- Newsletter, Saudi Arabia
- June 17, 2019
Are you thinking of doing business in Saudi Arabia? Do you know that the Saudi Arabia General Investment Authority (SAGIA) has forecasted a 70 percent rise in new foreign investor licences in first quarter of 2019 as compared to Q1 of 2018? In fact Saudi Arabia, which is the biggest economy in the Gulf region, has worked towards becoming a regional hub for global investments and invite more businesses and companies to the private sector, as per its Vision 2030 objective of making its economy more diversified.
A Saudi business solutions provider recently issued a report on international investments in Saudi Arabia and listed all the legal entities that foreign investors could operate as in the Kingdom. So if you are planning company registration in Saudi Arabia or foreign company registration in Saudi Arabia, do consider one of the following.
- A limited liability company (LLC), which is a private equity established between two or more partners (there can be a maximum of 50 partners) or shareholders who are responsible for the company’s debts according to their contributed capital.
- A single member limited liability company (SMLLC) is typically an LLC formed only by one individual. This individual holds complete authority and can accept the position of the company’s director, general shareholders’ assembly and board of directors. The owner is responsible according to the amount of capital he/she has put into the company.
- Foreign companies are permitted to set up their branch office in Saudi Arabia where the parent company assumes full accountability of the office’s actions.
- A joint stock company (JSC) is a business where the capital is divided into negotiable shares. It would have a name that indicates its goal or purpose and a JSC is usually run by a board of directors. As per its memorandum of association, there could be a minimum of three members and a maximum of eleven.
The Saudi Arabia General Investment Authority (SAGIA) has forecasted a 70 percent rise in new foreign investor licences in quarter 1 of 2019 as compared to Q1 of last year. The highest investments per sector were seen in manufacturing industry, construction, IT, and professional science and technology fields.
The National Transformation Programme, which is an action plan launched by the Saudi government to reduce the Kingdom’s economic reliance on oil. This five-year plan basically has three key objectives: reforms in public sector and fiscal reforms, economic expansion and diversification and improving the business environment, and other social reforms.
The report highlights some of the significant licences that are available for global companies who are thinking of investing here.
- Service licences are obtainable for a variety of services, such as management consulting, tourism, training, information technology, insurance and reinsurance, health, education, logistic services, advertising and media, organizing exhibitions, financial services, catering and food services, aviation and handling services.
Service licences are categorised into two groups: specialized activities requiring an approval by some government agencies for services like health, insurance, transportation, and some non-specialized activities, in which no such approval is needed.
- Industrial licences are obtainable for heavy and light industries and also for transformative industries.
- Licences for a scientific or technical office are intended for global companies who have a collaboration with a Saudi agent for distributing their products in the country and they want to open an office to offer scientific or technical services to various agents, distributors and also to customers of those products.
- A temporary certificate to present a proposal to government projects could be requested by companies that want to bid for government projects by duly filling and submitting an application to SAGIA.
- A real-estate licence is meant for global companies who are dealing in property and specifically where the total project cost is not less than SAR 30 million with regards to land and construction and also the investment done outside the borders of the cities of Mecca and Medina.
- A trading licence is offered to all foreign entities who want to undertake wholesale or retail trade inside Saudi Arabia.
- A licence for public transport is needed by foreign companies who want to offer public land transport services like buses or metros operating within the kingdom.
- A consulting licence specifically for engineering offices is meant for international companies who wish to offer engineering consultation services operating in the country with a 100 percent possession.
- An entrepreneur licence is offered to those who want to set up pilot projects that are accredited by either Saudi universities or some business incubators.
- An immediate licence is meant for international companies who wish to open their headquarters in Saudi Arabia for engaging in investment activities with immediate effect and submit documents meeting the requisite standards for the activity.
- A licence for agents who handle recruitment and hiring of domestic labour services especially is meant for global companies who are dealing in domestic labour placement services and also short-term employment agency activities specifically for home services in the country.
- Licencing of the university colleges and also constant universities is available to international companies who want to conduct some such educational activities in the nation.
So if you are considering VAT registration in Saudi Arabia and need professional help, do get in touch with us at IMC Group
- Article, Bahrain
- June 14, 2019
Bahrain is a small island country located in the Middle East. It shares borders with Qatar, Saudi Arabia, Iran and the Persian Gulf. The Kingdom of Bahrain has the fastest growing economy in the Arab world. The economy of the country is majorly driven by the banking, tourism and oil and gas sector.
In order to further boost its economy, the government of Bahrain is taking measures like allowing foreign investors to have 100% ownership in a wide array of business sectors, liberalization of economic laws, tightening anti-money laundering laws, easing out visa and immigration policies and much more. All of these measures work towards bringing foreign investment into the country and to enhance business development within the nation.
Apart from this, Bahrain provides a rewarding investment environment for investors from all over the world. In fact, as per the 2019 report of the World Bank on ‘doing business in Bahrain’, the country is one of the best places for investment in the region. Moreover, it offers a safe and cosmopolitan business-friendly atmosphere to investors aiming for foreign investments in Bahrain.
Reasons to Invest in Bahrain
Bahrain is an emerging country in the Middle East and investing or doing business in Bahrain has the following advantages:
- Bahrain lies in the heart of the GCC which provides the advantage of easy access via air, land and sea from the Middle East and North Africa.
- The country boasts of its robust infrastructure and well-equipped amenities
- Bahrain holds a 40-year track record as the Gulf’s leading financial centre
- The scope of business growth is vast
- The legal system in the country is simple and lucid
- The corporate policies in Bahrain are business-friendly and liberal
- The country favours exports due to its lower customs duty
- Bahrain offers advanced banking facilities
- The country features a modern global economy
- The cost of living in Bahrain is quite low as compared to other neighbouring countries
- The local workforce in the county is educated, skilled and efficient
- The tourism and entertainment industry in the county are booming year on year
- It has one of the highest qualities of life in the Middle East.
Major Considerations to Make Before Starting a Business in Bahrain
If you have decided on doing business in Bahrain, here are a few things that you should consider.
- You must have a good knowledge of the region. It is vital to understand the business sectors that you intend to operate in, study the market conditions, competition, etc.
- There is a requirement of a local partner who holds the majority interest (share capital) and can, therefore, control the business. It can be a company or an individual.
- Post your foreign company registration in Bahrain, you need to convey to the Ministry of Commerce that you have at least the minimum required capital to invest.
Types of Legal Entities That Can Be Incorporated in Bahrain
When thinking of business set up in Bahrain, you may choose from among the following five legal entities:
1.Limited Liability Company
A Limited Liability Company can have a maximum of 50 shareholders (having at least 1 local resident shareholder) and they are liable only to the extent of the share capital they have invested in the company.
2.Branch Office
In order to incorporate a Branch Office, a foreign company has to get approval from the Ministry of Commerce and Agriculture. It has to appoint a local sponsor.
3.Partnership
It has 3 types:
- Partnership Limited by Shares
Partnership Limited by Shares comprises of two types of partners namely general partners and limited partners. It is formed by at least 1 general partner and 10 limited partners. The general partners are fully liable for the debts and actions of the company while the liability of limited partners is restricted to the amount of their capital investment.
- Limited Partnership
Limited Partnership is formed by at least 1 general partner who is liable for the partnership obligations and 1 limited partner who bears the limited liability and does not participate in the business management.
- General Partnership
In the case of General Partnership, all the shareholders are jointly and severally liable for the company’s debts and obligations.
4.Sole Proprietorship
A Sole Proprietorship is owned by a single person who bears unlimited liability for the business.
5.Bahrain Shareholding Company
A Bahrain Shareholding Company is required if the shareholders intend to engage in banking or insurance business. It has 2 types:
- Public Shareholding Company
A Public Shareholding Company (also called as a Joint Stock Company) is formed by at least two shareholders who are only liable to the extent of their capital investment. The shares of this company can be subscribed by Bahrain GCC and non-GCC citizens.
- Closed Shareholding Company
A Closed Shareholding Company is formed by at least two shareholders. The shares of this company are not offered to the general public for subscription.
Procedure to Follow for Starting a Small Business in Bahrain
1.Select a Legal Structure
The very first step is to carefully choose the legal structure of your business as it has a direct impact on how your business will be managed, how ownership is held, personal liability of the owners, etc.
2.Choose a Company Name
The next step is to select the company name based on the guidelines issued by the Ministry of Industry and Commerce (MOIC). You can propose up to 4 names at a time.
3.Commercial Registration of the Company
On verification of the application form and payment of the necessary fees, you can go for commercial registration of the company. For companies, commercial registration papers are issued at the Bahrain Investment Centre and for individual establishments at the Ministry of Industry and Commerce Commercial Registration Directorate.
4.Licensing and Approval
In case, if you do not get the commercial registration papers right away, you will have to apply for a license or get approval from more than one Governmental authority.
5.Other Requirements
Once your company is registered, you will have to comply with other requirements such as opening a local bank account, leasing an office space, hiring local employees, etc.
In order to ease the process of Bahrain company formation, you may seek help from a professional business advisor who can guide you through the company registration complexities and help you achieve your business goals. IMC Group can help you in this regard and make the entire process of doing business in Bahrain a hassle-free and convenient task.
- Article, U.A.E
- June 11, 2019
SME companies in Dubai or small and mid-size businesses have played a key role in encouraging the private sector and expanded the economic system. But now the question is if the year 2020 would enhance the financial impact of SME businesses located in Dubai and create new business opportunities for SMEs operating in Dubai?
The UAE economy is nurtured by SME firms in Dubai in a big way. As per current data, small and mid-size enterprises represent almost 96 percent of the total number of registered companies in Arab.
Next year, or 2020, is expected to bring a huge transition in the country. Some studies say that in 2020, there will be huge foreign investments by multinationals and many big corporate giants would enter the region. Due to this, the SME firms are anxious that their commercial characteristics would be sidelined. They also think their business opportunities would be restricted.
But UAE has done its ground work. After 2009’s economic downturn, UAE has prepared itself to deal with any global financial crisis such as fluctuations in economy, reduction of oil prices, etc. This is because of segregated business communities, business modules being based on knowledge, and investments in innovation-focused sectors which are majorly controlled by SME firms in Dubai and UAE.
There are over 4 lakh SMEs in Dubai which contribute around 60 percent of the GDP of UAE, and this figure has been rising with each passing year. In only Dubai, there are over 95 percent SME firms which add to the robustness of the economy.
UAE believes that the SME businesses in Dubai and in other parts of the region are its backbone. Thus, with the upcoming commercial plans for 2020, UAE has made it compulsory to integrate the SME firms through several programs. It is planning to adapt an approach where SME firms in Dubai and UAE get more flexibility and get equal opportunities to participate.
According to the latest reports, no advanced payment guarantees, no tender bonds and other similar leverages have been appointed for SME firms who are looking for collaborating on various government platforms. The SME sector is all set to almost 245,000 new jobs in the coming years particularly in tourism, event and hospitality sectors, which are set to grow by Dh143 billion. Besides, even IT start-up firms and consultancies will benefit hugely in 2020.
Do you want to take an approximation of how your company would fare in the year 2020? Or are you thinking if this is the right time for company formation in Dubai? Do get in touch with us and our professionals would guide you for business setup in Dubai free zone.
We at IMC, have the best experts of the industry who can help you with any assistance you require regarding company formation in Dubai or UAE. Just get in touch with us and we would offer you comprehensive solutions for business setup in Dubai free zone.
- Article, India
- June 3, 2019
India is a growing economy which offers unprecedented business opportunities. Indian markets are considered as one of the key markets worldwide and have significant potential offering prospects of high profitability and favourable regulatory regime for investors. In fact, every state in the country has a unique economic profile that offers numerous opportunities to foreign investors looking to set up or expand their business in India.
Every year, the National Council for Applied Economic Research (NCAER) publishes its State Investment Potential Index (N-SIPI) to demonstrate the investment climate of India’s states. The NCAER publishes the report by assessing the competitiveness of Indian states on six key pillars – infrastructure, labour, land, economic climate, political stability and governance, and business perceptions. It is a pioneering effort to provide metrics of economic governance, competitiveness and growth opportunities at the state and regional levels. The aim of this report is to provide the domestic as well as foreign investors an overview of the Indian market.
As per N-SIPI 2018, Delhi is the most attractive state for investors, followed by Tamil Nadu, Gujarat, Haryana and Maharashtra. In this article, we will walk you through the country’s top five investment destinations and their economic features.
Delhi
New Delhi is the national as well as the administrative capital of India. Not only this, but it is also one of the largest cities in the world in terms of population. Delhi has established a new benchmark in attracting FDI (foreign direct investment) equity inflows into the country. The per capita income of Delhi is 2.5 times higher than the national average.
Delhi is the preferred choice of investors owing to reasons like investor-friendly policies of the government, great infrastructure, competent workforce and large consumer market. In fact, Delhi outperforms other states in India in terms of infrastructure and economic environment.
The city is a hub for all types of commercial and business activities. If you are looking for company formation in Delhi, the city offers great investment opportunities in the industrial sectors such as information technology, tourism, manufacturing and real estate.
Tamil Nadu
Tamil Nadu boasts of the second largest economy in terms of GDP among all the states in India. It is also the most urbanized state in India. Being surrounded by sea from three sides (i.e. Bay of Bengal, Indian Ocean and the Arabian Sea), Tamil Nadu is strategically located and serves as an important gateway to Southeast Asia.
Apart from being an educational hub, there are many industries in Tamil Nadu which are majorly engaged in healthcare, IT, automotive, textile and financial services. The favourable industrial climate, competitive manufacturing industries in the region and the largest number of special economic zones serve as a major advantage to the businesses eyeing to set up their base in Tamil Nadu.
Cities like Chennai, Coimbatore, Madurai, Tiruchirappalli, Salem and Tiruppur provide huge advantages of population and larger customer base.
Gujarat
Gujarat is a leading industrial state and boasts of the highest GDP growth among all the states in India. Due to its strategic location, it provides a gateway to the land-locked states in north India. In addition, Gujarat is well situated to provide strategic trade routes to the African continent and the Persian Gulf. Moreover, it is consistently ranked on top in the ‘ease of doing business surveys’.
Gujarat offers great investment opportunities in the industrial sectors such as petrochemicals and allied products, chemical and allied products, port and shipbuilding, conventional and renewable energy, pharmaceuticals, jewellery, gems, diamonds, textiles, food and agribusiness, engineering and automotive manufacturing, etc.
Cities like Ahmedabad, Surat, Vadodara and Rajkot provide huge advantages of population and larger customer base. There are well-renowned industries in Gujarat such as Adani group, Aditya Birla Group, Reliance, Mahindra & Mahindra and Godrej.
Haryana
Haryana is one of India’s largest automobile hubs and a preferred destination for auto majors and auto-component manufacturers. The state has also emerged as a base for the knowledge industry, including Information Technology and biotechnology. It is a top-ranked state in terms of business perceptions and ranks among other top states in the country in ease of doing business.
Haryana contributed around 3.32% to India’s GDP. The state offers a wide range of fiscal and policy incentives to businesses. Its key geographical location and progressive business environment attract local as well as global investors.
Haryana offers great investment opportunities in the industrial sectors such as automotive, IT, textiles, oil refining, agro-based industry, biotechnology and petrochemicals.
Maharashtra
Maharashtra is known as the most industrialized and wealthiest states in India. Mumbai, the capital city of Maharashtra is popularly known as the financial capital of India as it is home to some of the major banks and financial institutions such as the Reserve Bank of India, Bombay Stock Exchange, National Stock Exchange, General Insurance Companies and Life Insurance Companies.
If you are looking for company formation in Mumbai, you can grab the many advantages that the city offers such as its strategic location on the western coast of India; a gateway for imports into western India; conducive business environment; competitive banking, financial, and service industries; and largest entertainment industries in the world.
Maharashtra offers great investment opportunities in the industrial sectors such as automobiles and auto components, petroleum and allied products, chemicals, information technology, telecom, engineering, textiles, electrical and non-electrical machinery, etc.
Cities like Mumbai, Pune, Nagpur, Nasik and Aurangabad provide huge advantages of population and larger customer base.
If you are looking for company formation in India, you can choose any of the above-mentioned destinations. For company formation in India, you may seek help from a professional company like IMC Group.
- Article, India
- May 31, 2019
US-China trade war has been a major concern for many companies and economies across the globe. The tussle between the US and China gives nations like India a chance to enter into new foreign markets. Many companies from the US are looking to relocate their companies from China to India. In addition, the export from Indian companies can increase drastically amid the trade war.
Recently in a media interview, US-India Strategic and Partnership Forum (USISPF) – a US-based advocacy group, said that the US has been looking at India as an alternative to set up companies that are moving out of China. This will certainly give a big boost to India’s manufacturing sector.
Many top brands like Samsung, Adidas, Nokia, etc. have already shifted their manufacturing base from China even before the trade war began. This was done to reduce their costs and diversify their supply chain. If this manufacturing base shifting continues to happen, India will prove to be a great alternative to China.
Why India Appeals as a Manufacturing Hub?
The Indian government took several initiatives to bring structural reforms and intellectual property rights, which has attracted companies from across the globe to India and start their manufacturing unit.
In the recent years, many big companies have set up their manufacturing units in India. One of them is Samsung electronics, it has set up the world’s biggest mobile phone manufacturing plant in India. Another example is the iPhone which has started assembling its phones from India.
Since many companies are eyeing at India to set up their manufacturing unit, it is important to learn what makes India so appealing.
What Makes India Appealing?
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- Lower Labour Cost
Many global giants and start-ups are looking for foreign company registration in India because it offers many benefits. The primary benefit is the low labour costs which makes manufacturing affordable. India’s labour cost is lower than China and the majority of the Southeast Asian countries. Also, there is a large pool of engineers that offer world-class expertise with wages less than the Chinese labour force.
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- Huge Customer Base
Furthermore, what makes India highly attractive is the large population which provides the manufacturers with a good domestic market for their products. The 1.3 billion population of India has the market for every product that various companies offer. Therefore in terms of consumption, India’s population is higher than any other Asian country other than China.
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- Easy Access to Natural Resources
Another reason why there is an increase in setting up of manufacturing base and company formation in India is the access to natural resources. When the prices of raw materials or natural resources are compared with any other country, India is the cheapest. India has a vast reserve of iron ore, aluminium, etc. which proves to be a good alternative to China when it comes to setting up of manufacturing units in auto or apparel sector.
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- Favourable Government Policies
Government policies have played a significant role in attracting businesses to set up their manufacturing units in India. India’s manufacturing sector got major strength from the “Make in India” program. This program facilitates investment, protect intellectual property, build manufacturing infrastructure, enhance skill development and foster innovation. Furthermore, many bold moves like the implementation of goods and services tax, the revival of the power sector, IBC code, etc. have addressed the concern areas of the economy.
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- Free Trade Agreements
India has many free trade agreements (FTAs) inside and outside the Asian region. Also being a signatory of ASEAN, India provides the companies an access to the world’s largest FTAs. This gives the companies an opportunity to sell their products not only in India but to the outside regions as well.
Setting Up Your Business in India
Before setting up your business in India, you must understand the wide geographical area of the country. On the basis of need of the business, the manufacturing unit must be set up accordingly. The infrastructure facilities vary from state to state. Also, many states offer various incentive facilities to the business for setting up a manufacturing unit.
Like for example, states like Gujarat, Andhra Pradesh, Tamil Nadu, West Bengal and Maharashtra have their own industrial policy that emphasises on developing the manufacturing sector. Gujarat offers various incentives and facilities for setting up production units in jewellery, chemical, textile and pharmaceutical sector. For setting up business units in automotive and auto-component manufacturing, Maharashtra is the most popular place. For electronics assembly and manufacturing, Uttar Pradesh and Tamil Nadu are the popular states.
Therefore, it would not be wrong to say that the wide geographical land of India offers many opportunities for setting up manufacturing units in the country.
About Us
IMC Group caters to all the requirements regarding company formation in India. We understand the various challenges that your business may face in India. We help you in identifying the right location for your business. Our wide range of services can assist you at every step of the company or manufacturing unit set up in India. Some of our services include:
- Legal Set-up Services
- Physical Set-up Services
- Ongoing Services
The aim of the IMC Group is to act as a one-stop solution for all your business needs in India.
- Article, U.A.E
- May 28, 2019
The UAE has come out with a new approach to construct a sustainable infrastructure to generate power using renewable energy. Traditionally, oil and gas have been the main source of fuels driving the UAE. But the UAE is changing the manner in which they use the energy mix, as per the ‘Energy Strategy 2050’, the key objective is to provide the nation with clean energy, to be specific, 7 percent of Dubai’s total power productivity by the year 2020, which is progressively rising to 75 percent by the year 2050. All the GCC nations have realised that they can’t just rely on the oil sources in the long term. They are now investing heavily in the renewable energy sector to attain the targets they have set by 2030-2040.
The UAE is the first nation that has adopted a new energy approach and is targeting a blend of renewable, nuclear and clean and is now known as one of the world’s foremost countries to come out with an effective and dependable renewable energy approach. The breakdown of this approach is as follows:
- 44 percent clean energy
- 38 percent gas
- 12 percent clean coal
- 6 percent nuclear
The ‘Energy Strategy 2050’ is in agreement with the ‘UAE Vision 2021’ when it comes to certainly constructing a sustainable environment by lessening carbon footprint, enhancing air quality and also adopting clean energy. The overall objective of this approach is to enhance the usage of clean energy from the current 25 percent to 50 percent by the year 2050, so as to lessen the carbon footprint by almost 70 percent and to enhance the energy consumption by entrepreneurs and enterprises by 40 percent. The UAE government is also investing an amount of over AED 600 billion by the year 2050 to make sure that this approach is put into practise and the established goals are met. Presently, the world’s biggest concentrated solar plant is under construction in Dubai amongst an array of other projects in the pipeline. This is going to put the UAE at the third rank in the world when it comes to creation of concentrated solar power.
The process of setting up an energy company in the UAE
There are many opportunities available in the UAE and within the GCC for innovative and ground-breaking companies to expand their business within the region. With progressive and avant-garde energy projects that are already running in the UAE, the Energy and Power industry provides beneficial investment prospects across the board; particularly for those who have interest in company formation in Dubai or setting up a business in the renewable energy space and service companies that support the industries like technology, engineering, and professional services. There is also an ever-increasing demand and ample of new opportunities in the energy production field. Here are some points to consider when you begin setting up a business within the UAE in this industry:
- Decide and set up the legal form of the new business
- Register your company or trading name
- Find out the best office lease options and get a contract done
- Fill the application for a trade licence and get requisite approvals from the concerned departments
- Get a Department of Economic Development (DED) Trade Licence
- Get registration of your new business with the Labour and Immigration Departments
- Open your company’s bank account
- Recruit and apply for your employees’ visas
Note:
People interested in working within the renewable energy industry as a Solar or PhotoVoltaic Consultant or Contractor have to register with Dubai Electric and Water Authority (DEWA). Then, they need to attend a five-day training course, which covers competence building and safety awareness. For more information on this, please visit: www.dewa.gov.ae
Locations to set up your company in the Energy Sector in the UAE
If you are planning for business setup in Dubai free zone, you can consider one of the following free zones:
Masdar City Abu Dhabi:
Masdar City is located very close to Abu Dhabi International Airport and is a thriving clean-technology business hub. If you set up your business in this free zone, you would get an array of advantages such as 100 percent foreign ownership along with exemption from corporate taxes.
Dubai Multi Commodities Centre (DMCC):
This is a government entity, which was founded in the year 2002 to augment commodity trade flows within Dubai. It is a dedicated global hub for over 14,100 enterprises ranging from various industries and sectors. There are many benefits that DMCC extends to companies who are setting up their businesses in the UAE or are thinking of DMCC company formation.
Dubai Silicon Oasis (DSO):
Dubai Silicon Oasis (DSO) was established in 2005 and is a technology park with an integrated community. It’s a 100 percent government-owned free zone facilitating and promoting new technology-based industries. Various incentives and advantages are offered to companies that function within this free zone.
Mainland:
Mainland licenses get varied benefits to companies such as the flexibility to do business and be located anywhere in the UAE, an unlimited number of visas along with an exemption from business and/or personal taxes, besides many more plus points.
A company planning to establish a mainland licence in the UAE would have various options for formation such as: Limited Liability Company (LLC), Branch Office and Commercial Agency. You have to consider some factors affecting the cost of a mainland license such as the nature of the activity and which licence is required – industrial, commercial or service-oriented and what would be the legal form of the company.
The procedure to set up a renewable energy company within the UAE is no doubt quite complex, and hence, it is recommended to seek professional advice for the same. We at IMC, have experienced professionals who can guide you with all the procedure so that you are all set to function legally within a short span of time.
- Article, Oman
- May 21, 2019
Taking a next step from the preliminary announcement about the health insurance for employees’ directive in the year 2018, now a new declaration or resolution has been published emphasizing the scheme that carries out the obligatory employee health coverage in the Sultanate of Oman. According to this, all the private sector employers have to necessarily as per the law provide medical coverage to all their employees.
The Unified Health Insurance Policy (UHIP) should cover the required and obligatory minimum benefits as per the provisions mentioned in Resolution No. 34 of 2019 for ‘The Issue of Unified Healthcare Insurance Policy Form’; which describes the basic advantages and optional advantages in detail. This resolution was published on 24th March 2019 by the Capital Markets Authority (CMA) with immediate effect. There are some specific requirements that have been established with regards to all the healthcare providers and insurers, including:
- The Health Insurance Claim Management systems of the Insurance Providers should be compatible and harmonizing with the electronic claims system.
- All the medical consultations would be free of charge in case there is a prior referral that has been arranged from a licensed physician.
- The healthcare providers should necessarily pursue prior approvals if there are requirements for any inpatient or outpatient treatments involving cost over QR 100 (excluding any emergency situations. In case of emergency situations, the treatment has to be given immediately).
- The healthcare providers should first complete the online application form to get an approval; then the insurer should respond within 30 minutes. In case, the insurer doesn’t get back within this time frame, then this would be considered as an automatic approval.
- In case of any outside the network claims or reimbursements, the insured party has to make the claim within the time frame of 120 days of treatment.
- If in case, the insurer rejects a claim, they should give a written statement of rejection and its reason within 10 days to the insured party.
Other significant information about Unified Health Insurance Policy (UHIP) is as follows:
- UHIP is all set to cover almost two million employees in the private sector besides the visitors to Oman, which includes the dependants of the employee.
- UHIP will offer minimum health coverage, which includes inpatient and outpatient treatments, costs of medicine, and emergency coverage.
- The employers are accountable to cover the cost of insurance while the employee is allowed to upgrade coverage on his or her own expense, if needed.
- The expense threshold for inpatient treatments is OMR 3,000.
- The expense threshold for outpatient treatments is OMR 500.
All the insurance providers located in the Middle East are equipped to handle the huge inflow of new policies because of the experiences and events with the UAE and Saudi Arabia when a similar directive was instigated. Thus, it is foreseen that this implementation would be streamlined and very much on track. It is imperative to review the basic coverage inclusions that are highlighted in the resolution to find out if the obligatory medical insurance has the coverage you need or not. To review the full Resolution No. 34 of 2019 for ‘The Issue of Unified Healthcare Insurance Policy Form’, you could visit https://www.cma.gov.om/
IMC group offers you with a complete package of company set up solutions. We provide you with all the legal advice and support in terms of setting up and running a business entity in UAE and Oman.
- Article
- May 20, 2019
Mostly, founders of startups are not able to pinpoint exact challenges in their startup. As per a study, almost 30% of small enterprises crash because of lack of managerial or business experience. But most of the businesses which fail are unable to identify what exactly was the gap or problem. Finding the challenge is one issue and then looking for an apt solution is another. We have collated a list of some common challenges that small enterprises and startups usually face.
1. Product Analysis
All the startups want to be perfect with their brand and be the best in the market. But there are rarely any startups who strike a balance between all the needed features in a product and the best selling price. The biggest challenge for most of the startups lies in identifying whether their brand or product is the correct fit for the specific market or not. According to statistics, 42% of startups shut down as they are unable to create a demand in the market. So how can you overcome this challenge of creating “a perfect product”?
The solution is product validation, which means analyzing the problems in the industry and doing research on why customers would trust the product you offer.
Tips for Product Validation
- Interact with your customers right from idea to product development stage and show them prototypes before the final product launch
- Conduct surveys
- Study your competitors to find any features that might be missing from their product
2. Sales & Marketing
New entrepreneurs should understand that saving money for their marketing is very important. The product should go into the market with a well-thought of strategy; otherwise there would be no sales and eventually the business could fail. According to a study, lack of a proper marketing strategy resulted in failure of almost 42% of startups which were surveyed. The ‘create it and customers will come’ is not the right approach. As a startup owner, you should have a good market strategy coupled with the right funding to enable you to market your product/service.
Tips for having the Right Marketing Strategy
- First find the target market segment
- Look for innovative yet cost-effective methods to reach your market
- Allocate proper budget for marketing and set goals accordingly
- Understand concepts like digital marketing and growth hacking for better marketing strategy
- Closely observe the marketing strategy of your competitors. Then, make yours better and allocate budgets accordingly
3. Getting the Right People Onboard
Hiring the right talent can get tricky for startups because of budgetary constraints. A new company will not be able to spend on hiring experienced talent and freshers need a lot of training. But a startup should somehow employ the right people if they want to grow. Not only experience, employees should also possess the enthusiasm to learn and then work in a challenging environment.
Tips for Finding the Best Suited Employees
- Find people who believe in your idea
- Identify people who are willing to go beyond their set roles and responsibilities
- Go on to offer a stake in your company to the best people
- Look for professionals who can fill in and support you for your shortcomings
4. Financial Challenges
There are ample financial obstacles for startups – be it from raising funds, controlling the rising expenses, saving enough to go through the next few months, etc. Without money, you cannot move a step further and a wrong financial move can cost you big.
Tips to Enable you to Face the Financial Challenges
- While doing financial planning, list the main expenses in the coming few months
- Save some money for unforeseen expenses
- Maintain correct payment cycles with your clients
- Invest in insurances to handle any unexpected disasters
- Avoid raising unnecessary funding
5. Decision-Making
Startups need business leaders who can take apt decisions. A small mistake in decision-making can cost in a big way on the growth of the company.
Tips for Better Decision-Making
- Prioritize the level of each challenge and then take action accordingly
- Learn to make decisions which result in expansion of your business
- Discover how to take calculated risks
6. Lack of Structure
Most of the new startups do not have a proper structure because they are handling too many things at one go. But when the company starts growing, you would need a proper structure thus defining accountability.
Tips to Enable Setting up a Structure for a Startup
- From the beginning, aspire to build a big organization
- Initially when a clear hierarchy isn’t defined, assign a responsible person for every department or task
- Focus on documentation right from the start
Decide clear goals and also attainable expectations
- Article, U.A.E
- May 17, 2019
Audit of financial statements reflects the accuracy of the financial position of the company. While it is mandatory for public and large companies to get their financial statements audited, the same does not apply to smaller or mid-sized companies. Although, small and medium-sized enterprises can willingly get their accounts audited for their own benefit.
Audited statements demonstrate consistency and objectivity in the financial reporting and at the same time establishes a clearer view for planning future business activities. Moreover, it saves a company from possible frauds by identifying the issues beforehand that may damage a company’s reputation. Therefore, audit services are of great importance for small as well as big companies.
Reasons why SMEs should consider audit services
- Identifies Issues
The primary purpose of the audit is to identify issues and problem areas right at the inception. When you hire audit firms in UAE, they help you identify the issues in your financial statements, if any and also help you correct them in a timely manner. This, in turn, helps the company get a competitive advantage over its competitors in the market.
- Identifies Weaknesses
Audit conducts a SWOT (Strengths, Weaknesses, Opportunities, and Threats) analysis of your business. It helps you identify a particular business process which is weak and prone to threat or damage. This, in turn, helps you improve your business processes and functions.
- Improved Accounting
When you hire audit firms in UAE, you indirectly eliminate the risk of poor accounting. They help you improvise your accounting function and assure the owners of the company that everything is in place especially when they themselves are not involved in the day-to-day functioning of the business.
- Prevents Fraud and Misappropriation
Fraud can not only harm the finances of the company but also damage its reputation. Audit helps SMEs prevent the chances of fraud and misappropriation in the company. It also builds brand value and good image of the company in front of its customers, suppliers, stakeholders, etc.
- Improves Internal Control
Audit services help SMEs improve their internal control system. By emphasising on controls like segregation of duties, increased oversight, restricted access to financial systems, third party review of financial statements and much more, the efficiency of internal controls drastically improves.
- Improves Credibility
When you hire external auditors, it demonstrates your real commitment to compliance. In other words, it is an indication of how reliable your company is towards the investors. It brings a lot of credibility in the eyes of potential investors and stakeholders.
- Business Improvements
SMEs should strongly consider hiring audit services in order to improve their business processes. Auditors possess expert knowledge and experience which helps them advise you on how to streamline your process and improve them. It also helps you make cost-savings within your supply chain.
- Business Legalities
Auditors are well qualified and aware of all the business legalities and compliances that need to be followed while running business operations. They can bring to your notice any non-compliance or breach of law and advise you on how to rectify it in a timely manner.
The above mentioned are a few benefits of conducting a financial audit for SMEs. It is advisable to get the audit done from expert professionals such as IMC Group who can help you present the correct picture of your financial statements. Moreover, IMC Group is a leading audit firm in Dubai with over 20 years of experience, dealing with different industries. Get in touch with IMC Group to transform your business entity’s future to a great extent.
- Newsletter, Singapore
- May 13, 2019
The start-up’s in Singapore can now expect more opportunities for company formation in Singapore and collaborations with global investors as Enterprise Singapore is working with the Monetary Authority of Singapore (MAS) to accelerate funding.
They are doing this through highly selected and organised deal-making sessions. The first of these kind of sessions was kicked off recently as segment of the international launch for Slingshot 2019, a global start-up pitching contest organised by Enterprise Singapore. Over 100 start-ups got a chance to network with approximately 50 investors, venture capitalists and corporate funds.
The collaboration with MAS is part of a wider strategy by Enterprise Singapore to strengthen the local start-up ecosystem by adopting a market-led approach, bringing together academia, government and the private sector to create solutions that address market needs in Singapore and the region.
The Organisation for Economic Co-operation and Development (OECD) has predicted that Asia is going to account for over half of global gross domestic product (GDP) by the year 2050.
Edwin Chow, who is the assistant CEO of Enterprise Singapore, said that Enterprise Singapore would intensify its commitments with local and overseas partners to facilitate start-ups to scale up more rapidly.
He also said that the targeted platforms that the start-up’s get for connecting with investors and customers serve as precious opportunities for them to access resources like financing, and also open avenues for co-innovation along with leading corporates.
The other steps announced actually build on the current initiatives. For example, 17 additional accredited mentor partners will be brought in to the Startup SG Founder programme to offer extra mentorship and start-up capital to the first-time businesses or entrepreneurs. This will take the total number of mentors to 45, who are expected to coach around 200 start-ups in the coming year.
The new mentors in the list include the Singapore University of Social Sciences (SUSS), talent incubator Antler, and South-east Asia’s largest medical device business, Advanced MedTech.
Enterprise Singapore is also closely functioning with the Economic Development Board to bring at least four new cities to the Global Innovation Alliance (GIA) network in 2019. The GIA is basically a network of domestic and overseas partners in all the key innovation hubs.
Besides, Enterprise Singapore has also been affiliating with different government agencies since the year 2017 to launch calls for proposals from start-ups firms to handle the challenges across urban solutions, logistics, trade and construction. There is a pipeline of 24 calls for proposals in 2019.
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