in UAE, free zones are benefiting from 0% tax exemption, the ability to spread their business in all other states and zero currency restrictions.

Some of the free zones are:

Dubai 1 Central
Dubai Media City
Dubai Airport Free Zone

Promote remote working:

Digital revolution has been transforming the conventional ways of running a business. It has provided easy and quick ways to communicate and operate that can help to reduce the business operational cost.

With the shrinking of hardware technology there is no longer need for a large infrastructure for offices where you have to invest on a large scale.

The implementation of cloud based technology provides you with so many options that give you the power to access the company systems via a variety of devices, conduct meetings, sell and advertise your products, search for different ideas from other established firms and companies.

Pros of remote working

Increase autonomy
Cost saving
Save time and infrastructure

Cons of remote working

Difficult to stay motivated
Sedentary lifestyle
Management challenges

Reduce supply expenses:

If you are about to start a business in dubai with low operational costs, always look for alternatives. Do not spend too much at once on the supply expenses- be this your office stationary or manufacturing, always look for a better deal somewhere that will help you to reduce the operational cost for business in UAE.

Switch to modern tools and find your niche:

You do not need to travel in order to attend a meeting with your business partners, that surely is not going to reduce your operational costs for business in UAE.

You can now have a detailed conversation, discuss ideas and projects with many people at once just by getting your hold on the modern tools such as zoom and skype meeting. You can also explore and learn different strategies of many successful entrepreneurs just by one click that in turn can help you focus on your business goal more efficiently.

Hire an accountant:

An accountant is a person who sorts out all your financial planning that is needed to run your setup. From planning a business to the formation of the company, and from government audits to paying taxes,it is only a qualified accountant who can handle these things professionally. So hiring an accountant can run up your firm smoothly and can help you to reduce the operational cost for business in UAE by consuming time and keeping the company safe from any major loss.

Hire interns:

Hiring interns at the beginning of your setup is another useful strategy to reduce the operational cost of business in UAE.
Interns are paid comparatively less than the standard worker employee while still executing the same level of work as an experienced person, another cherry on the top for hiring interns is when they are done with their training they can be hired in the first hand without paying any additional costs on training programs for new applicants as they will be already familiar with the job.

Sponsor your events to reduce operational costs for business:

If you have to host any business event to build good relationships with large companies in UAE, always look for the right sponsors to pay for it by giving them the advertisement and discounts on your services. Hosting a party or event in the UAE can be challenging but with the right planning, you can reduce the operational costs for business in UAE efficiently.

Review expenses to keep on track in order to know your position in finance, hire someone who is professional enough to deal and manage the finance.
Keeping a professional record is essential to reduce operational cost for your business in UAE as it can provide you with a realistic scenario about where and how much of your finance is consumed.

FAQs

How to maximize profts and minimize costs?

Never compromise on your product quality, use modern advertisement strategies, get in touch with already established firms.

Why reducing operational task is important for business?

With growing business revenues also increases, so it is important to maximize your profit by keeping a strict eye on your business operational costs. For a business to grow, the foremost concern is to control the budget by making weekly or monthly plans and follow them strictly

What are some effective methods that can help you to reduce your business operational costs?

Improve demand forecasting
Re evaluate your assets
Find less expensive suppliers
Outsource some of your company tasks

Online Advertising can improve your sales and lower your operational cost?

Advertising through social media platforms can help you to gain more audience at lower cost as compared to the old outdated advertisement ways which are costly and time consuming. Modern marketing strategies can reduce the operational cost of business in UAE.

What are the main factors that lead to the downfall of your business in UAE?

having sales with negligible profits
Investing too much in the office infrastructur
Hiring more staff more than the requirement
poor management of revenue
Investing too much on advertisement while selling compromised
Quality in the market

What is an Offshore Company in Dubai UAE?

Naqqash Ahmad — Fri, 25 Nov 2022 05:45:39 +0000

This article will give you every bit of crucial information you need to establish an offshore company in Dubai and the UAE as a whole. It will also inform you about the types of businesses that cannot be set up as offshore businesses. It will provide a list of documents needed to register an offshore company and lastly whether a business owner should hire an agency to assist in the incorporation process.

Let’s start with the most basic question:

What is an offshore company in Dubai?

An offshore company is any company/corporation/firm that is established on one land but operates on another. This is mainly done to avoid taxes on the profits that it is making. The hard-earned profit that businesses can spend on the expansion of the business is excessively taxed which discourages business investment. Not establishing an offshore company in Dubai could be a catastrophic decision for an expanding business.

There are innumerable places to open offshore companies. But incorporating your business in Dubai has its merits. These are 6 irresistible reasons to incorporate your offshore company in Dubai.

No outrageous corporate taxes.
Captivating Political stability.
The financial hub of the world: businesses get close to their trading partners.
One of the most popular business establishments in Dubai.
The best system for wealth management, international investment management, and freedom of operations.
Privacy and anonymity.

Why is DUBAI the most Inspiring place to form an offshore business?

Dubai is named in the same league as Frankfurt, London, Hong Kong, and New York. It provides all the benefits of tax havens without the bitter nuances of other tax havens. It is a place that does not penalize a business that is performing well by taxing its profits.

In Dubai, a business does not generate more sales and profits merely to be doubled-taxed; neither is privacy compromised by publishing corporate reports. In fact, you hardly pay any tax and get known.

It is also the financial hub of the world where business owners get to manage their wealth and investments with ease of setup, anonymity, and privacy. In other words, business owners set up their business in a real tax haven-freeing a deserving investor indulges in profit-making without any guilt.

Before a business is established as an offshore company in Dubai, the owner should be clear about the type of businesses that can be incorporated in Dubai.

Common types of businesses that can be established in Dubai

Below is a list of common business types that are commonly formed in Dubai:

Intellectual property(IP) holding Companies
Shipping firms
General trading firms
Online advertising companies
Distribution firms
Logistics firms
General trading companies
Professional consulting services
Different types of brokers
Real estate holding firms

What offshore companies in dubai cannot do?

Given above are the types of businesses that can be registered as offshore companies. But even though these types are legal offshore firms, there are two activities that they cannot perform, given below:

Trade inside UAE
Employee people

Businesses that cannot be incorporated as an offshore company in dubai

Next, we provide a short list of the main types of businesses that cannot be incorporated as offshore businesses;

Aviation
Media
Insurance

Note: Once an application for the offshore company is submitted, all business types go through the Know Your Customer(KYC) check. It is to ensure that the activities performed under a business are legal.

Unbelievable benefits of offshore company formation is Dubai

100% ownership
Offshore companies don’t pay
- Corporate tax
- Income tax
- Inheritance tax
- Property tax
- Personal tax
Bank account
- Companies can open UAE bank accounts and hold multiple currencies.
- International expansion: offshore companies may expand to other countries.
- Stable political, economic and social base.
UAE offers one of the most stable Socio-political environments where law rules.
- Privacy
1. An offshore company cannot be audited.
- The corporate reports cannot be published
Access to funding
- Being in the financial hub of the world gives business creditworthiness and Good credit ratings to obtain financial funds for its operations abroad.
- Access to solvent foreign banks
Businesses banned other places
- A business that is banned in other countries can run its office in Dubai.
Help in IPO( initial public offerings)
Hold intellectual property and real estate.

These are some of the compelling examples of the benefits an offshore company enjoys.

Documents required to register an offshore company in Dubai

Business plan (ideal is 3 years but not a must have).
6-month Bank statement or original bank reference letter.
CV of shareholders
Passport copies of shareholders
Your address( the one on utility bills will do)
3 options for business name complying with business naming rules
Description of your company operations

A straightforward guide to the registration process

Given below are the main steps a business owner must take to register an offshore company in Dubai.

Choose a name
Fill applicating
Draft of MOA(memorandum of association) and AOA(Article of Association)
Open an onshore bank account
And follow the rules.
And put aside around AED 12,500 to register an offshore company in Dubai

Hiring an agency?

Although the UAE law is clearly stated and the laws rule in the UAE, the legal system can be tricky to understand. What at first seems like a simple process may become a nightmare for a business owner easily turning fantasy into horror. A small mistake may result in the rejection of your application. Therefore, it is advisable that a business owner hire a Dubai offshore company formation agency to guide on every step of the process. Still, an entrepreneur may incorporate an offshore company if he or she is skilled in the company formation process.

Capital Plus Auditing can partner up with you to handle all your offshore company formation tasks. Click the button below to schedule a free meeting to get our Offshore Company Formation Services in Dubai and UAE.

How to Easily Apply for a Business Loan in Dubai in 2024

Naqqash Ahmad — Sat, 12 Nov 2022 06:21:49 +0000

Dubai is a dream marketplace to build a new start-up due to its efficient business environment and business-friendly tax policies. But to start any business in Dubai, first, you need some investment or funds to raise primary capital. Getting a loan from someone is a great way to gather initial funding.

If you want a sufficient amount to start your new business, you can choose different options to apply for various business loans. This article will guide you through top tips for applying for a business loan in Dubai and the benefits of each business loan, including four critical types of loans.

Apply for a Business Loan in Dubai

To acquire a loan in Dubai, you apply to higher authorities, Banks, and other loan funding organizations.
You have to apply for a business loan in Dubai with a step-by-step procedure. Otherwise, you will end up with the need for more required documents. That might lead you to high waste time, ruin your plans and screw your business schedule.

Here is a step-by-step guide to applying for a small business loan in Dubai.

1. Check your eligibility for a loan in Dubai.

Many small businesses in Dubai are eligible for loans, and your business might qualify for one too. Here are the eligibility criteria. Compare it with your business details, and if they match, proceed to the next step.
Your business age must be at least two years old. It means you have had a registered business in Dubai for the past two years.
Your business per anum turnover must be at least AED 1 million (depending on bank/loan funding organizations).
Bank statement of your business for the last 6 – 12 months.
If your business fulfills the criteria mentioned above, complete the next step.

2. Choose the correct type of loan.

To apply for a business loan in Dubai, you must pick the right kind of loan for your business. There are four different types of loans in Dubai for a small businesses.
These four types are described below.

1. Standard business loan

This type of loan is a bit strict compared to others as it is strictly for business purposes. You have to repay a fixed monthly installment over an extended period. Another is that it typically has set payment terms unless the loan is under a variable rate.

2. Friends and family loans (F&F Loans)

You can directly approach your friends and family for the desired amount. You can achieve the goal of flexible payment terms when you acquire this kind of loan. On the other hand, you can lose your relationship or friendship if repayment goes the wrong way. You need to be wise when choosing this type of loan.

3. Credit Card Loan

You can get an advance payment from banks through credit cards. Most banks charge high-interest rates. If you are not good in revenue in the initial stage of your business, you may end up in debt.

4. Small business Associations (SBA) backed loan.

This loan is supported or backed by the government of Dubai. You could go for this type if your bank loan applications got rejected. But the worst side is that the government will impose harsh penalties on your business if you do not meet the payment terms.

3. Familiarise With the Concept of Islamic Finance in Dubai

Islamic Finance indicates all the financial ventures and investments adaptable to Sharia, which is the term for Islamic Law. Before applying for a loan in Dubai, you must be familiar with these. A few of the essential rules ate listed here;

You cannot earn interest through lending or borrowing money; it is forbidden.
You must make money earned through legitimate trade and investment of assets.
Your money must be spent in productive ways.

After considering all the above points, let’s move to the next one.

4. Prepare the correct documentation.

Suppose you prepare all your documents to Apply for a Business Loan in Dubai. It will ease and fast your next step in the procedure.
Here are the few primary business documents that the bank requires to apply for a business loan in Dubai:

past 6-12 months Bank statements
Bank application fulfilled form.
Association document / Power of Attorney of your business / Agreement document for partnership;
Your original trade license for verification;
Your passport copy (the one who apply for a business loan in Dubai).

Besides these essential documents listed above, some banks usually require additional documents. There should be with you as well:

Your Home Residence Tenancy Contract or your Sharing Accommodation Letter
Transaction invoices (should be high volume)
VAT Certificate
Financial Audit statements / Reports
List of employees provided by the Ministry of Labor
Your business Trade License

5. Final step

Visit any of your nearest bank branches, which have the facility to give you a loan for business in Dubai. Ask for their terms and conditions, minimum time to get access to your loan, range of business loans, repayment methods, repayment time, monthly repayment amount, and most importantly, their interest rate.

If you feel satisfied with their methods and conditions, fill out their application form. Attach all of the required documents and submit your application to the manager.

They will let you know the time taken to process your amount; wait for that time. And yeah, your loan is delivered to your business account.

Benefits, if you'll apply for a business loan in Dubai

No security requirements: free and easy access to finance with rock-bottom formalities.
Best and fair pricing, with a commitment to maintaining fees and profit rates amongst the lowest in the market.
Fast decision-making and processing turn-around times, with most credit decisions made within 48 hours.
Transparency; Clear and straightforward terms, conditions, and eligibility requirements.
Convenience; All installments will be automatically debited from your business bank account.
Flexible repayment tenure; Choice of repayment periods between 12 and 48 months.
Loan top-up facility after 12 months of satisfactory loan performance.
Buy-out option; you can take help to transfer your existing loans and credit facilities from another bank.
No requirement to submit audited annual statements.

Risk involved in business loans in Dubai

1. Credit Score

If you rely on debt financing too much in Dubai can help your personal or business credit score if you make timely payments. But if you will not be able to make timely returns, it will hit your reputations in Dubai and might affect you, when you will try to apply for a business loan in Dubai other time.

3. Personal Liability

If your company goes out of business, before it can pay its debts, you may be left with a personal financial load that may take years to settle and may even result in personal bankruptcy. Finance grows slowly in the first few years of operations to prevent acquiring too much debt before your company model sustains your operations.

4. High Debt

Occasionally, your company will discover that you can acquire many loans simultaneously or over time. Just because your company can do so does not imply it should.
If you secure a loan and then borrow more before the initial loan is returned, it could indicate that your company is experiencing significant financial difficulties.

5. Interest Rate Volatility

Depending on the type of business loan, you may be required to repay the principal and interest. A fixed-rate loan means your company will pay a fixed amount in interest over the loan’s tenure.

Each type of business loan in Dubai has its threat. Therefore, there are no exact right or wrong choices. Evaluating what loan features you prioritize more is crucial, which will help your business succeed. Being aware and prepared for the application process before apply for a business loan in Dubai can make the process much simple and more sophisticated.

FAQs

1. Where to apply for a business loan in Dubai?

Many banks give business loans easily in Dubai, such as:

ADCB
Emirates NBD
Mashreq Bank
Rak Bank and more

2. Is it a hassle-free process to apply for a business loan in Dubai?

Yes, applying for a business loan in Dubai is a smooth process. But sometimes, the process looks complex. Banks in Dubai demand to meet the set of companies’ requirements to approve a loan.

8 major differences between Bookkeeping and Accounting

Naqqash Ahmad — Fri, 11 Nov 2022 17:54:00 +0000

Bookkeeping and Accounting are two poles apart important functions for every entrepreneur and business organization. In simple words, bookkeeping is keeping records of financial transactions of a business whereas accounting is the system of recording and summarizing business and financial transactions and analyzing, interpreting, classifying, verifying, summarizing, and reporting the financial data. Bookkeeping and accounting may appear the same or confusing to the untrained personnel. This is because both bookkeeping and accounting deals with financial data, require basic accounting knowledge, and classify, interpret, summarize and generate reports for businesses using the financial transactions. But, both of these processes are natively different and have their own couple of benefits.

Here we summarize 8 major differences between bookkeeping and accounting to help you better understand both of these functions.

Bookkeeping

1. What is Bookkeeping?

Bookkeeping is an activity or occupation mainly related to organizing and keeping records on a regular basis of the financial transactions of the business.

2. Objective

The main objective of bookkeeping is to keep the proper records of all financial transactions of the business.

3. Skills Required

There is no particular skill set required for a Bookkeeping job. But it may depend on the company policy and HR.

4. Analysis

The analysis is not included in the bookkeeping process.

5. Types

There are basically two types of bookkeeping

Single-entry bookkeeping
Souble-entry bookkeeping

6. Decision Making

The Management of the business can not take a decision solely based on the data provided by bookkeeping.

7. Preparation of Financial Statements

Financial statements of businesses are not prepared by bookkeeper as a part of this process.

8. Bookkeepers and Accountants

Bookkeepers should have the necessary knowledge about financial affairs and be accurate in their work. Bookkeepers’ job is usually supervised by an accountant.

Accounting

1. What is Accounting?

Accounting also known as accountancy, is the process of recording, financial transactions along with sorting, retrieving, summarizing, interpreting, and presenting the results in various reports. Accounting is also a profession dedicated to carrying out those tasks.

2. Objective

The main objective of accounting is to measure the financial situation of the business or organization and further communicate the data to the relevant authorities. The accounting department also makes preparations for a company’s budgets and plans loan proposals.

3. Skills Required

Accounting requires specific skill set due to its complex and analytical nature, some of the required skills are:

Accounting Practices Knowledge
Expertise in Accounting Software
Can Prepare Financial Statements
General Business Practices Knowledge
Data analyzing ability
Critical Thinking Skills
Organizational Accounting Skills
Time Management Skills

4. Analysis

The accountant uses information gathered by the bookkeeper to analyze and interpret the data and then compiles it into reports and discusses it with the higher authorities

5. Types

There are nine most common types of accounting, which are:

Auditing
Tax accounting
Financial accounting
Managerial accounting
Forensic accounting
Public accounting
Cost accounting
Governmental accounting
Accounting information systems

6. Decision Making

The management of the businesses or companies can take critical business decisions depending on the data provided by the accountants.

7. Preparation of Financial Statements

Financial statements are prepared by the accountant during the accounting process.

8. Bookkeepers and Accountants

The title of Certified Public Accountant (CPA) is given to accountants with sufficient education and experience.

We believe that Bookkeeping and accounting are a vital part of every business and organization. Capital Plus Auditing of Accounts (CPA) has been offering the best services in this domain in Dubai for over 5 years now and has served several clients. We have a team of certified and professional accountants who provide the best services in the region. Our accountants and bookkeepers are updated with the new market trends and are skilled to work on technologies and emerging tools. By outsourcing your accounting and bookkeeping job to us, you can save almost 40% of your cost and work burden and you can concentrate more on your core business functions.

If you need any kind of accounting and bookkeeping service, feel free to contact us or write to us. We will respond to you within 24 hours.

Rule Of Thumb Business Valuation Methods

Naqqash Ahmad — Thu, 03 Nov 2022 06:21:45 +0000

Business Valuation is a process that determine the economic or market value of your business unit. A company valuation can use to determine the business’s assets value for various reasons;

Including sale and revenue value
. Establishing partner ownership
Taxation
Divorce proceedings

Business valuation can also let you know about the worth of departments or units. You can get assets value of your whole business or few departments.

There must be few questions in your mind now about business valuation. Like why your business need valuation, which department to valuate and most specifically, what are the methods used to evaluate your business.

Well, we have a best practice in valuation of businesses and major companies. So you’ll get all of your answers below. Stay with us!

What is included in Rule of Thumb business valuation method?

The rule of thumb business valuation methods includes an analysis of the company’s management, capital structure, future expected earnings, or the market value of its shares.
The tools used to evaluate your business can vary from evaluators to firms and industries. Frequent approaches to business valuation include an analysis of the following;

Financial records
Discounting resources models
Related company observations.

You have a great successful business, but you don’t know the potential of your business, its market value, its future, and much more. You don’t know what comes around the following day, as it’s an unexpected life.

Before anything unexpected happens in your Business like any dispute, bankruptcy, or massive loss, you need to evaluate your business.

Key Reasons Why Your Business Needs a Valuation

There are few main reasons that we will discuss with you. For these particular reasons, you need to business valuation. These key points are stated as under;

Avoid disputes

If your business is rapidly growing in the market, you must avoid disputes, especially with other businesses. You have to save money on unexpected pay-outs, as listed above.

Fund Raisings

A business valuation will let you know your real business value in market. If you need any cost to promote your business to an extent, it will help you understand how much exactly investment you need.

Strategic Decisions

Your business needs valuation at the time of bankruptcy when you have to make critical decisions about your future and plan yourself. Strategic choices will help you to enhance your business performance. Knowing your business value is much more critical during liquidations, bankruptcy, fundraising, and divorce cases.

How to calculate your business valuation?

You can evaluate your business by subtracting liabilities from your total assets. However, this easiest rule of thumb business valuation method doesn’t always give the complete picture of your business’s market value. Several other methods exist.

Such as;

1. Book value
2. Discounted cash flow analysis
3. Market capitalization
4. Enterprise value earnings etc.

These are the different methods to evaluate your business. But today, we will discuss one of the popular business valuation methods. That is the Rule of thumb business valuation methods.

Rule Of Thumb Business Valuation Methods

Implementing the rules of thumb business valuation methods has a long and comprehensive history within the business community. Here we will tell you a secret about rule of thumb business valuation methods. It should be used as a quick and cost-efficient method to calculate an assets value of their enterprise. And when it should be consider more traditional valuation techniques.

When do you need rules of thumb business valuation methods?

This method commonly values a company depending on collectives from the specific industry. However, you cannot use only this approach while valuing a business. The Rule of thumb valuation methods only gives an approximate valuation particular to the industry. It doesn’t discuss any other main factors that affect the valuation. Whenever you need a simple evaluation or an expected valuation of your business, you can go with the Rule of thumb business valuation methods. It will not give you exactly proven statistics, but somehow you will get accurate results.

Rules of Thumb Business Valuation Approach

There are two basic methods in the Rule of thumb. These methods are used for quickly estimating the value of a business.

These methods are as follows:

The multiple to the compulsory earnings.
Percentage of the annual gross income.

The more accurate of the two guidelines looks for an estimated precise value for a business by adding the yearly or monthly compulsory business income. Compulsory earnings are not the profit or loss values shown on your tax return.

Methods in Rules of Thumb Business Valuation

There are two basic methods in the Rule of thumb. These methods are used for quickly estimating the value of a business. These methods are as follows: 1. The multiple to the compulsory earnings. 2. Percentage of the annual gross income. The more accurate of the two guidelines looks for an estimated precise value for a business by adding the yearly or monthly compulsory business income. Compulsory earnings are not the profit or loss values shown on your tax return.

The Multiple of Compulsory Earnings Method

Almost all privately held businesses will appraise for somewhere between one to six times discretionary earnings. Where within these ranges by category a particular company falls depends on many factors considered by valuation experts. Wholesale distributors, in general, are valued at between 2.75 to 3.75 times discretionary income.

Percentage of Revenue Method

Applying a percentage to the company’s annual gross revenue gives a better sense of how the business is valued. However, remember that bottom-line earnings must support all calculations, so keep that in mind when comparing businesses.

Five Rules of Thumb for Business Valuation

In Rule of Thumb Business Valuation methods, there are five basic fundamentals of thumb rule that can apply to business valuation. They cover the basics of the valuation and the business by themselves, both of which will suggest the specific metrics to use in estimating value. There are various articles, lists, and blog posts on several websites regarding how to value a business established on revenue, business valuation multipliers, comparable, and other value measures. Five fundamentals of Rule of Thumb business valuation methods are discussed below. Here we summarize all of them for you. Keep reading ahead!

1. Understand the Purpose of the Valuation

It’s essential to understand the purpose for evaluating because it will decide the assumptions you make, the measurements used to consider value, and ultimately, Your advice on the matter of the company. Once you recognize the reasons for the valuation, then you can implement rule of thumb business valuation methods to evaluate the extent of your role in determining the value.

2. Go To the Right Sources for Your Rules

Look for proper guidelines for the particular case using the correct rule set. Few rule set are describe here for your better understanding.
Let’s assume, if you need anyone of them, go with proper rule set.

Such as for:
Federal tax purposes: Follow the rules in the IRS code accounting for financial.
Markets: Look at industry standards.

3. Understand the business

To get proper, fair, and honest value for a business, you must understand it. Talk to relevant parties and stakeholders about business to get better understanding. Ask for the correct details to get the right stats of data for your value estimation. You need to communicate with the business owner or the manager for the business valuation. Without better understandings, you can’t apply rule of thumb business valuations methods to your business.

4. Use the right metrics for valuation.

Using an objective market approach, using multiples to compare with other companies, can assist you in avoiding an over-focus on revenue. Comparing businesses in different trades will not give an accurate and clear picture. Revenue may navigate trends in one trade, while profit margins might be most important in another business. When considering revenue income, finding the right measuring metrics is important factor

5. Get professional advice

If you’re unsure about the right approach for organizing the value of your company assets, contact a business valuation professional for advice. An experienced person confident with the basic valuation principle will use the particular metrics to establish a fair, honest and defensible valuation. Different kinds of business valuation procedures are suited to specific needs.

Rules of Thumb in Formal Business Valuation Report

In specific scenarios, Chartered Business Valuators (“CBV”) might apply exact rules of thumb for formal business valuations. Although CBVs traditionally use earnings or cash-flow-based procedures as a primary valuation method and then consider rules of thumb as a secondary check.

Suppose the Rule of thumb business valuation method test’s conclusions is inconsistent with the CBV’s calculation.

It may help to indicate that further understanding and analysis are required or that a revision to the primary valuation methodology is needed. Rules of thumb are, however, rarely used as the primary method of calculation.

Benefits of business valuations

Understanding your current business and value is essential to help you quantify where it stands in the market. How far you came till your first day. Results will motivate your employee and you to come forward and work smart to achieve your next goal. It will help your business to touch new heights in the market.

1. Understand the Potential for Growth

Rule of Thumb Business valuation method will create a baseline for your company firms that will help you understand your financial goals, marketing strategies, and other business objectives. You can increase your potential for growth with business valuations services in Dubai.

2. Plan your retirement

Are you at the age of retirement and want to sell your business? Want to hand it over to stakeholders? You need business valuation services to get the actual value of your company. Then you have to proceed with buyer parties. If you do all this in a hurry, you may sell it at a low cost that is not good for you, your employee, and your stakeholder.

3. Ensure proper protection of your assets

You need to ensure your business’s protection as it operates. It would be best if you plan your business for unexpected situations. Protecting your business in disputes, death, or divorce would be best.

4. Agreement with partners

Do you already plan to retire and want to sell your shares to another business owner? It is what happens when you will sell your stake. Buy-sell agreements may disrupt the business environment, but they will smoothly hand over to others if you have an already business valuation.

5. Strategy your future acquisitions

Business valuation lets you know the actual worth of your business, including plans and future acquisitions. A business valuation will help you to make your next move. Make the proper adjustments, and prepare to meet with lenders with your acquisitions team to develop your talent in the right direction.

The Problem with Rules of Thumb

Any of the proper valuation methods consider the following parameters to evaluate any business.

These parameters are

Business size
Business basic assets
Income or cash flow in the industry,
Economic and industrial conditions,
Aggressive market benefits,
And other unique factors while determining the appropriate value.

The main problem with the Rule of thumb method is; it doesn’t consider any of these above points. You might get an assumed estimation of your business. These values are not statistical and totally accurate.

Conclusion

Rule of thumb business valuation method is simple, easy and quickest way to determine values while saving your money and time at the same period. This method can be used in buy-sell agreements to help your concerned parties, if they want to see the value they will receive against their equity.
On the hand, this approach can have hidden assumptions concerning the risks and profitability of your business which can lead to an incorrect valuation.

Capital Plus Auditing of Accounts

As you reached here, you must be the business owner who want to know about business valuation methods or need services to evaluate your business.
Well, Capital Plus Auditing of Accounts team of professionals are ready to inspect into your business and give you 100% accurate market value. With more than 10 years of experience in the market, our professionals are specialised in finance, auditing and valuations strategy.
If you are the one, who want to know insights of your business market value. Click the button below to get a consultants advice or book any service.

How to find the right accountant for your small business

Naqqash Ahmad — Thu, 03 Nov 2022 05:41:18 +0000

You’re out in the market running a small business that might succeed soon. You’re helping your customers, and in return, they’re repaying you with that one thing every start-up needs to thrive: money.

You may have started making a massive amount, and your business is booming, and it’s time to get someone to help keep track of that money.

Is it the right time to need an accountant for your business?
Your answer might be, “No, no way.”

You can use an app or do it with business accounting software. So why do you need to spend the money?

We get it — whether you’re a seasoned seller or just getting started, every small business owner wants to cut down on costs and earn profit from better margins. So you only spend on what is necessary for your business.

We’re here to tell you that hiring the right accountant is necessary for your small business. When you hire an accountant, they can save your business with responsibility and make your life much easier as a small business owner.

Keeping the above benefits in mind, ask yourself;
When should you require a small business accountant?
How can you find the right accountant for your small business?

Don’t worry—we’ve got answers for you. Follow the steps checklist below to find the best business accountant for you.

Why should you hire a business accountant?

Before searching for an accountant, you need to start with primary questions to yourself.

What does your business need?
What kind of services do you need?
Do you need any help with your taxes?
Do you need someone to help with your daily accounting practices?
Is financial tracking something you’re missing?

Figure out why you need an accountant for your small business, and then search for someone with the desired skills to meet your needs.

Most small business owners look for an accountant locally that can fulfil their basic needs.
However, there are online accountants too, who are willing to provide services to small businesses. You will find them affordable and easy to communicate digitally.

Either you go for a local one or online, go with a small group of accountants that fit your essential criteria.

You find out why your business needs an accountant if you follow and answer all of the above questions.

How can you find the right accountant for your small business?

You can find the perfect accountant for your small business if you understand your needs.
There are four steps to find out an accountant. If you follow them, you’ll hire a professional business accountant for your company after completing the last one.
Let’s start with the very first one.

1. Referrals - ask other businesses about their accountants.

You are doing business, which means you are already in the market. To get referrals, you have to visit other small business offices. Meet their owner, manager or respective person responsible for their business accounts.

Check out who is helping them and how much they are satisfied with accountant services. Look out for their working criteria. Try to figure out their accountant speciality and other services according to your business needs.

Suppose you can’t hire a small business accountant via referrals. You can use the internet or the yellow pages to choose several firms that provide accounting services.

2. Call accountants you've selected and discuss their services.

Now you get a list of the right accountants from other small businesses or the internet. Start calling and asking them about their educations and experience in their respective industry.

You can also check for professional auditing firms; they might have good experience and education in your small business industry.

Now you have initial information about your potential accountants. You have to choose 3-4 accountants for an interview from this list.

3. Prepare a short list of questions to ask prospective accountants.

You are a business owner, so you don’t need to be shy about asking questions. How can you consider them the best fit if you do not ask questions? You need to know, what to look for in an accountant.

Ask about billing

List questions about billing rates and how they calculate them?
It would be best to ask them about their phone call and email policy. Ask them about phone call charges or email charges

Ask about availability

Ask them about their availability. How often are they available for a short phone call or email advice? It’s important; your accountant can contact you whenever you have questions.

Ask about tax return

List questions about charges for the necessary tax return file. You have prepared a copy of your previous year’s tax return file. Ask to calculate a rough estimate of the cost of preparations.

These are the most critical factors you must raise with them in an interview.
Lastly, choosing an accountant familiar with your business’s unique requirements and tax situations would be best. So you can use their services whenever you need them.

Ask about your business industry.

If you have special requirements, you can also evaluate them according to them.

For example;

If your business is digital and relies on the internet, you can ask your accountant about eCommerce business and its strategies.
If you are thinking about an export business, you might ask them how an accountant can help to develop an export strategy

Now at the end of step three, you have a massive list of questions. That is enough to evaluate your accountant’s capability. Let’s move to the last point.

4. Meet with the prospective accountant and ask your questions.

There’s nothing better than a face-to-face meeting. You can determine how well you can work with each other.

Besides, assessing the knowledge of accountants and asking your prepared questions. It would be best to find out how comfortable you are with your accountant and how well you can communicate.

When you pick up an accountant for your small business, you are not just going for assistance in accounts but establishing a long-term relationship too. So feeling comfortable with them should be your priority after evaluating their experience and education.

After all, the accountant will not just be your tax coach; they will assist you in building a road map for the future of your business.

Benefits of Forensic Audit Services in Dubai

Naqqash Ahmad — Thu, 27 Oct 2022 04:52:14 +0000

What is Forensic Audit?

In simple word, you can say “forensic audit is an examination of financial records to find any illegal financial activity,” this examination or evaluation will be done by outer member of an organization. Later on, those records are used as the evidence in court of law or legal proceedings.

Generally, Forensic audits cover a wide range of investigative activities. A forensic audit may be directed to prosecute a party for embezzlement, fraud, or additional financial crimes. Moreover, the auditor may also be called to help as an expert witness during trial proceedings of a forensic audit. Forensic audits could also involve situations such as disputes related to business closures, bankruptcy filings, and divorces that do not involve financial fraud.

When Forensic Services are necessary?

As mentioned above, it is related to court of law or something that can be present as an evidence before court. Forensic audit is necessary when any crime or fraud is alleged to firms, such allegations are required to be proved wrong before court.

Some of the main frauds, for them forensic service is necessary, are divided into different categories

Financial Statement Fraud
Asset Misappropriation
- - Cash Receipts
  - Fraudulent Disbursements
  - Inventory and Other Assets
Bribery and Corruption
Theft of data and intellectual property
Financial Institution Fraud
Payment Fraud
Insurance Fraud
Health Care Fraud
Consumer Fraud
Computer & Internet Fraud
Contract & Procurement Fraud
Insolvency Fraud
Securities Fraud
Money Laundering Fraud
Tax Fraud

Benefits of forensic audit services

Few key benefits of forensic audit services in Dubai are listed below. They are as follows:

Cost reduction

Main purpose of outsourcing forensic audit services in Dubai is to prevent and minimize unnecessary losses. Every day, fraudulent activities & general financial inconsistencies harm the corporate sector with insane amounts of money. Here comes the forensic audit accountant, who ensure that this does not happen, and assist you in discovering a fraud at early stage. So you can prevent it by taking some defined measurements.

Effective solution

Forensic audit plays an important role in evaluation, examine and investigating your firm’s current financial process and standards, that will help you to find an effective solution to in the identification process.

Risk awareness

Forensic audit is all about preventing your company’s best interests before any fraudulent activity occur. It will lower the danger of future exploitations by fixing your financial gaps in operations standards. Its main purpose is to done its job proactively, and reduce the risk, before it happens.

Legal support

It also focus on legal support, as it collect evidence for court of law. It will assist you to find out any financial crime or fraudulent activity inside your company that may cost you large amount of loss.

Resolves dispute

Forensic auditing may aid in the prevention and resolution of contractual disputes and challenges, as well as provide vital information to partners who may be hesitant to sign contracts with the firm. If you face any kind of contractual issues with other businesses, it can be solved by outsourcing forensic audit services in Dubai. It will offer you a clear image of your business management in decision making.

Tracking illegal activities

Most of the company hired forensic audit services in Dubai. Their main purpose of hiring is to aim an illegal tracking activities going on in company. When they have evidence in hand, their management can take better actions to solve problems and prevent any kind of illegal activities.

Formulating economic policies

Forensic audit will help your company to determine the flaws in your business and formulate your company’s economic policies according to your budget. So, you cannot go out of stock/cash by massive expenses on your policies.

Improves brand reputation

Any kind of fraud can cause reputational harm to your organisation. In most of the cases, it’s difficult to reverse the reputational process. No one want to appreciate, trust or collaborate with a company that leave itself vulnerable to deceptions. Hence it is important to find out any unethical behaviour in your company’s workspace. Here forensic audit services in Dubai will help you to take those measure and improve your brand reputation, before it’s too late.

Procedure of forensic audit Service in Dubai

Procedure of forensic audit service is same as normal financial audit. With steps including Planning the Audit Investigation and Strategy, Gathering evidence for investigation, reporting and documentation with an extra step of Court Proceedings. All the steps are discussed below;

Accepting the Investigation and Know Your Client

When ever a you need forensic auditor for investigation or forensioc audit service, you need to contact ythem via their official agency website or email. They will ask you relatives questions as per their requirement to intilize the process. They will try to know you and your company better. So you need to provide all information they want from you. Forensice audit sevice provider will accept your proposal for investigation and move on to next step.

Planning the Audit Investigation and Strategy

Forensic auditors and therir team member will plan their investigation process and set xome gaol to achieve during investigations. They can be as follows.

Identify what fraud is being carried out?
Determining the period during which the fraud occurred
Discovering how the fraud was concealed
Naming the perpetrators of the fraud
Quantifying the loss suffered as a result of the fraud
Gathering relevant evidence that is admissible in court
Suggesting measures to prevent such frauds from occurring in the future

Gathering Evidence for Investigation

Gathered evidence for investigation will be used to prove the identity of fraudsters in the court. Auditors will reveal the details of fraud, how it has been carried out, how much loss suffered and parties effected by this fraud.

Reporting and Documentation

A forensic audit requires a written report about the fraud to be presented to the client to proceed to file a legal case if they so desire. At a minimum, the report should include;

The findings of the investigation
A summary of the evidence collected
An explanation of how the fraud was perpetrated
Suggestions for preventing similar frauds in the future—such as improving internal controls

Court Proceedings - Fraud Prevention Measures and Exercise Judgement

The forensic auditor must be present during court proceedings to explain the evidence collected and how the team identified the suspect(s). They should simplify any complex accounting issues and explain the case in a layperson’s language so that people who have no understanding of legal or accounting terms can understand the fraud clearly.

If you want a forensic audit service in Dubai for your company/organizations. If it is difficult for you to find out professional auditos in Dubai. Let us help you with it! You are just one click away from an indcruible and honest, professional consultant. Click the button below to book a call or short meting.

How to get a tax residency certificate in UAE in 2024

Naqqash Ahmad — Wed, 26 Oct 2022 10:25:18 +0000

Before learning How to get a tax residency certificate in UAE, first, you need to know what it is.
You can be a resident of many counties at once, but you must pay taxes to only one. It would be best if you had an avoidance double taxes agreement between your home and resident countries to benefit yourself.

“A tax residency certificate (TRC) also refers to a tax domicile certificate (TDC). TRC is an official document for eligible government entities, companies, and individuals to assure a legal entity’s country of tax residence. It helps to take advantage of agreements to avoid double taxation on income, to which UAE is the signatory”.

What is the difference between a residence and a residency certificate?

Residence

The residence is the place where a person lives. It can be a house or apartment. Primarily it refers to a city or country of residence.

Residency Certificate

On the other hand, a residency certificate allows you to prove your place of residence away from your hometown. As mentioned above, you need this document concerning various tax and social security contributions.

Who needs Tax Residency Certificate in UAE?

Suppose you are a foreign individual or business person currently residing in UAE. Are there any Business Companies or firms registered under your name in UAE and your home country? Then you have to pay taxes in both countries. To avoid this situation, you need a tax residence certificate in UAE. This certificate will help you to avoid double taxation on income in UAE.

Perks of having Tax Residency Certificate in the UAE

These are the following perks you can take advantage of;

A tax residence certificate is a kind of double taxation avoidance agreement with your country that will help you to avoid income taxes back home.
You could reclaim taxes if you paid taxes the same year you became a UAE tax resident.

Now at this point, you will have a lot of questions in your mind. They can be

What kind of documents did you require?
What are the eligibility criteria to get a tax residency certificate in UAE?
Who has the tax certificate issuance authority in UAE?
How to apply for TRC?
How will you get your one?

We will answer all of your questions; keep reading ahead.

Required documents and eligibility criteria

You can apply for TRC on individual and legal entities as well.

Eligibility criteria

Any individual who stays more than 180 days in UAE is eligible for TRC.
Companies/firms incorporated for over one year and managed in UAE qualify for tax residency certificates.

Required documents

The process to apply for a tax residency certificate in UAE is different in terms of individual and legal entities, so they both have other document requirements;

Both are as follows:

For Individual

Valid passport copy
UAE residence visa copy
Emirates ID Copy
Source of income
Valid bank statements for six months from a local UAE bank
Immigration report
A certified copy of the lease agreement or Tenancy contract
Tax form (if any) from the country where the certificate is to be submitted. Suppose the Tax form requires FTA Signature and Stamp. You must send the original document to FTA via courier with a return service. To attest the form, you must fill and sign related fields to his information for FTA.

Companies also have their requirements to apply for a tax residency certificate in UAE. You must gather all of these documents in digital form before applying online.

For legal entity

Copy of the company’s valid trade license directors/shareholder attachments
Establishment contract certified by higher authorities (if it is not a sole company)
Certified copy of legal persons’ residence permits
Certified copy of lease agreement.
Copy of the valid passport of the legal person’s owner/partner/directors
Copy of visa and Emirates ID of the company’s Owner/Director/Manager
Validated bank statements for six months from a local UAE Bank.
An audited latest financial information that has the company’s UAE bank statements for the last six months (stamped by the bank)
Tax forms (if any) from the country where the treaty certificate is to be put forward. If the Tax form needs FTA Signature and Stamp, you are requested to send the original document to FTA.

How to Get a Tax Residency Certificate in UAE?

To get a tax residency certificate in UAE, you need to apply for it. The Process is discussed in detail below;

How to apply for a Tax residency certificate in UAE?

Applying for Tax Residency Certificate:

Follow these below steps and apply for your certificate.

Create an account on Federal Tax Authority (FTA) website. https://trc.tax.gov.ae/TRC_Th/
After account creation, you must log in to your account, as you’ll be redirected to the login page.
On successful login, the User main page dashboard will be up before you.
The following request status will be shown if you already make a request:
1. Draft
2. Draft – awaiting payment
3. Pending
4. Returned
5. Payment pending
6. Payment pending – transaction pending
7. Issued
8. Rejected

Click on the op “Create Tax Residency Certificate” from the dashboard.
1. A pop-up will be up with the question. That might ask whether you are already registered Tax Payers with a “Yes” or “No” option.
2. If the User is not a registered Taxpayer in eService, they can click on “No” to proceed with the request.
3. If the User clicks on “Yes,” they should enter the TRN Number and Email registered in eServices for eServices account verification.
4. If the User is registered as a Tax Group, and one of the members wants to apply for Tax Certificate, the User should enter the Member’s TRN/TIN and email address.
5. If the entered details match with eServices, you will be redirected to the request page for applying for the certificate.

Select an option under “Certificate is for”
1. If you are applying for a person, Select “Natural Person.”
2. If you are applying for a legal entity, Select “Legal Person.”
From the dropdown list, select the country you are applying for.
Select the Start Date of the required Financial Year, which will be the issuing date in the certificate (e.g., if the applicant selects 01-01-2023, the certificate will be valid from 01-01-2023 to 31-12-2023)
Upload all of your required data and documents.
Click on submit button to submit your request, or click on draft if you want to edit your request later.

Fee submissions

After successfully submitting the tax residency certificate request, a page will be displayed with fee information. You have to check the box which asks about the authentication of the above-submitted information.

Payment

You will be redirected to payment options.
You can choose payment methods via eDirham card or non-eDirham card.
Once the User clicks on “confirm & Calculate Prices, it will show the details of the purchased service.
You need to insert the card details and click “pay now” to proceed with the payment.

Certificate download

Once you successfully paid the certificate amount, a download icon will be displayed for the particular request, which the User can click and download the certificate.
After the successful payment, you will receive the certificate in your registered email.
You can click and download the certificate to their local machines.
The downloaded certificate will be password protected file, and you should enter their password to open and view the certificate.
Password for the downloaded certificate will be the combination of username and the last four digits of their mobile number.

If you have any queries about the residency certificate or need assistance obtaining your tax certificate, feel free to contact us by clicking the button below.

Top 20 Successful Business Ideas in Dubai to start in 2024

Naqqash Ahmad — Fri, 21 Oct 2022 10:06:24 +0000

Dubai, the most populous city in the United Arab Emirates and one of the richest in the world, has been home to thousands of ex-pats from all over the globe who dream of living a successful life. With its investor-friendly policy, Dubai has built an ecosystem ripe with opportunities to start businesses and generate revenue for entrepreneurs. You are finding the right idea, market research, developing the product or service, and ensuring compliance with local laws and regulations. But if you follow the appropriate steps, you can realize your company’s ambition. If you are among those who wish to start your start-up in Dubai, then this article will give you an overview of some of the most lucrative and successful business ideas in Dubai in 2022

Successful Business Ideas in Dubai 2022

1. IT Solutions

Living costs in UAE are considerably high. The ex-pat community, as such, is always on the lookout for ways to save money. One of these ways is setting up your own IT solutions company. IT projects are aplenty in UAE, and there are plenty of opportunities if you know how to deliver them and take advantage of your business knowledge.
The popularity of new technologies like robotic process automation and artificial intelligence, with growing populations in the United Arab Emirates and around the world, has helped organizations look for legacy upgrades or reduce their reliance on manual processes. Technical services became a successful business ideas in Dubai to start in 2022.

2. Digital Marketing:

The UAE has one of the fastest-growing tech and internet sectors in the world, so it’s little surprise that companies looking for digital marketing help should turn their gaze here. The government is keen on using technology to move toward a cashless economy, which creates business opportunities for those who can lend their expertise. Digital marketing agencies can be found throughout the country, and with such rapid growth, there will likely be many more openings soon.

Information and services are only a few taps away from us now, which means so are marketing strategies. The goals of a traditional marketing campaign, like a print ad or the acquisition of giant billboards, are challenging to measure. In contrast, the metrics of a digital marketing campaign can be precisely quantified. That being said, colleges and universities also offer tech-specific courses, so those possessing such valuable skills would be wise to consider using them for their livelihood and execute this successful business idea in Dubai.

3. E-commerce

The Ecommerce industry in Dubai is currently undergoing positive growth, and the UAE has strong online marketing, which makes Dubai an excellent location for conducting e-commerce transactions.

4. Cosmetics business

Dubai has always been a good location for launching cosmetic businesses because of its high population of expatriates and tourists. You don’t need much money or skills to launch your cosmetics company here. But it would help if you had funding, research and market analysis, and a passion for beauty products and services.

5. Real estate Brokerage and Real Estate Development

The UAE has seen tremendous growth in the purchasing and selling of real estate, making it one of the most in-demand sectors in the nation which makes it one of the most successful business ideas in Dubai for new entrepreneurs.

Real estate brokerage companies act as intermediaries between sellers and buyers, while real estate development firms build residential and commercial properties. Both require extensive knowledge of their respective fields, usually acquired through years of experience in the industry. However, starting your own business is not complicated with Dubai’s growing investor-friendly regime. A valid business license and capital investment are all you need to become an entrepreneur.

6. The Tourism Business

Dubai is an internationally adored city that everyone visits at least once in their life.
The Tourism industry is projected to bring in around 280.6 billion USD by the end of 2028, and it’s one of the top industries in UAE, which is why you should consider starting a tourism business if you want to do something big make a good profit.

7. Recruitment Agency

One of the best business idea for ex-pats is starting a recruitment agency. Various recruiting agencies, such as employment agencies, HR agencies, or resource staffing, are rapidly becoming an emerging industry in the UAE. This is because countless investors worldwide are doing business in the UAE. Human resources recruitment, in particular, is a cost-effective startup choice for people with human resources backgrounds.

8. Security Services

Security services are a critical aspect of commercial and residential buildings, so you can do well by investing in a business providing these services. Security guards provide round-the-clock protection for property and assets. Aside from that, they can also protect people who work at or visit your premises.

9. Education Business

Education is one of the UAE’s most well-regarded industries, with many schools providing students with the highest possible quality teaching. Entrepreneurs can set up any small- or medium-scale education-related business they wish. We can explore the opportunity for investment by opening a school, a training center, or a training institute or by providing coaching or tutoring services online.

10. Financial Services

The financial sector has always been fertile ground for a diverse portfolio, with good knowledge of accounting and financial analysis a definite prerequisite. In other words, it’s one of those sectors where you should come armed with some training or a passion for numbers. In Dubai and other UAE emirates, banks are usually on board with small-time step-ups—as long as you don’t overstep your bounds.

11. Photography Business

Since anyone can set up a photography business and small equipment is readily available, photography is essential. To start a firm, you need appropriate and critical equipment, guidance, a good investment, and your decision on what you decide to enter.

12. Food Delivery Business

It is among the most economical and successful businesses ideas in Dubai. The key idea of starting a food delivery enterprise is that you need to provide quality food that can be delivered conveniently. On the other hand, the customer can enjoy a good meal at home. You can either start your restaurant or convert your existing restaurant into a food-delivery joint by adding some menu items or modifying them according to customers’ requirements.

13. Beauty Salon Services

Starting a beauty salon is an ideal venture if you have some experience working in similar establishments. You could open a day spa or an upscale parlor, for example. If you’re worried about a lack of customers, focus on developing targeted promotions that will attract new clientele and get them back.

14. Courier Services

It is an excellent opportunity to start and open your own courier company if you would like to deliver packages within the UAE. You can develop your delivery fleet or work with existing courier services as a third-party logistics firm.

15. Accounting and Bookkeeping

The demand for finance professionals and accountants will increase every day in Dubai. Many investors have already found success in the lucrative field and are already offering their bookkeeping services to small and large organizations in Dubai.

16. Imports/Exports

The UAE’s sophisticated infrastructure allows sea, air, and land connections.
The above factor is not why import and export businesses succeed in Dubai. Additionally, importing products into a free zone is tax-free.

17. Events Company

More than AED 165 million (USD 45 million) is estimated to be invested in Dubai’s events industry. From corporate exhibitions and trade shows to private events like weddings and parties, the events industry offers plenty of opportunities for business ideas.

18. Transport

Among the many reasons this idea has much scope is that thriving cities are filled with people who want to get from one place to another in style. You could offer bicycle, limousine, and chauffeur services as a transport company.
Learn about the local area and its inhabitants by doing your research beforehand.

19. Translation Services

A significant trend in Dubai is the translation industry. The different kinds of translation services include legal translation, technical translation, certified general translation, literary translation, and industrial translation. In addition, you can set up a translating company in Dubai to earn a good income.

20. Healthcare

Dubai’s need for professional healthcare services has increased as its population has grown. As a result, many Asians in Dubai are looking for cheaper healthcare compared to other parts of the world. If you plan on joining the Dubai healthcare sector, you can take advantage of Dubai Healthcare City – which will give you free zone perks – to jumpstart your new venture.

Turn you Idea into a successful Business in Dubai!

Starting a company requires more than sprinting, and the journey might be difficult. Your personal goal may be to grow revenue, open a new location, or expand your staff to free up your energy and focus.

By implementing attempted methods like these, you can flourish your Business;

Focus on Your Customers:

The quality of a company depends on the consumers it serves. Knowing your target market and why they should buy from you is essential for success. Once you know your customers, you can better understand their needs and how to meet them. This will also help you create marketing campaigns that speak directly to them.

Expand Marketing and Advertising:

A start-up having trouble getting off the ground might want to consider expanding its marketing and advertising efforts. Marketing and advertising are often the first things cut when tight budgets, so this may be a good opportunity for your company.

Cut Unnecessary Costs:

A key question you’ll want to answer is whether or not the start-up will require a physical location. The cost of renting an office space and utilities can quickly add up, and if you don’t know exactly how much money you’ll need for your startup, this may be something you want to hold off on for now. If possible, check out co-working spaces or homes that are for rent as well.

Hire and Retain Talent:

The workforce of a company is the lifeblood of its operations. No matter how much capital is available, it won’t be worth anything if there are no people to run the business. This means that companies must always be on the lookout for new talent and take measures to retain their talent.

Complete Guide: VAT Deregistration in UAE 2024

Naqqash Ahmad — Wed, 19 Oct 2022 06:37:00 +0000

Before going to VAT deregistration in UAE, Lets find out what are the VAT rules and regulation in United Arab Emirates (All States). The FTA implemented the VAT system in the UAE. Businesses operating in the UAE are obliged to pay 10% VAT on certain specified goods and services they supply in the country. The VAT rate may vary from time to time depending upon the development of the economic situation in the UAE and its budget revenues, which affect its expenditures. The businesses supplying taxable goods or services must register themselves with the Federal Tax Authority (FTA) to be eligible to collect VAT on taxable sales.

VAT registration in UAE is mandatory if you are an importing company or if you are going to sell goods within the country, either wholesale or retail; it must have a VAT number with it. However, as time goes on, you may find out that your business is no longer profitable and thus decide to shut it down by canceling the VAT registration. This article aims to give you basic knowledge about VAT registration in UAE and how to apply for VAT deregistration in UAE when the need arises.

What is VAT Deregistration in UAE?

To start with, let’s take a look at what VAT stands for. VAT stands for Value Added Tax.

As mentioned above, the deregistration of VAT is a process by which an existing VAT-registered business cancels its existing registration with FTA. The registration number will be nullified after deregistration. However, it may still be possible for your business to register for VAT again (by submitting a new application and paying the required fees). The time between when your business is deregistered and when it can re-register depends on whether or not your period of registration has already expired. If you have already completed your normal period of registr

Non-taxable firms need to know the process of deregistration so that they can maintain their VAT-exempt status. The expert advice of a reputable UAE tax consultancy could be employed to apply for VAT deregistration and prevent administrative penalties.

Who must apply for VAT Deregistration in UAE?

There are only certain circumstances in which a business or individual registered for VAT can apply for deregistration:

If a company or individual does not anticipate making any taxable supplies over the next 12 months, they must apply for VAT deregistration.

VAT Deregistration is required for businesses or individuals who continue to make taxable supplies but whose value in the preceding 12 months has fallen below the Voluntary Registration Threshold (AED 187,500).

If your business is a VAT-registered company and you’re planning on shutting down or making significant changes to your company’s operations, then you will need to deregister from VAT. This includes closing down, merging with another business, or transferring all of your assets to another entity. Additionally, if you have sold or disposed of more than 50 percent of your total assets and are filing for bankruptcy or restructuring as an LLC Company; then also you need to deregister from VAT.

Eligibility for VAT Deregistration in UAE:

Any VAT-registered companies whose value of taxable supplies decreased below a value of AED 375,000 but not less than AED 187,500 are eligible to deregister their VAT status. But, a business will compulsorily have to deregister from VAT when the company is below the obligatory level for taxable supplies.

VAT deregistration can take two forms based on the guidelines of the FTA. First, Companies can apply for voluntary VAT deregistration. Second, they have an option to cancel the VAT deregistration themselves (which is known as voluntary), or the FTA can cancel their registration. In either case, it’s important to understand what factors make them eligible for this process and the process in general. To outsource its tax services, businesses are encouraged to find the best VAT consultancy firms in the UAE to understand all the legal aspects of the UAE norms.

Time Frame for VAT De-registration:

You can easily apply for VAT deregistration by visiting your FTA portals.

Please take note that if you submit this deregistration form more than 20 business days from the time you were supposed to deregister, you will be charged the late deregistration penalty fee of AED 10,000.

Organizations that are closing need a business liquidation letter from the government to apply for VAT deregistration.

How to Deregister for VAT in the UAE?

A business can apply for VAT deregistration in UAE by logging into its VAT portal. Step-by-step instructions are as follows:

Step 1: Sign in to the FTA VAT portal.

Navigate to the VAT Registration area of the dashboard and click the ‘De-Register’ button.
Taxpayer Information will be pre-populated in the deregistration application.
Choose from the drop-down list on which basis you’re deregistering for VAT.
- Business is no longer able to supply a taxable product.
- When it comes to making taxable supplies, a business falls below the Voluntary Threshold.
- Supplies the business provides above the Voluntary Threshold but below the Mandatory Threshold are subject to sales tax.
- Something Other.
Effective date from which a tax-exempt organization needs to register varies based on the reasons for its deregistration.
After clicking on ‘Choose Files’, all the relevant supporting documents should be uploaded.
Make sure to review and check the authorized signatory and declaration section of the application form before you submit it.

If the reason is valid, the FTA will approve the voluntary deregistration. The FTA will also verify the following:

The status of returns
Tax payments owing
Penalties that are pending

VAT deregistration can be pre-approved if the reason is valid, but the final approval will be withheld until the outstanding payments are made.

Outstanding Liabilities:

You will have to deal with all the expenses you owe before you can be taken off of our records.

Payable Position:

If you need to pay the due payment, you can do so by going to the My Payment tab on your dashboard. From this tab, navigate to the VAT & Penalty Payment tab to see the exact amount. Enter the Amount box, put the number you want to donate and click the Pay with Visa/Mastercard button.

You can complete the deregistration process after the payment has been accepted by clicking the “De-Register” button on your dashboard.

Receivable Position:

Through the online portal, you can request a VAT refund if the FTA owes you a credit amount.

Deregistration for VAT Groups

An application for amendment of a tax group can be submitted by the representative member to the FTA to remove a member. A removed member who is eligible and required to register for VAT but has not yet done so may need to complete a VAT registration application.

If the group no longer meets the requirements for a VAT group, the VAT deregistration will be approved. If individual companies in the organization cease being financially intertwined with the rest, the entire group can be deregistered. De-registration will be approved if the taxes of the organization may cause tax evasion.

What are the consequences of deregistering my company from VAT?

Deregistering your company from VAT will prevent you from making further taxable supplies of goods and services. You must therefore ensure that you continue to pay any remaining amounts due on all accounts payable, such as debts to creditors or employees’ salaries or professional fees.

Any unpaid amounts may result in enforcement action being taken against you, including a fine of up to AED 10,000. If your business is deregistered before you have fully paid off debts, these are now considered taxable supplies. However, any tax already paid by you on these debts can be claimed as an input tax credit and credited against other liabilities or filed as a refund with FTA upon request. Further advice should be sought from your accountant before deregistering

VAT Consultants in the UAE:

Companies must apply for VAT deregistration when they cease producing taxable supplies or terminate their operations as a result of stopping their VAT registration with the FTA. VAT-registered companies, however, need to understand when and how to cancel their VAT registrations. This is where a leading VAT consultancy firm like Capital Plus Auditing of Accounts can assist. In addition to providing VAT registration and VAT returns by the FTA regulations and guidelines, this company provides VAT deregistration services as well. deregistration.

The accounting department of Capital Plus Tax helps you to register and deregister accounts and helps you with related tax information, which avoids charges and provides peace of mind. To top it all off, they guarantee that your future transactions are not adversely affected by any undisclosed issues. As a result, if you are looking for a professional company to assist you with VAT needs, Capital Plus Auditing of accounts is a company that cannot be surpassed. To cancel your VAT registration in Dubai, submit your application to the FTA branch office along with supporting documents within one month after closing your business activities or after ceasing to provide taxable services.