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Millionaires are on the Move to Singapore – The Country Ranks 3rd in Attracting High Net Worth Individuals
  • Article, Singapore

Millionaires are on the Move to Singapore – The Country Ranks 3rd in Attracting High Net Worth Individuals

While the COVID-19 pandemic has significantly disrupted the economies around the world, there is a section of the society that has seen a record rise in their wealth during this time. We are talking about the super-rich segment of the population whose wealth has increased exponentially during this period.

According to The Wealth Report 2022 by Knight Frank, the global population of Ultra High Net Worth Individuals (UHNWIs) increased by 9.3% in 2021. These are the individuals having net assets of US $ 30 million (SG $ 40.7 million) or more.

In Singapore alone, the population of ultra high net worth individuals grew by 8.6% to 4206 in 2021 which is up from 3874 in the year 2020.

Another report by Knight Frank indicates that Singapore’s population of ultra high net worth individuals is expected to increase by almost 300% by 2026.

In fact, this has also been affirmed by Forbes List of Singapore’s Richest in 2021 which states that the consolidated net worth of Singapore’s 50 most affluent individuals rose to the US $ 208 billion in 2021 which is a whopping 25% increase compared to last year.

Not just Singapore, entire Asia is seeing a hike in the ultra-wealthy population. In 2021, Asia witnessed a 7.2% hike in ultra-wealthy population. Furthermore, Asia is anticipated to surpass Europe as the second-largest wealth hub by 2026.

HNWI Migration Trends in 2022

The 2022 Henley Global Citizens Report, which tracks global private wealth and investment migration trends states that Asia’s prime hub of affluence – Singapore continues to attract millionaires from other parts of Asia and across the globe with an expected net inflow of 2800 HNWIs this year. This is close to an 87% increase compared to 2019’s figure of 1500.

At present, among the top 10 countries with the highest inflow of high net worth individuals, Singapore ranks at 3rd position, after the UAE and Australia.

It is anticipated that Singapore’s high net worth population can grow by 3.4% in 2022. This also means, that nearly a quarter of the Singapore population will be represented by wealthy individuals.

It is highly likely that Singapore being the biggest wealth management centre in Asia, it will continue to attract many more ultra wealthy individuals to relocate to the island nation in the near future.

Why are Rich Migrating to Singapore?

The top drawing factors for ultra rich individuals to migrate to Singapore are political stability, economic stability, a plethora of business-friendly incentives, tax efficiencies, modern infrastructure, a pro-business environment, a strong legal system, a higher standard of living and an advanced healthcare system, among others.

Besides, Singapore’s strategic geographical location acts as the gateway to cities in the Asia-Pacific making it an even more attractive destination for many. This has also led to a concentration of wealth and a growing ultra rich population in Singapore.

As a result, more and more people are keen to explore the abundant opportunities present in this island country.

Singapore is also the first preference for several HNIs in other parts of Asia as they provide a reliable infrastructure for wealth preservation. Furthermore, Singapore is a preferred choice for digital entrepreneurs and family offices owing to its easy access to world-class financial advisors.

How Will This Impact Businesses?

With a high concentration of HNWIs in Singapore, there will be strong growth in the overall economy.

Some of the fastest growing sectors in Singapore in 2022 include banking & finance, Software & Technology, Healthcare, manufacturing, Artificial Intelligence, Data Science & Analytics, Biomedical & Biotechnology, Mental health, Tourism & Hospitality, and Digital & Internet Marketing.

Owing to the tremendous growth, company formation in Singapore is on a rise.

Thinking how to register a company in Singapore? Reach out to us for a free consultation on Singapore company formation or to start your own single family office in Singapore.

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How Artificial Intelligence Can Transform the Audit Process
  • Article

How Artificial Intelligence Can Transform the Audit Process?

The use of Artificial Intelligence is so deeply integrated into our lives that we don’t even realize that we are using it. Right from booking a cab through the mobile app to searching for directions on Google Maps, getting customized feeds from social media platforms, using face ID for unlocking our phones and making e-payments from the comfort of our homes, we are making use of Artificial Intelligence enabled services to make our lives easier.

But have you wondered about the use of Artificial Intelligence beyond that?

Today, Artificial Intelligence is becoming a game-changer for conducting the audit process. With the help of cloud accounting services, it is transforming the way auditing is done. Let us find out how?

Facilitate Risk-Based Assurance

Artificial Intelligence uses a risk-based mechanism that has the potential to identify anomalies based on risk and not rules. The AI-based tool leverages algorithms to identify emerging risks and flags transactions that deviate from the standard set. It offers an efficient way to report data, identify errors or unusual activities and report risks to clients.

This could further help auditors determine where to focus and test. AI helps save their valuable time and redirect their attention on critical issues.

Considering the volume of data flowing through most companies, it can be otherwise challenging for auditors to do this manually. AI can aid auditors to take a nuanced look at transactions that appear unusual. For example, the AI tool can efficiently identify unusual sales reversals happening in accounts receivable ledgers. It can indicate auditors to focus there.

Provide Actionable Information

AI enables the processing of large amounts of data and provides results based on trends, behaviour, patterns and secondary data. It can analyze a full population of data and provide actionable information that can help auditors mitigate the risk that they wouldn’t have even considered.

With the help of sophisticated machine learning-based models, auditors can significantly improve fraud detection. For example, AI can be used by auditors to review contracts. It enables auditors to review a larger number of contracts in a considerably shorter time span as compared to a traditional manual review.

In fact, in a recent pilot activity, AI tools have established greater accuracy to extract information from lease contracts using pre-selected criteria with a higher level of precision than the average human reviewer is capable of.

Streamline Processes

AI has the ability to streamline processes by automating everyday tasks and analyzing a large volume of data. AI implementation can significantly improve processes and working standards.

For example, auditors often have to check for management approvals on invoices over a certain amount, if there is a company policy. AI solutions can prove to be a boon by reviewing transactions and flagging those that violate pre-set rules.

Audit is a data-driven service and shifting repetitive tasks to machines can help save a lot of time and eliminate accounting errors. This leads to a better quality of services as auditors will have more time to devote to value-adding tasks in the audit process.

If you look at the recent reports, Artificial Intelligence in the accounting industry is expected to grow at a CAGR of 30% between 2022 and 2027. As a result, there will be a huge change in the auditing practices as firms will look at ways to streamline processes through more efficient ways of operating.

Managing Information Across Teams

AI will revolutionize the way auditors store and locate information. A metadata-driven document management platform can help store all the documents in a single place for easy access by all the audit team members. It will enable the audit team to collaborate in real-time and work on the same file to ensure that everyone is on the same page. This will also ensure that the team does not end up wasting time in searching for the latest version of a document and trying to locate the missing files or exchanging endless email chains.

Furthermore, with improved search capabilities, they can easily access the information they want with a help of a few clicks.

Wrapping It Up

Artificial Intelligence technology is making it possible for auditors to work smarter and better by automating mundane and repetitive tasks and optimizing their time. The time saved can be diverted to take on more challenging and important work for clients and to interact with CEOs, CFOs and company boards, thereby adding more value to the overall audit process.

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Revised Golden Visa Rules: UAE Makes 10-Year Residence Scheme More Investor and Family-Friendly
  • Article, U.A.E

Revised Golden Visa Rules: UAE Makes 10-Year Residence Scheme More Investor and Family-Friendly

Overview

The UAE Golden Visa programme paves the path to citizenship for international talents who like to invest, work, study and excel in key sectors and speciality areas in the Emirates.

The Golden Visa is available for international investors and top global talents and provides them with visas for up to 10 years duration. The top talents include people and researchers in the fields of science and technology including doctors, specialists, scientists and inventors. The visa is also available for talents from the creative arts and sporting fields, and business owners and real estate investors in UAE can also apply for this visa. The golden visa process is however different from applying for a normal residency permit or Emarati citizenship and outsourcing a professional pro services in Dubai UAE is often seen to hasten the golden visa dream to fruition.

UAE today can boast of several high-tech and high-growth fields that can provide ample opportunities for the global top talents to grow, prosper and contribute to the welfare of mankind and the society at large through innovative industrial applications, sophisticated healthcare systems, most advanced high tech agricultural techniques, robust financial solutions and smart start-up ecosystems based on industry 4.0.

The Dubai UAE is a dream home for many global talents owing to its rich cultural heritage, diverse population, huge promise for future growth, safety and political stability and high standard of living. The emirate has also lured many reputed international business houses to come, settle and invest in Dubai company incorporation.

Lots of people have so far been awarded a golden visa and a good number of high school students securing high grades with 95% and above were granted golden visas along with their parents and siblings. Around 44,000 visas were issued in Dubai in the first year only.

What is the golden visa system?

In 2020, the UAE implemented a new system for long-term residence visas to enable and attract foreigners to live, work and study in the country without the need of a national sponsor and with 100% ownership of their business on the UAE’s mainland.

These visas are issued for 5 or 10 years and are automatically renewable on expiry.

Golden visa is granted to investors engaged in business set up in Dubai UAE, entrepreneurs, specialized talents and researchers in various fields of science, technology and knowledge and bright students with promising and innovative scientific capabilities.

The golden visa UAE eligibility criteria were simplified in April 2022 and the categories of people eligible to apply for the long-term 10-year visa have been expanded under a new set of executive regulations.

What are the benefits of this newly revised golden visa system?

The UAE Cabinet, headed by Sheikh Mohammed bin Rashid Al Maktoum, the Vice President, Prime Minister and Ruler of Dubai, has introduced the new set of executive regulations of the Federal Decree-Law on Entry and Residence of Foreigners for solidifying the country’s position as the most attractive to live, work, and invest.

Investors, entrepreneurs, exceptional talents, scientists and professionals, outstanding students and graduates, humanitarian pioneers, and frontline heroes, who fulfil certain eligibility parameters will qualify for the 10-year golden visas.

Besides granting the stay of the above-mentioned beneficiaries for 10 years, the new regulations provide additional benefits of Golden Visa in UAE allowing the visa holder to sponsor his/ her family members, including spouse and children regardless of their age. The new rules will also enable the visa holders to sponsor domestic support services without putting any restrictions on the numbers.

Secondly, the previous restriction on the maximum duration of stay outside the UAE for the Golden Residence to remain valid has been scrapped.

The revised visa rules allow the family members to stay in the UAE if the original holder of the Golden visa passes away, and till the expiry of the visa.

What are the different types of visas that one can apply for?

The types of golden visas one can apply for to obtain long residency status in the UAE along with the golden visa UAE eligibility criteria are mentioned below.

Golden Residence for Scientists is awarded to the highly successful scientists and researchers based on recommendations from the Emirates Scientists Council. Possession of a PhD or Master’s degree in engineering, technology, life sciences and natural sciences from the top universities across the world is mandatory including notable achievements in the field of research.

Golden Residence for Professionals is given to highly skilled workers with educational qualifications and professional experience in all disciplines and must have a valid employment contract in the UAE and should be classified in the first or second occupational level as per the Ministry of Human Resources and Emiratisation classification in line with the International Standard of Classification of Occupations ISCO by the International Labor Organization. Possession of a Bachelor’s degree or equivalent is a must with a minimum monthly salary of AED 30,000.

Golden Residence for Exceptional Talents is granted to the top talents from the fields of arts, sports, digital technology etc. and solely based on the talent of the individual irrespective of educational qualification or employment status or monthly salary or professional level. A recommendation and approval by a federal or local government entity are mandatory.

Golden Residence for Real Estate Investors is awarded to the Real estate investors if they purchase a property worth a minimum of AED 2 million. Investors are allowed to purchase the property with a loan from specific local banks.

Golden Residence for Entrepreneurs is issued when an entrepreneur is the owner or a partner in a startup registered under SME category with yearly revenue of not less than AED 1 million and the approval for the startup idea must be given by an official business incubator or the Ministry of Economy or the competent local authorities.

The owner or partner of a business project duly approved by the Ministry of Economy that has been sold at a minimum of AED 7 million is also treated as credible for Golden Residence.

Golden Visa for Outstanding Students and Graduates are meant for students with high academic performance in UAE secondary schools, and outstanding graduates from UAE universities and the top 100 universities globally fulfilling certain specific criteria such as CGPA.

The new regulations have rolled out new 5-years residence tracks to attract talented and skilled professionals, freelancers, investors and entrepreneurs. Skilled employees from the first, second or third occupational level and possessing a Bachelor’s degree or equivalent with an annual salary of AED 15,000 minimum are entitled to stay in UAE for five years. If you don’t qualify under the UAE Golden Visa for Investors, you can still reside in the UAE for five years as a freelancer or self-employed without any sponsor or employer. However, a freelancer or self-employed person must have a minimum Bachelor’s degree or specialised diploma, with an annual income of AED 360,000minimum from self-employment for the last two consecutive years.

The cost of a 10-year golden visa is roughly AED 1150 plus AED 1150 for application & issuance. The 5-year green residence schemes usually cost around AED 650 plus another AED 650 for application and issuance.

What is the procedure for applying for a golden visa?

The procedure detailing How to Apply for a UAE Golden Visa is explained below.

You need to log onto the Federal Authority for Identity and Citizenship (ICA) smart services website and access the golden services from the menu at the top.

If you belong to any of the eligible categories of golden visa and have not been nominated so far, you need to click on the “Start Service’ under “Visa – Golden Visa – Nomination Request for Golden Residence – New Request” for accessing the online form for submitting your details and the category under which you wish to be nominated.

Unified Identification Number (UID), the six-digit number assigned to you while entering the UAE also needs to be mentioned in the form. Filling up this form may be tricky at times and seeking help and advice from a pro services in Dubai is usually recommended.

A dedicated team has now been formed with representatives from the Dubai Immigration service, the General Directorate of Residency and Foreigners Affairs for quick and efficient handling of all applications for golden visas and other important residency visas. Named “You are Special”, the service can be accessed 24×7 online or by calling a phone number.

THE TAKEAWAY

The recent amendments to the golden visa rules updated the entire Entry and Residence scheme including long term residence visas with simplified requirements and many additional benefits. Under these revised visa rules, no host or sponsor is now required. The objective of this new scheme is to enhance the competitiveness of the nation, attract foreign investors for Dubai company incorporation and stabilize the job market.

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Why It’s Better to Outsource Company Secretarial Services
  • Article, Singapore

Why It’s Better to Outsource Company Secretarial Services

There is no doubting that corporate secretary is another of the crucial posts that should not be left unfilled in the smooth operation of a business. Even though professional corporate secretary doesn’t really make decisions, they guarantee that every decision made has been reported to the appropriate individual. Actually, their functions and responsibilities are extensive, and they play a critical part in the firm’s efficient running.

When you have taken the decision to export your business’s secretarial responsibilities, you must make an intelligent decision. You don’t want to employ a firm just to come to repent your decision later. In this post, we will discuss the blunders you should avoid while outsourcing business secretarial services.

Some Mistakes You Should Avoid When Employing Company Secretary Services Singapore

Below are a couple of things to keep in mind when you are exporting your firm’s corporate secretarial responsibilities.

Putting Your Trust in any Inexperienced Agency:

Many managers are prone to depending on the very initial corporate secretarial firm they come across simply because people are in the rush. When you have been performing this, it is indeed time to changing company secretary in Singapore plan. Corporate secretarial firms are not all made equal, and thus the grade of services provided may differ from company to company. Utilise the assistance of an expert corporate secretarial firm to obtain a greater return upon your investment.

Choosing the Most Cost-Effective Service:

With many more service suppliers to pick from, it may be difficult for anyone to select the finest one. Some businesses charge cheap rates to entice naïve customers. Even if you are having financial difficulties, you shouldn’t ever focus your search just on price.

This is usually a great idea to investigate several agencies and see what they want to provide. Rather of choosing a service supplier just on pricing, spend a bit of time researching essential factors such as expertise, services offered, and reputation, to name a few. Your research should not end there because you have to choose an agency which best fits with the aspirations and goals of your organisation.

The Value of Singapore secretarial compliances for a private limited company

Every firm has secretarial chores which should be performed by competent employees to achieve optimal business efficiency. Yet, keeping up with these responsibilities may be difficult when you are operating a complete firm on your own.

For example, the Corporations Act requires companies to produce certain paperwork by specified timeframes, which would be the job of corporate secretaries. Businessmen may easily fix this problem by outsourcing corporate secretarial solutions that will free up their time to concentrate on other important company activities.

Accurateness:

Running a business is a difficult endeavour wherein the efficiency and correctness of the overall process are important. Companies can benefit from correct and timely management of vital business tasks by exporting secretarial solutions. As a consequence, any possible legal difficulties are avoided because all legal procedures are completed on time. Therefore, you didn’t have to think about handling the filing of finance or taxes reports because experienced corporate secretarial compliances in Singapore may simply manage it.

Experience and knowledge:

While running a business, particularly a new one, you need every expert assistance you can obtain. It is obvious that every organisation may now engage skilled personnel with experience in addressing various administrative concerns. However, this is very viable to outsource secretarial services since you would be working with a certified, skilled, and experienced corporate secretary.

Conclusion

Exporting corporate secretarial responsibilities is another of the finest moves you would ever make throughout your quest for business success. You must take caution while selecting a service supplier, just like you would with anything else. You will never repent your decision if you take this move.

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Top Three Mistakes While Managing Accounting Yourself
  • Article, Singapore

Top Three Mistakes While Managing Accounting Yourself

Business owners have to make tough choices daily. It becomes crucial when managing the existing resources and strict deadlines. Hence, business owners go for addressing critical tasks like accounting and bookkeeping on their own. However, this can easily backfire as, technically, the business owners or entrepreneurs are not accounting professionals. The solution is a quick association with the accounting services in Singapore for full-proof accounting work for budding businesses. Let us understand business owners’ critical mistakes while managing all the accounts alone.

Top Three Mistakes While Managing Business Accounting Yourself:

Accounting errors may be substantial or minor. Some of the top mistakes that business owners make while managing the business accounting themselves include:

  1. Proofing and reconciliation issues: Bookkeeping is crucial to keep yourself on the top of the account dealings. Whether a tax return or the bank statements, expense receipts, profits, etc., proofing errors is unbearable for any business. These can overshadow the dedicated account management and may even lead to wrong payments or duplicate payments.

    Reconciliations become important to check the status of customer payments and catch any possible bank errors. Furthermore, in the growing digitization age, it is crucial to ensure that there is no fraudulent activity through accounting systems. Further, it helps business owners keep an eye on how much cash or credit is left in the company’s accounts. Accounting professionals can effortlessly manage all these crucial proofing and reconciliations. Their teams have experience managing different business accounting and hence know the possible loopholes.

    2. Unrecorded expenses: While using a dedicated accounting system for your business, it records the possible expenses as soon as it is deducted from the accounts. Hence, it is easy to keep track of the recorded expenses made digitally or through cash receipts. The unrecorded expenses like paying through personal accounts at different places, which is quite common in startups, are unnoticed by the eyes of the accounting system.

    It all comes down to managing all the real-time expenses at the right time in the accounting system. The accounting professionals prefer to keep track of every single penny to eliminate any proofing or reconciliation issues afterward. Business owners usually consider the expenses based on the amount and forget to consider the small expenses due to busy schedules. Hence, it becomes important to get connected to the accounting and bookkeeping services that records all the business expenses to avoid any last-minute errors.

    3. Data issues: Any digital system like an accounting system used by the business owners is as good as the quality data entered in it. A busy business owner is subject to human errors when it comes to entering the accounting data into the system. These wrong entries lay the base for multiple errors in the accounting and bookkeeping of the business.

    Professional accounting and bookkeeping service providers understand the need for correct and timely data entries. On the other hand, it is difficult for business owners to seek specialized training in accounting and bookkeeping while there is a lot to manage. Hence, to eradicate multiple issues in business accounting, it is recommended to seek the help of professionals. Multiple accounting software considers the bills, proofs, etc., while entering data or offers direct export options for eliminating human errors. Thus, it becomes easy to eliminate the delayed entries or wrong entries.

Conclusion – Hiring Best Accounting and Bookkeeping Services Is Best Option:

Experienced accounting professionals should be entitled to the business’ accounting and bookkeeping services. It is easy to get in touch with the outsourced accounting services in Singapore, which offers accounting and bookkeeping services at affordable prices to different businesses. The peace of mind provided by these accounting experts is not to miss, which helps business owners focus on their strengths.

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Looking For an Online E-Commerce Venture in Dubai: Here are Some Key Facts You Need to Know
  • Article, U.A.E

Looking For an Online E-Commerce Venture in Dubai: Here are Some Key Facts You Need to Know

An Overview

The global COVID-19 pandemic completely transformed the way we lived and shopped before and spurred the rapid growth of online shopping, with nearly three out of four consumers shopping more online than they did before the pandemic. Most online shoppers are also quickly moving away from cash and opting for contactless and digital payment experiences and customers made many purchases from online businesses that are not located in their own country. These are some key insights that would help aspiring e-tailers and businesses to leverage the shift towards online shopping and deliver convenient, fast and secure transactions after an e-commerce business set up in Dubai.

According to data and surveys conducted; FMCG, healthcare, apparel, groceries and electronic items have seen the maximum surge in online shopping in Dubai UAE. The rapidly growing e-commerce space has been primarily driven by high internet penetration and the more disposable income of people living in Dubai. The tech-savvy young population possessing the latest digital devices is also helping this e-commerce space to thrive in Dubai and other emirates.

As online electronic purchase has become the new norm, the growth of e-Commerce in Dubai UAE has become imperative due to the government’s initiatives toward the digitization of trade. Dubai is pivotally positioned on the international trade map and highly equipped with extensive high-tech logistics networks helping Dubai online business opportunities grow in the e-commerce space.

E-commerce in the UAE totalled more than $8 billion in 2021 and is expected to surpass $12 billion by 2025, with 60% online shoppers based in Dubai, a report revealed.

Why should you start an E-commerce business in Dubai?

A Booming Market

The UAE outperforms its GCC peers in e-commerce revenue even though it is less populous than some other GCC nations. The world’s most frequent online shoppers are from Dubai and more than 80% of its population make product shopping online.

Support from the Government

The Dubai government launched the Dubai E-Commerce Strategy to make the city a global logistics hub for the Middle East region and contribute AED12 billion to the economy by 2023. The strategy focuses on attracting more foreign direct investments through new e-commerce business-set-up-in-Dubai  and reducing the activity costs by 20% through optimization of storage, customs fees, VAT and transportation.

Robust Transport Infrastructure

Dubai has today the world’s 3rd-best ranked transport infrastructure with best-in-class airports, seaports, roads and bridges.

Availability of Free Zones

More than 30 free zones are operating in Dubai where multiple benefits are offered to new businesses including easy business set-up and early issuance of Dubai-free-zone-E-Commerce-license, lower operating costs, reduced tax rates etc. These free zones also provide opportunities for professional networking.

What are the process steps for setting up an E-commerce business in Dubai?

You can set up a company in Dubai either in-person or online. Following are the steps you need to go through while carrying out E-Commerce-business-setup-in-Dubai.

1- Do Market Research to identify potential customers, their requirements and products on demand.

2- Decide on your licence type based on your business activities, structure, residency status etc.

3- Choose your operating location either in a free zone or mainland Dubai. You do not need a physical office to start an e-commerce business but need an operating location for license purposes. A free zone license provides several added advantages.

4- Register your Company Name with the Department of Economic Development (DED), Dubai.

5- Apply for an e-commerce license from DED that allows you to carry out multiple businesses through social media networks.

6- Apply for an Initial Approval Certificate as a NOC which is non-renewable and gives you business clearance for the first six months.

7- Design and develop your website which should be user friendly and secure after registering a domain for your website.

8- Establish a Payment Processing Portal on your website in compliance with Telecom Regulatory Authority (TRA) guidelines for electronic transactions.

9- Plan and implement logistics support for the customers of your e-commerce business. You can do it on your own or hire third-party logistics services.

10- Register with a port and customs authority to get the importer’s code and deal in imported goods, if necessary.

11- Open a Bank Account to handle all your business-related financial transactions.

How many types of E-commerce licenses are available in Dubai?

Several E-Commerce Licenses in Dubai.  have been introduced by the DED and include

1. E-Trader License usually issued to UAE and GCC nationals residing in Dubai and engaged in providing online services or selling online products. This one is a single ownership license and does not need a physical office. The eTrader cannot open a shop and in the event of any legal dispute, the licensee alone is held responsible.

2. Portal License is issued to non-UAE nationals and allows linking of buyers and sellers using website listing products and services.

3. Virtual Company License is a relatively new license type allowing foreign investors and UAE non-residents to take up commercial activities including computer programming and consultancy, designing, and services related to printing and advertising.

What is the procedure for getting an E-commerce license in Dubai?

Selling physical products through a web shop is a regulated activity in the UAE and you need a license. However, if you sell digital products, no additional license from DED is needed if you set up a right free zone company.

Following are the steps to get an e-commerce license in Dubai.

  • Apply to DED Trader website with the required documents
  • Make a DED trader account
  • Do Registration
  • Make the Payment
  • Obtain the License

There are some legalities, however, including the owner’s minimum age of 21, possession of a valid Emirates ID, license renewal within one month of expiry.

What are the documents needed for an E-commerce license in Dubai?

The following documents are required to the submitted while applying for an e-commerce license.

  • Filled-in application form
  • Copies of Passport/visa of the shareholders
  • Identity and address proof of the business owners and shareholders
  • Copy of sponsor’s passport/ Emirates ID
  • Local service agreement/ Civil works agreement
  • NOC from the relevant authority
  • Memorandum & Articles of Association

What are the business activities allowed under DED E-trader license?

Dubai-online-business-opportunities in the e-commerce space under the E-Trader license include the following allowable e-Trading activities.

  • Recreational Events and Sports
  • Professional, Personal and Household Goods
  • Jewellery and Precious Stones
  • Apparel and Gifts
  • Media and Publications Materials
  • Equipment

What about the E-commerce licenses in the free zone?

Free zones have their own rules and regulations and are not usually permitted to carry out commercial activities in the wider UAE, the mainland and offshore. This restricts a trader from freely trading and selling products online and the e-trader needs to get a separate license from DED as well.

Though E-Commerce activities are allowed in some free zones, the scope is limited and involves only selling electronically without permission for retailing.

In the UAE, a free zone company with an E-Commerce activity usually acts as a middleman till such time you acquire a license from DED.

What is the Cost of an E-commerce License in Dubai?

The cost of an E-commerce license in Dubai depends on several factors as below.

  • The license type, either mainland or a free zone
  • Business Size
  • Total office space including areas for commercial use
  • Number of visa applications
  • Business Type

The minimum e-commerce license cost is roughly AED 14K.

The Takeaway

The ‘e-trader’ scheme was introduced by DED for licensing online businesses established via various social media applications such as Instagram, SnapChat, Whatsapp or Facebook to enhance consumer confidence when shopping for products and services on social networking sites.

An e-commerce store is an online-business-in-Dubai-without-investment and holds great promise provided you have the networking and interactive skills and can build a great website with innovative features.

 

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What are Seven Common and Costly Mistakes to Avoid While Registering Trademarks
  • Article

What are Seven Common and Costly Mistakes to Avoid While Registering Trademarks?

Overview

We all make big plans while starting our new business and meticulously carry out research on various aspects of business, often forgetting one of the critical aspects of branding our business and protecting intellectual property (IP) from competitors by establishing a trademark.Why is it crucial to register a trademark?

Trademark identifies your business through unique symbols, names, phrases, logos and designs created to make your products and services original and distinct, helping consumers distinguish your offerings from those of your competitors. Being visible, a trademark allows customers to recognize your brand promptly in a crowded marketplace. McDonald’s Golden Arches logo is a living testimony to why it is important to register your trademark.

How to Register for a Trademark?

Presently trademark protection can be obtained through International trademark registration and by filing an application for registration with the trademark office and paying the required fees. Almost all countries have a trademark register today offering full trademark protection on successful registration and once trademarks rights are filed, they are protected for 7 to 20 years and can be renewed indefinitely.

Registering a trademark is a simple process, however, there are some common mistakes that many startups commit during application filing, documents submission and trademark usage. Following are the seven ‘must avoid’ trademark mistakes.

Wrong Assumptions of TM Symbol as Protection

We frequently see the ™ symbol on packages and also on the internet and assume that the products have a brand. However, this symbol is used when an application for a trademark has been filed with the trademark registry just indicating that a trademark application exists. It carries no legal meaning and offers no protection for your startup. You must complete the entire registration process and once the application is approved by the authorized registry, use the R symbol, ® for enjoying protection from infringement under the Trademark laws.

Not Carrying Out Trademark Search

This is perhaps the most deadly mistake a startup can commit as it becomes a double-edged sword. First, it can result in legal proceeds and costly infringement lawsuits if that trademark is already registered for something similar with another business entity. Second, it would mean a lot of wastage of money that you spend on the registration process including filing and attorney fees as the approval is never granted. Nowadays, Trademark Electronic Search System (TESS) is available where you can run a search of the current database to see if what you like to trademark is already in use.

Applying For the Wrong Trademark Class

There are many classes of trademarks that can be chosen based on the usage of the trademark for your products and services. Incorrect and wrongly chosen trademark class can be a frustrating mistake as it warrants application rejection. IP service providers handle thousands of trademarks and can help you overcome this issue.

Not Using Trademark in Commerce

Trademark registries want you to use your trademark for commercial activities such as selling your products and services and using it on your website before you file for registering the same. Simply stating that you are willing to register your trademark without any use in commerce may render your application rejected.

Non-Renewal of Trademark on Time

Losing track of the trademark renewal deadline is also a big mistake as a new application on expiry costs much more. Outsourced IP service providers can intimate you on time and every time ensuring timely renewal and money-saving.

Not Outsourcing IP Service Providers

Many startups wish to handle the Trademark registration process on their own and prefer not to outsource IP service providers for trademark registration. It can, however, be costly and time-consuming and may even fail to achieve the end objectives.

Trademarking a business is often complex with legalities involved and requires you to spend considerable time researching and fact-finding. IP service providers, on the other hand, are experts with years of professional experience and can critically review and analyze your trademark for assessing the success of registration before filing.

Not Securing and Protecting Trademark

Once a trademark application is approved by the registry, you need to secure and protect your trademark so that your competitors are prevented from using your name, logo or ideas. An IP service provider can be of great help who would deal with any infringements to your trademark legally. A Google Alert for your trademark name may also be set for security. Not investing in trademark protection can diminish the value of your business in the future. Trademark law is tricky and defies basic business logic and understanding at times. It is thus advocated you work with an IP service provider to bring your startup branding to fruition.

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Are you Looking to Venture into a Startup Business in Singapore? These 7 ideas can guide you through in 2022
  • Article, Singapore

Are you Looking to Venture into a Startup Business in Singapore? These 7 ideas can guide you through in 2022

Why Singapore?

Singapore is well known for its business-friendly policies. It is the leading startup hub not only in Southeast Asia but in the world. The city-state is the gateway to Asia with great global connectivity and easy access to top-quality talent and business advisory services. The country provides infrastructure and funding support and is an ideal destination expand your business in a growing consumer market in Asia, China and India. Additionally corporates can also enjoy the benefits of a low tax rate, various business incentives, and a supportive startup ecosystem which make Singapore an attractive hub for company incorporation.

Though the covid 19 pandemic hit hard all world economies including Singapore and many businesses pulled down their shutters, Singapore witnessed many startups and SMEs growing and prospering during this time. The country still offers profitable, scalable and sustainable business opportunities and remained encouragingly resilient during this economic upheaval

Why are Companies Registered in Singapore?
The ease of doing business, business opportunities, the fact that it’s a great place to work and live, and

  • The rate of corporation taxation is 17%
  • Dividends are not taxed
  • Foreign Investment Facilitation
  • No capital gains tax
  • A low 7%* value-added tax  and revised to 8% from 1 Jan 2023

There are all reasons why companies register in Singapore.

High In-demand and Profitable Startup Ideas in 2022
Following are some low-cost startups that benefited hugely during the pandemic due to a demand surge in Singapore.

Affiliate Marketing

Affiliate marketing is an online business model that helps you to make money from other businesses when someone takes an action on your affiliate link and/or makes a purchase. This business is straightforward as merchants or advertisers will pay whenever something happens. However, the way you are paid can be tricky sometimes and needs an understanding.

Following are the ways to get paid.

Cost Per Action (CPA) is a performance-based scheme where you are paid as and when an action happens, or a lead is generated without a monetary transaction. If a web user fills up a form without making an actual purchase, you will earn a certain amount of commission as it leads to identifying a potential customer.

Cost Per Sale (CPS) payment scheme applies as and when there is a transaction, and a customer buys a product through your affiliate link. You get a commission from the sale. This scheme is considered more cost-effective and less vulnerable to fraud or manipulation.

Pay Per Click (PPC) is an advertising scheme where advertisers pay commission to you whenever one of their ads is clicked and a phone lead is generated. This works with a call tracking system that uses a tracking code and converts to a generic number.

Drop shipping

The future of drop shipping businesses looks bright in Singapore as the country’s e-commerce market is expected to grow at a high CAGR for years to come.

It is an online business model which is gaining popularity in Singapore and doesn’t require you to be tech savy or financially savvy.

This business involves you selling goods and services online either on your website or creating accounts in reputed shopping platforms and without holding any inventory. Once a sale transaction is done, the supplier will pack, prepare and ship the goods for the customer, and you earn the margin difference.

You, however, need to address a few aspects for a profitable business including identifying the reliability of suppliers, quality of products, speed of delivery, customer feedback and any restrictions imposed by the shopping platforms.

Telemedicine

Singapore based telemedicine startups are making significant positive impacts on the way remote or virtual healthcare is accessed by patients. A full stack of technology solutions is utilized to provide an enriching customer experience by creating more convenient and easier reach to physicians and healthcare professionals. You can also start a telemedicine business for pets.

The Ministry of Health (MOH) Singapore will start licensing telemedicine in the middle of 2022 and once you comply with the MOH telemedicine e-training and register, you can start providing consultations under the Community Health Assist Scheme. As the hospitals and outpatient clinics are very crowded in Singapore, the Telemedicine business holds promise in the future.

Healthy food supply

Singapore Food Authority doesn’t impose licensing requirements for home-based food supply businesses considering very few food safety risks. This business is trending and is an easy, hassle-free and convenient startup for you. However the scale of business in a residential setup can be limited.

You need to identify competition in this segment and be attentive to how other food supply businesses are designing their posts on social media. You need to consider healthy sustainable foods and may also think of utilizing smart technologies in your kitchen such as smart cookers, smart fridges etc. in future. Promotional packaging can also be a good idea to grow your customer base.

Digital content marketing

Singapore has one of the highest online penetration in the world and if you can provide quality and engaging content to promote companies and brands, you can venture into an online startup business in Singapore. This is trending and holds great promise for growth and profitability as more than 60% of leads today come through content.

You need to provide great content with valuable and useful information as blogs or copyrights to promote a business to a range of prospective customers. Digital content marketing is the future of conventional marketing as it can access a wider and more diverse audience. Companies using content marketing usually register higher business growth.

For great content, you need to connect with bloggers and copywriters and frequently use social media to influence the audience on your products and services.

Software as a Service (SaaS)

SaaS is in great demand all over the world including Singapore as many small and medium-sized companies are trying to automate their businesses for higher productivity, better control and reduced cost. If you can provide business or operation management software based on proven technologies and can streamline single or multiple business functions, you can start your SaaS business.

You can develop SaaS for inventory management, automatic payments, product recognition, electronic signature etc. and can use cloud services to provide a SaaS platform. There are more than 1600 SaaS startups in Singapore today and many of them are very profitable and successful.

Digital learning

Digital learning is commonly known as Education Technology or EdTech and is associated with the development and application of tools for enhancing online education. EdTech has been in use for more than two decades however, it has gained renewed importance after the breakout of the covid pandemic.

It leverages technologies such as VR, AR, Enhanced Video & Rich Media, ML, IoT etc. to promote the reach and impact of education and enables everyone to thrive as learners in a digital world. It is also used for research, innovation and professional development.

You can venture into a digital learning startup in Singapore as it is a profitable and high in demand business opportunity high growth potential.

The Takeaway
The world, no doubt, is becoming more competitive, however, many present-day entrepreneurs are still keen about doing business in Singapore.

Trying times call for sound, robust and innovative strategic themes to invest your time and resources. The above-mentioned startup ideas can help you navigate through, provided you remember that money or capital is not the last word in entrepreneurship, your love, compassion and willingness to devote time will have the lasting impact..

Author Bio:

Mr. Pankaj Kumar is a member of ICAI (Indian Institute of Chartered Accountants of India) since 2002. He has over 17 years of experience in cross border advisory, international taxation, structured finance, trade finance and management consulting. He advises MNCs and SMEs on formation of cross border corporations and business structures and structuring commercial transactions. Previously he has worked with Amicorp Group, DM Ventures, Amba Research (Singapore) and ICICI Bank. He primarily manages Client Advisory, Relationship Management & Business Development amongst group strategies and identification of new business opportunities.

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What Should be Your Choice Between a Sole Proprietorship and a Private Limited Company in Singapore
  • Article, Singapore

What Should be Your Choice Between a Sole Proprietorship and a Private Limited Company in Singapore?

If you have decided on a company setup in Singapore this year then it is undoubtedly one of the best decisions taken by you. Singapore is the most vibrant, promising and business-friendly country in Southeast Asia and despite the coronavirus pandemic taking a heavy toll on the world economy, Singapore could mobilize almost $17.2 billion in fixed asset investments in 2020 alone.

The FDI commitments in the pandemic year have surpassed the medium to long term target of the Economic Development Board (EDB) ranging from USD 8 to 10 billion and are at the highest since 2008. The electronics, chemicals, and research and development sectors received the majority of capital investments but will promote growth in other sectors as well.

The country’s priorities to keep the borders open for ensuring business continuity garnered the confidence of the global business community. This Asian nation has long been recognised for it’s business-friendly policies and secured top positions in several global rankings awarded by international organizations. Choosing the right type of business structure is primarily governed by the nature and size of the business, licensing requirements, bus taxes and other liabilities, documentation needs, fundraising potential, future growth and expansion prospects etc.

There are many types of business structures available for you in Singapore however we will limit our discussions on the two popular types, a Subsidiary or private limited company and sole proprietorship company amongst the foreigners. A Singapore subsidiary is a private limited company structure available in Singapore and the majority shareholder is a corporation either a local or a foreign company or an individual. It is the most common and preferred form of business structure for small to medium size foreign companies in Singapore.

The subsidiary structure allows the company to function as a separate legal entity from the parent company and provides several advantages including

  • Protection of the parent company and individual assets from the liabilities of the subsidiary
  • 100% foreign ownership in the subsidiary
  • Similar tax exemptions and incentives as applicable to Singapore resident companies
  • Easier and simpler regulatory compliance requirements such as no need for financial statements of the parent company.
  • Several types of Tax Incentives, Rebates and Credits

A sole proprietorship is the simplest but the riskiest business structure in Singapore and can only be availed by Singapore permanent residents, entrePass holders or citizens. As it is not treated as a separate legal entity, it usually poses considerable disadvantages for small to medium-sized businesses. Annual registration renewal from ACRA is mandatory for this business structure.

If somebody sues a sole-proprietorship company and it is unable to pay the dues, the owner must make payments from his assets. This structure allows a single shareholder and new equity participation is not possible as the business grows and expands.

Business entities aspiring for future growth normally don’t go for a sole-proprietorship structure which is generally poorly perceived by the financial institutions and customers. Selling off a sole-proprietorship business is often difficult too.

The tax benefits enjoyed by other business structures are not available to sole proprietorships including a higher effective tax rate than that for a private limited company.

Sole proprietorship businesses however offer a few advantages including less documentation, fewer tax compliances and easier processes, straightforward banking, lower registration fees and freedom of taking business policy decisions. It is easy and convenient to set up a company in Singapore without any bureaucratic interference and corruption. If you are to choose between a sole proprietorship and a private limited company, it is usually recommended that you go for the latter unless you are willing to set up a trading business in Singapore as an individual.

A sole readership business for foreigners is allowed in Singapore if you are not residing in Singapore, you need to appoint a resident as an authorized representative.

Foreign individuals or corporations willing to set up a business in Singapore typically choose a private limited structure as this offers many benefits already discussed. The tax climate in Singapore is simple and aims at promoting investment in the country. Income tax to companies and individuals is levied on the income generated from the businesses.

The applicable tax rate for a sole proprietorship company varies between 2% to 22 & as the last amended Income Tax Act by Inland Revenue Authority of Singapore (IRAS) in 2017 with no tax exemption allowed for this business structure.

IRAS imposes a 17 % corporate tax rate on private limited companies in Singapore. From the assessment year 2020, two partial tax exemptions have been provided to the private limited companies and are as follows

  • 75% tax exemption on the first SGD 100,000 of regular income and,
  • 50% tax exemption on the next SGD 100,000 of regular income

Formation of a sole proprietorship company must be done online through the BizFile+ portal using personal access or SingPass. If you don’t have personal access, then you must appoint registered corporate services firm for filing your case.

Once you register for a sole proprietorship, you will have minimum compliance requirements. This business structure doesn’t need to get their accounts audited and file for annual returns separately as this is done in the tax return of the owner during an assessment.

A private limited company whereas must comply with more regulatory compliance compared to a sole proprietorship company. The private limited structure can have 1 to 50 shareholders but must appoint a minimum of one Singapore resident as Director with full legal capacity. A foreign company director can also take up this position if he has an employment pass but needs a letter of consent (LOC) from the Ministry of Manpower (MOM).

The owners or shareholders of a private limited company need to appoint a Company Secretary who is a resident in Singapore for company secretarial services including the filing of annual returns with ACRA.

Bottom line

Both local and foreign investors can incorporate a private limited company in Singapore however it must not be a listed company. A private limited company can be converted to a public limited company by outsourcing a PRO services provider in Singapore.Mr. Pankaj Kumar is a member of ICAI (Indian Institute of Chartered Accountants of India) since 2002. He has over 17 years of experience in cross border advisory, international taxation, structured finance, trade finance and management consulting. He advises MNCs and SMEs on formation of cross border corporations and business structures and structuring commercial transactions. Previously he has worked with Amicorp Group, DM Ventures, Amba Research (Singapore) and ICICI Bank. He primarily manages Client Advisory, Relationship Management & Business Development amongst group strategies and identification of new business opportunities.

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8 Reasons Why Companies in Bahrain Should Outsource Company Secretarial Services
  • Article, Bahrain

8 Reasons Why Companies in Bahrain Should Outsource Company Secretarial Services

Introduction

As Bahrain puts great strides to diversify and develop its non-oil economy, the government is actively pursuing various amendments to certain provisions of the Bahrain Commercial Companies Law (BCCL) as part of the country’s ongoing efforts to develop its compliance and regulatory frameworks in line with international best practices.

In the light of recent economic developments and changing business landscape in the world, the stakeholders of companies are getting overly concerned with the conduct of affairs of their companies and looking for increased control and monitoring of regulatory compliance. As Bahrain is laying out more regulatory requirements at the feet of company secretaries, their functions are becoming extremely vital for the long-term growth and sustainability of business organisations.

With the increased focus on corporate governance by the Ministry of Industry and Commerce (MOIC) Bahrain, the role of the company secretary has been expanded to include its function as the custodian of the company’s compliance with legislative requirements for avoiding legal procedures.

As soon as a new company formation in Bahrain is initiated, the government recommends the implementation of professional company secretary services in advance for streamlining bookkeeping and accounting processes for appropriate record-keeping and timely compliance of regulatory protocols.

What is the role of a company secretary?

The company secretary is responsible for ensuring compliance with company law, maintaining certain statutory registers and making the necessary filings with the Registrar of Companies including annual returns, financial statements and any changes in share capital.

In reality, the role of the company secretaries has gone much beyond the basic statutory requirements and the added responsibility of improving corporate governance through system and process development has now fallen on their lap. The chairperson and the board directors are also constantly looking up to them for skills, expertise and technology in this area. Periodic reviews of corporate governance policies with recommendations for improvements is also their responsibility.

Another critical role that the company secretary has is communicating with external stakeholders. They are also the first point of contact for investor queries.

Why outsourcing of company secretarial services is beneficial for companies?

In Bahrain, the company secretary function is one of the most vital elements in business and mandatory to address the regulatory requirements in the company’s legal, financial and corporate governance perspective.

Collaborating with professional experts facilitates achieving the ultimate organisational objective of business sustenance and growth with continued regulatory compliance on all business fronts. Following are the benefits of outsourcing company secretary services in Bahrain.

Cost Advantage

As foreign investment grows with a greater number of business establishments in Bahrain, so does the demand for skilled and professional company Secretaries. Hiring employees for company secretary functions is not only difficult but expensive too and generally involves lots of training and skill development programs that push the employee cost even higher. Besides, there are recruitment and employee retention costs as well and again increases the fixed employee overheads. Furthermore, a doubt always remains about the quality of service that the employees will deliver.

Outsourcing Company secretary services, on the other hand, is a one-time cost and saves time and other resources of setting up an in-house facility.  Professional service charges of company secretary service providers are much less than the employment and maintenance cost of the internal Corporate Secretarial Team and translate to considerable cost savings.

Savings in Time and Efforts

When a company secretarial service is outsourced, it generally cuts back huge time and efforts on recruitment, employee engagement, training and development. The time saved can be utilised more productively in other business pursuits including strategic planning, operating cost optimization etc. The responsibility of training and development of internal staff generally lies with the service provider.

Improved Investor Confidence

The external service providers ensure the most accurate and reliable financial statements of the company that improves clarity and confidence about the financial future of the business and in turn, facilitate investment decisions of potential investors. As corporate governance improves, the board takes smart and strategic decisions for value unlocking and attracts more investments.

Wide Range of Services

Company secretarial service providers generally offer packaged services with several options that can be selectively chosen by the companies as per their needs. Accounting services in Bahrain are often the most lucrative options and can help companies grow in several ways.

Earlier Access to Legal Updates

Company secretarial service providers because of their profession keep a closer track of all business and company-related legal updates and provide businesses with early information on any inclusion and amendment in government regulations.

Improved Goodwill

Company secretarial services focus on improving the corporate governance of the company. Once implemented with the right spirit with the help of expert professional service providers, the company’s goodwill in the market is significantly boosted opening avenues for future business growth.

Access to advanced technologies

Company Secretarial service providers generally use the latest technology and software to accomplish their job. Once a company hires such service providers, it can benefit from the latest and updated high tech software available with the agency without incurring costs on procurement, installation and maintenance.

Risk Mitigation

Risk mitigation is the essence of company secretarial services outsourcing and primarily because these agencies have a team of expert and seasoned professionals who can identify anomalies and non-compliance in the system and processes at the earliest and can take quick corrective and preventive actions for avoiding legal actions and penalties. They are committed to their planned schedules and normally have high standards of reliability. Some of them are industry veterans and work with clients from diverse fields and enjoy better PR with government agencies and officials. They are more receptive to any impounding threats and can take prompt and most appropriate countermeasures.

Takeaway

Before outsourcing company secretarial services in Bahrain, you need to find out one of the best corporate secretarial services providers primarily operating in your field of business and one with a high reputation and success rate. The service provider needs to be affordable and must have team members with high levels of professional qualifications. You also need to choose a firm that has a base in Bahrain and possess good knowledge and information on local laws.
 

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