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Top Business Opportunities to be explored in Bahrain in 2019
  • Article, Bahrain

Top Business Opportunities to be explored in Bahrain in 2019

Bahrain is a nation made up of an archipelago of about 30 islands and has acted as the crossroads for some key trade routes because of its strategic location in the Arabian Gulf. Over the last decade, Bahrain focused a lot of its efforts in promoting its economy and make its business environment dynamic so as to foster economic growth. We have collated a list of the top business opportunities in Bahrain that can hit the bulls-eye in 2019.

Below are the top six business ideas:

  1. Financial Consulting and Banking: The financial and banking sector became the most flourishing businesses in the Kingdom towards the end of last year. The highly- developed banking system in Bahrain accounts for almost 17.2% of the country’s GDP. The banking sector includes various traditional banks and also some Islamic banks, thus providing the country varied options of financial services like specialized banks, retail/wholesale banks, insurance and other financing companies, investment advisors, insurance and securities brokers, , money changers, and mutual funds. Bahrain has made its position as a banking hub for whole of the Middle-East, particularly since Islamic Banking was introduced.
  1. Construction Agency: Bahrain is witnessing huge inflows of investment in the construction industry since the past couple of years. This sector makes up for almost 7.5% of GDP out of the total financial activity. Thus, if you are planning to establish a business in the construction sector here, we recommend you to seek professional guidance for company formation in Bahrain. 
  1. Real Estate: With increasing population, the requirement for both official and residential spaces goes up. This sector boomed in the kingdom as tourism has been thriving and hence, there was a rising demand for space; this trend is likely to stay in 2019 as well. As per data, the Real Estate sector in Bahrain has been fairly sustainable and offers attractively high returns. By getting into the Real Estate in Bahrain, the investors can access a new, much wider market that offers an array of prospects.
  1. Hospitality: By last year end, Bahrain saw a rise in demand in the hospitality and tourism industries. As a matter of fact, the GCC hospitality industry is preparing to gain momentum and growth after a break because of the falling oil prices. This year, the oil prices are expected to recover; also, Bahrain is going to welcome a new chapter of its economy’s upward swing and prosperity, especially in the hospitality sector. With many forthcoming mega-events, boost in tourist traffic, various regulatory initiatives and other efforts by the government, especially towards the tourism and hospitality sector, this sector’s growth and productivity is quite high.
  1. Retailing: The retailing industry witnessed a boom last year and it seems to be growing at a speed because of various factors. The increase in tourism, the upsurge in infrastructure projects, low cost of living here obviously added to reasons for having more retail stores. Therefore, retailing industry has seen unprecedented development in the recent past in Bahrain, and it shows no signals of slowing down in 2019.
  1. Event planning: With several global players entering the Bahrain market, hosting a conference or an event requires careful planning and expertise; therefore, setting up an event planning company in the Kingdom is another top business opportunity that can be explored.

If you are looking for assistance in setting up a business or for company formation in Bahrain, we would be glad to assist you in providing all the latest information and knowledge regarding the business trends in Bahrain. Also, for getting accounting services in Bahrain, get in touch with us, and we will be happy to help!

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Six Must-Do’s to launch your Business Successfully in UAE in 2019
  • Article, U.A.E

Six Must-Do’s to launch your Business Successfully in UAE in 2019

UAE being an ultimate and attractive shopping destination, several entrepreneurs dream of setting up a thriving business in the Kingdom. But at times, if the investors lack the required ground work and networking, then they can fail in their efforts. Most business owners prefer DMCC company formation as the DMCC ranks as world’s top and most-preferred free zone. However, it’s important to step forward with caution and impeccable preparation.

So how can you launch a business successfully in the UAE? We have collated six steps for you, which can enable you in giving your best shot at new business setup in Dubai or UAE or if you have decided for company formation in Dubai.


Six Steps to set up a Successful Business in Dubai or UAE

1. A Comprehensive Plan

The first step is to make a detailed plan with business ideas about the particular industry you are planning to get into, your competitors, your business objective etc. Decide all milestones for all key tasks to be done and then work accordingly.

2. Know Your Market

The most important step before you step into any market is to know it in-depth. So, it’s advisable to spend time into thorough research to know the exact demand or requirement of the customers, the on-going trends, what are the dos and don’ts, etc. It’s best to research and then first your ideas so that you can understand your potential customers better.

3. Networking is the Answer to your Problems

Professional networking is another must-do if you want to go for company formation in Dubai. UAE and especially Dubai are places where citizens are social and love going out and meeting new people. Developing good contacts who can support you later, attending all major events, be it at a social or business level, can not only get you good advice and recommendations but also will act like advertising for your business. Also, striving to build a good network can lead to better business prospects, strategic partners in future who are in a position to help you in new business setup in Dubai or grow your business.

4. Financial Support

It is recommended to have excess finance forecasting at the beginning as it takes a while for a business to grow and start reaping profits. Take into account that you would need some time to spread awareness about your brand and make your footprint in the market, till then, you should be secure by having a good amount of working capital to back you up.

5. Marketing

Focusing more on your marketing plans will take you far for sure. It’s recommended to spend more on digital marketing as the UAE digital marketing data of 2018 shows that 9.38 out of 10 people are active on some social media forum and hence, digital marketing would definitely help in reaching out to more number of people.

6. Hiring the Best Fit

Hiring the right people would not only help in running your business, but also they help in its quicker growth. You will need a good mix of team who can give you the apt advice at the right time, who can work in the dynamic market of Dubai and UAE and help you launch and then grow your business.

7. Stay ahead of the game

There always will be many companies offering the same service; but you have a better chance to succeed only if you offer the top quality of products or services along with impeccable customer service. First, you should know your expertise, then you should apply it well to build your brand and gain experience and lastly, always think of how you can give something extra to your customers; only then you can surpass your competitors.

So, if new business setup in Dubai is on your mind, we at IMC, provide our support to budding entrepreneurs and companies who are looking for company formation in Dubai. To get solutions to all your queries, do contact us and we assure to assist you.

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Things to Know Before Outsourcing Accounting Services in Singapore
  • Article, Singapore

Things to Know Before Outsourcing Accounting Services in Singapore

Outsourcing accounting services in Singapore is an essential part of every business. As a business owner, you might feel stressed about handling every aspect of your business. Therefore, it is important for every entrepreneur to delegate their work in the right hands to enhance the performance of the business. In this article, we will give you some tips to ease your task of outsourcing accounting services in Singapore.

Things to Keep in Mind while Outsourcing Accounting Services in Singapore

1. Your Needs
Before establishing your business in Singapore, you must know what your requirements are. The selection of your accounting services will depend upon your business. Like if your business is Goods and Services Tax (GST) registered, accounting will be done accordingly and GST returns have to be filed timely.
 
2. Budget
Budget is always an important criterion before outsourcing the accounting services. You must do a good market research and shortlist a few accounting professionals and compare their prices along with their experience. Go through their websites and check the services they provide. Also, look if they clearly provide the contact details because accounting services require fast response.
 
The Top 25 Places for the Best Bookkeeping in Singapore READ MORE
 
3. Consider If Outsourcing Is a Good Investment
Outsourcing any service in a business thoroughly depends on the mindset of the businessmen and the requirements of his business. When you outsource accounting services, you do pay a good amount to them but along with that, you get the depth of their knowledge and experience. By outsourcing, you can also save yourselves from doing the routine tasks of your business and focus on the core business activities.
 
4. Have Discussions
Before outsourcing the accounting services, you must indulge in direct communication with the service provider. This will help them in better understanding your needs and clearing all your doubts. By having a few rounds of discussions, you will come to know about their professionalism and their competency to serve an entrepreneur like you.
 
5. Be Responsible and Aware
Being an entrepreneur, you may get many referrals of accountants and bookkeepers from your family and friends. They may have suggested you names based on their experience but it is not necessary that they will be able to serve your business needs as well. As a responsible entrepreneur, you must outsource the accounting services only after understanding the performance, history and background of the service provider.
 
6. Identify Their Methodology
Before selecting any accounting service provider, you must identify their methods and tools for accounting and bookkeeping. A good and advanced accounting service provider knows the technological advancements and systems that can be applied for accounting. You must understand how they file returns and analyze the receipts of the business. Evaluate their tools for managing financial records. Also, understand how they would manage the books of your business.
 
7. Align Other Outsourced Services with Your Business
Before outsourcing accounting services in Singapore, you must align your current business with other services of the business. By doing so, the new accountants and bookkeepers will know what services and practices will suit your business.
 
8. Select One Who Provides Services Beyond Meeting Regulatory Requirements
The selection of the accounting service provider must be done prudently. Only that accounting service provider must be selected who goes beyond meeting the statutory and contractual obligations. The service provider must be someone who is involved in your business at every stage and recommends you the ways through which you can improve the business strategies.

The above mentioned tips will help you find the best outsourced accounting service provider in Singapore. IMC Group provides the best incorporation services in Singapore.  We are well known for our expertise and professionalism in providing various other services to businesses like accounting services in Singapore, company secretary services in Singapore, etc. To avail our services and know our quotation, you can contact us by dropping us an email.

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Top Reasons to Set Up a Holding Company in Singapore in 2019
  • Article, Singapore

Top Reasons to Set Up a Holding Company in Singapore in 2019

Company formation in Singapore has many benefits. The strategically located country has been the hub for many business houses in Asia. Singapore is a prime location for trade and business and has a strong emerging economy, because of which many Investors prefer Singapore for setting up their holding company. In this article, we will list down the reasons why you must set up a holding company in Singapore.

Reasons to Set Up a Holding Company in Singapore

  • Economic Growth

The government policies in Singapore have always been in favour of businesses. Government has taken many initiatives to establish and promote start-ups. This has helped Singapore economy to grow at a rapid pace along with achieving economic stability.

  • Tax Rates

Singapore offers the most attractive and competent tax rates to businesses. The marginal tax rates in Singapore is as low as 17%. Furthermore, the effective tax rate can be lowered even more. Therefore, the tax benefits make Singapore the best place to establish your holding company.

  • No Double Taxation

The biggest benefit of setting up business in Singapore is the avoidance of double taxation. Singapore has signed double tax agreements with more than 40 countries across the world. This gives your business in Singapore an edge over global businesses because your business will not have the burden of double taxation.

  • Access to Skilled Workforce

Singapore has a large population of skilled and talented workforce. If your business requires any skills that are not available locally in Singapore then you can easily procure a visa for the talented manpower.

  • Relationship with Other Countries

Relationship with other countries plays a vital role while establishing a business in a country. Singapore has signed investment guarantee agreements with over 30 countries. Such agreements promote inflow of investment in the country and help the businesses in the country to prosper.

  • Ease of Doing Business

As per the rankings by the World Bank, Singapore is ranked among the top 3 economies of the world when it comes to ease of doing business. Singapore has been maintaining this record since the last 12 consecutive years. Moreover, the process of company registration in Singapore is relatively easier. If you are looking for company registration in Singapore, consider a professional firm like IMC Group who can not only assist you with company registration process but also extend support for accounting services in Singapore and taxation services in Singapore.

  • No Tax on Capital Gains

Investors having holding company in Singapore get the benefit of no tax on capital gains. Zero tax on capital gains and lower income tax rates makes Singapore an attractive place for the businesses to establish their holding companies in the country.

  • No Tax on Dividends

Any dividend paid in Singapore on or after January 1, 2008, shall be exempt from tax under the taxation system of the country. To simplify, the shareholders of the company shall not be taxed on the dividend income. Such exemptions are given to the shareholders to attract more investors in the country.

  • Incentives to the Holding Companies

In order to encourage multi-national companies to set up their headquarters in Singapore, the government of Singapore provides headquarter incentives to the holding companies. Other incentives that are available to the holding companies in Singapore include Pioneer Status or Development and Expansion Incentives.

  • Better Quality of Life

Every individual wants to live a good quality of life. Singapore provides excellent facilities and quality of life to the public. This gives a good reason to set up or relocate your businesses to Singapore.

Above mentioned are a few benefits of setting up a holding company in Singapore. For more details, get in touch with IMC Group.

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Process of Setting up a Foreign Company in Bahrain in 2019
  • Article, Bahrain

Process of Setting up a Foreign Company in Bahrain in 2019

A business-friendly country, Bahrain always welcomes foreign investors. Having an easy and streamlined procedure for foreigners to invest in the nation, Bahrain also offers them many added facilities while they establish their business. For foreign company registration in Bahrain, you should be aware of the country’s business environment. To do this, the first step is to find about the various types of business entities possible in the country, followed by how to incorporate a company, and then what is the required legal documentation. Seems like a lot of information to find? Worry not! In this article, we have collated all the important information that will help you to set up a company in Bahrain in 2019.

Steps to set up a Company in Bahrain

To start a legal business in Bahrain, there are various things you need to complete. As a first step, you need to find which all approvals you would need and then fill an Application Form for Commerce Registration in the Bahrain Investors Centre (BIC). Then with the guidance of a BIC representative, you have to visit the particular ministry and after paying a fee of BD 2 post gaining the needed approvals, you would have to submit the required legal documents. You must note that the registration process typically takes 1 to 5 business days. Here are the detailed steps to establish your company in Bahrain:

  1. Opt for a Legal Structure: The most important decision as an owner of a business is to decide a legal structure for the enterprise you are starting. This decision would affect how your business would be managed, what will be the company’s owner’s personal liability, and how the ownership would be held. You could opt out of the following legal structures:
  • Bahrain Shareholding Company (BSC – Open)
  • Bahrain Shareholding Company (BSC – Closed)
  • With Limited Liability Company (WLL)
  • Partnership Company
  • Simple Commandite
  • Commandite by Shares
  • Single Person Company (SPC)
  • Individual Establishment
  • Foreign Company Branch
  1. Finalizing a Company Name: A company name represents your products or services, brand and business forever; therefore, the ministry of Industry & Commerce (MOIC) has fixed certain guidelines to enable business owners search for the most apt company name. Investors should ideally recommend four business/company names; however, if any of the suggested names violate the guidelines, it would be rejected.
  2. Commercial Registration Papers: Commercial registration papers for companies are made at the Bahrain Investors Centre. But if it’s an individual enterprise, the papers will have to be made at the Ministry of Industry and Commerce Commercial Registration Directorate.
  3. Licensing and Approval: Some enterprises are given the commercial registration immediately from the Ministry of Industry and Commerce, but a few others might need a license/approval especially from over one government authority before getting a commercial registration.
Documents for starting a company in Bahrain
  • A duly-filled company registration application form
  • Draft of memorandum of association
  • A resolution from board of directors resolving to set up the company in Bahrain
  • Company representatives’ national ID card copies
  • Resumes of all partners
  • Lease agreement as a proof of the business’ commercial address

Bahrain is not only a thriving economy, but is also offering very beneficial opportunities and multiple avenues for setting up new businesses to investors. If you are looking for some professional help for getting foreign company registration in Bahrain, our team of expert business advisors will guide you at each step. Thinking of starting your own company in Bahrain? Do contact us and we would be pleased to help you!

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Tax Structure in the GCC
  • Article, Bahrain, Oman, Qatar, U.A.E

Tax Structure in the GCC

The Gulf Co-operation Council (‘GCC’) region is undoubtedly a very attractive jurisdiction for global investments mainly because of its favorable tax regimes. As per GCC’s diversification strategy and to decrease reliance on revenue from hydrocarbons, GCC nations have devoted to launch new indirect taxes and some other taxation reforms. But the developing GCC tax regimes throw up a challenge to all the foreign investors wanting to set up their presence in the GCC, or acquire a business, sell, or divest in the GCC.

In this article, we are going to give you an overview of the key taxes in the GCC.

Taxes in the GCC Region – An Overview

  1. Corporate Tax

Corporate tax is a direct tax that is levied on a company’s taxable profits. People not residing in the GCC nation could be subject to corporate income tax or may be withholding tax as per the local rules in the particular GCC country. The non-residents doing business in a GCC country having a permanent setup are subjected to corporate income tax; however, non-residents earning taxable income in that GCC country could be subject to the withholding tax.

Some GCC countries like the UAE and Bahrain enforce only corporate tax on businesses operating in the oil and gas field and foreign bank branches. In the KSA, Kuwait, and Qatar, corporate tax is applicable on the profit share that is attributable to the non-GCC shareholders of the domestic entity.

  1. Withholding Tax

Withholding tax is that tax, which is deducted at source on the specific payments done by a resident in the GCC nation to someone outside of that nation. Varying rates are applicable depending on what kind of payments is made. Bahrain and UAE do not impose this tax, but other GCC nations impose withholding taxes if a resident pays interest or dividends and royalties to a non-resident.

  1. Zakat

Zakat is a type of Islamic tax that has been only enforced in some GCC nations like the KSA and Kuwait as of now. In the KSA, Zakat is mandatory on the shareholders of local companies who could be Saudi or GCC nationals. This tax is to be paid by the local company and is applicable at the rate of 2.5% dependant on the higher of the adjusted net profits or the Zakat base that is attributable to the shareholders who could be Saudi or GCC citizens.

  1. VAT

A type of consumption tax that is imposed on goods and services supply and is charged typically on the value which gets added on each stage of the supply chain. The GCC countries implement this tax at a 5% standard rate. Every GCC nation can enact their own VAT legislation which will be based on some common principles. Till date, KSA and the UAE have implemented VAT on 1 January 2018. Then, Bahrain went on to implement VAT on 1 January 2019. While doing transaction planning, companies should evaluate the VAT effect of the asset transfer carefully and check if such VAT treatment is applicable on the transaction.

  1. Excise Tax

Known as the ‘sin tax’, excise tax is a type of indirect tax that is levied on particular goods that could be detrimental to health or environment. Till date, the KSA, the UAE, Qatar and Bahrain have implemented this tax on tobacco products at 100%, carbonated drinks at 50%, and energy drinks at 100%.

  1. Customs Duty

The GCC nations follow a unified customs duty regime and this duty is imposed basically at the first point when the goods are entering in the GCC. Imported goods are subjected to customs duty at the rate of 5% of the total cost, freight (‘CIF’) invoice value and insurance. But, some goods could be subject to customs duty at a much higher rate, while some other goods, are totally exempt.

  1. Transfer Taxes and Stamp Duty on Real Estate

Stamp duty is imposed in Oman and Bahrain on transferring or registering real estate. In the UAE, there is a registration fee when someone transfers ownership of land or shares in the companies holding real estate.

To conclude, the GCC countries have maintained minimal or zero taxes as it attracts investments in the region. However, announcing new taxes like VAT, the variance between local tax legislation and double tax treaties and the approach of tax authorities make it complex for global investors. But if you are a foreign investor who has business interests in this region, you should keep abreast of all the GCC tax developments and re-examine your management strategies of tax risk in the region.

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  • Article, India

India: A Complete Guide on Duties and Responsibilities of Directors

The Ministry of Corporate Affairs (MCA) has taken a few severe actions in regard to the directors of the company that involves DIN deactivation, show cause notices, strike off the companies, KYC, etc. These measures are taken in order to align Indian businesses with global standards. Therefore, it is the time when the Indian companies that are closely held by the family members, whether public or private, need to change their way of thinking and start complying with these rules and regulations. As per the Companies Act 2013, it is the responsibility of the board that the rules and regulation made under the act are followed and complied.

It has been discovered that the companies which have a transparent business policy and complied timely with the laws, have an edge over its competitors. In order to establish transparency, companies have to comply with the provisions of the law and follow the advice of professionals like auditors and company secretaries.

Directors are the backbone of any company. Any failure or default in obliging with their duties will not only lead to punishment or penalty but also lead to losses for shareholders and hamper the reputation of the company. Although most of the directors are loyal to their companies, they are not able to comply with the laws due to lack of awareness and knowledge.

In this article, we will guide you on the duties and responsibilities of the directors of the company.

 How Company is Different from Proprietorship or Partnership Firm

Let us have a look at some of the points that differentiate a company from proprietorship or partnership firm.

  1. A company is a separate legal entity.
  2. Company has limited liability.
  3. Company has perpetual succession and never dies unless there is a wound up.
  4. Company is an artificial person.
  5. Shares of the company can be transferred freely and easily.
  6. The directors or shareholders or members cannot claim themselves to be the owner of the company’s property.
  7. A company can sue and can be sued.
  8. A company has a dual relationship.
  9. Even though a company is not a citizen but it has its nationality and residence.

 

Board of Directors

A company performs its functions through shareholders and board of directors. The board of directors of a company looks after the business of the company, makes operational and strategic decisions and ensure that the company meets its statutory obligations. Board of directors can be said to be the backbone of the company as the overall performance of the company is dependent upon them. The directors are responsible for achieving the objectives of the company mentioned in its memorandum of association.

 Directors

As per section 2 (10) of the Companies Act 2013, the board of directors in a company is a collective body of the individual directors. Under section 2 (34) of the act, a director is a person who is appointed to the board of a company. The board of directors is a body of individuals who collectively take decisions to direct, supervise and control the functioning of a company. Section 149 of the Companies Act 2013, says that the board of directors of a company should comprise of individuals only. This means that no association, firm or body corporate can be appointed as a director. No one can assign the office of director to any other person under section 166 of the Companies Act 2013. Any assignment made would be void. This brings to the conclusion that in a company only individuals can be a director and such appointed director cannot assign his office.

 Importance of Directors

Directors represent the company. Even though the shareholders have the authority to decide on the appointment and removal of directors, it is the directors who run and manage the business. If a company does not comply with any provisions of the companies act, the company shall be liable for fine or penalty because of the board of directors. The board of directors can do anything which is beneficial for the company and within their powers. However, the board of directors cannot exercise any power which is restricted as per the provisions of the Companies Act 2013 or the memorandum or the articles of the company. To conclude, directors perform multiple roles in a company and the performance of the company is dependent on them.

 Duties and Responsibilities of Directors

Directors must ensure that the company is managed in the most efficient manner. They must use their powers wisely and delegate the responsibilities to CEO, CS, MD, etc. In the end, the responsibility of the company’s performance will be on the shoulders of the directors.

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A Brief Guide for Setting up an American Business in India
  • Article, India

A Brief Guide for Setting up an American Business in India

India is the world’s fastest growing democracy that is also free-market and provides profitable business opportunities for everyone, especially the American companies that offer the right products or services.  India’s future looks promising and it shows a potential for continued growth at the rate of 8-10% for the coming couple of years. Hence, this is the apt time for the U.S. companies to setup their businesses in the expanding Indian market and even for American companies doing business in India to make further growth plans.

But before that, you should answer these questions: Does your business possess a strategy suiting Indian market? Are you ready with a plan on how to enter and then do business in India? Do you know what corporate structure to follow and what entities are there for conducting business in India? Do you know the legal requirements of setting up a business in India?

How to do business in India?

India, being a diverse and complex as a country, one should take into consideration many factors such as language, regionalism, values, religion, etc when deciding to do business in India. Even one’s approach and behavior should be amended according to whom you are dealing with or addressing. Irrespective of the industry, all the investors and US companies doing business in India should be prepared to accept some differences in the way businesses operate in India and even the norms and regulations in which they function.

New opportunities for US companies

India announced comprehensive relaxations in January 2018 in foreign direct investment (FDI) regulations for single-brand retail and some other areas, along with permitting overseas carriers to obtain up to 49% of Air India to support speeding up its divestment. The objective was to eliminate barriers to global investment and aid the economy in faster development.

The cabinet committee on economic affairs (CCEA) has recently permitted 100% FDI in the sector of real estate broking and also permitted foreign institutional investors (FIIs) and foreign portfolio investors (FPIs) for investing in power exchanges via the primary market.

A lot of concentration being on infrastructure development, the government allocated Rs 5.97 lakh crore in 2018 budget for this sector with an objective to make over 80,000 km of roads till March 2022. India has taken many new initiatives in finance and the tax reforms are intended to bring in more investment, and also push the transformation towards a digital economy.

Points to consider for foreign investors and US companies doing business in India

Any global investor who is planning to start or set up a business in India should first opt for an apt business and corporate entity that is best-suited with its goals and also manages the liability and tax planning challenges. Foreign businesses planning to do business in India or American companies doing business in India should focus on various entry strategies in India and plan their corporate structuring so that they can save taxes as permitted by laws and also as per international tax treaties.

The global investors or shareholders should mandatorily seek proper government approvals before investing in India. As there are several steps to be performed before setting up a business in India, if you need assistance with company formation in India or foreign company registration in India, we at IMC, would be happy to help you in each step of the process.

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German Companies Looking at Investing in Dubai
  • Article, U.A.E

German Companies Looking at Investing in Dubai

The Middle East has been growing at double-digit growth rate and is a region boasting of some most diverse and lucrative markets in the world. German companies, which are typically used to structured, single-digit expansion rates in mature markets, operating in the Middle East though would be fascinating, but a challenging prospect. Also, demographically, Dubai and Middle East consist of some of the richest consumer segments throughout the world, who also possess a strong global outlook. Another benefit is that the government is investing hugely in infrastructure and its corporate environment is supported by younger workforce, who is more educated and technically-advanced. There are ample opportunities for German companies to consider Dubai and other Middle East markets, because they have huge long-term potential.

Dubai’s DMCC has opened a new office to enhance German business ties

Dubai Multi Commodities Centre (DMCC), which was conferred the title of “the global free zone of the year” last year, has recently announced that it would open a new representative office in Dusseldorf, Germany. The opening of this new office in one of Germany’s financial and trade centers will surely get many more European clients to DMCC’s doorstep.

It will provide an easier option to German businesses to form a company without the need to travel to Dubai. Looking at some data, in 2017, the non-oil trade done between Dubai and Germany had touched about $11 billion.

This move has been taken as per DMCC’s plan to take advantage of growing interest shown by German companies to look at better trade relations with Dubai.

Felix Neugart, who is the CEO of the German Emirati Joint Council for Industry & Commerce (AHK) was of the view that over the last few years, a strong connection has been built between the German and UAE business communities. The free zones in Dubai play a major role in bringing in global businesses into the UAE. The opening of a new DMCC office in Duesseldorf is a move to enhance the relations amid German industry circuit and the DMCC with its global business community. The new office is going to improve trade and will foster newer investment opportunities.

DMCC and German Arabian Advisory have also signed a memorandum of understanding (MoU) in 2016 to explore establishing an advisory service in Düsseldorf. This is also a part of DMCC’s endeavor to draw German businesses to setup their offices and presence in Dubai and further enhance their ties.

Some examples of German companies looking at investing in Dubai 

  • Germany’s Meilenstein has entered UAE market with an investment of $327mn: Meilenstein is a German real estate developing company, which has announced its entry into the real estate market of the UAE as it is coming up with eight projects to be built in various locations in Dubai, totaling to $327mn (AED1.2b).
  • Siemens is growing its reach in the Middle East with an investment of $500 million in Internet of Things (IoT): Siemens, a German multinational, is getting in the Middle East by investing almost $500 million in the digital space spread over the coming three years. Siemens is planning to build a couple of new IoT facilities in Dubai and Abu Dhabi.

If you think it is a good prospect for company formation in Dubai, but don’t know how to go about it, leave it on our experts. Get in touch with our professionals and we would assist you in each step.

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German Businesses Plan to Invest in Indian High-Tech Market
  • Article

German Businesses Plan to Invest in Indian High-Tech Market

German companies are seeking to invest and do company formation in India in the High-­Tech market, as per a study conducted by Federation of Indian Chambers of Commerce and Industry (FICCI), Embassy of India and Ernst & Young. This alliance will boost trade relations and augment investments between these two countries while anchoring Prime Minister, Narendra Modi’s ‘Make in India’ initiative.

Siddharth Birla, who was the Immediate Past President of FICCI and Chairman of Xpro India Limited was of the view that there was a requirement to expand India’s contribution of high-tech manufacturing and also orient R&D to achieve higher levels of economic growth.

Germany being a technology leader, it can very well complement India’s goals in the field of Hi-­tech manufacturing. This collaboration would include sectors such as Electronic System Design and Manufacturing (ESDM), IT, automotive, photonics, civil aviation and airports, water, transportation infrastructure, heavy engineering, renewable energy, biotechnology, space and defense manufacturing and pharmaceuticals.

India and Germany’s partnership is expected to benefit both these countries while also improving their mutual growth. Germany’s high-­tech features and know-how and India’s young and skilled man­power can get together to bring the best possible results.

The key highlights of the report were as follows:

  1. German businesses are showing inclination to invest in the Indian High­-Tech market.
  2. India is now one of the highest performing nations among the BRIC markets.
  3. India has a huge market readiness for High­-Tech products.
  4. The collaboration of India and Germany in the field of High­-Tech manufacturing can augment the ‘Make in India’ initiative in a big way.
  5. Various challenges are affecting investment decisions of German organizations.
  6. There are seven High­-Tech verticals that offer greatest opportunity for Indo­-German partnership.
  7. German businesses can benefit from strong capabilities that India has in the IT and Space sector.
  8. Government of India has been taking various initiatives in FDI and streamlining regulations to set up businesses and infrastructure, and this can majorly influence the business especially in High­-Tech sectors.

India is an alluring market for German start-ups and vice versa. To add to it, Invest India, which is Government of India’s investment promotion and facilitation agency, is sending the best 10 promising start-ups to CeBit (scheduled from June 11 to 15) this year.

Other programs aiming Indian and German start-ups

GINSEP:  The German Start-ups Association launched the German Indian Start-up Exchange Program (GINSEP) in 2017 with an objective to promote a healthy exchange among the start-up ecosystem and encourage the Indian and German start-ups to get an easy access to the other nation.

Indo-German Young Leaders Forum (IGYLF):  Indo-German Young Leaders Forum is a platform of bilateral exchange meant for exceptional minds from both countries. It aims to promote an exchange between young leaders of India and Germany – be it from politics, business, science, culture or media – thus establishing long-term networks.

StartUp AsiaBerlin: The StartUp AsiaBerlin platform was set up by the State of Berlin and has organized several workshops on how different ecosystem can collaborate, which was attended by stakeholders from both Asia and Germany.

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