+971 4 4542366 +971 554413566

Flyingcolour logo Flyingcolour logo2

  • Home
  • UAE Company Setup ›

    Business Setup Overview

    • Business Setup Overview of UAE
    • Educate yourself about Jurisdictions in UAE

    Mainland Business Setup

    • UAE Mainland Overview
    • Mainland Professional Company
    • Mainland Limited Liability Company
    • Mainland Industrial Company
    • Mainland Branch/ Representative for Foreign Company
    • Mainland GCC Owned Company

    UAE Mainland

    • Dubai Mainland
      Dubai Mainland Business Setup Overview Business Setup Al Barsha & Tcom Business Setup Al Quoz & DIP Business Setup Al Qusais Business Setup Bur Dubai Business Setup Business Bay Dubai Business Setup Deira Dubai
      Business Setup Downtown Dubai Business Setup Dubai Marina & JBR Business Setup Dubai Media City Business Setup International City Business Setup New Dubai Business Setup Sheikh Zayed Road Business Setup Jumeirah Beach Road & Al Wasal Road
    • Abu Dhabi Mainland
    • Ajman Mainland
    • Sharjah Mainland

    UAE Freezone

    • Freezone Business Setup Overview
    • Dubai Freezone
    • Abu Dhabi Freezone
    • Ajman Freezone
    • Sharjah Freezone
    • Ras al Khaimah Freezone
    • Umm al Quwain Freezone
    • Fujairah Freezone

    UAE Offshore

    • Offshore Business Setup Overview
    • Dubai Offshore
    • Ajman Offshore
    • RAK ICC Offshore
  • Taxation ›

    Taxation

    Expert taxation and financial management solutions

    VAT Services

    Business Accounting Services

    Financial Forecast & Projection

    Book-keeping Services

    Accounts Payable

    CFO Services

    Inventory Verification Service

    Tax Residency Certificate in UAE

    Payroll Management

    Month End Financial

  • PRO Services ›

    PRO Services

    Professional support for all your business needs

    PRO Business Services Overview

    PRO Services

    MEA & MOFA Attestation

    Golden Visa

    Property Visa

    DUBAI Customs Registration

    Assistance in Bank Account Opening in UAE

  • DIFC Formation ›

    DIFC Formation

    Pioneering Excellence in Financial Foundations.

    Overview

    DIFC Foundation

    DIFC Prescribed Company

  • Blogs ›
    • Categories
    • Industries

    About Business

    Building & Engineering

    Educational Activities

    Financial Activities

    Gas & Energy

    Heavy Industries

    Light Industry

    Medical

    Nutrition & Food

    Personal Household

    Print & Media

    Real Estate

    Sports

    Activity Group: Transport

    Various Activities

    Business Setup

    Company Formation

    Dubai Business Laws

    Entertainment & Related

    Freezone Company Formation

    Offshore Formation

    Research Article

    UAE Business News

    Accounting & Bookkeeping

    Business Setup Dubai

    Cloth Pressing Business

    Construction

    Crypto Business

    Decoration Design Business

    Dry Cleaning Business

    Education

    Energy and Mining

    IT

    Financial Services

    Fintech

    Healthcare

    Healthcare Industry

    Hotel and Hospitality

    Home Based Business

    Manufacturing

    Media and Entertainment

    Online Business

    Real Estates

    Restaurant and Cafe

    Shipping

    Telecommunication

    Trading

    Transport

    Travel and Tourism

    Utilities

    Yoga Centre

  • Contact
Calculate Your Business Setup Cost in UAE

Beginners Guide: Financial literacy for Entrepreneurs

  • Home
  • Blog
  • Beginners Guide: Financial literacy for Entrepreneurs
  • Tue 29 Mar 2022 | By : Flyingcolour
blog-post-image

Entrepreneurs need to understand and learn how to manage their finances. The finance record can easily make or break the business over time. Financial literacy helps entrepreneurs to build their business faster and in an efficient manner. The understanding of the finances leads to providing an ideal solution which means the company can grow at a faster rate. The expenses aren’t just limited to the cost of the license as there are a series of expenses that play an important role and are necessary each day to start the business. There are crucial expenses that users have to consider like paying rent or lease of the space, employee salaries, marketing budget, operational costs, and the list goes on. When setting up a business join hands with FlyingColour Business Setup Services for smooth transactions and make an informed decision that can save cost and also help you manage the finances in a better way possible. Accounting is majorly ignored but it plays a major role in the functioning of the company. We provide a 360-degree approach and provide consultation in terms of pre-setup compliance to budgeting & forecasting to documentation to financial consultation to post setup compliance.

What is Value Added Tax & Importance of Bookkeeping?

Value Added Tax is one of the common taxes used in the UAE and it was first introduced in 2018 on 1st January. The VAT is implemented on the consumption tax of goods and services which is applied to all the goods exchanged in the territorial area of the UAE. Federal Tax has made the VAT eligibility criteria that are dependent on the company's total turnover and total taxable expenses. At the time of setting up business in the UAE, you are entitled to register for VAT under two categories such as total sales and total expenses. This is inclusive of the VAT amount paid for the business expenses such as machinery and the pieces of equipment. In UAE there are two types of VAT registration services in UAE such as

  •   Mandatory VAT Registration.
  •   Voluntary VAT Registration.

What is Mandatory VAT Registration?

The mandatory VAT registration is for individuals and companies that have an annual turnover of around AED 375,000. If the business falls in this category, you are entitled to get a Tax registration number mandatorily to conduct the business in UAE. The business should be eligible for Mandatory VAT Registration if you fall under these categories i.e.

  1. The imports and turnover are more than AED 375,000 in 12 months.
  2. The business turnover and import in the next 30 days will exceed more than AED 375,000.

What is Voluntary VAT Registration?

The individuals and companies that have a taxable turnover of more than AED 187,500 and less than 375,000. If you have business returns, you may apply for the VAT registration and get a TRN voluntarily. If you fail to do so, there aren’t any legal issues if the turnover stays under AED 375,000. When setting up business in the UAE, FlyingColour Business Setup Services takes care of all the services i.e. accounting, immigration, tax filing, and more. To learn more about financial obligations before or during the setup of a business, contact our team of experts.

Leave a reply

  • flyingcolourbs
  • 3000+ Real Customer Reviews on Google.

  • Click here to Read.

Recent Posts

Get A Kiosk License in Dubai
Wed 04 Jun 2025
Start A Trading Company in Dubai Mainland
Fri 30 May 2025

Contact Us

Our Success

Our Success lies in honestly and integrity which are used as motivational factors to inspire us to arrive at success as well as prosperity for the company plus our customers.

18,000

+

Global Clients

20

+

Years of Experience

175

+

Team of Professional

High Tech


Real Time Support

Ready to take it a step further?

You can schedule a free call with our expert consultants

Do you have questions or want more information ?

Phone : +971 4 4542366

Mobile or Whatsapp : +971 554413566

Email : info@flyingcolour.com

Keep connected

Get updates by subscribe our newsletter

About Us
  • We are a leading consulting firm providing Company formation, Accounting & VAT and immigration services located in Dubai - UAE ...Read more
  • flyingcolourbs
  • 3000+ Real Customer Reviews on Google.
  • Click here to Read.
Popular Services
  • Jebel Ali Offshore Company Setup
  • Business Setup in Dubai Free zones
  • Limited Liability Company
  • Professional Company Setup
  • Bank Account Opening in Dubai
  • Offshore Company Formation
  • Dubai Mainland Company Setup
  • Trade License
  • Miscellaneous
  • Flyingcolour® Careers
Quick Links
  • Mainland Company Formation
  • Free Zone Company Formation
  • Offshore Company Formation
  • VAT Registration & Return Filing
  • Economic Activity Guide for UAE
  • VAT Consultancy Services
  • Customer Grievance Policy
  • Terms and Conditions
  • Privacy Policy
Contact
  • Head Office:
  • Office No.2608,2609 & 2610
  • Concord Tower Opposite Palm Jumeirah Dubai Media City,
  • Dubai. UAE.
  • DIFC Office:
  • Unit GV-00-04-03-BC-44, Level 3,
  • Gate Village Building 04, PO Box 84059,
  • Dubai. UAE.
  • payment

©2004 - 2025 Flyingcolour® . All rights reserved