- India, Newsletter
- April 15, 2019
The Indian Union Cabinet has recently approved India’s signing of the multilateral instrument (MLI) for implementing the tax treaty procedures in the OECD/G20 base erosion profit shifting (BEPS) action plan. A ceremony for signing this deal is going to be held in Paris in June this year.
The Cabinet’s decision and further action was anticipated because of India’s active contribution in the BEPs project and in the MLI drafting.
Though India has recently done some amendments in the tax treaties that were a concern to the government, like those with Singapore, Mauritius and Cyprus, and applied domestic general anti-avoidance rules (GAAR), the MLI is still important to India as an instrument to avoid any tax treaty abuse, including any instances of artificial avoidance of the permanent establishment status. The Indian government’s confirmation of their plan to sign again goes to prove India’s viewpoint towards restraining the base erosion globally.
The OECD has developed the BEPS Action Plan to deal with the use of aggressive strategies of tax planning used by multinational firms that falsely transfer the profits to low tax jurisdictions which have limited or no economic activities. BEPS Action Plan 15 envisions MLI’s development for implementing the measures related to tax treaty under the BEPS Action Plan.
The MLI is definitely a milestone development as it strives to modify more than 3000 bilateral tax treaties. When comparing with the protocols, which directly modifies the text of the treaties, the MLI is envisioned to be applicable along with the current tax treaties, amending their application to the required extent for implementing the measures related to BEPS.
An important aspect of the MLI is that it functions on the reciprocity principle. This means that any provision under the MLI is applicable to a bilateral tax agreement that happens between any two nations or jurisdictions, only in case both the parties agree to it. To bring this reciprocity into effect, the MLI allows for reservations against specific MLI provisions (except the ones related to application of BEPS minimum standards). Typically, if any one of the parties make a reservation against any MLI provision, then it is applicable symmetrically between the reserving party and all other concerned parties.
For the MLI to be brought into force, global law related to multilateral treaties should be complied with. Generally, the first step is signature, then ratification or acceptance and approval from each involved party, as per their respective law requirements applicable in that country.
Therefore, signature is only the initial step towards stating consent to be bound by the MLI.
- Newsletter, U.A.E
- April 15, 2019
The UAE cabinet recently announced to launch something called an Electronic Family Book. This family book will be used as a document while doing all transactions in the UAE.
The decision has been approved by His Highness Sheikh Mohammed bin Rashid Al Maktoum, who is the Prime Minister of the UAE, Vice-President and Ruler of Dubai.
The decision has been announced in tandem with the UAE government’s transition to smart services trends. The Electronic Family Book is all set to cut down the queues at various customer service counters to up to 80 per cent by the year 2021.
This decision was announced on the government’s official account and it would be applicable for the UAE citizens and expats. It will also be like a reference incorporating all the required information of the citizens and residents living in the country.
The Electronic Family Book would be linked directly to the Emirates ID, and is set to be brought into effect from July 1, 2019.
Various workshops with relevant entities are going to be planned before launching the Electronic Family Book.
Once the Electronic Family Book is implemented, it would store the data in the smart chip of the ID card, which would make the transactions much easier, while ensuring better security and reducing the opportunity of any fraud to a large extent.
- Newsletter, U.A.E
- April 15, 2019
Regulatory Alert on Healthcare
Federal Law No.2 of 2019 – How to use IT and Telecommunications in the Healthcare Sector
The UAE Government Promulgate Federal Law No.2 of 2019 regarding how to use Information Technology and Telecommunications in the Healthcare Sector (“the Law”), now for the first time ever controls the healthcare data that is processed, measured, transmitted and also stored electronically
This Law comprises 22 Articles that include, but are not limited to the development of a central data base system, responsibilities in terms of data privacy and usage of IT and telecom technology while processing, transmitting or storing data. In addition, there are obligations on media licensing, training and also if there are violations for breach of the Law.
The Law is unique because it is the first ever federal privacy law associated to healthcare data and also for protecting any personal or sensitive data in the UAE.
Agencies such as all the healthcare providers, insurance companies, insurance intermediaries, any third-party administrators of medical claims, technology companies operating in the healthcare sector and others functioning with healthcare would have to review and then audit their existing practices and accordingly ensure that they comply with the Law.
The Law is anticipated to be gazetted in the next few weeks and would be brought into application in about three months starting from that date.
- Newsletter, Oman, Saudi Arabia, U.A.E
- April 15, 2019
United Arab Emirates (UAE)
Some major developments in the UAE include:
- Various new immigration and employment reforms that were proposed last year would now come into force in 2019. These include the representation of an updated version of the DIFC Employment Law. Effective from 3 February 2019, the new enhanced visa classifications and provisions for the investors, any exceptionally bright students and special talents has come into force and marks a welcome move to the earlier static immigration regime.
- The Ministry of Human Resources and Emiratisation has announced a new occupational classification scheme which is applicable to businesses registered in the UAE mainland jurisdiction; this reduces the list of job titles that the employers can opt for while recruiting employees.
- Effective from 20 January 2019, any international physicians, dentists and alternative medicine practitioners (termed as the “Healthcare Professionals” collectively) are allowed to work for a maximum of three clinics in the Dubai Healthcare City free zone operating under a special license and visa. As per these new amendments, the Healthcare Professionals are allowed to apply for the licence overseas depending on when they procure a suitable placement in a medical facility in the DHCC; then the DHCC would act as the “sponsor” for these Healthcare Professionals’ visa. The Healthcare Professionals would also be allowed to work for almost two years and sponsor any dependants living with them in the UAE as per this new visa arrangement.
- The General Directorate of Residency and Foreigners’ Affairs (the “GDRFA”) in Abu Dhabi now requires the foreign nationals in Abu Dhabi to first get their Emirates ID card made before they get their employment residence permit (the “ERP”) attached in their passport. The applicants who are renewing their ERP in Abu Dhabi will be still able to get their ERP stamp done before they get their Emirates ID card.
Oman
Some major developments in Oman include:
- The Ministry of Manpower (the “MoM”) has published a new decree that prohibits the employment of non-Omani residents into particular and designated roles in private higher education and training institutions. The prohibition is currently restricted to the director of admissions and registration department, director of quality assurance, director of student affairs, and also director of the career guidance department. The employment permits that are issued to non-Omani residents for the above-mentioned categories of employees would be applicable until expiry. Post that, no renewal permit would be granted.
- Enhanced Omanisation initiatives are probable to continue throughout this year. The six-month ban that applied to the 87 sector-specific professions (including, but not limited to, administration and human resources, accounting and finance, media, IT and engineering) and enforced in January 2018, which was extended in July 2018, is likely to be extended by another six months.
- In February, the National Centre for Employment has opened only to Omani residents and serves them as a one-stop hub for job-seekers, while also unifying employment efforts, thus acting as a means of regulating the demand and supply of employment opportunities.
- Effective from January this year, the Royal Oman Police have also relaxed some of the residency rules, especially for the children and siblings of global investors in the nation. The goal of this initiative is to enhance the inflow of foreign investments and offer social stability to the investors. According to a general immigration rule in Oman, children and siblings of expats who are aged 21 years or more and 18 years or more have to leave the country unless they obtain an employment visa to carry on residing in Oman beyond the fixed age limit; however, there is an exception in special cases under some humanitarian grounds in case the Director-General might waive this age requirement. But, under the new initiative, expat children or siblings of global investors coming into Oman would be exempted from this particular age requirement, that is, a global investor will now be able to get his children or siblings along, irrespective of their age, bringing them under his sponsorship and responsibility. This new relaxed residency program would be applicable to global investors only if they go on investing or having an investment in Oman.
Kingdom of Saudi Arabia (“KSA”)
Some major developments in the KSA include:
- In the year 2017, the Ministry of Labour and Social Development (“MLSD”) had cut down the validity of the Block Visas from two to one year. There was an exemption for domestic workers and any foreign staff at government agencies. The MLSD has again launched an initiative in January 2019 for extending the new Block Visa’s validity from one to two years and without any extra government fee. As per this new initiative by the MLSD, businesses in KSA will be allowed to cancel their current Block Visas permitting them to hire global workforce and issue new extended visas applicable for two years depending if the visa requirements are being met. This extension of Block Visa’s validity in the KSA would facilitate all the private sector businesses in terms of time and effort, cost and other administrative work.
- The MLSD has also implemented a new and instant calculation for Saudi and global employees as part of its existing Nitaqat System, which is effective from 2 February 2019.
Conclusion
Amendments to the immigration and the employment laws in the GCC countries are expected to continue in short and long-term. We would be monitoring these changes and will keep you updated with any developments.
- Newsletter, U.A.E
- April 15, 2019
With an upsurge of the expansion rates in terms of output and even new orders in the middle of reports of a bigger market demand in 2019, all the non-oil businesses operating in the UAE felt that this year had a very positive start.
Mostly, the businesses remained confident about further progress in new orders resulting in growth of business activity in this year. Though some companies said that offering price discounts had enabled them to get bigger volumes in terms of new work, the output prices went down for the fourth consecutive month along with competitive pressures and comparatively feeble cost inflation.
As per surveys, the business activity expanded at the strongest rate since August, 2018. The rate of growth has also been faster than the series average. Where the output augmented, it was associated to higher number of new orders and also because of marketing and promotional activities.
The survey’s results are in tandem with IMF’s observation that non-oil development in the UAE would go up further this year and in 2020 because of fiscal stimulus and also due to fast-track arrangements for the upcoming Expo 2020 Dubai.
The global financial institution has forecasted that UAE’s non-oil sector is all set to expand faster this year as compared to the oil sector in spite of some recovery in the crude prices and new company formation in Dubai is a good idea at this point of time.
The expansion in business activity was because of promotions partially and also because of huge price discounting done by various companies. The output price index continued to be below the neutral 50-level in January, 2019, indicating lower average selling prices in the country, although the percentage of price discounts in January was lesser. Selling prices have gone down for last eight out of nine months. However, the input costs went up modestly in the month of January.
Because of higher activity requirements, most of the firms had to hire extra staff during January. With companies acting as per higher order growth and bigger output, the purchasing activity was very strong in January. But the stock of pre-production inventories went down for the consecutive second month, proving that businesses are managing their inventories in a better manner and not building up stocks in expectation of the prospective demand.
Over 68 percent of the companies expected their output to be higher within a year’s span. None of the companies that were surveyed predicted the output to be lower within a year’s time and optimism about the business in terms of future output stayed high in the month of January.
The business sentiment has been very high this year and has been strengthened as compared to that in December last year. The improvements in demand seen lately are expected to further go up, as all the marketing campaigns are forecasted to get positive results in 2019.
Another research shows that the investors in the UAE could be vulnerable to over-estimating the potential for the growth of investments in the near future. When the survey respondents were asked to guess their expected investment return in 2019, almost 24 percent people expected returns over 10 percent and just seven percent of the population expected returns to below two percent or in negative. Thus, this year seems to be a perfect time for business set up in Dubai free zone and if you have that as an agenda, but do not know how to go about it, please get in touch with us, and we would be happy to assist you.
- Article, India
- April 12, 2019
Before joining a start-up, you must carefully analyze the opportunity. It can turn out to be a gamble if you are not certain about the future of the enterprise. However, if the start-up takes off well, it can take your career to new heights. In this article, we will look at the advantages and disadvantages of joining a start-up in India.
Advantages of Joining a Start-up
- If you are among the initial employees of a start-up, certainly you would enjoy higher rewards. A start-up who plans to bring an IPO after its success can offer a good amount of equity to you which can prove to be a huge wealth generator in the long run.
- Start-ups offer a tremendous learning opportunity to You can learn the functioning of the business closely and understand how it works. Along with your specialized field, you get to learn a lot of things related to the other departments of the business. This helps in enriching your experience and enhancing your personal growth.
- Start-ups offer an environment where it is easy and fun to work. There are no dress codes, you can indulge in recreational activities and do other interesting things. This keeps the work environment calm and working seems a fun job.
- The vibe of working in a start-up can fill you with excitement. Since you become a part of a rapidly growing start-up you always feel involved. Here you won’t even have the regret of working for long or extra hours.
- Start-ups give freedom to the people who can bring creativity and innovation to the table. When your talent is appreciated, you are always motivated and have a sense of freedom to work. Since you have an environment where freedom is given and no one is bossing you, you will tend to perform better.
- While working in a start-up, you can manage a better work-life This helps in keeping your mind fresh and you are dedicated to your work. Long term success of the individual also depends on his mental status.
The above mentioned are a few of the benefits of joining a start-up. Now let us have a look at the disadvantages of joining a start-up.
Disadvantages of Joining a Start-up
- The ratio of start-ups failing is quite high in comparison to firms that survive. The reason for failure can be a shortage of funds, business not taking off or a dispute between the founders of the business. Therefore, it is important to analyse the situation well before you join the business.
- In the start-ups, there is no role that is well defined. You can survive in a start-up only if you are flexible with your job profile. To put it another way, your degree would not matter because you would have to do the work of other profiles too.
- In the start-up, you cannot hide behind any senior or a team like in an MNC. In start-ups, you have to be on toes right from the beginning and you will be working in a more transparent environment where you cannot hide.
- Start-ups work in an environment where there is lack of resources. Before joining a start-up beware of the fact that there would be strict cash flows and other things of the business will take a back seat just to capture a larger market share.
- Start-ups are mostly struggling to capture the market share. In order to do so, they may ask you to work for long hours, stay at the workplace and work even on holidays.
The above mentioned are a few of the disadvantages of joining a start-up. Therefore, you must evaluate the advantages and disadvantages properly before joining a start-ups business.
IMC Group is always at the assistance of start-ups in India. All you have to do is drop us an e-mail to know our quotations.
- Article, Singapore
- April 8, 2019
Company secretary services in Singapore are essential for every business to function efficiently. Every company in Singapore must appoint a company secretary as per Company Law of Singapore. The appointment must be made within six months of registration. Some companies prefer to outsource the company secretarial service while some prefer to hire an in-house professional. In this article, we will highlight the importance of outsourcing professional company secretarial services.
Why Do Companies Require Company Secretary Services in Singapore?
Company secretary services helps a company in adhering to the rules and regulations of ACRA and avoiding any non-compliance. By outsourcing the services to a good agency, the company saves itself from the stress and burden of looking into the legal matters. The main advantage of outsourcing qualified company secretary services in Singapore is to foreign companies. Outsourcing the services will be cost-effective and they can also assist in the company formation in Singapore. So this way, a foreign company can get multiple benefits and assistance in various matters of the company.
Who Can Be a Company Secretary in Singapore?
An individual can be a company secretary in Singapore if he fulfils the following requirements:
- He must be an individual
- He must be above 18 years of age
- He must be a Singapore resident – Singapore citizen, Singapore PR or and EP holder
- The company secretary must have professional qualification and experience to take responsibility for the company’s work
Few Things to Note:
- Debarment order against an individual restricts him to act as a company secretary of a company.
- The post of company secretary cannot be left vacant for a period of more than six months at any point in
- The sole director of the Company can not act as a company secretary.
Duties of a Company Secretary
A company secretary is required to fulfil the following duties and roles.
- He is responsible for updating and maintaining the statutory registers of the company.
- The company secretary must ensure proper usage of the company seal.
- The company secretary ensures that the company functions as per its constitution.
- He ensures that the company maintains its accounts as per the laid rules and regulations. He is also responsible for filing the returns of the company with ACRA.
- He makes sure that every document of the company carries the name of the company along with the UEN
- The company secretary prepares the minutes of the company and preserves them as per the law.
- The company secretary has the responsibility to file the various documents to the regulating authorities in a time-bound
- The company secretary ensures that the company, its officers, directors and staff are insured.
- Various event based compliances like a change in the company’s registered office, an amendment to the company constitution, change in the director of the company, change in share capital, change in the name of company, charge creation, change in share capital, etc. must be responded by the company secretary.
There are various other duties of a company secretary that he is expected to perform while serving for the company.
Let us now have a look at the qualifications of Singapore Company Secretary.
Qualifications of Singapore Company Secretary under Singapore Companies Act, Section 171 (1AA)
A company secretary must be:
- A qualified person under the Legal Profession Act (Cap. 161)
- A member of the Institute of Company Accountants, Singapore
- A member of the Association of International Accountants (Singapore Branch)
- A member of the Institute of Certified Public Accountants of Singapore
- A public accountant registered under the Accountants Act (Cap. 2)
- A member of the Singapore Association of the Institute of Chartered Secretaries and Administrators
- Before being appointed as the secretary of a public company, he must have worked as a secretary of a company for at least three of the five years.
The above article will help you know everything about company secretary services in Singapore. If you are looking for a company secretary for your company, you may get in touch with IMC Group. We are a dedicated and an experienced firm offering company secretary services in Singapore. To avail our services, you can call us or mail us for further information.
- Article, U.A.E
- April 5, 2019
Dubai has secured its position among top business hubs in the world. This is because of the government’s constant efforts and various policies adopted for the growth of different types of businesses in Dubai, whether big or small.
Owing to this, many people wish to open a small business in Dubai. In fact, lately, many small businesses are continuously opening and flourishing in the city.
One of the promising ventures for many entrepreneurs is opening a coffee shop in Dubai. It is a good idea which is not too risky and at the same time gives you an excellent opportunity to capitalise on the flourishing food and beverage industry. Moreover, the food and beverage industry in Dubai is continuously rising.
Given the competitive environment in the coffee business, it is very easy to set up a coffee shop in Dubai. Moreover, it is also the most profitable and cost-effective business venture. So, if you have the right knowledge and skills then you are sure to gain favourable results. Below mentioned are some tips on how to open a small business in UAE and make it beneficial for you.
Benefits of setting up a coffee shop in Dubai
One of the biggest advantages of opening a coffee shop in Dubai is the cost factor. It is the most cost-effective business idea among all the food and beverage businesses in Dubai. Unlike opening a restaurant in Dubai, The cost of setting up a coffee shop is very less and you need a very small space for setting it up. You also do not require much investment for the functioning of the same. For opening a coffee shop, you are not required to invest much which makes it easier for you to start your business. Moreover, the time taken for setting up the infrastructure is also very short.
Steps to follow for opening a coffee shop in Dubai
Develop and Document Your Business Plan
- Start-up business plan describing how you are going to set up your coffee shop
- Operational business plan with details on how you are going to operate your coffee shop
- Contingency business plan detailing how your business will respond effectively under different exigencies and adverse unforeseen circumstances
Select the right space
Decide on the Right Layout
Outline a marketing plan
UAE Economic Substance Regulations: Compliance & Filing Guidance
Get the necessary license
Normally, you need to apply for general business permissions as well as specific Food & Beverages (F&B) service regulations to set up a coffee shop in Dubai and require the following licenses
- Business Trade Licenses specific to Food and Trade License issued by the Department of Economic Development including a license from the Department of Tourism and Commercial Marketing. License cost depends on the size and type of business and normally costs SAR 8000 and more.
- Food licenses for safety reasons and authorization from the Food Control Department of Dubai Municipality. There may be other Business Trade Licenses for a mobile type like a coffee van and in such case, you would also need driving licenses for you and your employees.
Select Your Equipment
Also, you will need equipment to set up a coffee shop in Dubai such as Coffee and espresso makers, coffee grinders, coffee, and tea brewers, ice makers, hot water dispenser, high-speed oven, decanters, and various coffee shop accessories e.g. cups, spoons, pitchers, syrup pumps, timers, creamers, water treatment equipment, blenders, juicers, refrigerators, sandwich preparation tables, display racks, cleaning and washing equipment like dishwashers and many others.
Fulfill all compliances and requirements
Mentioned above are a few things to keep in mind for a successful set up of a coffee shop in Dubai. Apart from this, you should also monitor your cash flows, hire trained employees and do good market research before starting out. If you need professional help for setting up a coffee shop in Dubai UAE, you may get in touch with IMC Group.
Conclusion
- Newsletter, U.A.E
- April 3, 2019
Home-renting company Airbnb dives deeper into the hotel-booking business by investing in Indian hotel reservation start-up OYO’s series E funding round. Though Airbnb did not disclose the amount of the investment made, sources in the know said that the investment ranges between $100 to $200 million. As part of this deal, OYO is likely to list its properties on Airbnb platform thereby expanding its international reach and simultaneously strengthening Airbnb’s presence in Asia.
This investment underscores a growing trend of companies in the hospitality and travel segment to leverage each other’s strengths.
On 8th March, Airbnb bought HotelTonight, an app for finding hotel rooms at a discount, ahead of its hotly anticipated initial public offering (IPO).
“Emerging markets like India and China are some of Airbnb’s fastest-growing, with our growth increasingly powered by tourism to and from these markets,” said Greg Greeley, president of homes, Airbnb.
On the other hand, OYO has also been aggressively expanding its global footprint by entering markets such as UAE, Philippines, the US, and China over the past one year.
“Airbnb’s strong global footprints and access to local communities will open up new opportunities for OYO Hotels & Homes,” said Maninder Gulati, global chief strategy officer at OYO Hotels & Homes.
Airbnb has about 47,000 properties listed in India. Globally it has almost 6 million listings across 81,000 cities in 191 countries. Whereas, OYO has its presence in more than 259 cities in India with over 8,700 buildings and over 1,73,000 rooms.
- Article, U.A.E
- April 2, 2019
Dubai has established itself as the number one business location in the Middle East and it offers a hotbed for business opportunities. The city offers a strong and growing economy, economic diversity, financial stability, tax-free business environment, world-class infrastructure, proficient workforce and great business opportunities.
Today more and more investors are flocking to Dubai to establish their dream business owing to its great potential and bright future prospects. Moreover, it gives access to over 2 billion population in three different regions of the world. Its easy geographical location gives access to over 140 ports in 6 different continents. In addition to this, Dubai is one city in the whole of UAE that houses a maximum number of free zones. Due to the tax-free nature of its business zones, the cost of setting up a company in Dubai is low which attracts a huge number of entrepreneurs to Dubai.
All of these factors make Dubai a great place to set-up a business. With so much ease and facilities, all you need is the best business setup consultant in Dubai and you are good to go!
What is Business Setup Consultant?
Why Do You Need Business Setup Consultants in Dubai?
Setting-up a business in Dubai is easy and smooth but it involves understanding the difference between company formation and business set up in Dubai free zone and mainland. In addition, you also need to comply with other legal and statutory formalities such as preparing legal documents, opening a corporate bank account in Dubai, obtaining the required licenses based on the activities and services you intend to offer and do other visa processes. All of these activities are time-consuming as well as tedious. However, business setup consultants in Dubai can take off the burden from your shoulders and ease the entire process of company formation in Dubai.
IMC Group -Best Business Setup Consultant in Dubai
IMC Group is a cross-border financial advisory firm offering wide range of services such as Business Setup Solutions, Corporate Advisory Services, Global Mobility, Tax Advisory Services, International Tax Structuring, Special Purpose Vehicles (SPV), and Accounting and Bookkeeping Services to its esteemed clientele in the AMEA (Asia, Middle East and Africa) region.
We help you establish your business faster, smoother and easier. Depending on your budget and requirements, we suggest you business solutions that are tailor-made especially for you keeping your unique needs in mind. We advise you with the best option to start your business. We help you with crucial decisions such as whether to form a free zone company or an onshore company, ideal structure of your company, licenses required to make your company functional, etc.
Our Business Setup Services
PRO Services
Bank Account Opening
VISA Services
Products Registration
Local Sponsors
Trademark Registration
A trademark protects your business and distinguishes your products and services from that of others. Since it is crucial for your business, you need experts to do this for you. Being one of the best business setup consultants in Dubai, we assist you with the effective and smooth trademark registration process and ensure that you receive positive results. We conduct a comprehensive trademark search, help you file the trademark application and complete all the formalities related to trademark registration.
If you are looking for best business setup consultants in Dubai, get in touch with IMC Group and we will help you set up your business in Dubai, UAE in a smoothest manner.
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