“Human Resources and Emiratization”: Incentives for Small and Medium Enterprises

Sami Abdel Raouf (Dubai)

The Ministry of Human Resources and Emiratization decided to provide incentives to small and medium-sized enterprises “members of youth business support institutions”, with the aim of supporting these enterprises and enabling them to grow and develop according to a number of conditions and controls for granting these incentives and the ministry announced the classification of small or medium enterprises within enterprises. The first category is for a period of 5 years from the date of first issue of the facility permit, and a maximum of 5 years for a single employer.
The Ministry has set out 5 conditions that must be met for this to happen, which are: that the owner of the facility or all its partners are citizens of the United Arab Emirates, and that the small or medium-sized business has membership of one of the in the state approved youth project support institutions, and the owner of the facility must manage it himself or be led by a civic leader, and the owner of the facility should not have facilities he owns or partners in that are registered with the Ministry and subject to any violations in addition the owner of a small or medium-sized plant should not have more than 5 plants that he owns, participates in or is a service agent for.
The Ministry stated in Ministerial Decision No. 251 of 2022, on incentives for small businesses, that the classification of a small or medium-sized enterprise is canceled and reclassified according to the criteria that apply to the classification of enterprises, if one of the following 6 cases is available , the first of which is a violation of any of the previously mentioned conditions.
The classification of a small or medium-sized enterprise also lapses if the enterprise fails to pay wages to workers according to Ministerial Decision No. 34 of 2022, and the enterprise employs its employees for others without permission from the Ministry, or enterprise employs workers from other enterprises without permission from the Ministry or proof that the company’s business relationship with its workers is fictitious.
Cases of cancellation of the classification of the facility within small or medium-sized enterprises include the sale of the facility or the transfer of its ownership to another person without notifying the youth project support institutions or notifying the ministry, as well as if it is demonstrated to the ministry that the small or intermediate facility is managed by someone other than the owner of the facility or a citizen manager, in addition to If the number of its workers exceeds 50 workers.

Licensed Legal Entities
The ministry stated that youth project support institutions are institutions, programs, foundations or other legal entities approved by the competent authorities of the state, with the purpose of supporting medium and small projects led by citizens, and stated that small businesses relate to the facility that is owned and managed. of a citizen. He is a member of the state-approved youth project support institutions, and the number of its workers does not exceed 15.

Classification of private companies
She stated that medium-sized enterprises are engaged in the business that is owned and managed by a citizen who has membership of the youth business support institutions approved in the state and the number of its employees is at least 16 and not more than 50 Ministry of Human Resources and Emiratization classifies private companies into 3 categories, namely: the first The second and the third, and in this new classification, depends on the extent to which the companies comply with the laws, the wage security system, the protection of labor rights, the policy of promoting cultural and demographic diversity in the country and decisions that regulate the labor market. Most of the companies based in the country that fulfill all these obligations will be in the second category. Classification of small or medium-sized enterprises within the first category leads to a significant reduction in the fees of 13 services of the Ministry of Human Resources and Emiratization, and the reduction rates in some fees reach 80%, while these fees increase if the facility is in the second category , to rise more If it is in the third category.
Among the most prominent reduced fees for the first category are the application fee for a work permit of 50 dirhams, 250 dirhams for issuing a work permit for two years, and 250 dirhams for a work permit for one work assignment.
As for the second category of companies, fees will be imposed on them: 50 dirhams for applying for a work permit, 1200 dirhams for issuing a work permit for two years and 250 dirhams for issuing a work permit for one work assignment.
While the third category of private companies, the fees will be higher than the previous two categories, for example, you will pay 50 dirhams for an application for a work permit, 3450 dirhams for issuing a work permit for two years, and 250 dirhams for issuing a work permit for a work assignment.

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