- Article, India
- December 30, 2019
Running a business is not a cakewalk. There would be many challenges at every step. As an individual, it becomes very important to have clear thoughts and make the right business decisions at the right time. One of the toughest decisions that an entrepreneur has to take is whether or not he should shut his business. When the circumstances of the business are not favourable, it the right time to shut the business and venture into a new one. In this article, you will learn about the signs to shut your current business and start another one.
Signs to Shut Your Business
No Business Growth
Even after trying hard and giving a steady push, there is no significant growth in the business then this is not a good sign. There is something wrong with the business and it’s time to pause and look at the processes again. Even after that if things are not working well then it is the right time to close your business.
No Profits
The aim of starting any business is to make good profits. When your business is working at full capacity and still you are not making enough profits then it is the time to implement new systems. If the new systems and processes are not giving an improvement in operations and profitability then it’s the right time to stop your business and venture into something which is more fruitful.
- Article, Singapore
- December 30, 2019
Singapore is one of the most attractive destinations in the world to set up a business. A private limited company is the most suitable option for incorporating a business in Singapore. Private limited companies in Singapore receive various benefits in the form of tax savings, limited liability and minimum compliance obligations. However, the Companies Act in Singapore has introduced the “small company” concept. The private companies in Singapore get audit exemption if they fulfil “small company” criteria. This is done so as to reduce the overall compliance cost and regulatory burden on private companies.
Small Company
First understand the meaning of a small company to the Companies Act in Singapore, a company is considered a small company if it fulfils two out of the following three conditions:
A company that qualifies to be a small company is not required to have its accounts audited and appoint an auditor. Besides the private companies or small companies, group companies i.e. holding or subsidiary of private companies also get audit exemption if they qualify as a small group company.
Group Company Audit Rule
A group company is a holding company and its subsidiaries that together are a part of a group and has a common source of control. A group company can avail the exemption of annual audit if the holding and subsidiary companies individually;
To qualify as a “small company”, all the companies comprising the group must fulfil at least two out of the following three conditions in the immediate two preceding financial years;
Therefore, if the company wants to avail the audit exemption, the subsidiarity and holding company as a group must fulfil the above mentioned criteria.
Change in Company Status
When a company acquires the status of a “small company”, it will continue to enjoy the audit exemptions until it is disqualified. Disqualification of a small company occurs when;
If you are looking to avail audit exemptions for private companies in Singapore, you may get in touch with IMC Group.
- Article, India
- December 19, 2019
The new GST return filing system is now revamped in many ways. In this article, we will discuss about the amendments which might not attract our attention immediately such as HSN summary, advances received, non-GST supply details, details relating to e-commerce supplies, TDS, TCS, and more.
The table below shows a comparison between the newly-launched return system and the old or current return system:
|
Particulars |
Old/Current Return Filing System | New Return Filing System |
| HSN Reporting | Till now, HSN-level data was not needed to be disclosed for every invoice. But, Central Tax notification number 12/2017 dated 28-06-2017 needed disclosure of HSN data as follows: – Annual turnover in previous FY up to Rs 1 crore: No HSN needed – Annual turnover in previous FY which is between Rs 1 crore and Rs 5 crore: HSN of 2 digits – Annual turnover in previous FY over Rs 5 crore: HSN of 4 digits. The Annual Return (Form GSTR 9) also has a section in Table 17, which gives an HSN-wise summary of outward supplies. Likewise, a summary of inward supplies is also to be reported in Table 18, only when turnover under a specific HSN code goes over by 10%. |
Suppliers having annual aggregate turnover over Rs. 5 crore relative to exports, imports and SEZ supplies have to upload HSN-level data of 6 digits. All other suppliers can declare HSN optionally. Nevertheless, notification number 12/2017-Central Tax dated 28-06-2017 remains effective till cancelled by CBIC. The reporting as per GSTR-9 would continue till further changes are notified. |
| Exempt, Nil-rated and Non-GST Supplies | The reporting of the Nil-rated supplies, which are exempted and non-GST outward supplies were earlier done in Table 8A, 8B, 8C and 8D of GSTR-1 and also in Table 3.1(b),(c) and (d) of GSTR-3B. | Table 3D(1) and (2) of RET-1 enables reporting of particular supplies which are exempted from tax payment or are nil-rated, and supplies are made, but which are not encompassed under GST law (non-GST supplies) respectively. The form ANX-1 would not have any provision for reporting of this. In addition, Table 3D (2) of RET-1 includes supplies made which come under Schedule III -activities which are neither supply of goods or services. |
| Advances Received | 1. Table 11A(1) & Table 11A(2) of Form GSTR-1 was earlier utilised for reporting of details such as intrastate and interstate transactions which involved tax liability at the time of receipt, respectively. Thus, advances that were received were stated in this table. 2. Table 11B(1) & 11B(2) of Form GSTR-1 was utilised for adding details like advance received in a previous period and then adjusting them against supplies stated in the current period. |
1. Table 3C(3) of RET-1 enables for reporting of advances received that were taxable when they are received. The same should be net of the issued refund vouchers. Additionally, the table can be utilised to make the adjustments regarding any wrong reporting of advances in a previous period. 2. Table 3C(4) of RET-1 enables for recording of invoices issued in the current period especially showing the advances received in a previous period on which tax was paid by a declaration in Table 3C(3) of that particular period. |
| E-commerce supplies/TDS/TCS | 1. While specifying details of large invoices (over Rs. 2.5 lakhs) regarding taxable inter-state supplies, Table 5 of Form GSTR-1 is utilised. In case the supplies were made using E-Commerce Operators (ECO) in this table, then the checkbox regarding the same has to be selected and the GSTIN of the E-Commerce Operator (ECO) has to be entered after that. | 1. Table 3 (3A to 3L) of ANX-1 needs a declaration of several types of outward and inward supplies which are liable to reverse charge, any imports and any missing documents based on which some credit is claimed. Out of the supplies that have been declared in Table 3, the particulars of those supplies which were made using E-Commerce operators (who are needed to collect tax at source). There are some details that need to be given in Table 4, like GSTIN of ECO, the price of the supplies made, the price of supplies sent back, the net value of supplies and the total tax amount. |
- Newsletter, Qatar
- December 18, 2019
Key highlights and next steps
Qatar has made an announcement about the Ministerial Decision No. 39 of 2019 issuing the Executive Regulations to the Income Tax Law (Law No. 24 of 2018). These Regulations were issued in the Official Gazette on December 11, 2019 and will be applicable with immediate effect and the earlier Executive Regulations are now annulled. The Regulations aim on revolutionizing the local tax administration regime to be in alignment with Qatar’s global taxation commitments to bring greater transparency and also to encourage growth of foreign direct investment (FDI) in tandem with Qatar Vision 2030.
Main highlights and key changes:
Corporate Income Tax
- Supplementary guidelines on Permanent Establishments (PEs) comprising clear reference to a six-month (183 days) limit for service PEs and also project PEs.
- Taxability of various subsidiaries of companies that are listed on the Qatar stock market to the size of non-Qatari shareholding in the listed parent company. Companies conducting “Petroleum Operations” and working in the Petrochemical industry would stay fully taxable, if the company is fully or partially owned by the State of Qatar, be it directly or indirectly.
- Tax losses, if any, could be carried over for up to five years, in contrast to three years in the previous regulations.
- New Tax depreciation rates have been announced recommending a Straight Line method in place of the Written Down Value method which was mentioned in the earlier regulations.
- Amendments to the timeline for tax registration – 60 days now instead of 30 days. There is also a recommendation to use the new digital Tax Administration System.
- The scope of field inspections has been defined and also the approach that the General Tax Authority would adopt while assessing tax returns.
Capital Gains Tax
- Precise guidance on how to apply Capital Gains Tax on the sale of shares especially in Qatari resident companies by a non-resident corporate body.
Withholding Tax
- Amendments to the “wholly or partly” rule when testing performance to evaluate the applicability of Withholding Tax (WHT). The services that are used in Qatar or conducted for
the advantage of Qatar are considered as locally-sourced, irrespective of the place of performance and as a rule, will be subject to WHT. - Amendments to the rule on when a WHT payment would be due and who would be subject to registration obligation as WHT agent.Theamounts that are subject to WHT would now be considered as paid within a period of 12 months from the payment due date (only exception will be for Ministries and other Government agencies or public foundations).
- Addition of other detailed guidelines about WHT refund claim depending on application of double tax treaty.
Transfer Pricing
- The requirements for Transfer Pricing applicable for taxpayers have been announced along with new and updated reporting requirements that will be applicable from the tax year ending on December 31, 2019.
- The requirements for Transfer Pricing comprise four tiers of compliance: (i) Transfer Pricing Form or Questionnaire which is be submitted with the Tax Return, (ii) Masterfile, (iii) Local file
and (iv) Country by Country requirements or reporting (this has been already introduced in 2018-2019). - The Regulation takes a reference from International Accounting Standards and the Organisation for Economic Co-operation and Development (OECD) Transfer Pricing Guidelines (for instance, it takes a reference on the definition of an Associated Enterprise).
- Additional guidance are expected to be issued in due course to explain some key areas and this would include an Advance Pricing Agreement program that would be available to the taxpayers who are involved in some complex or material transactions.
The above-mentioned are among the many amendments that are going to reshape the current tax landscape of the State of Qatar.
Points which are still unclear
Some areas of the Regulations that are still not clear are:
- Exemptions in some specific scenarios that are applicable to legal entities which are partly owned by Qatari nationals.
- Some practical challenges that are related to the method of calculation of share of profits which are attributable to non-Qatari shareholders in the specific subsidiaries of the listed entities.
The way forward
The announcement of the four tier documentation approach in Qatar is expected to increase the compliance burden on all the taxpayers who are operating in this region. Global Multinational Entities might feel some comfort because the OECD Transfer Pricing Guidelines are referred to in the Regulations. The initiation of Advanced Pricing Agreements would also aid big Multinational Entities to gain certainty in times to come.
- Article, Bahrain
- December 16, 2019
Bahrain has become a huge attraction for investment opportunities in the past few years. As per the World Bank’s report in 2019 on doing business in Bahrain, the Kingdom has ranked as one of the best places for doing investment and it continues to make the most of it.
Investors from across the globe are now confident that Bahrain offers a rewarding investment environment, which brings us to the importance of forming or registering a company in the Kingdom.
Bahrain is an island Kingdom made up of a group of islands, located in the stretch of the Qatar peninsula and the north-eastern coast of Saudi Arabia. The government here welcomes foreign investment in Bahrain with open arms so as to boost its economy. As a result, the economic laws of the Kingdom have been significantly liberalized. Bahrain also recently passed some laws liberalizing foreign property ownership and tightened its anti-money laundering laws. In addition, the visa and immigration policies are made simpler to encourage business development and ease the process of setting up a foreign company in Bahrain.
Private organizations and firms, specifically in Information and Communications Technology (ICT), Tourism, Education, Banking, Healthcare and downstream industries and Financial Services & Insurance (BFSI) are flourishing in Bahrain.
Bahrain is a country that focuses on development and offers a business-friendly backdrop that is cosmopolitan, safe and unsurpassed in the Arabian Gulf.
Why should you invest in Bahrain?
Being a developing country in the Middle East, Bahrain is all set to grow and advance in a big way. Let’s take a look at some advantages of investing in Bahrain:
- The customs duty in the Kingdom is low, hence it favours exports
- The corporate policies are quite business-friendly
- The legal system is clear, coherent and simple
- The banking sector is developing at a fast pace, resulting in advanced banking facilities
- There is a huge scope of business growth and expansion
- The people of the Kingdom are pleasant and its culture is very supportive of entrepreneurial and industrial growth
- It has an advanced infrastructure, which is well-equipped with facilities to make the company incorporation procedure in Bahrain simpler
- It is the major port hub in the region, which offers convenient access to all the markets in the Middle East
- The tourism and entertainment industry in Bahrain has been flourishing and expanding year on year
- The standard and quality of life and variety of food in the country is quite tempting
Bahrain is now one of the major players in the financial and banking services throughout the world. Its strategic location and its sophisticated digital telecommunications systems facilitate communications with all business hubs and financial centres. Another big advantage is that the regulation, licensing, and supervision of advisors offering investment and any other financial advice in or from Bahrain is also quite regulated. This safeguards the investors from the probability of negligence or fraud.
What all should you know to start a business in Bahrain in the year 2020?
- Firstly, gain considerable knowledge about the region.
- As per the law, you must have a local partner who should be holding the majority of the shares of your company, and thus controls the business.
- After Bahrain company formation, the Ministry of Commerce should have ensured that you possess the minimum required capital for investment.
Also Read: Top 10 Business Opportunities in Bahrain
However, it is always recommended to consult a local business advisor right from the beginning. A reputed and experienced consultancy like IMC can help you sail through the formalities of company incorporation procedure in Bahrain, and help in attaining your business objectives, whether you are thinking of setting up a start-up or a larger firm.
What are the available legal structures in Bahrain?
When thinking of Bahrain company formation, you could opt from among the following legal entities:
1. Limited Liability Company
2. Branch Office
3. Partnership
When setting up a business in Bahrain, a partnership could fall in three categories:
- Partnership Limited by Shares
- Limited Partnership
- General Partnership
4. Sole Proprietorship
5. Bahrain Shareholding Company
- Public Shareholding Company
- Closed Shareholding Company
What are the steps to set up your small business in Bahrain?
Company incorporation procedure in Bahrain involves several requirements, which must be followed to run the business. The key steps are:
- Registering a company name: Then, you need to register your company name which would help identify your business forever. The Ministry of Industry and Commerce (MOIC) has outlined some guidelines to keep in mind when selecting a business name. You must ensure that you comply with those laws. An entrepreneur is allowed to propose up to four business names at a time.
- Doing the commercial registration of your company: The Commercial Registration papers are released by the Bahrain Investment Centre. They issue the papers after checking and ensuring that there is no fault in the application filled in the initial stage. The papers are given after paying the required fees.
- Licensing and approval process: Licensing and approval is required when a company or business does not get their Commercial Registration papers right away. Therefore, they need to follow this additional step for registering their company in Bahrain.
- Other Approvals: After registering your company successfully, the next steps is to open a company bank account, then lease an apt office space, and then hire Bahraini employees etc.
- Other Approvals: After registering your company successfully, the next steps is to open a company bank account, then lease an apt office space, and then hire Bahraini employees etc.
Company formation in Bahrain guarantees a huge earning potential, benefits of various tax exemptions, convenient facilities, state-of-the-art infrastructure, and liberalized public policies along with free trade barriers. We, at IMC, assist entrepreneurs, companies and corporates to set up their business in Bahrain, while taking advantage of all the benefits this economic and financial hub provides. Our professionals would take charge of all the visa, banking, licensing and legal formalities and help you to glide through the company incorporation procedure in Bahrain without any worry. If you are planning to start your own small business in Bahrain in 2020, please contact us and we would be glad to assist you.
- Article, India
- December 12, 2019
Start-ups often run out of the fuel due to shortage of funds. Their future prospects go in the dark when they lack finances. Therefore, most start-ups are advised to begin the business only when they are sure that there would not be any financial crunch because the functionality of the business majorly depends upon capital. The s tart-ups can source their financing from friends or family, angel investors, crowdfunding, business network, etc. Another source of finance that is getting very popular these days is raising funds through patents. In this article, you will learn how patents are an important source of finance.
Let us first learn about the meaning of patents.
Meaning of Patents
A patent is an intellectual property. The owner i.e. the inventor of the patent has the right to restrict the marketing, sale or use of the product or service. Therefore, the inventor of the patent has a monopoly over the operation of the product for a specific period of time. The main advantages of patent are as follows:
- Patent keeps competition away as others cannot use your invention.
- Patent acts as a source of finance. The inventor can sell the license of the patent to others or sell the patent in exchange for another asset.
Let us now learn how a patent can help in fundraising.|
Fundraising Through Patent
The inventor has to patent his invention so that it becomes a source of revenue and help him in developing new inventions for the market without worrying about infringement. Patents are important source of finance for the start-ups because of the following reasons:
- Patent ensures that the competitors cannot infringe your product.
- Patent ensures higher profits and a regular flow of revenue.
- If the patented invention has a promising future then it will attract a large number of investors who can acquire your patent.
- If the invention gets a good public response abroad, patent opens a potential market in foreign countries.
- Patent secures the position of your invention in the global markets.
- To increase investors to file for patents, the government provides many tax rebates and enables faster processing of documents.
There is a provision even to get the incomplete invention patented through a provisional application. The provisional application defines the field of the invention and its scope. This gives protection to the inventor against unlawful use of his idea.
The validity of the provisional application is for 12 months. After the period of 12 months is over, the inventor has to file a complete specification, otherwise the provisional patent application will then be considered as abandoned. After the filling for a full patent, the provisional specification given in the provisional application shall not be removed. The inventor must take care while writing a provisional application. It should be to the point and in context of the business objectives.
The provisional patent application can play a big role in the success of the business. The start-ups must file for provisional application before they proceed with a full patent. There are many advantages of filing a provisional patent application, they are as follows:
- Provisional application can be filed at a very low cost.
- It prevents competitors from filing patents related to that particular field.
- Before applying for the full patent, the inventor can conduct trials of the product.
- It gives protection of 12 months to the inventor of the patent.
One thing that is clear from the above is that a start-up can raise funds through patent only after securing it. A patent has the potential to generate huge profits in the long run.
If you are a start-ups looking for company registration in India or need help with patent registration, you can contact IMC Group. We understand the importance of patent registration for start-ups and therefore, we provide the service of patent, copyright and trademark registration in India. To know our quotation or if you have any query that you want us to answer, just drop us an email.
- Article, Singapore
- December 11, 2019
Singapore is one of the world’s most attractive destinations for start-ups looking to spread their wings. In fact, Singapore now has overtaken Silicon Valley to become the number one place across the globe for start-up talent. In the year 2016, the World Bank Group ranked
Singapore as the best place for “Doing Business” in the world. This article will help you in learning some of the key factors that make Singapore an attractive place for start-ups and expansion of business.
Business Friendly Policies
The business-friendly policies are the top factor for start-ups to grow in the country. The Singapore government ensures maximum support for the companies. The attractive tax-friendly rates, efficient transport system, well-functioning court system, public safety and minimal bureaucratic red-tape make it easy for the start-ups to access the assistance provided by the government. The easy to follow rules and kind of environment created by government makes it simple for start-ups to survive, grow and innovate.
Access to Resources
To become a successful start-up, assistance from various stakeholders is required. The market participants like investors, service providers, government organizations, research institutes, accelerators and co-working spaces give the start-ups an ecosystem to grow. Singapore government is very supportive towards start-ups. It provides them with necessary resources required for setting up the business. The type of help depends on the type of start-up you are incorporating in Singapore.
Access to Skilled Workforce
A company needs skilled workforce in order to expand its business or grow a start-up. Without skilled, knowledgeable and efficient workforce, the start-ups cannot survive. Therefore, entrepreneurs are always looking for countries where they can get skilled workforce at affordable rates. Singapore perfectly fulfils the need for skilled workforce for businesses. Therefore, for companies looking to expand their business, Singapore is an ideal destination.
Laws of the Land
A start-up while setting up its business would want an assurance that their intellectual capital and contracts with different countries would not be taken away arbitrarily. Singapore gives them this assurance with well-defined and robust laws. The corruption-free governance, accountability, stability and equal justice to all give the start-ups in Singapore the confidence to flourish their business.
Taxes
The taxation policy is one of the main criteria for start-ups before establishing their business in a country. Singapore is one of the best places for start-ups when it comes to taxation policies. The start-ups in the country attract tax exemptions for the first three years of the operations subject to conditions for start-up tax exemptions. Besides, the corporate tax rate is capped at 17%. Moreover, the businesses can carry forward their losses in order to reduce their future tax liability. Also, the corporate dividend is exempt from tax in the hands of the shareholders. What further makes Singapore more appealing for start-ups is that it has signed Avoidance of Double Taxation Agreements (DTAs) with more than 50 countries.
Protection of Intellectual Property
Intellectual property is a critical asset for any start-up. Investors invest in companies with a strong intellectual property portfolio as they have good future potential. The government of Singapore supports and encourages the protection of intellectual property. The government’s Intellectual Property Hub Master Plan protects the intellectual property rights of the companies in Singapore with modern legal framework. It covers trademark laws, copyright, patent, industrial design protection and trade secrets protections.
Ease of Global Expansion
Start-ups and other companies look to establish themselves in countries where they can easily expand their business globally. Singapore is located in the heart of Southeast Asia. Its location has many geographical advantages. Some of the largest economies of the world are a short flight away from Singapore. This gives businesses an opportunity to easily trade with big countries across the globe. Singapore also provides assistance programmes to help start-ups expand their business world-wide. The assistance is in the form of grants that can be used for hiring marketing staff, conduct market research or carrying out contractual negotiations.
Singapore, despite being a small country has achieved huge economic growth by focusing on its core proficiencies. The excellent infrastructure, highly advanced industrial sector, pro-growth reforms and pro-business policies have made it an excellent place for start-ups and expansion.
If you are keen to know how to start a business in Singapore, you can get in touch with IMC Group. We assist the start-ups in the process of company formation in Singapore. You can avoid the pile of paperwork and take our assistance at affordable rates. Our streamlined process will help you in starting a company quickly. If you require any more information or have a query, you contact us by dropping an email.
- Newsletter, Saudi Arabia
- December 9, 2019
One of the biggest obstacles for any entrepreneur or SME setting up their business in a new country is the humungous amount of paperwork needed, particularly in case of getting a licence to operate there. Various governments across the globe understand this challenge and are taking steps to simplify the process of doing business in the country, which in turn, attracts foreign investments and businesses to set up and add to the country’s GDP.
In 2019, Saudi Arabia opened its doors and simplified guidelines to pull in more visitors to the nation. Their visa-on-arrival and online visa application system went live this year on 27 September, and since then, over 50,000 visitors have travelled to the country.
Saudi Arabia, which is the GCC’s largest economy and also houses one of the world’s most profitable companies, has announced its plan to start an instant work visa scheme next month for SMEs and entrepreneurs who are thinking of setting up their base in the country.
“[The work visa service] will enable young Saudis to launch start-up projects, open small businesses, boost economic growth and accelerate business expansion plans, which will have a positive impact on national development.”
Ahmed Al-Rajhi, the minister of labour and social development
The ministry mentioned that this decision was made after undertaking an extensive study into the requirements of SME entrepreneurs. Therefore, this work visa has been designed especially for assisting new small enterprises. Additionally, the service would be available through Saudi’s Qiwa platform that is particularly designed for SMEs. This initiative is likely to also make it easier for Saudis to begin more and more start-ups.
This announcement was made during a meeting held with entrepreneurs from Hail Chamber of Commerce and Industry. It also said that entrepreneurs would now be able to gain from a set of integrated tools made available for SMEs. After an initial grace period, the ministry is planning to introduce a new framework which will nationalise the workforce of these businesses under the Saudi nationalisation scheme named, Nitaqat.
It’s a fact that SMEs are the backbone of any economy. As Saudi Vision 2030 is aiming diversification of its economic dependence away from oil, it is now also working to strengthen the tourism and economic sector by taking new initiatives to attract investors and businesses to the Kingdom. Under the Vision 2030, there are plans to enhance the contribution of SMEs to the country’s GDP from 20% in 2016 (when the vision was announced) to about 35% by the year 2030.
Though further details about the new visa service scheme are yet to be announced, it is a good sign for new businesses, particularly SMEs and start-ups based in the Middle East, who are planning to do foreign company registration in Saudi Arabia and gain from the large economy.
- India, Newsletter
- December 9, 2019
India is Opening up Myriad Business Opportunities for Companies in Central and Eastern Europe. The Commerce and Industry Minister Piyush Goyal announced recently that India is going to open up doors for big business opportunities especially for the companies based in central and eastern Europe. He said this at the India-Europe 29 Business Forum, which was organised by the industry body CII.
“We have lots of opportunities together and I hope we can look for a greater engagement. We have both comparative and competitive advantages. We offer incentives and have slashed tax rates. We have 1.3 billion people who are aspiring for a better quality of life,” he said.
Requesting countries for investments, Goyal highlighted that India is offering various incentives like low tax rates for the investors, which makes it an apt destination for new company formation in India.
The companies in central and eastern Europe are welcome to collaborate with Indian businesses and companies in sectors such as robotics and artificial intelligence (AI), new-age manufacturing and renewable energy.
While addressing the forum, Deputy Prime Minister for Economic and Demography Policy for Bulgaria, Mariyana Nikolova also sought new investments especially from India.
She mentioned that her country can offer a stable and anticipated policy regime and multitude of beneficial incentives for investors.
TS Tirumurti, secretary Ministry of External Affairs also mentioned that central and eastern European countries would gain advantage from the openings that India is proposing in various sectors.
- Newsletter, U.A.E
- December 9, 2019
The topic of a discussion at the recently held Super Return conference in Dubai was – What is the future ahead for the asset management and safeguard of family offices and high-net-worth individuals located in the Gulf Cooperation Council? In the event, the discussion hovered around how the world of family offices was changing. Titled ‘In it together: family offices, private equity and venture capital’, the main point from the event was that the market seemed promising especially for the high-net-worth clients who are thinking of asset diversification, particularly in private equity. They also emphasised how the sector is gaining from the professional attitude of the service providers in the area as the demands on them are increasing.
One of the experts at the event also said that the family offices such as the fund managers in the area, are anticipating more from their providers because the market is growing and there is ever-increasing demand for state-of-the-art technological infrastructure. People managing investments have a preference for service providers who are ready to work as an extension of their back office team and also provide a professional operational oversight function.
Although the investors are giving positive response towards private markets in general, they have been also conveying their caution. This shows in higher expectations of service providers to assist in providing peace of mind. Their requirements on administrators are rising in terms of access to data and information being available on clear and transparent fees. Various managers and investors want them to exhibit the value they are adding to structures. Another expert mentioned that “For private equity investment, Limited Partner (LP) sentiment is reflective of the growing demand within the industry of a greater need for transparency and enhanced reporting. Fundamentally, increased disclosure regarding fees and greater visibility and understanding of the value remains a focus for LPs.”
The need for more transparency comes as no surprise in the area and “The regulator is keen to reinforce the notion that there is no place for weak corporate governance. Investors want the assurance of a robust risk management framework to mitigate operational risks, a feature of which is inherent in the DFSA’s regulation. We have seen it become increasingly likely that fund managers and family offices will seek to secure the services of sophisticated, independent fund administrators. Their ability to provide the additional comfort investors seek from having an independent, comprehensive and robust corporate governance and control framework is a fundamental requirement when managing funds and investor commitments.” We, at IMC, can guide and support you by playing the role of an outsourced family office or may be a multi-family office. You can also get in touch with us if you need professional assistance on Dubai company incorporation or family office investment in the UAE.
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