Many international businesses want to enter the UAE, but dealing with the complicated legal aspects of importing goods and/or employing local workers can be time-consuming and often difficult. It’s here that IOR and EOR Services UAE provide a solution.
Bright Way Logistic Services LLC offers these specialised solutions so that businesses can operate successfully in the UAE without needing to establish an actual office or navigate through various complicated labour and customs laws on their own.
What are IOR and EOR Services?
In order to understand the process correctly, it is important to know what the terms IOR and EOR mean.
1. Importer of Record (IOR) UAE
The term ‘importer of record UAE’ refers to a person or business entity who has been designated with responsibility for importing goods into the UAE. These responsibilities include processing customs clearances, paying taxes and duties, and ensuring that all necessary documentation complies with relevant UAE laws.
2. Employer of Record (EOR) UAE
The term ‘Employer of Record UAE’ refers to an organization that is authorized by the employer to employ people in the UAE. The role of the EOR is to handle employee payroll, visa applications, health insurance, and compliance with the country’s labor laws. The employee’s daily work is managed by the employer, who also oversees the employees.
With the ability to utilize the IOR EOR process UAE, it is possible to quickly establish operations in Dubai, Abu Dhabi, or any of the other emirates, enabling potential business development within a matter of days, rather than the months it would take otherwise.
The Step-by-Step IOR Process (Importing Goods)
In order to sell products in the United Arab Emirates (UAE) without having a local trade license, you must take the following steps –
1. Identify a Reliable Provider
First, find a logistics provider such as Bright Way Logistics LLC that acts as your legal presence in the UAE. You will be required to enter into a service contract that details the obligations of both parties to ensure compliance with all applicable laws.
2. Classify Products and Verify Compliance
The UAE has strict regulations regarding product entry. Your Importer of Record (IOR) partner will use the Harmonised System of Classifications (HS) to classify your products and determine if they need special approvals (such as electronics, medical devices, and/or foodstuffs).
3. Preparation of Shipping Documents
Preparing Shipper’s Documentation – Your IOR Service Provider will assist in compiling the shipper’s documentation as specified by the UAE Ministry of Finance. The following standard documents are required –
- Commercial Invoice – Addressed to the Importer of Record.
- Packing List – Indicates weight and dimensions (actual size) of each box.
- Certificate of Origin – Evidence of production in that region.
- Air Waybill/Bill of Lading – Documentation for shipment purposes.
4. Duties and Customs Clearance
After arrival at Jebel Ali (or Dubai International Airport), the duty payment for the shipment is made, and the Customs declaration is submitted by the Importer of Record UAE.
5. Delivering the Products
Upon clearance, the IOR partner will facilitate the shipment to your storage location, a local distributor, or directly to your customer.
The Step-by-Step EOR Process (Hiring People)
You can hire sales and IT professionals in the UAE without opening a branch office by using the EOR process.
1. Identification of Talent
Finding a suitable candidate for the position requires careful consideration and planning. The first step to hiring is to provide the selected candidate’s information to the employer of record UAE.
2. Contract Creation
The employer of record will then create a contract that meets the latest UAE Labour Law requirements (Federal Decree-Law No 33 of 2021). Typically, this contract will be in Arabic and English and will outline the salary, allowances (housing/transport), and end-of-service gratuity that will be provided to the employee.
3. Visa and Labor Card Processing
Processing of visa and labour cards for an employee is an essential process for the employer of record. The employer of record will handle all aspects of an employee’s immigration processes. This includes submitting an application for an entry permit, completing the medical fitness test, and issuing the Emirates ID. In essence, the employer of record serves as the “sponsor” for an employee’s residency visa.
4. Onboarding and Insurance
Health insurance is mandatory in the UAE. The employer of record will ensure that the employee has access to a compliant health insurance policy and that he/she is registered on the Wage Protection System (WPS). The WPS is a government-mandated system that guarantees that all employees are paid in a timely manner.
5. Monthly Payroll and HR Management
The employer of record will process payroll monthly for all employees and deal with any HR issues that may arise if an employee has a problem at work. Upon termination of employment, the employer of record will calculate the amount of gratuity owed to the employee.
Why Choose Bright Way Logistic Services LLC?
Middle East market expertise is a necessary component to effectively navigate that market, and Bright Way Logistic Services LLC has broadened the options available for customers in terms of using a third-party IOR/EOR provider to simplify their process within the UAE. Below, we’ve listed several reasons why businesses look to Bright Way for this support –
1. Timely Shipment Clearance and Onboarding – Bright Way can clear shipments and onboard employees at a pace that is much quicker than what a company would experience if it attempted to handle it independently.
2. Cost Savings – By engaging Bright Way, you will eliminate the need to incur the substantial financial commitment associated with legal corporation establishment, renting office space, and paying sponsorship fees locally.
3. Liability Protection – Bright Way provides you with protection from the risk of incurring legal liability with respect to customs errors and labour disputes, as the legal liability associated with those events rests solely with Bright Way.
4. All-Inclusive Solutions – Bright Way is a leading provider of logistics solutions. They offer a complete range of solutions to support Industrial and Commercial projects.
Conclusion
Although the UAE provides ample opportunities, there are sometimes many challenges due to regulatory issues. By taking advantage of IOR EOR services UAE you can use these services instead of dealing with administrative obstacles, enabling you to concentrate on developing your business. The IOR EOR process UAE will be the most effective way to achieve your business objectives within the Middle East. Utilizing IOR EOR services allows you to focus on developing your business rather than navigating through complex regulatory processes. Working with a partner such as Bright Way Logistic Services LLC will make entering the UAE easier for businesses from around the world who want to expand into the Arabian Peninsula.