- Newsletter, U.A.E
- March 17, 2021
The UAE announced on Saturday, January 30 2021 about the amendment of the country’s citizenship laws granting citizenship status to investors and expatriates for the first time, a move that could potentially benefit the UAE with more foreign investment and new business setup in Dubai. Additionally, the move will mean quality human capital for the country.
The Prime Minister of UAE, Sheikh Mohammed bin Rashid Al Maktoum, also the ruler of Dubai, said “the new measures were aimed at attracting skilled professionals and their families to help in the development of the emirates.”
“We adopted law amendments that allow granting the UAE citizenship to investors, specialized talents & professionals including scientists, doctors, engineers, artists, authors, and their families. The new directives aim to attract talents that contribute to our development journey,” he added.
The nomination and approval rights for qualifying the eligibility of such citizenship will lie with the UAE cabinet, local emiri or rulers’ courts, and executive councils of the seven emirates under clear criteria set for each category. The law will allow those qualified and provided with UAE passports to “keep their existing citizenship”, he added.
The changes to the law on nationality and passports, in effect, will allow expatriates to become dual citizens and for the first time in history for any of the Middle East nations. The UAE has also become one of the few countries in West Asia to grant citizenship to expatriates, who form a large chunk of the population in the region.
The UAE alone is home to millions of foreigners, one of the largest concentrations of expatriates in the Middle East and other parts of West Asia. It is believed that this citizenship amendment act along with the recent Abraham Accord and normalization of diplomatic and economic ties with Israel will witness increased FDI pouring into the UAE with many new Dubai company incorporation as well as many new businesses in other parts of the Emirates.
The categories that can qualify to acquire UAE nationality include.
- Investors
- Specialists
- Families, spouses, and children
- Doctors
- Scientists
- Artists
- Inventors
- Talents
- Intellectuals
Granting of citizenship will be through nominations from the courts of rulers and crown princes, executive councils of the seven emirates, and the cabinet and will be based on nominations received from federal entities.
The UAE cabinet declared the changes in line with an order received from President Sheikh Khalifa bin Zayed Al Nahyan to attract and retain individuals with specialized skills and innovative minds.
The amendments laid down certain criteria and conditions to be fulfilled by each of the above categories before granting UAE citizenship.
Doctors and specialists must be specialized in a unique scientific discipline or any other scientific principles that are highly required in the UAE and have acknowledged scientific contributions, studies, and research of scientific value and practical experience of not less than 10 years, in addition to obtaining membership of a reputable organization in his/her field of specialization.
Scientists are required to be active researchers at a university, research center, or in the private sector, with practical experience of not less than 10 years. They should have contributions in their field, such as winning a prestigious award or securing substantial funding for research in the past 10 years. It is also mandatory to obtain a recommendation letter from any recognized scientific institution in the UAE.
Investors must own a property in the UAE
Inventors need to obtain one or more patents approved by the UAE’s ministry of economy or any reputable international body, in addition to a recommendation letter from the Economy Ministry.
Persons with creative talents, such as intellectuals and artists, should be pioneers in culture and arts and winners of one or more international awards. A recommendation letter from related government entities is mandatory as well.
If some expatriates qualify then before acquiring citizenship, the expatriates must swear an oath of allegiance, commit to abide by local laws, and inform authorities in case they acquire or lose any other citizenship.
UAE citizenship offers a range of benefits, including the right to establish or own commercial entities and properties, and any other benefits coming into effect from federal authorities.
- Newsletter, Oman
- March 17, 2021
The recent amendment in Oman’s labor laws can be seen as a Government effort to reduce the rights gap between expatriates and locals and this amendment of Foreigners’ Residence Law now enables expatriate workers to transfer jobs without seeking prior approval from their employer; reported a local daily Times of Oman in its press briefing.
The amendment abolished the “No Objection Certificate” (NOC) requirement which, as per the Oman Human Rights Commission, will increase competitiveness between Omani and expatriate workers. This amendment at the same time will also offer protection to low-income families.
The requirement for expatriate workers to obtain a NOC from their current employers to join another company was in force since 2014 under the law of residence for foreigners in Oman. The law required that if a foreigner didn’t secure the NOC from the current employer, the employee was banned from working for any other employee for two years.
The new decision will now enable the foreign employees to switch over to new jobs depending entirely on the lapse of existing work contracts.
The commission added that the decision was also expected to reduce the number of foreign workers leaving the country, who do so because they fail to get NOCs. “The decision will also contribute to reducing the cases of non-Omani labor absconding, especially those who are denied a NOC, thus forcing the worker to stay outside the country after the expiry of his contract,” the commission said in its annual report.
As highlighted by the Times of Oman, the recent amendment is also expected to reduce the gap in wages between local and foreign workers.
“All these legislative and legal amendments, which came in response to the current circumstances, will undoubtedly have a more positive impact on protecting the rights of citizens and residents,” the Oman Human Rights Commission reported.
The policy on Labor Reform was also initiated by Saudi Arabia in November last year mentioning the exceptional situations under which foreign workers were allowed to move to a new job without the prior consent of their present employer.
The scrapping of NOC requirements in Oman can be considered as a significant development in labor laws as this will have a profound impact on the Omani labor market providing much-needed flexibility in changing jobs within the country and foreign workers will find Oman to be more attractive in absence of restrictions.
As Oman continues to attract more foreign talents, many foreign investors are likely to be lured for investments and new company formation in Oman.
Besides labor reforms, digital transformation is also fast happening in Oman and across several ministries and Oman’s fiscal plan announced in November last year also included a number of reforms signalling that business setup in Oman will continue to be easier in post-pandemic time.
- Newsletter, Saudi Arabia
- March 17, 2021
Qiddiya Investment Company (QIC) and the General Authority for Small and Medium Enterprises (Monshaat) in the Kingdom of Saudi Arabia came into an agreement and signed two memoranda of understanding (MoUs).
The agreements are intended to enhance bilateral cooperation between the two entities and provide QIC with access to the “Jadeer” portal, the database of local SMEs, and develop Qiddiya as a destination that provides an open and supportive business environment for SMEs.
Philippe Gas, the CEO of QIC noted, “These two MoUs reflect our continuous effort to enhance cooperation and strategic partnerships with local entities involved in national transformation, in line with the ambitions of Saudi Vision 2030.”
Gas also emphasized, “These MoUs mean that local SMEs will be able to easily access information about the Qiddiya project and the numerous opportunities available in QIC.”
The comments were made after the deal with Monsha’at Governor Saleh bin Ibrahim Al Rasheed was signed off by Philippe Gas of QIC.
Governor of Monshaat Eng. Saleh bin Ibrahim Al-Rasheed remarked, “These MoUs highlight Monshaat’s keenness to enhance cooperation with the public and private sectors and to create an environment that stimulates the growth and prosperity of small and medium-sized enterprises.”
He stressed, “It will help to increase competitiveness and will contribute to the development of local entities by boosting and developing the standard of SMEs in the Kingdom.”
“It will also support them to reach the opportunities provided by the public and private sectors, including those offered by QIC”, the Governor also highlighted.
Under the first MoU, QIC will provide Monshaat with commercial opportunities across the key sectors of hospitality, tourism, and entertainment encompassing all areas of the business such as contracting, supply, logistics, IT, maintenance, public services, and many more.
Certain conditions will need to be fulfilled by service providers, that will help Monshaat to rehabilitate SMEs and formulate policies, standards, and strategies to raise the productivity of these enterprises and increase their contribution to the GDP.
This will eventually enhance the contribution of local entities to the major projects which are presently being implemented in the Kingdom and are in the pipeline for implementation after their company registration in Saudi Arabia.
Monshaat will help QIC build its innovation center that would benefit from Monshaat’s experience in this field and will also give QIC access to its research facilities and centers.
Moreover, Monshaat will provide access to Qiddiya of statistical information to be used in developing Qiddiya’s various project sectors.
The second MoU will give Qiddiya access to Monsha’at’s “Jadeer” portal, a database of SMEs operating in the Kingdom of Saudi Arabia and categorized by sector including a list of emerging companies that benefit from business incubators.
This access to the digital and research facilities of Monsha’at will give Qiddiya easier communication between QIC and other entities in sectors where there exist opportunities for collaboration and will also improve the decision-making process for the QIC and make it an attractive environment for SMEs and emerging companies.
This initiative comes as an important recognition of Saudi Arabia’s broader economic and social outlook focusing on boosting SMEs to a level that they can contribute significantly to Saudi gross domestic product by 2030 through meaningful business collaboration with foreign entities aspiring for new business setup in Saudi Arabia.
- Newsletter, U.A.E
- March 17, 2021
Abu Dhabi National Exhibitions Company (ADNEC) and Expo Tel Aviv, the leading exhibition center of Israel, enters into partnership to encourage and promote further collaboration and cooperation in the business of travel and tourism sector in the region. The MOU signed will help in identifying and capitalizing on the business opportunities for the Middle East’s business tourism sector and will facilitate new business setup in Abu Dhabi.
The Memorandum of Understanding (MoU) signed between the two leading exhibition centers will forge a relationship and enhance their respective new business pipelines and increase opportunities for collaboration at both venues as reported by the state news agency.
The MoU demonstrates the greater spirit of cooperation between the United Arab Emirates (UAE) and Israel. The agreement was signed at a virtual signing ceremony between Humaid Matar Al Dhaheri, Managing Director and Group CEO of ADNEC, and Tamir Dayan, CEO of Expo Tel Aviv.
Humaid Al Dhaheri in his comments about the agreement added, “Our relationship with Expo Tel Aviv will enable the wider growth of the business tourism sector in the UAE and wider region, which ADNEC consistently seeks to promote. This strategic partnership showcases ADNEC’s efforts in fostering intraregional cooperation and will offer new developments for the transfer of knowledge to local audiences. Through this partnership, we aim to foster innovation and business opportunities between our two nations.”
Al Dhaheri remarked, “Additionally, this partnership will continue to boost ADNEC’s leading status as a key destination for business tourism. Our efforts to identify opportunities for collaboration with a range of regional and global partners are ongoing, strengthening the Middle East’s and the world’s business tourism sector.”
Tamir Dayan of Expo Tel Aviv remarked, “The Abu Dhabi National Exhibitions Company and Expo Tel Aviv provide models for regional leadership in the business tourism sector. Our mutual expertise in the design, delivery, and execution of world-class events makes us natural partners. Israel and The Emirates will probably be the first countries in the world to be vaccinated against the coronavirus and lead the exhibitions industry forward and now through this MoU, we are aiming to foster our cooperation, providing further opportunities for the transfer of knowledge and expertise between our two entities. My colleagues and I look forward to working with our Emirati partners in identifying and capitalizing on new opportunities for the Middle East’s business tourism sector, and welcoming new visitors from the UAE and beyond in Tel Aviv.”
ADNEC is committed to encouraging and promoting regional collaboration in the business tourism and events sector in the region, which is evident from a range of agreements and partnerships that have been signed with other countries in the Middle East. The continued focus of ADNEC on encouraging and exploring the greater outreach opportunities with event organizers and associations in Israel at the backdrop of the historic signing of the Abraham Accords in 2020 will provide new opportunities for pan-regional collaboration and cooperation including Israeli foreign investments by encouraging business entities to explore how to start business in Abu Dhabi Global Market.
Municipally owned Expo Tel Aviv is the leading and foremost international convention center in Israel’s leading and center city of an economy, commerce, culture, and media. The center hosts approximately 400 events every year that include both local and international conventions and exhibitions, along with events, fairs, and shows. Founded in 1933, the Expo Tel Aviv International Convention Centre houses eight pavilions and 20 conference halls, 45,000 sqm of exhibition and conference space. A 400 room hotel is also currently being developed. Expo Tel Aviv attracts over 3 million visitors each year and also hosted and broadcasted the 2019 Eurovision Contest to 200 million viewers across the globe.
- Article, Singapore
- March 11, 2021
The company law in Singapore mandates that as a business owner, you must appoint a Company Secretary responsible for compliance with all applicable laws and regulations. The Secretary also keeps all the company board members informed of their legal responsibilities towards the company and provides directions on how they should operate. Commonly termed as the compliance officer of a business entity, how to change corporate secretary Singapore calls for a well thought out judgment.
There are times when as a business owner you are not happy with the performance of your company secretary and are forced to replace him/her with someone better. Though unpleasant, you might need to dispense your company secretary and engage someone else. The procedures involved in changing your Singapore company secretary are sometimes long and tedious and it is always your best option to take external help from company secretary services Singapore.
When does the need for changing your Singapore company secretary arise?
It is not uncommon for companies to consider how to change corporate secretary Singapore. There may be many reasons that compel you to change your company secretary however the main ones are
- The company secretary is not dedicated and often unreachable after office hours.
- The secretary can not handle compliance and administration simultaneously and effectively.
- The company secretary can not keep the company functions aware of their impending company law deadlines e.g. accounts not informed timely on filing returns to regulatory authorities.
- The information given on company-related matters is incomplete and inaccurate.
- The secretary fails to maintain appropriate documentation and compliance on company legal matters.
- The remuneration of a company secretary is high and unreasonable.
What are the procedural requirements for changing your Singapore company secretary?
Before arriving at your final decision on how to change corporate secretary Singapore, it would be a wise move to directly communicate with your company secretary for understanding his/ her points and resolving the issues. Also, take the views of other management professionals of your company about the performance including collecting procedural information from company secretarial services Singapore. The decision for removal shouldn’t be subjective, rather needs to be founded on facts and figures.
Is it a mutually agreed separation with your Singapore company secretary?
It becomes easier and simpler when the company secretary is convinced and agrees to the decision of being removed from the company. It is then a straightforward process with any concern about how to change corporate secretary Singapore and only needs some documents to be organized.
- The resignation letter from your Singapore company secretary.
- A resolution in black and white from the Director.
Once these requirements are arranged, ACRA needs to be notified about the resignation. The transition including shifting over the responsibilities and sharing g of administrative records can take place at a later date.
Is it a forced separation with your Singapore company secretary?
As the business owner, you possess the right to dispense with your appointed Singapore company secretary, even when she/he may not agree and refuse to leave. This may lead to some complications and turns unpleasant when a secretary has to be removed without his/her consent.
Before deciding on how to change corporate secretary Singapore, it would be better to inform the company secretary in advance about your decision to remove him/her. The removal necessitates passing a board resolution to remove the company secretary. Once the resolution is done, you need to inform ACRA about the removal of the company’s secretary. It is also necessary and important to file a cessation within 14 days after the removal. ACRA will impose a late lodgement fee in case the company fails to update timely and within the prescribed time frame.
Conclusion:
A Singapore company secretary is crucial to your businesses in Singapore as ACRA attaches a lot of importance to company secretary policies. Hence, any decision on how to change corporate secretary Singapore must be made at the right time and place as it wouldn’t be prudent to remove him/her during AGM preparations and other important business proceedings.
- Newsletter
- March 7, 2021
On 5 January 2021, in a landmark declaration and signing of ‘solidarity and stability’ agreement during the 41st GCC Summit held in the city of Al-Ula; the UAE, Saudi Arabia, Bahrain, and the rest of the Gulf Cooperation Council (GCC) member states, including Egypt, signed the “Al-Ula Declaration” of ‘solidarity and stability’ marking the end of a three and a half year trade and diplomatic restrictions against the State of Qatar, severed on 5th of June 2017.
Although the “Al-Ula Declaration” has not been formally made public, re-establishment of political and economic ties between Qatar and other GCC countries including the UAE, Saudi Arabia, Bahrain, and Egypt has been made amply clear through the public statements made by senior Saudi, UAE, Egyptian, Bahraini and Kuwaiti officials.
Restoration of diplomatic ties with Qatar has led to the reopening of Qatar’s land, sea, and air borders to other GCC countries which were closed in the aftermath of diplomatic disputes resulting in the closure of airspace, land, and marine borders since 2017.
Qatar and Saudi Arabia share a land border that is now open for traffic including the marine borders between Qatar, Bahrain, Saudi Arabia, and the United Arab Emirates. The airspaces of Bahrain, Egypt, Saudi Arabia, and the United Arab Emirates are now open and the aircrafts originating from Qatar can enter others’ territory after the announcement was made.
Following the Al-Ula declaration, Saudi Arabia and the UAE have taken immediate steps to re-open all land, marine, and air passages for both inbound and outbound movements, to and fro, Qatar, and the concerned authorities in both countries have issued appropriate directives to this effect.
Resumption of air traffic between the UAE and Qatar happened from 9 January 2021 when the General Civil Aviation Authority (GCAA) of UAE declared re-opening of airspace stating that the GCAA would resume both scheduled and unscheduled flights between the two countries.
In similar efforts, on 8 January Abu Dhabi ports for Qatar vessels were opened and vessels were scheduled to depart the UAE for Qatar as the next port of destination.
Saudi Arabia too had announced similar measures that took effect from the evening of 4 January. The Civil Aviation Affairs (CAA) at the Ministry of Transportation and Telecommunications of Bahrain also announced the opening of Bahraini airspace for Qatar-registered aircraft, commencing 11 January. Similarly, according to the Egyptian Ministry of Civil Aviation, Egypt had reopened its airspace on 12 January, allowing Egypt Air and Qatar Airways as well as other Qatari airlines, to resume air traffic.
Trade and Business for both Qatar and the four GCC nation-states including Egypt look very promising in the near future which is also pointed out by S & P Global Ratings who added, ” We expect that the resolution of the boycott will support improvement in the region’s broader business and investment environment.”
In the wake of the restrictions imposed in 2017, most businesses in Qatar needed to re-strategize and reinvent their supply routes and procurement models to avoid the strategically located restricted jurisdictions including the UAE and KSA.
It is not only Qatar, during this embargo all businesses operating in the gulf had faced severe disruptions to transportation and supply routes, and workaround supply chains adversely impacted all businesses with higher operating cost and time.
Due to the recent development and lifting of the restrictions, it has now become paramount for businesses and organizations with operational presence in Qatar to realize and comprehend the implications of this trade development. It is believed that this recent agreement will present many opportunities to relook into the logistics and supply chain for optimizing overall business performance through business process reengineering and the right determination of customs and trade implications of such a supply chain and business model will be crucial for re-configuration.
Critically reviewing and assessing new supply chains with value stream mapping, businesses will identify how existing supply chains need to be changed for improved performance. Import duties and taxes can be an area of significant importance in optimizing the routing of goods around the GCC region.
As Qatar has introduced and demarcated several Free Zones, many multinational and GCC-based businesses should find the country economically preferable for new business establishments with access to numerous incentives to benefit from including tax holidays and customs duty reliefs on imports.
Businesses expected to reap the maximum benefit out of this deal will be the banking, import-export, travel and tourism, aviation, and hospitality sectors.
Even with the official lifting of the restrictions against Qatar, it is likely to take some time before the administrative decisions are enacted in full force and spirit to fully resume the shipment of goods between the Quartet and Qatar. The customs clearance protocols also need to be standardized. Though it would be too early to predict the outcomes, it will be a strong and important foundation for the economic prosperity and political stability in the GCC region. The 2022 FIFA world cup scheduled to be organized in Qatar will also act as a catalyst for the enhancement of business and trade.
- Newsletter, Singapore
- March 5, 2021
Effect of New Regulation on Existing DP Holders
From May 1, 2021, foreigners staying in Singapore on Dependant’s Passes shall need a work pass to work here instead of a Letter of Consent (LOC) issued from the Ministry of Manpower (MOM).
This new rule will need the employers of DP holders to apply for either an Employment Pass (EP) or S Pass or work permit for them as the case may be, subject to similar requirements applicable to other foreigners as relevant qualifying salary, dependency ratio ceiling and levies. For spouses and family members already working in Singapore, this new rule of work pass requirement will come into force once their current letter of consent expires. On the expiration of LOC, employers of DP holders must apply for an applicable work pass if they wish to continue hiring them.
Reasons for Introducing New Regulation
Manpower Minister Josephine Teo announced the change on Wednesday, 3rd March 2021 during the parliamentary debate on her ministry’s budget, saying that it is “for consistency with recent work pass moves” facilitating the transition to work pass and alignment with other foreign workers. The move is intended to bring consistency to the work pass framework, said the ministry.
Mrs. Teo also set out her ministry’s priorities in managing the foreign workforce and balancing the need for foreigners in some sectors while strengthening the Singaporean core, which several MPs had asked about. The Local Qualifying Salary used by MOM is aimed at determining if local workers are meaningfully employed and not just given token salaries and allow the employer to hire foreign workers.
She said: “Our fundamental objective is always to serve the interests of Singaporean workers. Access to foreign workers is meant to help grow a larger economic pie than we otherwise can. Therefore, the foreign workforce must act as a complement to our local workforce.”
Minister Josephine Teo noted, “We will provide sufficient time for existing DP holders working on a LOC, as well as their employers, to transit to this new arrangement. Most of them meet prevailing work pass criteria. Those that do not will have to cease working in Singapore.” She also highlighted that most of the DP holders do not work during their stay in Singapore and represent only about 1 percent of all work pass holders.
As for skilled foreigners on Employment Passes, MOM aims to ensure.
- Foreign professionals complement locals, and
- Employers practice fair hiring and improve the diversity of their foreign professionals, managers, executives, and technicians.
Existing Regulation
An Employment Pass or S Pass holder must earn a fixed monthly salary of at least SGD 6,000 to bring their spouse or unmarried children under 21 years old to Singapore on Dependant’s Passes.
Presently, dependents of S Pass holders only need to apply for a relevant work pass if they want to work in Singapore, while dependents of skilled foreign professionals or entrepreneurs on Employment Passes, EntrePasses, or Personalised Employment Passes can apply for a LOC.
Effect of New Regulation on Existing DP Business Owners
With this new rule coming into force, only DP holders belonging to the ‘business owners category’ can work using a LOC, and only if.
- They own at least 30 percent of the company shares as a sole proprietor, partner, or company director and
- Their business creates local employment. They must employ at least one Singaporean or permanent resident earning at least the prevailing local qualifying salary of SGD 1,400 and make contributions to the employee’s Central Provident Fund accounts for at least three months.
Effect on ‘Would Be’ Business Owners
Applying for an Employment Pass (EP)
Applying and receiving an EP pass to work in Singapore include the following.
- You need to secure a job offer first
- The employer puts an application online on behalf of you for the EP with supporting documents
- Approval and Issuance of EP in your name
- Renewal of EP after 2 years for the first time and then subsequent renewals every 3 years
Increased Salary Requirements for EP
The salary requirements for Employment Pass holders were raised two times last year, from SGD 3900 to 4500 and at least SGD 5000 for individuals working in the financial sector in a bid to tighten the framework. The S Pass qualifying salaries were also raised.
The qualifying salaries for older and experienced EP applicants in the age bracket of 40 years and above were also raised to almost double the minimum qualifying salaries of younger EP applicants.
The MOM has also tightened other rules on family members of foreigners discouraging them to come to Singapore on DPs or long-term visit passes, according to Straits Times.
The S Pass policy has been tightened in the previous two years with sectoral quotas being curtailed and the qualifying salary raised twice last year.
The qualifying salary for EP holders was raised twice during last year, and the ministry will explore possible refinements, Mrs.Teo added.
Enhancement of Capability Transfer Programme to further boost Skill Transfer to Locals
An extension of the Capability Transfer Programme has been planned for another three years, until end-September 2024, to ensure effective skills transfer to locals.
The program was originally launched in 2017 and provides up to 90 percent funding for a company or industry projects to bring in foreign specialists to train locals or send local workers on overseas training attachments especially in the areas Singapore doesn’t have much expertise.
About SGD 5 million has been budgeted so far to support projects in 20 sectors, noted Mrs. Teo, also adding that the program remains a useful complement to other schemes that support company transformation and the development of local Singaporeans.
In his last month’s Budget speech, DPM Heng announced this extension of the capability transfer program. He highlighted that as at the end of last year, more than 140 companies and over 970 Singaporeans and permanent residents have benefited, or are expected to benefit, from 40 projects under this scheme.
Mrs. Teo also said that the purpose of this program extension is to encourage greater take-up of the program however adding that the Government reviews all of its business support schemes from time to time to streamline them.
Likely Modifications to S Pass and Employment Pass in Recent Future
For the S Pass holders earning a fixed monthly salary of at least SGD 2,500, the employers should expect further changes to rules over this decade, said Mrs. Teo.
S Pass policy has been tightened over the last two years, with sector quotas being cut and the qualifying salary being raised twice last year. Deputy Prime Minister Heng Swee Keat declared a cut in the manufacturing sector S Pass quota from 20 percent to 15 percent by 2023 in the Budget speech last month.
She said that MOM will focus instead on helping companies become more manpower-lean while strengthening their Singaporean core.
She remarked that periodic adjustments will continue to be made to the local qualifying salary, as the minimum salary for locals to count towards a firm’s headcount in calculating the work permit and S Pass quota, to ensure locals are not hired on a token salary. It will not be increased this year to give firms time to recover from the impact of the Covid-19 pandemic.
The salary threshold is by no means a perfect gatekeeper of quality, but it is easy to understand and administer,” she said.
She explained that this method is favored over an EP quota, which would limit Singapore’s ability to compete for the most cutting-edge investments amid the worldwide shortage of tech and digital skills, hurting Singaporeans’ longer-term career prospects.
She added that implementing levy charges for EP holders, as Non-Constituency MP Leong Mun Wai of the Progress Singapore Party called for last week, may not be useful either since companies can employ overseas knowledge workers remotely.
Mr. Leong asked during the budget session whether Singaporean workers have been disadvantaged because foreigners do not have to make Central Provident Fund contributions, and there is no requirement for succession planning when firms apply for grants.
Mrs. Teo replied that last year, amid the pandemic, the foreign workforce contracted by over 180,000 in number and the local workforce grew modestly.
- Article, Singapore
- March 1, 2021
Are you already thinking of expanding or starting your business in Singapore? What is the first thing that pops in your mind? A modern office space with a neat lobby and beautiful interiors? Everything beautiful has its price. Why pay exorbitant rental bills for office space when you can support your business from the comfort of your home?
Nonetheless, for incorporating your company in Singapore, the most important credential is a registered business address. People who are just starting or expanding to new locations in Singapore must read on to know the answer to all their questions.
How can I incorporate without going for physical office space?
We all know that Singapore has a space crunch, and not all businesses can afford a physical office because of very little revenue to spend on an expense that can be so easily avoided. We recommend going for virtual office spaces.
Virtual office spaces are not only manageable financially, but they also give a boost to your business when employees can work from their homes from any corner of the world. IMC can help you attain one such space for your business. There are various packages for such a subscription, and it generally includes a registered business address, communication services like phone and receptionist services, mailboxes, and mailing address.
If you plan to incorporate without a physical address, then virtual office spaces might be the answer. You can own a physical space without coming to the office and paying rent for the entire office space. Meanwhile, you can also carry out all your business using the internet. Whenever a communication arrives at your mailing address, we will let you know.
Is Virtual Office considered for Incorporating a company in Singapore?
A virtual office with a registered business address is as real as a physical office space in Singapore. You might have many doubts because we understand that it might be difficult to buy what we are saying. To strengthen what we are saying, we will state the ACRA’s criteria for your business’s physical space.
- The address of the office must be a physical location situated within Singapore
- The physical office space should be accessible by anybody for at least 5 hours every day
Guide to Incorporating Your Business in Singapore: Essential Checklist
Tips on Choosing the best virtual office space
1. Rental costs on a physical space
Saving costs on a rental space can be the top of your mind priority if you start small. If you have an internet business with digital services only, then a virtual office space might do wonders for you. On the other hand, if you are a business that needs most of your staff to be present in the office to conduct business, then a virtual office space might not be of use to you.
Moreover, while selecting your virtual office space package (which can range from a few hundred dollars to thousands of dollars), read the services offered to you in the package. Companies that do not provide the mailing address as a part of the package and ask you to top it up with these services with extra charges applied.
2. Work from home is a choice, not a necessity
3. If you want a work culture that should be flexible even when your business is small and still growing
4. The quality of services provided
5. Privacy
- Article, India
- February 20, 2021
Summary
The United Kingdom and India enjoy long-standing business legacy and deep-rooted diplomatic and economic ties with a strong existing robust bilateral investment relationship that is all set to further flourish during the post Brexit era and boost up UK’s investment for many new India company incorporation.
How is UK India Business Relationship?
Several facts and figures available from the UK India Business Council demonstrate the strength of the relationship and the strong business ecosystem the private sector companies have built-in India. From 2000 to 2016, the UK invested approximately $24 billion in India and increased its investment by almost 8 per cent. between 2015 and 2016. The UK also ranked as the largest of all foreign investors into India.
The operating environments in both countries are congenial to mutual investment and business relationships. An ongoing focus on ease of doing business is expected to give huge dividends.
A Bilateral Investment Treaty providing, protecting and promoting FDI flows would be the harbinger towards a long-term UK-India trade and investment relationship where lots of future scopes exist that can mutually benefit the two countries and enable the potential of both the economies to be realised in the fullest extent. It is also noteworthy that both governments are striving hard to push the pace of their country’s economic development.
The long legacy and historical ties have put India as one of the preferred business destinations for many UK companies, and the UK Government is firmly committed to promoting its existing investment relationship with India, world’s largest democracy and marketplace with great economic powers.
There has been a sharp increase in the number of UK companies entering India since 2000 and the number of new business incorporations over the last two decades greatly outnumbered those that took place in the entire 20th century.
Why an UK Investor Should Register and Incorporate a Company in India?
Following are some key reasons prompting the UK investors for a business set up in India
1. Improved Ranking in Global Competitive Index
2. Improvement in Ease of Doing Business Index
3. Make in India and Swachh Bharat, Clean India Campaigns and Digital India Initiative
4. Improvement in Online Application System for starting a business
5. Betterment in Credit Access
6. More Transparent Payment of Taxes
7. Introduction of GST for a more uniform tax system
8. Improved Legal System
9. Greater Political Stability
10. An young and talented workforce
What Should be the Market Entry Strategy in India?
A private limited company formation is the commonest, easiest and fastest type of Indian market entry strategy for foreign nationals and foreign companies with 100 per cent foreign direct investment into a private limited company or limited company under the automatic route where no Central Government permission is needed. Thus incorporation of a private limited company as a wholly-owned subsidiary of a foreign company or joint venture is the cheapest entry strategy for foreign companies and foreign nationals into India.
A private limited company provides limited liability protection to its shareholders and In the event of any unforeseen losses giving rise to statutory or legal liabilities, the shareholders of the company are not held responsible. Private limited companies can raise equity capital from prospective persons or entities interested in becoming a shareholder. Companies can also raise money from angel venture capital firms, private equity firms, hedge funds and arch investors. Debt financing from banks, NBFCs and other financial institutions are also possible.
How do UK Investors Register and Incorporate a Company in India?
The registration and incorporation of a private limited company can be done in less than two weeks subject to the availability of the following documents.
- PAN Card
- Residential Proof
- Authorization letter from the Landlord of registered office space
- Address Proof
- Registered Office Proof
- Proof of any utility service like telephone, gas, electricity, etc.
The procedural steps on how to register private limited company in India are documented in details online and include the following
Step 1. Submission of Application for digital signatures to eMudhra
Step 2. Submission of Name Approval Request to MCA
Step 3. Preparation and collection of incorporation documents based on the MCA approved name
Step 4. The signing of incorporation documents by all Directors & Shareholders
Step 5: Submission of incorporation documents to MCA for approval
Step 6. Incorporation of the company
Step 7. Issuance of incorporation certificate & PAN
The Fine Print
The Indian government is putting all-round efforts to protect and promote FDI inflows and promising to secure a long-term UK-India trade and investment relationship and help close existing gaps and enable the full potential of both the economies to come to a success.
The UK is constantly seeking to build strong relationships with India after Brexit by realizing the enormous business opportunities due to the recent announcement of India government’s manifesto proposing to spend more than £1 trillion on infrastructure and nearly £10 billion for farming with continued policy reforms. The results should be positive for companies in housing, transport, construction, property, agriculture and financial investment sectors.
- Article, U.A.E
- February 19, 2021
ADGM Background
Abu Dhabi Global Market is an award-winning international financial centre and free zone located on Al Maryah Island in the heart of Abu Dhabi. Its strategic location helps to serve the growing economies of the Middle East, Africa and Asia.
Since the time it came into operations in 2015, it has gained immense global recognition for its robust, progressive and responsive business-friendly ecosystem. Besides, it is an ideal location for businesses operating in the financial sector, particularly private banking, wealth management, insurance and asset management.
Some of the compelling reasons to consider setting up a company in ADGM are 0% corporate and personal tax, 100% company ownership, 100% repatriation of capital and profits, 100% import and export tax exemption and no currency restrictions.
Legal Framework of ADGM
The ADGM free zone is governed by its own rules and regulations and is controlled by three independent authorities – the Registration Authority, the Financial Services Regulatory Authority and the ADGM Courts.
ADGM came into existence in accordance with Federal Legislation and Abu Dhabi Legislation including Abu Dhabi Law No. 4 of 2013 with its own civil and commercial laws. The free zone offers a world-class legal system and regulatory regime.
Setting Up in ADGM
The four broad categories of businesses that can set up in ADGM are financial businesses, non-financial businesses, retail and Special Purpose Vehicles. Let us see each category in detail.
1. Financial Business
As an International Financial Centre, ADGM offers a conducive environment to financial businesses along with the geographical advantage of serving growing economies. Let us see, which type of companies can set-up under financial business.
Banking
- Corporate and transaction banking
- Private banking and wealth management
- Investment banking
- Money service business
- Digital banking
Wealth and asset management
- Investment management
- Funds and fund management
- Asset servicing
- Virtual assets activities
- Securities
Capital markets
- Brokerage
- Market infrastructure
FinTech
- FinTech
- RegLab
2. Non-Financial Business
Along with financial businesses, ADGM also provides a legal and operational platform for non-financial businesses. Let us see, which type of companies can set-up in ADGM under non-financial business.
Corporate
- Corporate headquarters
- Corporate treasury
- Family offices and foundations
- Professional services
- Tech start-ups
- Associations
3. Retail
ADGM also offers a dynamic environment for retail businesses. Some of the permitted retail activities in Al Maryah Island include wholesale and retail trade, manufacturing, transportation and storage, repair of motor vehicles and motorcycles, accommodation and food service activities, scientific and technical activities, information and communication, arts, entertainment and recreation and administrative support service activities, among others.
4. Special Purpose Vehicles (SPVs)
SPVs are passive holding companies that come into existence with an intention of isolating financial and legal risk by ring-fencing certain assets and liabilities. The SPV regime at ADGM
Procedure to Set-up in ADGM
If you are looking to set-up in ADGM, there are various options available for you. You can incorporate as a business limited by shares where you will need at least 2 directors, or you can open a branch of the company which is already established in the UAE or any other foreign country.
When you decide to set-up in ADGM, you will be required to fill up an online application form through ADGM online registry solutions. You can also opt to apply offline by paying some extra fees.
The ADGM registration process is as follows:
- Before filling and submitting the business application form, you will be provided with a special business development team to discuss the requirements of your business.
- After receiving the approval from the authorities, you need to fill up the online registration or incorporation form and submit the required documents mentioned in the form.
- On receiving approval, you will be issued a commercial license within a week.
- In order to proceed with the visa processing, you need to apply for a FAWRI account and Establishment Card.
So, this was a brief process of setting up a business in ADGM. However, the specifics of the process largely depend on the kind of business you wish to carry on, type of license and so on. Therefore, it is advisable to consult an expert who can guide you through the entire process and ensure smooth and timely incorporation.
For any assistance related to business set up and allied services in ADGM free zone, you may get in touch with IMC Group.
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