- Newsletter, Saudi Arabia
- January 19, 2018
Saudi Arabia has expanded its horizons as a part of vision 2030 and is planning to branch out and steer the economy into other frontiers thereby stealing the spotlight away from oil.The Saudi government has thrown its door open for overseas business by introducing business licenses.
In recent times, the Saudi Government are of the view to facilitate the growth of the Small and Medium size enterprises(SME) sector and are doing so by allowing overseas entrepreneurs to create their foothold and obtain business licenses to start their operations in the kingdom.
This revolutionary announcement was announced in the Misk Global Forum annual meeting held in Riyadh by Monsha’at, Saudi Arabia’s SME authority, the Saudi Arabia General Investment Authority (SAGIA), King Abdullah Economic City (KAEC) and the Economic Cities Authority (ECA).To commemorate this announcement, the Minister of Commerce and Investment, Dr. Majid Al-Qassabi issued the first 11 licenses to entrepreneurs at the Misk Global Forum.
It was also said that the licenses would be issued to those who give a patented and innovative service or business to the Kingdom. The permits are issued by SAGIA or by the economic free zones, which provide substantial incentives which includes rent-free premises, transportation, and subsidized housing.
“The new licensing initiative is designed to help build up the private sector, particularly SMEs, and move away from an over-reliance on oil revenues,” said Dr. Ghassan Ahmed Al Sulaiman, Governor of Monsha’at, said while commenting on the government’s attempt to create a flourishing start-up environment in Saudi.
This massive feat was inspired by the Vision 2030 and will help Saudi Arabia in garnering and drawing the best intellectuals and will help in the transference of information and expansion of the economy. This initiative of Saudi Arabia will provide a conducive environment for small- and medium-sized companies which ultimately leads to the increase of GDP and job creation for its citizens.
The reason for launching in this Misk Global Forum is that it is a global event which connects young and experience innovators and leaders to focus on the stimulation and swapping of innovative technologies and its knowledge.
- Newsletter, U.A.E
- January 17, 2018
On 18th September 2017, His Highness Shaikh Khalifa Bin Zayed Al Nahyan, the President of the UAE, issued Federal Decree No. 10 of 2017 amending the Civil Procedures Law, dispensed by Federal Law Number 11 of 1992 (the “Law”). It introduces the use of remote communication technologies, known as “e-Trials,” into civil proceedings in UAE. The Law will come into force six months after its publication in the official Gazette Law in 28th September 2017.
The newly introduced law aims to endorse the rule of law, ensure effective justice, provide for fast-track civil trials and to keep pace with progressive technological changes in the Civil Procedures Code. From the year 2018, there will be an allowance of video conferencing in civil court trials and the cases of labor, financial, contracting and intellectual property disputes. The UAE economy is keeping its rapid pace with the advancing technologies through the introduction of smart e-trials.
The UAE Ministry of Justice’s strategy is to launch four initiatives, whereby the year 2021, there will be an online dispute resolution mechanism. The UAE judicial system will see a ‘smart leap’ as it plans to conduct electronic trials (i.e., without real courtrooms), initiate video-conferencing during court hearings. There will also be real-time translations in court proceedings via a screen that will connect translators to secretaries of court and judges, and electronic mediation and conciliation services in criminal justice.
The court chief, the competent judge or the person authorized by the involved parties has the right to allow trial proceedings of the remote communication technologies, when it is considered necessary to do so, at every stage of civil proceedings to facilitate trial procedures.
All the electronic communication of a case will be treated as confidential and will not be published or copied without the permission of the court. The parties involved in the altercation can also request for physical hearings, and the court will give access to the physical hearings after a notifying the other party.
The electronic signature and electronic documents shall have the same authoritative effect as the signatures referred to in the provisions of the Law of Evidence in Civil and Commercial Transactions (Federal Law No. 10 of 1992) and Electronic Transactions and E-Commerce Law (Federal Law No. 1 of 2006).
The implication of this law:
The UAE economy will have an accelerated judicial system that allows video conferencing in seeking foreign legal assistance or using testimonies from overseas experts in foreign countries; by international agreements and treaties, the UAE has signed. The most feature of this law would be the introduction in Article 343 of a new system for accepting the submission of photocopied documents relating to the civil lawsuits that are held using remote communication technologies. The innovation here is that the opposing party cannot object to the presentation of these reports merely because they are photocopies and not originals unless they disagree on the validity of the papers or assert that they were not issued or related to the party attributed to them.
It is a powerful and significant step forward for the UAE economy in achieving speedy justice where all the assurances for a fair trial are being fulfilled and accomplished. This is also a cost-effective solution and will make court proceedings more accessible, well-organized and on par with best international law practices.
- Newsletter
- January 17, 2018
The investment opportunities in the healthcare sector of the province of MENA is attracting investors worldwide, but there are certain restrictions that an investor has to navigate by abiding the local laws that are required for hospital set up in the MENA region.
The licensing requirements for the hospitals differ in Bahrain, Egypt, Iraq, Jordan, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates which come under the MENA region. It is prudential to know some of the requirements and restrictions imposed under the relevant local law about hospitals operations.
The key players for the licensing requirement are:
The regulatory authorities:
The general regulatory authority that oversees the hospital set up in MENA would be the Ministry of Health. However, the Dubai Health Authority performs this role in the Emirate of Dubai, and the Healthcare Authority of Abu Dhabi plays this role in Abu Dhabi.
The registration requirement:
The MENA region has differences in the registration requirement in its divisions. In Bahrain, hospitals are registered at the Ministry of Industry, Commerce, and Tourism, whereas in Egypt it is done by the Commercial Registry Office. In Kuwait, the Ministry of Commerce and Industry takes care of the commercial registrations of hospitals.
Imposition of local ownership:
The investors have to pay attention to the fact that the most of countries of the MENA region have their licensing requirements of including local ownership. This clause may extend to the properties owned by the hospital or the properties that will be purchased by the hospital.
- In Egypt, any foreign national can own shares in a hospital, except for some geographical regions (g., Sanai) where the restrictions of foreign investment apply.
- Under UAE or Kuwait,at least 51% of the entity that operates a hospital must be owned by the local shareholder(s).
- In Saudi Arabia, before a non- Saudi party acquires shares in a hospital operator, that party will have to secure a license from the Saudi Arabian General Investment Authority.
- Finally, in some GCC states, there are also specific nationality requirements in respect of medical staff or a Manager/ Director of the medical facility.
These requirements are crucial for a hospital set up in MENA, and there are also the various licensing requirements to be considered by the investors.
The practicality of these conditions:
Even though the legality of setting up a hospital in MENA may look standard; the investors have to pay attention to the practicalities that may arise under the hospital incorporation or acquisition process that might not have been clear under the local law of the specific region. Most of the times, the local shareholder are listed as owners of the hospital by the authorities rather than mentioning the hospital as the license holder or mentioning all the shareholders as the license holders.
When planning to invest in a hospital set up in MENA region, the investor should be well versed in the licensing requirements and the local law. Even though they may appear restrictive, they also help in meeting commercial business objectives and the legal requirements.
Reach our consultant at [email protected] to know more about healthcare setup in MENA region or visit us at www.intuitconsultancy.com
- Newsletter
- January 17, 2018
The Central Bank of Bahrain introduced a regulatory Sandbox for the Fintech Firms in July 2017 for testing their innovative and customer beneficial technologies in a safe virtual place. The State of Bahrain is the second member state of the GCC to introduce these regimes.
A regulatory sandbox is a place where the startup and established Fintech firms could develop their financial technology (“FinTech”) sector in a safe, measured and practical manner. The Sandbox helps in developing, testing and tweaking the commercial technology of the Fintech firms. This regulatory compliance of Bahrain enables the companies to test and refine their technique without the pressure of the usual regulatory and financial requirements which would otherwise apply to their activities.
The notable features of this sandbox are:
- The regulatory sandbox is open to existing CBB licensees as well as to entities or firms that do not hold a license issued by the CBB (both Bahraini and foreign). Such non-licensed companies or entities may include financial sector companies as well as technology and telecom companies; professional services firms which work with or service financial institutions; and any other type of applicant working within the financial services industry and considered acceptable by the CBB.
- The regulatory sandbox is open both to existing FinTech solutions which have already been tested within a lab environment, as well as to ideas and solutions which are yet to be fully developedand
- The time allotted for an applicant to remain within the regulatory sandbox is a maximum of nine months (with the possibility of an entirely discretional extension of three months).
- The CBB may limit the testing of the product or service by the applicant regarding the number of volunteer customers and the amounts involved.
The eligibility criteria:
- Innovativeness: the technology should be genuinely innovative or expressively diverse to existing elucidations within the Bahrain market,
- Customer benefits: it should offer tangible benefits directly or indirectly to the customer,
- Technical testing: this is only for existing technology, the firm offering with existing technology should have obtained technical testing with the results to be provided to the CBB or produce an external validation from a reputable third party,
- Ready for regulatory testing:Applicants are obligated to show evidence of a thriving regulatory testing plan which includes highlighting of the key risks the solution poses; details of how these will be alleviated; and details of sufficient safeguards to protect customers.
- Post-testing deployment in Bahrain. The applicant should exhibit their aim and ability to deploy the projected solution in Bahrain by way of submission of a Sandbox exit strategy (to include specific details of proposed scale-up and future deployment).
The application procedure:
The applicants have to submit a written application using the standard template issued by the CBB for the sandbox regulatory compliances in Bahrain, and they should provide the following details:
- A description of the applicant’s organization as well as its corporate structure, key business lines and centers, and its financial standing and technical expertise;
- The proposed innovative financial solution, and how it satisfies the eligibility criteria
- The information as to the type (and number) of volunteer customers to be included in the applicant’s sandbox testing; how they will be sourced, and proposals to protect the volunteer customers and their privacy;
- Key performance indicators and targets which will be used to determine the success of the testing
- The cybersecurity and other relevant measures to be applied by the applicant to maintain security of the solution service or product; and
- The applicant’s exit plan, plans for development and deployment strategy, together with a timeline of steps to be taken to meet the additional legal and regulatory compliances in Bahrain after exiting the regulatory sandbox.
The CBB reserves the right to relax the requirements according to the applicant’s situation. The applicants are required to adhere to the relevant CBB regulations with regards to Know Your Customer (KYC), Anti-Money Laundering (AML) and Countering Financing of Terrorism (CFT). Also, the funds received by the applicants from the volunteer customers, required to be entrusted to the handling of CBB licensed retail banks.At the end of the designated period, the applicant can apply for appropriate CBB license depending on the precise activities of the applicant.
The introduction of the new framework and the creation of a dedicated FinTech Unit within the CBB are consistent with Bahrain’s sustained focus on promoting the kingdom as the emerging FinTech and financial services hub of the Middle East region. At the same time, the defenses built into the regulatory compliance in Bahrain will ensure the required level of consumer protection and regulatory oversight which have long established Bahrain as one of the leading financial sector hubs in the GCC.
Visit www.intuitconsultancy.com to know about regulatory compliance
- Newsletter
- January 17, 2018
Singapore has witnessed a rapid growth boost in the third quarter as the Gross Domestic Product(GDP) registered a growth rate of 8.8% over the expected growth rate of 6.3% and the GDP of the year was at 5.2 % than the estimated 5%. The stabilization of the global trade has boosted the growth of the country’s economy like Singapore’s economy is mainly dependent on the growth of the worldwide economy.
The growth of the economy has further spread into the industries like services where there is a boom in the company formation in Singapore thereby enabling the Government to review their projections for the year.
The Trade Ministry of Singapore is of the view that the growth of the GDP will rise more in the current year by basing the calculations on the new company registration in Singapore and emerging markets worldwide as well as the U.S market. The growth of exports is expected to diminish a little in the year 2018 as per the report of International Enterprise Singapore is supposed to have an increase of only 0 to 2 percent.
The domestic businesses will fare well with Singapore company formation as the labor market is also improving. As the economy of Singapore is mainly supported by the manufacturing industry, company registration in Singapore will prove beneficial for home-basedentrepreneurs. However, the third quarter saw a boom in company registration in Singapore of the sectors of business services and the retail segment.
Experts also expect the economy of U.S to “pick up slightly.” because of the buoyant labor force and consistent business growth in the Eurozone and the neighboring country of China will have moderate increase.
The hitch to this robust growth of Singapore would be the uncertainty surrounding the U.S policy, persistent protectionist sentiments and high tension surrounding the Republic of North Korea. Experts are of the view that the recovery of Singapore is broadening in various sectors slowly and steadily.
To know more about Company formation in Singapore reach us at [email protected] or log on to www.intuitconsultancy.com
- Newsletter
- January 17, 2018
According to the latest report of OECD, the Global economy has enhanced due to the monetary and fiscal reasons and has shown a broad and coordinated improvement of growth in most of the countries.
Experts estimate that the economic trends of 2018 would also be on the rise, but at a slower pace as the, there are long-term challenges of creating more resilient economies to sustain the challenges of future. OECD is now focusing on the prolonged growth behavior of the private sector which also include investment, production, and trading. The employment levels are far above the pre-crisis level and yet are to produce robust real wage gains. The economic trends of 2018 if not explicit, can spell weakness for the global economy in 2019.
The debt of household and corporate are creating vulnerabilities and making sustainability a questioning factor in the medium term. The Economic Outlook for OECD is advocating an integrated approach while tackling all the issues of macroeconomic policy and a change in the structural systems. The OECD is of the opinion that the Global economy would benefit from healthier and robust financial system that would reduce the tax bias towards debt, open equity markets and clear out the problem of the insolvency regimes. Making the supply of housing more fluid and removal of tax subsidies for housing requirements would alleviate the tendency of sudden boom or fall in the market.
The projection of OECD for the global economy for the current year is at 3.7 percent, while for the year 2017 it was at 3.6 percent and the same percentage is expected for the year 2019.
The OECD has also predicted the percentage of the economic trends of 2018 and 2019 for the following countries:
| Countries | 2017 | 2018 | 2019 |
| The United States of America | 2.2 | 2.5 | 2.1 |
| Eurozone | 2.4 | 2.1 | 1.9 |
| Germany | 2.5 | 2.3 | 1.9 |
| Italy | 1.6 | 1.5 | 1.3 |
| France | 1.8 | 1.8 | 1.7 |
| The United Kingdom | 1.5 | 1.2 | 1.1 |
| Japan | 1.5 | 1 | 1 |
| Canada | 3 | 2.1 | 1.9 |
| China | 6.8 | 6.6 | 6.4 |
| India | 6.7 | 7 | 7.4 |
| Russia | 1.9 | 1.9 | 1.5 |
| Brazil | 0.7 | 1.9 | 2.3 |
The growth in the United Kingdom is unpredictable as the political situation of the country remains unstabilized, and the growth of Japan is hit due to the reasons of fiscal consolidation and the decline in the working-age population is on the rise. The major economies are on the mend even though China still maintains a softer lead due to a recession in the major export products. The economic trends 2018 of India seem brighter as the Government introduces new age reforms to accelerate the growth of the economy.
OECD is of the view that an integrated policy approach will steady the global economy which will boost growth, moderate risks in the financial sector and increase resilience.
- Newsletter, U.A.E
- January 17, 2018
The Dubai International Financial Centre (DIFC) is a prominent center for intercontinental companies that are having its base in the Middle East, Africa, and Asia. The DIFC Special Purpose Company (SPC), in particular, has become a favored method for either Islamic or a conservative, structured company formation in Dubai, and also for the acquisition, retention, and removal of an asset or for obtaining the financing over an asset as part of Dubai Company Registration.
An SPC is a company that is limited by its shares and is incorporated under DIFC law. The company so registered enjoys the benefits of no foreign ownership restrictions and no obligation to lease separate office space, coupled with a zero tax environment. However, every SPC must appoint a Corporate Service Provider (CSP) that is registered in the DIFC to be responsible for its registered office address, majority directors, and a corporate Company Secretary.
As merger and acquisition activity continues to develop in the UAE, there is a proper scope for Dubai company registration, and the SPC’s provide a legal and robust framework for company registration in Dubai.
The Dubai Investment Development Agency offers significant benefits regarding the protection of definitive beneficial ownership and the control of the transactional structure, while also satisfying the criteria of a company’s due diligence and corporate governance obligations.In concrete terms, there is no requirement to lease office space, to maintain, file and audit accounts, or to conduct an AGM.
An SPC, incorporated in the DIFC, is beneficial for parties looking to invest in other Gulf Cooperation Council (GCC) jurisdictions outside the UAE, who wish to be incorporated within the DIFC’s globally oriented and English-speaking supervisory and legal system. It provides compatibility to the multifaceted structures with other offshore and onshore authorities and is treated as a ‘national company’ where it is wholly-owned by UAE nationals.
This DIFC Special Purpose Company is boon for investors looking forward to placing their company formation in Dubai and still be part of the international business.
For company formation in DIFC log on to www.intuitconsultancy.com or mail us at [email protected]
- Newsletter, Oman
- January 17, 2018
The GCC council has set the stage for VAT implementation from the start of this year or in the first quarter of 2018, and the member states of the United Arab Emirates and Saudi Arabia have issued a formal announcement and implemented VAT law in their respective provinces.VAT in GCC comes with a certain flexibility,and the member states can take advantage of this flexibility to draft VAT law according to their local business and regulatory regime.
Oman is yet to implement VAT, and businesses should seek guidance to avoid penalties and issues of non-compliance. They should have adequate knowledge to tackle the potential scenarios of VAT in Oman like the updating of accounting and IT systems and revision of contracts. As the VAT liabilities are self-assessed, it often leads to severe penalties or interference in daily business activities.
Along with the other member states, Oman is planning to levy a 5% VAT which is also an indirect tax levied in every stage of economic activity in the supply chain, and this move is a game changer in the area of the indirect tax levy.
Here are some of the ways through which a business can prepare for the forthcoming announcement of VAT in Oman:
- Calculate the impact of VAT In GCC and VAT in Oman if the business has an extensive presence in GCC or just in the state of Oman.
- Assess whether the business comes within the mandatory threshold, if yes what are the provisions and steps to be taken for the VAT compliance,
- Develop a resourcing plan to estimate the necessary work and updating of the systems to accommodate the requirement of the VAT.
- Review and revising the internal framework of the business, and internal VAT compliance teams for monitoring and devising reporting mechanisms,
- Review and update the existing contracts to include the VAT requirements and ensure all the involved parties are aware of the responsibilities of reporting and accounting of VAT provisions.
- Including the necessary contractual revisions in the existing contracts and appraising the vendor of the changes required in managing VAT costs in vendor contracts or future pricing rate in customer contracts.
- Training employees on VAT compliance and the updating practices of IT and governance,
- Review and implementing the necessary changes in the business framework and models,
- Review and updating of the existing and future contractual arrangements with a view of accommodating the VAT law in the with an effect that might impact on the corollary obligations.
These are the changes that business to absorb the provision of VAT in Oman and maintain its position in the market post VAT in GCC.
For more information on VAT implementation in Oman, reach our consultant at [email protected] or log on to www.intuitconsultancy.com
- Article, U.A.E
- January 9, 2018
Much confusion has ensued regarding the norms of application for the UAE Tax Residency Certificate. Several misinterpretations are surrounding the rules of application for this certificate. This article gives a clear and concise view of applying for the UAE Tax Residence Certificate along with setting straight the myths about this document.
The clear view of the UAE Tax Residency Certificate:
What is a Tax Residency Certificate?
It is a specialized document issued by the UAE Ministry of finance substantiating the applicant’s status as a resident of the UAE with regards to the Double Taxation Agreements (“DTT”) between UAE and a specific foreign dominion.
What is the use of UAE Tax Residency Certificate?
The Tax Residency Certificate is the essential document that helps the applicant to claim the benefits of DTT.
Is it applicable to individuals?
Subject to specific prerequisites, an individual can apply for the UAE Tax Residence Certificate.
What requirements are to be fulfilled by the individual to obtain this tax certificate?
The conditions to be met by the individual are:
- The individual should hold a valid passport copy and visa copy issued at least before 180 days,
- Emirates ID copy, (A report prepared by the General Directorate of Residency and Foreigners Affairs which specifies the number of days spent by the resident in the UAE)
- Six months statements of a UAE bank. They are to be duly stamped by the bank,
- A valid proof of income in the UAE, for example, the employment agreement, share certificate or salary certificate
- Immigration (GDRF) Report (a report that has the all recorded entries into and exits out of the UAE),
- Certified copy of tenancy agreement or title deed; valid for a minimum three months before the application,
- Application Fees of AED 2,000 + AED 3 is to be paid by the applicant through the e-Dirham card.
Can a company apply for this UAE Tax Residency Certificate?
Subject to specific prerequisites, a corporate entity or company can apply for the UAE Tax Residency Certificate.
What requirements are to be fulfilled by the corporate entity to obtain this tax certificate?
The conditions to be met by the company are:
- A copy of valid trade license,
- Certified copy of tenancy agreement or title deed; valid for a minimum three months before the application, a physical office space is mandatory (not a flexi desk)
- Valid passport, valid visa copy and Emirates ID of the company Director/ Manager
- Latest certified audited financial statement or last six months company’s UAE bank statements; stamped by the bank
- Application Fees: AED 10,000 + AED 10, paid through e-Dirham Card
- Certified copy of company’s tenancy contract or lease agreement
- Tax forms from country where the certificate is to be submitted
Is a UAE offshore company permitted to acquire a UAE Tax Residence Certificate?
No. The Ministry of Finance does not issue a UAE Tax Residence Certificates for offshore companies as they are treated as non-resident corporate entities for tax purpose.
Time is taken to Process the Application?
The whole process in case of an individual or corporate entities takes about 2 weeks for its completion.
What are the steps to apply online for the UAE Tax Residency Certificate?
The applicant should create an online account on the MoF portal and the application for the UAE Tax Residency Certificate has to duly fill and uploaded with the supporting documents for the review and the approval by the MoF. Once the MoF has issued the approval, the can be paid by the applicant through the online payment portal of the MoF. The Tax Residency Certificate can be collected in person by the applicant at the Ministry, or it can be couriered by the issuing authority to a domestic address supplied by the applicant. The whole process takes about 2-4 weeks.
The myths of the UAE Tax Residency Certificate:
Myth: An individual is required to stay in UAE for 180 consecutive days to meet the MOF requirements.
The above criteria contain partial truth and are a partial myth. The MoF has fixed a prerequisite for an individual applicant to have spent at least 180 days in the UAE within the year preceding the applications for the certificate. This is an objective criterion (day-counting). It is, however, possible to apply or reapply even if this condition is not met by the applicant if they prove to have strong ties to the jurisdiction.
Myth: There is no need for residential address in the UAE
A valid residential address in the UAE and a valid tenancy contract in the applicant’s name are mandatory conditions to apply for the UAE Tax Residence Certificate.
Myth: I can submit international bank account statements as part of my application
The MoF will not accept foreign bank statements. The applicant must have a UAE personal bank account in the UAE and have held such account for a minimum of 6 months. The MoF also requires the latest six months statements to be stamped by the UAE bank (Online generate bank statements are not accepted).
Myth: The Tax Residence Certificate cannot be predated.
An individual or a company can acquire backdated Tax Residency Certificates. The MoF allows the applicants to backdate their Tax Residence Certificate application with the proviso that there are enough documented proofs of the applicant of having a UAE residency visa, six months UAE bank statements and a residential address for that period.
- Article, U.A.E
- January 9, 2018
The United Arab Emirates is a collection of seven emirates, with Abu Dhabi being the capital. It is also the biggest emirate in UAE, and contributes nearly two thirds of the UAE’s economy. Careful planning and stringent laws transformed Abu Dhabi into a financial hub, with adequately capitalized banks and a lot of good sovereign wealth funds.
The Abu Dhabi Global Market
The unexceptional growth of GDP at 11%, Abu Dhabi has become one of the world’s largest sovereign wealth funds with highly capitalised banks.
The Emirate of Abu Dhabi introduced their first financial free zone, under the name “Abu Dhabi Global Market” or ADGM. Having its own rules and regulations, Abu Dhabi Global Market is located within the Al Marayh Island, and doesn’t come under any other jurisdiction. ADGM comprises of three main authorities: The Registration Authority, ADGM courts, and the Financial Services Regulatory Authority and soon to be launched the Arbitration Centre for creating a business environment that will allow the companies to carry on the business with ease and in a smooth manner.
It is to be noted that companies established in ADGM can have 100 percent foreign ownership are subject to a civil law commercial and regulatory environment. The ADGM courts settle all disputes within the Abu Dhabi Global Market. The Registrar is responsible for regulating ownership, taking care of all legalities and issuing penalties whenever required. It is also responsible for the monitoring compliance of the commercial laws laid by the ADGM that includes levying penalties, directions, suspension and withdrawing the licenses based on the severity of non-compliance.
The FSRA is responsible for transparent and smooth financial management of ADGM. All the activities related to policy and legal, banking and insurance, capital markets, enforcement, international affairs, and financial centre development are undertaken by them.
Services provided by ADGM:
ADGM is not only for just business based on finance, it is for all kinds of businesses. What attracts businesses to ADGM is that it offers solutions to a variety of business activities, such as commercial, professional, management oriented, family businesses, corporate headquarters, etc. In the Abu Dhabi Global Market, there are financial, non-financial and retail businesses. The term “financial” covers all banks, brokers, agents, wealth managers, fund managers, etc. Non-financial activities consist of things like manufacturing, real estate, information, communication, education, transport, etc. Retail activities can consist of manufacturing and sale of textiles, jewellery, food & beverage, etc.
Steps for incorporation:
Every business entity has a different incorporation process because of the varied requirements. But, here is the general outline of the incorporation process that is followed by a private company limited by shares:
- Step 1: the proposed company name should be in compliance of the ADGM Business and Company Names Rules 2016.
- Step 2: Registered address must be located in Al Maryah Island, Abu Dhabi, UAE
- Step 3: The incorporation documents and business plan is prepared as well as the access to the ADGM online portal is granted.
- Step 4: All the documents such as Articles of Association, shareholders resolution etc. are prepared and submitted along with the duly filled application form.
- Step 5: A certificate of incorporation and commercial license is issued when registrar is satisfied with all the documents and information filled in the application form.
Attractive Features of ADGM:
Its wide range of business related activities is not the only reason why ADGM is seen as good investment destination by foreign investors. ADGM also has an extremely sophisticated and crystal clear legal system, and a prompt legislative regime, wherein foreign investors can conduct business in Abu Dhabi without a lot of legal troubles.
Businesses in ADGM can be owned completely by foreign nationals without the need to have 51% of it registered in the name of a UAE national.
ADGM has opened new avenues for businesses in Abu Dhabi and made it a financial free zone. The simplified incorporation requirements, abridged legislative regime, and the business-friendly infrastructure are attracting the businesses to Abu Dhabi.
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