Installment payment will help small and medium enterprises to survive and grow at a time when the COVID-19 pandemic hit businesses very hard
Emirates First Group, a Dubai-based business set-up and investment advisory, today launched an installment payment scheme that will help investors and businessmen reduce the cost of trade license issuance and renewals and help them carry on with the business with initial lower cost.
Investors and businessowners can now pay for the trade licence issuance and renewals as well as all related government services with a cost up to Dh15,000 in four installments, instead of a one-time payment – that will ease the financial burden on them. The initiative covers all government and company fees for company formation, visa assistance and other government-related activities.
The total number of business licences in the UAE totalled 652,885in June 2020, a rise of 4,201 compared to May 2020, according to statistics from the National Economic Registry of the Ministry of Economy.With an average cost of trade license issuance and renewal of Dh15,000, the total investment amounts to Dh9.8 billion (US$2.67 billion) per annum.
“We are pleased to announce this wonderful initiative that is aimed at supporting the micro, small and medium enterprises (MSME), that represents more than 85 percent of the UAE economy,” Jamad Usman, Managing Director and Chief Executive Officer, of Emirates First Group, says.
“This initiative is in line with the UAE Government’s latest series of economic reforms measures that include reducing government fees in business licensing procedures to help the investors. As an investment advisory and business setup specialist, we felt the need to support fellow investors in trying to reduce the burden of licensing costs. Hence we came up with this package that helps the investors and entrepreneurs to carry on with their business activities under these challenging times.”
Emirates First Group, which provides end-to-end business setup services including investment and business advisory, legal consultancy, financial consultancy, labour permits, visa and residency permits, accounting, auditing and tax advisory as well as bank opening services, has so far helped set up more than 5,000 businesses in the UAE, mostly in Dubai, in the last five years.
With an average investment of Dh100,000 in business setup, office rent, employee recruitment, training, per company, this translates to a total investment of Dh500 million in five years. These companies have had an economic impact worth more than Dh5 billion on the UAE economy through employing professionals and their business activities.
The immigration and business reforms – namely allowing foreigners to own a 100 percent stake in a mainland license without a local partner and the ten-year Golden Visa – in addition to the effective handling of the COVID-19 pandemic has encouraged a large number of wealthy people either to relocate to the UAE, relocate their business to the UAE or expand their businesses to the UAE.
The number of registered licences in Abu Dhabi, Dubai and Sharjah reached 530,165, accounting for 81.2 percent of the total licences in the UAE.In detail, the number of active businesses in Dubai totalled 300,000 at the end of June 2020, representing around 46 percent of the total number of businesses in the UAE.
In Abu Dhabi, the licences registered in June 2020 totalled 145,660, accounting for 22.3 percent of the total while in Sharjah, the number of businesses reached 84,505, accounting for 13 percent. The rest of the licences were distributed between Umm Al Qaiwain, Ajman, Fujairah and Ras Al Khaimah.
The Department of Economy and Tourism (DET)issued 55,194 new business licences during the first 10months of 2021.The figure marks a 69 per cent increase over the same period in 2020 when 32,626 licences were issued.According to a DET report, 59 percent of the new business licences issued were professional, and 41 per cent were commercial.
Emirates First Group currently offers advisory services for 10-year UAE Gold Card Visa services as well.
“We believe in long term relationships with our clients. Therefore, we offer end-to-end services, including sometimes to source good office space and negotiate rents for them – so that they get the best services from us,” Jamad Usman says.
“In many cases, we offer them ready office space with all facilities built-in on a monthly rental basis. This helps them focus on business development rather than to worry about rents and payables.”
Dubai has added 98 new economic activities to vital sector last year, bringing the total number of economic activities to more than 2,200. This is an increase of 88 percent compared to 2020, when 52 new economic activities were added, according to reports.
According to the DET, the new activities cover specialised business sectors in Dubai and include green hydrogen production, artificial intelligence developing services, gaming localisation services, industrial consultancies, 3D printing building construction contracting, space consultancies, plant-based dairy manufacturing, early childhood centre and gaming production service providers.
Emirates First Group has recently launched e-First Global, its premium business set-up and investment advisory services at the Opus within Business Bay – to serve its growing number of premium customers and large foreign investors in the UAE economy.The company, which is growing its operations in Dubai, is adding several branches to serve a growing number of clientele from across the world.
Emirates First Group currently operates through six branches, including two branches of e-First Global – a new premium services brand.