Reasons why hiring an accountant can avoid bankruptcy

Reasons why hiring an accountant can avoid bankruptcy

1. Trustworthy & Reliable Service

An accounting firm with practical accounting experience that you might be missing is one justification for hiring them for your company. Even if you’ve studied accounting in class or through online video, faults might still occur. Getting an experienced and reputable firm to handle your accounting is preferable since it may directly impact your money.

 You can also work with independent contractors who have previous direct accounting project experience. Usually, they commit to working on just one project at a time. By retaining their knowledge, you can ensure that your accounting is in top shape and that your company receives the maximum amount of tax benefits.
When seeking for businesses to outsource accounting services, KLOUDAC is one of the most experienced accounting firms in Dubai, UAE.  They are capable of managing payroll, producing financial statements, and performing accounting audits. They provide prompt, dependable services that adhere to your needs and deadlines.

2. Reduced Risk of Fraud

Having accounting experts work on your accounts has several benefits, but one of the biggest is a reduced risk of fraud or mistakes. The probability that your business will be held responsible when this occurs is basically zero. Due to their own reputation to uphold, professional firms make sure the accounts they manage are always accurate. They lessen the risk of fraud and guarantee that your business won’t ever get into legal trouble.

3. Technical mistakes are less likely to happen

The best professionals work for accounting businesses.  Hiring a junior accountant puts you at risk of making in-depth mistakes. Technical professionals are associated with accounting firms and if errors are found in the accounting books, accounting firms may be held accountable. They make sure your finances are in order and that you have access to the best financial resources available.

4. Time is valuable

Time is of the utmost importance when you are the CEO of a firm. You shouldn’t waste it on things like bookkeeping for your business because you should be focusing on expanding your clients and should be in control of running your business. You might avoid errors and spend less time trying to handle your accounts yourself by hiring a third-party provider. These companies can manage your credit cards, represent you in bank negotiations, and collect invoices as necessary. 

You won’t have to do everything yourself, which is the main benefit of employing an accounting firm to handle your company’s accounting needs. If you grant access to an accounting firm, your financial information is secure in their hands. You may focus on expanding your business while keeping your finances in order doing this.

5. Flexibility and ease of use

One of the most obvious benefits of employing an accounting firm for your business is the number of choices available to you. 

Here are a few illustrations: 

  • The adaptability of the accounting business in handling all of your financial needs.
  •  It is simple to use in accounting management and bookkeeping businesses. 
  • Accounting firms can help you expand your company or find areas where you can decrease costs. 

Hiring a company to handle your accounting needs allows you the flexibility you need to expand your company with the aid of the right knowledge. By outsourcing, you may provide the best services without having to pay more for ongoing training.

KLOUDAC Accounting Firm Dubai, UAE

Small firms frequently face significant pressure to balance their budgets and remain profitable. They have faced particularly difficult times in recent years, and many have been forced to shut down. KLOUDAC is a reputable accounting firm with 15 years of service in Dubai, United Arab Emirates and it also has won the certifications for Xero Payroll and Xero Advisor which is awarded by  the industry-leading online accounting software, XERO. 

A guide to IFRS Advisory Services in UAE

A guide to IFRS Advisory Services in UAE

You must adhere to the highest accounting standards when you expand into overseas markets and handle such significant transactions. IFRS is a universal financial reporting standard that is embraced and accepted by all nations. In order to assure compliance and proper paperwork, the majority of businesses comply to this process. However, the system frequently reviews and modifies its policies, which causes uncertainty and necessitates the use of IFRS Advisory Services.

What is IFRS Advisory?

International Financial Reporting Standards, or IFRS, are a fundamental set of instructions for creating financial statements. These universal guidelines assist make financial statements consistent, believable, and comparable around the world. The International Accounting Standards Board, or IASB as it is more generally known, is in charge of publishing the IFRS protocol. Additionally, IFRS acts as a universal language that supports and promotes commercial endeavors with the utmost integrity and openness. As a result, businesses must make sure they adhere to IFRS guidelines in order to maintain effective and sound financial reporting standards.

Benefits of IFRS Advisory Services

  • Enhanced financial reporting’ reliability, comparability, and openness
  • Assists in preventing the uncertainty that results from the reporting standards’ increasing complexity and variations in its requirements
  • Assists a corporation in its efforts to grow and reach new markets abroad
  • Enables the attraction of international investment by acting as a reliable source of financial data.
  • Makes financial statements more exact and accurate, which increases the company’s trustworthiness.
  • Makes managing and complying with VAT reporting and regulations simple.
  • Contributes to the development of a stronger, more effective financial reporting standard that enables better service provision.
  • Increases responsibility, which raises trustworthiness among shareholders and investors.
  • Assists in streamlining decision-making overall, enabling businesses to make more informed choices.

KLOUDAC Accounting Firm Dubai, UAE

Market conditions vary often, and businesses frequently modify their organizational structures to boost their commercial value. KLOUDAC can assist you in navigating and adhering to the special IFRS regulations for organizational changes and restructuring activities in your interim financial statements. We offer specialized employee training based on our IFRS knowledge and skills, either to develop a fundamental understanding of IFRS and IAS or to instruct the specialists on the most recent updates to the standards. 

How to understand the Comparable Uncontrolled Price (CUP) in UAE

How to understand the Comparable Uncontrolled Price (CUP) in UAE

One of the five primary transfer pricing techniques is the comparable uncontrolled price (CUP) method. It’s utilized to make sure that business dealings between connected companies cost about the same as those with unrelated businesses.

Traditional transaction methods include the CUP technique. To maintain fair pricing everywhere, it examines the terms and conditions of deals struck between linked and unrelated businesses. The comparable uncontrolled transaction (CUT) technique is used to price intangible things, the comparable uncontrolled services price (CUSP) method is used to price services, and the comparable uncontrolled transaction method is used to price tangible items in most other regions of the world. 

The Operation Of The Comparable Uncontrolled Price Method

The internal CUP and the exterior CUP are the two main applications of the CUP technique. We’ll explain them to you.

Internal CUP

The internal CUP technique requires a corporation to identify instances of comparable third-party transactions it has conducted in order to estimate arm’s-length transfer pricing. The CUP approach demands that the terms of transactions with related parties be the same as those of the third-party transactions in order to comply with transfer pricing requirements.

External CUP

The pricing of similar transactions that take place between third parties—to the extent that they exist—can be used by a corporation to calculate arm’s-length transfer prices using the external CUP approach.

Although tax authorities recognize both the internal and external CUP approaches, it is quite difficult for businesses to identify external transactions that are sufficiently comparable to their own. In order to implement the CUP approach, the internal route is typically preferred.

Pros and Cons Of The CUP Transfer Pricing Method

  • The CUP approach is practically error-proof when applied with the proper facts and data; your risk of transfer pricing should be very low. Because it is the most accurate method of determining and defending transfer pricing. The majority of tax authorities advise using this strategy when practical.
  • The CUP method’s drawback is the exceedingly high comparability standard. In order to use this strategy, according to transfer pricing legislation, a number of distinct elements, including volume, contractual terms, and profit potential, to mention a, must be comparable. Alternatively stated, the transactional circumstances must be roughly comparable. Due to the numerous factors that can affect the outcome, it is challenging to meet these requirements.

KLOUDAC Accounting Firm Dubai, UAE

KLOUDAC is a reputable accounting firm with 15 years of service in Dubai, United Arab Emirates. Moreover, the industry-leading online accounting software XERO awarded it certifications for Xero Payroll and Xero Advisor. KLOUDAC is also one of Xero’s golden champion partners.

KLOUDAC offers its clients a comprehensive package of services including Financial Consultancy, ability to hire financial professionals, Business setup, Audit and assurance services, Taxation services, Recognized accounting software, and more. As a result, accounting and bookkeeping are more convenient for SMEs when using our services.

What is the new Golden Visa in UAE?

What is the new Golden Visa in UAE?

The golden visa was launched by the United Arab Emirates (UAE) in 2019 as a long-term residency scheme to grant professionals 10-year golden access. International investors and the best talent from around the world can obtain visas in Abu Dhabi under the UAE’s Golden Visa program. This covers professionals and researchers in the sciences and other domains of knowledge, including physicians, specialists, scientists, and inventors. Additionally, it is available to the emirate’s business, entrepreneurial, and real estate investors as well as skilled creative, and athletic persons.

Why was the UAE GOLDEN VISA introduced?

The golden visa was introduced in order to promote the UAE as a location for commercial investment and to promote regional economic growth. The visa was established to honor long-term residents and their contributions to the advancement of their nation. By providing them with a long-term visa that is valid for ten years and may be renewed, the golden visa is a way to acknowledge and thank them for their commitment.

Who can apply for the Golden card?

Entrepreneurs, top executives, investors, talented students, and scientists are among the five non-resident categories that are eligible to apply for the golden card.

What are the expected requirements?

They must meet at least one of the requirements listed below:

  • must deposit up to 10 million dirhams in a UAE investment fund.
  • a partner in a corporation with a stake worth up to 10 million dirhams or an owner of a business with a capital investment of 10 million dirhams.

In addition, the following requirements must be met:

  • Investment money should be entirely owned rather than financed by a loan, and sufficient documentation must be provided.
  • The investment had to have been held by the applicant for at least three years.
  • The applicant must possess proof of insurance for both themselves and their dependents.

ENTREPRENEUR

  • The proprietors of a project in a UAE-certified industry with a value of at least 500,000 dirhams are required to apply.
  • The applicant must be the project’s originator and a recognized business incubator. 
  • They also need to have personal and family health insurance.

SPECIALISTS

  • A professor from any of the top 500 foreign universities recognized by the ministry of education may apply.
  • A candidate with a prize or recognition certificate for his field of expertise may also apply.
  • Scientists with a Ph.D. and 20 years of relevant experience who have significantly advanced their field of study
  • Specialists in disciplines important to the UAE should apply.

CHIEF EXECUTIVE

  • A bachelor’s degree or its equivalent is required
  • Must have at least five years of experience. Must be employed in the UAE and get a salary of at least 30,000 dirhams.
  • Family members, who are required to have health insurance, must be covered.

ELIGIBILITY REQUIREMENTS FOR OTHERS

The ministry of the economy must have approved the patent for it to meet the requirements for inventors, who also need to have a patent that is valuable to the economy of the United Arab Emirates.

In addition, the UAE Ministry of Culture and Knowledge Development must authorize the program’s art and culture specialists.

How can Kloudac help you?

When you set up your business in Dubai, you would need support from the best of the best to identify your business’ needs and cater customized innovative solutions from setting up until growing it. KLOUDAC specializes in Accounting, Auditing, Taxation, Financial Consultancy and Accounting Software Implementation for all your business needs. We have a team of qualified accountants (CA, ACCA, CIMA) who are really dedicated to provide a quality and reliable service to our clients. KLOUDAC was founded with a profound vision of assisting SMEs and Startups in the UAE. We have managed to acquire a large and reputable clientele in various sectors in a few years of time. We continue to grow along with our lients as their success stories equals our success.

Contact us now for inquiries,

Call: +97142569050

Email: info@kloudac.comWebsite: www.kloudac.com

KLOUDAC Accounting Firm Dubai, UAE

KLOUDAC is a recognized accounting firm in Dubai, UAE with 15 years of service experience. We have built connections with over 500 customers. It has also won the certification of Xero Payroll and the certification of Xero advisor from the world-leading online accounting software – XERO. Moreover, KLOUDAC is a golden champion partner of Xero. 

How to avoid common accounting problems for your business

How to avoid common accounting problems for your business

Today’s small and medium-sized businesses have access to a wide variety of accounting tools, making it simpler than ever to maintain precise records of where your company’s money is going. Accounting software has simplified bookkeeping and accounting for small firms, but it has also increased the likelihood of errors and mistakes in accounting, from misclassifying a transaction to handling all of the accounting yourself.

The reality of your company’s financial health may be distorted over time by bad accounting practices. Repeated accounting errors and poor accounting procedures, in extreme situations, might push your firm into bankruptcy 

5 Common mistakes are:

  1. Not employing a finance expert with experience.
  2. Inaccurate cost tracking for businesses.
  3. Mixing up personal and professional accounts.
  4. Ineffective billing management.
  5. Inadequate preparations for tax time.

Now lets look into each mistake in detail.

1. Not employing a finance expert with experience

Employing a specialist will reduce the possibility of mistakes in crucial areas including expense tracking, timely vendor payment, bank account balancing, and maintaining payroll.

Assisting with tax preparation, certified public accountants can also help you identify patterns in your bookkeeping so you can correct them. Check the AICPA.org database for a license to confirm that a prospective employee is a CPA.

2. Inaccurate cost tracking for businesses

Inaccurate record keeping reduces the efficiency of accounting and bookkeeping.  When you do that, your company is left open to financial losses, late payments on significant bills, headaches during tax season, and other issues that might obstruct the growth of a company.

It goes beyond mistakes made while putting transactional information into a spreadsheet or forgetting to indicate that you paid a bill. The inability to prepare for the upcoming month or beyond is hampered by inaccurate financial tracking, which eventually costs your company money.

Whether it’s just you and a spreadsheet or someone you’ve hired to handle your books, it’s critical that your accounting system keeps track of every transaction so you can accurately assess the health of your firm.

While having a financial expert manage your books is beneficial, an integrated accounting system offers another way to assist you or your bookkeeper in doing their duties more effectively.

In an integrated system, the software links numerous financial transaction-related tasks that a business performs, such as paying bills, monitoring bank deposits and withdrawals, billing customers, and issuing paychecks, so that all the transactions are recorded automatically.

The ability to fully capture a company’s costs, which is necessary for expansion and continued profitability, is one of the main advantages.

3. Mixing up personal and professional accounts.

The distinction between personal and business finances is frequently blurred by small business owners. It makes sense, especially for a new company trying to establish itself.

However, it goes further than simply merging professional and personal purchases on one invoice.  That’s not a wise course of action.

Mixing up your financial accounts might make it more difficult to distinguish between your personal and corporate transactions, which could be a major hassle come tax time. This may result in you overlooking an item that qualifies for a business deduction.

It might also be a problem if you apply for a loan or a line of credit because lenders need a thorough and accurate picture of your company’s financial situation in order to evaluate your loan request.

Wean yourself off the habit if you’ve been using your personal and professional bank accounts interchangeably. Open a distinct business checking account. The bank where you have your personal account may provide you certain incentives to do so.

4. Ineffective billing management.

Maintaining a company’s operations from one day to the next requires a steady cash flow.

Effective client billing or invoicing goes a long way toward ensuring that your revenue is received promptly so that you may use it for costs, payroll, and other requirements.

However, companies who don’t have a firm grasp on the accounting side of their operations may fall far short of this. Delayed invoicing leads to naturally delayed consumer payments, which could leave your company struggling to pay its own expenses.

It is obvious that sending an invoice by email is preferable. There is also software for invoicing and tools you can utilize to send bills to your clients automatically for a quicker, more smooth procedure.

5. Inadequate preparations for tax time.

In order to save money on an accountant or other tax specialist, small businesses may find it tempting to use do-it-yourself tax software to prepare a straightforward tax return.

Even those adopting a DIY method to file their small business taxes may encounter difficulties if they haven’t taken the necessary precautions to accurately record their corporation’s financial information along the route.

The ideal strategy is to ensure that your firm is using an accounting system that smoothly manages business spending, payroll, and other essential elements of your business’s profit and loss statement. This will help you reduce mistakes and oversights.

Before the tax year is through, having a certified tax professional conduct frequent audits and organize your company’s tax-related activities can also help you identify areas for potential savings or even changes that could be made.

KLOUDAC Accounting Firm Dubai, UAE

Book-keeping, tax consultations, financial management and many more services are entirely supported and guided by KLOUDAC.
KLOUDAC is a recognized accounting firm in Dubai, UAE with 15 years of service experience. We have built connections with over 500 customers. It has also won the certification of Xero Payroll and the certification of Xero advisor from the world-leading online accounting software – XERO. Moreover, KLOUDAC is a golden champion partner of Xero. 

Things you need to know about Tax Residence Certificate in UAE

Things you need to know about Tax Residence Certificate in UAE

What is a UAE Tax Residence Certificate?

A Tax Residency Certificate is a legal document that can be used to establish or prove the nation of tax residence. It is issued by the Federal Tax Authority (FTA) of the United Arab Emirates. The certificate has a one-year expiration date after which it must be renewed.

What is the UAE Tax Resident Certificate used for?

Avoidance of Double Taxation Agreements may be advantageous to both persons (such as UAE citizens) and legal entities (businesses) operating in the UAE (DTA). However, in order to qualify for such DTA, one must typically present a Tax Residence Certificate, which attests to the fact that the applicant is a resident of another nation (such as the UAE) and is therefore subject to taxation there.

In order to benefit from DTAs on income and prevent double taxes, the Tax Resident Certificate is given. Therefore, it aids the applicant in avoiding paying taxes in two or more nations and may also aid in establishing residency in the UAE. Additionally, making the procedure of cross-border commerce and investment easier might be beneficial.

Who is eligible to apply for and receive a UAE Tax Residence Certificate?

A UAE Tax Residence Certificate can be applied for and obtained by either an individual or a legal entity (business), provided they satisfy the criteria in effect at the time.

  • Individual (Natural persons)

The applicant must have been a resident of the UAE for at least 180 days.

What prerequisites must individuals fulfill in order to obtain the UAE Tax Residence Certificate?

  • Copy of a passport
  • UAE residence permit (visa)
  • Emirates ID
  • A certified copy of a lease agreement for a residential property
  • A tenancy contract copy, or title deed
  • Income sources (eg: pay slip, a trade license, etc.);
  • A six-month bank statement from a “local” UAE bank that has been authenticated and stamped
  • A report from the General Directorate of Residency and Foreigners Affairs or Federal Authority for Identity and Citizenship (ICA) detailing the applicant’s duration of residency in the UAE (at least 180 days is required), and if relevant, any further information.
  • An official tax form from the nation where the certificate is to be presented
  • Business (Legal persons)

The legal person must have been established for a period of at least one year. Financial accounts must be audited or prepared by an accredited audit firm and attached with other required documents to the application.

What conditions must a legal entity (business) meet in order to obtain the UAE Tax Residence Certificate?

  • A certified copy of the business license and, if necessary, the certifications of the directors and shareholders;
  • Certification of the establishment contract by the appropriate authorities (if not a Sole Company);
  • A duplicate of the passport of each owner, partner, and director of a legal entity; Emirates ID and a visa for permanent residence;
  • A certified copy of the lease agreement or title deed, which must have been in effect for at least three months previous to the application’s submission (please note that a physical office is required to submit the application);
  • A certified copy of the financial statements following an audit;
  • A six-month bank statement that has been confirmed and stamped by a “local” UAE bank, and if applicable
  • A tax form from the nation where the certificate will be submitted.

Is it possible to apply for an offshore UAE company?

Straight forward answer is no, a UAE offshore business cannot apply for and receive a UAE Tax Certificate since, in terms of taxation, the UAE views offshore companies as non-resident legal entities

Perks of having a TRC in UAE

  • Proof to show that you are a Tax resident in the country
  • Avail the benefit of double tax avoidance agreement

How do I get a UAE Tax Residence Certificate?

The applicant must register with the FTA in order to receive a certificate. An application is possible if the account was established. The application form must be completed and uploaded together with any necessary supporting files for review and approval. The applicants can handle the entire process, but it may take some time, particularly if the FTA requests further information or explanations.

Registration Procedure

  1. Sign-up for a Tax Certificate account by clicking here.
  2. Access the Tax Certificate account dashboard.
  3. Click on “Create Tax Residency Certificate”.
  4. Complete the creation process.
  5. Pay certificate fees after getting FTA’s approval
  6. If there is a Tax form that  requires FTA’s attestation: send the form by mail with return service (the applicant will bear fees for sending and returning the documents). The form should be filled and covers the financial year of the certificate.

**The TRC is valid for one year from the beginning of the financial year selected by the applicant.

KLOUDAC Accounting Firm Dubai, UAE

The process for obtaining a tax certificate of residence is entirely supported and guided by KLOUDAC.KLOUDAC is a recognized accounting firm in Dubai, UAE with 15 years of service experience. We have built connections with over 500 customers. It has also won the certification of Xero Payroll and the certification of Xero advisor from the world-leading online accounting software – XERO. Moreover, KLOUDAC is a golden champion partner of Xero. 

A Guide for a better debt management for SMEs in UAE

A Guide for a better debt management for SMEs in UAE

The success of any firm depends on effective financial management. Without it, a company may be doomed to failure right away.

Businesses need to understand how to handle their money effectively in order to safeguard themselves against global crises and other unforeseen catastrophes. This includes managing payments, planning cash flow, and minimizing outlays on the company. In light of this, small and medium-sized businesses can manage their finances by using the following instructions.

Step 1: Track Earnings and Expenses

A firm understanding of where a company’s money is going should be a requirement. Keeping track of income and expenses enables you to determine whether you are utilizing your resources wisely, Knowing your costs will enable you to make future savings.

All receipts, both digital and paper, should first be saved. Decide where to put transactional data after that. Spreadsheets are typically used by less technologically advanced firms, but those looking to automate the process can utilize cloud accounting software like Quickbooks, and Xero. To automatically import your transaction history into an extensive bank feed, high-quality accounting software can integrate with your bank accounts.

Step 2: Develop A Budget

It’s time to create a more intelligent spending strategy after you’ve determined your main expenditure areas. Prior to obtaining financing to expand their firm, a small business should get skilled independent financial guidance. It will be beneficial to use management accounting, assurance, and audit.

This is when budgeting is useful. The first stage in creating a business budget is to use past income data to produce precise revenue estimates. As soon as you have a rough idea of how much money you might make each month, identify the expenses you can reduce to increase your profit.

Step 3: Manage Your Spending

It’s one thing to create a budget; quite another to follow it. Fortunately, many modern banking apps provide tools that let you manage your spending in accordance with your budget. 

Step 4: Reinvest Savings in the Company

It’s time to decide what to do with all your excess money once you’ve managed your expenditure. The best course of action for a company would be to invest in growth. Spend your savings on investments that will help your company generate more revenue in the future. 

You can diversify your business income by using savings as well. invest cash in assets such as bonds, stocks, or other investments. This gives the company a backup source of income in case unforeseen circumstances cause activities to drop slightly.

In the end, it’s critical to avoid letting bad financial management keep your company from realizing its full potential. Businesses can increase the impact of their income through investing, spending control, planning, and expense tracking.

KLOUDAC Accounting Firm Dubai, UAE

KLOUDAC is a recognized accounting firm in Dubai, UAE with 15 years of service experience. We have built connections with over 500 customers. It has also won the certification of Xero Payroll and the certification of Xero advisor from the world-leading online accounting software – XERO. Moreover, KLOUDAC is a golden champion partner of Xero.  Accounting and Bookkeeping are more convenient for SMEs via KLOUDAC since they provide their clients with a whole package of services such as Financial Consultancy, Business setup, Audit and assurance services, Taxation services, Recognized accounting software, and more.

How to start an online business in Dubai?

How to start an online business in Dubai?

The thought of you launching an online business in Dubai is the right choice at the right time with the boom use of technology and the growing online marketplace in the UAE as it is in progress of transforming as a center to grow businesses in Arab world. There’s so much potential and untapped market to be realized via online business in Dubai. You don’t need to acquire physical office space to set up an online business in Dubai. More than 90% of Dubai’s population has access to the internet. 

How to start an online business in Dubai

The process of starting an online business in Dubai takes some in-depth knowledge of the UAE and its many customs and regulations. That’s why it’s always advisable to acquire the services of a business setup company who can not only advise on the process but also seek out the most suitable license and setup type for your business, based on your needs and your budget. By making use of a business setup service, you also gain peace of mind that your license and visa applications are free from errors and omissions – both of which can lead to delays and rejection. When you work with a company formation specialist, all you need to provide is some basic documentation and a little information about the nature of your business.

What are the Steps to Launch an Online Business in Dubai?

1. Finalize your Business Activities

The first step to commence an online business in Dubai is finalizing the business activities you wish to carry out. You should analyze the products and services you can offer and also understand the market via market research then list down the activities to set up the business. It is best to finalize which type of business is feasible for you by doing a business valuation in the early stages of the planning.

2. Book a Trading Name

It’s imperative to have the trade name reservation payment receipt for starting an online business in Dubai. UAE has a strict set of naming conventions that will not be familiar to anyone outside of the region. When choosing a name for your Dubai business, you must keep in mind that it cannot include any offensive or blasphemous language, nor any references to religion.

3. Decide the Location

If you decide on the mainland setup, you are free to trade directly with the local UAE market without working with a local agent, and you are permitted to take on government contracts. If, however, you wish to start your business in a UAE free zone, as well as benefiting from the UAE’s zero percent tax rate, you can also take advantage of full customs tax exemption, no currency restrictions and the ability to repatriate 100% of your capital and profit. You should always consult with the legal advisors before finalizing the company establishment location.

4. Apply for an Online Business License

Operating an online business in Dubai – or any other business for that matter – requires a license.

If you wish to establish your business in a free zone you can apply directly to the free zone in question. If you prefer to set up in the mainland, you should apply to the municipality or Department of Economic Development in the emirate you wish to set up in. In both cases, you will be required to submit some basic documentation, including passport copies, along with your completed application form. You will also need to consider the new regulations regarding the corporate taxes in the UAE, and how it will affect your business.

5. Host a Website

You need to maintain a credible online presence to make a name for your brand in the marketplace. Therefore, hosting an optimized business website should be a top priority for starting an online business in Dubai. Offering flexible payment options increases the chances of scoring a sale. Moreover, always choose a trusted hosting partner for your website and implement easy-to-use navigation. Don’t forget to keep an eye on the website loading speed too.

6. Open a Bank Account

You can open a corporate bank account in any of the reliable local and international banks in the UAE once you’re done with all steps discussed above. In addition, ensure that the selected bank offers A-grade banking facilities and long-term benefits.

Online Business Ideas in Dubai

A few online business ideas in Dubai include:

  1. E-Commerce Store
  2. Online Tutoring
  3. Digital Branding Solutions
  4. Influencer/Brand promoter
  5. Online Consultancy Services
  6. Web design or development
  7. Marketing services

Launch your Online Business in Dubai!

Setting up an online business in the Emirates is cost-effective, easy to manage, and a highly lucrative venture. In the UAE, all you need to do is apply for the relevant business license and get started with your activities. So much so that you could be trading within just a few days of making your license application.

Reach us for more information,

Call: +97142569050

Email: info@kloudac.comWebsite: www.kloudac.com

KLOUDAC Accounting Firm Dubai, UAE

KLOUDAC is a recognized accounting firm in Dubai, UAE with 15 years of service experience. We have built connections with over 500 customers. It has also won the certification of Xero Payroll and the certification of Xero advisor from the world-leading online accounting software – XERO. Moreover, KLOUDAC is a golden champion partner of Xero.  Accounting and Bookkeeping are more convenient for SMEs via KLOUDAC since they provide their clients with a whole package of services such as Financial Consultancy, Business setup, Audit and assurance services, Taxation services, Recognized accounting software, and more.

5 key benefits of outsourcing accounting services in Dubai

5 key benefits of outsourcing accounting services in Dubai

Benefits of outsourcing accounting services

Delegating certain tasks to a business outside of your own in order to gain professional advantages is known as outsourcing. For complex accounting services and financial reporting, accounting outsourcing may be the best option.

Mentioned below are some of the benefits of outsourcing accounting services in Dubai, UAE

1. Higher profitability by improving productivity

Many companies became dissatisfied with the in-house accounting team’s delays, mistakes, and review requirements. Outsourcing services might assist in strictly enforcing policies and demanding effective work that was mutually agreed upon. 

Accounting tasks are completed on schedule by experts who outsource. Accounting jobs are designed to yield higher-quality results and typically come with effective resources for comprehending issues with budgeting and company performance. When productivity is high, you will eventually receive higher profit. 

You can limit your resources and concentrate on your abilities through outsourcing to increase the profitability of your company.

2. Lower prices

Cost-effective services are one of the main advantages of outsourcing accounting services. Cost savings can be significant. You can choose only the services you require via outsourcing. The company will be able to cut back on unnecessary costs in some areas.

3. Reduced risk

Reviewing financial transactions can take time, and reporting errors can be highly expensive. A team of professionals working for outsourcing companies can handle all records effectively and with the fewest errors.

4. Fraud check

In reality, contracting out accounting services to reputable firms can aid in preventing and reducing employee fraud. Internal employee fraud is a possibility if accounting functions are handled within the company.

5. Best Decisions

It can take time to be able to deliver higher quality accounting information more quickly, effectively, and efficiently. By collaborating with accounting experts, you may get more trustworthy data that can help you make better business decisions faster.

Why should we outsource our accounting services?

Any company organization should have an accounting department. Organizations seek out cost-effective accounting solutions, but they also hope to contribute value in order to improve outcomes. Outsourcing accounting services aid in outlining an organization’s main lines of activity.

With easy access to qualified accounting specialists, outsourcing accounting services in Dubai, UAE is a practical approach to managing accounting responsibilities. KLOUDAC is a trustworthy accounting firm that can handle all accounting transactions and offer support with setting up financial transactions.

KLOUDAC Accounting Firm Dubai, UAE

KLOUDAC is a recognized accounting firm in Dubai, UAE with 15 years of service experience. We have built connections with over 500 customers. It has also won the certification of Xero Payroll and the certification of Xero advisor from the world-leading online accounting software – XERO. Moreover, KLOUDAC is a golden champion partner of Xero.  

Accounting and Bookkeeping are more convenient for SMEs via KLOUDAC since they provide their clients with a whole package of services such as Financial Consultancy, Business setup, Audit and assurance services, Taxation services, Recognized accounting software, and more. 

How UAE is transforming as a center to grow businesses in Arab world

How UAE is transforming as a center to grow businesses in Arab world

According to the IMD World Competitiveness Ranking for 2022, the UAE is the most competitive nation in the Arab world.

One of the few remaining large, expanding economies that is still tax-free is the United Arab Emirates, which is well-known on a global scale. 

Recently, a number of high-net-worth people have emigrated to the UAE. The abundance of free zones that made it possible to establish Free Zone Enterprises (FZEs) and the ease of conducting business there have raised the UAE’s identity.

The OECD’s Two-Pillar strategy was released in 2021. 141 nations, including the UAE, endorsed the Inclusive Framework when it was released by the OECD. The Inclusive Framework stated that at least 15% of an enterprise’s profits must be subject to corporate tax. 

The UAE made the initial move by issuing FAQs in January 2022. This started the process of changing the UAE’s tax system from one that was tax-free to one that followed the standards set by the rest of the world.

The proposals essentially state that all entities (corporate or otherwise) that do business must pay taxes at a rate of 9% for accounting years beginning after June 1, 2023. Businesses who operate internationally and have annual sales of more than €750 million must pay taxes at a different rate that will be established. To comply with the OECD’s recommendations, this rate is anticipated to be 15%.

Currently, anytime a new tax is planned to be imposed, there is concern that it may reduce the destination’s competitiveness. There is general consensus, however, that the UAE’s introduction of corporate tax will give legitimacy to the enterprises operating there, that the Gulf country will join a larger global framework, and that the introduction of taxes does not reduce its competitive edge.

Apart from the fact that the taxes are very low at 9% and 15%, the consultation document’s tax system stands out as being fairly straightforward. Taxes will need to be paid on the amount of accounting profits. All businesses operating commercially in the UAE as well as foreign companies that are governed and managed from the UAE will be required to pay taxes. Legal entities established in the UAE would be required to pay taxes there on their worldwide income, while others would only be required to pay taxes on their income earned within the UAE.

The government’s ongoing pledge to uphold contracts made with Free Zone Enterprises and keep their income exempt from corporation tax is encouraging. So, if a Free Zone Enterprises deals with or conducts business in the mainland, measures have been added to tax the income from the mainland and/or to disallow the associated expenses. These provisions need to be carefully considered, and organizations that run both in Free Zone Enterprises and on the mainland may need to take a deeper look and reorganize their business models.

The UAE will continue to have tax-free overseas dividends and capital gains, as well as dividends from firms based there, in order to entice businesses to use it as a holding company jurisdiction. However, those using the UAE as a holding company jurisdiction must be aware of the restriction on interest deduction, which only allows for a maximum of 30% of Ebitda.

The provision about grouping is an important set of provisions that would simplify compliance and lessen the burdens of tax. Corporate tax groups may be formed by businesses with a common share ownership of at least 95%. Regarding the transfer of losses among group firms, there are a few unusual provisions. In general, taxes are paid on 75% of the book earnings, with the remaining 25% being offset by brought-forward losses. Transfers of businesses and reorganizations are exempt from tax under certain circumstances.

Finally, it is highly supportive that there are no obligations for withholding taxes or paying advance taxes.

All firms conducting business in the UAE must now consider whether their current organizational structures are adequate in light of the introduction of corporation tax. There would be many factors to take into account. To earn an interest deduction, one could need to restructure their debt and equity. They might also need to think about how to hold their assets and charge rent, where to put their intellectual property, and how much to charge in royalties, among other things. 

Despite losing its reputation as a tax-free country, the UAE will nevertheless gain from increased openness and recognition as a fully compliant global jurisdiction, and with the right architecture, firms may ensure that the burdens of corporate tax are minimized.

KLOUDAC Accounting Firm Dubai, UAE

KLOUDAC is a recognized accounting firm in Dubai, UAE with 15 years of service experience. We have built connections with over 500 customers. It has also won the certification of Xero Payroll and certification of Xero advisor from the world-leading online accounting software – XERO. Moreover, KLOUDAC is a golden champion partner of Xero.  Accounting and Bookkeeping are more convenient for the SMEs via KLOUDAC since they provide their clients with a whole package of services such as Financial Consultancy, Business setup, Audit and assurance services, Taxation services, Recognized accounting software, and more.