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EZ Cost Calculator: Demystifying Startup Costs for Aspiring Entrepreneurs

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Image of Blog Title "EZ Cost Calculator"

EZ Cost Calculator: Demystifying Startup Costs for Aspiring Entrepreneurs

Samantha Simms

Samantha Simms

Business Setup Advisor

14 May 2024

The entrepreneurial dream often comes face-to-face with a harsh reality: navigating the maze of startup costs. Figuring out legal fees, licensing permits, visas, and other expenses can feel daunting, potentially derailing even the most promising ideas.

EZONE’s cost calculator offers a lifeline, providing a clear and simple tool to estimate your startup expenses according to your specific needs.

User-Friendly Calculator

This user-friendly tool takes the guesswork out of budgeting. By answering a series of questions, you’ll gain valuable insights into:

Illustration of Vintage Coins

Jurisdiction Costs

  • Compare setup costs across different emirates in the UAE, jurisdictions such as Free Zone, Dubai Mainland and even Special Purpose Vehicle (SPV), each with its own unique fee structure.
Illustration of two hands shaking

Business Activity

  • Understand how your chosen industry or activity impacts licensing requirements and associated costs.

Ownership

  • Identifying the number of owners or shareholders will determine your company’s legal structure.
Illustration of Vintage Document

Visa Needs

  • Estimate expenses based on the number of visas required for your team.

Location Factors

  • Depending on the requirements and goals of your business, you may need a physical or virtual office as it can impact the jurisdiction and registration process.

The magic lies in the personalization

Instead of generic estimates, the calculator factors in your unique business vision, providing a realistic and relevant picture of your financial needs. This empowers you to:

Make informed decisions

  • Allocate resources effectively and prioritize spending based on accurate cost estimates.

Secure funding

  • Present investors with a well-researched financial plan, boosting your credibility and chances of securing funding.

Start with confidence

  • Knowing the initial financial hurdles makes the launch process smoother and less intimidating.
Image of EZ Cost Calculator with other illustrations

Beyond the Calculator

EZONE offers a wealth of additional resources to support your entrepreneurial journey. Informative articles, expert insights, and clear explanations equip you with the knowledge to setting up a business in dubai.

So, whether you’re a seasoned entrepreneur with a new venture or a budding business owner taking your first steps, EZONE’s cost calculator is an invaluable tool. Ditch the financial guesswork and unlock the power of informed decision-making.

Remember, the road to success starts with a solid foundation. Let EZONE guide you in building yours, one calculated step at a time.

Email us at hello@dubaibusinesslicense.com or contact us 800-EZONEUAE (39663823).

UAE Essential Guide: Business Set up in Dubai

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UAE Essential Guide: Business Setup in Dubai

Osama Ashraf

Osama Ashraf

Business Setup Advisor

8 May 2024

The United Arab Emirates (UAE) presents a land of opportunity for aspiring and established entrepreneurs, but the landscape isn’t without its challenges. While the government offers significant support for business ventures, navigating regulations, choosing the ideal location, and building a talented workforce can prove tricky. Additionally, competition in the region is fierce, demanding entrepreneurs to constantly innovate and adapt to stay ahead of the curve. Despite these hurdles, the UAE’s strategic location, supportive infrastructure, and diverse market make it a rewarding place to do business for those who can overcome the initial obstacles. In our guide, we equipped you with the essential steps and considerations to stay ahead of the game.

1. Understand the Legal Structure

Dubai provides various legal structures for business entities, each with its requirements and benefits. These include:

  • Free Zone Company: Ideal for foreign investors, offering 100% ownership, tax exemptions, and simplified incorporation procedures within designated free zones like Dubai Multi Commodities Centre (DMCC), Jebel Ali Free Zone (JAFZA), and Dubai Airport Free Zone Authority (DAFZA).
  • Mainland Company: Allows operating within the local market and engaging in commercial activities across the UAE. It requires a local sponsor (UAE national) or a local service agent, with the option of establishing it as a Limited Liability Company (LLC), Public Joint Stock Company (PJSC), or Private Joint Stock Company (PrJSC).
  • Offshore Company: Primarily used for international business and asset protection, offering 100% foreign ownership, tax exemptions, and confidentiality, but with limited ability to conduct business within the UAE.

2. Select the Right Location

The choice of location depends on your business activities, target market, and growth objectives. Free zones are famous for their streamlined processes, while mainland setups provide access to the local market and government contracts. Consider proximity to suppliers, customers, and transportation hubs when selecting a location.

3. Meet Legal Requirements

Regardless of the chosen legal structure, all businesses in Dubai must adhere to specific legal requirements, including:

  • Obtaining necessary licenses and permits from relevant authorities, such as the Department of Economic Development (DED), Dubai Creative Clusters Authority (DCCA), or respective free zone authorities.
  • Registering with the Dubai Chamber of Commerce and Industry (DCCI) and obtaining a commercial license for conducting business activities.

4. Secure Funding and Banking

Ensure adequate funding for your business operations, including capital investment, working capital, and contingencies. Establish relationships with local banks for corporate banking services, including account opening, payment processing, and access to credit facilities.

5. Understand Tax Obligations

Dubai offers one of the most favorable tax environments globally, with a low % corporate income tax rate of 9% within the GCC region. Companies should know about potential indirect taxes, including value-added tax (VAT) and customs duties. These typically amount to around 5% for most goods and services, though some may qualify for a 0% rate or exemption from VAT under certain conditions. Familiarize yourself with the tax regulations and obligations applicable to your business activities.

6. Compliance and Regulations

Stay informed about regulatory changes and compliance requirements relevant to your industry and business operations, which include labor laws, immigration regulations, intellectual property rights, and data protection laws.

7. Seek Professional Assistance

Given the intricacies of the business setup process in Dubai, seeking professional assistance from legal advisors, business consultants, and PRO services can streamline the process and ensure compliance with local regulations. These professionals can provide invaluable guidance on company structuring, documentation, and ongoing support services.

In conclusion, while the UAE presents abundant opportunities, it’s essential to recognize and overcome some of the challenges it presents. By leveraging government support, navigating regulations, and staying ahead of competition through innovation, success in this dynamic market is within reach.

Need support? Contact us at 800 EZONEUAE(39663823) or email us at hello@dubaibusinesslicense.com

Avoid AED 10,000 Fine: Get to Know the Latest Update for UAE Corporate Tax Registration

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AVOID AED 10,000 FINE: Get to Know the Latest Update for UAE Corporate Tax Registration

Sanya Hasan

Sanya Hasan

Business Setup Advisor

6 March 2024

The Federal Tax Authority (FTA) has announced new deadlines for businesses and individuals to register for Corporate Tax in the UAE. These deadlines, outlined in a recent FTA Decision, apply to companies and individuals subject to the Corporate Tax implemented in June 2023.

Key Points:

This user-friendly tool takes the guesswork out of budgeting. By answering a series of questions, you’ll gain valuable insights into:

Company type:

  • Juridical person (company) or natural person (individual)

Residency Status:

  • Resident or non-resident

For companies incorporated before March 1, 2024:

  • The deadline depends on the month your license was issued.
Deadline for submitting UAE Corporate Tax Registration Application
  • Juridical person that has more than one License, the License with the earliest issuance date shall be used.
  • A juridical person that is a Resident Person incorporated or otherwise established or recognized on or after the effective date of this Decision, shall submit a Tax Registration application, in accordance with the following table:
Category for juridical persons

Avoiding Penalties:

Failure to register within the specified timeframe may result in administrative penalties.

To know more, contact us at 800 EZONEUAE(39663823) or email us at hello@dubaibusinesslicense.com

Ramadan in the UAE: A Time of Opportunities for Entrepreneurs​

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Ramadan in the UAE: A Time of Opportunities for Entrepreneurs

Osama Bin Ashraf

Osama Bin Ashraf

Business Setup Advisor

13 Mar 2024

In the United Arab Emirates, Ramadan holds a special place in the hearts of both Emiratis and expatriates. The UAE’s multicultural environment during Ramadan reflects its commitment to tolerance, harmony, and inclusivity. It also presents unique opportunities for entrepreneurs and business owners in the region. Beyond its religious observance, Ramadan offers a distinct business landscape characterized by reflection, community, and opportunity.

Foster a Spirit of Generosity

Ramadan is synonymous with acts of charity, compassion, and giving back to the community. For entrepreneurs, this presents an opportunity to align business activities with philanthropic initiatives. Engaging in Corporate Social Responsibility (CSR) initiatives during Ramadan not only strengthens brand reputation but also fosters goodwill and trust among customers and stakeholders.

Charity w Heart

It’s important to note that businesses undertaking charitable endeavors during Ramadan must adhere to regulatory standards and the safety of their initiatives. Securing approval from the Islamic Affairs and Charitable Activities Department (IACAD) is a prerequisite for any distribution of iftar meals or charity events. Any violation of government regulations may lead to severe penalties, including hefty fines.

Partner Up with Licensed Non-Profit Organizations

To avoid the risk of getting penalized, it’s best to partner up with Licensed NGOs in the UAE.  Dubai is home to a diverse range of NGOs, addressing social, environmental, and humanitarian issues, reflecting its commitment to philanthropy.

Businesses should thoroughly assess each organization to find what best aligns with their company’s vision and goals.

Tap into the Ramadan Market

The month of Ramadan brings about changes in consumer behavior and spending patterns. Entrepreneurs can capitalize on this by offering special promotions, discounts, and tailored marketing campaigns to attract customers. From Iftar gatherings to Suhoor deliveries, businesses can cater to the unique needs and preferences of consumers during this festive period.

Woman checking Ramadan Sale

Embrace a Culture of Reflection and Growth:

Ramadan encourages individuals to engage in self-reflection, personal growth, and spiritual development. For entrepreneurs, this translates into a time for introspection and strategic planning. Use this period to assess business goals, identify areas for improvement, and set actionable plans for growth. Embrace the spirit of renewal and innovation to drive business success in the months ahead.

Practice Flexibility and Understanding:

Recognize that Ramadan may impact work schedules, productivity, and communication channels for employees and clients alike. Embrace flexibility and understanding in accommodating the needs of individuals observing fasting and prayer rituals. By fostering a supportive and inclusive work environment, entrepreneurs can boost morale, productivity, and overall business performance.

Ramadan offers entrepreneurs in the UAE an array of opportunities to engage with their communities, strengthen relationships, and drive business growth. By embracing the values of generosity, reflection, and inclusivity, entrepreneurs can harness the spirit of Ramadan to create meaningful impact and foster sustainable business success.

For any corporate services or guidance, feel free to reach out to EZONE at hello@dubaibusinesslicense.com or contact us at 800 EZONEUAE for expert assistance. Our team is dedicated to supporting you and your business, especially during this Holy Month. 

For more insights into the entrepreneurial journey in the UAE, subscribe to our Newsletter. Stay updated with the latest trends, regulations, and opportunities in the dynamic business landscape to business setup in dubai.

Inspire Inclusion: Celebrating Women and Building a Brighter Future on International Women’s Day

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Women coming together for International Women's Day 2024

Inspire Inclusion:
Celebrating Women and Building a Brighter Future on International Women's Day

Marketing Team

Marketing Team

Inspiring Women in the EZONE Workplace

23 Feb 2024

Every year on March 8th, the world unites to celebrate International Women’s Day (IWD). This year, the theme, “Inspire Inclusion,” carries a powerful message: we must actively work towards a world where women are not just present, but truly included, valued, and empowered.

This isn’t just about celebrating individual achievements, although recognizing the incredible contributions of women across all fields is crucial. It’s about dismantling the systemic barriers that continue to hold women back, whether it’s unequal pay, lack of access to education and healthcare, or gender-based violence.

The theme "Inspire Inclusion" emphasizes two key aspects:

Inspiring Others

Illustration of Pink and Violet Megaphone

This involves raising awareness about the importance of gender equality and challenging discriminatory norms. It’s about creating a culture where everyone understands and values the inclusion of women, not just as a moral imperative, but as a key driver of progress and prosperity.

Inspiring Women

Illustration of Women Coming Together for IWD

It’s equally important to empower women themselves. This means providing them with access to opportunities, resources, and mentorship that enable them to reach their full potential. It’s about fostering a sense of belonging, confidence, and the belief that they deserve a seat at the table in every sphere of life.

Here are some ways we can all #InspireInclusion this International Women's Day:

Advocate for change

Speak up against gender bias and discrimination, whether it’s in the workplace, your community, or online. Support organizations working towards gender equality.

Challenge stereotypes

Be mindful of unconscious biases and actively challenge stereotypes that limit women’s opportunities. Promote positive and diverse representations of women in media and everyday life.

Mentor and empower

If you’re in a position of leadership, actively mentor and support the professional development of women. Create opportunities for women to share their voices and expertise.

Invest in girls' education

Education is the key to empower their success. Support initiatives that ensure girls have access to quality education and empower them to pursue their dreams.

Celebrate diverse stories

Acknowledge and celebrate the achievements of women from all backgrounds, cultures, and walks of life. Their stories inspire us all.

Inclusion is not a one-day event

It’s an ongoing process that requires commitment and action from all of us. By working together, we can create a world where every woman feels included, valued, and empowered. Let’s use International Women’s Day as a springboard to make this vision a reality.

Women doing heart shapes for IWD 2024

Gulfood: A Gateway to F&B Entrepreneurship in the UAE

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Source: Gulfood 

Gulfood: A Gateway to F&B Entrepreneurship in the UAE

Samantha Simms

Samantha Simms

Business Setup Advisor

07 Feb 2024

Gulfood stands as one of the largest annual food and beverage sourcing event in the world – inspiring the future food economy in the United Arab Emirates. It is set to take place in the World Trade Center, Dubai from February 19-23, 2024. With over 5,500 global exhibitors from more than 120 countries expected to attend, the event will focus on transforming global food systems to sustainably feed a growing population amidst challenges like climate change. Topics such as innovations in agricultural technology, artificial intelligence (AI), and reducing food waste will be highlighted at the event. The theme of Gulfood 2024 is ‘Real Food, Real Business’, with over $12 billion in commercial deals typically being sealed at the event.

As an Entrepreneur, consider attending

For entrepreneurs and business owners, Gulfood offers an unparalleled opportunity to gain insights into market dynamics, discover emerging trends, and forge strategic partnerships. The event serves as a melting pot of ideas, where industry leaders share their expertise, paving the way for collaboration and growth. Here are some benefits of attending the event:

Networking Opportunities:

  • Network with established players, ingredient suppliers, distributors, and potential investors. These connections can be the springboard for lucrative partnerships, propelling your business forward and expanding your reach. Imagine the possibilities: collaborating on a revolutionary food tech solution, securing a distribution deal for your artisanal product, or attracting angel investors for your sustainable food concept.

Market Insights and Trends:

  • Gulfood serves as a crystal ball, offering insights into the ever-evolving food industry. Witness the latest trends bubbling up, from plant-based powerhouses to personalized nutrition, and gain invaluable knowledge about consumer preferences and regional demands. Stay ahead of the curve by understanding shifting consumer demands and adapting your business strategies accordingly, ensuring sustained relevance and competitiveness in the ever-evolving F&B landscape in the UAE.

Business Development Opportunities:

  • Explore a myriad of business opportunities, from forging strategic partnerships to securing distribution agreements and sourcing premium-quality ingredients. The event provides a conducive environment for business negotiations and deal-making, enabling entrepreneurs to capitalize on emerging opportunities and expand their market presence both locally and globally.

UAE's Food Service Market Size

The United Arab Emirates Food Service is now becoming one of the most competitive markets in the industry. Its market size is estimated to be USD 19.98 billion in 2024, with a projected growth rate of 17.10% to reach USD 43.98 billion by 2029. The cloud kitchen segment is the fastest-growing among food service types, anticipated to register a value CAGR of 17.34% during the forecast period, driven by the increasing online food deliveries.

Cook up something new!

With all this information, it might be a good idea to start planning your F&B business (if you haven’t already). To help you with your new venture, here are some of the top profitable F&B businesses in the UAE:

  • Restaurant, Bakery, or Cafeteria
  • Cloud Kitchen
  • Food Manufacturing
  • Food Truck
  • Indoor Farming
  • Food Packaging
  • Sustainable F&B Products
Image of man holding open sign of restaurant

Fueling the Flames of Future Foodpreneurs

Remember, the inspiration you’ve gathered is just the first course. The real feast lies in turning your vision into reality. Don’t hesitate to take that first step. 

Our team of experts, are here to guide you through every course, from concept to concrete success for setting up a business in dubai. So, reach out, connect, and let your entrepreneurial flame illuminate. After all, the world awaits your unique flavor – go forth and create your culinary masterpiece!

Year of the Wood Dragon: A Time to Seize Business Opportunities

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Dubai Skyline with the Blog Title The Year of the Wood Dragon

The Year of The Wood Dragon: A Time to Seize Business Opportunities

Ivan Joson

Ivan Joson

Business Setup Advisor

01 Feb 2024

As we embark on a new Lunar cycle, let’s explore the Year of the Wooden Dragon’s impact on entrepreneurship, especially in starting or expanding your business in the UAE. Whether you’re a skeptic or a believer, understanding how the stars might help shape your business can be your guide in making business decisions this year.

What is the Year of the Wood Dragon?

In Chinese cosmology, each year is associated with an element and an animal sign, creating a distinct combination that defines the year’s energy. The Year of the Wooden Dragon brings forth the qualities of wood – symbolizing growth, success, power, and the early stages of development. Dragons are revered for their well-being and favorable luck. Those born in this year may embody dragon-like attributes such as innate leadership, charm, and boundless enthusiasm.
Wood Dragon Graphic

What it means in Business

Understanding the symbolic energies of the Wooden Dragon can be applied strategically in the entrepreneurial realm. The growth and transformative qualities associated with wood mean it aligns with entrepreneurial aspirations. Here’s how the Year of the Wood Dragon can help entrepreneurs boost their businesses:

Abundant Growth:

  •  The Wood Dragon’s energy fosters an environment conducive to growth and expansion, making it the perfect time for entrepreneurs to start a new business or scale up their business ventures.

Innovative Solutions:

  • Entrepreneurs can harness the creative energies of the Wood Dragon to innovate and develop groundbreaking solutions that address market needs and challenges, setting their businesses apart from the competition.

Networking Opportunities:

  • The auspicious energy of the Wood Dragon facilitates fruitful networking opportunities, allowing entrepreneurs to forge valuable connections, partnerships, and collaborations that can drive business growth and expansion.

Long-Term Success:

  • The enduring energy of the Wood Dragon bodes well for long-term success and sustainability in business ventures, laying a solid foundation for entrepreneurs to build upon and thrive for years to come.

What do you do with this?

Entrepreneurs can leverage Feng Shui principles to harness the positive energies associated with the Wooden Dragon. Consider incorporating elements of wood in your workspace, emphasizing greenery and natural materials. Take advantage of the positive energy of the Wood Dragon and start or expand your business.

If you don’t have a business idea in mind, here are some business activities that are expected to be highly profitable in 2024:

  • Manufacturing
  • IT Solutions
  • Real Estate
  • E-commerce
  • Food & Beverage (F&B)
  • Automotive
  • Logistics
  • Consultancy Services
Business Activities

But wait–Don’t just depend on the stars!

While celestial insights can be intriguing, success in business ultimately requires dedication, hard work, and strategic planning. Don’t solely rely on cosmic alignments; instead, use them as inspiration to fuel your entrepreneurial journey. Set clear goals, stay adaptable, and work diligently to achieve the success you desire.

Looking into taking advantage of the Year of the Wood Dragon? Our team at EZONE is here to assist you. Whether you want to start or expand your business in the UAE, our team is ready to provide the support you need. Reach out to us at hello@dubaibusinesslicense.com and let’s bring your entrepreneurial dreams to life in the thriving business hub of the UAE.

The Rise of Q-Commerce: A Booming Industry in the UAE

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Illustration of a Quick Delivery

The Rise of Q-Commerce: A Booming Industry in the UAE

Osama Bin Ashraf

Osama Bin Ashraf

Business Setup Advisor

17 Jan 2024

Image of a delivery sms notification

You’ve likely encountered promotional campaigns from e-commerce companies claiming lightning-fast 15-minute deliveries. While it might sound too good to be true, majority of them actually deliver on time. This type of service that seemed to be impossible is now known as Quick Commerce or Q-commerce.

Understanding Quick Commerce (Q-Commerce):

Q-commerce’s roots stretch back to the early days of food delivery apps like Postmates and DoorDash. Imagine the convenience of a hot pizza delivered in minutes—now extend that to your laundry detergent, pain relievers, or even that emergency birthday card. 

In 2017, with companies like Delivery Hero and Meituan scaling up quick delivery, proving its potential. Then came 2020, a year that redefined everything, including how we shop. Pandemic lockdowns propelled Q-commerce into our kitchens, medicine cabinets, and living rooms.

Today, Q-commerce boasts regional champions: Meituan and Ele.me in China, DoorDash and Instacart in North America, Rappi in Latin America, and Delivery Hero and Gorillas in Europe. According to statistics, the Q-Commerce market in the UAE is anticipated to achieve a revenue of  USD 161.50 million by 2024, empowering local players like Talabat & Careem to build hyper-efficient delivery networks and compete with global giants.

Its Advantages

As the landscape of commerce evolves, business owners and entrepreneurs are increasingly drawn to the advantages offered by Quick Commerce (Q-Commerce) in the UAE. This innovative business model has proven to be a game-changer mainly because of its advantages:

  • Rapid Revenue Generation: Q-commerce facilitates quick and frequent transactions. When managed properly, this can lead to a rapid turnover of products and services, thereby boosting revenue generation.
  • Lower Operational Costs: Most Q-commerce companies operate without a physical storefront. This minimizes their expenses on store rentals, overhead expenses, and other costs that come with maintaining a physical store. Additionally, it relies heavily on streamlined and efficient operational processes, allowing businesses to simply optimize their supply chain, inventory management, and delivery systems, reducing overall operational costs.
  • Enhanced Customer Loyalty: The ability to provide swift and reliable services contributes to higher chances of customer satisfaction and loyalty, fostering long-term relationships with clients.
  • Flexibility: Business models like this are often more adaptable and agile, enabling them to respond promptly to market changes, customer preferences, and emerging opportunities.
Image of a delivery motorcycle

Why is it Thriving in the UAE?

UAE’s lifestyle, characterized by a bustling and fast-paced rhythm, has given rise to the demand for services that are not only efficient but also swift in their delivery. This dynamic shift in consumer expectations has propelled Q-Commerce into the forefront of the business landscape in the UAE. The factors listed below further contribute to the flourishing success of Q-Commerce in the UAE:

  • Instant Delivery: In a 2022 survey, it is concluded that many of the online shoppers in the UAE want same-day deliveries. The fast-paced lifestyle of UAE residents demands instant solutions, making Q-Commerce an ideal platform for its consumers.
  • Convenience: It offers unparalleled convenience, allowing customers to order on their phones or computers and receive products within a short timeframe without the need to visit physical stores.
  • Diverse Product Range: Q-commerce platforms often offer a diverse range of products, from essentials to luxury items, catering to a wide array of consumer needs and preferences.
  • Technological Advancements: Integration of advanced technologies, such as AI and efficient logistics, enhances the speed and accuracy of deliveries
Happy lady ordering food online

As the Quick Commerce revolution continues to reshape the business landscape in the UAE, staying informed about its intricacies and potential benefits can become useful. Embracing the swift, efficient, and customer-centric nature of Q-Commerce can position businesses at the forefront of this booming industry. Understand the dynamics, and gear up for a transformative journey into the future of innovative customer-centered solutions.

Considering establishing your very own Q-Commerce business? Our team at EZONE is here to assist you. Whether you seek expert guidance for setting up your business or need assistance in developing your website, our team is ready to provide the support you need. Reach out to us at hello@dubaibusinesslicense.com for tailored support in establishing and thriving in the dynamic world of Q-Commerce.

Succession in the UAE: Sharia Law V.S. English Common Law

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Image with blog title English Common Law vs Sharia Law in the UAE

SUCCESSION IN THE UAE: SHARIA LAW V.S. ENGLISH COMMON LAW

Ivan Joson

Ivan Joson

Business Setup Advisor

12 Jan 2024

The legal system in the United Arab Emirates (UAE) is a mix of civil law and Sharia law. Sharia law applies to personal status matters and blood money compensation for Muslims, while non-Muslims follow civil law for personal status matters. The UAE constitution established a federal court system, and emirates can also have local courts. Abu Dhabi, Dubai, and Ras Al Khaimah have local courts, while other emirates use the federal court system. Some free zones in Abu Dhabi and Dubai have legal systems based on English Common Law, allowing local businesses to opt for common law courts in business contracts. Currently, there are only two free zones in the UAE that are both operating under English Common Law: Dubai International Financial Centre (DIFC) Court and the Abu Dhabi Global Markets (ADGM) Courts.

Owning and operating a company in the UAE, it’s important to note the significant differences between Sharia Law and English Common Law. The following are a few of its major differences:

LEGAL SYSTEM:

Sharia Law: Sharia law is based on Islamic principles and teachings found in the Quran and Hadith. It encompasses a wide range of religious, ethical, and legal principles.

English Common Law: Common law is based on precedent and decisions made by judges in the past. It relies on judicial decisions and case law to interpret and apply the law.

OWNERSHIP STRUCTURE:

Sharia Law: Sharia-compliant companies adhere to specific Islamic principles, which can impact the ownership structure, decision-making, and financial practices.

English Common Law: In the common law system, companies typically follow a more flexible and familiar Western structure of ownership and management.

REGULATION AND COMPLIANCE:

Sharia Law: Sharia-compliant companies must adhere to Islamic ethics, which can involve adhering to specific financial and contractual structures. Compliance often requires adherence to Islamic financing principles and ethical guidelines.

English Common Law: Common law systems often prioritize contractual obligations and adherence to statutory laws. Regulations are generally more standardized and in alignment with international business practices.

CONTRACTS AND AGREEMENTS:

Sharia Law: Sharia-compliant contracts must adhere to specific principles, such as avoiding interest (riba) and ensuring that agreements do not involve prohibited activities (haram). Contracts may need to be structured by these principles.

English Common Law: English contract law is widely recognized for its flexibility and adaptability. Contracts are typically straightforward and based on the intentions of the parties involved.

DISPUTE RESOLUTION:

Sharia Law: Sharia-compliant dispute resolution can involve Islamic courts (Sharia courts) and scholars who interpret Islamic law. Resolutions are based on Islamic jurisprudence and principles.

English Common Law: Common law systems use courts, arbitration, and alternative dispute resolution mechanisms for resolving disputes. Decisions are based on precedent, statutes, and contractual agreements.

FINANCIAL PRACTICES:

Sharia Law: Sharia-compliant companies must adhere to Islamic financial principles, which prohibit charging or paying interest (riba) and engaging in unethical or haram activities. Islamic banking and financing principles are followed.

English Common Law: Business and financial practices in common law systems typically follow conventional banking and investment practices.

FOREIGN OWNERSHIP:

Sharia Law: Sharia-compliant principles can sometimes influence foreign ownership regulations. Certain sectors may restrict foreign ownership, and in some cases, local partnership or sponsorship may be required.

English Common Law: Common law systems may allow for full foreign ownership or have relatively liberal regulations concerning foreign ownership.

Furthermore, there are both onshore (mainland) and free zone options for setting up a company. Free zones may have their own regulations and are often more flexible in accommodating foreign investors. The application of both Sharia Law and English Common Law in the UAE can vary depending on the specific emirate, type of business, and the company’s location.

Image of man signing document

In the UAE, inheritance blends tradition and choice. Sharia law guides inheritance for Muslims, but non-Muslims can often choose their home country’s laws. Even within Sharia Law, interpretations adapt to modern families and circumstances. This blend ensures inheritance reflects not just old rules, but the diversity of today’s lives.

SUCCESSION UNDER  SHARIA LAW

1. Islamic Inheritance Rules:

Sharia Law prescribes specific inheritance rules known as “faraid.” These rules dictate how a deceased person’s estate, including business interests, should be distributed among heirs. The shares of inheritance are generally fixed based on relationships and the gender of heirs.

2. Non-Testamentary Succession:

Under Sharia Law, a portion of the estate must be distributed to specific heirs, such as children, spouses, parents, and siblings, according to predetermined shares. These shares may vary based on factors like gender, kinship, and the presence of other heirs.

3. Limited Testamentary Freedom:

While Sharia Law allows for some testamentary freedom (one-third of the estate), this portion is subject to certain restrictions and cannot be allocated to heirs who are already entitled to fixed shares under faraid.

SUCCESSION UNDER ENGLISH COMMON LAW

1. Testamentary Freedom:

Common law jurisdictions generally uphold the principle of testamentary freedom, allowing individuals to decide how their assets, including business interests, are to be distributed in their wills. This extends to the shares or ownership stakes in a company.

2. Legal Formalities:

Succession planning and the transfer of business assets are often governed by the legal formalities of wills, trusts, and corporate agreements, such as shareholder agreements. Businesses often have provisions in their governing documents to address succession and the transfer of ownership.

3. Probate And Inheritance Tax:

In common law systems, the probate process is used to authenticate wills, and inheritance tax may apply depending on the jurisdiction. Proper succession planning can help minimize tax liabilities.

In conclusion, navigating the legal landscape of the UAE requires an understanding of its diverse legal systems, from Sharia law to English common law in DIFC and ADGM. It is vital to recognize the importance of clarity and efficiency in legal matters in setting up a business in Dubai.

If you are considering establishing or expanding your business in the UAE, our team at EZONE is here to assist you. With expertise in business setup and comprehensive knowledge of local regulations, we can guide you through the complexities of the legal environment. Contact us at hello@dubaibusinesslicense.com for tailored solutions to meet your business setup needs and ensure a smooth journey in the vibrant business landscape of the UAE.

Key Business Upgrades for Profitable Growth in 2024

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Blog header with title "Key Business Upgrades for Profitable Growth in 2024"

Key Business Upgrades for Profitable Growth in 2024

Osama Bin Ashraf

Osama Bin Ashraf

Business Setup Advisor

03 Jan 2024

The Year of the Dragon of 2024 presents a unique set of challenges and opportunities. As entrepreneurs and business owners in the United Arab Emirates, staying ahead of the curve is essential for sustained growth and success. Let’s delve into crucial considerations tailored for the UAE’s business landscape, offering insights into strategic business upgrades that can propel your business to new heights and achieve profitable growth this year.

I. ELEVATE YOUR ONLINE PRESENCE

The UAE’s dynamic market requires businesses a robust online presence. Elevating your digital footprint goes beyond a mere necessity—it becomes a strategic move for sustainable growth and success in 2024. Here are some reasons why businesses should prioritize and intensify their online presence this year:

  1. Build Credibility: A strong online presence, including a professional website and positive reviews, establishes trust with potential customers who research businesses before making decisions.
  2. Connect Directly with Customers: Build a loyal customer base through meaningful interactions by engaging directly with your audience online.
  3. Adaptability to Trends: Investing in your online presence keeps your business up-to-date with digital trends, ensuring you remain relevant and competitive in the market.

II. EMBRACE A.I. TOOLS

In a tech-savvy environment, integrating AI tools into your business processes is not just an option but perhaps is now a necessity. The era of automation, predictive analytics, and elevated customer experiences are at your doorstep, facilitated by cutting-edge AI-driven solutions. Here are a few online AI tools that could help you with your business in 2024:

  • Notion.so –  is a platform with AI tools that simplifies task management, collaboration, and data organization, offering a solution to enhance workflow efficiency.
  • Chat.OpenAI.com – streamlines communication for businesses, making it efficient and effective in managing copywriting tasks.
  •  Designs.ai – is a user-friendly platform that helps small businesses create professional graphics and presentations effortlessly.

III. STRATEGIC TEAM EXPANSION

As your business grows, bringing in new employees becomes crucial to meet increased workload and demand. Introducing new team members is vital to uphold a consistent flow of order processing and service delivery, contributing to the long-term sustainability of your operations. 

At EZONE, we simplify the employee visa application, guiding you through regulations and ensuring a seamless integration of new talents into your workforce. Navigating the regulatory landscape of the UAE, we facilitate the visa application process, enabling your business to efficiently add new employees according to the jurisdiction you’re established in.

Image of new employee being hired

IV. BE UP TO DATE ON UAE's FINANCIAL UPDATES

Regulatory compliance is vital in the UAE’s business environment. Stay ahead by prioritizing adherence to the UAE’s VAT and Corporate Tax regulations. Proactive adaptation to financial changes not only mitigates legal risks but also positions your business as a responsible and forward-thinking entity in the UAE market.

Adhering to the UAE’s tax laws brings some benefits for your business.

  • Legal Safety: Adhering to UAE tax laws safeguards your business, preventing fines and legal issues.
  • Credibility Boost: Compliance enhances transparency, credibility, and relationships with clients and partners.
  • Cost Savings Opportunity: Aligning with regulations positions your business for government incentives, potential cost savings, and financial stability.
  • Risk Mitigation: By being compliant you reduce risks, ensure legal operation, and avoid reputational damage.

As business owners in the UAE gear up for the dynamic landscape of 2024, these strategic upgrades can serve as a roadmap for you to attain profitable business growth in 2024. We at EZONE stand ready to support you in achieving this with services such as digital marketing to enhance your online presence, seamless new employee visa applications for strategic team expansion, and expertise in ensuring financial compliance with UAE regulations.