Business Incorporation in the UAE – General …...various onshore and offshore jurisdictions. 3....

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BusinessIncorporationintheUAE–GeneralInformation

1. Definitions

Any capitalised terms used in this document shall have the meaning given to them in the BusinessIncorporationZoneStandardTermsandConditions.PleaserequestacopyoftheseTermsandConditionsifyouhavenotyetreceivedone.

2. Schedules

Pleasealso refer to therelevantSchedules to thisdocument,whichcontain informationspecific to thevariousonshoreandoffshorejurisdictions.

3. Changes

3.1 Thisdocumentisintendedforinformationpurposesonlytoassistyouinsettingupyourcompany.3.2 Whilst the information provided in this document is correct at the time of print as far as Business

IncorporationZoneisaware,theaccuracyoftheinformationmaychangeatanytimeinaccordancewithrelevantlaw,regulationorpractice.

3.3 It is not the responsibility of Business Incorporation Zone to keep the Customer or any visa applicantupdatedonanongoingbasisastoanychangestotheinformationprovidedinthisdocument.

3.4 UndernocircumstancesshallBusinessIncorporationZonebeliableforanyinaccuracyofanyinformationprovided in this document. It is solely your responsibility to inform yourself and any visa applicant ofrelevantlawandregulationrelevanttotheset-upofyourcompanyandapplication/issuanceofanyvisas.

3.5 ShouldBusinessIncorporationZoneofferanypromotions,thesewillbeforaspecifiedtimeonlyandyouwillnotbepermittedtotakeadvantageofanypromotionsaftersuchtime.

4. Publicholidays

DuringperiodsinandaroundRamadan,daysofmourning,Eidandothernationalandreligiousholidays,allindicativetimelinesarelikelytobecomesubjecttodelay.

5. Visaapplicationprocess

5.1 BusinessIncorporationZoneislegallyobligedtokeepthevisaapplicantinformedoftheprogressoftheir

visa application and is obliged to release the visa and passport directly to the visa applicant unlessexpresslydirectedotherwisebythem.

5.2 AllvisarelateddocumentssubmittedtoBusiness IncorporationZone (nomatterwhat timeofday)willalwaysprocessedthefollowingBusinessDay.

5.3 If a “Unified Number” is required in the visa application process, GCC nationals will be required topersonally visit the main or airport terminal 3 immigration offices to obtain their Unified Numberreport.ThefeeforthisserviceisAED250foreachshareholderandtheestimatedprocessingtimeisthree(3)BusinessDays.

5.4 If,atanytimeduringthevisaapplicationprocess,thevisaapplicationisterminatedorcancelledbyeitheryourself,thevisaapplicantortherelevantauthority,youshallnotbeentitledtoanyrefund.Ifyouorthevisaapplicantwishtorecommenceavisaapplication,youmuststarttheprocessfromthebeginningandthepaymentisrequiredtobesettledinfull.

5.5 Anyoverstayfinesmustbesettledpriortoanentryvisabeingissuedandthevisaapplicantwillincuranadministrationfeeplustypingfees.Oncethefinesarepaidandtheentryvisaissued,thevisaapplicantmustcompleteanin-countrychangeofstatusandfinesmaybeincurredfromthedaythevisaisissueduntil the changeof status is completed.Thevisaapplicantwillnotbeable to carryout thechangeofstatusbyexitingandre-enteringthecountrywithoutpayingtheoverstayingfines.

5.6 Ifthevisaapplicant isoutofthecountrywhentheirentryvisa is issued,theyarerequiredtoenterthecountryontheirnewentryvisa.Theywillnotbepermittedtoenterthecountryonatouristvisaorvisitvisaorvisaonarrival.

5.7 InordertomaintainaUAEresidency,residentsarerequiredtoenterthecountryatleastonceevery180calendardays.


5.8 Change of status is required to be completed prior to applying for anEmiratesIDCardandmedicaltest.

5.9 Shouldthevisaapplicantbeoutsidethecountrywhentheirvisaisissued,andtheyarenotfromoneofthe 56 countries granted a visa on arrival (please request a full list of these countries from BusinessIncorporation Zone if required) and they are entering the UAE on their new entry visa, which willconstitutetheirchangeofstatus,theyshouldensuretheycontacttheirairlinepriortotravelling,asmanyairlineswillneedtoverifyacopyoftheirentryvisapriortotravelandprovidethemwithan‘OKtoBoard’authorisation.Thesamewouldapplyifthevisaapplicantisinsidethecountrywhenthevisaisissuedandplanstoexitthecountrywiththeirvisainhandandthenre-entertheUAEbyair.

5.10 ShouldtherebeavisaapplicationunderprocessandthevisaapplicantwishestotravelinandoutoftheUAE,andtheyareanationalofoneofthe56countrieswhoaregrantedvisitvisasonarrival,theyshouldcontactBusiness IncorporationZonebefore re-entering theUAE,as if theirvisaapplicationhasclearedsecurityapproval, theymayhavetowaituntil theirnewemploymentvisahasbeen issuedandto re-entertheUAEusingthatvisa.

5.11 If the applicant is on a 30-day grace period from a cancelled visa, and a new e-visa is issued, theapplicant may not need to exit the country for the change of status to be completed. An in-countrychangeofstatusonlyneedstobeinitiated.

5.12 If you are SchengenNational andhave exhausted the 90day visit period grantedby immigration, youneedtoexitandbeoutofthecountryforatleast90daysbeforeyoucanre-entertheUAEwithatouristvisa.

5.13 For helper/maid/driver visa applications, the applicant will not be able to proceed for an in-countrychangeofstatusifthemaid/helper/driverishereintheUAEonatouristvisa.Theywillneedtomakeanairporttoairporttransfertocompletetheirchangeofstatus.

5.14 Whenavisaapplicantisenteringthecountryontheirnewentryvisa,theymustcarryoutaneyescanattheairportonarrivalandensuretheimmigrationofficialstampstheentryvisaaswellastheirpassport.Theyshouldnotenterontheire-gatecard.

5.15 Oncethechangeofstatushasbeencompleted,avisaapplicantwillnotbeabletotraveloutsideoftheUAEuntiltheirpassporthasbeenstampedwiththeirresidencyvisa.

5.16 The visa process for certain nationalities may take longer than the indicative timelines provided byBusinessIncorporationZone.

5.17 Ifyourapplicationgetsreturnedduetopendingdocuments(forexample,cancelledUAEResidenceVisa),immigrationwillgrantyouonlyten(10)BusinessDaystocompleteandre-submittheapplication.Non-compliancewillresultintheapplicationbeingrejectedandthefullvisafeeswillneedtoberepaidtorestarttheapplication.

5.18 Forcertainnationalitiesimmigrationofficialshavebeenknowntorequesttobeshownbirthcertificatesand/orattestedcopiesofpassportsand/ortheoriginalpassportspriortoapprovingtheissuanceoftheentryvisa.

5.19 Evenifavisaapplicant’splaceofbirthandnationalityisn’tfromoneoftherestrictedcountriesbuttheirnameisdeemedtohaveoriginatedfromoneofthosecountries,theywillexperiencedelaysandpossiblerejectionforboththeirImmigrationCardandvisarelease.

5.20 Onoccasion,delaysmaybecausedat the timeofanapplicant’sEntryVisa release,due to ‘un-clearedprevious visit visas’. This can occurwhen a national of one of the 56 countries granted a visit visa onarrivalmayhavepreviouslyenteredtheUAEatoneentrypointandexitedfromanotherandtheexithadnotbeenupdatedintheImmigrationsystem.

5.21 Whenthisoccurs,wewillalerttheapplicantofthedetailsthatwehavereceivedfromImmigrationandreturn theirpassport to them,and theywill be required to visit thepointwhere theyexited fromandpresentImmigrationtheretheirpassport,alertingthemoftheun-clearedexitdate.Theyshouldrequestthemtocleartheexistintheirsystem,afterwhichthevisaapplicantmayreturntheirpassporttous,andwewillresubmititforresidencystamping.Thestandardtimelinetocompletethisissixteen(16)businessdays.

5.22 The timeline for passport and Emirates ID issuance remains the same, even if PRO assistance for themedical test and Emirates ID application is provided. This does not expedite the Emirates ID andpassportstampingprocess.

5.23 ThetimeframefortheissuanceofEmiratesIDissolelyatthediscretionoftheEmiratesIDAuthorityandisoutsidethecontrolofBusinessIncorporationZone.Generally, ittakesfifteen(15)businessdaysfromthedateofissuanceoftheresidencevisa.

5.24 IfavisaapplicanthaslostorsurrenderedtheirEmiratesIDanddoesnothaveacopyofbothsides,theyshould submit a copy of their passport with the previous visa and one passport sized photo to anauthorizedEmiratesIDAuthorityTypingCentre.TheywillthenforwardthistotheEmiratesIDAuthoritywitharequesttoobtaintheirpreviousEmirates IDCardnumberwhichwillberequired in


ordertotypetheEmiratesIDCardrenewalapplication.TheresponsetimeforobtainingthepreviousEmiratesIDCardnumberfromtheEmiratesIDAuthoritynormallytakeslessthanone(1)BusinessDay.

5.25 Whenavisaholderisrenewingtheirpassport,ensurethatthenewpassportreflectsthesamenameasontheoriginalpassport.

5.26 Inordertosecureacustomscode(import/exportcode), theManageronthe licencemusthaveavalidUAEresidencyvisa.

5.27 IfyourpreviousUAEresidencevisacarriedyourmaidenname,andyounowhaveanewpassportwithyour married name, you will need to provide us with a certificate from your embassy/consulatestipulating the change of name. This certificate will need to be attested by the Ministry of ForeignAffairs in theUAEand legally translated intoArabic. Ifyourembassy/consulatedon’t issueachangeofnamecertificate,youwillneedtoobtainwrittenconfirmationfromtheembassy/consulatestatingthattheydonotprovidesuchadocumentwhichwillalsoneedtobelegallytranslatedintoArabic.

5.28 Iftheapplicationforyourentryvisaisrejectedasaresultofnotclearing‘securityapproval’,youwillbeineligibletoapply forandsecureatouristvisa inthefuture.Thisdoesnotapplytonationalsof the56countrieswhoaregrantedvisasonarrival.

5.29 Ifyouarecarryingmorethanone(1)passport,pleaseensureyouinformaBusinessIncorporationZonerepresentative of the same. Furthermore, please note that you will be unable to travel on your 2ndpassport(theonenotsubmittedtowardsyourvisaprocess)whilstyourvisaapplicationisinprocess.

5.30 IfyournormalpassportwhichholdsyourvalidUAEresidencevisahasrunoutofpagesand/orexpired,youwillnotbepermitted toenterUAEona temporarypassport.Youwillneed towaituntil yournewnormalpassporthasbeenissuedandthentravelcarryingbothyournewpassportaswellasyourpreviouspassportwhichholdsyourvalidUAEresidencevisa.

5.31 IfyouhaverecentlyvisitedKishorIranoranyotherterritoryofIran,youwillonlybeabletoapplyforaUAEresidencyvisa6monthsfromthedateyouleftKishorIran.Moreover,ifyouhaveanyvalidvisatoIran(usedornot)youwillalsonotbeabletoapplyorrenewyourUAEresidencyvisa.

5.32 Wehold no responsibility for the issuanceor delivery or delays related to Emirates IDCards, or if theapplicant is requested by the Emirates ID Card Authority to return to the ID Card centre to redo thebiodataprocedure.

5.33 Handwrittenpassportsarenolongeraccepted,allpassportcopiessubmittedshouldbeelectronic/typedpassports.

5.34 Passportsbearingonlyyourfirstnameandnosurnamewillnotbeaccepted.5.35 Iftheshareholder/manageronlyhasonenameonthepassport,father'sname/surnamewillbeincluded

andwillbereflectedinthecompletecompanydocuments.5.36 The passport used in the incorporation of the company licence and visa application has to be the

same.Ifyouareholdingtwopassports,whetherfromthesamecountryorfromdifferentcountries,youwillnotbeabletouseonepassportforoneapplicationandtheotherpassportfortheother,thesamepassportwillneedtobeusedforallapplications.

5.37 Ifyouhavebeenissuedapassportwhichisvalidforlessthanthreeyears,thenyouwillonlybeissuedavisaforthesamelengthoftimei.e.ifyourpassportcarriesavalidityoftwoyears,thenyourvisawillalsoonlybefortwoyears.

5.38 Anyamendments to thepassport'sappearance i.e.design, formatorvalidity,has tobeupdated in theimmigration system. This process will take longer than the usual timeline and will require additionaldocumentationsuchasanattestedletterofconfirmationfromtheirrespectiveembassyorconsulate.

5.39 If a visa applicant has several previous UAE residency visas where their profession is mentioned as‘housemaid'theywillnotbeabletoobtainanemploymentvisaunderthecompany.Pleasecontactusforfurtherclarificationandupdatesasthesituationremainsfluidinthesecases,andonoccasion,exceptionshavebeengrantedifthehousemaidholdsanattesteddegreecertificate.

5.40 Any time any application needs to be re-submitted i.e. Trade Licence, Immigration Card, Entry Visa,Residency Stamping applications; the timelines for completing said processwill be as if itwere a newapplication.

5.41 Alloutstanding traffic fineshave tobe settledprior toapplying foryourvisaaswellas cancellingyourvisa.

5.42 Pleasenotethatvisasissuedonthecompanyareexclusivelyforperson/sworkingforthatcompany.Ifacompany is foundtobesellingvisasand/oravisaholder isengaging inworkforanothercompany,theperson/sinquestionis/arelikelytofacelegalprosecutionanddeportation.

5.43 AnapplicantwillnotbesentanyreminderfromBusinessIncorporationZonepriortotheexpiryofanyresidencyvisa.TherelevantpersonshouldcontactBusinessIncorporationZoneatleast30workingdayspriortoexpiryoftheresidencyvisatocommencetherenewalprocess.


6. Companydocumentationandregisteredaddress

6.1 Company documentation (including trade licences) is issued by the relevant authority, and visas areissuedfromtherelevantimmigrationauthority.TheregisteredaddressforyournewcompanywillbeassetoutonyourTradeLicence.

6.2 The registered address should be featured on your company stamp and should be used on all officialcompanycorrespondenceanddocumentation,includingcontractsandinvoices.

6.3 In the case of a flexi-desk arrangement in a free zone, the P.O. Box details that appear on your tradelicencemaynot be used to receive anymail or packages in your nameor in the nameof any of youremployeesorinthenameofyourcompany.NotethatanymailorpackagessenttothisP.O.Boxwillbedestroyed.

6.4 YouwillnotbeabletosecureanindependentphysicalP.O.BoxinDubaiwithEmpostforyourcompanywheresuchcompanyissetupinafreezoneinanotheremirate.

6.5 ShouldyousubscribetoaP.O.BoxwithEmpostforyourcompany,pleasebeinformedthatyouwillnotbeabletocanceltheP.O.Boxunlessyoualsoclosedownyourcompany.

6.6 TheMinistryofFinancewillnotissueTaxResidencyCertificatestoOffshoreCompaniesandBranchesofForeignCompanies.

7. Branchesandsubsidiaries

7.1 Ifyourcompanyisabranchofacompanyorpartiallyorfullyownedbyanothercompany,atthetimeof

opening the company bank account you will be required to submit a current attested Certificate ofIncumbencyandacurrentattestedCertificateofGoodStanding.

7.2 IfyouareplanningtoopenabranchorsubsidiaryofanothercompanyregisteredintheUAE,youwillberequiredtosubmitaboardresolution.

7.3 If your company is a branch or a subsidiary of a non-UAE company, you will need to submit theCertificateofGoodStandingoftheparentcompanyinordertoformyournewcompanyandannuallyinordertorenewyourlicence.Furthermore,thecertificatewillneedtobeattestedbytheUAEEmbassyinthecountryoforiginaswellastheMinistryofForeignAffairsintheUAE.

7.4 You must be able to identify the individuals named beneficial owners of any shareholder or parentcompany.Youmaynotbepermittedtoopenabankaccountwithoutprovidingthisinformation

7.5 Inaccordancewithyourtradelicenceandvisa,youmaynotbeabletopermanentlyworkfromanythirdparty offices or locations However, if your company is engaged in a specific projectwith a client thatrequires your regular presence at the clients’ premises, you will be able to visit and work from yourclients’ premises until the project is complete. Please note that in this scenario when you visit yourclients’ premises you will need to sign the visitors' book, wear a visitor’s badge, and work from acommunalarea.PleaserequestfurtherinformationfromBusinessIncorporationZoneinrelationtoyourparticularcircumstances.

7.6 IfyouareplanningtoopenabranchorsubsidiaryofanotherFreeZoneorOffshorecompanyregisteredintheUAEyouwillrequireaNOCfromtherelevantlicensedauthority.

8. Companynames

8.1 Any name that compromises the various versions of the Almighty God, sectarian names or terms,

names with religious connotations or symbols, names of the ruling family, names or emblems of anyemirateorlocal,regionalorinternationalorganizations,foundations,establishmentsandcountriesisnotpermitted.

8.2 Pleasenotethewords‘Dubai’,‘AbuDhabi’,‘Sharjah’,‘RAK’,‘RasAlKhaimah’,‘Ajman’,‘Fujairah’,‘UmmAl-Quwain’, ‘UAE’, ‘Emirates’, ‘Limited’, ‘Ltd, ‘Financial’ or ‘Agriculture’ can NOT be used in companynames,neithercanthewords‘Islam’,‘Islamic’or‘Bomb’oranyotherwordsrelatedtoanyreligion.Thewords‘Import’,‘Export’or‘Manufacturing’alsocannotbeused.

8.3 Words derived from the following are also restricted: ‘Corporation’, ‘Olympic’, ‘Jumaira’, ‘Nakheel’,‘Palm’,‘Zaabeel’,‘Maidan’,‘Salik’,‘Al-Arab’,‘Al-Wasl’,‘Al-Marsa,‘Zelzal’,‘Arsa’,‘Al-Haditha’,‘Al-Jadidah’andthewords‘City’and‘Village’incaseswherethetradenamestartswithoneofthosewords.

8.4 Anynamethatviolatesthepublicorderandmoralsisnotpermitted.


9. Bankaccounts

9.1 Youwillnotbeabletoopenyourbankaccountinabsentia.Allrelevantpartieswillneedtobephysicallypresent in the UAE whenmeeting with the banker. However, in certain circumstances, if any of theShareholders and/orGeneralManager cannot personally be present in theUAE to open the companyBankAccount,somebankswillacceptanattestedBoardResolutionand/orPowerofAttorneyfromallofthe absent Shareholders and/or General Manager in order to complete the bank account openingprocedure.Weareabletoassistwithdraftingtheseandyoushouldcontactthe banksforfurtherdetails.

9.2 Ifyouwillbeapplyingforvisasunderthecompany,youwillneedtoopenacompanybankaccountandmakemonthlysalarypaymentsfromyourcompanybankaccount.Allemployeesunderthecompanywillneedtoopenpersonalbankaccountsaswell.

9.3 Business IncorporationZone isable toprovideyouwitha listofbankingcontactsyoumaycontact thebankdirectlytoassistyouwithyourbankingrequirements.BusinessIncorporationZoneisnotinvolvedinthisprocessbeyondprovidingthelistofbankingcontacts.PleasenoteyouarenotrequiredtoutilisetheBusinessIncorporationZonebankingcontactstoopencompanyaccounts.

9.4 Business IncorporationZonedoesnotprovideanyassurances that your companybankaccountwill besuccessfullyopenedorhowlongitwilltakeforthebankaccounttobeopened.

9.5 Youwillberequiredtosatisfytheconditionsandprotocolsofthebankinordertosuccessfullyopenandmaintainacompanybankaccount.

9.6 In order to keep your company bank account active, you will need to lodge your renewed TradeLicenceannuallywiththebankonorbeforetheexpirydateofyourcurrentTradeLicence.

9.7 Inordertosecureautilitybill inyourpersonalnameyouwillneedto leaseresidentialpremises intheUAE,andinordertosecureautilitybillinyourcompanyname,youwillneedtoleasephysicalpermanentofficespace.

9.8 Mostofthebanksrequireaphysicalofficeinordertoopenabankaccount.Pleasecontacttherespectivebankforfurtherdetails.

10. Companyclosure

10.1 A company licence should not be cancelled if it still holds corporate bank accounts in the UAE and

overseasorhasoutstandingloans,creditorsorholdsassetsintheUAEandoverseas. 10.2 Youwillnotbeabletoletyourcompanylicenceorvisassimplylapse,youwillberequiredtocancelthe

companylicenceandthevisas(bothemployees’anddependents’).Thiswillotherwiseresultinfinesandyourcompanybeingnotedasadefaulterinfreezonerecords.

Schedule1

FujairahCreativeCityFreeZone

CompanyDocuments

1. The Free Zone will only issue soft/electronic copies of your company documents. There will be averificationlinkwhichyoucanclickthatwillleadyoutotheissuingauthority’sportalifthisneedstobeverifiedbythebanks,etc.Ifrequired,youmayrequestcertifiedtruecopiesofthesedocuments.The cost for this isAED315. Youmust pick up anyoriginalswithinninety (90) daysor theywill bereturnedtothefreezone.

2. AlldocumentclearinganddocumentprocessingtaskspertainingtoyourapplicationsarecarriedoutbyourofficeinFujairah.

3. AnydocumentsorapplicationshandedintoourDubaiofficeareadrop-offandpickuppointonly,nodocumentclearingordocumentprocessingtakesplaceinDubai.

4. CompanydocumentationisissuedfromFujairahCreativeCityFreeZone,partofFujairahMedia,andvisasareissuedfromFujairahImmigration.Pleasenote,theregisteredaddressforyournewcompanywillbeCreativeTower,FujairahasperwhatwillappearonyourTradeLicenceandwhatwillfeatureonyourcompanystampandfurthermore,shouldbeusedonallofficialcompanycorrespondencei.e.


contracts,invoices,etc.

PaymentsAndFees

5. AnypaymentshandedoveratourDubaiofficeareadrop-offpointonly,allreceiptsandinvoiceswillbeissuedfromourofficeinFujairah.

Timelines

6. The cut-off time for any application (except visa related applications and activities related toeducation)tobesubmitted/receivedandpaymentstobereceived/releasedis1pm,anythingreceivedafterthistimewillbeconsideredtowardsthefollowingworkingday.

7. YourtradelicencestartdatewillbeDay1oftherelevanttimeline.

ImmigrationCard

8. IntheeventFujairahImmigrationrequestsforallshareholder’sphotographsfortheimmigrationcardapplication,youwillexperiencedelaysforbothyourImmigrationCardpre-approvalandapplication.

9. In the event that you already downgraded your license to 0 visa andwish to upgrade, youwill berequiredtochangethenameofyourcompany.

10. PleasenotethatonlyanElectronicImmigrationCardisissuedandnophysicalcardwillbeavailable.

11. PleasenotethatyourcompanyimmigrationcardcannotbereneweduntiltheE-Channelregistrationisrenewed.

12. ThecompanyImmigrationCardneedstoalsoberenewedannually;shouldthecompanyImmigrationCardnotberenewed,a penaltyofAED1,515willbeapplicableforthefirstmonthafterexpiryandAED100persubsequentmonth.

CompanySet-UpandStructure

13. ThedefaultsharecapitalamountforanFZEcompanywillbeAED100,000andAED150,000foran FZ

LLCcompany-theseamountscannotbechangedtoahigherorloweramount.

14. TheMemorandumandArticlesforyourcompanycannotbeedited,amendedorexpandedupon.

15. UndertheCompanyLicenceOnlysetupoption,allshareholdersneedtobeindividuals.

16. ThemaximumnumberofshareholdersallowedundertheCompanyOnlylicenseis50,ifyouwouldliketohavemorethan50shareholders,youwillneedtopayAED1575peradditionalshareholder.Also,pleasenotethatallshareholdersonthecompanyonlylicencesmustbeindividuals,corporateshareholdersaren’tpermitted.Also,pleasenotethatallshareholdersonthecompanyonlylicencesmustbeindividuals,corporateshareholdersaren’tpermitted.

17. Youmaynotdowngradeyourlicensingoptioni.e.fromBabyBusinesstoFreelancerorfromFreelancertoCompanylicenseoranycombinationofthesame.

18. ForCompanyOnlylicences,theFreeZonewillnotissueaNoObjectionCertificatetoregistervehiclesunderthecompanynameastheyrequireanImmigrationCardtodoso.

19. Ifyouselectthebusinessactivities‘LegalConsultancy’,’Accounting&AuditingConsultancy’and‘EducationConsultancy&Training’,youwillneedtosubmityouroriginalattesteddegreecertificateinordertoprocesstheapplicationforthecompanyTradeLicence.


BusinessOperations

20. Theapprovedaddressinthecompanystampis“CreativeTower,Fujairah,UAE".

21. AcompanyregisteredundertheFujairahCreativeCityFreeZoneareonlypermittedtotradewithinthatfreezoneoranotherUAEFreeZoneoroutsidetheUAEandnotwithintheUAEunlessspecificconsentisobtainedfromrelevantauthorities.Forcompaniesregisteredinafreezonelookingtotradeingoodsandserviceswithin theUAEarerequiredtoeitherappointaCommercialAgent inmainlandor toregisterabranchofficeinmainlandwiththerelevantDepartmentofEconomicDevelopment(DED

22. Under your license issued from Fujairah Creative City Free Zone and visa issued from FujairahImmigration,youwillnotbeabletopermanentlyworkfromany3rdpartyofficesorlocations.However,ifyourcompanyisengagedinaspecificproject/contractwithaclientthatrequiresyourregularpresenceattheclients’premisese.g.anaudit–youwillbeabletovisitandworkfromyourclients’premisesuntiltheproject/contractiscomplete.Pleasenotethatinthisscenariowhenyouvisityourclients’premisesyouwillneedtosignthevisitors'book,wearavisitor’sbadge,andworkfromacommunalarea.

23. Companies registeredwith Fujairah Creative City Free Zone having activities conducted in the UAE viavisual and print media, advertising and news websites, electronic publishing and on-demand printing,including activities promoted through socialmedia are required to secure an E-Media license from theNationalMediaCouncil.InitialregistrationfeeisAED2,887.50andisrenewableyearlyforAED2,775

24. You are obliged to maintain Business Incorporation Zone as your agent for the lifetime the companyremains in existence, and are not permitted to transact their company license renewal or any otherprocesspertaining to their company individually or via another agentor via the Free Zoneat any timeunlessotherwiseagreedbyBusinessIncorporationZone.

25. Shouldyoufailtorenewyourtradelicenseatleast45dayspriortoitsexpiry,allservicesfromtheFreeZonewillbesuspendedi.e.youwillnotbeabletoapplyforanyvisasorNOCsetc.untilyoucarryouttherenewal.

26. YouwillneedtopayAED5050tocanceltheTradelicenseanduptoAED1,020tocanceleachemploymentvisa and relateddependent visas under the company. Pleasenote the above is applicableproviding allcancellations takeplaceduring theTrade Licence validityperiod– should anyof theabove takeplaceaftertheTradeLicencehasexpired,latefeeswillalsobeincurred.YouwillalsoneedtoreturntoBusinessIncorporationZoneall youroriginal company formationdocumentseven if theyareexpired, sopleasedon'tdestroyormisplaceanyofthesedocumentsasotherwise,youwillneedtosubmitapolicereportandpayanadditionalAED2,100atthetimeofcancellation.

27. If you would like to amend your Trade Licence from 1 individual shareholder (FZE) to more than 1individualshareholderoracorporateshareholder(FZLLC)theamendmentfeeisAED4,840.

28. Anupdatedbusinessplanand/orCCAuthorizedSignatoryFormmustbesubmittedto theFreeZone intheeventthattheshareholderand/orPersoninChargewhosignedtheoriginalbusinessplan is/arenolongeraffiliatedwiththecompany.

29. ThemaximumnumberoffreeshareholderspermittedperFZLLCcompanyis50.

30. Theothercompanyshareholders(i.e.excludingtheshareholderwhotookupthepositionof‘personincharge’) or company employees or company officers wishing to take up UAE residency and to beemployedinaManagerialposition(i.e.MarketingManager,OperationsManager,SalesManageretc.)willneed to submit theiroriginaldegree certificateattested from the countryoforigin aswell as from theMinistryofForeignAffairsintheUAEandlegallytranslatedintoArabic.Furthermore,pleasenoteinordertoobtain‘visaonarrival’toGCCcountriesitisnecessarytoholdaManagerialPositiononyourvisa.

31. ThemaximumnumberofManagerialDesignationspercompanyisbasedonthepackagepurchased.

32. Theothercompanyshareholders(i.e.excludingtheshareholderwhotookupthepositionof‘personincharge’)whodon’tholdattesteddegreecertificates,maystillapply foravisaonthecompany,butwillonlybeabletoapplyforadministrativerelatedpositionsorthatofaSalesorMarketingRepresentative.

33. NotwoemployeesofonecompanycanholdthesamepositionontheirResidenceVisai.e.youcan’thavetwoSalesRepresentativesortwoMarketingRepresentatives.

34. If you or any of the shareholders or the person in charge have previously beenmarked as banned orabsconded by your current/previous employer OR have a previous or ongoing court case, OR have a


previous or ongoing policematter,OR have a previous or ongoing bankmatter OR can outline any other reason why a government application may not be successfullygranted,pleaseoutlinethesame inwriting toaBUSINESS INCORPORATIONZONErepresentativeat thetimeofthisapplication.FailuretodosowillresultintheapplicantbeingfinedasumofAED5,250bytheFreeZoneAuthority.

35. If you currently are the sole individual shareholder on your company trade licence and decide toamend the licence to add a shareholder or change from an individual shareholder to a corporateshareholder the suffix on your licencewill go from FZE to FZ LLC – similarly if you aremore than oneshareholderoracorporateshareholderonthetradelicenceanddecidetoamendthelicencetobecomeoneindividualshareholderthesuffixonthecompanywillgofromFZLLCtoFZE.

36. When applying for a Salary Certificate from the Free Zone, you will need to either submit personalbankstatementsforthelast3monthsillustratingsalarytransfershavingbeeneffectedtoyourpersonalbank account or pay slips for the last 3months signed by yourself and the person in charge on thelicence.Pleasecontactusforfurtherinformation.

Visas

37. Youmayapplyforyourdependents’visasponsorshipwithoutgoingthroughBusinessIncorporationZone(withtheexceptionofyoursalarycertificate).However,shouldyouwishtoutiliseourservices foryourdependents’visaapplications,kindlycontactusforpricingandprocedures.

38. Yourresidencyvisaandthoseofyouremployeesanddependentsarevalidfor3years,pleasenotethatyouwillnotbesentanyreminderfromBusinessIncorporationZonepriortotheexpiryoftheresidencyvisas,youwillneedtocontactBusinessIncorporationZoneyourselvesatleast30workingdaysbeforetheresidencyvisasexpiretocommencetherenewalprocess.

39. Thelabourcardisoftennotreleasedatthesametimeasthepassportafterresidencystamping.Ifitisn’treleased at the same time as the passport after residency stamping, it will usually be released withinseventy(70)calendardaysthereafter.

40. Furthermore,underthecompanylicenceonlysetupoptionallshareholdersneedtoeitherholdavalidUAEresidencevisasORbeanationalofanyofthe56countrieswhoaregrantedvisasonarrivalORbeanationalofaEuropeancountryORbeanationalofaSouthEastAsianCountryORbeanationalofaSouthAmericanCountry(excludingCuba)ORbeanationalofacountryintheIndianSub-Continent(excludingPakistan)ORbeanationalofaCaribbeancountry–pleasecontactusforfurtherinformationandfulllistsasthesituationremainsfluidinthesecases.Nationalsofanyothercountry,notholdingavalidUAEresidencevisa,willneedtoapplyforapre-approval.

41. WhenapplyinganewvisaapplicationfornationalsfromIraq,Afghanistan,Pakistan,theapplicantneeds

toprovideaclearcopyofhis/hernationalIDfromhomecountry(fromandbackcopy).PleasenoteFujairahImmigrationwillacceptonlycardswithElectronicChip.Thisrequirementisforallnewvisaapplications,whethertheapplicantisinUAEoroutsideofthecountry.

42. PleasenotethataWorkPermit/LabourCardcanonlybeappliedforinconjunctionwitharesidencyvisa,itcannotbeappliedforindependently

43. TheFreeZoneonlyallowsamaximumoftwoLabourCardattestationapplicationspercompanyforbothFreelanceandBabyBusinessPackages.

44. In order to sponsor dependents (excluding ‘housemaids'), you will need to either have a ManagerialpositiononyourvisaorthatofaSalesorMarketingRepresentative.Inordertosponsora‘housemaid’,youwillneedtoholdaManagerialpositiononyourResidenceVisaandmustprovideabankstatementwhichreflectsaminimumsalaryofAED20,000.

45. Fujairah Immigration will only process ‘housemaid’ visas for applicants from Sri Lanka, Indonesia,Philippines,andNepal.

46. Whensponsoringdependents,youwillneedtoprovideFujairahImmigrationwith1to3monthspersonalbankstatements.Pleasecontactusforfurtherinformation.

47. Themedical results at Al Baraha Hospital will be released to the respective e-mail of the clients in 2working days after you have completed your medical test. Once you received the result, you need aprintout of the report and sent it back to BarahaMedical center in order to get the three necessarystamps.


48. Themedical resultsatAlKaramaMedical FitnessExpressServiceCentrearereleasedinaminimumof4businesshoursafteryouhavecompletedyourmedicaltest.

49. EmiratesIDapplicationmustbedoneeitherinAlBarahaorFujairahregardlessofwherethemedicaltestwasdone.

50. IfyourpreviousUAEresidencevisaandEmiratesIDcardbearsamisspelledorwrongArabictranslationor an incomplete name, upon correction of your new residence visa, you will need to wait for theresidencevisaorEmiratesIDtobecompletedandonlyapplyforamendment/correctionthereafterforafeeofAED1575.

51. PleasenotethatifyouhaveneverheldapreviousdrivinglicenceintheUAE,youwillneedtovisitFujairahtoeithertransferyouroverseasdrivinglicence(ifapplicable)ortakeyourdrivinglessonsandtest.

52. Furthermore,pleasenotethatforthosewhoareeligibletoapplyfordrivinglicencetransfersintheUAE,theFujairahTrafficDepartment requiresyou tosurrenderyouroriginaldriving licence fromyourhomecountry before handing over the UAE driving licence. This is applicable for the following countries:Netherlands, Poland, Austria, Romania, Portugal, Luxemburg and Slovakia. The Fujairah TrafficDepartmentwillsendthistotheissuingauthorityinyourhomecountryforyoutoretrieve.

53. Visatransfersaren’tpermitted,evenifit’sfromanotherFreeZone.

54. In very rare cases when Immigration cancels the residence visa at the airport post 180 days of beingoutsidethecountry,visacancellationstillneedstobesubmittedtotheFreeZone,followingthenormalvisacancellationrequirementsandfees.

55. Inordertobeashareholderorpersoninchargeofacompanyorapplyforvisas(bothatthetimeoftheentryvisaapplicationandlateronwhenthepassportissubmittedforresidencystamping)yourpassportshouldbevalidforaminimumof12months,youshouldalsohave2emptypagesinyourpassportaswell.Furthermore,youshouldholdastandard/normalpassport,traveldocumentsarenotpermitted.

56. Shouldyousubmitanewordifferentpassportatthetimeofresidencyvisastamping(differentfromtheonewhosedetailsyousubmittedatthetimeofapplyingforyourentryvisa)therewillbeanadditionalfeeofAED1,575.

57. Ifthepersoninchargewantstocanceltheirvisaonthecompany,butnotclosethecompany simultaneously, theywill need to amend the company trade licence and appoint someone else as theperson in charge inplaceof themOR they canmakeadepositofAED5050,which is refundableuponcancellationofthecompany,andprovidealetterfromtheirnewsponsor/employerconfirmingthattheywillsponsortheirnewresidencevisa.

58. Atthetimeofapplyingforthe6thvisaonthecompany,FujairahImmigrationwillrequestyourcompanybankstatementsgoingbackatleast1year,alongwithatleast5formsofdocumentaryproofintheformof a contract or order, illustrating that the company is operational and conducting active business.Immigrationmayevenrequest this informationearlier if theysuspect thecompanymaybeengaging intheactivityofsellingvisasontheircompany.Pleasenotethatvisasissuedonthecompanyareexclusivelyforperson/sworking for thatcompany. Ifacompany is foundtobesellingvisasand/oravisaholder isengaginginworkforanothercompany,theperson/sinquestionarelikelytofacelegalprosecutionanddeportation.

59. Atthetimeofyourresidencyvisarenewal,youwillneedtoeithersubmitpersonalbankstatementsforthelast6monthsillustratingsalarytransfershavingbeeneffectedtoyourpersonalbankaccountorpayslipsforthe last6monthssignedbyyourselfandtheperson inchargeonthe licence.This isapplicableevenforshareholdersofthecompany,youwill,however,beexemptfromthisrequirementifyouareasoleshareholderandthepersoninchargeofthelicence.Thevisarenewalfeecoststhesameasanewvisaapplication.Pleasecontactusforfurtherinformation.

60. Bangladeshinationalscanactasacompanyshareholder,providedtheyalreadyholdavalidUAEresidencevisa. However, in order to apply for aUAE residence visa under the company (for both shareholder&employee), theywill need tobe inside theUAEona cancelled residence visa (not inside theUAEonatouristvisa).Moreover,bothShareholder&EmployeewillNOTbeabletoapplyforanemploymentvisaiftheyareoutsideoftheUAE.

61. RecentlyonacasebycasebasisFujairahImmigrationhaveagreedtocarryoutavisapre-approvalprocessforafeeofAED2,100,formanywhoareeithernationalsof,orwerebornin,thecountriesmentionedintheabovebullet–pleasenotevisapre-approvalswillnotbepossibleforthoseborn in ornationalsofIranorIsrael.Pre-approvalforthosewhoareplanningtoapplyforvisasthataregrantedapprovalsfrom


Immigrationmust immediatelyapply for theEmploymentVisawithin30calendardays.Failuretoapplywithinthestipulatedtimelinewouldmeanthatthepre-approvalprocesswouldhavetobedonealloveragain;withthesametimeline,processandcost.For licenceupgradeoramendmentwhichwillincludeshareholdersfromtheabove-mentionedcountries,anUndertakingLettermustbesignedstatingthatapprovalisnotalwaysguaranteedandpre-approvalwouldhavetobedonealloveragain;withthesametimeline,processandcost.Kindlynotethat approvalisnotguaranteedonreapplication.Pleasecontactusforuptodateinformationasthelistandprocedurescanbecomesubjecttochangewithoutpriornotice.

62. Youmayapplyforallvisasonthecompanysimultaneouslyaslongasoneofthevisaapplicationsisalsoforthe‘personincharge’.

63. Shareholderswhoareupto69yearsoldareeligibletoapplyforanemploymentvisaonthecompany.Allnon-shareholdersapplyingforavisaunderthecompanyshouldnotbeolderthan59yearsold.

64. Incaseofvisarejections,arefundcanbeprovidedlessanadministrativefee.Therefunddoesnotapplytorejectionsduetoindividualsbeingmarkedasbanned,abscondedorblacklistedbythecurrent/previousemployer,immigrationorUAEcourts/police.

65. Ifyouhavesponsoredyourdependentsandsubsequentlycancelledtheirvisas,youwillnotbeabletoexitthecountryunlessyourdependentsaccompanyyouortheyhavesecuredtheirnewresidencyvisas.

66. Ifyouandyourspouseareofdifferentnationalitiesandgotmarriedinacountrywhichwasofneitherofyournationalities,youmayfaceissuesduringsponsoringyourspouse.

67. Womenarenotabletosponsordependents.

68. Neitherstepchildrennoradoptedchildrennorchildrenoutofwedlockcanbesponsoredbytherespectivestepparent/adoptive/biologicalparent.

69. Passports for Yemen nationals must be issued in UAE and must provide a letter from theembassy/consulatestatingtheneedtoestablishabusinessinUAE.

70. Visitvisasand/orMissionvisascannotbeissuedunderyourcompany.

71. If anyof the shareholdersor themanager/director is anEmiratiNational,wewill needa copyof theirEmiratesIDCard.CitizenshipcertificatefromtheMinistryofInteriorinlieuof‘Jinsiya’andEmiratesIDwillnotbeaccepted.

72. VisaapplicantsholdingEthiopian,Sri Lankanand Indonesianpassportswillneed tocarryoutamedicaltest in their home country andhave the results of saidmedical attested at theUAEConsulate in theirhome country prior to applying for their visa unless they are currently in the country on a cancelledresidencyvisa.Pleasecontactusformoreinformation.

73. SriLankan,Filipino, IndonesianandNepaleselookingtoapplyforvisaswhilststill intheirhomecountryhavetosecureandsubmitadditionaldocumentsandfulfiladditionalproceduresintheirhomecountryinordertoapplyfortheirvisa.Pleasecontactusforfurtherinformationonthesame.

74. Shouldyoufailyourmedicalexam,youwillnotbeabletoapplyforanotherresidencyvisaintheUAEinthefuture.

75. Unmarried female visa applicants suspecting pregnancy must not take their medical test as it isdeemedillegalasperUAElaw.Iffoundpregnant,theapplicantmayfacei.e. legalcharges,detentionorrepatriationtothehomecountry.

76. InorderforthecompanylicencetobeissuedandthecompanyImmigrationCardtobeappliedforandvisastobeissuedonthecompany,wewillrequiretheresidencyvisacopyand/orrecentvisitvisaentrystampand/orresidencyvisacancellationpapersofalltheshareholdersandthe‘personincharge’.

77. Youmayapplyforallvisassimultaneouslyaslongasoneofthevisaapplicationsisalsoforthe‘personincharge’.

78. Certain restrictions potentially exist for passport holders from the following countries to obtainImmigration Card or visas on the company (they can however still obtain visas as dependentswithoutissue):Afghanistan (if there isnoeye scan report),Algeria, Ethiopia (won’tbegrantedavisaevenasadependent), Guinea, Iran (also to act as company shareholder), Iraq, Israel (also to act as a companyshareholder), Kenya, Lebanon, Liberia, Libya, Morocco, Palestine, Sierra Leone, South Somalia, Sudan,Syria(iftheshareholderhasneverenteredUAE),Tunisia,TurkeyandYemen(iftheshareholderhasnever


enteredUAEandifpassportisissuedinDubai).

79. Persons born in any of the other countries mentioned in the above, but currently carry a passportfromanothercountrywillbeabletoactascompanyshareholder,butpotentiallymaynotbeabletoapplyfor employment visas on the company without pre-approval. Furthermore, if any of the above arecompanyshareholdersand/ormanager/directorofthecompany,ImmigrationCardpotentiallymaynotbeissuedbyImmigration,whichwouldmeannovisaswouldbeabletobeappliedforunderthecompany.Also,pleasenotethatevenifyourplaceofbirthandnationalityisn'tfromoneoftherestrictedcountriesbutyournameisdeemedtohaveoriginatedfromoneofthosecountries,youmayexperiencedelaysinbothyourImmigrationCardandvisarelease.

80. Anapplicantmayapplyfortheirdependents’visaswithoututilisingtheservicesofBusinessIncorporationZone (with the exception of assistance in providing a salary certificate). However, an applicant maycontact Business Incorporation Zone for pricing and procedures if they do wish to instruct BusinessIncorporationZonetoassistwiththisprocedure.

81. Forthe‘personincharge’,theonlyavailabledesignation,whichwillbereflectedbothonthetradelicenceandresidencyvisa,isGeneralManager.

82. DirectorsunderthecompanyneedtobeappointedviaaBoard/ShareholderResolution,pleasecontactusifyourequireassistanceonthis.

Schedule2DubaiDepartmentofEconomicDevelopment(DED)

CompanyDocuments

1. Theaddendumtothecompanies’MemorandumofAssociationorCivilWorksAgreement(whichever

applicable)canonlybesignedinthenotaryonceTheShareTransferorSharePurchaseAgreementareexecutedandnotarized.

2. The template for the DED Memorandum of Association, Civil Agreement, and Local Service AgentAgreementarestandardandapprovedbytheBusinessIncorporationZonelawyers.Shouldyouwishtomakeanychanges,youmaydraftyourownagreementandsendtoBusinessIncorporationZoneforapproval.

3. Business IncorporationZonehasapprovedandthoroughlyreviewed legaldocumentsdraftedbyourlawyerstosafeguardthe interestsofboththeclientsandsponsors.Theseagreementsaretheonlyonesoursponsorwillreadilysign.Shouldtherebeanyadditionallegaldocumentsyouwishforustosignoryouwishtoapplychangestoourexistingtemplates,applicable legalfeeswillbechargedforthereviewofthesameandthiswillbebornebytheclients.

4. The Memorandum of Association is and should be in compliance to Law No. 2 of 2015 of theCommercialCompaniesLawoftheUAE.

5. OurPROservicesforobtainingthetradelicenceandforanyamendmentsthereofentailstheuseoftheBoardResolution,PowerofAttorney,MemorandumofAssociation,andSaleTransferAgreementformatwhichhavebeenpre-approvedbyour lawyersandsponsors.Shouldyouwishtoutilizeyourown templates, You may use your own templates but please note these may be rejected by thegovernmentauthoritiesandBusiness IncorporationZoneorBusinessIncorporationZonewillnotassistduringthenotarysigning.

6. Nocompany-specificpowerofattorneyscanbeexecuteduntilandunlessthetradelicenceisissued.

7. Ifyouwishtoincludeadditionalconditionstothestandardlabourcontract,thisshouldbementionedbeforehandsothatitcanbeintegratedtotheJobOffer.Theemployercaninclude5moreconditionstothestandardJobOfferaslongastheseconditionsareshort,concise,submittedinwriting,typedinEnglishandArabic,andalltheconditionsareinaccordancewiththeUAElabourlaw.KindlynotethatthesewillbesubjecttotheapprovaloftheMinistryofLabour.

8. IfyourequireaSupplementaryAgreementwithoursponsor,astandardformatisprovidedandifyourequireamendments,youmayprepareaseparateAgreementasyoudeemnecessarybutwithoutourassistance.


PaymentsandFees

9. Shouldyouwishtobringinyourownlocalsponsor/localserviceagents,therelevantgovernmentfeesmustbepaidupfrontandwillnotbeadvancedbyBusinessIncorporationZone.

10. PROFeespaiduponsignupisonlyforthecompanyincorporationanddoesnotincludePROfeesforanysucceedingapplicationssuchastheimmigrationcard,labourfile,P.O.Boxandvisaapplications.

11. ApplicablePROfeesstartingfromAED3,675willbeappliedperamendmentfollowingthereleaseof

theTradeLicence.Thepaymentvoucheramountmayvarydependingontheamendmentmade.

12. Allgovernment fees (suchas forNameReservation, InitialApproval,MOA)paid toobtain theTradeLicencewillbechargedatactual;receiptswillbeprovided.

13. A fee of AED 1,050 will be charged for any changes to bemade towards the joboffer letter andemploymentcontractonceitisgenerated.

14. Sponsorshipfeeispaidannuallyatthetimeofrenewal.

15. AfineofAED10,500willbeimposedforrenewingyourlicenceyourselfwithoutpayingthestipulatedannualsponsorshipfees.

16. ForDubaiDED-CoworkingPlatinumPackages,thestandardGovernmentFeesforthePaymentVouchercoveredunder thepackageareAED10,500.Anyamountwhatsoeverbeyond this for the finalPaymentVoucher,willbecoveredinfullbytheclient,priortothelicensebeingreleased.

Timelines

17. Applicationsreceivedafter1:00pmaresubmittedforprocessingthenextBusinessDayandindicatedtimelinescommenceuponrealisationofpayment.

ImmigrationCard

18. TheImmigrationcardisforthepurposesofobtaininganemploymentvisa,EtisalatorDuConnection.

CompanySet-UpAndStructure

19. Theownershippercentagemustbeawholenumber.

20. TheTradeNameReservationCertificatewillonlybevalidforsix(6)monthsandmustberenewedrepeatedlyuntilthetradelicenceisreleased.

21. Forsecurityapprovals,thebankstatementsmustillustratecapabilitytoconductbusinessintheUAE.

22. Thecompanynamecannotbeofacountry.Familynamesshouldnotbeusedasatradenameunlessitincludesthefirstname.

23. Thebusinessactivityshouldbereflectedinthetradenameasasuffix.

24. ForGeneralTradinglicensedactivity,itneedstobeprocessedasanInstantLicence.

25. Theword“international”cannotbeusedasaprefixtothecompanyname.Furthermore,thewords“gulf”,“group”(subjecttoDEDapproval),andCompany(COwillbeaccepted)cannotbeused.

26. Tradenamesshouldcontainmorethantwoletters.

27. Kindly note that youwill need to provide a DEWA Bill or a DEWA Security Deposit receipt in order toobtain the payment voucher if you are applying for a new licence, amending the location of yourcurrent licence, or when renewing your licence on a shared location/office (for example, businesscentres).

28. Incaseswherethecompanybeingincorporatedisabranch,theinitialapprovalprocessshouldfirstbecompletedbeforereservingthetradename.

29. TheInitialApprovalCertificatewillonlybevalidforsix(6)monthsupondateofapproval.However,youhavetoprovidetheleaseagreementandEJARIcertificatewithinthirty(30)daysofthereleaseofInitialapprovalasdelayswillaffecttheabilityofthelocalsponsortoopennewcompanies.


30. TheleaseandEjaricertificateneedtoberegisteredunderthenameasapprovedbyDEDbyvirtueoftheInitialTradeNameReservationCertificate.

31. A sole establishment company cannot be a shareholder of or form a subsidiary of its company in theDubaiDepartmentofEconomicDevelopment(DED).Itwillalsonotbepossibleforittoformabranchoforarepresentativeofficeoftheparentcompany.

32. Forprofessionallicences,somesectors/activitiesarerestrictedtoownershipofUAEnationals.

33. Theremaybeadditionalfeesforadditionalbusinessactivitiesaddedonthesamelicence.

34. FreezoneandoffshorecompanieswithintheUAEmayown49%ofacommerciallicence.

35. DEDwillacceptaleaseagreementfromanyfreezoneauthorityifthatfreezonewillissueaNoObjectionCertificate.EachfreezonehasthediscretiontoapprovetenancytoaDEDlicence.

36. ToensurethatyourLease/TenancyContractwillbeacceptedbytheDED,pleasefurnishusacopyofyouraffectionplanforapprovalbeforeenteringintoacontract.

37. Should there be an increase in the Share Capital requirement of the company, the annual nomineefeeswillincreaseaccordingly.ForeveryAED100,000increase,thesponsorshipfeewillincreasebyAED5,250.

38. If you require external approvals, an additional AED 3,150 PRO fee will be charged on top of thegovernmentcosts.Furthermore,thiswillalsobeapplicableifanexternalapprovalwillberequiredatthetimeofyourlicence’srenewal.

39. Forprofessionallicences,allshareholderswillberequiredtosubmitarelevantdegree(attested)togetherwiththeirexperienceletterandCV.

40. A DTCM letter/request addressed to the Dubai Police will be required to obtain a Certificate of GoodStandinginsettingupatourismlicence.

41. Consultancy licences cannot have Limited Liability as its legal status (LLC) except in cases where thebusinessactivitiesrequireanexternalapprovalwhichdictatesthattheactivitymustbeanLLCstatus(i.e.NationalMediaCouncil,Securities,andCommoditiesAuthority).

42. Before the Dubai Department of Economic Development (DED) issues the Initial approval for ANYconsultancy licence, theshareholderswillhavetogothroughanautomaticsecurityapprovalwhichwilltakeapproximately7businessdaystocomplete.

43. Anybusinessactivitythatfallsundertheactivitygroupof"ContractingandBuildingWorks"requiresthelocalsponsortobeexclusivetothatcompany(meaning,itcannotsponsoranothercompanywithinthesameactivitygroup).

44. Following receipt of the preliminary approval from the DED, the appropriate commercial rentalagreementsforproposedpremisesmustbeprovided.ShouldtheLeaseAgreementandEJARICertificatenotbeprovidedwithin1monthoftheinitialapproval,thereisanadditionalPROfeeofAED3,150further.

45. YouwillbemetwithaBusinessIncorporationZoneseniorgovernmentliaisonofficerwhoholdsthePowerofAttorney (POA) to sign inbehalfofBusiness IncorporationZone for the company incorporation.ThisIndividualdoesnotholdanyinterestintheCorporateentity.

46. YouneedtoinformBusinessIncorporationZoneifyouwillbeopeningabranchofyourcompanywhichBusinessIncorporationZoneoranyofitsUAENationalsponsors/agentsisasponsororagentto.FailuretodosowillresultinafineofAED35,000.Furthermore,ontopofthefines,thesponsorship/agentfeeswillneedtobepaidperbranchwhichwillbesetup.

47. If you wish to make amendments to the structure/business activity once the process has alreadycommenced,thereisanadditionalPROfeeofAED8,400.

48. External approvals may take longer than the usual timelines depending on the government authorityinvolvedandalsobedependingonthenationalityoftheshareholder/s.

49. External approvals are based on the discretion of the government authority and the role of BusinessIncorporationZoneistoensurethatthecorrectrequirementsarefiled.Thereafter,BusinessIncorporationZonewillfollowuponaregularbasisbutwillhavenoinfluenceonthegrantingofapprovals.

50. If yourbusinessactivity requiresanexternalapproval fromanyexternalgovernmentauthorities (DubaiMunicipality,KHDA,etc.),theexternalgovernmentauthoritymayoverturnthetradenameapprovedby


the Dubai Department of Economic Development and theywill approveyoursecondor thirdnameoption. In thiscase, the nameamendmentmustbeapplied inDEDandtheappropriatefeesmustbepaid.

51. InordertosetupacompanywithManagingOfficeasitsbusinessactivity,you’llneedtohaveat least3branchesofthesamecompanyintheUAE.

52. DubaiMunicipalitywill require companieswhowill become shareholders in aConstruction/Contractingbasedcompanytohaveatleast3buildingcompletioncertificatestoobtaintheirapproval/NOC.

53. AcompanywithaLimitedLiabilityStatuscannotbeamendedtochangethelegalstatustoeitheraCivilCompanyoraSoleEstablishment.

54. Incaseofsettingupabranchofaforeigncompanywitharealestateactivity,theparentcompanyshouldbe existing and in operation for at least 5 years with the same nature of business (i.e. Real EstateBrokerage,RealEstateConsultancy,etc.).

55. ShouldanyofthepartiesfailtoappearattheNotaryPublicwithin30minutesoftheassignedtime,are-schedulingwillberequired.Ano-showfeeofAED1,050willbeimposedontheclient.

56. Forthepaymentvoucher,thelicensingandemployeeaccommodationallowancecanbereducediftheshareholders/managerssubmittheirEJARICertificate(intheirname)andtherecentpaidDEWABill.

57. Thoughyouareleasingyourofficefromabusinesscenter,youwillstillneedtopayforthemarketfees(2.5%ofthelease)statedinthePaymentVoucherfromDED.

58. If you are taking up a lease from a hotel or a shell & core office, you should first confirm with thelandlord/real estate developer/real estate broker that an Ejari Certificate can be obtained for thepremises.

59. Inordertoopenthecompanylabourfile,aP.OBoxmustbeopenedandreflectedonthecompanyTradeLicence.

60. If thecompany ispartiallyorwhollyownedbyanother corporateentityandhasbeen incorporated formore than one year at the time of the DED set-up, an attested updated Certificate of Incumbency orCertificateofGoodStandingwillberequired.

61. OurPRO servicesdonot cover assistance in filingor appearingbefore theMinistryof LabourorDubaiCourtsforanylabourrelateddisputes/cases.

62. Itistheemployer'sresponsibilitytoreportabsconderstothepoliceorimmigrationauthorities,otherwise,theemployerwillbepunishedundermodifiedlabourlawsintheUAE.

63. ThecompanyPOBoxcannotbecancelleduntilandunlessthetradelicencewhichitisattachedtoisalsocancelled.

64. Forprofessionallicences,nocompanyorentitycanbeashareholder.Onceanentityisinvolved,ithastoturnintoaLimitedLiabilityCompany.

65. TheDubaigovernmentwillhavecertaincompliancerequirementsdependingonyourbusinessactivity.DEDandtheresponsiblegovernmentauthoritymayconductrandominspections inyourestablishment.Onoccasion,theinspectormaynotecomplianceissueswhichwillneedtobeaddressed.Pleasemakesuretoadheretoitastheywillimposeapenaltyfornon-compliance.

66. Itwill take15workingdayspost-paymentof theDEDpayment voucher for theamended licence tobeissuedbyDED if theconstitutedamendment is fora100%saleof theestablishmentor if there isa fullchangeintheownershipstructureofthetradelicence.

67. Forprofessional licences,DEDrequires thedegreeof theowner/manager tobe related to thebusinessactivity.Otherwise,itisDED’sprerogativetodenyanapplicationiftheyfeelthatthequalificationsdonotfittheactivity.

68. BusinessIncorporationZonewillundertakethedraftingofthenecessaryincorporationdocumentssuchasthe Memorandum of Agreement (MOA), Local Service Agent Agreement (LSAA), and Civil WorksAgreement (CWA) as required by Dubai DED. Should youwish to prepare your own agreement, kindlynote that the chargeswill apply, and youwill be responsible for verifying that such document is validagainsttheUAELawsaswellasacceptedbytheNotaryPublicatthetimeofsigning.

69. Ifyouwishtoopenasubsidiaryorhavepartialownershipbyanothercompany,alltheparentcompany


shareholders will need to be present in the Notary Public during theMemorandumsigningunlessanattestedPowerofAttorneyisexecuted.

70. IfaCivilCompanyisestablishedasaSoleEstablishment,onlyonemanagerisallowed.

71. TheminimumshareholdingrequiredtobepresentduringtheGeneralAssemblyforittobeconsideredaQuorumis75%.

72. IfaUAEcompany(freezoneornot)isalreadyregisteredasabranchintheUAE,itisnotpermittedtobeashareholderinalocalcompany.

73. Theoriginal passport (andEmirates ID forUAE residents)will be requiredat the timeof signing at theNotaryPublic.

BusinessOperations

74. Business Incorporation Zone will merely advise you on your possible business activity but the finaldecisionwillbelefttoyou.

75. IftheDubaigovernmentownsyourofficelease/warehouse,pleaseensurethatyourLandlordiscurrentinpaying the Land Department taxes. If payments are not up to date, it can cause delays in obtainingapprovalfromthePlanningDepartment,whichisessentialinobtainingyourpaymentvoucher.

76. GeneralTradinglicencescannotleaseawarehouseasaprimarybusinesslocation.

Visas

77. IfyouarecurrentlyholdingaUAEresidencevisa,pleaseinformusatthetimeofsetupotherwisethiswillcausedelaysintheprocessandtheinitialapprovalwillnotbeissued.

78. Entrystampsofshareholdersmustbewithinthelastsixmonths.

79. IfyouareofArabdescent(exceptUAEandGCCNationals),youmayberequestedbytheDubaiDEDtoappear in theirofficewithyouroriginalpassport for securityapprovalprior to the releaseof the InitialApproval.

80. If the shareholderdoesnotholdUAE residency, he/shehas to submit a copyof themost recent entrystamptotheUAE(withinsix(6)months).

81. Changeof status (in/out stamp)wouldneed tobe carriedoutprior toproceeding for yourEmirates IDCardRegistrationandMedicalTest.

82. Youneedtosettleallofyouroutstandingtraffic fines foryoutobeabletoprocessyourresidencevisacancellation.

83. Ifyouhaveutilisedthe30-daygraceperiod,youmaybeissuedan“ExitPass”byImmigrationandyouwillnotbeable todoyourChangeof Status inside the country.Hence, youhave toexit (airport toairporttransfer)tocompletetheChangeofStatus.Thisisbasedonthediscretionoftheimmigrationofficer.YouwillbeaskedtopayyouroverstayfinesbyImmigrationuponexiting.

84. Intheeventthatacancellationisrequestedforanemployee'se-visaanditisnotcarriedoutwithina60-dayperiodfollowingthechangeofstatus,thegraceperiodwillbeequivalenttotheremainingdaysofthesaid60daysperiod.Furthermore,ifthe60-dayperiodisexceeded,therewillbeoverstayingfinesofAED25perdayapplicablefromimmigrationandanoutpasswithacostofAED230willbeissued.TheoutpasswouldmeanthattheemployeewouldhavetoexittheUAEimmediately.

85. If an employee's e-visa is converted to a residency visa only after the 60 days period following thechange of status, a penalty of AED 25 per day will be charged by immigration at the time of theresidencevisastamping.

86. Visa applications forwomenapplicantsapplying fornon-degreedesignationsmaybe rejectedand theymaybeaskedforatleastanattestedhighschooldiploma.

87. ThesponsorhastobepresentintheUAEforthedependent’sentryandresidencevisastobeissuedbyImmigration.

88. If you are holding/applying for an employment visa, your visa position needs to be at least that of


whichrequiresanattesteddiplomaordegreeforyoutobeabletosponsordependents.

89. Ifyouareinsidethecountrywithyourdependentsonacancelledresidencevisa,youwillbeabletotraveloutsidetheUAEonlyafterthecompletionofallofyourdependents’residencevisaprocess.

90. Thevalidityofthelease/Ejarisubmittedfordependentsvisasponsorshipshouldbeatleast1year.

91. You’ll need to complete your family’s residence visa stampingprocessprior to applying for thehelper/driver’svisa.

92. The sponsor needs to provide an approved or valid work permit application from the newsponsor/employer to be able to “freeze” the dependents’ residence visas at the time of changingsponsor/employers.Furthermore,thedependents’visasneedtobevalidforatleast3monthstoqualifyforthisservice.

93. TheMinistryofLabourmayattimesrequiresupportingdocuments(i.e.Contracts,Invoices,etc.)tojustifytherequirementforadditionalquotas.Furthermore,theycanalsorequestforanofficeinspectionforthesame.PleaseensurethattherewillbeemployeeswithvalidUAEresidencevisa/workpermitsunderthecompany’ssponsorshippresentintheofficeduringthescheduledinspection.

94. Companies with less than 20 employees shall be given only 5 quotas for mission visa applications bydefault. Additional quotas may be requested by submitting supplementary documents (i.e. Contracts,Invoices,Projects,etc.)butwillbesubjecttotheMinistry’sdiscretiontoapproveorrejecttherequest.

95. For positions which do not require degrees, if the employee did not complete 6 months with thecompany, the employee will get an automatic 1-year ban. However, If the employee completes 6months,therewillbenobanapplicable.

96. Onlyemployeesbetween19yearsofageto65yearsoldcanobtainvisas.

97. Immigration will require the investor/partner to present a 3-month stamped company bank accountstatementifyouapplyforyourinvestor/partnervisathreemonthsfollowingthecompanyincorporation.Similarly, a 6-month stamped company bank account statement will be required if you are applying 6monthspostcompanyincorporation.

98. Immigrationwillonlygrantamaximumof2partnervisasunderthecompany.

99. YouneedtohaveamanagerialpositioninyourvisaforyoutobeabletoenterintoaGCCcountrywithan‘onarrival’visa.

100. Once an employee’s labour card is cancelled, you will only have 30 days to complete yourimmigration/visacancellationotherwiseafineofAED25perdaywillbeimposedfornon-completionofthecancellationprocess.

101. If your licence is issued from Trakhees, it is mandatory that all employees apply for a Labour CardthroughTrakhees.

102. Should youwish for us to assist youwith placing a ban for an employee forwhose visa is going to becancelled,thereisanadditionalPROcostofAED2,625.

103. Ifyoufailyourmedicalexam, itwillnotbetheresponsibilityofBusiness IncorporationZonetoassist inyoursubsequentmedicalexams.Thegovernmentmayrequireatleast3moreexams.Shouldyouwishforustoassist,additionalfeeswillapply.

104. FormaidswhoareSriLankan,Ethiopian,ZimbabweanorIndonesian,apre-medicalwillberequiredfromtheircountryofresidenceandattestedbytheUAEEmbassypriortoapplyingforavisa.

105. IfyournormalpassportwiththeUAEResidencevisahasrunoutofpagesorisexpired,youwillnotbe permittedtoentertheUAEonatemporarypassport.Youwillneedtowaituntilyournew,normalpassportisissuedandthentravelwithboth.

106. If you previously had an Emirates ID Card but no longer have the original you will have to visit theEmiratesIDCardAuthorityinAlBarshaorRashidiyatoobtainanIDnumbercertificatepriortoproceedingwithyourEmiratesIDCardrenewal.

107. If a residence visa is cancelled after its expiry date, an outpass will be issued and a confirmed ticketdepartingwithin5daysafterthecancellationtotheapplicant’shomecountrywillberequired.

108. TheGCCNationalcanonlybeeither,(1)asoleshareholder,or(2)partneredupwithanotherGCC National. Once they bring in a non-GCC national (i.e. a UK national, or a Jordanian) into the


ownership,itwillautomaticallyrequireaLocalServiceAgent.

109. Once thechangeof status isdone,youhave60calendardays tocomplete the residencevisastampingprocess as well as the labour card and contract application, otherwise, there will be a fine of AED1,000 per month imposed by the Ministry of Labour. The client will bear any fines related to delayswithoutfaultofBusinessIncorporationZone.

110. TheMinistryofLabourwillconductanofficeinspectionforeverynewquota/visaapplicationmade.

111. If someoneyouhavehired is foundtobeworkingwithout the residencevisaprocessbeingcompleted,he/shewillbedeportedandtherewillbeafineofAED50,000peremployeeandanAED250,000finetothecompanybytheUAEgovernment.

112. ForcancelledPartnervisas,yourpresencewillberequiredinordertoobtainthedeposit(applicabletooldvisasissueswhenbankguaranteeswerestillimposedonPartners/Investors).

113. Toobtainvisas foremployees,you firsthavetoapply foraLabourFile.Youcannotobtainapproval forLabourFileunlessyoualreadyhaveaDEWABillforyourofficelease.

114. It is nowmandatory for any visa applicant (Investor/Partner/Employee/Dependent) to have a medicalinsurance in place. Immigration now requires a Certificate of Health Insurance/Insurance Card to besubmittedbeforetheresidencevisastampingapplicationcanbesubmitted.

115. If youareholdingan investor/partner visaandanamendment is executed to transfer your shares toacorporateentity,youwillhavetocancelyourresidencyvisaandapplyforanemploymentvisa,unlessyoucanprovidedocumentationillustratingthatyouaretheultimatebeneficiaryoftheparentcompany.

116. Toobtainapartnervisaon thecompany,minimumShareCapital contributionon theMemorandumofAssociationmustnotbelessthanAED48,000.

117. ThefollowingnationalitiesandindividualsborninthesamecountryhavetoundergoaSecurityApprovalinDubaiDEDandas suchare restricted fromapplying forGeneralTrading licence:Palestine, Iraq, Iran,Somalia,Yemen,Syria,Tunisia,Lebanon,Sudan,SouthAfrica,Kenya,Morocco,Afghanistan,StKittsandNevis,Algeria,andNigeria.

118. The nationalities from the following countries should be inside the UAE on a visit or tourist visa toapply for Security Approval: Libya, Tunisia, Afghanistan, Lebanon, Syria, Sudan, St. Kitts andNevis, andMorocco.

119. Thenationalities fromthe followingcountriesshouldbe insidetheUAEonaresidencyvisa toapply forSecurityApproval–Palestine,Iraq,Iran,Somali,Yemen.

120. Ifyouarefromanyofthefollowingcountries–Syrian,TunisianorLebanese,youneedtobeintheUAEwhenapplyingforyourentryvisa.

121. ProcessingofapplicationsfornationalitiessuchasbutnotlimitedtoSyrian,Lebanese,Tunisian,Sudanese,South African, Kenyan,Moroccan, Algerian, Nigerian, Iranian, Iraqi, can take longer than the standardtimelineastheyaresubjecttoImmigrationSecurityApproval.

WPSSystem

122. Wages/salaries of the employee have to be paid through the WPS system at the end of the samemonth in which the employment visa is issued. Non-compliance of this will result to a fine of AED10,500/- imposed by the Ministry of Labour and a block on your company's Labour File, which willdeter you from applying for new employee quotas. Furthermore, the local sponsors are imposing anadditional fine of AED 7,875/- for the inconvenience caused of getting their file blocked as this willmeanthatnoneofthecompaniesundertheirumbrellacanapplyforanyentryvisas,residencestamping,&cancellation.

123. Non-paymentoftheemployees’wagesinfullviaWPSwillresulttoyourLabourFilebeingblockedforatleast3monthsandafineofAED10,000beingimposed.

Employees

124. Newlyhiredemployeesarenotpermittedtoworkuntiltheinitialapproval(workpermit)isobtainedfromMinistryofLabour.AsignedjobofferthathasbeensubmittedisnotalegaldocumenttostandasproofthatanemployeehasbeenpermittedtoworkbyMinistryofLabour.Asincasesofbreach,thecompanywhohasallowedthispersontoworkwillhavetopayAED50,000foreveryemployeeworkingwithouta


permitandwillbeimposed20blackpoints.

125. ThetimelinesforemployeesthatareofArabdescent/borninArabcountries/holdingpassportsfromArabcountriescanbelongerthanthestandardtimelinesandisdependentonthediscretionofthegovernmentauthorities.

126. Employees of companies that are involved in food handling (i.e. Restaurants, Fruits and VegetableTrading, etc.) will need to undergo a regular Hepatitis vaccine (schedule will be indicated in theVaccinationCardprovidedbyDHA)andapplyforanOccupationalHealthCard.

127. PleasenotethatyouwillberequiredtohaveanofficeforyouremployeesastheMinistryofLabourwilldorandom inspectionsof theofficesyouhaveregisteredduring the incorporation.Failure todosowillresultinahugefineimposedbytheMinistryandyourcompanyandyoursponsor/CREATIVEZONE'sfilebeingblockedintheLaboursystem.Furthermore,BUSINESSINCORPORATIONZONEwillalsofineyouforAED52,500fortheinconvenience.

Business Incorporation in the UAE – General …...various onshore and offshore jurisdictions. 3....

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