Entrepreneurs, members of the Abu Dhabi Chamber of Commerce and Industry (ADCCI), have demanded that they be exempted from the fines of renewing their licenses and equaling the fees of newly established businesses, stressing that they are encouraged and motivated because they continue in the market despite the challenges.
They assured Emirates Today that their delay in renewing the required licenses and papers is sometimes due to a shortage of liquidity, or delayed payment of their due payments to other parties, pointing out that the fees imposed on renewing the license on time are at least 12,000. The fees are up to 15,000 dirhams, for one year only, along with rents, workers' salaries and others, while the license fees for new works do not exceed 3000 dirhams for two years. They pointed out that there is a fee under the name «subscription in the Abu Dhabi Business Directory» worth AED 2,650, paid annually, and is a condition for renewal of the license, which does not benefit the employers.
On the other hand, the National Program for Small and Medium Enterprises, affiliated to the Ministry of Economy, confirmed that there are initiatives taken at the local and federal levels to ease the burden on modern and old employers, noting that there will be decisions soon to include a number of initiatives and decisions that support this vital sector of the economy, covering Financing, incentives and others.
Market conditions
In detail, the investor (HA), who mentioned only the initials of her name, said that she has been working in the market since 2010 in the field of transport, and about two years ago is facing difficulties due to market conditions, which renewed its license for about a year and a half, which in turn caused The accumulation of problems due to the cessation of work for non-renewal, as well as the absence of any banking or government transactions, stressing that lack of liquidity is the main reason for delaying the renewal of any small employer. She called for exempting entrepreneurs from fines for delays, and give them the opportunity to renew their licenses, as long as they have liquidity, especially since the easing of fees did not include the old employers, and only the counterpart newly established. “The cost of renewing any small business license is a minimum of 12,000 dirhams and up to 15,000 dirhams,” said entrepreneur Ali M., “and there is a delay in imposing fines on each item of the license, causing physical fatigue for the owner.” He pointed out that there are signs of stagnation in the global economy, so responsible authorities should encourage employers to continue in the market by reducing or eliminating fines. He added that the newly established works in Abu Dhabi cost only 3000 dirhams for licenses, and does not require an office or headquarters of the company, and the license extends for two years, unlike the old licenses of one year, and costs with the rent of the place at least 25 thousand dirhams annually, stressing that those who continue The market also needs encouragement, as it faces the same challenges as new companies, and perhaps more.
Commercial licenses
For his part, the entrepreneur (Omar S.), said that the lack of liquidity is the main reason for the delay in the renewal of commercial licenses, and in many times the delays of payments due to other parties behind it, that is, the employer is not defaulted, in addition to the expiration of the license Any dealings with banks and therefore how to take financing for the conduct of the business cycle or renewal or other. He added: «We hope that the government agencies look at us a similar view of the newly established companies, and support to reduce fees and raise fines», pointing out that market conditions encourage the stimulation of business and ease the burdens, especially old licenses, because they have links to the market and dues and obligations difficult to continue with this way .
Abu Dhabi Guide
In turn, the entrepreneur (Salem) said that «of the fees prescribed for entrepreneurs, the fee to join the Abu Dhabi electronic directory of companies, which amounts to 2650 dirhams, which many entrepreneurs do not know its importance or benefit from it. It is a guide that includes details of each company, and is obtained annually, a service that does not benefit the employer himself, but is for those who want to inquire about the company, why not be borne by the beneficiary or be free? ».
He added: «We ask the responsible authorities to reduce the fees, and to equal the old licenses with (new) in the reduced fees, in addition to the cancellation of delay penalties of all kinds, they are fees (incapacitated), and bear the small investor a big burden».
Tax
He continued: «It is also important to reconsider the fines imposed for delay in filing tax returns or delay payment of the value of the tax, and must be given the investor a period of compliance without fines or pressure increase its burdens, there is no investor delays only for compulsive circumstances, such as lack of liquidity or Delayed or due to the decline in the return on his business ».
Relieve burdens
Dr. Adib Al-Afifi, director of the National Program for Small and Medium Enterprises at the Ministry of Economy, a member of the technical committee formed by the Central Bank, the Ministry of Finance, the Ministry of Economy and the Ministry of Youth, said: “There are local initiatives to reduce and alleviate the burdens on business at both federal and local levels. These included the reduction of some fees and fines, and benefited from modern work and old work in reducing part of the fees, pointing out that «the cost of small businesses vary depending on the type of activity and the emirate in which».
He explained that there are imminent decisions by the Committee, which includes the Central Bank and the Ministry of Finance and the Ministry of Economy and the Ministry of Youth, including a number of initiatives and decisions that support this vital sector of the economy, covering all aspects related to finance, incentives and others.