Ensuring Digital Signature Lawfulness for Retail Trade in UAE

How to eSign a document: digital signature lawfulness for Retail Trade in UAE

hey it's the wealthy expat here if you are looking to establish a business in dubai you've probably heard about the differences between free zone companies and mainland companies both pay zero percent tax they work in different ways they allow you to do different things and there's also a little caveat that mainland companies are going to have moving on in the future that might want to help you choose the free zone company instead but maybe you do need a mainland or maybe you want to go the mainland route i'm going to talk a lot about mainland companies we have a new service where we actually do mainland companies for people not only free zone so we'll talk about all the benefits of mainland maybe it's the right fit for you if it isn't you can just start free zone if it is then you can start the mainland company the first main thing is that you can do business in uae itself for example we're helping a client right now who's starting a cleaning company in dubai he's going to hire about 300 cleaners and he's going to clean apartments villas boats many different things all over dubai for an activity like that where you're actually doing business in the mainland in the uae you do need a mainland company so essentially you're giving services to people face to face you're renting out cars you're renting out jet skis you're cleaning you're doing any type of service that requires you to actually help or give that service or that product directly to customers for example if you're starting a grocery store then you obviously need a mainland company because you're selling products directly to customers there in the uae so if that's the case then you definitely need a mainland company you cannot get away with a free zone company if you are selling directly to uae residents and customers directly in uae you also need to pay a vat a five percent tax of course if you sell anything in uae to uae customers then you need to pay five percent vat which is added on top of the amount so for example if you're charging a hundred dollars for a whatever a shaving kit that i just bought yesterday then you need to charge five dollars on top of that hundred and then you need to pay those five dollars over to the government it's not that much but it's still a hassle and obviously you don't need to pay any income tax no corporate tax which i'll talk about in a second but you do need to charge that b80 on top another great benefit about mainland companies is that it's easier to get a bank account much much easier to get a bank account at the corporate level not really at the personal level it's the same ease of doing business at the personal level opening a personal account with free zone or mainland when it comes to having a corporate account with a free zone company it can take a while it can take a couple of weeks even months if you do it the improper way without the right contacts or you just go directly to the bank with the mainland company people in dubai in general that work at banks the bankers the bank managers they love mainland companies and they tend to give bank accounts to mainland companies a lot faster a lot easier and in general having a mainland company grants you the ability to open a corporate account a lot easier and a lot faster that's just the fact it is much much easier a lot less hassle a lot easier to rent offices as well so for example with a mainland company you don't only get a bank account easier you can also rent an office or buy an office a lot easier without more permits more documents you can pretty much do it straightforward because you are a limited liability company an llc in the mainland of the ue so you get treated better mainland companies are also faster when actually incorporating them so it can take one or two days to get the license it can take one to three days to get the establishment card which is a document that you need for your visa and then it can take about a week to get your visa so essentially in less than two weeks you can have a company the license the establishment card and the visa process absolutely everything done if you choose the mainland route if you choose the free zone route then it's going to take you around a month maybe a month and a half to do this whole process so if you're an extreme rush and you want to do this as fast as possible because you need to leave to another country or the world's going to explode if you don't finish this in less than two weeks then choosing the mainland option is definitely the best route there you can also own property in dubai not in your name but in the company's name so for example if you want to protect your assets against somebody that is a crazy person for example in my case i'm going through a divorce right now and my ex-wife is trying to take a lot of money from me i'll make a video about that in the future and if i wanted to protect that money then i could potentially just start a mainland company and then buy property under that mainland company which is a strategy that a lot of people use they start a mainland company they then buy property under that mainland company to protect themselves from government crazy ex-wives or anybody that is trying to get their money they can't do it at the personal level they can do it at the corporate level it's important to note that with a mainland company you can own a hundred percent of the company before it used to be that a local person an emirati contact needed to own about 50 51 of the company and then you own the other 49 now that's no longer the case you can own a 100 of the mainland company absolutely no problem and you don't need a local contact to act as the person that is sort of running your company or as a shadow person that is running your company that's not the case anymore you can own it 100 sometimes you need an agent to establish the mainline company we provide that agent of course so in the example of this client that is starting a cleaning company we started the company it took one or two days to get the license you do need to be in dubai to sign the papers or in the uae in general to sign the paper so he went to the office signed the papers then we got the establishment card and he's already ready to get his visa after five days of processing and this doesn't happen with free zones it is not that fast so if you're looking for a fast process where you can also protect your assets at the corporate level and you can also get banks easier and you can also do business in dubai directly for any type of service that you're offering to dubai customers as well as you want a better reputation with banks or maybe better even business opportunities with local funds and local companies and definitely a mainland is a great fit for you there are some cons to the mainland which i will express right now mainlands are typically more expensive they're gonna cost you about five or ten thousand more dollars than what a free zone is going to cost you just because the process requires a lot more fees in the dubai government you need to pay a lot more to actually establish an llc company in the mainland much more than the free zone so that's something a lot of people watching this channel are wealthy expats they don't really care about the fees but definitely the mainland costs a lot more then the free zone the other thing is that mainland companies will be taxed starting in 2023. you will have a 9 corporate tax that is going to come to the ue i'm going to make a video about why i think this is a swiss cheese tax essentially this is just a headline tax rate and nobody's actually going to pay that tax rate so in some countries you have a tax rate of let's say 20 or 20 something percent like in the case of malaysia but if you establish a company in lab one malaysia then you pay a lot less than 20 and that might be the case in the uae where the top tax rate is 9 or 15 and all mainland companies need to pay this nine percent but in reality most companies don't pay this and also free zone companies don't pay this tax but if you want to completely be tax-free absolutely tax zero for the next for cw future five 10 20 years then definitely free zone is a better choice for you not mainland because in mainland you will have attacks starting in 2023 so that's gonna be something that is going to hurt you if you start a mainland company when it comes to picking which one is the best i've talked about free zone companies a lot now i will talk about mainland as well because we've gotten a lot of increase for mainland companies if for example you're a person that is not going to do business in the ue you don't necessarily need a corporate bank account you're more doing it for personal residence you just want to have an emirates id you just want to have tax residents in the uae to trade your crypto or your stocks or run your online marketing business and you don't really need to sell to uae customers you don't really need to do business in the uae you don't need to rent an office in the uae then mainland doesn't really make sense if you're not going to hire 30 50 people and bring them all to dubai then it doesn't really make sense to have a mainland company in that case it obviously makes sense to have a free zone company but if you're doing business in dubai we're hiring a lot of people in dubai you are actually going to sell to dubai customers you're going to charge that 5 bot you want to rent an office anywhere in dubai in the uae and you want to have better relationships with banks just because you have an llc a mainland company then definitely mainland is more for you if you want me to talk more about mainland companies and exactly the differences between the two in the real world in practicality then i can make more videos like that and if you want to get yourself a mainland or free zone company and you want to move to dubai lower your taxes down to zero percent in dubai and the uee click that first link in the description book a one-on-one call with me and the wealthy expat team let's see if we're the right fit to work together and let's see if we can help you establish that mainland that free zone that company that you need abroad in order to lower your taxes down and click the video that's going to pop up right here so you see all the benefits of the free zone company so we talked about mainland and i can also talk about free zone and the process that the free zone company involves you can check it out right now in this video subscribe to that notification bell the like button down below and i will see on the next one i am the wealthy expat