09/09/2020 by MNV Associates
Role of Accounting Services in Dubai in Company Incorporation or Renewal
Successful businesses are bound to get to the next level, which is incorporation. This is the process of registering the business as a corporation, which means that it will be reaping the benefits of being a corporation. Accounting services in Dubai play an important role in this process.
Why incorporate your company?
Before talking about the role accounting plays in company incorporation or renewal, it is important to understand why business owners aim to incorporate their company. One of the most notable reasons is that being registered as a corporation gives the firm and its owners a number of benefits.
The advantages of incorporating your firm include favorable trade zones, strategic location and financial benefits.
How Accounting Services in Dubai Helps in the Process
Knowing that there are certain benefits to incorporating your company, you might be wondering where accounting services come in. Here’s how accountants can aid during the incorporation process.
· Provide Valuable Advice
As a business owner, you want to make sure that taking your business to the next level will be beneficial not only to yourself but also to your company and staff. Accountants can help you understand what this means to your firm, finance-wise. As financial professionals, they are equipped with information on the effects of becoming a corporation.
Your accountant will tell you about how this can affect your taxes. Value Added Tax (VAT) is a thing in Dubai, so it is better that you know all about it, especially in relation to your company. You will also be glad to know that there are tax exemptions that come with being a corporation including capital gains tax and corporate tax exemptions. Dubai also offers reasonable VAT and sales taxes.
· Evaluate Your Finances
Knowing the financial advantages of becoming a corporation, you might be convinced to take this step. However, keep in mind that you should have a clear idea of your and your company’s finances. This is because there are three types of corporations namely LLC, S-corp and C-corp.
Each type has different impacts on the liability, especially when it comes to assets, debts and taxes. They also have different advantages and limitations, which can be explained by your accountant.
· Prepare Required Financial Documents
Finally, you will need accounting services to finalize your paperwork. This includes many aspects of your business and its owner or owners. You will need to choose the right business activity and a company name, then submit all the required documents before you can proceed with other steps. These requirements include financial reports.
· Deeper Understanding of the Bylaws
Related to providing valuable advice when it comes to financial matters, your accountant can also inform you about bylaws related to running a business or corporation. This covers your company’s stocks, shareholders, approval of loans, contracts and other transactions, and procedure for financial audits and corporate records. There are also bylaws regarding bookkeeping and taxes.
The Bottom Line
Accounting services are essential not only during your business operations but also with regard to the processing of incorporating your business. With the help of expert accountants, you can start the process that can take your company to the next level. Just make sure to work with specialists and you will be good to go.