UAE freezone company renewal process

[yoyodubai]

Hi all,

I'm coming up on my second year here in Dubai and I will soon need to start the renewal process. I used a service provider to set everything up, but I'm no longer working with them due to their pricing (they provide a package which is far more extensive than I need).

Some questions for the community:

- My company is based in IFZA. Can I take care of the renewal process or is it a requirement to use a service provider? I have reached out to a few service providers for quotes. I know @Fred is recommended on here, but not sure he does renewals?

- I currently have an office space at IFZA as this was recommended in order to open a business bank account. As the space is not in use, can I safely change to a flexi desk? I have ejari, live full-time in the UAE and have business and personal bank accounts set up. The company is also VAT registered. In order words, this is a company that has substance.

- I will need to renew my trade license and establishment card. Are both renewed through IFZA, or is the establishment card renewed separately through the Immigration Authority? My visa is valid for three years. Is there anything else I need to consider?

- How far in advance does this process need to be started?

- I got an expo 2020 discount when the company was incorporated. Any chance there will be a Ramadan offer for the trade license renewal?

- Anything else, I should think about?

 

[Jbb1]

You can renew directly with the free zone without any extra fees. Call them and ask.

You can renew with flexidesk only.

All this information can be provided by the free zone directly.

 

[yoyodubai]

You can renew directly with the free zone without any extra fees. Call them and ask

That's great to know. I'll give them a call on Monday.

 

[uplana]

You can renew directly with the free zone without any extra fees. Call them and ask.

wait, you say you don't have to pay any tax in Dubai to renew your company ?

 

[turtle]

You need just call IFZA for renewal. They will take care of license renewal and establishment card renewal. Where did you rent your office space?

 

[yoyodubai]

You need just call IFZA for renewal. They will take care of license renewal and establishment card renewal. Where did you rent your office space?

Good to know! Thanks. Office space was rented through IFZA.

 

[turtle]

Good to know! Thanks. Office space was rented through IFZA.

May I ask how much did you pay and sq?

 

[yoyodubai]

May I ask how much did you pay and sq?

From memory, it was the smallest available unit at the time (13 sqm), around $5K. Prices seem to vary significantly if there's a window and so on. @Fred may be able to provide further context.

 

[turtle]

From memory, it was the smallest available unit at the time (13 sqm), around $5K. Prices seem to vary significantly if there's a window and so on. @Fred may be able to provide further context.

Ok you rented physical office space that's why the price is high. You should renew your license + establishment card for around 18K AED. This is the price now.

 

[yoyodubai]

Ok you rented physical office space that's why the price is high. You should renew your license + establishment card for around 18K AED. This is the price now.

Yeah, the plan is to get a flexi desk instead.

 

[Fred]

Hi all,

I'm coming up on my second year here in Dubai and I will soon need to start the renewal process. I used a service provider to set everything up, but I'm no longer working with them due to their pricing (they provide a package which is far more extensive than I need).

Some questions for the community:

- My company is based in IFZA. Can I take care of the renewal process or is it a requirement to use a service provider? I have reached out to a few service providers for quotes. I know @Fred is recommended on here, but not sure he does renewals?

- I currently have an office space at IFZA as this was recommended in order to open a business bank account. As the space is not in use, can I safely change to a flexi desk? I have ejari, live full-time in the UAE and have business and personal bank accounts set up. The company is also VAT registered. In order words, this is a company that has substance.

- I will need to renew my trade license and establishment card. Are both renewed through IFZA, or is the establishment card renewed separately through the Immigration Authority? My visa is valid for three years. Is there anything else I need to consider?

- How far in advance does this process need to be started?

- I got an expo 2020 discount when the company was incorporated. Any chance there will be a Ramadan offer for the trade license renewal?

- Anything else, I should think about?

We only renew in-house companies and start doing so 3 months in advance and recommend to this not later then 2 weeks before License Expiration as it can take 7-10 days till all docs - License, Office and Establishment Card is renewed.

Establishment Card takes the most time as it comes separate from the Immigration Authority.

Not sure if you used a very bad Corporate Service Provider for the Dubai Company Formation or he is no longer in busy but usually a Corporate Service Provider is responsible for such matters.

When the Company was fromed yourself then the Authority is responsible for your Renewal - if you haven't heard from them yet - it's a shortcoming from the Authority side - this is very common and was already discussed many times here in the forum - almost all Authorities are build B2B and you need to have some significant business before you get some dedicated service. Best you call them and make pressure if the earlier mentioned is the case.

How we handle the Renewal Process for our in-house clients is that we provide a Loyality discount which is basically sharing comission received by the Authority with the client. Hence our renewal price is cheaper then going directly with the Authority - this in combination with our Business Bank Account Guarantee - makes it a no-brainer to work with DLS Dubai longterm.

What we have noticed over the time is that a lot of people think they have a price disadvantage when going with a Corporate Service Provider - while this is for sure the case with some out there (you can't avoid black sheeps) - a serious Corporate Service Provider Renewals you on the List Price you would get anyway from the Authority but with the difference you have the levarage of a Corporate Service Provider with a Commercial Interest and several full-time Employees taking care of it and pushing if necessary.

Of course it's very uncommon that a Corporate Service Provider does share Comissions with the Client to achieve a win-win situation as well as that a Corporate Service Provider does refuse the License Renewal for external Companies however this is how we at DLS Dubai work and this is one of the reasons why we had so far almost inly happy clients.

 

[yoyodubai]

We only renew in-house companies and start doing so 3 months in advance and recommend to this not later then 2 weeks before License Expiration as it can take 7-10 days till all docs - License, Office and Establishment Card is renewed.

Establishment Card takes the most time as it comes separate from the Immigration Authority.

Not sure if you used a very bad Corporate Service Provider for the Dubai Company Formation or he is no longer in busy but usually a Corporate Service Provider is responsible for such matters.

When the Company was fromed yourself then the Authority is responsible for your Renewal - if you haven't heard from them yet - it's a shortcoming from the Authority side - this is very common and was already discussed many times here in the forum - almost all Authorities are build B2B and you need to have some significant business before you get some dedicated service. Best you call them and make pressure if the earlier mentioned is the case.

How we handle the Renewal Process for our in-house clients is that we provide a Loyality discount which is basically sharing comission received by the Authority with the client. Hence our renewal price is cheaper then going directly with the Authority - this in combination with our Business Bank Account Guarantee - makes it a no-brainer to work with DLS Dubai longterm.

What we have noticed over the time is that a lot of people think they have a price disadvantage when going with a Corporate Service Provider - while this is for sure the case with some out there (you can't avoid black sheeps) - a serious Corporate Service Provider Renewals you on the List Price you would get anyway from the Authority but with the difference you have the levarage of a Corporate Service Provider with a Commercial Interest and several full-time Employees taking care of it and pushing if necessary.

Of course it's very uncommon that a Corporate Service Provider does share Comissions with the Client to achieve a win-win situation as well as that a Corporate Service Provider does refuse the License Renewal for external Companies however this is how we at DLS Dubai work and this is one of the reasons why we had so far almost inly happy clients.

Appreciate the insight Fred. Thank you.

I worked with a good corporate service provider. They just provide a more tailored service and hence charge more. It made sense when setting up the business, now not so much. So I want to either work with someone else or just manage the process myself.

I wasn't aware of this forum or your services when I started the process last year.

It's more than 3 months before my license expires. As this is a new process, I'm being diligent and gathering intel on how things work.

But yeah, unfortunately, we can't work together since you only renew in-house companies. If you'd like to make an exception, happy to come by and have a quick chat and we can take it from there. If not, all good.

I do have one question, have you had any issues with your clients when it comes to banking if they convert their office to a flexi desk?

 

[Fred]

I do have one question, have you had any issues with your clients when it comes to banking if they convert their office to a flexi desk?

Depends on the Bank and your Risk Category.

You have banks which are fine with the fact that you have settled down in Dubai with Personal Substance and when they categorise your business and your passport as low risk it might work.

However majority of the Banks are looking for office and can do case by case an Office Visit so you should have at least some option on hand should this ever be the case.

 

[yoyodubai]

Depends on the Bank and your Risk Category.

You have banks which are fine with the fact that you have settled down in Dubai with Personal Substance and when they categorise your business and your passport as low risk it might work.

However majority of the Banks are looking for office and can do case by case an Office Visit so you should have at least some option on hand should this ever be the case.

Interesting. Thanks for this. I have a contact at the bank that I'm planning on reaching out to tomorrow. Been using the bank for close to a year, and never had any issues. But past performance is no guarantee of future results.

 

[yoyodubai]

Interesting. Thanks for this. I have a contact at the bank that I'm planning on reaching out to tomorrow. Been using the bank for close to a year, and never had any issues. But past performance is no guarantee of future results.

Hey @Fred, hope you don't mind me tagging you.

Just wondering if you've heard if there are any new developments with IFZA regarding new requirements (dedicated office space, audit, something else?) that may be introduced for free zone companies to remain taxed at 0% following the introduction of corporate tax? Thanks.

 

[Fred]

Hey @Fred, hope you don't mind me tagging you.

Just wondering if you've heard if there are any new developments with IFZA regarding new requirements (dedicated office space, audit, something else?) that may be introduced for free zone companies to remain taxed at 0% following the introduction of corporate tax? Thanks.

Nothing as of now - remains the same.

Any significant new development we communicate with our clients and if required - provide a service around any potential ne requirement - which we don't see as of now.

A lot of noise and everyone has his opinion which is fine but practice point of view there is nothing changing.

 

[yoyodubai]

Nothing as of now - remains the same.

Any significant new development we communicate with our clients and if required - provide a service around any potential ne requirement - which we don't see as of now.

A lot of noise and everyone has his opinion which is fine but practice point of view there is nothing changing.

Appreciate the follow-up. Thank you.

 

[Gamblord]

Can anyone tell me how long the renewal process is? I understand you can pre-book your health check and if you do the thing express it can shave a day off. I am wondering whether the renewal can be done inside the 5 business days or not. I am going to Dubai for 3 business days in January. I was thinking of getting my health check done and then returning in mid February for 5 business days to submit my passport, get the visa, and leave right after. Is this feasible?

 

[JohnLocke]

Since Fred isn't around at the moment any longer I'm sure @EmiratesSetup would be able to help you answering this question and also be able to help with the renewal.