- NEWSLETTER, GLOBAL
- July 12, 2023
Global mobility has become a key business strategy for companies looking to expand into new markets. Allowing employees to relocate internationally can benefit both businesses and staff, but also presents challenges for HR in managing the process.
What is Global Mobility?
Global mobility refers to companies moving employees from one country to another, either short or long-term. This approach is increasingly common as businesses become more global and workforces more flexible. For companies, it aids expansion into new markets. For employees, it provides career and cultural opportunities. However, it requires comprehensive management from HR to handle immigration, taxation, recruitment and employee wellbeing.
Expanding into new countries is crucial for business growth, and global mobility enables this in several ways:
Access to Talent
Relocation opportunities attract candidates willing to move abroad for work. This gives companies a larger talent pool to recruit from.
Cultural Understanding
Employees with experience of different cultures and markets can help companies adapt products, services and strategies to suit local needs.
Productivity
The right employees will settle well into new roles and surroundings, maintaining or improving productivity. Regular check-ins from HR help achieve this.
Development
Global mobility programmes provide progression opportunities for high-potential employees, which aids staff retention and motivation.
Considerations for HR
While global mobility benefits business strategy, it also presents challenges for HR:
Employee Contracts
Contracts must cover immigration, tax, compensation and relocation terms. Relocation clauses allowing companies to move staff can be controversial.
Performance Management
HR must monitor employee performance during and after relocation to ensure productivity and wellbeing. Targets and regular contact are important.
Recruitment
Advertising relocation opportunities attracts certain candidates but deters others. Discussing mobility in the interview process and offering relocation packages helps.
Progression
HR must determine who is eligible for global mobility based on seniority and business needs. A structured programme is required.
Global mobility is crucial for companies expanding internationally, enabling access to new talent, cultural insight, productivity and development opportunities. However, it also brings responsibilities for HR in managing employee mobility. IMC Group offers Global payroll solutions and HR consulting services to support companies implementing global mobility programmes. Contact us to discuss your requirements.
- Article, Global, India, U.A.E.
- July 7, 2023
We are in the era of digitalization where rapid changes are happening in digital space. Many huge businesses are ruling their industries with the help of SaaS companies. One such SaaS provider is Zoho which is a popular name in providing CRM services to businesses.
Zoho is a SaaS company that provides various applications that allow businesses to manage customer relationships through various products offered by Zoho. It includes CRM, project management, emails, invoicing, an attendance platform, and more.
Many companies fail to understand that implementation of Zoho in the business is the most important step for using Zoho services according to your needs. You need the best partner to implement Zoho based on your requirements. The process is challenging and might be impossible for in-house developers until they know the ins and outs of Zoho. A Zoho implementation partner is the best way to proceed to avoid any costly mistakes during implementations.
Discussed below are some tips to guide you on how to find the best partner for your Zoho implementation.
Understanding Your Needs
What are the services you require? Is it CRM, emails, or project management? Whatever is your requirement, make an estimated budget for the same. After your requirements and budget are finalized, you can go ahead in selecting the Zoho partner to implement your needs in your budget.
Market Reputation and Experience
Being a part of the industry, every company maintains a market reputation. You should be in a partnership with a company that maintains good work with its clients and works as a reputed business in the industry.
Another vital thing to consider is the expertise and knowledge of the company in your domain of work. Choose a Zoho implantation partner who can easily understand your business and customize your Zoho based on your business requirements. For example, if your business needs CRM implementation from Zoho, choosing a partner who has first-hand experience in CRM implementations will make the process seamless and right on track.
Customer Experience and Support
Your Zoho implementation partner will be your first point of contact for any problems related to your Zoho. Your Zoho partner should be able to solve all technical hitches occurring during or after the implementation. A good support team will be able to solve all your problems and provide helpful advice to any question. Zoho Books support is another way to solve your issues which allows you to take direct help from Zoho. However, having a Zoho partner as your support team is helpful in the long run.
Quality over Price
The overall cost of a Zoho implementation partner depends on many factors including your business needs, Zoho license, users count, data migration, user training, and the location of the partner. The charge of your Zoho partner will depend on many other factors like the complexity of the project, time taken for the project, and the Zoho services you have opted for.
For example, you might have shortlisted some partners having different price budgets, it is not wise to go for the partner with the lowest cost. You should always consider quality over cost. Don’t settle for lower budgets which might increase your costs later if the implementation is not done as per your requirements.
Conclusion
A Zoho implementation partner is crucial to have for a better and more focused implementation of a Zoho product in your business operations. With so many partners online, choosing one can be overwhelming. However, you can consider the tips mentioned above and choose the partner best suited to your needs and budget.
- Article, Global
- July 4, 2023
Embarking on a merger or acquisition (M&A) is a significant opportunity for your business. However, it comes with high stakes, and you can’t simply weed out the chances of failure! For middle-market companies, developing a robust M&A strategy that aligns with their personal and business goals is imperative.
Often, businesses stumble across hurdles while working on their M&A tactics. These include:
- Failure to understand a business strategy within the organization
- Absence of a comprehensive roadmap
- Confusion due to delayed decisions or leadership issues
- Inadequate knowledge about what to prioritize on after closing
With professional mergers & acquisitions advisory services from experts, streamlining your M&A strategy becomes a reality. In this article, you will find five valuable tips for understanding the M&A process and fostering business growth.
5 Guidelines to Develop a Strong M&A Strategy
Established M&A advisors recommend the following tips to develop a powerful M&A strategy.
1. Align the Transaction with Your Business Case
A well-aligned business case is the foundation of any successful M&A. So, it’s crucial to articulate the reasons behind the M&A deal. Also, every organisation member should have a transparent understanding of their role in supporting the value proposition. The business case should be both the driver and metric for retaining customers, increasing revenue, and offering better products.
Stretch your goals
Businesses need to set high-risk and high-effort stretch goals to achieve significant results. Consider the M&A deal as a valuable asset. Naturally, it requires meticulous planning. Come up with highly collaborative and cross-functional integration plans. This way, organizations can transform the business case into a reality. Align the outcomes of the business case with your profit and loss. Thus, you can maintain commitment while propelling your organization to success.
Identify tangible value drivers
Identify the tangible value drivers the merger or acquisition will likely fulfil. Find the key gaps or needs you aim to address in your business through the transaction. However, transactions must fill this loophole partially. So, try to align the deal with your business goals and consider additional investments you may need. This way, you can emerge at the top in the competitive market.
2. Work Out a Master Plan
A well-defined master plan is essential for the success of any M&A. It serves as a blueprint, highlighting the milestones and critical tasks. Your master plan should establish early commitments to people-related decisions, investments, and timeframes.
For businesses undertaking M&A deals, it’s crucial to maintain clarity in the process. Therefore, they should establish an effective governance structure and review it regularly.
Address issues and risks that stem from the M&A process instantly. Also, ensure timely responses and prioritization for better management of potential roadblocks. It would be best if you had visibility into interdependencies between operations, departments, and teams.
3. Empowering Your Team for Better Accountability
Ensure that your leadership team remains accountable for the outcome of your decisions. Besides, the supporting departments should cultivate accountability. Each team member should understand their responsibilities and deliverables.
As the business or management head, you must nurture better team collaboration by clearly defining roles. Also, update relevant stakeholders on new processes and procedures.
In this context, it’s crucial to structure your meetings tactically to enhance communication and decision-making. Host structured sessions with a predetermined agenda to address issues like communication and decision-making. These meetings should involve the department managers, steering committees, and senior leadership. Effective collaboration ensures proper alignment with your integration goals and expectations.
4. Establishing a Highly Effective Governance Structure
An effective governance structure is critical even if you have a remote board. Here are three steps that would help you streamline your governance structure.
- Define the process: Come up with a well-defined process addressing the risks, challenges, and issues that may potentially arise during the M&A process. Reviewing and updating the process regularly is imperative to ensure its effectiveness. Forward-thinking organizations habitually seek specialized transaction advisory services to develop their governance structure.
- Cultivate accountability: Integrate the leadership team with responsibility. This fosters a collaborative environment, aligning your teams with the objectives of the merger or acquisition.
- Host structured meetings: Various levels of your workforce should coordinate through structured meetings. These should include your steering committees and workstreams. Besides, have a predetermined agenda to guide these meetings and resolve issues.
5. Communicating throughout the Transaction
Establish a strong communication strategy to seamlessly convey your messages to the desired parties throughout the M&A process and beyond. Work on crafting a master narrative that outlines the overall story of the deal. This should drive the behaviour and actions of different departments in your organization.
- Communication with employees: Communicate effectively with your employees, ensuring they understand their value. Once they realize their position in the new organization and the changes they might encounter, they will be ready for the change.
- Communication with customers: Deploy a well-defined outreach program to communicate the deal’s value to your customers. Focus on benefits like improved customer service, expanded access, or enhanced product offerings. You can strengthen customer support and loyalty through regular updates and transparent communication.
- Communication with suppliers: Keep your suppliers informed about their involvement in the deal. Ensure to provide detailed information and address any concerns they might have to maintain a strong bond.
Seek professional support from experts
Whether you need seasoned professionals’ advisory or due diligence services, we are here to help. At the IMC Group, we can impartially facilitate and manage your transaction. With expert professional support, you can position your business with authority in a competitive business environment.
- Article, Global
- June 28, 2023
In the competitive global business ecosystem, effective Governance, Risk, and Compliance (GRC) have emerged as critical priorities to align operations, mitigate risks, and ensure adherence to regulatory frameworks. Forward-thinking businesses implement robust and adaptable Governance Risk and Compliance Solutions to make informed decisions.
Businesses can make smarter decisions and mitigate risks by deploying smart GRC programs. In this post, we are going to prioritize four aspects that should streamline your operations in this regard.
Understanding the Components of a Strong GRC Framework
Before recommending the top four priorities in 2023, let’s evaluate the core components of a strong FRC framework.
1. Governance
Governance serves as the foundation of effective business management. It encompasses policies, rules, and responsibilities which stakeholders and senior management professionals need to adhere to. Governance ensures better operational efficiency and optimizes resources by emphasizing transparent information sharing, conflict resolution plans, and accountable practices.
2. Risk Management
Risk management goes a long way in identifying and mitigating risks on different fronts. It encompasses legal risks, business strategy risks, and informational security risks. Risk management involves a holistic approach to mitigate these risks. It offers a united framework that strengthens disaster recovery protocols.
Top organizations largely count on enterprise risk management solutions to ensure their business continuity.
3. Compliance
Compliance refers to the process of adhering to legal regulations, standards, and ethical policies. Forward-thinking businesses strive to maintain their organizational integrity by incorporating compliance. These legal protocols apply to every sector, including healthcare, IT, food and drugs, etc.
The Importance of GRC: Mitigating Risks, Maintaining Compliance, and Enhancing Governance
How Can the Power of GRC Solutions Future-Proof Your Business?
There’s no denying that your organization needs robust corporate governance solutions to navigate through these challenges. Under any circumstance, it’s imperative to embrace the potential of GRC solutions. This way, you can effectively manage risks and capitalize on your opportunities.
However, these challenges continue to persist in the competitive business environment. Compliance leaders expect another 30% increment in compliance costs with the evolving regulatory demands and customer needs. Business leaders need to realign their priorities to address these challenges.
Here are four prime recommendations that should bail you out.
1. A Business-First Approach
Prioritizing the needs of your business is of paramount importance while working on GRC. Regulatory compliance is important for all organizations. However, each business operates under unique circumstances, which calls for a highly customized approach. Rather than viewing GRC as a mere box-ticking exercise, make sure to craft a GRC program aligning with your business goals.
A business-oriented stance ensures that your GRC program spearheads you to success and helps in cultivating resilience while navigating risks. GRC leaders need to engage with stakeholders across the organization to strategize an effective and relevant program. It’s crucial to remember that GRC involves fostering an accountable and compliant culture. This calls for building stronger relationships within the organization.
2. Prioritizing Risks after Categorizing Them
Eliminating risks from your business environment is virtually impossible. For organizations with limited resources, effective risk management turns out to be crucial. Therefore, these organizations need to consider their legal obligations and manage these risks.
At the outset, your strategy should involve categorizing and prioritizing risks in such a way that the tactic aligns with your business. Carefully scrutinize the chances of each risk affecting your business and the corresponding intensity. Also, include both internal and external factors, ranging from employee errors to cyberattacks.
Many successful enterprises are heavily counting on third-party risk management solutions in the wake of attacks targeting their supply chains and vendors. Vulnerabilities in third-party relationships continue to be a significant threat even when you have robust internal policies and controls. This explains the importance of establishing a single source of risk truth providing visibility to risks of all sizes.
Strengthen Corporate Governance, Manage Enterprise Risks Effectively
3. Keeping Track of Global Regulations
Rather than being a periodic task or a one-time project, GRC is a continuous process. It’s a type of change management adapting to the evolving economic conditions amidst complex regulatory norms. Businesses often find it challenging to achieve continuous compliance and maintain the same. The reason is that it requires you to monitor the security posture of your organization continually and adhere to industry best practices and new regulations.
While regulatory initiatives usually give breathing time to businesses before they apply, changes can occur more rapidly than anticipated. For instance, many organizations were caught off guard during the introduction of GDPR and CCPA. Thus, it’s crucial to keep track of global compliance regimes proactively.
4. Align GRC and ESG Initiatives Together
There’s a common element between GRC and ESG (environmental, social, and governance) strategies, and it is governance. ESG involves the concept of corporate social responsibility (CSR). Therefore, both serve as different self-regulation forms that leave a positive impact on the communities. While ESG and CSR aim to meet specific targets, aligning them with GRC makes the approach more holistic.
GRC primarily focuses on risk reduction and legal compliance. However, ESG takes businesses a step further by exceeding current regulations and industry best practices. So, it’s wise to align GRC and ESG to bring substantial value to your organization and enhance your brand image. This would also help your business stay ahead of regulations.
Is It Time to Invest in Business Integration?
At IMC Group, we understand the significance of GRC in helping your organization unlock its full potential. Our governance risk and compliance solutions can empower you to ensure compliance and drive sustainable growth. Explore our range of solutions and invest in business integration to embrace the path to success.
- NEWSLETTER, GLOBAL
- June 20, 2023
Forward-thinking organizations thriving in an ever-evolving global landscape are habitually strategic with their talent acquisition tactics. To stay competitive, business owners and HR managers have been exploring the latest talent acquisition trends. Embracing cutting-edge technology and adopting best practices can help you navigate the complexities of global talent acquisition.
At IMC Group, we specialize in designing customized payroll management solutions and offer global mobility services.
If you are planning to go international with your workforce, we bring you some of the most dominating global talent acquisition trends that you might consider.
Top global talent acquisition trends to follow in 2023
Explore the key global talent acquisition trends that can set your organization apart in the competitive business scape.
1. Shifting the Focus from Local to Global
The most remarkable recruiting trend in 2023 reveals that organizations are likely to prioritize global talent acquisition. As a strategic approach to diversify and adapt to the evolving market demands, brands are increasingly pooling in talent from other countries.
The evolving trend of working remotely enables brands to attract and hire talent regardless of their geographical boundaries. Thus, businesses are focussing on expanding their pool of potential candidates and recruiting beyond local demographics.
2. Tapping Emerging Talent Hubs
Businesses are consistently exploring emerging talent hubs to tap valuable human resources in 2023. Often, traditional recruitment processes overlook locations that produce highly skilled professionals capable of addressing local skills shortages. By tapping into these emerging talent pools, your business can gain a competitive edge as you hunt for top-notch talent.
Tech giants, for instance, are exploring talent hubs like Uruguay and Poland to find specialized professionals.
A report reveals that 77% of HR professionals consider skill shortage to be the prime hurdle while hiring. As this problem persists, talent shortage in home countries has prompted some organizations to explore further to find the right talent.
According to Oxford Economics, countries such as South Africa, Colombia, India, and Indonesia are expected to experience economic growth as well as talent surplus in the coming years. Naturally, organizations need to tap into emerging markets to fulfill their workforce needs.
3. Flexibility in Qualifications
Recent recruitment trends reveal that hiring practices will place greater emphasis on soft skills and a flexible approach to qualifications. Emerging talent markets have already witnessed remarkable increases in national education levels. In these markets, skilled professionals may lack the practical exposure that businesses typically seek. Recruiters are expanding their criteria beyond job experience and academic qualifications. Currently, they are prioritizing traits like critical thinking, problem-solving, effective communication, and emotional intelligence. Thus, recruiters have come up with new parameters to evaluate the skills of the most suitable candidates.
4. Focus on Reskilling and Upskilling
Besides prioritizing soft skills, recruiters need to take adequate measures to reskill and upskill candidates to prepare a future-ready workforce. The global economy is ever-changing. With rapid digitization, businesses need to remain agile and flexible to challenges.
One of the notable trends in 2023 reveals that businesses are increasingly investing in upskilling and reskilling programs. As a result, employees can overcome fresh challenges and seamlessly blend into new digital trends.
5. Promoting Diversity and Inclusion
In 2023, inclusion and diversity will continue to mould global recruiting trends. A diverse workforce enjoys a plethora of benefits, 2.5 times higher cash flow for each employee. Organizations need to address potential biases in their application processes to foster diversity. It’s imperative for them to explore new strategies and integrate both local and international teams. Businesses can create a rich and inclusive work environment by recognizing the value of different cultures and backgrounds in their workforce.
6. Strategic Workforce Planning
In 2023, talent managers need to adapt their strategies as global recruitment trends continue to evolve, moving beyond their conventional success formulas. A mindful approach is the need of the hour that should shape workforce planning. HR managers also need to leverage tools such as predictive analytics and AI to make data-driven hiring decisions.
Through strategic planning, organizations can identify necessary skill sets for critical roles and market trends. This way, they can align their talent acquisition efforts and future growth objectives together.
7. Exploring the Power of Recruitment Technology
Recruitment technology is set to play a pivotal role in global hiring trends for 2023. Surveys reveal that 59% of HR decision-makers, talent professionals, and recruiters expect to spend more in adopting new recruitment technologies. Technology goes a long way in shaping global recruitment trends. While many employers are using the traditional process, forward-thinking organizations are making the most of available tools.
Reviewing applications manually turn out to be a time-intensive affair. Organizations are automating their recruitment processes through various digital tools. Applicant tracking Systems (ATS) can streamline the onboarding process. One of the core functions of AI-backed ATS is to filter applicants based on keywords and specific criteria. Some companies are already using chatbots to interact with potential employees. Using ATS, chatbots, and other sophisticated tools, organizations can streamline their international hiring processes. This goes a long way in mitigating manual effort and time in reviewing applications.
8. The Focus on Employer Branding
Among other aspects, employer branding will be phenomenal in attracting and retaining global talent. An employer brand conveys greater credibility as a recruiter and helps potential candidates visualize the work culture and environment.
Businesses are expected to redefine their Employee Value Proposition (EVP) and thereby showcase their commitment to fostering an exceptional work environment.
Simplifying International Workforce Mobility with IMC Group
When expanding globally and onboarding employees internationally, IMC Group offers comprehensive solutions tailored to meet the unique needs of businesses. We seamlessly integrate identified talent, streamline processes, and ensure compliance with local regulations. With our expertise in global workforce management, trust IMC Group as your reliable partner for a smooth transition and efficient international operations.
- NEWSLETTER, U.A.E, INDIA
- June 13, 2023
The Comprehensive Economic Partnership Agreement (CEPA) between India and UAE has opened up new avenues for company formation in Dubai and India. CEPA was India’s inaugural bilateral trade agreement with any MENA country. Since then, trade flows between these nations have increased by almost 33%.
CEPA places particular emphasis on providing an environment in which small and medium-sized enterprises (SMEs) can flourish. India has long recognized the crucial role SMEs play in driving economic growth and meeting its ambition of becoming a 5 trillion-dollar economy. But to do so, they require duty-free access to foreign markets without disruption. CEPA meets these needs by eliminating all tariffs within 10 years if goods move between India and UAE.
This agreement provides businesses and customers access to 11 service sectors and over 100 subsectors, such as healthcare, construction, education, transport, metals and processed food industries. However, realizing its full potential requires developing a reliable cross-border trade network, logistics partner and an ecosystem that encourages small- and medium-sized enterprises (SMEs) to thrive.
Logistics infrastructure is critical to bilateral trade prosperity. India already counts UAE as its third-largest trading partner and second-largest export destination, accounting for 40% of their total Arab trade. Pharmaceutical, medical device, and automotive sectors should experience similarly substantial increases; as a result, more investment will likely be put in smart supply chain networks tailored to industry demands.
Pharmaceutical companies require services like an end-to-end temperature-controlled supply chain in order to guarantee shipment integrity, while gems and jewellery businesses will find that utilizing digital processes for customs documentation will help reduce complex paperwork processes, giving their business a competitive edge in this arena. Hence, businesses that partner with the right logistics provider will enjoy a distinct competitive edge.
Logistics investment is at the core of both the Indian and UAE economies, making import/export operations possible. India’s logistics market is projected to reach $380 billion by 2025 while the UAE freight/logistics market will surpass $31 billion by 2026. Their respective infrastructure combined with free-trade policies, bilateral agreements, investments, trade links and free movement policies will have a profound effect on commerce between these two nations and across the Gulf region.
Conclusion
- NEWSLETTER,SINGAPORE
- June 13, 2023
Singapore has recently doubled the additional buyer’s stamp duty (ABSD) for foreign buyers of residential property from 30% to 60% in a bid to dampen investment demand. However, experts believe that this measure will not significantly deter ultra-rich foreigners from investing in Singapore’s property market in the long term.
The latest round of property cooling measures has raised concerns among foreign buyers, with some questioning if the 60% ABSD rate is the final increase. Experts acknowledge that the higher ABSD rate may initially discourage foreign buyers looking to settle in Singapore. However, they believe that they will eventually “come to terms with it, bite the bullet and move on.”
According to the Urban Redevelopment Authority, foreign buyers accounted for 6.9% of property purchases in Singapore in the first quarter of 2023, up from 3.1% during the same period last year. Minister for National Development Desmond Lee has defended the ABSD increases as a “pre-emptive measure” to curb both local and foreign investment demand in the residential market.
Foreign buyers who are considering purchasing residential property in Singapore to establish roots and contribute to the economy may initially think twice about investing due to the increased ABSD rate. However, instead of looking towards other cities, some may even consider applying for permanent residency sooner than planned, primarily because Singapore is viewed as a safe and comfortable environment.
Singapore’s reputation as a safe haven is a major draw for foreign investors. The country’s excellent infrastructure, education system, and public services make it an attractive destination for ultra-rich individuals looking to relocate their families. Despite the 60% ABSD rate, experts predict that demand for Singaporean property will remain strong in the long term.
The initial reaction to the ABSD increase is expected to result in a temporary dip in demand over the next three months. However, ultra-high net-worth individuals will likely still invest in Singapore’s property market once they have adjusted to the new rates.
While foreign buyers currently represent a small proportion of property purchases in Singapore, their presence can have a significant impact on the market. Increased demand from foreign investors can lead to spillover effects on the surrounding market, and changes to the ABSD rate can trigger chain reactions.
However, there are concerns about the potential consequences of a major market correction, which could threaten the integrity of the financial system and have widespread implications for the economy. To mitigate these risks, the Singaporean government will need to carefully manage its property cooling measures and remain vigilant to market changes.
Conclusion
It’s crucial for investors to stay informed and make strategic decisions. If you’re considering investing in Singapore’s property market or looking into Singapore company incorporation, reach out to the experts at IMC Group for professional advice and guidance tailored to your specific needs. Let IMC Group’s experienced team help you navigate through the complexities of the market and maximise your investment potential in Singapore.
- NEWSLETTER,SINGAPORE
- June 13, 2023
Singapore aims to commence negotiations for a digital free trade agreement with the European Union (EU) this year. This development follows a non-binding digital partnership agreed upon in February between the two parties, with Singapore’s Minister-in-charge of Trade Relations S Iswaran indicating that both sides are identifying projects to pursue through the partnership. The initiative is expected to improve the interoperability of digital markets and policy frameworks, ultimately allowing businesses and consumers to transact online at lower costs. This digital trade agreement could significantly influence Singapore company incorporation and expand opportunities for new company setups in Singapore.
The EU-Singapore Digital Partnership (EUSDP) serves as a critical first step towards a bilateral digital trade agreement. Iswaran, who also holds the position of Singapore’s transport minister, stated that such an agreement would provide citizens and businesses with the clarity and legal certainty required to confidently participate in the digital economy. The negotiations for the digital trade agreement are anticipated to begin during Sweden’s Presidency of the EU Council in the first half of 2023. This builds on the existing Singapore-EU bilateral free trade agreement, known as the EU-Singapore Free Trade Agreement (EUSFTA), which came into force in November 2019.
The EUSFTA was the first of its kind between the EU and a member state of the Association of Southeast Asian Nations (ASEAN). It is considered a template for a broader future trade pact with regional economies. While an EU-ASEAN agreement remains a long-term ambition, a future EU-Singapore digital trade agreement could act as a stepping stone for closer region-to-region connectivity. Following partnerships with Japan and South Korea, the EU’s digital partnership with Singapore is the third such agreement with a key Asian trading partner.
The EUSDP seeks to facilitate research and regulatory cooperation in areas such as 5G and 6G adoption, artificial intelligence (AI) governance, and semiconductor supply chain resilience. It also aims to establish common rules on cross-border data flows, electronic invoicing, and payments, thus granting small and medium-sized enterprises (SMEs) more open access to overseas markets. However, data privacy differences between Singapore’s Cross-Border Privacy Rules (CPBR) and the EU’s General Data Protection Regulation (GDPR) may pose challenges in reaching a binding agreement.
For businesses looking to expand into Southeast Asia, the potential EU-Singapore digital trade agreement signals a favourable environment for Singapore company incorporation. The agreement aims to enable seamless integration between the EU, Singapore, and the rest of the region, promoting growth and expansion for companies seeking new opportunities. As the digital partnership progresses, the prospect of a digital free trade agreement could significantly enhance the appeal of a new company set up in Singapore, offering a strategic foothold in the region and fostering stronger trade relations with the EU. By partnering with experienced consultancies like IMC Group, businesses can navigate the complexities of the incorporation process and tap into expert insights, unlocking the full potential of this thriving market and seizing the boundless opportunities that lie ahead in Singapore’s vibrant and interconnected digital landscape.
- NEWSLETTER,U.A.E
- June 13, 2023
As Dubai continues to establish itself as a wealth and asset management hotspot in the international finance landscape, it is essential for expatriates and non-Muslims with assets in the region to consider their estate planning options. This article aims to provide a comprehensive guide to the growing importance of the United Arab Emirates (UAE), particularly Dubai and the Dubai International Finance Centre (DIFC), and the various estate planning options available to different communities.
Dubai and the DIFC: A Global Finance Hub
The UAE’s D33 strategy has successfully transformed Dubai into a leading finance centre in the MENA region. The DIFC, a special economic zone within Dubai, has played a crucial role in this transformation, attracting high and ultra-high-net-worth families to establish a presence in the Emirate. With an increasing asset base in Dubai, it is vital for these individuals to incorporate their assets into their global tax and estate plan strategies.
Navigating Succession Laws in the UAE
The UAE makes a distinction between Islamic and Non-Islamic individuals when it comes to succession laws. For Muslims, Sharia Law is applied in the absence of a will, while non-Muslims can choose the laws of their nationality to govern the succession of their Emirati assets. In particular, UK expats are afforded the opportunity to apply English law, which offers testamentary freedom and allows for tailored estate planning.
Estate Planning Options for Islamic Clients
For those looking to prepare Sharia-compliant wills, trust structures are commonly used to ensure the estate passes in accordance with Sharia principles. In some cases, individuals may opt for corporate structures or foundations to provide beneficiaries with certainty over their inheritance.
Estate Planning Options for UK Expats (Non-Muslims)
UK expats in the UAE can benefit from applying English law to their Emirati assets, enabling bespoke estate plans that take into account the needs of beneficiaries and potential global taxes. This is particularly important for UK-domiciled and deemed-domiciled individuals who may be subject to UK inheritance tax. Many expats have chosen to structure their global estate through jurisdictions such as the Channel Islands, streamlining their estate planning across multiple jurisdictions while residing in Dubai.
Estate Planning Options for Non-UK Expats (Non-Muslims)
Non-UK, non-Muslim expats in the UAE can also explore alternative estate planning options, such as obtaining UK nationality and electing English law to govern their Emirati assets. This can help circumvent forced heirship laws in their country of origin while allowing for tax-efficient structuring.
Navigating estate planning in the UAE can be complex, but with the right guidance and support from experienced professionals, expats can successfully protect their assets and ensure their wishes are carried out upon their passing. Take help from consultancies such IMC Group to ensure the process is smooth and you get the best guidance navigating the laws.
- NEWSLETTER,U.A.E
- June 13, 2023
On June 1st, 2023, the UAE will introduce a federal corporate tax at a rate of 9% for businesses. This new tax aims to strengthen the UAE’s business environment and meet international standards for tax transparency.
The corporate tax will apply to businesses and corporate entities that make over 375,000 AED in annual profits. For small businesses, profits up to 375,000 AED will remain tax-exempt. Some types of businesses and income are also fully exempt, such as:
- Individual income unrelated to a business
- Foreign investors without a UAE business
- Qualifying free zone entities
- Capital gains and dividend income from shareholdings
- Intragroup transactions and restructurings
For businesses subject to the tax, it will be calculated as 9% of their annual taxable profits. For example, if a business makes 4,750,000 AED in profit, it will pay 9,000 AED in corporate tax (4,750,000- 3,750,000 x 9%).
With corporate tax coming soon, now is the time for businesses to prepare. Below are some steps you can take that will help you prepare.
Avoid a AED 10,000 fine by Meeting UAE's Corporate Tax Deadlines. Contact us for Expert Tax Compliance Guidance and Protect your Business.
Register for corporate tax
Keep accurate financial records
Prepare financial statements
Get the right advisory
Don't attempt to avoid the tax
Any restructuring solely aimed at reducing your tax bill could be considered tax avoidance under the new law and result in penalties.
The new corporate tax law is already in place, and it’s time to take action to ensure a smooth transition for your business. Make sure your financial records are in order, understand how the tax will impact your business, and invest in the tools that will help you comply efficiently. Don’t wait – contact IMC Group today to check your eligibility and receive expert guidance on navigating the new tax landscape.
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