Unlocking Opportunities: The DIFC Innovation License for Indian Tech Startups and FinTech Companies for setting up company in Dubai

In a rapidly evolving global landscape, where innovation is the key to staying ahead, the Dubai International Financial Centre (DIFC) has emerged as a thriving hub for technology startups and FinTech companies. Recognizing the potential of Indian tech entrepreneurs and FinTech firms, the DIFC has introduced the Innovation License, offering a streamlined pathway to establish and grow their businesses in the heart of the Middle East.

Question :
For company set up in DIFC Dubai through DIFC Innovation License, which Indian companies can apply for the same ?

Answer :
Indian Entities conducting the following activities are eligible to apply for the Innovation License to open company in DIFC Dubai :

• Software development and implementation.
• Technology research and development.
• Information technology consultancy.
• Internet consultancy.
• IT infrastructure development.
• Portals and online services.
• Computer consultancy.

These eligibility criteria encompass a wide range of technology-driven activities, catering to diverse sectors and innovation specialties.

Costing and Benefits to register company in Dubai DIFC through Innovation license:

Cost of a Dubai Free-zone License DIFC: The cost to register a company in Dubai by obtaining a DIFC Innovation License in DIFC varies depending on the selected package and business requirements. However, compared to traditional licensing options, the Innovation License offers a cost-effective solution for startups and FinTech ventures, with transparent fee structures and minimal administrative burdens. The Innovation License offers numerous benefits to businesses, including:

• A subsidized license fee of USD 1,500 per annum for a period of 2 to 5 years.
• Access to co-working spaces at low costs, facilitating collaboration and networking opportunities.
• Heavily discounted visa options for team members, easing the process of talent acquisition and retention.
• One-time registration fee of USD 100 and a data protection fee of USD 250, making the incorporation process affordable and convenient.

What are the Benefits to set up entity in DIFC Dubai ? and Why Indian Software Startups, FinTech, and Technology Companies Should Consider the DIFC Innovation License ?:

1. Market Access: The DIFC serves as a launchpad for Indian startups and FinTech companies seeking to expand into the MENA region, offering access to a diverse and rapidly growing market.

2. Regulatory Clarity: Entrepreneurs benefit from clear and transparent regulatory frameworks, enabling them to operate with confidence and certainty in a regulated environment.

3. Ecosystem Support: The DIFC ecosystem provides valuable support and resources to startups and FinTech ventures, including access to mentorship, networking opportunities, and industry insights.

4. International Exposure: By establishing a presence in Dubai, Indian startups and FinTech companies can enhance their international visibility and credibility, attracting potential customers, partners, and investors.

5. Innovation Incentives: The DIFC offers a range of incentives and initiatives to encourage innovation and entrepreneurship, including grants, incubation programs, and collaboration opportunities with leading corporates.

   Features of the DIFC Innovation License:

   1. Strategic Location: Situated at the crossroads of Europe, Asia, and Africa, the DIFC provides unparalleled access to markets spanning the globe. Its strategic location offers Indian startups and FinTech companies a gateway to the Middle East and North Africa (MENA) region, fostering opportunities for expansion and collaboration.

   2. Regulatory Support: The DIFC operates within an internationally recognized regulatory framework, providing a conducive environment for startups and FinTech ventures. With a robust legal system and regulatory infrastructure, entrepreneurs can navigate compliance requirements with ease, ensuring business continuity and stability.

   3. Innovation Ecosystem: As a dynamic business hub, the DIFC offers a vibrant ecosystem conducive to innovation and growth. Entrepreneurs benefit from access to a diverse network of industry players, including investors, mentors, and corporate partners, fostering collaboration and knowledge exchange.

   4. Flexible Licensing: The DIFC Innovation License is tailored to the needs of tech startups and FinTech companies, offering a flexible and cost-effective solution for establishing a presence in Dubai. With customizable license options, entrepreneurs can choose the package that best suits their business model and growth trajectory.

   5. Access to Capital: In addition to regulatory support, the DIFC provides access to a wide range of funding opportunities, including venture capital, private equity, and strategic investment. Indian startups and FinTech companies can leverage this capital ecosystem to fuel their expansion plans and scale their operations. In conclusion, the DIFC Innovation License presents a compelling opportunity for Indian tech startups and FinTech companies to capitalize on the growing demand for innovation in the Middle East. With its strategic location, supportive ecosystem, and flexible licensing options, the DIFC serves as a catalyst for growth and success in the region. By leveraging the benefits of the Innovation License, Indian entrepreneurs can unlock new avenues for expansion and establish a strong foothold in one of the world's most dynamic business hubs.

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FAQs on Repatriation of Fund, Taxability and Validity of transaction from UAE to NRE Account in India

Question by Customer -
My Dubai UAE Company has invested in India in my NRE accounts out of the income earned from overseas. Whether this transaction is valid. I am a Director in that Company and have closed all the operations in that company. So amount lying in Companies account is fully transferred to my NRE account. Please update on the taxability and validity of transferring amount from UAE Company to my NRE Account in India.

Answer to the Query
If it was investment by NRI in an Indian company and the same was also reported as FDI with bank, then repatriation of investment is possible. But yes, if the amount is out of reserves (i.e in excess of capital) then first decide the nature of transfer from company to Investor’s NRE Account. As dividend or other professional payments will be chargeable to tax. Treatment of the transaction varies from case to case. A Good Consultant can understand the matter as per your transaction and then can advise on legal ways available  for repatriation.

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Whether an Indian Company buy Residential and Commercial property in Dubai UAE?

Question by Customer -
Whether an Indian Company or UAE Branch of an Indian Company buy Residential or Commercial property in Dubai UAE?

We have recently opened a Branch of one of the Indian Listed Companies in Dubai freezone. Now we are looking to buy the commercial and residential property in UAE. 

So we want to understand if there will be any restrictions or compliances required to be done for purchasing the commercial property in UAE from Indian FEMA Perspective as well as from Dubai UAE Perspective.

Answer to the Query -
From Dubai UAE Laws Perspective -
Yes, Indian companies can buy the Residential and commercial properties in Dubai UAE by opening the Branch or Subsidiary company in Dubai UAE. Indian Companies cannot directly buy properties in UAE. First of all, they need to create a company in Dubai UAE either as a Branch or a 100% subsidiary of Indian Company. Once the company is created in Dubai, then they can buy property in Dubai UAE through their Dubai UAE Entity.

From Indian FEMA Laws Persepctive -
There is a limit specified in the Directives issued by RBI. Indian Companies can buy Properties outside India upto a Maximum Threshold Limit as given under the Directives below -

(i) At the time of setting up of the office, AD Category – I banks may allow remittances towards initial expenses up to fifteen per cent of the average annual sales/income or turnover during the last two financial years or up to twenty-five per cent of the net worth, whichever is higher.

(ii) For recurring expenses, remittances up to ten per cent of the average annual sales/income or turnover during the last two financial years may be sent for the purpose of normal business operations of the office (trading/non-trading)/branch or representative office outside India subject to the following terms and conditions:

a) The overseas branch/office has been set up or representative is posted overseas for conducting normal business activities of the Indian entity;

b) The overseas branch/office/representative shall not enter into any contract or agreement in contravention of the Act, Rules or Regulations made there under;

c) The overseas office (trading / non-trading) / branch / representative should not create any financial liabilities, contingent or otherwise, for the head office in India and also not invest surplus funds abroad without prior approval of the Reserve Bank. Any funds rendered surplus should be repatriated to India.

(iii) The details of bank accounts opened in the overseas country should be promptly reported to the AD Bank.

(iv) AD Category – I banks may also allow remittances by a company incorporated in India having overseas offices, within the above limits for initial and recurring expenses, to acquire immovable property outside India for its business and for residential purpose of its staff.

(v) The overseas office / branch of software exporter company/firm may repatriate to India 100 per cent of the contract value of each ‘off-site’ contract.

(vi) In case of companies taking up ‘on site’ contracts, they should repatriate the profits of such ‘on site’ contracts after the completion of the said contracts.

(vii) An audited yearly statement showing receipts under ‘off-site’ and ‘on-site’ contracts undertaken by the overseas office, expenses and repatriation thereon may be sent to the AD Category – I banks.

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Approach a leading company to get exceptional company formation services

Sometimes corporate people face many challenges in handling work related to company formation and associated things. As a responsible person, you should always understand that even a small error or mistake can put you in big trouble when handling any business responsibility, and you should always remain even more cautious. It is always better to take professional aid from any reputed company to handle work related to company formation so that chances of any mistakes can be reduced at its best level. 

To assist corporate people in the best possible manner, our reputable and leading company i.e. Talreja & Talreja LLC, has been offering many high-standard services such as chartered accountancy, business incorporation, business setup, and Company Formation in UAE to all the business people for the past many years. Our company has registered with the Emirate of Sharjah (U.A.E), so you can rely on our company without having any doubt.

 

When it comes to our Book Keeping Services Dubai, you will find them very useful for your business as our professionals are super talented, qualified, and have very good working experience in this sector. We can also aid you in the company liquidation procedure from start to end in a very professional yet friendly manner. If you have any doubt regarding our flawless services, then you can either directly contact our team members at our number +971-50-4757239 or just drop us an email at info@talrejaandtalreja.com.

 

 For more information, you can visit our website https://www.talrejaandtalreja.com/ or call us at +971-55-4559621

Update on Upcoming Webinars in April 2024 on Dubai & Singapore Countries

We are coming up with  Insightful webinars for our CA & CS Members in the April Month.

Dubai Webinar - 4th April 2024
Time - 12:45 PM to 2 PM IST
Click here to Register for Dubai Webinar.

Singapore Webinar - 18th April 2024
Time - 3 PM to 4:15 PM IST
Click here to Register for Singapore Webinar.

Note -
Members,‎ wishing‎ to learn‎ &‎ make MNC Clients‎ & Tap‎ International Market can join this webinar for upgradation of their skills.

Topics of the Webinar shall be -
a.‎ Costing,‎ Time‎ &‎ Process of‎ Company‎ create in UAE / Singapore
‎b. Basics of VAT‎ /‎ Corporate Tax in UAE & Singapore
c.‎ Why Dubai / Singapore‎ ?‎
d.‎ Bank Account & Visa related knowledge sharing topics.
e. Difference between Mainland‎ &‎ Free‎ zone in Dubai & Golden Visa in Dubai

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How to Open a Bank Account in Dubai UAE - Definitive Guide.

 

After establishing your company and obtaining a UAE resident visa, the next step is to open your business bank account. Opening a bank account for your company in the United Arab Emirates (UAE) is a pivotal step towards establishing a solid financial foundation and accessing a myriad of business opportunities. In this detailed guide, we'll walk you through the process of opening both Freezone and Mainland Company bank accounts in the UAE, including the required documents, types of bank accounts available, and the compelling reasons why having a business bank account is imperative for your company's success.

Documents needed for Company Bank Account Opening:

Basic Set of Documents: -Company’s License Copy, Memorandum -Shareholders Visa, Emirates ID -Home Country Address proof like utility bills

Advance Set of Documents: - Shareholders Background, Experience & Profile (CV) - Savings / Business Bank statements of Home Country - Source of Funds for investing in UAE Company - Business Plan of your UAE Company for future - Target Audiences & Target Countries Audience - Prospective Buyers, Prospective Suppliers, Your Website You may also be asked to provide additional documents depending on the bank you choose. Start Preparing the Details once you apply for License. How much time does it take to open bank account in dubai ? Opening of Bank Account will take minimum 15 Days or More in Dubai. It can also take time of almost 2 months to open bank account. Time for opening bank account depends on bank to bank and also depends on how speedily does you provide the details as required by banks. If you delay in providing details, then your bank account opening will further delay accordingly.

What would be minimum balance of bank account in UAE? Bank Balance in Dubai Banks can be Zero, 5000, 10000 to 500,000 AED. There are some banks in dubai which also offer zero bank balance bank accounts. So No need to maintain bank balance in such type of banks in dubai
Why Does Your Free Zone Company And Mainland Company Need a Bank Account? International investors and companies enjoy complete privacy while opening a corporate bank account. You can easily monitor and manage your company’s expenses, estimate tax liabilities seamlessly, and automate cash in-flow and out-flows. It also assists the owner in distinguishing between business and personal transactions.  When you open a business bank account, you need to provide a company name, the location of your business, the type of business you are running, and the bank account you wish to open. A business bank account also allows you to process your own checks and deposits as well as issue the company cheques.

What are the Benefits of opening a corporate bank account in the UAE?

Opening a company bank account in the UAE is a crucial step towards maximizing your business's financial potential and accessing a plethora of opportunities in the dynamic UAE business landscape.

Dubai is a global hub for banking, and it’s not just because of its size. It is also because of the professional banking services available in the UAE. Dubai is a key location for international banking and is the top destination for banking professionals.

 By understanding the process, required documents, types of accounts available, and the benefits it offers, you can navigate the process with confidence and unlock the full potential of your company's financial resources.

What are the Types of Bank Accounts that can be Opened in Dubai?

Current Account: Ideal for day-to-day business transactions with unlimited deposits and withdrawals.

Savings Account: Suitable for earning interest on surplus funds while maintaining liquidity.

Foreign Currency Account: Facilitates transactions in different currencies, reducing exchange rate risks.

Online Banking Facilities: Most banks offer robust online banking platforms for easy access to account information and transactions.

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Unlock Exclusive Ramadan Benefits for Business Setup in Dubai and Saudi Arabia !

 

As the holy month of Ramadan approaches, Gulf Countries are offering exciting benefits to entrepreneurs and businesses looking to set up their business in Dubai and business in Saudi Arabia. At Talreja and Talreja LLC, we're thrilled to announce these exclusive offers that can help you start your business journey in UAE and business journey in Saudi Arabia with ease and savings.

Dubai, known for its business-friendly environment, is offering a remarkable deal during Ramadan 2024. Entrepreneurs can take advantage of the 1 Visa Lifetime free offer, making it easier than ever to bring skilled talent onboard without the hassle of visa costs. This initiative not only reduces operational expenses but also streamlines the recruitment process, allowing businesses to focus on growth and expansion.

Meanwhile, Saudi Arabia is rolling out an enticing offer of 20% off on the entire company formation cost throughout Ramadan. This significant discount presents a golden opportunity for aspiring entrepreneurs to establish their presence in one of the region's largest economies at a fraction of the usual cost. Whether you're a startup or a seasoned business, this discount can make a substantial difference in your budget planning and investment strategy.

These Ramadan benefits underscore the commitment of Gulf Countries to fostering entrepreneurship and economic growth. By incentivizing company setup in Dubai & Company setup in Saudi Arabia and investment during this auspicious month, authorities are not only supporting local businesses but also attracting international investors seeking lucrative opportunities in the region.

At Talreja and Talreja LLC, we're dedicated to helping you make the most of these Ramadan benefits. Our team of experts is ready to guide you through the entire process, from choosing the right business structure to navigating the paperwork and compliance requirements. With our assistance, you can capitalize on these exclusive offers and set up your business for success in the dynamic Gulf market.

Don't miss out on this limited-time opportunity to avail yourself of special Ramadan benefits for Starting your company in Dubai and Saudi Arabia. Contact us today to learn more about how you can take advantage of these offers and embark on your entrepreneurial journey with confidence. Ramadan Kareem!

Frequently Asked Questions (FAQs)

1. What are the eligibility criteria for availing the 1 Visa Lifetime free offer in Dubai during Ramadan 2024? Are there any specific requirements or restrictions?

There are no criteria. Any Business owner willing to start the Business in Dubai, can take this benefit of 1 Visa Lifetime Free while creating a company in Dubai.

2. Are there any limitations or conditions associated with the 20% discount on company formation cost in Saudi Arabia throughout Ramadan? For example, does it apply to all types of businesses or specific industries?

The offer for 20% discount on company formation in Saudi Arabia is available only for customers planning to do Service based business activities (for service oriented companies)

3. Are there any additional incentives or support programs available for businesses looking to establish themselves in other Gulf Countries during Ramadan, aside from the offers mentioned for Dubai and Saudi Arabia?

No. Offer is currently available only for Creating the company in Dubai and Creating the Company in Saudi Arabia. Offer is available only for registering the company till the end of Ramadan.

4. Will these Ramadan benefits be applicable to businesses looking to set up branches or subsidiaries of international companies in Gulf Countries, or are they exclusively for new startups or local businesses?

Yes. Offer is also available for Creating a Subsidiary Company in Dubai, Creating a Branch office in Dubai, Creating a Subsidiary Company in Saudi Arabia and Creating a Branch office in Saudi Arabia.

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