As one of the world’s most business-friendly cities and a major financial center, Dubai gives growing entrepreneurs an opportunity to start an accounting or bookkeeping business. Dubai provides an atmosphere that is ideal for new companies to flourish because of its booming economy, advantageous tax laws, and efficient business establishment procedures.
We’ll walk you through all the necessary procedures in this post to start an accounting and bookkeeping business in Dubai, United Arab Emirates. We will handle every essential detail to ensure your firm is ready for success in this vibrant metropolis, from comprehending the market need to securing the required permits and registrations.
By following the strategies outlined in this guide, you will be well-equipped to capitalize on Dubai’s flourishing financial sector and build a thriving accounting and bookkeeping practice that caters to the diverse needs of local and international businesses.
Requirements to Incorporate an Accounting and Bookkeeping Business in Dubai
Trade License: You must fulfill the conditions for a trade license set forth by the Department of Economic Development (DED) in order to open an accounting services firm in Dubai. Any firm in the UAE that wants to operate lawfully needs this license.
Professional License: Accounting and accounting specialists, among other finance professionals seeking to offer high-quality services, can apply for a professional license to lawfully do business in Dubai.
Business Activities: Give a detailed description of the products and services your accounting firm will provide. To avoid fines, these activities must correspond with the ones specified on your application for a trade license.
Business Name: Make sure the name you choose for your accounting firm fits with the naming regulations in the United Arab Emirates. There should be no disrespectful language or religious allusions in the name.
Business Jurisdiction: Choose between setting up a mainland firm or a free zone for your business. Everyone has advantages, rules, and specifications of their own. While mainland corporations require a local sponsor to own 51% of the shares, free zone companies are well-liked for giving foreign nationals 100% ownership.
License Application: Send in your application for a license, making sure you fulfill all requirements—such as possessing an accounting degree—in order to offer professional services.
How do you start an accounting and bookkeeping business in Dubai?
1. Specify Your Business Activity
The first step is to specify the business activities you want to engage in, such as accounting, bookkeeping, auditing, or financial consulting.
2. Choose a Company Name
Select a unique and suitable name for your company, ensuring it adheres to the UAE’s naming policies.
3. Choose a Suitable Location
Decide on a location for your business, considering factors such as accessibility, cost, and proximity to your target market.
4. Apply for a License
Obtain a professional license from the relevant regulator, such as the Department of Economic Development (DED), to operate your accounting and bookkeeping business legally in Dubai.
5. Open a Bank Account
Open a bank account in the name of your company to separate personal and business finances and to facilitate transactions.
6. Register Your Business
Register your business with the relevant authorities, submitting all necessary documents, including a copy of your passport and visa, business plan, trade name certificate, lease agreement, and initial approval certificate.
7. Obtain Initial Approval
Obtain initial approval from the DED, indicating that the regulator does not have any objections to your business setup.
8. Acquire an Office Space
Acquire an office space that meets the UAE’s regulations, as a physical presence is often required for business setup.
Cost to Get a Professional Licenses to Operate Accounting and Bookkeeping Business in Dubai
Depending on the region and kind of license, getting a professional license for an accounting and bookkeeping business in Dubai, United Arab Emirates, might be expensive. A professional services license from Dubai Economy would set you back about AED 15,000 on the Mainland of Dubai. Furthermore, the starting fee for an Accounting and Bookkeeping Service License in Dubai is AED 14,900 for a Free Zone situated in Dubai; other fees may apply depending on office size and visa quota needs. To ensure compliance and lawful operation inside the city, entrepreneurs wishing to open an accounting and bookkeeping firm in Dubai should pay for these license charges.
Documents Required to Register an Accounting and Bookkeeping Business in Dubai
- Copy of the passport and visa of the shareholders and directors
- Business plan
- Trade name certificate
- Lease agreement
- Initial approval certificate
Benefits of Incorporating an Accounting and Bookkeeping Business in Dubai
Tax Benefits: The UAE offers a 0% tax rate on corporate and personal income, making it an attractive location for business setup.
Demand: Dubai is home to hundreds of thousands of businesses, creating a high demand for accounting and bookkeeping services.
Expertise: Many entrepreneurs in the UAE partner with local experts for financial and tax compliance, enhancing business operations.
Free Zone Advantages: Free zone companies in Dubai enjoy benefits like 100% customs tax exemption and the freedom to repatriate capital and profits.
Financial Stability: Accounting firms play a crucial role in guiding businesses with financial information to enhance transactions and increase revenue, contributing to financial stability and growth.
Regulatory Support: The UAE’s regulatory environment encourages foreign entrepreneurs to establish businesses, offering incentives like 0% tax on corporate and personal incomes and 100% business ownership.
FAQ’s
- Regulatory Compliance
- Initial Setup Costs
- Business Setup Complexity
- Market Saturation
- Competition
Yes, accountants are in high demand in the UAE as the country continues to experience strong economic growth and new businesses are constantly being established.
They can manage all aspects of company registration, trade license application, and setup to ensure compliance with government requirements.
