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Suite 1901, Level 19, Boulevard Plaza Tower 1. Sheikh Mohammed Bin Rashid Boulevard Email: [email protected] Downtown Dubai, P.O. Box 27363, Dubai, UAE. Website: www.creativezone.ae

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December 2017

DED (DUBAI DEPARTMENT OF ECONOMIC DEVELOPMENT) - Company Set Up Proposal

1.0 Why CREATIVE ZONE?

Looked after by our team of experts - at CREATIVE ZONE you will be looked after by our team of over 105 multilingual experts, who have

been part of the UAE setup industry for over a decade, and have successfully setup over 12,000 companies since our inception in 2010.

A full range of business set-up solutions - we will give you options to help establish your business professionally and cost-effectively in Dubai. We provide a comprehensive service that meets all your requirements in managing the complete incorporation process, from advising on the business activity to the initial approval, up to issuance of your trade license and obtaining residency visas for investors, employees, and even dependents.

Dedicated Account Manager and efficient PRO Services - with our dedication to personalized and efficient customer service, we will assign

you an account manager as soon as you become a CREATIVE ZONE client, who will be your single point of contact and will regularly update

you on the status of all your applications, and always be on hand to answer your queries. Together with our efficient team of PROs

constantly striving to complete your applications in a timely fashion, we remove the stress and hassle usually associated with setting up a

new company and obtaining your UAE residency visa.

Business Support Services of the highest caliber - at CREATIVE ZONE, we have thought of everything to help you launch and grow your new

business and make it a success from the very beginning. We will provide you with Real Estate contacts for your commercial office space.

Furthermore, we hold regular networking events providing you with access to fellow CREATIVE ZONE clients and our network partners,

where you will be able to explore mutual business opportunities and forge new alliances that will give your new business a valuable head

start.

Corporate Sponsorship – CREATIVE ZONE can provide you a UAE Corporate Sponsor as a Nominee partner in your business. All relevant legal

agreements pertaining to the Incorporation process will be prepared by our team.

Convenient and flexible Bank Account opening - as a result of our excellent relationship with Mashreq Bank, your new company Bank

Account will be opened within 2 weeks of you receiving your original company documents.

2.0 Why Dubai Department of Economic Development

Flexibility to do business in any part of the UAE with local and government authorities

No limit on number of visas (depending on the size of the office space)

Office premises anywhere in mainland Dubai

More options on business activities

Fewer nationality restrictions in ownership and visas compared to other jurisdictions

Under the Dubai Department of Economic Development (DED), the main licensing options are:

Option 1. Professional License (Provision of non-physical services e.g. Consultancy)

(a) The establishment of entities formed under the UAE Civil Code which are restricted to carrying out “non– commercial” or civil

activities. The UAE Civil Code entities (may be an Individual Establishment or a Civil Works Company) include promotion of services, skills, and expertise of the individual(s) conducting the business, as well as other related practices that involve the use or investment of intellectual faculties.

(b) Professional companies may be 100% foreign owned. However, it is necessary to appoint a “Local Service Agent” or “Local

Sponsor.”


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(c) To comply with the provisions of UAE law, we propose that one of the local partners of CREATIVE ZONE will act as the Local Service Agent. The nominated Local Service Agent will not have any management authority or financial commitment and he will only act on your behalf to facilitate the trade license and visa processes necessary to complete your trade license. The Local Service Agent Appointment Contract shall regulate the relationship between the two parties.

(d) Depending on the business activity, this can be a LLC (Limited Liability Company) if 51% ownership is given to a UAE National or

Company. For the latter and in certain business activities, the shareholders of the UAE Company must meet the same criteria as the expat partner/s.

(e) Existing companies can only invest in a new Civil Company if they reflect the same business activity as the parent company.

Option 2. Commercial License (Provision of physical services or trading activities)

(a) The establishment of a Limited Liability Company (LLC) in Dubai in accordance with the Commercial Companies Law. This is the

most widely used commercial entity for companies with foreign ownership wishing to conduct commercial activities and trade in the UAE

(b) Each of the partners shall only be liable to the extent of their share capital in the company upon incorporation as stated in the

executed Memorandum of Agreement (MOA). (c) Under the UAE Companies Law, a minimum of 51% ownership must be held by a UAE National (Local Partner), and 49%

ownership will be that of the foreign shareholder. However, the law permits the issuance of constitutional documents for an LLC to contain provisions designed to protect the interests of the foreign minority shareholder, including but not limited to the profits distribution, assets entitlement, appointment of directors/managers, powers of administration, and influence in decision making.

(d) To comply with the provisions of the UAE Companies Law, we propose that CREATIVE ZONE General Trading or a CREATIVE

ZONE recommended UAE national act as your “Local Partner”.

Option 3. Branch or Representative Office

(a) It is stipulated under the UAE Companies Law that 100% foreign ownership is allowed provided that a local service agent is

appointed.

(b) A Branch office is a legal extension of the parent company and is permitted to secure contracts and conduct business activities,

which are similar to those of its parents company subject to the approval of the UAE Ministry of Economy.

(c) A Representative office is established to promote the products and services of its parent company but may not carry out any

trading activity or enter into commercial transactions and deals by itself. The number of employees allowed under this

company is limited to 4.

Note: The initial approval has to be obtained first before making the trade name reservation.

3.0 Documents and Timelines

3.1 Submit and complete the required documentation for the incorporation process* A) Clear coloured passport copies of the expatriate shareholders & managers (must be valid for at least 6 months). B) Copy of Residence Visa and Emirates ID. (If the shareholder & manager do not hold residency in the UAE, a copy of the most

recent entry stamp on the passport and the tourist/visit visa copy are needed). C) No Objection Certificate if the shareholder is holding a current UAE residence visa or if the shareholder is on a dependent visa.

If the visa is under a Free Zone, the NOC must be issued by the Free Zone Authority. D) Relevant Attested Degree certificates for professional licenses, legally translated to Arabic. E) Four (4) passport sized photos with white background for all shareholders. F) Related Experience Letter and CV for professional licenses. G) Signed brief description of the preferred activity. H) WPS Undertaking Letter I) Ejari Undertaking Letter

*The requirements may vary depending on the business activity.


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3.2 If a Corporate Entity is a shareholder:

A) Original Certificate of Incorporation, Memorandum and Articles of Association, Certificate of Incumbency (attested and translated)

B) Board Resolution specifying the opening of a DED company (attested and translated) – contact CZ for a draft C) Power of Attorney to the Manager on the DED trade license (attested and translated) – contact CZ for a draft D) If it is a UAE Free Zone company, the original free zone company documents are required. E) If it is a UAE Free Zone or Offshore company, an NOC has to be issued from the relevant government Authority.

All foreign documents will need to be attested by the foreign office at origin / the UAE embassy at Origin / Ministry of Foreign Affairs in the UAE and legally translated to Arabic as required and further attested by the Ministry of Justice. We can assist in all these processes if required. Note: A sole establishment company cannot be a shareholder of, or form a subsidiary of its company in the Dubai Department of Economic Development (DED). It will not also be possible for it to form a branch of, or a representative office of the parent company. 3.3 Security Approvals

For certain Arab Nationalities, a security approval is required. The shareholders are required to present themselves at Dubai DED with our PRO with the following documents: - Original passport - Original No Objection Certificate (NOC) if there is an existing residence visa - Six (6) months stamped bank statements (If not from a UAE bank, it must be attested by the UAE Embassy of the country of

residence) - Copy of tourist/visit visas if applicable Cost: AED 1,500 The security approval can take approximately 30 business days depending on the government authorities.

3.4 Corporate Shareholders as Local Partner For a Limited Liability Company (LLC), the UAE Commercial Companies Law states that the local partner must hold a minimum ownership of 51%. CREATIVE ZONE can offer you a UAE Corporate Shareholder rather than an individual UAE national to act as a Nominee Partner. The 51% shareholding will fall under this new UAE entity, CREATIVE ZONE General Trading LLC, rather than an individual and the control of the Nominee entity rests with CREATIVE ZONE. The main benefit of having a Corporate Shareholder is succession planning. Companies often worry about coming into the market and selecting a local partner who may leave the UAE, change his mind, or at worst case, pass away during the course of the year leaving the company and it’s shareholders hanging. With a corporate entity, the contractual terms remain in place so it gives more stability to the arrangement than having an individual national being the local partner.

3.4.1 Timelines and Procedure in business days

(The below is applicable to General Trading and Commercial licenses that do not require external approvals)

Day 1 Submit all requirements and make payment for Sponsor / PRO fees.

Day 2 CREATIVE ZONE will submit necessary documents to Dubai DED. Timeline and the Memorandum of Association /Local Service Agent Agreement /Civil Works Agreement(whichever is applicable) draft will be received by the client.*

Day 3 Trade Name Reservation Certificate is obtained. Note: The Dubai DED reserves the right to refuse or amend your company name even after approval.

Day 4 Application will be submitted for the Initial Approval

Day 8 Initial Approval Certificate is obtained

Day 11 Submission of Commercial Lease Agreement and EJARI Certificate to CREATIVE ZONE. **

Day 12 Client approves the final draft of the Memorandum of Association/ Local Service Agent Agreement and/or Civil Works Agreement.

Day 13

If approved by Client, meeting with Local Sponsor/Local Service Agent at Notary Public to sign the incorporation documents. Note: A CREATIVE ZONE Senior Government Liaison Officer who holds the Power of Attorney (POA) to sign in behalf of CREATIVE ZONE for the purposes of company incorporation will meet you at the Notary Public. This Individual does not hold any interest in the Corporate entity. Should any of the parties fail to appear at the Notary within 30 minutes of the assigned time and re-scheduling will be required, a no show fee of AED 1,000 will be imposed.

Day 14

Upon confirmation that the lease is appropriate, the file is submitted to DED for Issuance of Payment Voucher. This will be the license fee of the company.

Day 16 Issuance of Payment Voucher.

Day 16 Trade License is released once payment is made.


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*The legal agreements have been approved by CREATIVE ZONE lawyers and is cannot be amended. Should you wish to make any changes, you will have to draft the agreement with your own lawyers and send it to CREATIVE ZONE for approval.

**Following receipt of the preliminary approval from the DED, the appropriate commercial rental agreements for proposed premises must be provided. Should the Lease Agreement and EJARI Certificate not be provided within 1 month of the initial approval, there is an additional PRO fee of AED 3,000.

Note: Certain business activities require additional approvals from the government agencies. This can result in the timelines being extended by up to 45 days (depending on which government authority) and an additional PRO fee of AED 3,000 will apply, excluding government fees.

The above timelines are based on our past experience. If your chosen business activity requires additional inspections and approvals, timelines will vary according to the government authority involved. 4.0 CREATIVE ZONE Support Services

Introductory service to the Bank Representative for Company Bank Account Set-up

Referral to Commercial Real Estate Agent

Free Company Stamp

Dedicated Account Manager to manage your documents and update you on the status of your applications

Regular Networking and business development sessions with fellow CREATIVE ZONE clients and our network partners

Complete PRO Services for Licensing (document processing) NOTE: CREATIVE ZONE’S support services are independent services provided by CREATIVE ZONE to their clients. These services are not provided by or affiliated with any particular Government authority or type of company license; however they are mandatory requirement for all CREATIVE ZONE clients.

5.0 Pricing

Corporate LLC SPONSORSHIP + CZ Support Services, Year 1 LOCAL SERVICE AGENT + CZ Support Services , Year 1 Initial Payment: Sponsorship: Starting from AED 22,500 + CZ Package: AED 12,500

Initial Payment: Sponsorship: Starting from AED 17,500 + CZ Package: AED 12,500

DED Payment Voucher Fee: AED 15,000 – 18,000** DED Payment Voucher Fee: AED 15,000 – 18,000**

Total: AED 50,000- AED 53,000** Total: AED 45,000-48,000**

Corporate LLC SPONSORSHIP + CZ Support Services, Year 2 LOCAL SERVICE AGENT + CZ Support Services , Year 2

Initial Payment: Sponsorship: Starting from AED 22,500 + CZ Package: AED 7,500 DED Payment Voucher Fee: AED 10,000 – 15,000** Total: AED 40,000-45,000**

Initial Payment: Sponsorship: Starting from AED 17,500 + CZ Package: AED 7,500 DED Payment Voucher Fee: AED 10,000 – 15,000** Total: AED 35,000-40,000**

* Sponsorship fee may vary depending on the business activities and requirements of clients. The sponsorship fee will increase if the number of employees increases to more than 100 and if a LLC company requires credit facilities on the MOA. * Sponsorship fees for Industrial/Manufacturing licenses starts from AED 85,000. * Sponsorship fees for starts from AED 30,000 for Investment companies. * The Memorandum of Association/Local Service Agent Agreement/Civil Works Agreement drafting and notarizing fees will be approximately AED 1,925 (based on a 2 shareholder, AED 100,000 share capital computation). * Payment Voucher for General Trading companies will be approximately AED 25,000 – AED 30,000. * Sponsorship fees, PRO Fees, and License fees are annual and payable upon license expiry. * Upon sign-up, the Name Reservation Fee of AED 660 and Initial Approval Fee of AED 160 must be paid and all actual government payments are invoiced as it is being processed. The client will pay all actual charges to CREATIVE ZONE before any application is made to Dubai DED. * Should an LLC require credit facilities, the company must be able to provide proof of paid up share capital as per the MOA. ** Final Payment Voucher Fees are dependent on the business activity as well as cost of your annual lease (Market Fee is 5%).


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5.1 Commercial Office Space

A commercial lease agreement is a strict requirement to incorporate and operate a trade license under the Dubai Department of Economic Development (DED. This will be required within 11* days of the application but may be provided to a CREATIVE ZONE representative for verification at an earlier time. Specific regulations regarding minimum size, location, and suitability apply (minimum of approximately 200 sq. ft. for Office Spaces, Business Centres, and Shops and 500sq.ft. for a warehouse).Note: the office space requirement may differ depending on the license’s activity.

The office space must be registered under the new company’s name (based on the Initial Trade Name Reservation). Furthermore, it needs to be categorized appropriately according to the type of license you are applying for. For example, a commercial license cannot be registered at an industrial property or vice versa. If the zoning of the property is not matched to the license type, the landlord may file an application to Dubai Municipality to change the classification. Please bear in mind that this will incur additional costs and time. Furthermore, certain business activities will require the lease to be in a “shop” rather than an office space, while other business activities do not allow leasing of warehouses for commercial activities. A general trading license is not allowed to lease a warehouse for it’s primary business address, but may do so for storage and a supplemental lease. We recommend submitting a copy of the affection plan as well the title deed of the location you are looking to lease once the Initial Approval is obtained so that we can check with the Dubai DED whether or not it is appropriate for your chosen business activity before you finalize your contract with the landlord. DED reserves the right to refuse and reject a location. Following receipt of the Initial Approval from the DED, the Lease Agreement and EJARI for proposed premises must be provided. Should the Lease Agreement and EJARI Certificate not be provided within 1 month of the initial approval, there is an additional PRO fee of AED 3,000. Five percent of the annual lease amount will be integrated in the trade license amount. Please see below examples of market fees based on the size and cost of the lease:

AED 9,250 market fees based on an AED 185,000, 226 square feet shop lease AED 7,676 market fees based on an AED 153,250, 3056 square feet warehouse lease AED 4,176 market fees based on an AED 83,520, 516 square meter office lease

*This is an approximate schedule and may be moved if external approvals are required.

5.2 Nominee Agreement CREATIVE ZONE strongly advises that a supplementary Nominee Agreement be executed between Corporate and Individual shareholders to clarify and detail the division of assets, distribution of equity and the commitments and duties each Shareholder is responsible to perform 5.3 Business Activities Our CREATIVE ZONE business advisors will listen to your needs and advise you of the options and possible business activities depending on your requirements. Please note that it is the clients’ responsibility to make a final decision on the activity. CREATIVE ZONE will have no liability over the client operating on the advised activity or in obtaining any subsequent approval based on the chosen activity. 5.4 License Amendments CREATIVE ZONE can facilitate any form license amendment. The amendments can be for shareholders, legal status, business activity, sponsorship/local service agent, and company names. Amendment to the Memorandum of Association: AED 3,500 Amendment to the Activity: AED 5,500 + AED 3,000 (if external approvals are required) Amendment to the Registered Name: AED 5,500 Amendment to the Company Shareholding: AED 5,500/- Note: All costs indicated above are excluding the actual government fees that will be incurred in the amendment process

6.0 Immigration, Labour File, and PO Box (To allow for the application of Visas and Labour Cards)

Electronic Immigration File/Immigration Card* AED 4,960 Gov’t Fees + AED 1,000 PRO = AED 5,960** (5 working days) Labour File AED 2,190 Gov’t Fees + AED 2,000 PRO = AED 4,190(5 working days) Dubai PO Box AED 1,070 Gov’t Fees + AED 500 PRO = AED 1,570(24 hours)***

- The company immigration card is also required for Du and Etisalat connections. - The company PO Box can only be applied for once the Trade License is released. - All PO Boxes must be renewed at the end of each year (December 31) to avoid incurring fines from the Emirates Post. *The Immigration Card is valid for 3 years and the renewal fee is AED 3,960 plus AED 1,000 for PRO Fees. ** The cost for the immigration card application if you are under a different sponsor/service agent other than CREATIVE ZONE General Trading will be AED 5,500 + AED 1,000 PRO = AED 6,500 *** The company PO Box cannot be cancelled until and unless the trade license which it is attached/assigned to has already been cancelled.


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6.1 Visas

6.1.1 Investor/Partner Visa

3 years validity Requirements:

Minimum share capital contribution in MOA must not be less than AED 48,000

Coloured passport copy (more than 6 months validity)

8 Passport sized photos with white background

Visa Application Form (provided by CZ)

Certificate of Health Insurance from a Health Insurance Agency or Health Insurance Card front and back copy Cost:

• AED 5,250 (outside the country)/ AED 5750 (inside the country)* • AED 4,000 for visa renewals*

Timeline: 3-5 working days for Entry Visa (2 weeks if restricted nationality), 3-5 working days for Visa Stamping Note: Immigration will only grant a maximum of 2 partner visas under the company. 6.1.2 Employment Visa

2 years validity Requirements:

Coloured passport copy (more than 6 months validity)

8 Passport sized photos with white background

Visa Application Form (provided by CZ)

UAE MOFA Attested copy of degree certificate for managerial/supervisory designation

Signed WPS Undertaking form (provided by CZ)

For company drivers, a vehicle registered in the company name is required

For previous UAE residents, a cancellation document and previous EID copy is required

Certificate of Health Insurance from a Health Insurance Agency or Health Insurance Card front and back copy

Cost: • AED 7,000 (outside the country) / AED 8,000 (inside the country)* • AED 3,000 refundable deposit upon cancellation of visa – original receipt handed over to client • AED 5,500for visa renewals* • AED1,500 for pre-approval if applicant if over 60 • AED 5,000 work permit fee for applicants over 65

Timeline: 14 business days for the processing of the quota up to the employment visa and5 business days for Visa Stamping Notes:

A fee of AED 990 will be charged for any changes to be made towards the job offer letter and employment contract once it is generated

You will only be able to apply for the next applicant’s quota once the subsequent employee’s application has passed the Ministry of Labour and Security Approval stage.

If someone you’ve hired is found to be working without the residence visa process being completed, there will be a fine of AED 50,000 per employee and an AED 250,000 fine to the company by the UAE government.

Please note that you will be required to have an office for your employees as the Ministry of Labour will do random inspections on the offices you have registered during the incorporation. Failure to do so will result to a huge fine imposed by the Ministry and your company and your sponsor/CREATIVE ZONE's file being blocked in the Labour system. Furthermore, CREATIVE ZONE will also fine you for AED 50,000 for the inconvenience.

Please note that we are legally obliged to keep the applicant notified of all steps and progress reports concerning their visa process

and release the visa and passport directly to them unless they instruct us otherwise. We will not be able to release the passport or

visa to anyone else, including the company owner/s, unless expressly directed to do so by the applicant.

Important Note: If within the last 6 months you have visited Kish, Queshm, or Iran, you will only be able to apply for a UAE Residency Visa 6 months after the date you left Kish or Iran.


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6.1.3 Dependents Visa (spouse/children)

Validity is tied to sponsor’s visa Requirements:

• Original attested birth certificates + translation (for children) • Original attested Marriage certificate + translation • Recent DEWA bill • Original tenancy Contract + EJARI Certificate or Original Title Deed • Original passports if inside the country, copy if outside the UAE • 6 Passport photos each • Dependent VISA has same validity period as sponsor • If sponsor is a partner/investor, six (6) months bank statement is required • Original Emirates ID of the Sponsor • Salary Certificate for the Sponsor • If sponsor is an employee, Labour contract is required

• Certificate of Health Insurance from a Health Insurance Agency or Health Insurance Card front and back copy Cost:

• AED 5,750 each for dependents (wife) / AED 5,000 each for children (AED 3,150 for renewals) • AED 3,000 refundable bank guarantee per dependent if sponsor is an investor

Timeline:

• 3 working days for Entry Visa (2 weeks if restricted nationality), 3 working days for Visa Stamping

6.1.4 Servant (Maid/Nanny/Driver)

Validity is only one year Requirements

Same as dependents requirements

Tenancy Contract and Ejari of a flat with at least 2 bedrooms

To employ a driver, the sponsor must have at least 2 cars registered under his name and has a tenancy contract and Ejari Certificate for a villa

Certificate of Health Insurance from a Health Insurance Agency or Health Insurance Card front and back copy Cost

• AED 9,150 (outside the country) / AED 10,550 (inside the country) • AED 2,000refundable deposit upon cancellation of visa – original receipt handed over to client

Notes:

It is required for the maid/servant to undergo regular vaccinations during the period of the visa validity. Should you wish for us to assist with accompanying the maid/servant to the relevant medical centres, the additional cost is AED 350/-.

You’ll need to complete your family’s residence visa stamping process prior to applying for the servant/ driver’s visa. Timeline:

3 working days for Entry Visa (2 weeks if restricted nationality), 3 working days for Visa Stamping *All fees quoted are inclusive of Medical, ID Card, Change Of Status, PRO Services and Visa Stamping fees. Should you require VIP PRO Service, which will include pick up and drop off in our business vehicle, we can provide this to you for an additional AED 300.

Note: Please note that dependents’ visas needs to be cancelled and can no longer be “frozen” when changing sponsors/employers.

If you are holding/applying for an employee visa, your visa position needs to be at least that of which requires an attested diploma or degree for you to be able to sponsor dependents

6.1.5 Parents Sponsorship

Same as dependents requirements

Sponsorship must be done simultaneously for both parents unless one is deceased or they are divorced (in which case, attested documents are required to prove this)

Attested death certificate required for deceased party

Attested divorce certificate required for divorced couples

At least 2BR is required for the tenancy

An undertaking from the sponsor must be attested by the respective consulate

Visas are only valid for one year

Employee salaries cannot be less than AED 20,000.


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Certificate of Health Insurance from a Health Insurance Agency or Health Insurance Card front and back copy Cost

AED 5,750 for each

AED 5,000 Bank Guarantee for each Timeline:

• It can take up to 10 working days for Entry Visa release (4 weeks if restricted nationality) and 5 working days for Visa Stamping

6.2 Electronic Labour Cards and Labour Contract Only (for staff on dependents visa) Husbands sponsored by their wives are not allowed to apply for e-labour cards and must cancel their visa once employment is gained. Requirements

Passport, visa copy and emirates id copy of sponsor

Passport, visa copy and emirates id copy of applicant

NOC from sponsor

6 passport photos of applicant

Attested degree if managerial designation is required

Employment visa application form Cost: Labour cards AED 2,200 PRO Fee AED 1,300

Timeline: 2 weeks (If you are a shareholder of a company on another VISA – no e-labour card is required) Note: Both parties’ passport and UAE residence visa should be valid for at least 6 months 7.0 Wages Protection System (WPS)

Wages Protection System (WPS) is an electronic salary transfer system that allows companies to pay workers’ wages via financial institutions authorized to provide the service.

The system developed by the Central Bank of the UAE, allows the Ministry of Labour to create a database that records wage payments in the private sector to guarantee the timely and full payment of agreed-upon wages to employees. The Wages Protection Scheme system applies to all private sector companies and complying with this process is mandatory for all your salaried staff each month. Proof of WPS transaction needs to be sent to CREATIVE ZONE by the end of each month

Non-compliance of this will result to a fine of AED 10,000/- imposed by the Ministry of Labour and a block on your company's Labour File, which will deter you from applying for new employee quotas. Furthermore, the local sponsors are imposing an additional fine of AED 7,500/- for the inconvenience caused of getting their file blocked as this will mean that none of the the companies under their umbrella can apply for any entry visas, residence stamping, & cancellation. Note: Wages/Salary of the employee has to be paid through the WPS System at the end of the same month in which the employment visa is issued. Important Notes:

Applications received after 11 am are submitted for processing the next business day and indicated timelines commence upon realization of payment.

All government costs incurred during the process of the company incorporation needs to be paid up prior to processing.

During periods in and around Ramadan, days of mourning, Eid and other National and Religious Holidays the indicated timelines are likely to become subject to delays.

You will be required to settle upfront and in full any pending installments at the time of the cancellation of your license.

All procedures, timelines and costs are valid at the time of going to print, however may become subject to change without notice.

CREATIVE ZONE will merely advise the possible business activity but the final decision will be left to the client.

Should you wish to bring in your own local sponsor/local service agents, the relevant government fees must be paid upfront and will not be advanced by CREATIVE ZONE.

The ownership percentage must be a whole number.

The Initial Name Reservation Certificate will only be valid for 6 months and must be renewed repeatedly until the trade license is released.


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For Security approvals, the bank statements must illustrate capability to conduct business in the UAE.

If you are currently holding a UAE residence visa, please inform us at the time of set up otherwise this will cause delays in the process and the initial approval will not be issued.

The company name cannot be of a country. Family names should not be used as a trade name unless it includes the first name.

The business activity should be reflected in the trade name as a suffix.

The word “international” cannot be used as a prefix to the company name. Furthermore, the words “gulf”, “group” (subject to DED approval), and Company (CO will be accepted) cannot be used.

Trade names should contain more than two letters.

Kindly note that you will need to provide a DEWA Bill or a DEWA Security Deposit receipt in order to obtain the payment voucher if you are applying for a new license, amending the location of your current license, or when renewing your license on a shared location/office (ie Business Centers, etc.)

In cases where the company being incorporated is a branch, the initial approval process should first be completed before reserving the trade name.

The Initial Approval Certificate will only be valid for 6 months upon date of approval. However, you have to provide the lease agreement and EJARI certificate within a month (30 days) of the release of Initial approval as delays will affect the ability of the local sponsor to open new companies.

The lease and Ejari certificate needs to be registered under the name as approved by DED by virtue of the Initial Trade Name Reservation Certificate.

If the shareholder does not hold UAE residency, he/she will have to submit a copy of the most recent entry stamp to the UAE (within 6 months)

A sole establishment company cannot be a shareholder of, or form a subsidiary of its company in the Dubai Department of Economic Development (DED). It will not also be possible for it to form a branch of, or a representative office of the parent company

For Professional licenses, some sectors/activities are restricted to ownership of UAE nationals.

There may be additional fees for additional business activities added on the same license.

Free zone and offshore companies within the UAE may own 49% of a commercial license.

Entry stamps of shareholders must be within the last six months.

DED will accept a lease agreement from any free zone authority if that free zone will issue a No Objection Certificate. Each free zone has the discretion to approve tenancy to a DED license.

To ensure that your Lease/Tenancy Contract will be accepted by the DED, please furnish us a copy of your affection plan for approval before entering into a contract.

If you are of Arab descent (except UAE and GCC Nationals), you may be requested by the Dubai DED to appear in their office with your original passport for security approval prior to the release of the Initial Approval.

Should there be an increase in the Share Capital requirement of the company, the annual nominee fees will increase accordingly. For every AED 100,000 increase, the sponsorship fee will increase by AED 5,000.

If you require external approvals, an additional AED 3,000 PRO fee will be charged on top of the government costs. Furthermore, this will also be applicable if an external approval will be required at the time of your license’s renewal.

For professional licenses, all shareholders will be required to submit a relevant degree (attested) together with their experience letter and CV.

A DTCM letter/request addressed to the Dubai Police will be required to obtain a certificate of good standing in setting up a tourism license.

If the Dubai government owns your office lease/warehouse, please ensure that your Landlord is current in paying the Land Department taxes. If payments are not up to date, it can cause delays in obtaining approval from the Planning Department, which is essential in obtaining your payment voucher.

General Trading licenses cannot lease a warehouse as a primary business location.

Consultancy licenses cannot have Limited Liability as its legal status (LLC) except in cases where the business activities require an external approval which dictates that the activity must be an LLC status (i.e. National Media Council, Securities and Commodities Authority).

Before the Dubai Department of Economic Development (DED) issues the Initial approval for ANY consultancy license, the shareholders will have to go through an automatic security approval which will take approximately 7 business days to complete.

Any business activity that falls under the activity group of "Contracting and Building Works" requires the local sponsor to be exclusive to that company (meaning, it cannot sponsor another company within the same activity group).


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Following receipt of the preliminary approval from the DED, the appropriate commercial rental agreements for proposed premises must be provided. Should the Lease Agreement and EJARI Certificate not be provided within 1 month of the initial approval, there is an additional PRO fee of AED 3,000.

You will be met with a CREATIVE ZONE senior government liaison officer who holds the Power of Attorney (POA) to sign in behalf of CREATIVE ZONE for the company incorporation. This Individual does not hold any interest in the Corporate entity

PRO Services paid upon sign up is for the company incorporation and does not include processing of immigration and labour file and visas.

You need to inform CREATIVE ZONE if you will be opening a branch of your company which CREATIVE ZONE or any of its UAE National sponsors/agents is a sponsor or agent to. Furthermore, the sponsorship/agent fees will need to be paid per branch which will be set up.

If you wish to make amendments to the structure/business activity once the process has already commenced, there is an additional PRO fee of AED 8,000.

External approvals may take longer than the usual timelines depending on the government authority involved and also depending on the nationality of the shareholder/s.

External approvals are based on the discretion of the government authority and the role of CREATIVE ZONE is to ensure that the correct requirements are filed. Thereafter, CREATIVE ZONE will follow up on a regular basis but will have no influence on the granting of approvals.

If your business activity requires an external approval from any external government authorities (Dubai Municipality, KHDA, etc.), the external government authority may overturn the trade name approved by the Dubai Department of Economic Development and they will approve your second or third name option. In this case, the name amendment must be applied in DED and the appropriate fees must be paid.

Dubai Municipality will require companies who will become shareholders in a Construction/Contracting based company to have at least 3 building completion certificates to obtain their approval/NOC.

Applicable PRO fees starting from AED 3,500 will be applied per amendment following the release of the Trade License. The payment voucher amount may vary depending on the amendment made.

The Share Transfer or Share Purchase Agreement needs to first be executed and notarized before the addendum to the companies Memorandum of Association or Civil Works Agreement (whichever applicable) can be signed before the Notary.

A company with a Limited Liability Status cannot be amended to change the legal status to either a Civil Company or a Sole Establishment.

The template for the DED Memorandum of Association, Civil Agreement, and Local Service Agent Agreement are standard and approved by the CREATIVE ZONE lawyers. Should you wish to make any changes, you may draft your own agreement and send to CREATIVE ZONE for approval.

Creative Zone has an approved and thoroughly reviewed legal documents drafted by our lawyers to safeguard the interests of both the clients and sponsors. These agreements are the only ones our sponsor will readily sign. Should there be any additional legal documents you wish for us to sign or you wish to apply changes to our existing templates, applicable legal fees will be charged for the review of the same and this will be borne by the clients.

The Memorandum of Association is and should be in compliance to Law No. 2 of 2015 of the Commercial Companies Law of the UAE.

Our PRO services for obtaining the trade license and for any amendments thereof, entails the use of the Board Resolution, Power of Attorney, Memorandum of Association, and Sale Transfer Agreement format which have been pre-approved by our lawyers and sponsors. Should you wish to utilize your own templates, CREATIVE ZONE will not take responsibility for any rejection from the government authorities and will not assist during the notary signing. CREATIVE ZONE can furnish drafts of the same upon request.

In case of setting up a branch of a foreign company with a real estate activity, the parent company should be existing and in operation for at least 5 years with the same nature of business (ie. Real Estate Brokerage, Real Estate Consultancy, etc.)

Should any of the parties fail to appear at the Notary within 30 minutes of the assigned time and re-scheduling will be required, a no show fee of AED 1,000 will be imposed.

No company specific power of attorneys can be executed until and unless the trade license is issued.

For the payment voucher, the licensing and employee accommodation allowance can be reduced if the shareholders/managers submit their EJARI Certificate (in their name) and the recent paid DEWA Bill.

Though you are leasing your office from a business centre, you will still need to pay for the market fees (5% of the lease) stated in the Payment Voucher from DED

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


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All government fees (such as for Name Reservation, Initial Approval, MOA) paid to obtain the Trade License will be charged at actual. Receipts will be provided.

Change of status (in/out stamp) would need to be carried out prior to proceeding for your Emirates ID Card and Medical.

You will need to settle all of your outstanding traffic fines for you to be able to process your residence visa cancellation.

The Immigration card is not only used for purposes of obtaining the visa but will also be required for Etisalat or Du Connection.

In order to open the company labour file, you must apply for a company PO Box which needs to be reflected on your trade license.

With regards to the introduction to the bank representative by CREATIVE ZONE, this is an introductory service only and CREATIVE ZONE aren’t involved in the process beyond the introduction. After the introduction it is for the client to liaise with the bank representative directly and satisfy the requirements of the bank in order to successfully have their account opened. In order to keep your company bank account active, you will need to visit your bank annually with your original renewed trade license and present it to the bank for sighting, this must be carried out on or before the expiry date of your current Trade License.

If the company is partially or wholly owned by another corporate entity and has been incorporated for more than one year at the time of the DED set-up, an attested updated Certificate of Incumbency or Certificate of Good Standing will be required.

If you have overstayed your 30-day grace period, you may be issued an “Exit Pass” by immigration and you will not be able to do your Change of Status in country and you will have to exit (airport to airport transfer) to complete the Change of Status. This is based on the discretion of the immigration officer. You will be asked to pay your overstay fines by Immigration upon exiting.

Should you be outside the country when the visa is issued, and are not from one of the 48 countries that are granted a visa on arrival, and are entering the UAE on your new entry visa, which will constitute your change of status, please be sure to your airline prior to travelling, as many airlines will need to see a copy of your entry visa prior to travel in order to verify the same and then upload a copy of the visa onto their system, and provide you with an ‘OK to Board’. The same would apply if you are inside the country when the visa is issued, and plan to exit the country with your visa in hand, and then re-enter the UAE by air.

Furthermore when you are entering the country on your new entry visa, please ensure you carry out your eye scan at the airport on arrival, and ensure the immigration official stamps the entry visa as well as your passport. Do NOT enter on your e-gate card.

Once you complete your change of status you will NOT be able to travel outside of the UAE until your passport has been stamped with your residency visa.

In the event that a cancellation will be requested for an employee's evisa and it is not carried out within a 60 day period following the change of status, the grace period will be equivalent to the remaining days of the said 60 days period. Furthermore, if the 60 day period is exceeded, there will be overstaying fines of AED 25 applicable from immigration and an outpass with a cost of AED 230 will be issued. The outpass would mean that the employee would have to exit the UAE immediately.

If an employee's evisa is converted to a residency visa only after the 60 days period following the change of status, a penalty of AED 25 per day will be charged by immigration at the time of the residence visa stamping.

A fee of AED 990 will be charged for any changes to be made towards the job offer letter and employment contract once it is generated

The Ministry of Finance will not issue Tax Residency Certificates to Offshore Companies and Branches of Foreign Companies.

The company PO Box cannot be cancelled until and unless the trade license which it is attached to is also cancelled.

Once change of status is done, you have 60 calendar days to complete the residence visa stamping process as well as the labour card and contract application, otherwise, there will be a fine of AED 1,000 per month imposed by the Ministry of Labour. The client will bear any fines related to delays without fault of CREATIVE ZONE.

The Visa process for certain nationalities may be longer than the timelines indicated above.

If within the last 6 months you have visited Kish, Queshm, or Iran, you will only be able to apply for a UAE Residency Visa 6 months after the date you left Kish or Iran.

Please note that visas issued on the company are exclusively for person/s working for that company. If a company is found to be selling visas and/or a visa holder is engaging in work for another company, the person/s in question are likely to face legal prosecution and deportation

If someone you’ve hired is found to be working without the residence visa process being completed, he/she will be deported and there will be a fine of AED 50,000 per employee and an AED 250,000 fine to the company by the UAE government

If you wish to include additional conditions to the standard labour contract, this should be mentioned beforehand so that it can be integrated to the Job Offer. The employer can include 5 more conditions to the standard Job Offer as long as these conditions are short, concise, submitted in writing, typed in English and Arabic, and all the conditions are in accordance with the UAE labour law. Kindly note that this will be subject to the approval of the Ministry of Labour.

Our PRO services do not cover assistance in filing or appearing before the Ministry of Labour or Dubai Courts for any labour related disputes/cases

It is the employer's responsibility to report absconders to the police or immigration authorities, otherwise the employer will be punished under modified labour laws in the UAE.


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The original passport (and Emirates ID for UAE residents) will be required at the time of signing at the Notary Public.

For cancelled Partner visas, your presence will be required in order to obtain the deposit. (applicable to old visas issues when bank guarantees were still imposed on Partners/Investors)

To obtain visas for employees, you will first have to apply for a Labour File. You cannot obtain approval for Labour File unless you already have a DEWA Bill for your office lease.

Non-compliance of this will result to a fine of AED 10,000/- imposed by the Ministry of Labour and a block on your company's Labour File, which will deter you from applying for new employee quotas. Furthermore, the local sponsors are imposing an additional fine of AED 7,500/- for the inconvenience caused of getting their file blocked as this will mean that none of the the companies under their umbrella can apply for any entry visas, residence stamping, & cancellation.

Wages/Salary of the employee has to be paid through the WPS System at the end of the same month in which the employment visa is issued.

Please note that we are legally obliged to keep the applicant notified of all steps and progress reports concerning their visa process and release the visa and passport directly to them unless they instruct us otherwise. We will not be able to release the passport or visa to anyone else, including the company owner/s, unless expressly directed to do so by the applicant.

Newly hired employees should are not permitted to work until the initial approval (work permit) is obtained from Ministry Of Labour. A signed job offer that has been submitted is not a legal document to stand as proof that an employee has been permitted to work by Ministry Of Labour. As in cases of breach, the company who has allowed this person to work will have to pay AED50,000 for every employee working without a permit and will be imposed 20 black points.

Visas are not guaranteed and are subject to immigration approval for certain nationalities.

The timelines for employees that are of Arab descent/born in Arab countries/ holding passports from Arab countries can be longer than the standard timelines and is dependent on the discretion of the government authorities.

Visa applications for women applicants applying for non-degree designations may be rejected and they may be asked for at least an attested high school diploma.

The sponsor has to be present in the UAE for the dependent’s entry and residence visas to be issued by Immigration.

If you are holding/applying for an employee visa, your visa position needs to be at least that of which requires an attested diploma or degree for you to be able to sponsor dependents

If you are inside the country with your dependents on a cancelled residence visa, you will be able to travel outside the UAE only after the completion of all of your dependents’ residence visa process

The validity of the lease/ejari submitted for dependents visa sponsorship should be at least 1 year.

You’ll need to complete your family’s residence visa stamping process prior to applying for the servant/ driver’s visa.

The sponsor needs to provide an approved or valid work permit application from the new sponsor/employer to be able to “freeze” the dependents’ residence visas at the time of changing sponsor/employers. Furthermore, the dependents’ visas need to be valid for at least 3 months to qualify for this service.

You will not be able to proceed for an in-country change of status if the maid/servant/driver is here in the UAE on a tourist visa. They will need to make an airport to airport transfer to do their change of status.

The Ministry of Labour may at times require supporting documents (ie. Contracts, Invoices, etc.) to justify the requirement for additional quotas. Furthermore, they can also request for an office inspection for the same. Please ensure that there will be employees with valid UAE residence visa/work permits under the company’s sponsorship present in the office during the scheduled inspection.

Companies with less than 20 employees shall be given only 5 quotas for mission visa applications by default. Additional quotas may be requested by submitting supplementary documents (ie. Contracts, Invoices, Projects, etc.) but will be subject to the Ministry’s discretion to approve or reject the request.

For positions, which does not require degrees, if the employee did not complete 6 months with the company, the employee will get an automatic 1 year ban. However, If the employee completes 6 months, there will be no ban applicable.

Only employees between 19 years of age to 65 years old can obtain visas.

Immigration will require the investor/partner to present a 3-month stamped company bank account statement if you apply for your investor/partner visa three months following the company incorporation. Similarly, a 6-month stamped company bank account statement will be required if you are applying 6 months post company incorporation.

Immigration will only grant a maximum of 2 partner visas under the company.

You’ll need to have a managerial position in your visa for you to be able to enter into a GCC country with an ‘on arrival’ visa.

Once an employee’s labour card is cancelled, you will only have 30 days to complete your immigration/visa cancellation otherwise a fine of AED 25 per day will be imposed for non-completion of the cancellation process.

If your license is issued from Trakhees, it is mandatory that all employees apply for a Labour Card through Trakhees.


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Should you wish for us to assist you with placing a ban for an employee for whose visa is going to be cancelled, there is an additional PRO cost of AED 2,500.

If you fail your medical exam, it will not be the responsibility of CREATIVE ZONE to assist in your subsequent medical exams. The government may require at least 3 more exams. Should you wish for us to assist, additional fees will apply.

Employees of companies that are involved in food handling (ie. Restaurants, Fruits and Vegetable Trading, etc.) will need to undergo a regular Hepatitis vaccine (schedule will be indicated in the Vaccination Card provided by DHA) and apply for an Occupational Health Card.

It is now mandatory for any visa applicant (Investor/Partner/Employee/Dependent) to have a medical insurance in place. Immigration now requires a Certificate of Health Insurance/Insurance Card to be submitted before the residence visa stamping application can be submitted.

Please note that you will be required to have an office for your employees as the Ministry of Labour will do random inspections on the offices you have registered during the incorporation. Failure to do so will result to a huge fine imposed by the Ministry and your company and your sponsor/CREATIVE ZONE's file being blocked in the Labour system. Furthermore, CREATIVE ZONE will also fine you for AED 50,000 for the inconvenience.

For maids who are Sri Lankan, Ethiopian, Zimbabwean or Indonesian, a pre-medical will be required from their country of residence and attested by the UAE Embassy.

If your normal passport with the UAE Residence visa has ran out of pages or is expired, you will not be permitted to enter the UAE on a temporary passport. You’ll need to wait until your new, normal passport is issued and then travel with both.

If you previously had an Emirates ID Card but no longer have the original you will have to visit the Emirates ID Card Authority in Al Barsha or Rashidiya to obtain an ID number certificate prior to proceeding with your Emirates ID Card renewal.

The CREATIVE ZONE package (Support Services and company registration) is valid for one year starting from the commencement date on the Trade License and both must be renewed annually.

If a residence visa is cancelled after it’s expiry date, an outpass will be issued and a confirmed ticket departing within 5 days after the cancellation to the applicant’s home country will be required.

If you require a Supplementary Agreement with our sponsor, a standard format is provided and if you require amendments, you may prepare a separate Agreement as you deem necessary but without our assistance.

Sponsorship fee is paid annually at the time of renewal.

A fine of AED 10,000 will be imposed for renewing your license without paying the stipulated annual sponsorship fees.

Once license is released, a company may apply to become a member of the Dubai Chamber of Commerce & Industry. Cost is AED 1,750. Commercial Licenses are automatically part of the Chamber of Commerce, you just have to bring your license to the Chamber and they will print out your membership.

If a UAE company (free zone or not) is already registered as a branch in the UAE, it is not permitted to be a shareholder in a local company.

The GCC National can only be either, (1) a sole shareholder, or (2) partnered up with another GCC National. Once they bring in a non-GCC national (ie. a UK national, or a Jordanian) into the ownership, it will automatically require a Local Service Agent.

For professional licenses, no company or entity can be a shareholder. Once an entity is involved, it has to turn into a Limited Liability Company

If you are holding an investor/partner visa and an amendment is executed to transfer your shares to a corporate entity, you will have to cancel your residency visa and apply for an employment visa, unless you can provide documentation illustrating that you are the ultimate beneficiary of the parent company.

The Dubai government will have certain compliance requirements depending on your business activity. DED and the responsible government authority may conduct random inspections in your establishment. On occasion, the inspector may note compliance issues which will need to be addressed. Please make sure to adhere to it as they will impose a penalty for non-compliance.

To obtain a partner visa on the company, minimum share Capital contribution on the Memorandum of Association must not be less than AED 48,000.

It will take 15 working days post payment of the DED payment voucher for the amended license to be issued by DED if the constituted amendment is for a 100% sale of the establishment or if there is a full change in the ownership structure of the trade license.

For professional licenses, DED requires the degree of the owner/manager to be related to the business activity. Otherwise, it is DED’s prerogative to deny an application if they feel that the qualifications do not fit the activity.


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CREATIVE ZONE will undertake the drafting of the necessary incorporation documents such as the Memorandum of Agreement (MOA), Local Service Agent Agreement (LSAA), and Civil Works Agreement (CWA) as required by Dubai DED. Should you wish to prepare your own agreement, kindly note that the charges will apply and you will be responsible for verifying that such document is valid against the UAE Laws as well as accepted by the Notary Public at the time of signing.

If you wish to open a subsidiary, or have partial ownership by another company, all the parent company shareholders will need to be present in the Notary Public during the Memorandum signing unless an attested Power of Attorney is executed.

If a Civil Company Is established as a Sole Establishment, only one manager is allowed.

The minimum required shareholding present during the General Assembly for it to be considered a Quorum is 75%.

If you are a Schengen National and have exhausted the 90 day visit period granted by immigration, you need to exit and be out of the country for at least 90 days before you can re-enter the UAE with a tourist visa.

The following nationalities and individuals born in the same country have to undergo a Security Approval in Dubai DED and as such are restricted from applying for General Trading license: Palestine, Iraq, Iran, Somalia, Yemen, Syria, Tunisia, Lebanon, Sudan, Egypt, South Africa, Kenya, Morocco, Afghanistan, St Kitts and Nevis, Algeria, and Nigeria.

The nationalities from the following countries should be inside the UAE on a visit or tourist visa to apply for Security Approval: Libya, Tunisia, Afghanistan, Egypt, Lebanon, Syria, Sudan, St. Kitts and Nevis, and Morocco.

The nationalities from the following countries should be inside the UAE on a residency visa to apply for Security Approval – Palestine, Iraq, Iran, Somali, Yemen.

If you are from any of the following countries – Syrian, Tunisian or Lebanese, you need to be in the UAE when applying for your entry visa.

Processing of applications for nationalities such as but not limited to Egyptian, Syrian, Lebanese, Tunisian, Sudanese, South African, Kenyan, Moroccan, Algerian, Nigerian, Iranian, Iraqi, can take longer than the standard timeline as they are subject to Immigration Security Approval.

We thank you for your interest in CREATIVE ZONE and look forward to seeing you soon.

CREATIVE ZONE.