Corporate tax is an important consideration for businesses operating in Dubai, UAE. The UAE government introduced a federal corporate tax in June 2023, which applies to all companies, including foreign and locally owned entities. The tax rate is 9%, and the tax base is taxable income, which is calculated after deducting all allowable expenses. The tax return needs to be filed on an annual basis along with payment of any corresponding tax liability. There are several exemptions and reliefs also available under the corporate tax regime.

Dubai’s Corporate Tax Framework

The UAE corporate tax applies to all companies, including foreign and locally owned entities. However, there are some beneficial provisions for businesses operating in free zones. Free zones are special economic zones that offer a range of benefits to businesses, including beneficial corporate tax regime and exemptions from customs duties and other taxes.

In addition to the federal corporate tax, businesses in Dubai may also be subject to other taxes, such as municipality fees, commercial license fees, and sector levies. These taxes are generally based on the type of business activity, location, and other factors.

Corporate Tax Rates

The UAE Corporate Tax regime introduces a tier system with 3 rates:

• All annual taxable profits up to AED 375,000 shall be subject to tax at 0%.
• All annual taxable profits above AED 375,000 shall be subject to 9% rate.
• ALL MNEs that fall under the scope of Pillar 2 of the BEPS 2.0 framework (i.e. consolidated global revenues in excess of AED 3.15 billion) shall be subject to different rates as per OECD Base Erosion and Profit-Sharing rules. However, until such time as the Pillar Two rules are adopted by the UAE, multinationals will be subject to CT under the regular UAE CT regime.
• Taxable profits are the accounting profits subject to certain adjustments.

Tax Exemptions and Incentives in Dubai, UAE

The UAE government offers several tax exemptions and incentives to businesses, including:

Tax exemptions for certain industries: The UAE government offers tax exemptions for businesses operating in certain industries, such as extractive businesses.

Double Taxation Avoidance Treaties (DTAs): The UAE has entered into DTAs with several countries to prevent double taxation of income. This means that businesses that are taxed in the UAE may be able to claim a credit against their tax liability in their home country.

The employment income of individuals is not taxable.

Other personal income: Dividend income is exempt. Rental receipts from UAE real estate investments are also not taxable even if UAE real estate and other investments are held through a private or family trust, subject to certain conditions.

Compliance and Reporting Obligations

Businesses are required to comply with several tax compliance and reporting obligations, including:

Maintaining proper financial records: Businesses are required to maintain proper financial records, such as accounting books, invoices, and receipts etc.

Preparing annual financial statements

Businesses are required to prepare annual financial statements that comply with the International Financial Reporting Standards (IFRS) or other applicable accounting standards.

Filing annual returns: Businesses are required to file annual returns with the tax authorities.

Renewing licenses: Businesses are required to renew their licenses with the relevant authorities on a regular basis.

Fulfilling regulatory requirements: Businesses are required to fulfil other regulatory requirements, such as obtaining the necessary permits and licenses.

It is important for businesses in Dubai to understand their specific tax obligations and to comply with all applicable laws and regulations. Failure to do so could result in penalties and other consequences.

Conclusion

Corporate tax in Dubai is a complex and evolving topic. Businesses operating in Dubai should seek professional advice to ensure that they are fully compliant with all applicable laws and regulations.

Here are some additional things to keep in mind about corporate tax in Dubai:

• The UAE government is constantly reviewing and updating its tax laws. It is important for businesses to stay up to date on the latest changes.
• The UAE has several tax treaties with other countries. These treaties can affect the amount of tax that businesses owe.
• The UAE has several tax incentives available to businesses. These incentives can help businesses reduce their tax expense.
• If you have any questions about corporate tax in the UAE, please contact a tax advisor.

If you are an SPC Free Zone business license holder, you can get in touch with us by calling 800 SPCFZ (77239) if you have queries.

Want to pave your way to success with Business Ideas in Dubai?

Uncover the secrets of success where innovation and opportunity converge in this global business playground. Explore the possibilities of Business Setup in Dubai today!

Every year, thousands of aspiring entrepreneurs launch a successful startup business in the UAE. Boasting one of the world’s largest and most diverse economies, this cosmopolitan and well-connected region consistently ranks highly in terms of ‘ease of doing business’. There are now 330,000 businesses registered across the mainland and its 45 free zones. And, with the introduction of the ‘Fifty Economic Plan’ – an economic framework dedicated to stimulating entrepreneurship and small to medium businesses – this is only set to grow in the next few years.

In this article, we’ll explore everything you need to know about how to open a business in UAE, including the process of business setup in UAE from scratch, legal requirements, and the benefits of a business setup company here. We will cover the following topics:

• Steps for starting a business in the UAE
• How much does it cost to start a small business in the UAE?
• Is it easy to start a business in the UAE?
• Which free zone is best in the UAE?

Steps for Starting a Business in the UAE

The steps to starting a business in the UAE can be broken down into three stages. In brief, these are:

• Submit documents and application to receive your license in under two hours
• Receive your immigration card and e-channel application
• Receive your entry permit

The first step is the most complicated part of the process. First, you’ll need to determine the legal entity of your business, depending on the number of shareholders involved. The options are Free Zone Limited Liability Company (FZ LLC), Free Zone Company (FZ Co.) or Free Zone Establishment (FZE). Then, you’ll choose a trading name. Your chosen free zone will be able to confirm whether the name has already been registered. Then, you’ll apply for your business license with the relevant paperwork. If this is approved, you’ll receive your license from SPC Free Zone in under two hours.

The next step involves setting up your e-channel services. This handy online system removes unnecessary paperwork and speeds up the application process. Once you have registered, you will be able to apply for your entry permit.

The third step concerns your entry permit. This temporary visa is usually valid for up to 60 days. Once you have received it, you can activate your status change in-country or by exiting and re-entering the UAE, depending on your nationality. Then, you’ll need to take a medical test. Once you’ve received the results, you can apply for your Emirates ID card.

As you can see, the steps for setting up a business in the UAE are relatively straightforward. However, you will need to ensure your paperwork is in order to avoid any unnecessary holdups. SPC Free Zone can help ensure that setting up your business in the UAE is as quick and pain-free as possible.

How Much does it Cost to Start a Small Business in the UAE?

It costs as little as AED 6,875 to start a small business in the UAE. With comparatively low upfront costs, starting a business in the UAE is highly profitable. However, there are other startup costs to consider too. Understanding the costs of a business startup is crucial to success.

For instance, could you start your business with a smart desk or will you require an office unit? If you are trading in goods, will you need to consider suitable warehouse and storage units? Do you require a visa as a foreign national and will you employ individuals who will require one too? Have you taken into account notarization changes, medical checks and Emirates ID costs? What about requirements regarding capital investments? Keep in mind that prices for each of these vary considerably between free zones too.

At SPC Free Zone, we know that every business is different, which is why we offer a free, bespoke quotation to our clients. For an accurate estimation of how much it will cost to set up your small business in the UAE, get in touch with our friendly team of business advisors today.

Related Article: Emirates ID Renewal Guide for Expats

Is it Easy to Start a Business in the UAE?

Yes, it is easy to start a business in the UAE and it offers a whole string of benefits for growing businesses too, including:

• A business-friendly ecosystem

The UAE’s pro-business government is committed to providing world-class facilities, incentives and security for foreign investors. Legislation is constantly evolving to increase opportunities and make it easier for entrepreneurs and startups to expand too.

• Favourable tax incentives

Unlike most countries, Dubai offers total exemption from personal tax. While VAT does apply to specific business activities, total rates are significantly lower than elsewhere in the region. Plus, businesses operating in free zones can benefit from 100% ownership with zero paid-up capital. 

• Easy business setup in UAE

Setting up a business in the UAE is now easier than ever, with help from business advisors in free zones like SPC Free Zone. Setting up your business requires less paperwork and can be broken down into easy-to-follow stages too.

• First-rate digital infrastructure

The UAE boasts some of the most advanced digital infrastructure in the world, with world-leading internet connectivity.

• High standard of living

The UAE leads in healthcare, education, real estate and recreational activities. It’s also one of the safest places to live in the world, with comparatively low crime rates.

• Strategic location

The UAE serves as the gateway to both east and west, with easy access to Africa, Asia and Europe. The region’s centralised time zone makes it easier to do international business and coordinate trading activities too. The UAE also boasts one of the world’s busiest airports, a highly efficient railway network and dozens of high-speed highway interchanges.

• Pool of talent

The UAE attracts a skilled and effective workforce, and it also proactively identifies human capital needs at a competitive cost. It has a high number of expat workers at all levels of the economy, accounting for over 80% of the workforce.

Which Free Zone is Best in the UAE?

SPC Free Zone is one of the best free zones in the UAE for a number of reasons, including:

• Convenient location

SPC Free Zone is located in the heart of Sharjah with immigration services on site.

• Quick and flexible business setup in UAE

You can get your license in just 45 minutes.

• Competitive pricing

SPC Free Zone offers affordable packages for a range of businesses, with up to 20 visas under one trade license.

• Business-friendly incentives

You can choose from over 1,500 business activities, with 100% foreign ownership, zero paid-up capital and a dual license option that offers both mainland and free zone on the same license.

Interested in setting up a business in the UAE? Get in touch with SPC Free Zone to kickstart your road to success.

#uaebusinesssetup #spcfz #startingabusiness #businesssetupinuae

Related Article: 5 Reasons for Women Entrepreneurs to Start Their Business in UAE

Around 5% of the population of the UAE are domestic workers – and demand is rising. According to recent research, the UAE spends around three billion dollars annually on domestic help. In Dubai and the UAE, hiring help is seen as a competitive advantage and many families live with at least one full-time maid, some with more. If you’re interested in hiring domestic help and obtaining a maid visa in the UAE, take a deep dive into our latest guide to explore up-to-date costs and requirements. In this article, we will explore the following topics:

1. Benefits of hiring a maid in Dubai or the UAE
2. New law by MoHRE
3. Obligations of the employers towards domestic workers
4. Obligations of the domestic worker
5. What are the categories exempted from the regulation?
6. What is the process of bringing the maid to Dubai, UAE?
7. How can I renew a maid visa in Dubai, UAE?
8. How can I cancel the maid visa in Dubai, UAE?
9. How can you get a maid visa from SPC Free Zone?

Benefits of Hiring a Maid in Dubai or the UAE

For busy business owners and aspiring entrepreneurs, time is everything. Many choose to hire help, often in the form of a nanny or maid. In the UAE, hiring a maid and other domestic help is commonplace for a number of reasons, such as:

• More affordable option

While employers are required to pay domestic workers a minimum wage and most choose to pay more, hiring a maid in Dubai or the UAE is more affordable than most people assume. It’s much cheaper than hiring by the hour through an agency, too.

• Trusting relationships

Hiring a live-in maid allows you and your family to build a trusting relationship, with many maids becoming an integral part of the household. It avoids disruption, too.

• More time to focus on business

By delegating chores and cleaning to a maid, you can reserve your time and energy for building a business that thrives and spending time with family and friends.

• Multi-skilled domestic help

Many maids and other domestic workers can cook, clean, and keep an eye on the children. This makes it a much more convenient and affordable alternative to hiring individual specialists by the hour. 

• It creates jobs

Many individuals seeking employment as domestic help have families of their own to provide for. The demand for work is rising alongside the demand for help.

• It is legal

This might seem like an obvious point, but many expats fail to realize that hiring a maid on a casual basis can land them in hot water. The Ministry of Labour fines individuals for employing workers that are not sponsored by you or workers paid on a cash-in-hand basis. By obtaining the maid visa yourself, you can be secure in the knowledge that you are employing help lawfully.

New law by MoHRE

Federal Decree-Law No. 9 of 2022 will came into force on December 15, 2022, and provides the rules on the hiring and employment of domestic workers in the UAE.

Under the new decree-law, a domestic worker in the UAE can only be hired if a license is first secured from the MoHRE.

Domestic workers must be over the age of 18, have the necessary medical examinations and have a formal employment contract.

Obligations of the employers towards domestic workers

As an employer, it is essential that you comply with the UAE’s rules and regulations regarding hiring a housemaid. Employers must abide by the terms of the employment contract, in addition to other obligations that include providing:

• The facilities needed for the worker to perform his/her duties effectively
• Appropriate accommodation
• Meals and clothing
• Timely payment of remuneration
• Medical care or health insurance
• Respect and safety
• Compensation for work injuries and occupational diseases.

Obligations of the domestic worker

Domestic workers are required to follow the obligations outlined in employment contracts, in addition to the following:

• Perform their duties under the supervision of the employer and in compliance with the provisions of the employment contract
• Maintain a high standard of care and diligence while performing their duties
• Refrain from absenteeism without a valid reason
• Observe the customs and traditions of the UAE’s community
• Comply with the employer’s instructions regarding the completion of the agreed work
• Care for and maintain the items in their possession or dispose of them by following the necessary safekeeping procedures
• Respect the privacy of the workplace
• Keep work tools/items inside the workplace and in their designated locations at all times
• Provide necessary aid and assistance in the event of disasters and hazards that threaten the workplace and its occupants.

What are the Categories Exempted from the Regulation?

According to UAE’s new domestic worker’s law, recruitment of maids and nannies is limited to licensed agencies. However, some residents are allowed to hire domestic help under their sponsorship, and these include those who hold Golden Visas. This category can sponsor an “unlimited number of domestic helpers”, including housemaids, cooks, nannies and babysitters, gardeners, family drivers, farm workers, private tutors, private nurses, personal trainers, personal assistants, and guards, among others.

What is the Process of Bringing the Maid to Dubai, UAE?

Step 1: Before you start the process of bringing a maid to the UAE, you need to make sure you’re eligible to sponsor a home worker.

Step 2: Decide the method of bringing your workers to the UAE. The process can be done through a specialized agency, or you can initiate it yourself through Tadbeer centers. The centers offer different packages, you can pick the one that suits you.

Step 3: Prepare the documents.

When it comes to applying for a maid visa, the process is very similar to applying for your own visa. For instance, you’ll need to ensure you have obtained an entry permit to allow them to enter the country. They will also need to undergo a medical examination within 30 days of entering the country to apply for an Emirates ID card. You will then need to submit a number of documents on his or her behalf, including:

• The completed application form.
• A copy of both the maid’s passport and the sponsor’s.
• Sponsor’s residence visas.
• Attested marriage certificate.
• Original Emirates ID.
• An affidavit from the embassy or consulate of non-relationship is provided in case the maid is from the same country.
• Maid’s Medical Fitness Certificate issued in her country.
• A bank statement from the past three months.
• Proof of accommodation or a tenancy contract with a minimum of two bedrooms.
• A salary certificate of sponsorship in Arabic for government employees or a labour contract for private employees.
• A labour contract from the sponsor’s employer.
• Three passport photos of the maid.

You should also note that all of these forms must be signed by an authorized typing centre before submission.

Step 4: Bring the maid to Dubai.

After finding the right candidate, you can start the process of sponsoring and bringing the worker to the UAE. This step includes several procedures:

• Applying for the maid’s work permit.
• Medical Fitness exam and Emirates ID registration.
• Receiving the Domestic Worker Identity Card.

Step 5: Get the Emirates ID for the maid through any authorized typist or the official government portals.

How can I Renew a Maid Visa in Dubai, UAE?

To renew your maid’s visa, you need to submit a renewal application and an online medical request form. These forms can be obtained from an authorized typist and submitted to any GDRFA office near you after paying the required fees.

How can I Cancel the Maid Visa in Dubai, UAE?

The process of canceling the maid visa is simple and fast. You can seek the help of a typing center or process it yourself online through the GDRFA website.

Frequently Asked Questions about Hiring a Maid in Dubai, UAE

Can I hire a maid on her own visa?

Domestic workers can only be hired through a licensed agency.

Can I hire a maid without an agency in Dubai?

It is possible to hire a maid without going through an agency, taking into consideration the laws and regulations of employing domestic workers in the UAE.

Can a single guy hire a maid?

No. Bachelors are not allowed to sponsor maids in Dubai, UAE.

What is the maximum age for maids?

Domestic workers who is more than 60 years old can keep working in the UAE if the workers meets the following standards:

• The worker should be physically fit as per the medical certificate issued by the relevant government authorities in the UAE.
• All medical expenses related to the worker’s treatments are to be borne by the family or the employer hiring the worker.
• Approval must be obtained from the relevant government authority for the continuation of the maid’s work in the UAE.

How Can You Get a Maid Visa from SPC Free Zone?

SPC Free Zone is located right in the heart of Sharjah. We can help with the issuance of maid visas only if the sponsor has a business license and visa issued by SPC Free Zone. As well as helping you to navigate the process of obtaining a maid visa, we offer a fast and flexible business setup in the UAE. You can choose from more than 1,500 business activities and apply for 20 visas under one license. With immigration services on-site, you can get your license issued in 45 minutes.

SPC Free Zone offers several value-added support services, that include, among others, house help visas. We assist in obtaining new, renewing, or cancelling all categories of residence visas including drivers and domestic helpers.

Looking to obtain a maid visa in Dubai, UAE as efficiently and smoothly as possible? Reach out to the SPC Free Zone today.

Want to pave your way to success with Business Ideas in Dubai?

Uncover the secrets of success where innovation and opportunity converge in this global business playground. Explore the possibilities of Business Setup in Dubai today!

Want to set up a business in the UAE? Calculate your business setup cost today!

Golden Visa UAE – What Is It?

The UAE Golden Visa is a long-term residence visa that is granted to foreign investors, entrepreneurs, scientists, qualified professionals, and exceptional talents. It offers several benefits, including the ability to live, work, and study in the UAE without any restrictions. The Golden Visa Dubai, UAE is valid for 5 or 10 years and can be renewed.

What are the Golden Visa UAE benefits?

The UAE introduced the UAE Golden Visa scheme to offer additional security for those looking to make their future in the UAE. There are numerous benefits of Golden Visa UAE, including:

Long-term residency: Golden Visa holders can live, work or study in the UAE for five or ten years.

100% business ownership: Golden Visa holders do not need to find a national sponsor for almost all business activities.

Employment: Golden Visa holders can apply for jobs with any company in the UAE.

UAE driving license: Golden Visa holders from one of 32 approved countries are automatically eligible for a UAE driver’s license.

UAE Golden Visa New Rules 2024

1. Elimination of Minimum Down Payment: A significant change entails the elimination of the previous AED1 million ($272,000) minimum down payment prerequisite for property investments to qualify for the Golden Visa.
2. Updated Qualification Standards: Investors are now eligible for the Golden Visa by possessing a property valued at AED2 million ($545,000) or higher, irrespective of the down payment and the property’s status (whether off-plan, completed, mortgaged, or not).
3. Diverse Property Options: This revision allows investors selecting properties valued at AED2 million ($545,000) or more to access long-term residency in the UAE.
4. 10-Year Residency: The Golden Visa, with a 10-year validity and renewable under the same terms, provides investors with an extended duration to integrate into the UAE’s community and nurture their investments.

Eligibility Criteria for UAE Golden Visa for Real Estate Investors:

To qualify for a UAE Golden Visa under the new regulations, real estate investors must fulfill the following conditions:

1. Confirmation of Property Ownership: a letter from the land department of the respective emirate confirming ownership of one or more properties valued at no less than AED2 million ($545,000).
2. Loan Procurement: Alternatively, investors can acquire a property through a loan from specific local banks endorsed by the competent local entity.

The final approval of the Golden Visa application is still upon the land department’s assessment on a case-by-case basis, ensuring a fair and personalized evaluation of each applicant.

What Are The Benefits of Getting a Golden Visa in the UAE?

The benefits of getting a Golden Visa in the UAE vary depending on the category of visa you are applying for. However, some of the general benefits include:

The ability to live, work, and study in the UAE without any restrictions.

The ability to bring dependents (spouse and children) to the UAE.

The ability to travel freely to and from the UAE.

The ability to own property in the UAE.

The ability to open a business in the UAE.

The ability to access world-class healthcare and education.

The ability to enjoy a high standard of living.

Golden Visa UAE Eligibility

The Golden Visa UAE eligibility criteria for the UAE Golden Visa vary depending on the category of visa you are applying for. However, some of the general Golden Visa UAE eligibility requirements include:

You must be a non-UAE national.

You must have a valid passport.

You must have a clean criminal record.

You must meet the specific Dubai Golden Visa requirements UAE or the category of visa you are applying for.

Golden Visa UAE for real estate investors

To be eligible for the Golden Visa for real estate investors, you must purchase a property worth at least AED 2 million. The property must be located in the UAE and it must be freehold.

Related Article: How To Start A Real Estate Company In The UAE

Golden Visa UAE for public investors

To be eligible for the Golden Visa for public investors, you must invest at least AED 5 million in a public project in the UAE. The project must be approved by the UAE government.

Golden Visa UAE for entrepreneurs and startup owners

To be eligible for the Golden Visa for entrepreneurs and startup owners, you must establish or own a business in the UAE that creates at least 10 jobs for UAE nationals. Your business must be registered with the UAE Ministry of Economy.

Related Article: How do Successful Entrepreneurs differ from Ordinary People?

Golden Visa UAE’s exceptional talents

To be eligible for the Golden Visa for exceptional talents, you must be a highly skilled individual in a field such as science, medicine, education, or sports. You must have made significant contributions to your field.

Golden Visa UAE for scientists

To be eligible for the Golden Visa for scientists, you must be a highly qualified scientist with a PhD degree. You must have published at least 10 research papers in international journals.

Golden Visa UAE for skilled professionals

To be eligible for the Golden Visa for skilled professionals, you must have a bachelor’s degree or higher and at least 5 years of experience in your field. Your profession must be on the list of eligible professions.

Golden Visa UAE for students

To be eligible for the Golden Visa for students, you must be enrolled in a full-time degree program at a university in the UAE. You must have a valid student visa.

Golden Visa UAE for humanitarian pioneers

To be eligible for the Golden Visa for humanitarian pioneers, you must have made significant contributions to humanitarian causes. You must have been recognized for your work by a reputable organization.

Golden Visa UAE for doctors and nurses

To be eligible for the Golden Visa for doctors and nurses, you must have a valid license to practice medicine or nursing in the UAE. You must also have at least 5 years of experience in your field.

Golden Visa for exceptional coders

The UAE government has also introduced a new Golden Visa category for exceptional coders. To be eligible, you must be a highly skilled coder with a proven track record of success. You must also have a valid work visa in the UAE.

Golden Visa expanded categories for Abu Dhabi

The Abu Dhabi government has also expanded the categories of Golden Visas that are available. In addition to the categories mentioned above, you can also be eligible for a Golden Visa in Abu Dhabi if you are:

• A retired person with a pension of at least AED 20,000 per month.

• A high-net-worth individual with assets of at least AED 10 million.

• A member of a family of investors or entrepreneurs who have invested at least AED 10 million in Abu Dhabi.

What is the price of a UAE Golden Visa?

The price of a UAE Golden Visa varies depending on the category of visa you are applying for. However, the general 5 and10-year Golden Visa UAE cost is as follows:

• Real estate investor visa: AED 2 million
• Public investor visa: AED 5 million
• Entrepreneur and startup owner visa: AED 500,000
• Exceptional talents visa: AED 500,000
• Scientists visa: AED 500,000
• Skilled professionals visa: AED 250,000
• Student visa: AED 100,000
• Humanitarian pioneers visa: AED 100,000
• Doctors and nurses visa: AED 100,000
• Exceptional coders visa: AED 100,000

5-year UAE Golden Visa requirements

The golden visa UAE requirements for a 5-year UAE Golden Visa are the same as the requirements for a 10-year visa, with the exception of the investment threshold. The investment threshold for a 5-year visa is AED 1 million.

The validity period of the UAE Golden Visa

The validity period of a UAE Golden Visa Dubai depends on the category of visa you are applying for. However, the general validity period is 5 or 10 years.

UAE Golden Visa: Extension & Cancellation

The UAE Golden Visa Dubai can be extended for an additional 5 or 10 years, if you continue to meet the eligibility golden visa UAE requirements. The visa can also be cancelled if you violate the terms of the visa or if you are convicted of a crime.

Other conditions for a 5-year visa

In addition to the general requirements, there are some other conditions that you must meet to be eligible for a 5-year UAE Golden Visa. These conditions include:

• You must have a valid health insurance policy.
• You must have a valid UAE residence visa.
• You must not have any outstanding debts in the UAE.

How to get Golden Visa UAE, 5-year or 10-year Visa: Step-by-step guide

The process of applying for a UAE Golden Visa is relatively straightforward. Here are the steps involved:

• Gather the required documents.
• Fill out the application form.
• Pay the application fee.
• Submit the application to the UAE government.

The processing time for a UAE Golden Visa varies depending on the category of visa you are applying for. However, the general processing time is 3-6 months.

Want to set up a business in the UAE? Calculate your business setup cost today!

Frequently Asked Questions

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Amazon is an internationally recognized company that provides its users with a host of products and services on its website. Moreover, Amazon also provides a platform to individuals who wish to sell their products. The Middle East is a region that has seen exponential growth in the interest and use of online services. Amazon recognized this as a lucrative opportunity and acquired souq.com, entering the Middle Eastern market as amazon.ae.

The UAE in particular has been quite receptive to the online market boom, with over $10 billion in online sales revenue in 2018. The high sales can be attributed to the average spending budget of online shoppers as well as a lack of apprehension toward the online mode of purchasing items. Over 63% of UAE’s internet users engage in online purchases. Moreover, the pandemic has further increased online sales. Such a lucrative market is hard to come by, which is why many are setting up online stores on sites like Amazon. In this article, we explore how you can set up your own online store and sell your products on Amazon successfully.

Things to consider before selling on Amazon

Before you start selling on Amazon you need to set up your Amazon seller account. The registration process to set up your Amazon seller account is simple; all you really need to do is enter your business’s details and select a seller plan. There are two types of seller plans, which are as follows:
a. Individual Plan: This is for those who do not require additional selling tools or other add-on programs.
b. Professional Plan: This is for those who plan to sell in large quantities and require the selling tools Amazon has in order to conduct business.

One of the benefits of the Professional Plan is that you do not have to pay anything upfront to avail this service. Once you make a sale through the program, a small percentage will go to paying the Professional Plan. This pay-as-you-go program eases the financial burden on the entrepreneur due to its conditional-installment-based payment system.

You need to fulfill the following requirements to complete your registration:

• Trade License (for businesses) if you are the owner and a Power of Attorney only if you are a legal representative “or an account manager”.
• For Individuals: a recent bank account statement (less than 3 months old), credit card statement, or utility bill.
• National ID.
• A bank account for the proceeds of your sales.
• Business email address or Amazon customer account.
• Phone number.

Before you dive into the world of online selling, it’s important for you to select a line of business you can engage in that is profitable in the online space. Some of the top categories of products users purchase include the following:
a. Apparel and textiles
b. Handmade products
c. Electronics
Moreover, the UAE’s shopping preferences also indicate overwhelming favor towards cash on delivery, with nearly half of all purchases being paid through this mode of payment. Enabling this mode of payment can help your business see a significant boost in sales.

Is Amazon the right platform for your business?

With the above benefits in mind, selling on Amazon seems to be a warranted tool for success. But is Amazon really the right choice for every business?

To know the answer, you need to closely examine some factors. Your products need to meet certain criteria to be eligible for selling on Amazon. there is a list of restricted items that cannot be sold on Amazon or require certain permissions, and other products can only be shipped locally. On the other hand, some products need to be customized to meet the different preferences of customers. While this feature is provided by Amazon for some products, some listings don’t enjoy this benefit. Lastly, if your product is large, fragile, or has a short shelf-life these conditions pose certain challenges in terms of storing and shipping. Another factor to consider is the high rate of competitiveness on the platform. If your product doesn’t have the advantage to make it stand out from the crowd of similar products, you may face some issues in securing a front place for your product. However, Amazon provides some smart marketing solutions to give your products a more recognizable voice.

Benefits of selling on Amazon UAE

The benefits of selling on Amazon UAE are numerous. As one of the world’s leading global retailers, the site boasts unrivaled traffic. And while competition is increasing on Amazon, demand for online shopping is rocketing. In fact, around 65% of UAE residents cite Amazon as their preferred retail outlet. Other benefits and advantages include:

Easy entry and low upfront investment

Amazon offers an easy access point for aspiring entrepreneurs who don’t have much capital from the outset. Listing fees are comparatively low and you won’t need to start paying until something sells. Plus, Amazon also has an active market for second-hand and refurbished items.

Immediate access to millions of customers

When it comes to online shopping, Amazon is most people’s first port of call. That means millions of potential customers – and sales. 

Leverage Amazon’s reputation

One of the hardest things about starting a new business is establishing a reputation for yourself. Without testimonials, it’s hard to get the products to speak for themselves. Amazon is a highly trusted global brand. You can tap into this reputation and reap the rewards for your own business.

Visibility for your brand and products

Amazon’s global reach can help you ramp up your brand identity. You can get millions of eyes on your products, without having to pour capital and resources into marketing strategies. 

Scalable

With Amazon, your business can grow without soaring infrastructure costs.

First-rate shipping

When you set up an Amazon business, you can benefit from Fulfilment By Amazon (FBA) too. That means Amazon picks, packs, and ships your products directly from their warehouse. That saves you the hassle of shipping logistics and it also means you can offer Prime shipping to higher spenders.

Higher sales

The website is visited by millions of users each month from around the world, with a significant percentage of users residing in the UAE, thanks to the increased global preference for online shopping. You can also derive more credibility for your new brand by choosing Amazon as a platform to launch your e-commerce business. Amazon enjoys a great reputation and is trusted by millions of shoppers around the world as a safe and reliable shopping website.

Low investment costs

Amazon is the right choice for new sellers with a limited budget. Amazon listing fees are relatively low, and you don’t need to pay until you start selling.

Practical Shipping solutions

Amazon offers you several shipping and delivery options. You can store and ship your products yourself, store your products, and leave the shipping mission to Amazon, or entirely rely on Amazon to store, pack, and deliver your products.

Multiple pay options

Payment options include credit cards, bank transfers, e-wallets, direct debit, and more. Plus, Amazon offers fraud protection.

Legal requirements for selling on Amazon UAE

To open an Amazon UAE seller account, you’ll need to ensure you’ve completed the required documents required by both Amazon and your free zone. These include:

• A business name

One of the first things you will need to do when opening an Amazon UAE account is to decide on a name. Remember that the UAE has strict company naming criteria, with restrictions on blasphemous, offensive and obscene language.

• Contact information

Amazon requires all sellers to provide their contact details, including their legal names. This won’t be made public, though your contact information will be used by customers and Amazon to reach you directly.

• An e-commerce license

To operate an e-commerce business in the UAE, you are required to obtain an e-commerce license.

• A valid visa

Foreigners living in the UAE need a valid visa to sell on Amazon.

• A corporate bank account

Amazon will use this bank account to send you the proceeds of your sales, usually every 14 days. Once you have a valid e-commerce license and visa, you can open a corporate bank account in the UAE.

• A billing address

Amazon requires a valid address as proof of identity. They will need to verify this to set up your account.

• A phone number

Amazon also requires a valid phone number as proof of identity. You can sign up for a phone contract once you have a national ID in the UAE.

• A national ID

You will need to provide legal proof of identity issued by your government.

Cost of an e-commerce license to sell on Amazon UAE

The cost of an e-commerce license to sell on Amazon UAE starts at AED 6,875. However, you’ll need to take into account a variety of different factors too, such as whether you’ll need office space, resident visas, and other facility requirements. For a free and accurate quote tailored to your specific circumstances, reach out to our team at SPC Free Zone.

• How to open an Amazon UAE seller account

Once you’ve got your documents in order, setting up an Amazon UAE seller account is simple. We’ve broken the process down into five simple steps:

Step 1: Visit www.services.amazon.ae

Step 2: Sign up

Step 3: Enter your name, email, and password, then submit

Step 4: Add your business information

Step 5: Upload the required documents for verification

Once you’ve submitted your application, you’ll need to wait for Amazon UAE to approve your account. This can take between 24 hours and several weeks. Once Amazon approves your account, you can start selling.

•  Selling Costs

When selling on Amazon, there are a few types of selling fees you’ll have to pay that depend on the products sold and the fulfillment of the order. This includes referral fees, which are fees that sellers have to pay for each item sold. This amount varies depending on the category of the product and is deducted by Amazon.

• Seller Central access

Once all your documents have been registered, you will have full access to your Seller Central account. This account is your one-stop shop for everything related to your seller account, including making inventory updates, adding product information, managing payments, and so much more.

Steps to get an e-commerce license in the UAE

The steps to getting an e-commerce license in the UAE are relatively simple, providing you have the right documents in order. At SPC Free Zone, our business advisors can guide you through each of the steps below:

Step 1: Submit documents and wait for approval

Once approved, you’ll receive your e-commerce license in less than two hours

Step 2: Immigration card and e-channel application are issued

You’ll receive a temporary visa, which is usually valid for 60 days

Step 3: Entry permit and status change

Authorities will activate your status change once you’ve received your entry permit.

Leveraging Amazon Advertising for growing your business

In addition to being a platform for showcasing your products to the world, Amazon provides the tools to boost the visibility of your brand, to increase your sales while decreasing your costs.

One of the advertising solutions Amazon offers is sponsored ads that include:

• Sponsored Products: this type of sponsored ads is for individual product listing, and they appear on shopping results and product detail pages.
• Sponsored Brands: this type of sponsored ads features your brand logo, a custom headline, and a selection of your products, and they appear on shopping results pages.
• Sponsored Display: a self-service advertising solution to reach relevant audiences, with ads appearing on and off Amazon.
• Stores: custom multipage shopping destinations for individual brands that have a wide range of easy-to-create content templates and tiles to easily create professional-looking websites with no need for website design experience.

Frequently Asked Questions about Selling on Amazon in the UAE

• Is it legal to sell on Amazon in the UAE?

Yes, in most cases it is legal to sell on Amazon in the UAE. However, in order to trade online in the region, you will need to obtain an e-commerce license. You can apply for both mainland and free zone e-commerce licenses, though free zone licenses are often better suited due to tax incentives and fewer currency restrictions.

• Can you sell on Amazon without a license?

No, you cannot sell on Amazon in the UAE without a valid e-commerce license. Failing to obtain one could result in administrative and financial penalties, as laid out in Article 335 of the Commercial Companies Law (CCL).

• How to list my products on Amazon?

To start selling on Amazon you need to list your products, either in a previously existing listing or create a new one if you’re the first to sell a specific product.

In general, all products on Amazon need to have a Global Trade Item Number (GTIN) to be identified by Amazon. However, you only need to provide a product ID If you’re adding a product that’s new to Amazon with no existing listing to fall under, otherwise, you may need to purchase a UPC code or request an exemption.

Other information that goes into each product listing:

• Product name.
• Product Description
• Product images.
• Stock Keeping Unit (SKU); an identification code used to track a product for inventory purposes.
• Search terms and relevant keywords.

• How to ship and deliver my products on Amazon?

As an Amazon seller, you can deliver your products to customers in three ways:

• Merchant-fulfillment: where you maintain your own inventory and pack and ship the products to the customers yourself.
• Amazon Fulfilment: where Amazon takes responsibility for packaging, labeling, and shipping products.
• Amazon-easy-ship: in this model, you store and pack your products while Amazon handles the delivery.

• How to measure your performance on Amazon

Registering on Amazon and creating your account is just the first step in your venture. monitoring your performance after you start to sell on the website is a key step in leading a successful e-commerce business.

To measure your performance, you need to keep things in mind:

• Performance metrics

As an Amazon seller, you need to watch out for the following metrics:

• Order defect rate (a measure of a seller’s customer service standards): < 1%
• Pre-fulfillment cancel rate (initiated by the seller before shipment): < 2.5%
• Late shipment rate (orders that ship after the expected date): < 4%
• Customer reviews: reviews are an indicator of the quality of your products and services.

Why choose SPC Free Zone?

Located in the heart of Sharjah with immigration services onsite, SPC Free Zone offers convenient, competitive, and flexible business setup in the UAE. Choose from over 1,500 business activities and get your license issued in just 45 minutes. You’ll also benefit from a whole string of benefits, including up to 20 visas under one trade license, 100% foreign ownership with zero-paid-up capital, and a dual license option that offers both mainland and free zones on the same license.

To expand your Amazon e-commerce business in the UAE, get in touch with our market-leading experts to learn more.

Want to pave your way to success with Business Ideas in Dubai?

Uncover the secrets of success where innovation and opportunity converge in this global business playground. Explore the possibilities of Business Setup in Dubai today!

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In an era where employee well-being is becoming central to organizational success, the significance of a positive work environment cannot be overstated. A workplace that nurtures collaboration, respect, and open communication attracts top talent and retains it, resulting in higher productivity and lower turnover rates.

SPC Free Zone, a dynamic organization committed to excellence, recently achieved a significant milestone by earning the prestigious “Great Place to Work” certificate, underscoring its dedication to cultivating a workplace beyond the ordinary.

The “Great Place to Work” Certificate: A Symbol of Excellence

The “Great Place to Work” Certificate is a prestigious recognition awarded to organizations that demonstrate an exceptional commitment to creating and maintaining an outstanding workplace culture. This certification is granted by the Great Place to Work Institute, a global research and consulting firm specializing in employee engagement, organizational culture, and workplace excellence.

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Moreover, the Survey has shown an overwhelming sentiment of safety within the organization, with an outstanding 99% of employees expressing that they feel physically secure at work. Similarly, an equal percentage feels warmly welcomed upon joining the company. Significantly, 96% affirm experiencing fair treatment regardless of gender, and an equal percentage finds management approachable. Furthermore, an impressive 95% express a profound sense of pride in their colleagues’ accomplishments.

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SPC Free Zone: An Innovation Hub for Creative Industries

Since its establishment in 2017, SPC Free Zone has attracted significant players and businesses across the creative sector. It has created a unified platform for publishers to complete all translation, publishing, and distribution activities and provides world-class services and advanced infrastructure to assist publishers including storage, logistics, and printing.

While enjoying 100% ownership, zero personal income tax, and corporate tax incentives, investors at SPC Free Zone can choose from a host of over 1,500 business activities to launch their entrepreneurial journey. The tailored solutions further enable investors to combine up to five activities and receive up to 100 visas on one license.

With this being said, SPC Free Zone stands as a beacon of world-class services, and innovative solutions, and a great place to work for anyone seeking a healthy and supportive work environment.

Contact us today to start your business in the UAE!

In the ever-evolving landscape of business, time is of the essence. Understanding the crucial need for expediency in establishing your venture, SPC Free Zone unveils a groundbreaking solution: the Instant License. This innovative service is tailored to expedite the business setup process in the UAE, ensuring that your entrepreneurial dreams become a reality in the shortest possible time.

The Instant License isn’t just about speed; it’s a comprehensive package designed to streamline the entire setup journey.

Here’s what this game-changing service offers:

Quick and Efficient Setup

The most remarkable feature of this offering is the instant business license issuance, which saves applicants much waiting and the endurance of bureaucratic procedures. With the Instant License, your business is swiftly brought to life, allowing you to focus on what truly matters—nurturing and growing your enterprise.

Comprehensive Coverage

The package isn’t just about speed; it’s about comprehension. It covers up to 5 activities, combining diverse business interests under a single license. Additionally, it accommodates up to 7 shareholders, providing flexibility for collaborative ventures.

Visa Quotes and Essential Documents

Understanding the importance of seamless operations, the Instant License service offers unlimited visa quotes, making employee immigration procedures a breeze. Moreover, crucial documents like the Memorandum of Association, Lease Agreement, Share Certificate, Certificate of Formation, and Business Activity Certificate are included.

Empowering Entrepreneurship

This service is a catalyst for entrepreneurial empowerment. By simplifying the setup process, SPC Free Zone aims to encourage and support aspiring business owners, enabling them to materialize their visions without unnecessary delays.

Set up a company in UAE with SPC Free Zone

With its unique location, business-friendly regulatory environment, and immigration services available within its premises, SPC Free Zone provides the fastest and most hassle-free business setup services you can imagine. Enjoy the great benefits of setting up a business in UAE free zones, like 100% ownership of your business as a foreigner, import and export, and corporate tax incentives.

Moreover, the free zone provides a wide range of world-class infrastructure and storage spaces, as well as print-on-demand services.  

SPC Free Zone provides more than 2000+ business activities with the ability to combine up to 5 activities under one trade license.

Enjoy special discounts on multi-year packages and a unique chance to work from both the mainland and the free zone with the option of dual licensing.

Do you want to know more about business setup in Dubai, UAE, or interested in business setup in Sharjah? Contact our team of business setup experts today.