Questions & Answers
Questions & Answers
11 available 11 • View allCan a foreign holding company own onshore business in Dubai?

3
Q: I am an expat who purchased a sole proprietorship training company in Dubai onshore. I would like it to be owned by a Holding company outside of the UAE.
Can the Holding own such a company or do I have to change its legal form to something else? And, would that form force me to have lower % ownership?
Thank you.


Apr 2, 2017
991
Setting up online food ordering business in Dubai

2
Q: Hi,
We are a startup in Canada. Our business is online food ordering system that connects customers to restaurants. We receive payments from customers, restaurants and at the same time we pay back money to restaurants. We are planning to operate in Dubai.
Questions:
1 - Do we need to set up a company in Dubai to have a legal agreement with the restaurants or, our Canada branch is allowed to do that kind of legal agreement with local restaurants in Dubai?
2 - Are we allowed (as Canadian Company with Canadian Bank Account), to operate in Dubai, receive and send money from/to restaurants and customers?
3 - In case setting up a company in Dubai is mandatory, in which free zone can we set up the company? DIC, Sharjah, or Fujairah, knowing that we don't have physical delivery inside Dubai?
4 - In case setting a company in Dubai is not required, which court (Canada/UAE) will be in charge of the agreement?
5 - Do you have a lawyer who is specialized in writing online startup contracts?


Oct 23, 2017
2249
VAT registration for a new company in the free zone
3
Q: Dear Mr Elnaggar,
Please, I have just created a company in Ajman Free Zone and I have enrolled for VAT, but it got rejected because I didn't reach the mandatory threshold of AED 187000 and I have to provide evidence.
So, my question is how can I invoice my customer if I don't have VAT number yet? Also, how can I recover the VAT that I m paying to my supplier?
Thanks in advance

Apr 18, 2018
1631
Payment of a commercial invoice with VAT
1
Q: We are purchasing some taxable material from the UAE, and our main contractor agrees to pay this material cost on behalf of us.
So, in which name should the supplier issue the Invoice, the name of our main contractor or our name?
And also please clarify Input Tax Claim method.

Apr 23, 2018
1161
VAT applicability on private passenger transport
3
Q: Is private passenger transport by land taxable in the UAE?

Jul 31, 2018
5381
Application of VAT for UAE based company giving service abroad
2
Q: We want to start a brokerage company in the field of industrial equipment. We are calling to work with Chinese companies.
Is the fee bill that we will establish from Dubai subject to any taxes? If yes, which ones?
Please, can you also send us the legal texts related to these dispositions?

May 9, 2019
755
The right way to charge the ultimate customers for VAT
3
Q: Hi Nikhat,
How are you?
I read your reply on a VAT query and I hope I could get clarification on my confusion as well.
You see we are agents (in business set-up consultancy). Basically, we are dealing with another business set-up consultant rather than going directly with the authority, but we wish not to disclose this to our clients that we are dealing with another business set-up consultant.
Now, my question is that the other consultant charges VAT to us but the invoice is addressed to the ultimate customer name.
So my question is if I charge on top with what they charge, like if their PRO fee is AED 2,000 and, on my side, I charge PRO fee of AED 4,000, should I be charging VAT on the whole AED 4,000 or should I have to break it down and charge only on my top-up since this was not my supply?
Thank you!

Feb 15, 2020
381
The responsibility of the broker if the customer wants to cancel the deal
1
Q: A customer ordered goods via a sale-purchase agreement (SPA), in Kenya. The SPA has a refund and arbitration clause to be processed in Kenya. The goods are currently in transit to DXB.
The customer wants to cancel the deal and, instead of asking for a refund from the company in Kenya, he has filed a case against me in DXB for the refund. I originally introduced the buyer and seller as a broker.
How can I cancel this false case against me? What are the legal implications for me?
No money has been exchanged in DXB; the buyer paid in Kenya directly to the seller (invoice/receipt available).

Oct 18, 2021
318
Can the supplier refuse to pay the VAT on a referral fee invoice and ask me to bear it?



1
Q: Last year I set up a Dubai mainland sole proprietorship company dedicated to interior design. One of the material suppliers I have specified (tiles) for a project agreed to pay me a referral fee of 10% of the end client order.
Now I have invoiced them that 10% + VAT, however, they don't want to pay the VAT. They suggest I deduct it from my own 10% if I am keen to produce a tax invoice featuring VAT.
Is this request legal?




Dec 4, 2024
75
I finished all execution steps. How to prevent the employer from lifting travel ban until paying my dues?



0
Q: My labor implementation case is currently in progress.
Despite taking several steps, such as inquiring about the bank account and blocking the traffic file, my employer has not responded and disregarded the court's decision. As a result, I requested a travel ban, and the court accepted my request.
Now, the employer is actively working to lift the travel ban. He has submitted six requests to the court for its cancellation, arguing that he is a local, the company is an LLC, and he comes from a reputed family.
He also stated that the highest court had declared the travel ban to be a violation of human rights and that the non-payment was due to the company’s financial losses, not the manager’s fault. However, the court rejected his request.
The employer has now filed a grievance with the Execution Circuit for the Court Head.
Could you advise me if there is anything I need to do?
Should I just patiently wait to see how the court proceeds with the case against the company manager?




Dec 19, 2024
52
Should we charge VAT for goods sold from Dubai Silicon Oasis to Umm Al Quwain?



1
Q: Hello,
Kindly advise: We are selling goods and have a trade license from Dubai Silicon Oasis Free Zone, selling to a company in Umm Al Quwain.
Should we add VAT to the invoice?




Dec 21, 2024
80
Legal blog
7 available 7 • View allAn Overview of the Legal Framework for Entrepreneurs in the UAE 4
Over the years the UAE has become a centre of trade and commerce for the Middle East, thanks to its strategic location, excellent connectivity and extensive services to assist with all aspects of business. According to the World Bank's 2016 report, the UAE has ranked 31st in the global index of ease of doing business. This encourages more entrepreneurs to set up different kinds of business entities in the country.
Mar 14, 2017
6308
Importance of Corporate Governance and its Basic Principles 13
It is the first article in a series of articles written by the author to give a better insight to the readers about the corporate governance practices under the best practice principles and the UAE legal system through innovative suggestions of its implementation for your organisation. Next series will be on the UAE regulatory framework on corporate governance.
Jun 26, 2019
3085
The UAE Regulatory Framework on Corporate Governance 7
It is the second article in a series of articles written by the author to give a better insight to the readers about the corporate governance practices under the best practice principles and UAE legal system through innovative suggestions of its implementation for your organisation. Next series will be on Corporate Governance for Non-listed companies.
Jul 4, 2019
2506
Economic Substance Law in the UAE: Ahead with Compliance and Governance 5
Tax evasion is a serious offence on the local and international levels that had to be controlled and regulated with new laws, in an international effort to combat this violation. As a part of the international community, the UAE had issued a law (Cabinet of Ministers Resolution No. 31 of 2019) in the same direction requiring all in-scope UAE entities to have demonstrable economic substance.
Jul 24, 2019
851
Doctrine of Economic Substance in the UAE 3
The introduction of the Doctrine in the UAE brings the UAE in line with other jurisdictions that have recently issued economic substance legislation and affirms the UAE’s commitment to addressing concerns around the shifting of profits derived from certain mobile business activities to “no or nominal tax jurisdictions” without corresponding local economic activities.
Feb 4, 2020
1701
Protecting Your Real Estate Brokerage Firm 3
Did you know that 225 establishments were fined approximately AED 77 million for flouting AML regulations? About, 50 entities’ operations and licenses were put on suspension in 2023-Q3 for failing to register in the goAML system. That’s alarming! Out of the said numbers, many were real estate brokerage firms.
May 9, 2024
168
UAE Launches World’s First E-Commerce VAT Refund System for Tourists 2
Before shipping their online purchases, UAE Tourists can now apply easily for VAT refunds through e-commerce platforms that are registered with the Federal Tax Authority (FTA). To confirm their eligibility at the time of purchase, they can simply provide the specifics of their travel documents and pertinent personal information.
Dec 19, 2024
149
Laws & Regulations
4 available 4 • View allFederal Decree-Law No. (8) of 2017 on Value Added Tax 3
The Federal Decree Law on Value Added Tax (VAT Decree-Law), outlines the tax scope, rate, responsibility for tax, supply of goods and services in all cases, including supply in special cases, supply of more than one component, supply via agent, supply by government entities and cases of deemed supply.
Aug 23, 2017
1729
Federal Law No. (2) of 2015 On Commercial Companies 15
The provisions of this Law apply to the commercial companies established in the UAE and the foreign companies that have established in the UAE a base to conduct any activity therein or established a branch or representative office. The Law abrogates Federal Law No. (8) of 1984 Concerning Commercial Companies.
Mar 25, 2015
29524
Federal Law No. (18) of 1993 Issuing the Commercial Transactions Law 19
This Law applies to merchants, as well as to all acts of commerce carried out in the UAE by any person even though he be not a trader. Commercial matters regarding which specific Federal laws are issued shall be subject to the provisions of such laws, and to the provisions hereof which do not contradict with said laws.
Sep 7, 1993
32998
Cabinet Decision No. (52) of 2017 on the Executive Regulations of the Federal Decree-Law No. (8) of 2017 on Value Added Tax 2
The Executive Regulations set the rules and procedures for implementation of the Federal Decree-Law No. (8) of 2017 on Value Added Tax in the United Arab Emirates. The Regulations define the registration process, zero-rate and exempt supplies, calculation of due tax, tax returns, recovery of excess tax, etc.
Nov 26, 2017
1509

Other answers by
453 453 answers •
View allTerminating an employee after sick leave and claiming compensation 0
Hello,
My employer fired me under Article 44 for not showing up for work for 7 days in a row. But that’s not the case at all. I was sick and the management was aware and they let me go.
I went to another country to get treatment because it’s expensive in Dubai. My employer did not pay me my salary for the month I worked and fired me.
I have official sick leave from another country and there is correspondence where my employer sent me to another country for treatment.
The problem is that the employer says that he will take compensation for the training that was specified in the contract, but I did not undergo training at all; I immediately started work from the first day of work and there was no training.
Does my employer have the right to charge me such a fee and not pay my salary?
Feb 29, 2024
449
How to make the seller hand over the tenant's security deposit to the buyer upon completing a sale? 0
Should the seller in Dubai hand over their tenant's security deposit to the buyer upon completing a sale?
Who is responsible for managing this process?
At the time of the exchange, the broker said he would follow up with the seller and collect the deposit.
He hasn’t, and the seller has not handed over the deposit.
Feb 8, 2024
414
How to deal with in-laws provoking and recording reactions? 0
Dear Sir/Madam,
My husband's family constantly provokes me and then records my every exaggerated reaction.
Now I'm worried that they might use those things against me.
Feb 8, 2024
235
How to cancel the MoU to buy an apartment with the broker if the bank did not approve the loan? 0
Hi,
I have a situation where I signed an MoU and gave my security deposit to the seller's agent. However later, the bank valuation of the property is lower than the selling price.
On my MoU, it has a clause that “the buyer has a right to cancel/negotiate if the bank valuation is not the same as MoU.” I tried to negotiate, however, we didn't agree on the price so I asked to cancel.
Now the agent is threatening me that they will not cancel the MoU and that will deposit my cheque. Later I also came to know that the person I am dealing with is not the same person whose name is mentioned as a broker in the MoU.
The agent I am dealing with is constantly messaging me with threats. I decided not to speak to him and instead, I wrote an email to the broker whose name is mentioned on the MoU but received no response.
I am on a very tight timeline as I need to vacate my apartment in 3 weeks, I found another unit but I don't know if I can pursue this while the initial MoU still not canceled.
Please, I need advice.
Feb 8, 2024
611
Employer asking for visa reimbursement after resignation: do I need to pay? 0
Hello Sir/Madam,
I have already finished my first year with my company and resigned.
My employer is asking me to reimburse the cost of my visa because I did not finish my two-year contract.
Do I need to pay? The cost is 7,000 AED.
Oct 20, 2023
796
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