Jeffrey’s story written in two lines to make it long enough
Jeffrey lives in Manaland (an imaginary country in the heart of Europe) with his family and runs a business. Manaland is a country where taxes are high (at the EU level) and where few people live, so it’s hard to get from one to two. Jeffrey’s business is in service and product sales, and he has a lot of people working with him because he is a trustworthy businessman.
However, Jeffrey’s business cannot grow because there is a small market in Manaland, and he has decided to try to make a living in another country.
He looked at the surrounding countries and spent long nights calculating where it would be worthwhile for him to start a new business.
The European market is saturated, competition is fierce in all industries, taxes are high, and the economy is growing slowly, partly because of bureaucratic regulations. America would be good, with freer business policies and fewer restrictions, but it’s a long way off, and Jeffrey doesn’t want to give up his Manaland business at the start.
After thorough research, Dubai was finally chosen. It’s only a few hours flight from Europe, the market is exciting, and the local government is supportive of foreign businesses coming in and growing. The services industry is still in its infancy, but the Emirati country’s largest city is incredibly capital-intensive. Tax conditions are excellent, with no income or dividend tax and a wide range of free zones to choose from.
Browsing the internet further, they felt overwhelmed by the towering waves of a vast sea of information. Fed up with the hopeless tossing and turning instead of surfing, they sought expert help.
They searched Facebook and Google for companies that were looking to bring foreign businesses to Dubai. They searched on Facebook and Google for companies that were seeking to bring foreign businesses to Dubai. They weighed up the options before finally settling on MADconsulting.
The reason?
MADconsulting can help with everything from start-up to ramp-up, their approach covers almost the entire spectrum of business development. A cohesive team of lawyers, accountants, and marketers can answer all his business questions.
Jeffrey visited their website and, seeing the useful information, made an appointment online. It was quick and easy. Jeffrey visited their website, and upon finding useful information, scheduled an appointment online.
Jeffrey gathered his questions and then it was time for the online meeting. He clicked the “connect” button and found himself in the meeting. Mohamed greeted him and assured Jeffrey that the consultation was free and there was no need to rush, feel free to think it over and ask as many questions as he likes.
Jeffrey said that he would like to move out to Dubai with his wife, but he doesn’t want to live there permanently because his family is in Manaland and he wants to spend time with them. He said that he has a business that he wants to develop, he wants to expand, and is looking for a new market. Jeffrey’s company had a webshop selling a variety of cosmetic products and also gave advice to men and women on how to take care of their skin, and how to be aesthetically pleasing and healthy.
Jeffrey lives in Manaland (an imaginary country in the heart of Europe) with his family and runs a business. Manaland is a country where taxes are high (at the EU level) and where few people live, so it’s hard to get from one to two. Jeffrey’s business is in service and product sales, and he has a lot of people working with him because he is a trustworthy businessman.
However, Jeffrey’s business cannot grow because there is a small market in Manaland, and he has decided to try to make a living in another country.
He looked at the surrounding countries and spent long nights calculating where it would be worthwhile for him to start a new business.
The European market is saturated, competition is fierce in all industries, taxes are high, and the economy is growing slowly, partly because of bureaucratic regulations. America would be good, with freer business policies and fewer restrictions, but it’s a long way off, and Jeffrey doesn’t want to give up his Manaland business at the start.
Mohamed said that to be able to provide the service and product sales in Dubai, he needed to set up a Freezone company in Dubai Commerce City. Jeffrey did not understand what a Freezone company was.
A Freezone company is a company that has its headquarters in Dubai, can have an office there if it wants, and can sell its products and do the service anywhere in the world. A Freezone company, headquartered in Dubai, has the option to establish an office within the city and has the freedom to sell its products and provide services globally.It is a limited liability company, which may have directors from other countries and may have employees. The directors receive a directors’ fee, which is not taxable, the employees receive a salary and are not taxable, only health insurance.
Jeffrey was crazy about this, but he was skeptical because it would be too nice and if it’s tax-free, why don’t others do it, why hasn’t he or his wife heard about it? Mohamed interjected.
‘Yes, it is indeed tax-free and it does have a lot of potential, but in order to take advantage of it, Jeffrey has to do a lot of research and a lot of paperwork.’ Yes, it is indeed tax-free, and it does have a lot of potential, but to take advantage of it, Jeffrey has to do a lot of research and a lot of paperwork.
Jeffrey liked that Mohamed wanted to help and sympathize with him, so he asked Mohamed what he should do if he wanted to start his business in Dubai with his wife.
‘Jeffrey, as I said at the beginning, you need to set up a Freezone company,’ Mohamed said, and then continued, ‘Before we get started, I have one more question. Are you going to hire more employees?’ Jeffrey wondered.
‘My wife would run the webshop and consultancy, and I would manage the company and the finances.’
‘So you both want to be employees and directors as well, I understand?’ – Mohamed asked.
‘Yes, I think so,’ replied Jeffrey.
‘Then let’s look at the tax system in Manaland first,’ suggested Mohamed. ‘I see there is a treaty between Manaland and the United Arab Emirates that says if you pay tax in one country, you don’t have to in the other. For this treaty to work, you have to spend more than 90 days in Dubai to be a tax resident, and then you don’t have to pay tax in Manaland.’
‘I can spend more than 90 days in Dubai, but my wife can’t,’ Jeffrey replied.
‘Then I suggest Jeffrey, you should be an employee of your own company and your wife should be a director, because if she gets a director’s fee, then she doesn’t have to pay tax even if she spends less than 90 days in Dubai.’
Jeffrey accepted Mohamed’s suggestion, who continued.
‘The first step is to figure out what the name of the company should be. Jeffrey immediately came up with J and K Cosmetics.
You need to discuss who will have a stake in the company, and once that is done, you can start the incorporation. This is where we first need to talk about the costs,’ Mohamed told Jeffrey, ‘The cost of incorporation is USD 14,000, and this has to be paid to start the company. This price includes the preparation of company documents, administration of a company stamp, preparation of a basic business plan, your visa, Emirates ID, company and private bank accounts, and liaison with Dubai Commerce City and the authorities.’
Jeffrey accepted the price and paid Mohamed’s bill on the incorporation. The company was ready in 3 days, and Jeffrey proudly showed his wife the papers of their joint company.
‘The next step is for Jeffrey to get a work visa. To do this, you will need to send me a copy of your passport and an ID photo of yourself against a white background, without a smile, and your CV.’
Jeffrey sent Mohamed what he asked for the very next day. Within three days, Jeffrey received his work permit.
‘Now it’s time to apply for your Emirates ID, which acts as your identity card in the Emirates. With this ID, you can prove your identity, and you don’t need to carry your passport with you when you are in Dubai. To get your Emirates ID and your business and private bank account, you will need to travel here for about 2 weeks.’
Jeffrey has bought the plane tickets and found beachfront accommodation for you.
Mohamed’s colleague was waiting for Jeffrey and his wife at the airport. Jeffrey had his work visa stamped at the airport. They went for a medical examination, for which Mohamed made an appointment for Jeffrey. The examination consisted of a blood test and a lung X-ray, as this is required for the Emirates ID. The results of the medical examination were good, and they could go on. The next stop was the government office, where they took a new fingerprint from Jeffrey, asked for the stamped visa, and asked for a signature on the documents. The whole process was done in 3 hours. The entire process was completed within 3 hours.Mohamed’s colleague dropped Jeffrey and his wife off at the hotel where they had booked a room. From then on, it was just a matter of waiting for the Emirates ID to be ready.
Six days later, Mohamed reported that the Emirates ID was ready and they would be picked up at the hotel to take it over. Jeffrey picked up the Emirates ID, and Mohamed took them to the nearby Etisalat shop where Jeffrey bought 1 Dubai phone number, as he would need to enter it to open a company bank account.
Jeffrey and his wife went out for lunch with Mohamed, where Mohamed opened Jeffrey’s private bank account online and ordered the bank card, which the post office sent to the hotel where Jeffrey was staying 2 days later. Jeffrey received the card with his Emirates ID and activated it online.
The next step in opening the corporate bank account was to send Jeffrey’s Emirates ID to Mohamed at the bank and when they received it 2 days later, they went to sign the corporate bank account agreement. Of course, this required Mohamed to send all the documents the bank requested (business plan, market research, etc.) in advance to his friend at the bank, who helped cut the 2-month process in half. The company bank account was ready 5 days after the signature.
This is how J and K Cosmetics LLC. was ready in 4 weeks. Jeffrey has been working with Mohamed’s company ever since, asking him for business management and tax advice.
They also continue to support their beauty business with branding and marketing activities. Their growth strategy was mapped out during a kickoff workshop after the foundation of the company, where they explained their values, goals and thoroughly explained the problems and desires of their target audience.
From this, a business development manual was produced, along which they could precisely plan the steps of their scaling up. The carefully prepared guide included a roadmap that projected years ahead the activities and partnerships that would enable them to grow steadily.
MADconsulting is supporting J and K Cosmetics with various online advertisements. The copies, the technical set-ups, and the creatives are all a tribute to the work of professional hands. The beauty company is also constantly supported with quality offline materials such as posters, product catalogs, flyers, rollups, and almost anything else they need.
