All about your accounting

Once you set up your business in Dubai one of the essential things you need to look out for is your accounting. Having all of your finances in order has to be one of your main priorities, with this you can improve the growth of your business. Accounting also assists you in many other ways, such as:

• Keeps your financial condition on track
• Helps with decision making
• You'll gather legal evidence
• Preparation of financial statements
  
  

What is accounting?

Accounting is the activity by which your business monitors its financial data. This involves saving and summarizing your financial transaction records by gathering and analyzing that data by performing effective operations.

Accounting plays a significant role in business, it is the reflection of all your company decisions, all of your incomes and spending, and the capacity of your marketing campaigns along with the reach of your sales and more.

For your business to stay organised, you get your accounting in order. This helps you manage your real income and expenses, showing you a realistic situation in how much money you owe to your creditors and how much you need to receive from your debtors.  

What does it look like in Dubai?

Accounting in the United Arab Emirates does look quite different than in other countries that apply taxation. The United Arab Emirates is clean of any federal tax on your income and wages. But even in the UAE, it's needed to have your accounting in order for critical decision-making for the company.

Even though the United Arab Emirates is TAX-free it's still obligated to pay VAT at a rate of 5%, according to the VAT law it is also necessary to keep the books of account and other financial records. This is why the help of an accountant always comes in handy, even in Dubai.

Corporate bank accounts may be one of the thorniest processes you will go through while setting up your business in Dubai. While you won't have to worry about a thing as we will arrange everything for you, it's still handy to know how everything sets in place. This bank account is going to help you observe all of your transactions, deposits and loans if required. With challenges like:

-          Requiring a physical office

-          Should prove credibility at all times

-          Not easy to open when you come from a high-risk country

To open a bank account for an LLC of Free Zone each bank has its own timeline, all in all, it will take up to four weeks to complete this process.

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Opening your bank account in Dubai

The UAE doesn't allow the do business with a personal bank account, so aside from that, you will need to open a corporate bank account as well.

Your corporate account should be a current one, this means that this has to be a transaction account.This type of account comes with the ideal way to make daily transactions, this provides a chequebook, debit card, no limit on your withdrawals, and many other strong points.

Current accounts are the main ones that will be used for corporate accounts, this comes with one obvious reason and that is: the ability of many daily transactions.

When we open your bank account we will need a few documents, these documents contain:

1. Trade license which we already have provided for you
2. Certificate of the company's registration
3. Your and the shareholder's visas and passports
4. The company's memorandum and articles of association

What about credit cards?

Credit cards are very handy to be used for businesses, this allows you to make small or big purchases on credit, they are only to be used for business purposes only, any personal purchase is not allowed here. This card is very important and can be used as a metric that is associated with your company's prosperous health.

It's also crucial to know that this card can be used for emergencies within the company, however, we do suggest you to obtain a credit card for you to build a credit score for your business.

Other than this, choosing the right credit card for you is a valuable decision to make as an entrepreneur as many banks do have different settlements. We assist you in this decision, making sure your choice will meet up to your wants and needs. With this process, you will also have to fall in on some criteria.

-          A valid trade license

-          Your age

-          Income

Getting started on this is an exciting journey where we are at support and assist at all times, making it a trouble-free process for you. We will arrange this in a time span of 2 to 4 weeks, are you ready to jump in?

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