
- Newsletter
- June 21, 2018
The European Union’s General Data Protection Regulation (GDPR) was introduced as the new legislation on May 25, 2018, to protect the personal data. Ever since the legislation came into effect, the corporates in Europe have been trying to comply with its various legal requirements. Article 3(1) of the GDPR is applicable to the organizations that have a physical presence inside the EU and are engaged in the processing of personal data of EU data subjects. Article 3(2) extends this territorial scope to include non-EU based organizations that are not physically established in the EU.
Non-EU Based Organizations under the Purview of GDPR
These basically include entities that are either ‘controllers’ or ‘processors’ who are engaged in the processing of the personal data of data subjects in the EU. The processing activities should relate to the following:?
- ‘Offering of goods or services’ to individuals residing in the EU irrespective of whether the payment is required (targeting)
- Instances where the behaviour of European data subjects residing in the EU is monitored (monitoring).
GDPR application by way of targeting
There is no clear guidance as to what constitutes an ‘offering of goods or services’. Each case would have to be analysed separately on a standalone basis. Normally, for GDPR to be applicable it is required that there should be some active direction of activities towards data subjects within the EU. The mere availability of website or online advertising would not attract GDPR compliance. Additional aspects to be considered for targeting of data subjects would need to include:
- Contact details in the EU
- Availability of a website in more than one European language
- High probability of making payments in the Euro currency
- Usage of any EU domain name
- References to or from EU clients
GDPR application by way of monitoring
With respect to monitoring of behaviours of EU subjects, in order for GDPR to be applicable, the following factors should be considered:
- Gathering location data
- Allowing EU data subjects to use a social network account
- Tracking the online activities of the individuals to know more about their behaviour, personal preferences, and attitudes. A perfect example of this can be the usage of website cookies or social media plug-ins that monitor the online presence of an individual.
GDPR indirect application to non-EU businesses
The provisions of GDPR will also be applicable to non-EU businesses (processor) carrying out processing activities on behalf of an EU business (controller). The Data Processing Agreements between such controller and processor should account for the following matters such that the processor:
- Acts on the documented instructions of the controller and only then processes the personal data of the subject
- Ensures complete confidentiality by the authorized person responsible for processing the personal data
- Unless required by the GDPR provisions, does not transfer the personal data outside the EU
- Without the prior documented authorisation of the controller, does not engage another processor
- Allows for and contributes to audits, including assisting the controller in inspections carried out by him
Key Takeaways
The GDPR was purposely drafted to make sure that is applied to EU-based as well as businesses based outside of the EU that engage in handling the personal data of the EU subjects. If you have an organization outside the EU but are acting as a controller or a processor, then in all probabilities, you could be covered by the GDPR provisions. Article 3(2) has extended the scope of the territory and GDPR rules could affect your business as well. If so, you must make it as your priority to begin the implementation of a GDPR compliance roadmap.

- Newsletter
- June 21, 2018
More than 3 million tourists from all over the globe visit Oman every year. The government wants to attract far more visitors to the nation. It has recently executed a definitive strategy in this direction with the goal of bringing up the tourism and leisure sector in a major way.
Oman’s Tourism Drive
Five Integrated Tourism Complexes (ITCs) are in the pipeline for Oman and are expected to provide a solid foundation to the Sultanate’s tourism offering. This is aimed at serving as a catalyst in amplifying the number of visitors that the nation sees. So far, Oman has been lagging behind when it comes to competing with the other nations in the Middle East. The Government has decided to bring a change to this and increase the tourists’ count by five times the current level by 2040.
Increase in Hotels
According to statistics, the current number of hotels in Oman are over 352, out of which 81 were opened in the last year. To cater to an increasing number of tourists, this capacity would have to be further increased to match the tourism growth levels. By 2020, it is expected that Oman will see five million tourists every year. So the Sultanate is busy preparing for this boost by increasing their leisure accommodations, including boutique hotels and lodgings.
Diversifying for International Tourists
So far, the majority of visitors coming to Oman have been from the GCC countries, followed by the Far East and Europe. But with a clear tourism strategy in effect, the nation is bound to see more international tourists from different countries. The need of the hour is then to cater to such multi-national tourists by establishing accommodation specific to their needs. The facilities offered, the proximities to the local attractions, the locations, all such key aspects will play a decisive role for operators looking for company formation in Oman. By 2040, it is estimated that this boost in tourism would create more than half a million job opportunities and the GDP would reach to 6 to 10 per cent during the next 25 years.
Cluster Destinations
The Government intends to create and showcase a range of cluster destinations that can lure the tourists for a longer stay. Increase in the number of hotels will not serve the purpose if there are not many attractions to visit in and around Oman. So the government is looking to capitalise on the natural and cultural resources in the 14 locations across Oman. This can ensure a wider variety of experiences for the visitors and encourage longer vacations.
Training Institutes
The Government intends to collaborate with existing colleges and educational centres so it can offer training courses to those who plan to work in the tourism sector. As part of the Oman tourism strategy, every individual who wishes to become a part of the tourism industry would be subjected to formal training programs as well as on-the-job training.
Business in Oman
The estimated cost of this recently implemented strategy by the government of Oman has come close to 35 billion US dollars. This cost covers the improvement of the existing infrastructure as well as creating cluster destinations across the nation.
The current model of conducting business in Oman works through contractual agreements with the landowners. The operators can earn their licenses and operate on the land. All the compliances with regards to labour, taxation and environmental laws come under the responsibility of the landowners. Additionally, the government has also eased the attainability of commercial registration license and tourism license for operators looking to incorporate a company through such landowners.
Get in touch with us if you are looking for company registration consultants in Oman.

- Newsletter, Saudi Arabia
- June 21, 2018
Have you heard Saudi Arabia has announced many important social as well as economic reforms under their National Transformation Programme and Saudi Vision 2030? The government of Saudi Arabia has been coming up with various laws and changes in its policies to enhance foreign investment and simplify business processes and activities in the Kingdom.
However, innovation in technology field is their main focus. As per some media reports, global giants like Google and Snap are some of the companies, which are interested in these opportunities in Saudi Arabia. The Kingdom is truly trying to utilize the advantages of technology and innovation in the fields of education, power distribution and many more. Saudi Arabia also boasts of very superior and developed technological centres, namely the King Abdulaziz City for Science and Technology (‘KACST’). It also has further plans for NEOM, which is a 500 billion US dollar mega city focused on technology.
Opportunities in Saudi Arabia
Innovation and technology-related fields are being touted as major areas for investment, and the good news is that there has been a lot of development in these fields recently. For example, the Badir Program, which is a national-level program, aims at further improving the development of emerging start-ups and other IT-based enterprises in the Kingdom. Because of this program, almost 250 new organizations are able to breakthrough in the areas of e-commerce, software, communications, etc.
There are two options for people who are planning to start some new enterprises in the technology or innovation field – sole proprietorships and Limited Liability Companies (‘LLCs’).
A Saudi national can also set up a sole proprietorship or an LLC, but he should not be holding a government job and should have an ID as a Saudi national. He or she needs to complete an online registration form on the Ministry of Commerce and Investment (‘MOCI’) website. Post this process, which takes one full day, the local investor can start doing the business under the umbrella of the new business vehicle.
Currently, due to foreign investment regulations, start-up opportunities are available only to Saudi citizens and organizations. A foreign investor needs to give financial statements along with a proven track-record of doing business earlier, so that he or she could be permitted to invest in the KSA market. But in the beginning of 2018, the government has allowed business opportunities for entrepreneurs in the area of intellectual property (IP) or some invention to invest as individuals and company formation in Saudi Arabia has become easier.
Overseas investments in Saudi Arabia
For any foreign investor, as per the laws, it is important to first get a Foreign Investment Licence from the Saudi Arabian General Investment Authority (‘SAGIA’) to set up an enterprise or corporate entity. As per the business one wants to start, some other approvals from specific authorities might be needed.
However, the business or start-up that a foreign investor wants to start should not be from the listed exclusive activities allowed to Saudi Arabian (or GCC) organizations or nationals. This restriction could happen because of the businesses listed in the “Negative List” (the activities which are specified by SAGIA as exclusive to Saudis) or being otherwise identified as being restricted to Saudis in internal SAGIA policies and guidelines.
If you are an overseas investor, particularly in the technology sector, the time for investment in Saudi Arabia has been improving. The Saudi Vision 2030 is helping new start-ups and businesses in Saudi Arabia more than ever.

- Newsletter
- June 21, 2018
Cinemas are an integral part of modern-day lives, isn’t it? For most of us in various parts of the world, it is tough to think about how important the re-opening of theatres and cinemas is to the Saudi residents. This is an example of how King Salman bin Abdul Aziz, and his son, Crown Prince Mohammed Bin Salman, are taking steps for their people. Some of these reforms are being done under the Saudi Vision 2030 and the National Transformation Plan. There surely is a thrust to develop sports, recreation and other cultural events and areas of the economy, so as to provide ample options to the residents to relax and enjoy their leisure time and also spend money in the economy. One of the targets in the Vision 2030 is to raise the annual spend out of the total household spending on cultural and entertainment activities in Saudi Arabia from current 2.9% to 6% by 2030.
This year has been different as various diverse entertainment and cultural events have been organized in the Kingdom. The most popular event that got a lot of international media coverage was the Saudi Professional League football matches, in which women viewers were allowed to come and watch the series. Some other events like a World Wrestling Entertainment event and an avant-garde circus, go on to prove that Saudi Arabia is surely opening up and changing. Related to this, there are various opportunities for enterprises working in the leisure or entertainment field.
Cinemas in the Kingdom
If you look at the history, cinemas or theatres were only found in Saudi Arabia in residential complexes or in expat communities. Riyadh was the only place which had its own ‘cinema neighbourhood’, which screened movies in an informal manner as a formal cinema license were not available in the Kingdom at that time. However, the Kingdom’s film production saw a golden age starting from the year 1966 till1970s.
But during the end of the 1970s, some changes happened on the political and also social front, which disrupted the cinemas in the Kingdom. The movie industry was endorsing religious violations and customs that were going against the set rules and traditions of Saudi Arabia. This resulted in the closing of cinemas in the year 1980.
But the good news is that the cinemas are back in action in the Kingdom now. Recently, the first cinema event, in which the recent blockbuster, Black Panther was screened, has been held by US company, AMC, in Riyadh. Vox Cinemas, which is one of the major cinema operators here, launched its first multiplex in the Kingdom.
The licensing regime
The Kingdom has now opened up and permitted the cinemas to be licensed in the domestic market. The projection numbers show annual ticket sales of about USD 1 billion, which places Saudi Arabia as an attractive market for international film industry players. The forecast says that about 350 theatres or cinema halls, with 2,500 plus screens, would be opened by the year 2030.
There is a body called the General Commission for Audiovisual Media (GCAM), which was established in 2012, for organizing and functioning of the audiovisual sector here. GCAM takes care of everything right from producing, distributing and also broadcasting movies. It is a regulatory body which lays guidelines, oversees the operations of the audio and visual media content and also sets the regulations for the establishing TV and radio studios, the satellite TV provision, the process of licensing of audiovisual production companies, and the process of TV and radio competitions. This body also takes care of the approvals of the content and does age classifications for various movies to be released and also video games.
Then there is GEA (established in 2016), which is responsible to provide various entertainment channels to Saudi residents and expats. The GEA aims on licensing of various cinema or entertainment events and liaising with the concerned government departments to restructure the process of approvals; whereas GCAM is just responsible for the content of media, and cinema licenses.
GCAM issues licenses to companies who want to establish or operate cinemas. There are three-year renewable licenses available in case someone wants permanent cinemas or a one-month renewable license if it’s a temporary cinema. An applicant for this license should have the necessary commercial license and an official application form. He/she also should submit a feasibility study, with proofs and documentation showing their past experience in operating cinemas. Along with the fixed component in the fee for running a cinema, the operator needs to pay GCAM about 25% of the total value of the cinema tickets sold. They are also required to respect the intellectual property (IP) rights and comply with the Saudi laws regarding media content and age classifications for all movie screenings.
For foreign investors in the entertainment sector, this is a very good time for investment in Saudi Arabia. IMC has a team of experts and advisors who can assist you if you have questions regarding business or cinema licensing in Saudi Arabia or need help with company formation in Saudi Arabia.

- Newsletter
- June 21, 2018
The UAE’s Ministry of Finance (MoF) has just got into a pact with Saudi Arabia recently to avoid Double Taxation and also prevent any tax dodging in terms of taxes on income and capital. This agreement was signed at Jeddah at the Saudi Ministry of Finance headquarters. This step shows UAE’s eagerness to reinforce collaboration in matters related to tax and thereby further improve economic relations with its neighbour.
During the meeting, the ministers also spoke about various other topics like the application of the two GCC unified agreements related to VAT and selective taxation. To ensure smooth functioning of the laws, a team would be put in place to supervise any problems and execute all the steps.
The Double Taxation Agreement actually demonstrates the efforts made to improve various new opportunities of investment, support and enhance imports and exports, and ensure that there is a free flow of trade and also investment. It will also enhance the capital flow, the exchange of services, and bring in more economic diversification while making the partnership between the UAE and Saudi Arabia stronger. This makes company formation in UAE and also company formation in Saudi Arabia much easier.
He explained that UAE is committed to doing more agreements dealing with avoidance of double taxation, and the imperative point out of this is the information exchange for the purpose of tax and adopting the best-in-class standards in terms of transparency and information exchange. The purpose is to achieve the goal of justice for tax-payers and organizations, protect the country’s economy, and also execute the decisions of Global Forum on Transparency and Exchange of Information for Tax Purposes, which enhances UAE’s spot as one of the top international fiscal and commerce centers.
Talking about some statistics, the transactions into real estate by Saudi nationals done in the UAE in the year 2016 touched the129.9 billion dirhams mark. While the volume of licenses granted for doing financial activities to Saudis residing in the UAE touched 10,896 in the year 2016. The total investments of the Saudi citizens and the Saudi banks located in the UAE were about 18.66 billion dirhams in 2016, whereas the trade figures between these two nations were plotted at 35.11 billion UAE dirhams. Did you know that Saudi Arabia stands third in the world and tops the charts in the Arab countries when it comes to UAE exports? It accounts for almost 45% of its imports from the GCC and around 28% of UAE’s imports that come from the Arab countries.
MoF had also signed some Agreements on the Avoidance of Double Taxation on income tax earlier with around 115 countries. The Ministry also stated its commitment towards the implementation of high levels of financial transparency and exchange of information for tax-related issues, which is in line with the G20 (Group of 20) decisions and the provisions done for Avoidance of Double Taxation agreements with other countries.

- Newsletter, Oman
- June 21, 2018
As technology and internet are becoming imperative in running operations of an organization, or managing online and electronic transactions domestically and internationally, having a strong legal framework to protect the interests of stakeholders is very important.
Recently, the government of Oman has issued the Sultani Decree 69/2008, also known as “the Electronic Transactions Law” (“the Law”). This legislation has been passed because of ever-increasing electronic and online transactions, which also give rise to the many cases in Omani courts. Earlier there were not enough laws to take care of such issues.
Electronic Transactions Law
This Law is pursuant to Article 3 and applies to any electronic or online transactions, signatures or records, and also to electronic messages. But it does not apply to matters pertaining to personal status law, like marriage, wills and divorce. It is also not applicable to many court procedures, proclamations, judicial summons, arrest orders etc. Usually, the Law provisions apply to all the transactions between any persons who are transacting by any electronic mode and their consent may be inferred from their conduct. Any agreement to do any transaction electronically would not be obligatory on any of the parties to carry on other transactions by the same mode.
Electronic communications like messages would also have the same effect legally if all the guidelines under this Law and its implementation rules are strictly observed.
But there may be cases, where there is a particular requirement under any other legislation, for example, the Commerce and Employment Law requires the party in question to safeguard any information or document relating to a specific transaction or an employee. However, this requirement holds true if the following conditions are met:
- The information, record, document or data are saved in their original form, electronically and should be able to prove that they are in its original form;
- The information, record, document or data would have to be retained in a manner that render it retrievable and usable for any future reference; and
- The information, record, document or data would be retained in a manner that helps to identify their beginning point and destination, and also the exact time and date when they were sent or received.
If any message is presented in a court for a legal proceeding, it will only have evidential weight depending on the following factors:
- The trustworthiness in which the message was entered, performed, processed, stored or presented;
- The steadfastness with which the information’s integrity was maintained;
- The dependability of the source of information;
- The reliability of how the originator of the information was identified; and
- Any other pertinent factor.
Though this Law takes care of the services concerning the service providers into authentication in terms of certificates issuance into electronic authentication or any other services dealing with electronic signatures, the reality is that the number of authentication services providers who are licensed by the IT authority in Oman. The Law also covers the protection of any personal data that should not be shared or used for anything except the original purpose for which it was obtained.
In order to deal with the IT-related crimes, the Oman government has issued Sultani Decree 12/2011(“Combating of Information Technology Crimes Law”). This law criminalizes some specific acts that deal with the breach of safety and privacy of electronic information and also information systems, and also the misuses of IT means.
The government of Oman has put in place the basic legislations including the Law and the Combating of Information Technology Crimes Law, which controls the formation and functioning of electronic transactions and contracts. The Oman government has also created bodies such as ITA to ensure proper implementation of the Law provisions and their use and application by governmental agencies such as Ministry of Commerce and Industry and Royal Oman Police. This enactment has no doubt strengthened the use of IT in Oman and it also ensures extra protection to the users. However, recovering for any returns of goods or damages also pose a challenge that is needed to be regulated. There is a requirement to lay clear terms and conditions in case the law is executed in different territories.
All the individual users, companies and also governmental entities will have to develop a strong internal regulation system, which lays the criteria and regulations for their employees while doing any electronic transactions or starting verification process of the second contracting party, so that the protection of data and information processing and its proper applicability is guaranteed.

- Article, U.A.E
- June 20, 2018
The Federal Tax Authority (FTA) has recently set requirements and procedures to refund Value Added Tax (VAT) on new homes for UAE nationals.
According to the statement issued by FTA, in order to claim the refund of VAT there are three conditions that need to be met:
- The applicant must be a natural person and a citizen of UAE.
- The monetary cost that is being claimed must have been spent towards the construction of the new residence in UAE. Such residence must be used by the owner himself or his family for residential purposes. Additionally, the construction services must be a part of the construction project.
- Only the VAT paid on expenses are eligible for the refund. For example, money expended on buying construction materials.
What Are The Steps To Claim Refund?
Now that we have established the criteria for claiming a refund, let us look at the steps to be followed to claim such refund.
- Step 1: VAT Refund Form
The applicants must download the VAT refund form from the official website of the FTA. After the download, fill in all the required details, take a print out and sign it.
If you cannot manage your VAT refund process on your own, it’s wise to take the help of a professional VAT consultant in Dubai like IMC Group.
- Step 2: Form Submission
Scan the duly filled and signed form and make a PDF File. Along with the form, you would also require the scanned copies of some additional supporting documents. These are:
- A copy of the applicant’s passport
- A copy of the applicant’s Emirates ID
- The paperwork providing evidence of the applicant’s ownership of the plot of land in question
Send the form and the scanned supporting documents to [email protected]. It usually takes less than five working days to process the VAT refund applications. The applicants will receive an email that informs them about the status of their application i.e. accepted or rejected.
- Step 3: Refund of VAT
For the applicants whose VAT refund application gets accepted, they become eligible for the refund. They will now have to submit the refund request to an accredited verification body assigned by the FTA. Along with the refund request, you must submit the reference number (of the earlier application), property blueprints, and related purchase invoices.
The accredited verification authority will evaluate your refund request and based on that prepare a ‘Verification Report’. This report will state the amount of VAT paid versus the recoverable VAT amount and will be sent to the FTA within 15 days from the date the invoices were issued. The FTA will further take approximately 20 working days to process the final request. In five more working days, it will refund the eligible recoverable amount to the applicant.
Things to Remember
The FTA has clarified that the applicant can submit the VAT refund application within six months after the completion of the residential building. This means that the completion of the home is essential, not the occupancy, to claim the VAT refund.
Get in touch with us if you have any enquiries regarding VAT Refund.

- Newsletter
- May 16, 2018
The Plug and Play ADGM programme set to launch in Q3 2018 aims to speed up the growth of FinTech start-ups and innovators.
The Abu Dhabi Global Market or ADGM is collaborating with the world’s innovation platform – Plug and Play. They have got together to launch ‘Plug and Play ADGM’ office. The good news is that they have announced the launch date for their FinTech innovation programme starting with Abu Dhabi, the wider Middle East and North Africa, MENA, region.
The Plug and Play ADGM programme is planned to go-live in quarter 3 of 2018 and its primary focus is on stepping up and encouraging the FinTech start-up companies and other innovators, who offer out-of-the-box solutions that take care of the ever-dynamic requirements of the region’s capital markets. The Plug and Play ADGM has its headquarters on the Al Maryah Island.
This will provide a tactical platform connecting the business partners of Plug and Play ADGM to the most appropriate and revolutionary solutions by FinTech start-up companies under the programme. The platform promises the benefits of ADGM’s internationally-aligned FinTech infrastructure and initiatives, for example, the ADGM Regulatory Laboratory, the ADGM FinTech Innovation Centre and ADGM’s network of local and global institutions, FinTech bridges and other industry partners.
The Plug and Play ADGM team’s primary aim is to develop and facilitate FinTech companies and innovators so that they could be ready for the market and function ably and efficiently as per the regulations and framework applicable in Abu Dhabi and this region. This also ensures that company formation in Abu Dhabi becomes easy.
Richard Teng, who is the CEO of Financial Services Regulatory Authority of ADGM said that AGDM and Plug and Play had common goals, such as finding out the requirements and then resolving the difficulties of the financial services sector in the region along with developing and encouraging the finest entrepreneurs, among others.
Omeed Mehrinfar, who is the Managing Partner at Plug and Play in Europe, the Middle East and Africa, said, “Through ADGM being a leading International Financial Centre, with resources such as their RegLab and Innovation Centre in place, we can augment our offerings towards local and international entrepreneurs that are looking to scale their FinTech solutions across the MENA region. The ADGM partnership is also an opportunity for both of our entities to evaluate expanding into other industries and fields as it pertains to the region’s innovation agenda. This mutual roadmap, as well as their team culture and ours were an automatic match.”

- Article
- May 2, 2018
Taking your business internationally could be very advantageous, but there are some things to keep in mind while you plan this move for expansion. It’s true that exploring newer avenues or markets for your products can be exciting; however, it’s not so easy to execute.The question to ask yourself is, is your business ready for it? Without a well thought of strategy, you cannot enjoy the benefits of this transition.
Do’s for global business expansion:
Start with getting the comfort in the new country:
Think of the barriers such as new language, culture, market ethics, regulations etc before you plan your transition.
It’s imperative that you feel secure, confident and comfortable in the new market or country you plan to go into. Why? Because you will be working there once your expansion plan is successful.
Build a trusted team in the country you are targeting:
Without a good support of a trusted team, you cannot aim to have a flawless global move. So look to hire marketing experts, HR leaders, accounting and also legal professionals. But why do you need native people? Because they know all the pros and cons of the market.
Find out about the laws of the land:
Get a basic understanding of the laws of the new land you plan to step into. This refers to being confident about the legal complications while operating internationally which will avoid unnecessary delays and hurdles.
Make changes to your existing business plan including global expansion
Updating your business plan with all the factors regarding international expansion is a must do.
Ensure to include all the updates like the potential markets, your new customers, untapped revenue sources, strategies to import and export, new costs like marketing, travel, shipping, possible partnerships and alliances, legal requirements, and other investment opportunities.
Take into consideration your competitive advantage
Before your expansion into global markets, see if you have any competitive advantage. For instance, for company formation in UAE, first think of a strategy to create a competitive advantage if you already don’t have it. Competitive advantage comes with increased resources, new strategies and innovations. You can enhance your business’ international competitiveness by using systematic processes to renew, exploit and improve your core capabilities.
Don’ts for global expansion:
Assuming that your IP (Intellectual Property) is protected is a big mistake
Before stepping into a new global market, you must think of a strategy for your Intellectual Property rights of your company. See if your IP is protected and what can you do if it is violated.
Expanding without local liaison is a strict No
Other than building a trusted team, you must liaison with local experts or consultants. This could help you in managing and planning the operations smoothly and without any hurdles. For example, if you are thinking of company formation in Singapore, find a find a business consulting firm or local experts who are highly reputed to execute new deals and also handle your company’s information.
Think of a new market strategy
Start with a thorough research of the market in the country you are targeting. Study the culture, market techniques and think of an apt market strategy.
Starting from scratch is a bad idea
There are local experts who assist in building an international model for you. Take help in planning your entry, funding, hiring strategy etc.
So, planning a global expansion is a tough bet; but who says it’s a herculean task? Plan well and keep in mind the do’s and don’ts.
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