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BlackburnRovers wrote:Techincally, isnt the annual fee system illegal ? i think its called having a "sleeping partner"

They were trying to change the system, but so far it still is the most common form of "Local Patrnership"

dont know why there is such a big fuss about local partnership. if you dont want to be sponsored by a local just go to a freezone and setup your own company. simple as dat

desertdudeshj wrote:

sage & onion wrote:

RobbyG wrote:I understand your point. But it isn't all wrong what I've said.

Forget the multinationals. I'm talking small businesses here. Think about businesses outside the freezones, like hotels, diners, restaurants, leisure and entertainment etc?

RG your statement regarding business ownership are actually for the most part completely wrong, the norm here is a yearly fee as stated by BB.

Well thats what happens when you sit thousands of miles away and claim to be an internet expert.

So you're saying my resident contacts are lying to me?

RobbyG, I believe that I am a resident contact of yours and I have stated the facts. You didn't indicate that your information came fro resident sources and no one is saying that they are lying. Its possible that your other "resident contacts" are mistaken or are not fully informed. Even if someone is here for say three years and works in HR, it doesn't mean that they have a working knowledge as to how things were/are done.

Bora Bora wrote:RobbyG, I believe that I am a resident contact of yours and I have stated the facts. You didn't indicate that your information came fro resident sources and no one is saying that they are lying. Its possible that your other "resident contacts" are mistaken or are not fully informed. Even if someone is here for say three years and works in HR, it doesn't mean that they have a working knowledge as to how things were/are done.

Hon, if you start reading properly from the beginning, you'll understand that my contacts are small business owners, exploiting their own business in the UAE.

Nevermind, that is if you don't want to find out the roots of the service charge. Hidden costs.
It doesn't matter whether the Emirati gets a one time (yearly) charge or not. The charge is a cost for a business owner and means less capital investments for the expansion. According to some people, it clearly outweighs the benefit of the 51% ownership contribution.

I'll let it rest ok? After all, I'm not paying the service charge. You guys are.

rudeboy wrote:dont know why there is such a big fuss about local partnership. if you dont want to be sponsored by a local just go to a freezone and setup your own company. simple as dat

RB, this is misconception, the free zone allows you to do business only "through" Dubai, not "in" Dubai.
Let' s say you want to sell shoes in Zimbabwe, no prob, you can do it through a free zone in Dubai, if you want to sell shoes in Dubai, you cannot, the business has to be outside the freezone, owned (51%) and sponsored by a National to whom you have to pay a significant fee for doing nothing.
Have you seen business retails or services in Freezones? Do you think people in Dubai can go in the freezones to buy a book, grocery, rent a car or see a movie?

herve wrote:

rudeboy wrote:dont know why there is such a big fuss about local partnership. if you dont want to be sponsored by a local just go to a freezone and setup your own company. simple as dat

RB, this is misconception, the free zone allows you to do business only "through" Dubai, not "in" Dubai.
Let' s say you want to sell shoes in Zimbabwe, no prob, you can do it through a free zone in Dubai, if you want to sell shoes in Dubai, you cannot, the business has to be outside the freezone, owned (51%) and sponsored by a National to whom you have to pay a significant fee for doing nothing.
Have you seen business retails or services in Freezones? Do you think people in Dubai can go in the freezones to buy a book, grocery, rent a car or see a movie?

Exactly as I understand the free zone.

One question though:
So Herve, does that also mean you were not able to sell submarines with Exomos (based in Jebel Ali Freezone) in Dubai or in the UAE altogether, or did you obtain exemption per decree from executive management at Dubai World?

Exomos was targeting the home market also correct?

No, I could not sell or charter submarines in Dubai from the freezone, I had to go through a broker, or set up a charter company in Dubai, outside the freezone through a sponsor. No exemption.

RobbyG wrote:

Bora Bora wrote:RobbyG, I believe that I am a resident contact of yours and I have stated the facts. You didn't indicate that your information came fro resident sources and no one is saying that they are lying. Its possible that your other "resident contacts" are mistaken or are not fully informed. Even if someone is here for say three years and works in HR, it doesn't mean that they have a working knowledge as to how things were/are done.

Hon, if you start reading properly from the beginning, you'll understand that my contacts are small business owners, exploiting their own business in the UAE.

Nevermind, that is if you don't want to find out the roots of the service charge. Hidden costs.
It doesn't matter whether the Emirati gets a one time (yearly) charge or not. The charge is a cost for a business owner and means less capital investments for the expansion. According to some people, it clearly outweighs the benefit of the 51% ownership contribution.

I'll let it rest ok? After all, I'm not paying the service charge. You guys are.

Hon, first, I read correctly. You stated you had "resident contacts", not small business contacts. And if that is the case, then you are saying that your so-called contacts are in the businesses you refer to - hotels, etc.

If your contacts feel that the annual fees that they pay is a hardship on their ability to expand, they why stay in business? If the expat is paying 51% off the top to the sponsor and has to cover everything else with his 49% then why stay in business? Clearly that's a losing situation.

I guess you would have to be here to understand that there is no one way of doing things - in particular, sponsorship and service charges. But I guess your contacts have their finger on the pulse and know everything there is to know about sponsorship and service charges. I can only wonder why they stay and continue to do business here if it's such a hardship.

Now, I'll let it rest OK?

herve wrote:

rudeboy wrote:dont know why there is such a big fuss about local partnership. if you dont want to be sponsored by a local just go to a freezone and setup your own company. simple as dat

RB, this is misconception, the free zone allows you to do business only "through" Dubai, not "in" Dubai.
Let' s say you want to sell shoes in Zimbabwe, no prob, you can do it through a free zone in Dubai, if you want to sell shoes in Dubai, you cannot, the business has to be outside the freezone, owned (51%) and sponsored by a National to whom you have to pay a significant fee for doing nothing.
Have you seen business retails or services in Freezones? Do you think people in Dubai can go in the freezones to buy a book, grocery, rent a car or see a movie?

ok i dont know how its done in dubai but i got a company in Sharjah Freezone and then I have a branch of Sharjah Freezone company outside in Sharjah. I dont have a share with a local or anyone else. it is 100% owned by me and you can sell outside of the freezone easily.

Lets say my customer is Dubal and I am based in Sharjah Freezone I can still sell my products and services to them as long as everything is done within the law and all the paperwork is done.

So I dont know who told you cant sell from a Freezone to outside of the freezone.

Bora Bora wrote:

RobbyG wrote:

Bora Bora wrote:RobbyG, I believe that I am a resident contact of yours and I have stated the facts. You didn't indicate that your information came fro resident sources and no one is saying that they are lying. Its possible that your other "resident contacts" are mistaken or are not fully informed. Even if someone is here for say three years and works in HR, it doesn't mean that they have a working knowledge as to how things were/are done.

Hon, if you start reading properly from the beginning, you'll understand that my contacts are small business owners, exploiting their own business in the UAE.

Nevermind, that is if you don't want to find out the roots of the service charge. Hidden costs.
It doesn't matter whether the Emirati gets a one time (yearly) charge or not. The charge is a cost for a business owner and means less capital investments for the expansion. According to some people, it clearly outweighs the benefit of the 51% ownership contribution.

I'll let it rest ok? After all, I'm not paying the service charge. You guys are.

Hon, first, I read correctly. You stated you had "resident contacts", not small business contacts. And if that is the case, then you are saying that your so-called contacts are in the businesses you refer to - hotels, etc.

If your contacts feel that the annual fees that they pay is a hardship on their ability to expand, they why stay in business? If the expat is paying 51% off the top to the sponsor and has to cover everything else with his 49% then why stay in business? Clearly that's a losing situation.

I guess you would have to be here to understand that there is no one way of doing things - in particular, sponsorship and service charges. But I guess your contacts have their finger on the pulse and know everything there is to know about sponsorship and service charges. I can only wonder why they stay and continue to do business here if it's such a hardship.

Now, I'll let it rest OK?

Following the above, is a clearcut situation where you say that business owners should shut up and work with the means they have or just leave without discussion. I know you have to close your eyes for the elites who get paid the fruits of expatriate labour, but ignorance doesn't solve the hidden costs of doing business in the Dubai.

There isn't much platform in Dubai to discuss these matters is there? So I don't think its strange to hear these issues. At least the free media addresses these issues properly on occassion, portraying the utter fraud of the elites.

Where else to complain if you're a business owner, right?

Lets continue the open ended honesty once again...

the only cost of doing business in UAE is salary for your staff and the rent you pay.

staff is cheap and so is the rent, custom duty is low compared to other countries.

when you compare with lets say UK you will find UAE is very cheap when it comes to establishing and running a business in UK. Also lets not 4get tax

Doing business in Dubai is OK as long as you know what you have to do, it is clear that Robby does not understand the concept, maybe he should visit and sit down over a beverage to get the low down.

rudeboy wrote:the only cost of doing business in UAE is salary for your staff and the rent you pay.

staff is cheap and so is the rent, custom duty is low compared to other countries.

when you compare with lets say UK you will find UAE is very cheap when it comes to establishing and running a business in UK. Also lets not 4get tax

sage & onion wrote:Doing business in Dubai is OK as long as you know what you have to do, it is clear that Robby does not understand the concept, maybe he should visit and sit down over a beverage to get the low down.

True, there is alot to be said about high taxation in Europe. From that perspective, Dubai has got advantages, although I clearly hate hidden costs (numerous charges and most importantly, inflation).

Whats wrong with transparancy these days?

RobbyG wrote:Hon, first, I read correctly. You stated you had "resident contacts", not small business contacts. And if that is the case, then you are saying that your so-called contacts are in the businesses you refer to - hotels, etc.

If your contacts feel that the annual fees that they pay is a hardship on their ability to expand, they why stay in business? If the expat is paying 51% off the top to the sponsor and has to cover everything else with his 49% then why stay in business? Clearly that's a losing situation.

I guess you would have to be here to understand that there is no one way of doing things - in particular, sponsorship and service charges. But I guess your contacts have their finger on the pulse and know everything there is to know about sponsorship and service charges. I can only wonder why they stay and continue to do business here if it's such a hardship.

Now, I'll let it rest OK?

Following the above, is a clearcut situation where you say that business owners should shut up and work with the means they have or just leave without discussion. I know you have to close your eyes for the elites who get paid the fruits of expatriate labour, but ignorance doesn't solve the hidden costs of doing business in the Dubai.

There isn't much platform in Dubai to discuss these matters is there? So I don't think its strange to hear these issues. At least the free media addresses these issues properly on occassion, portraying the utter fraud of the elites.

Where else to complain if you're a business owner, right?

Lets continue the open ended honesty once again...[/quote]

Where is it a clearcut situation that I said business owners who have a complaint should shut up, etc. Those are your words. FYI there are many business organizations here - for locals and expats, and they have worked hard to improve the way business is run here. If you were here for 12 years you would know that. But since you haven't even visited Dubai, that's information you wouldn't have. Actually, if you were here for 12 years, you would be saying an entirely different thing only because it would have been based on actual knowledge.

The majority of local sponsors are just that - sponsors!!! There are a small minority who did take advantage of their sponsoring businesses, but the numbers have lessened over the years. Stop making the sponsors out to be the bad guys. It's the business owners - expats - who put business practice in place. If your contacts are so unhappy with the sponsor they have, they can change sponsors. There is nothing written in stone saying that they can't. As for the free zones, google it. There are plenty of businesses that are operating with a free zone business license with permission to operate outside the designated free zone. There are many companies registered with the DIFC - which is a free zone - that operate on SZR, which is outside the designated free zone.

WHO are the elite and WHY would I close my eyes to bad business practices - exploiting people?? Just so you know, those people I do know who are business people or are responsible for the running of a business - local and expat - are associations that I choose to have. Decency is a consideration that I take into account with those I am friends with and associate with.

No offense Rob, but you don't know all there is to know about Dubai. Having said that, neither do I, but having lived here for as long as I have, I think my information is more reliable than yours and Herve, who was here for a few years selling his BS to Nakheel.

There is a saying: a little bit of knowledge can be a dangerous thing. If you want honesty then you need to stop defending what you think you know and support what you actually know. Stick to what you do know - aerospace, and leave Dubai to the Dubains.

I know a thing or two more than just Aerospace. I would never say I know all there is to know. Thats why I converse with people on the ground (not just you alone) and have this broad interest in the world in general.

I don't just talk. I analyze the walk. Doesn't mean you have to agree with me...

Whats your problem with me, BB? Focus on the substance please.

RobbyG wrote:I know a thing or two more than just Aerospace. I would never say I know all there is to know. Thats why I converse with people on the ground (not just you alone) and have this broad interest in the world in general.

I don't just talk. I analyze the walk. Doesn't mean you have to agree with me...

Whats your problem with me, BB? Focus on the substance please.

If you noticed I put a after the aerospace quip I made.

I just find it frustrating that you basically defend incorrect information passed on to you from your "on the ground business contacts" as being the last word, and don't listen to other people who just may happen to know a little bit more.

You stated, and I quote: 51 percent of the service charge goes directly to the Emirati owners. The other 49 percent is to keep the business going. Next time, try the manager himself. Maybe he can explain the rip-off.

If you do analyze what is said, you would take what has been said, not only by me, and find that your info was incorrect. I'm not saying, wrong, just incorrect.

I should focus on the substance? I don't like people putting up statements that they claim I made, which is what you did - refer to your "shut up" statement. That was YOUR interpretation of something I said. And your interpretation isn't even close to what I said. I was trying to explain to you what I know, but you were pushing it. "So my contacts are lying to me", blah blah blah.... Actually, you weren't making for a good debate, more like an argument.

I also didn't particularly care for your statement regarding the elite and my "closing my eyes". I'm sure I was suppose to:
_____________________________
read between the lines
_____________________________

And what was with the "honesty" statement you made??

Bora Bora wrote:

RobbyG wrote:I know a thing or two more than just Aerospace. I would never say I know all there is to know. Thats why I converse with people on the ground (not just you alone) and have this broad interest in the world in general.

I don't just talk. I analyze the walk. Doesn't mean you have to agree with me...

Whats your problem with me, BB? Focus on the substance please.

If you noticed I put a after the aerospace quip I made.

I just find it frustrating that you basically defend incorrect information passed on to you from your "on the ground business contacts" as being the last word, and don't listen to other people who just may happen to know a little bit more.

You stated, and I quote: 51 percent of the service charge goes directly to the Emirati owners. The other 49 percent is to keep the business going. Next time, try the manager himself. Maybe he can explain the rip-off.

If you do analyze what is said, you would take what has been said, not only by me, and find that your info was incorrect. I'm not saying, wrong, just incorrect.

I should focus on the substance? I don't like people putting up statements that they claim I made, which is what you did - refer to your "shut up" statement. That was YOUR interpretation of something I said. And your interpretation isn't even close to what I said. I was trying to explain to you what I know, but you were pushing it. "So my contacts are lying to me", blah blah blah.... Actually, you weren't making for a good debate, more like an argument.

I also didn't particularly care for your statement regarding the elite and my "closing my eyes". I'm sure I was suppose to:
_____________________________
read between the lines
_____________________________

And what was with the "honesty" statement you made??

I only responded to your claims. If you get frustration from that, thats not my problem. You can debate me on my replies though. Thats on substance.

ps: Those assumptions you make about my contacts (3 years experience in HR, for example), are just laughable. You might want to think that you know to whom I talk, but you make less of a fool of yourself by just asking to me directly (you have my MSN, btw: I reinstalled it), instead of publicly guessing as you frequently portray on DF.

If you have a dispute, you know where to find me.

Bora Bora wrote:

Where is it a clearcut situation that I said business owners who have a complaint should shut up, etc. Those are your words. FYI there are many business organizations here - for locals and expats, and they have worked hard to improve the way business is run here. If you were here for 12 years you would know that. But since you haven't even visited Dubai, that's information you wouldn't have. Actually, if you were here for 12 years, you would be saying an entirely different thing only because it would have been based on actual knowledge.

The majority of local sponsors are just that - sponsors!!! There are a small minority who did take advantage of their sponsoring businesses, but the numbers have lessened over the years. Stop making the sponsors out to be the bad guys. It's the business owners - expats - who put business practice in place. If your contacts are so unhappy with the sponsor they have, they can change sponsors. There is nothing written in stone saying that they can't. As for the free zones, google it. There are plenty of businesses that are operating with a free zone business license with permission to operate outside the designated free zone. There are many companies registered with the DIFC - which is a free zone - that operate on SZR, which is outside the designated free zone.

No offense Rob, but you don't know all there is to know about Dubai. Having said that, neither do I, but having lived here for as long as I have, I think my information is more reliable than yours and Herve, who was here for a few years selling his BS to Nakheel.

There is a saying: a little bit of knowledge can be a dangerous thing. If you want honesty then you need to stop defending what you think you know and support what you actually know. Stick to what you do know - aerospace, and leave Dubai to the Dubains.

Borabora.......What matters is not the number of years you have in Dubai, but what business experience you have.
You are confusing general and exception, reality is that according to the laws established by Dubai government, and my own experience, at least 51% participation of UAE citizens is the basic requirement for setting up any business "in" Dubai. period.......You are using a few exceptions to make your point.
You dont seem to understand that any freezone company or any companies operating in them are legally treated as foreign companies or companies operating outside the UAE. If they want to operate inside the UAE they need UAE citizen sponsorship.
And as of selling BS, send your comments to Nakheel, they are the ones who sold major BS, Palm Jebel Ali for instance.

herve wrote:

Bora Bora wrote:

Where is it a clearcut situation that I said business owners who have a complaint should shut up, etc. Those are your words. FYI there are many business organizations here - for locals and expats, and they have worked hard to improve the way business is run here. If you were here for 12 years you would know that. But since you haven't even visited Dubai, that's information you wouldn't have. Actually, if you were here for 12 years, you would be saying an entirely different thing only because it would have been based on actual knowledge.

The majority of local sponsors are just that - sponsors!!! There are a small minority who did take advantage of their sponsoring businesses, but the numbers have lessened over the years. Stop making the sponsors out to be the bad guys. It's the business owners - expats - who put business practice in place. If your contacts are so unhappy with the sponsor they have, they can change sponsors. There is nothing written in stone saying that they can't. As for the free zones, google it. There are plenty of businesses that are operating with a free zone business license with permission to operate outside the designated free zone. There are many companies registered with the DIFC - which is a free zone - that operate on SZR, which is outside the designated free zone.

No offense Rob, but you don't know all there is to know about Dubai. Having said that, neither do I, but having lived here for as long as I have, I think my information is more reliable than yours and Herve, who was here for a few years selling his BS to Nakheel.

There is a saying: a little bit of knowledge can be a dangerous thing. If you want honesty then you need to stop defending what you think you know and support what you actually know. Stick to what you do know - aerospace, and leave Dubai to the Dubains.

Borabora.......What matters is not the number of years you have in Dubai, but what business experience you have.
You are confusing general and exception, reality is that according to the laws established by Dubai government, and my own experience, at least 51% participation of UAE citizens is the basic requirement for setting up any business "in" Dubai. period.......You are using a few exceptions to make your point.
You dont seem to understand that any freezone company or any companies operating in them are legally treated as foreign companies or companies operating outside the UAE. If they want to operate inside the UAE they need UAE citizen sponsorship.
And as of selling BS, send your comments to Nakheel, they are the ones who sold major BS, Palm Jebel Ali for instance.

Herve, you had ONE business experience in the capacity of an employee.

Let's take DIFC, a designated free zone. I worked for a company that was registered with DIFC, had offices outside the free zone and did business IN Dubai and outside of the UAE, and no single UAE citizen was involved with the sponsorship. Technically, DIFC was the "sponsor", but had 0% participation in the firm. DIFC - a company - replaced the need for a UAE citizen for sponsorship, as does all other free zones. International companies that want to do business IN Dubai register with the DIFC, which would obviously make them "foreign" companies, as the DIFC was established for foreign registration. There are also companies that are independent with one office, without an international presence, established and set up in Dubai and registered with the DIFC. This is true in other free zones.

The company I worked for operates under the rules and regulations as set out by DIFC as they pertain to the number of people a firm can sponsor, they handle the sponsorship of employees, and the firm has to comply with the employment rules and regulations at the minimum (which every company has), but there are no rules that dictate as to how the firm runs it's business or puts in place limitations as to where they can conduct business. Half of the firm's client base was in Dubai!! With regard to certain employment rules and regulations, DIFC outlines what the MINIMUM is for employees of companies registered wtih the DIFC with regard to sick time, extended leave, end of service benefits. The company may choose to go over and above the DIFC rules and regulations as they pertain to employee benefits, but they cannot go below them.

What purpose does it serve any company to register in a free zone merely to do business outside of the UAE? Are you saying that all those companies in Jebel Ali do not do business in the UAE, as they are located and registered in a free zone?

One of the big international firms that is registered at Dubai Media City, a designated free zone is Microsoft - are you saying that they cannot do business in the UAE and that all their business is outside of the UAE because they are registered in a free zone? I would think Microsoft (and any other international company) would actually set up offices in the locations outside of the UAE that they want to do business, rather than establish themselves in Dubai in order to do business outside of the UAE. If I wanted to sell a product or service of my own creation, I could easily go to DMC, obtain a business license, rent an "office" at DMC, which is really space for two people, and open shop and sell my product or service. I know of two women who opened a recruitment office there and worked out of DMC. They recruited for companies in Dubai, not outside the UAE.

I guess time and experience is a great teacher, both of which I have.

rudeboy wrote:

herve wrote:

rudeboy wrote:dont know why there is such a big fuss about local partnership. if you dont want to be sponsored by a local just go to a freezone and setup your own company. simple as dat

RB, this is misconception, the free zone allows you to do business only "through" Dubai, not "in" Dubai.
Let' s say you want to sell shoes in Zimbabwe, no prob, you can do it through a free zone in Dubai, if you want to sell shoes in Dubai, you cannot, the business has to be outside the freezone, owned (51%) and sponsored by a National to whom you have to pay a significant fee for doing nothing.
Have you seen business retails or services in Freezones? Do you think people in Dubai can go in the freezones to buy a book, grocery, rent a car or see a movie?

ok i dont know how its done in dubai but i got a company in Sharjah Freezone and then I have a branch of Sharjah Freezone company outside in Sharjah. I dont have a share with a local or anyone else. it is 100% owned by me and you can sell outside of the freezone easily.

Lets say my customer is Dubal and I am based in Sharjah Freezone I can still sell my products and services to them as long as everything is done within the law and all the paperwork is done.

So I dont know who told you cant sell from a Freezone to outside of the freezone.

RB, according to the official rules Herve said it correctly (at least for Jebel Ali Freezone). See below.

Rules and regulations for JAFZA;

Jebel Ali free zone companies may be formed within Jafza as the following types of business (companies):

Free Zone Establishment (FZE) and Free Zone Company (FZCO): FZE and FZCO applicants can avail of Jafza’s unique offer of forming a company as a separate legal entity. A FZE formation can be with a single shareholder with a minimum capital of AED 1 million. An FZCO can be formed with 2 to 5 shareholders with a minimum capital of AED 500,000.

Branch Company: Companies having valid registration and license outside Jafza can apply for the formation of a branch Company in Jafza.

Special Status Non-Resident Offshore Companies: Jafza, under Jebel Ali Free Zone Offshore Companies Regulations 2003, allows the formation of an offshore Company by individuals or corporate bodies, as a non-resident company, having a corporate legal entity.

Registered Office & Branches

14. Each Free Zone Company shall at all times have an office in the Free Zone to
which all communications and notices may be addressed. Details of such office,
which shall be its registered office, and of any change of address, shall be
notified within 7 days to the FZCO Department and details thereof promptly,
entered in the FZCO Register. Moreover, and subject to the Jebel Ali Free Zone
Authority the FZCO can open a branches in and out side Jebel Ali Free Zone.

An FZCO (Freezone Company) can be formed with 2 to 5 shareholders with a minimum capital of AED 500,000.

Setting up a company
Q.What is the minimum capital required for establishing a company in the Free Zone?
A.There is no minimum capital requirement asked for by Jafza if you are merely setting up a branch of your company. However, if you are establishing an FZE or FZCO, then the minimum capital requirement is Dhs. 1 million (US $270,000) or Dhs. 500,000 (US$135,000) respectively.

Licences
Q.Can I have a licence from Jafza but operate from Dubai or another Emirates?
A.The Licence issued by Jafza is valid for operating your business only inside the free zone territory. You cannot use this licence to set up a business in any of the other Emirates. Goods maybe sold to other Emirates through distributors.

Q.Can I establish a branch of my own company?
A. Yes, many companies establish subsidairies in the Free Zone.

Q.Can I import and export goods?
A.Yes, subject to your particular licence. Jafza companies operating in the Jebel Ali Free Zone are amongst the major re-exporters in the region. No duties imposed if goods are imported and exported within the Free Zone.

Sponsorship

Every business in Dubai needs a “sponsor” except if you want to open a business in a freezone in Dubai. Usually, to open a business in a Dubai freezone requires a big capital. It is not a place for small businesses. The sponsor MUST be a UAE national. A strong sponsor with lot of contacts and influence can be very useful for the business to start and run.

You have to pay an ongoing fee to the sponsor. There is a big chance that the sponsor may demand a percentage of the profit in addition to the fee.

Once you have acquired a sponsor, you have to register your business and obtain the Trade License. There are different rules for different business types. For an example, there are specific hygiene related rules to start and run a restaurant. It is not very easy to register a business in Dubai. You may have to seek your sponsor’s help to get your business registered. Language is a major barrier when dealing with government employees. Otherwise there is a big chance that the application will be rejected.

This can't be any more clear.

G agreed buddy you know a little more than your avg joe about dubai but you don't know it all and then getting all defensive about what could be called inaccurate info at best from some internet friend ?

The 51% local ownership law is there but only on paper and there are but very few and isolated cases where someone gets a street thug as a sponsor and that guy later gets greedy when the bussiness prospers and things get a little complicated.

Majority of the time its judt smooth sailing the local sponsor gets his money yearly/monthy etc etc and he signs a few papers once a year and thats about the end of the local partners contribution. Yes this could be classified as a fee or tax but its up to you and basically you can decided how much you decide to pay. If you find a local charging too much. Ditch him and get another.

My dad's bussiness has been in exsitance here since 1979 here and his sponsors in Shk Mohd's now ex secetary. Once a year, every year my dad visits his office and gets the renewal papers signed and thats its and has been the this way since 79. Maybe once or twice in almost 30 years has he asked for permission to have a visa issued on out trade license. Nothing else I can recall.

And I know of many of many bussiness owners new and old, including myself and this is always the case. I personally got jacked as I ended up with a greedy fool as a spomsor though. We signed a 5 year sponsorship contract thiniing that this would save time and money not having to renew the contract every year.

But when we wrapped up after a year he demanded full payment for the remaining 4 years and I never bothered to check the legality of his claims, as we all who live here in the UAE know how much fun that can be and was just shuted up by having some crumbs thrown at him.

Infact I know many small bussiness who have been literally operating for decades with 100% local sponsorship marked on the trade license and go about bussiness as usual without any probs.

Some few cases a local will go into a proper bussiness partner ship in which he is involved as well as his own capital also invested. Then thats a total diffrent story altoghter.

So don't read more into or add more fanfare to something than there actually is. As if what you say or think is true there would be no expats comming here and opening up shop. So try to put 2 and 2 toghter in a logical way which you so seem to be proud of.

desertdudeshj wrote:G agreed buddy you know a little more than your avg joe about dubai but you don't know it all and then getting all defensive about what could be called inaccurate info at best from some internet friend ?

Business owners (2). How many times do I have to repeat that to get you read it right.

The 51% local ownership law is there but only on paper and there are but very few and isolated cases where someone gets a street thug as a sponsor and that guy later gets greedy when the bussiness prospers and things get a little complicated.

Majority of the time its judt smooth sailing the local sponsor gets his money yearly/monthy etc etc and he signs a few papers once a year and thats about the end of the local partners contribution. Yes this could be classified as a fee or tax but its up to you and basically you can decided how much you decide to pay. If you find a local charging too much. Ditch him and get another.

My dad's bussiness has been in exsitance here since 1979 here and his sponsors in Shk Mohd's now ex secetary. Once a year, every year my dad visits his office and gets the renewal papers signed and thats its and has been the this way since 79. Maybe once or twice in almost 30 years has he asked for permission to have a visa issued on out trade license. Nothing else I can recall.

And I know of many of many bussiness owners new and old, including myself and this is always the case. I personally got jacked as I ended up with a greedy fool as a spomsor though. We signed a 5 year sponsorship contract thiniing that this would save time and money not having to renew the contract every year.

But when we wrapped up after a year he demanded full payment for the remaining 4 years and I never bothered to check the legality of his claims, as we all who live here in the UAE know how much fun that can be and was just shuted up by having some crumbs thrown at him.

What you experienced is my point. If you are dedicated to your business but limited in survival because of malicious sponsors. Each his own cake of course, but I'm not affraid to bark about it. Some sponsor clearly charge more than they contribute. Hence it can be a huge cost for a business to operate.

But you have a point. Many do survive with good sponsor. But still there is a need for a service charge on consumption and beverage...for what? top profits?.. another reason to address the service charge.

Infact I know many small bussiness who have been literally operating for decades with 100% local sponsorship marked on the trade license and go about bussiness as usual without any probs.

Some few cases a local will go into a proper bussiness partner ship in which he is involved as well as his own capital also invested. Then thats a total diffrent story altoghter.

So don't read more into or add more fanfare to something than there actually is. As if what you say or think is true there would be no expats comming here and opening up shop. So try to put 2 and 2 toghter in a logical way which you so seem to be proud of.

I agree with you in general. Easy with the disdain fella. I'm just being sharp here.

Thats the problem dude, there is a very fine line between being confident to being over confident, cocky and an absolute d!ck, and what you might precieve to be your sharpness and wit is threading that very fine line too close too the d!ck side.

Anyways back to the OT. Unless peopel really question these charges and not just pay up ( like me wife ) for the sake of not looking cheap and creating a scene They will keep charging. Well atleast its law now or atleas we know about it and hope this is enforced as stricly as they are saying in the local media.

desertdudeshj wrote:Thats the problem dude, there is a very fine line between being confident to being over confident, cocky and an absolute d!ck, and what you might precieve to be your sharpness and wit is threading that very fine line too close too the d!ck side.

Over a service charge discussion? Are you kidding me?

Your replies are all waiving my point away and you find it odd that I defend the owners in their viewpoint. Get real DD.

Enough of that personal crap.

RobbyG wrote:Over a service charge discussion? Are you kidding me?

No, from almost all your discussions ever since you made a DF comeback.

desertdudeshj wrote:

RobbyG wrote:Over a service charge discussion? Are you kidding me?

No, from almost all your discussions ever since you made a DF comeback.

Well, you can't like everybody right? I consider myself erased from your 'friend list'...

I'm always sharp on paper. Somewhat softer in person perhaps. Get used to it!

Hi guys I was just checkin in. I know its been a long time. I can't beleive this loser is still lurking around and ****** all over the forum. What baffles my mind is he has so much time to sit all day in front a computer all day long. Just imagine how much he posts on a forum that has nothing to do with Holland, what else he is doing for the rest of the day. He probably has never seen the sun or kissed a girl.

Back to original topic and now eateries are trying a new tactic! Instead of a 'service charge' on the bill, they're adding a 'cover charge'.

Losers!

Chocoholic wrote:Back to original topic and now eateries are trying a new tactic! Instead of a 'service charge' on the bill, they're adding a 'cover charge'.

Losers!

Would like to know what the "cover charge" actually covers.