- Newsletter
- October 3, 2017
The Department of Industrial Policy and Promotion (DIPP) has introduced the Consolidated Foreign Direct Investment policy for 2017-2018 with effect from 28th August 2017.
The changes brought over by the Ministry are:
- Abolition of FIPB: The DIPP has abolished the Department of Foreign Investment Promotion Board and the further FDI proposals and sanctioning will be handled by the new administration/ ministry. Competent authorities that is the concerned department or authority shall manage the approval of foreign investments under current FDI and FEMA rules. The Competent Authorities will examine the existing proposals by following the guidelines set by the DIPP.
- Start-up Foreign Direct Investment: The ministry has allowed 100% FDI’s in start-ups and as a first have listed them in a separate section. Start-ups have given the right to issues equity or equity-linked instruments as well as debt instruments to foreign venture capital investors. They can also issue convertible notes to non-citizens subject to certain terms and conditions.
- Lenient investment of FDI in some sectors:
- Agriculture and animal husbandry: 100% FDI in apiculture, conditions relaxed for animal husbandry, aquaculture, apiculture, and pisciculture.
- Manufacturing sector: 100% FDI through Government route for retail trading and e-commerce for foods manufactured or produced in India.
- Defence industry: 100% FDI allowed.
- Broadcasting carriage services: Infusion of fresh investment beyond 49% requires Government approval.
- Airports(existing projects): 100% FDI allowed when compared to 74% FDI allowed before.
- Transport service(Regional air transport or Domestic scheduled passenger airline): 100% FDI allowed under automatic route.
- Private agency securities: 49% automatic route. Beyond 49% and up to 74% through Government route.
- Single brand product retailing: Sourcing norms are relaxed.
- Pharmaceuticals – Brownfield: up to 74% FDI through automatic route. additional conditions as given in the FDI policy.
- Other financial services: The investment cap 100% remains the same but will be regulated by the financial regulator authority as authorized by the Government.
These are the changes brought by the DIPP in the Foreign Direct Investment rules and regulations.
For information on Foreign Direct Investments visit www.intuitconsultancy.com or reach our consultant at [email protected]
- Newsletter
- October 3, 2017
Compliance has become an integral part of businesses today. What was once a formality has now become a necessity. Companies are struggling to keep up with the compliance requirements in HQ and their branches worldwide. Intuit Consulting provides a clear way on tacking the compliance concerns of companies.
Keeping up with compliance:
Using individual strategies, the companies can keep up with compliance. The steps a compliance professional can adapt are:
- Stay abreast of the compliance requirements and the areas that are lacking in them,
- Compliance is a proof of how was the decision taken by the Company,
- Compliance is a interwoven web, so the officers is to have contacts with all the departments of the enterprise,
- Providing the head management a clear and concise overview of the compliances adapted and the yet to adopt compliance.
- Incomplete compliance requirements can lead to penalties, which can be severe, the professional should be aware of the due dates and the filing procedures
The scope of compliance professionals:
Compliance has and is becoming an elementary prerequisite of business. Soon, the field will call for experienced professionals as the rules and limitations noose are getting tighter. As deals are made internationally or nationally, the growing and pivotal role of compliance cannot be underestimated.
Experts estimate that within the next 12 months the companies will face many challenges in the area of compliance. Compliance has now become a bridge between corporates and CEO’s are need of a complete compliance guidance from expert professionals.
Getting the best:
Companies should not treat compliance as a hurdle but as a stepping stone for their business expansion. They can hire experts who will ensure that all the compliance needs of the firm are fulfilled. While exploring unchartered waters, the compliance experts will make sure that all your bases are covered.
To know more about compliance management log on to www.intuitconsultancy.com. You can also reach our consultant at [email protected]
- Newsletter
- October 3, 2017
The private business setups in the Eurozone have shown a flourishing growth in the third quarter according to a poll by Reuters. The momentum is expected to be carried forward to the coming months. This dynamic has created a ripple effect of expectation; the European Central Bank might announce its reduction on monthly spending on quantitative easing along with the inflation pressures.
According to the IHS Markit study, Composite Purchasing Managers Index (PMI) has a rise of above 50 bouncing from 55.6 in the month of August to 56.7 in the month of September where it can be viewed as growth and not a contraction.
According to Reuters poll, the forecast for September was a dip in the index. This rise has surpassed the decline calculation, and the value of Euro has been elevated to 0.4 percent. The increase in the PMI’s of major economies of Germany and France has also reached an unexpected high.This growth as seen by experts have led to the conclusion that this empowers the policymakers in ECB to draft policies to take advantage of the situation. There has a been a noticeable rise in the price indices also in September as well as the business index rose to 52.6 to 52.1.
The ECB is going to announce in October its plan to extend the asset purchase program by six months, but there will be a cutback on the purchase of the asset. This trend has resulted in businesses to go frantic for the completion of orders. The service industry also had witnessed a booming rise to 55.6. This trend has increased the business growth, and the expectations of the business owners as the business expectation index went through a major increase of 66.1 to 64.0.
- Newsletter
- September 6, 2017
Sheikh Ahmed bin Saeed Al Maktoum, Second Deputy Chairman of the Executive Council and the Chairman of Economic Development Committee has remarked that the growth of Dubai has reached astounding heights irrespective of the downward trends of 2016 and is all set to gallop past the global economic growth in the coming years.
In the annual report of Dubai Plan 2021, the focus is on the to the economic growth of the region and its diversification and sustainable policies leading to the new companies incorporation in Dubai have led to its economic growth. It is remarkable that the oil exports make up for the least 1 % of the total GDP. A lot of untapped and potential opportunities have come up in the other sectors leading to all round development of the region.
In the area of tourism, there has been a rapid increase of 5% when compared to the year 2015. The increase in the accessibility and the infrastructure improvements in the tourism sector has made Dubai the favored destination. This action has led to unprecedented growth in the economy. There is a plan in place to attract 20 million customers by the end of the year 2020.
There has been a steady growth in all the sectors all around the country. Dubai has bagged the 26thplace among 190 economies and stood first in the Arab region. The economy of Dubai had an increase of 2.85% when compared to the global economic growth rate of 2.4 %. All said we could assume that Dubai will be playing a major role in the world economy and it is on its way to becoming a strong contender in the major sectors of commerce.
For new companies incorporation in Dubai reach our consultant at [email protected]
- Newsletter
- September 6, 2017
In a recent survey by the Arab Investment and Export Credit Guarantee Corporation, Dhaman UAE has bagged the top spot for the most foreign direct investments made in 2016. As per the Foreign Direct Investment market database, a total of 616 companies in 2016 launched 773 new foreign investment enterprises in Arab countries with a total investment cost of $94 billion. There has been an inflow of $9 billion or DH 33.3 billion in the year 2016 followed by Egypt in the second and the Kingdom of Saudi Arabia in the third place.
In the investment report released by the Kuwait based company, it is to note that the Gulfco-operation Council countries had surpassed their Arab neighbors in pulling of FDI towards their economy. There is also an improvement in the FDI sector as compared to the levels in 2015.
This report helps the investors to channel their funds by determining the strength and weakness of the countries. This report presents the most desirable country for FDI by keeping in tune with the foreign economic policies and the investment policies drafted by the country. In 2016, UAE and Egypt had absorbed more than 80% of the foreign direct investment when compared to other Arab countries.
For more information on Dubai Company formation reach our consultant at [email protected]
- Newsletter
- September 6, 2017
Here are the following reforms of tax implemented in Africa. The tax in Africa has undergone drastic changes. It has summarised as follows:
Botswana
Cameroon
Kenya
Liberia
On 24th July 2017, the Ministry of Finance and Development Planning has issued a list of sectors that qualify for tax incentives. Companies like tourism, manufacturing, energy, etc. are exempted from service tax and import duties.
Lesotho
The Minister of Finance has proposed the following changes in the Parliament:
- Raising the individual income tax limit and annual credit limit
- To enhance trade and business the business licensing bill and others were present
Malawi
Nigeria
South Sudan
Tanzania
Uganda
The High Court has ruled that the Tax Tribunal holds the original jurisdiction on the tax disputes.
For more information on African Taxes reach our consultants at [email protected]
- Newsletter
- September 6, 2017
The international monetary fund (IMF) has quoted that Saudi Arabia has begun to show “a considerable progress in reforming its economy as part of the IMF vision of 2030 program announced in the year of 2016. According to IMF, the fiscal consideration is “beginning to bear fruit.” There has been an effort from the government to increase transparency and business reforms. There are also progress in accepting of new companies incorporation in Saudi Arabia. The non-oil sector is expected to rise by 1.7 percent in the year of 2017.
There is a consolidation of growth as the medium-term structural changes implemented stage by stage. The IMF observed that the employment growth has slowed and has urged the state to quicken its employment drive. The negative impact of inflation is expected to increase in the coming months. The fiscal deficit will be lowered substantially from 17.2 percent to 9.3 percent and to drastically reduce to 1 percent in the GDP by the year 2022.
IMF executive directors concluded that Saudi Arabia is slowly adjusting to lower oil prices and balanced by the non-oil sector. IMF also lauded the authorities efforts in implementing the economic reforms. It is notable that Saudi Arabia that it there is good progress in identifying and removing the problem in the private sector and paving the way for new company incorporation in Saudi Arabia. But the IMF has urged Saudi Arabia to increase and boost its women workforce participation in its employment drive.Overall, one can say that Saudi Arabia is slowly but steadily moving towards progress.
For new companies incorporation in Saudi Arabia, reach our consultant at [email protected]
- Newsletter
- September 6, 2017
Singapore has become a favored destination for foreign companies for setting up a company. The foreign companies have two options in starting a business in Singapore. They can either set up a branch office or by registering a company in Singapore. The company so registered will be the subsidiary company of the parent company. There are different benefits available for branch office set up and different benefits for setting up a company in Singapore. The benefits are the same in certain cases and varied in different cases.If it is a branch office, the office is not a separate entity. But in the case of a subsidiary company, it enjoys it’s independent entity right; meaning the assets of the subsidiary company are only liable in a legal dispute, and not the parent company. The parent company’s assets will not be in a bind but if it is a branch office the parent company’s assets are also liable in case of a dispute.
In the clause of activity, the branch office can only perform activities as chartered in the parent company’s articles. It cannot function beyond that. But the subsidiary company can have its articles and specify it functions according to the legal framework of the Singapore company laws. Having a separate legal status enables the subsidiary company in having its own functions.
The area of tax benefits, the branch office does not enjoy any tax benefits due to its non-residential status. The subsidiary company is a separate legal entity enjoys a host of benefits and exemption that are available to the Singapore resident companies.
In other words, being a branch office or a subsidiary company has its benefits, but the decision lies in the hands of the parent company in choosing the options based on its objective.
For starting a business in Singapore reach our consultant at [email protected]
- Newsletter
- September 6, 2017
Hong Kong, the top Asian city for the ultra wealthy. The poll is indicating the most number of ultra wealthy individuals with a (net worth of 30million or more) concentration in the world cities. Hong Kong has placed itself in the top spot before Tokyo. Hong Kong has the largest population of ultra net worth individuals who are willing to invest in the domestic market like reality, software and other markets. However, there is fierce competition from other Asian countries such as Singapore, China, and India for the top spot. The concentration of ultra high net worth individuals have gone up from 2.40% to 4.10%. The reason for this contribution of this ultra wealthy population is the emerging business expansion in Hong Kong. It is the result of the pace of economic growth in Hong Kong reaching new heights. Even though China is the world’s most populated country, its city of Shanghai came in the 29th spot.
Globally Hong Kong has secured the second place just below New York trumping London, Paris and other major cities.
It also notable that on an average an ultra high net worth individual owns 3.3 homes in Hong Kong.
Asia’s contribution to the pool of ultra high net worth individuals has been on a steady rise especially due to its hurdle less business expansion policies in Hong Kong and other countries contributing to the same. One of the reasons for Hong Kong to snatch the top spot in the Asian country list is the rapid development of businesses and the equity market’s positive growth coupled with the investor’s fear in the market of China due to the reforms implemented in India. That said one can safely say that Hong Kong is a city to watch out for in the coming ages.
- Newsletter
- August 14, 2017
Saudi Arabia’s Shura Council, which is al known as the National Consultative Assembly, approved the added value tax draft in the 45th ordinary session under the chairmanship of Vice-Speaker Dr. Mohammed bin Amin Al-Jeffry.
This has been a major step towards the levy of sales tax in the country and create alternative sources of revenue by the Government, especially when they are taking measures to cope financially owing to the decreasing oil prices.
The approval by the most-powerful consultative body was given, only when the financial committee on VAT submitted its report to the council and it was verified that the draft law is in sync with the provisions of uniform consensus formed by the GCC countries.
This approval is the result of the follow up of the public consultation launched in June 2017 on the draft law. The Council also emphasized on the necessity of creating a unified program for the citizen’s account before the enforcement of any system.
So far, only two countries, Saudi Arabi and the UAE have decided to start enforcing the VAT laws by January 1st, 2018 and out of which, the UAE still has to determine and finalize the tax laws and other secondary rules on the tax enforcement and collection procedures.
The International Monetary Fund (IMF) is predicting that the introduction of VAT laws in the Gulf countries will help in growing their GDP by 1.4 percent, which will be a huge relief for these countries, amidst the obstinately falling oil prices.
The expected rate of VAT across GCC is expected to be 5% initially, which can be increased eventually. The initial framework of the VAT taxation laws will be similar to that of the countries in the EU and the UK and taxes on goods, services and imports will be levied.
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