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Expansion of Family Offices in Singapore
  • Newsletter, Singapore

Expansion of Family Offices in Singapore

The last decade has been good for Asia as wealth has been created at a remarkable pace. This has resulted in the expansion and spurt of family offices in Singapore and Asia which are basically set up to assist the ultra-high net worth (UHNW) families to handle their wealth and also to help organise for the handover of wealth to the next generation.

The Monetary Authority of Singapore (MAS) hinted that between the years 2015 and 2017, the total number of family offices based in Singapore had multiplied four times. Though there is lack of official data which confirms the real number of family offices established in Singapore, the industry has seen a constant and stable growth in the years 2018 and 2019.

Singapore has been one of the preferred private banking and wealth management hubs for families in Asia, and it is thus a natural choice for setting up family offices.

Singapore is also a top choice because of its political stability, its highly educated, professional and efficient work force and a robust financial sector. It is surely advantageous that a good percentage of its proficient workforce has fluency in more than one language. This is because Singapore is a multi-cultural society and the education system there has always laid a lot of stress on its bilingual educational policy. Various UHNW families in this region usually feel more at home and comfortable in Singapore because of its culturally sensitive and global-minded workforce helping them with investment management and also on sensitive subjects like property planning needs.

Though most of the family offices based in Singapore are set up by Asian families, but there are many European and American families also who are opening their family offices in Singapore because they want to use Singapore as a doorway for their investments in Asia.

Service range provided

The main services offered by family offices based in Singapore are usually investment management or financial advisory. Since the growing Asian wealth reaches the inflexion point for inter-generational wealth evolution, many a times family office mandates also involve supporting with consolidating family governance and doing required arrangements to enable a smoother transition.

As the investments range across multiple countries or family members who dwell in various parts of the world, there is a rising consciousness of cross-border tax, legal, and regulatory challenges and for family offices to help the families to have a thorough plan for these matters.

In case where hiring a full-time in-house adviser is not possible or appropriate, then there are many international advisers based in Singapore who can help and guide family officers. Nowadays, family offices also invest a lot of time in arranging data and gathering information for families to comply with the dynamic regulatory and filing requirements internationally.

With regards to the range of investments, certain family offices have a primary task to handle the financial portfolio investments conservatively so as to stabilise the higher risks that they are exposed to in their domestic jurisdiction. However, some other family offices are operated like investment banks and also act as advisers to the chief family members. They assist in giving professional advice on a variety of matters such as how to handle the strategic listed stake in the founding business, find apt business opportunities which could be complementary to the existing businesses or otherwise, and assist in creating joint ventures or other club deals with various strategic partners. Though the family offices are based in Singapore, the several deals and investments they deliberate and do could be anywhere around the globe.

Singapore is an attractive destination to these family offices as it is a conducive place where one can actually expand and grow their business operations. It is reasonably simple to do business in this country, and there is a variety of liberal tax incentives that are available for sectors which the Government is wanting to foster. Proper structuring can usually be done efficiently, gaining from multiple tax and investment treaty networks which Singapore has to offer.

Family offices can also participate in offering a philanthropy advisory service and assisting in developing more well-thought-out and strategic policies for various families and their foundations. Asian families are gradually giving more meaningful amounts to several international philanthropic causes. Family offices enable in bringing a more professional attitude to the philanthropic projects and endeavours of the family. They could also offer administrative support to the family foundations or handle the funds that are donated to the foundations. It is important to note that not all family foundations handled by the family offices based in Singapore have to be registered as a Singapore charity; however, they may be designed to be eligible for such registration if it is advantageous to get registered. Income and profits of a registered charity in Singapore gets a tax exemption and some specific donations can eligible for a very substantial tax deduction of 250 percent for the donor.

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Dubai Government is Opening up More Opportunities for the Private Sector
  • Newsletter, U.A.E

Dubai Government is Opening up More Opportunities for the Private Sector

Dubai is now taking measures to control or limit the number of state enterprises to lend more support towards the expansion of the private sector entities and enable their economic growth. To help with the already underway efforts by the governments to re-assess the function of both the public and private sectors, all the state-run businesses or enterprises would now only be set up to enable fulfilling national security or any governmental need. The government would only mediate and interfere in scenarios where the private sector is not capable of offering the services or goods required or wherever the government might attain a better result.

The higher committee is currently managing the demand and supply projections and giving guidance on sectors where private companies can possibly handle additional responsibilities. Besides this, new government entities are also expected to function without governmental prejudice, to help reduce any additional gain over private-sector partners.

The positive approach of the government in providing a level playing field for the UAE’s private sector, assisting to enable fair competition for all the big players in the market. There is still hope that with this new attitude and viewpoint, the private sector will be able to create newer jobs and company registration in Dubai, while also helping to enhance economic development in this region. So, if you aim for best company formation in UAE and need professional advice or guidance for the same, please get in touch with us and we would be glad to help.

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Why Establishing Your Company Office in Singapore Makes Sense for Business in ASEAN
  • Newsletter, Singapore

Why Establishing Your Company Office in Singapore Makes Sense for Business in ASEAN?

Singapore has been a preferred centre for establishing regional headquarters for carrying out business opportunities throughout Asia and ASEAN. The country got the status of a favoured investment hub and business destination in Asia mainly because of its simplified legal and tax procedures and because it’s one the most investor and business-friendly places in the world. Also, its financial system is very integrated with global financial markets, which acts as a bonus for company formation in Singapore.

This business setting has helped global investors to take benefit of Singapore’s approach to some of the biggest combined free trade sectors through ASEAN, including ASEAN-Hong Kong, ASEAN-China, and ASEAN-India free trade agreements (FTAs).

However, there are several other factors that help in making Singapore one of the best places for firms that want to start their business operations in the region.

Easy and well-organised set up process

If you are wondering on how to start a business in Singapore, you must know that the business processes and legal regulations in the country are quite easy and transparent, which means that most of the information that any business might require is usually available online. Hence, it becomes easier for global decision-makers to know more about the domestic market when they decide to enter it.

Businesses who have decided to set up their office here can use Bizfile, which is an electronic filing system combining all the tax and business needs in a single form, thus lessening the need to spend extra time and effort at various service centres. Bizfile is handled by the Accounting and Corporate Regulatory Authority (ACRA), which is the statutory body accountable for the supervising new companies getting formed in Singapore.

Another benefit is that the effort, cost and time spent in setting up in Singapore is comparatively lesser. Foreign entrepreneurs can pay US$254 (S$300) to register a company through Bizfile and it costs about US$10 (S$15) for registering the company’s name. The good part is that usually the applications are processed on the same business day; but, the process can also take anywhere between 14 days to two months if they are to be reviewed by any government agencies.

The well-organised and cost-effective nature of corporate set up in Singapore has amounted to over 37,000 global companies and almost 7,000 multinationals working in the country. This is also one of the reasons why the city-state is always positioned among the top three economies world-wide and in the Ease of Doing Business report.

Favourable tax environment

Singapore’s positive tax regime is globally recognized for permitting entrepreneurs and businesses to enjoy low tax rates and various types of tax relief – via incentives, exemptions from specific incomes and comprehensive tax treaty networks.

Singapore’s corporate tax regime is supposedly one of the most attractive and best in Asia. Entrepreneurs can take benefit of the flat 17 percent corporate income tax rate for any profits they make over S$300,000 (US$217,000) and it is 8.5 percent for profits that go up to S$300,000 (US$217,000).

Additionally, as the Singaporean tax system functions on a territorial basis, businesses are not taxed on most of the globally-sourced incomes (like incomes from dividends or from branch profits) that are sent into Singapore; as long as they are paying tax in the source country at a rate of minimum 15 percent. Another benefit is that there is no capital gains tax in the country.

Robust DTA and FTA networks

One of the major advantages of setting up a holding company in Singapore is the country’s network of 24 FTAs and 85 double taxation agreements (DTAs).

There are mainly two types of DTAs operational in Singapore – comprehensive and limited. Comprehensive DTAs include all income types and permit exchanging of tax information; however, restricted DTAs cover income which is derived from shipping and air transport.

These DTAs also comprise treaties done with ASEAN’s 10 member states, which are, Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand, and Vietnam; thus offering companies with a better competitive edge while entering this market.

Besides, this country also boasts of exclusive access to the biggest combined free trade sectors due to its multiple agreements with ASEAN and its FTAs with countries such as China, India, Hong Kong, and the EU. Singapore is also in the process of negotiating new FTAs in collaboration with the Eurasian Economic Union (EAEU) and Pacific Alliance-Singapore.

Singapore – an easy entry into ASEAN

Singapore is well-positioned to assist the investors to steer through the challenges and newer opportunities offered by ASEAN markets. For example, its effective setup processes, integrated supply chains and competitive tax environment have enabled Singapore to move ahead of conventional holding locations in the region, like Malaysia, and give competition to well-established international investment centres such as Hong Kong.

But there are many softer factors that place Singapore as one of the best and ideal places for companies that want their regional headquarters to grow and expand into ASEAN and Asia.

People of this country share multiple cultural and linguistic connections along with ASEAN members, while English is their main working language. Its highly-skilled and professional workforce is armed to act as an intermediary for investments coming in Asia while communicating to the best of their ability with global investors.

Singapore’s significance as a management hub for getting into the ASEAN markets is now growing in importance, more than ever.

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India Ranks 63rd in the World Bank’s Report Titled Ease of Doing Business 2020
  • India, Newsletter

India Ranks 63rd in the World Bank’s Report Titled Ease of Doing Business 2020

India has stepped up 14 places to take the 63rd position among 190 countries in the World Bank’s Ease of Doing Business ranking which was released on Thursday after the announcement of numerous economic reforms by the Narendra Modi-led government.

India was at the 77th place among a total of 190 countries in the last year’s ranking, which is a gain of 23 places. The report evaluates enhancement in the ease of doing business environment in cities like Delhi and Mumbai, which also shows that company formation in India is much simpler now.

“Sustained business reforms over the past several years has helped India jump 14 places to move to 63rd position in this year’s global ease of Doing Business rankings. India put in place four new business reforms during the past year and earned a place in among the world’s top ten improvers for the third consecutive year,” the World Bank Group’s Doing Business 2020 study said.

The newest reforms are in the Doing Business areas of Setting up a Business, Managing the Construction Permits, Handling the Trade Across Borders and also Resolving Insolvency.

In Doing Business 2020 report, India along with other top-gaining countries executed a total of 59 regulatory reforms in the years 2018/19—which accounted for almost one-fifth of the total reforms recorded globally.

Junaid Ahmad, World Bank’s Country Director in India said that India’s remarkable headway in the Doing Business rankings over the last few years is an incredible accomplishment, specifically for an economy which is so enormous and complex. Special attention given by the country’s top leadership, and the relentless attempts made to propel the business reforms agenda, both at the central and the state level, aided India to make such significant improvements. Now, the focus should be carrying on with this trend to maintain and further improve this ranking.

Doing Business recognises the 10 economies that have progressed the most on the ease of doing business after executing the regulatory reforms. In Doing Business 2020 report, the 10 top improving nations are Saudi Arabia, Togo, Jordan, Bahrain, Pakistan, Tajikistan, Kuwait, India, China, and Nigeria.

The founding of a modern insolvency regime in the year 2016 under the comprehensive policy to reorganise corporate law paved the path for steady upsurge in the number of reorganizations, in spite of some implementation-related challenges. Consequently, the overall rate of recovery for creditors moved up drastically from 26.5 to 71.6 cents on the dollar. “India now is by far the best performer in South Asia on this component and does better than the average for OECD high-income economies,” it said.

Concluding the procedures necessitated building a warehouse now costs only 4 percent of the total warehouse value. Creating quality control measures has also improved, and now only six economies globally have a score, which is more than India’s 14.5 out of 15 on this index.

Importing and exporting has become much simpler for companies for the fourth year in a row. With the newest reforms, India now stands at the 68th position worldwide on this indicator and does considerably better than the regional average. The time needed for the logistical processes such as exporting and importing goods is also now significantly reduced.

Doing business ranking is constructed on quantitative indicators on regulation for setting up a new business, handling construction permits, getting facilities like electricity, registering the property, protecting minority investors, getting credit, paying taxes, doing trade across borders, applying contracts and also resolving insolvency.

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UAE Announces the Introduction of Economic Substance Regulations
  • Newsletter, U.A.E

UAE Announces the Introduction of Economic Substance Regulations

In the earlier part of 201, the Cabinet of Ministers in the UAE announced the release of Resolution No 31 of 2019 (Resolution), which was regarding the Economic Substance Regulations (ESR) that would be applicable with immediate effect.

ESR was introduced to make sure that all the companies that are conducting their business in the UAE, pursuant to the trade license gained from relevant authorities, comply with the Economic Substance Test. The resolution offers useful and important guidelines and parameters to perform any such substance tests.

This particular resolution is also a move to meet the EU’s obligation to remove UAE from the EU black list. EU has had a list of non-co-operative jurisdiction aimed for tax purposes. Consequently, on 10 October 2019, the EU has struck off UAE’s name from its black list.

Where is it applicable?
  • ESR is applicable to all UAE companies who have gained a trade license or permit from relevant authorities to perform ‘Relevant Activity,’ which includes the Free Zone and also the Financial Free Zone.
  • Nonetheless, this resolution would not be applicable to the companies that are owned by the Government of the state, other Government authority or body, or Emirate of the state directly or indirectly.

Relevant businesses and their core income-generating activity

Relevant Business or ActivityCore Income-generating Activity
Shipping
  • Managing the crew or voyages
  • Maintaining or overhauling the ships
  • Managing and tracking shipments
Holding Company
  • All the activities performed and related to the business
  • For income besides dividend or capital gains, any activities to earn such other income
Banking
  • Raising the funds and controlling the risk
  • Taking hedge positions
  • Offering loans or credit
Insurance
  • Forecasting and calculating the risk
  • Insuring and re-insuring against any possible risk
  • Underwriting insurance and re-insurance
Investment Fund Management
  • Making decisions upon holding or selling
  • Computing the risk and reserve
Lease-Finance
  • Agreeing on the funding terms
  • Recognising and acquiring assets that are to be leased (for leasing activity)
  • Managing and controlling the risks
Headquarter
  • Taking various management decisions
  • Managing the operating expenditure on the behalf of various group entities
  • Managing and coordinating group activities
Intellectual Property or IP (where IP is patent/non-trade intangible) and it is a High-Risk IP Licensee*
  • Making strategic decisions and handling the risk factor related to developing, exploiting or protecting the company’s intangible assets
  • Carrying out ancillary trading activities aimed for exploiting intangible assets
Distribution and Service Centre
  • Transportation and storage activities
  • Handling inventories

* High-Risk IP Licensee is defined as a licensee who:

  1. Did not create an IP that is held for business and acquired an IP from any related persons, in deliberation for funding any research and development activities carried out by another person located outside of the UAE and licenses such IP to related persons or generates any income
  2. Does not perform any research and development activity, or any marketing, branding, or distribution activities as part of main income-generating activity

 

What are the main parameters for the Economic Substance Test?

Licensee should mandatorily satisfy the below-mentioned criteria to be able to meet the Economic Substance Test in relation to the Relevant Activity:

  • Perform the core or key income-generating activities in the UAE
  • Licensee should be guided and managed in the UAE
    • Required frequency of the Board of Directors meetings to be held in the UAE
    • Directors should be having the required knowledge and expertise to carry out their duties
  • To hire the required number of qualified and trained full-time employees, or satisfactory outsourcing expenditure spent for third party service providers
  • To own the required amount of physical assets in the UAE

Requirement from the compliance point of view

  1. Notifications to be submitted
    Licensee has to notify the authority on following every year:
  • Whether or not it is performing the Relevant Activity
  • If yes, then the gross income for the Relevant Activity depends on the tax outside the UAE
  • If the financial year is followed by the licensee
  • Reports to be submitted
    If the licensee is performing the Relevant Activity, then it is needed to submit a detailed report every year within 12 months from the end of that Financial Year, detailing all the operations-related information, which includes but is not limited to employee details such as their experience, qualifications, type of contract, duration of employment, etc. and also detailed information on intangible details of the licensee.

What are the various offenses and penalties that are prescribed?

The resolution has recommended the following offenses and their penalties as mentioned here:

OffensesThe related penalty
 

 

Failure to comply with the Economic Substance Test

AED 10,000 – AED 50,000 (First Year)
AED 50,000 – AED 300,000 (Subsequent Year)
Failure to give the required information or provide inaccurate informationAED 10,000 to AED 50,000


However, before a penalty is levied, the relevant authority should issue a notice (that is, giving an opportunity of being heard) to the licensee.

In addition, the authority can neither decide the economic substance test of the licensee nor levy any penalty after 6 years from the end of that financial year (an exception is only if there is deliberate misrepresentation or any fraudulent action done by the licensee or any other individual)

What lies ahead?
  • The UAE has announced Country-by-Country-Reporting (CbCR) Regulations recently, which are in line with its commitment for implementing the Base Erosion and Profit Shifting (BEPS) standard for Action Plan 13. After the introduction of ESR, UAE has been able to send a positive signal to the rulers of its trade partners located in the other jurisdictions.
  • Additionally, announcement of these regulations have already aided the UAE in striking off their names from the EU blacklist. However, the execution and implementation process of these regulations in the UAE, could pose some challenges as it does not have any taxation related law till date.
  • In spite of the regulations offering some very useful guidelines, the licensees will need a lot of judgment professionally to decipher if a particular activity meets the substance test or not.
  • The above-mentioned regulations also bring out extra compliance requirements on part of the licensee and all the businesses operating in the UAE who are still struggling with the GST-related issues and compliances in the area.


Multinational companies are recommended to be pro-active and reconsider their current operational activities to alleviate and avoid any probable risk of non-compliance with regards to the above regulations.

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Saudi Arabia Opens to Foreign Holidaymakers, Chases Tourism Investment
  • Newsletter, Saudi Arabia

Saudi Arabia Opens to Foreign Holidaymakers, Chases Tourism Investment

Saudi Arabia opened its doors to global tourists recently and announced a new visa regime, which will be applicable for 49 countries. The sultanate is also encouraging foreign companies to come and invest in a sector which hopefully would contribute almost 10% of the gross domestic product by the year 2030.

The kingdom, which was comparatively closed for decades, has recently, relaxed some of its severe social codes such as differentiating men and women in various public places and necessitating women to dress in all-covering black robes called abayas.

The tourism chief, Ahmed al-Khateeb mentioned before the official announcement that abayas would now not be compulsory; however, modest dress should be worn, which covers shoulders and knees, especially in public places and also at public beaches.

He also said that alcohol would remain banned. Visas, however, are now easily available online, either on arrival or at various Saudi diplomatic missions for a cost of about $120 which includes a health insurance fee. Outbound countries comprise of the United States, China, Russia, Japan and many European states as of now. More countries are slated to be added later.

Visas permit multiple entries and one could stays up to 3 months. There are no constraints for unaccompanied women, as was in the past, and Muslims can also do pilgrimage other than the Haj season.

Till now, any foreigners who were travelling to Saudi Arabia were majorly restricted to resident workers and their dependents, Muslim pilgrims who are allotted special visas to visit the holy cities like Mecca and Medina, and other business travellers.

The plans to welcome considerable numbers of tourists who come for leisure have been discussed for long, but was not accepted due to conservative views and bureaucracy. An added benefit was the e-visa meant for sporting events and concerts, which was announced last December.

This move comes as a part of the de facto ruler Crown Prince Mohammed bin Salman’s impressive plans to cultivate new industries to deter the world’s top oil exporter off crude and open up the country’s society by introducing formerly banned entertainment.

In quest of investments

In addition, the tensions with arch-enemy Iran have also flared up. Riyadh accuses Tehran for an assault earlier this month on Saudi oil facilities, which is denied by Iran.

However Khateeb, the chairperson of the Saudi Commission for Tourism and National Heritage, mentioned that the country is quite safe and this attack would not influence the plans to attract more tourists.

Tourism remains high on the crown prince’s memo or agenda, in spite of a shortage of infrastructure. To push further growth, Khateeb projected that almost 250 billion riyals ($67 billion) of investments are required, which includes 500,000 new hotel rooms by the year 2030 — half from government-supported mega projects and other half coming from private investors.

The government has also signed a memoranda of understanding which totalled to approximately 100 billion riyals with about regional and global investors like conglomerate Triple Five and UAE-based developer, Majid Al Futtaim. This of course signals that the next few years are going to be a perfect time for company formation in Saudi Arabia or foreign company registration in Saudi Arabia.

The government wishes to entice 100 million annual visits in the year 2030, which is up from about 40 million currently. The contribution to the country’s GDP is aimed to reach 10% from the current 3%.

This country, which shares its borders with Iraq in the north and Yemen in its south, claims of vast tracts of desert but also lush mountains, untouched beaches and heritage and historical sites that include five UNESCO World Heritage Sites.

This development drive has a purpose of adding almost 1 million tourism jobs. However, adding hundreds of thousands of Saudis into the workforce still remains as a key challenge for the crown prince, who has been able to manage making a dent in the official unemployment rate which is currently over 12%.

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  • Newsletter, Oman

Oman-India Forum all Set to Attract Indian investors

The Public Establishment for Industrial Estates (Madayn) arranged an Oman-India Investment Meet between September 29 to September 30 at Crowne Plaza in Muscat under the support of Yahya bin Said Al Jabri, who is the Chairman of the Special Economic Zone Authority at Duqm (Sezad) and Chairman of Ithraa.

The event falls within the endeavours of Madayn to pull in new foreign investments to the Sultanate and bolster affiliation with the private sector, specifically in the industrial sector. The meet hosted a very high-profile Indian business delegation comprising almost 35 businessmen who represented various sectors like food, logistics, telecommunications, information technology and renewable energy. Many business and investment officials who represented the public and private sectors in the Sultanate also came for the event.

This event also provided a perfect platform to highlight the investment opportunities available in Oman and Madayn’s industrial towns in particular. It also opened a great opportunity for exploring alliances between the Omani and Indian organizations and factories, which would ultimately add more value to the national economy, offer more job opportunities for the Omani groups in the industrial sector and allow business setup in Oman.

This high level event also highlighted Madayn’s vision in improving the Sultanate’s rank as a leading regional hub of manufacturing, innovation and entrepreneurship excellence, information and communications technology (ICT), and its quest in enticing industrial investments and offering continued support, through regionally and internationally-competitive policies, strong infrastructure, newer value-adding services, and simple and easy-to-manage governmental processes.

The event came in line with Madayn’s attempts to attain its key objectives which include pulling in global investments into the Sultanate while localising the national capital; thus, encouraging the private sector to realise sustainable economic and social development; attaining environmental sustainability, and also help in creating new job opportunities for the national factions and encourage company registration in Oman.

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How can you Retain 100% Foreign Ownership by Forming a Branch Company in the U.A.E.
  • Newsletter, U.A.E

How can you Retain 100% Foreign Ownership by Forming a Branch Company in the U.A.E.

Foreign ownership in UAE has been a topic of discussions, especially after the FDI Law. But somehow, most of the companies are not aware that retention of 100 percent foreign ownership in the UAE via alternative modes, especially through establishing a branch of a Foreign Company where the ownership of the branch company is vested fully or 100 percent with the Foreign Company.

Article 327 of the UAE Federal Law No (2) of 2015 on Commercial Companies (“UAE Commercial Companies Law”) provides Foreign Companies with the right to function in the UAE depending only upon the provision of the law. Article 328 explains that any Foreign Company setting up its principal office or branch in UAE mainland should get a relevant license first from the representative Emirate’s or State’s governing authority. Foreign companies might not perform any activity or set up their own branch or principal office in the State without getting a license from the relevant authority after the approval of the ministry. The license would decide the activity which can be performed or practiced by the company.

As specified by Article 330, sub-article (2) of the above Law, the branch or office of a foreign company in the State to be considered as the main office of its activity in the State, and this activity would be dependent on the law’s provision which is in force in the State. As per the law, a legal person cannot perform any economic activity or form a branch office to any activity prior to getting a license to perform any such activity provided by the relevant authorities in the Emirates. The Department of Economic Development (“DED”) determines the relevant license pursuant to which any individual or legal party can perform economic activities in the UAE.

It is important to note that the license that a company would get and the business form of such a company are two separate aspects; but both are administered independently by the DED, which is accountable to issue the apt license which is in accordance with the pertinent trading activity.

Basically, the aim of the branch office is to endorse and market the products and/or services of the Parent Company, conduct the same business as the Parent Company is conducting, perform the transactions and complete the agreements under the name of the Parent Company, and finally provide services to the customers located in the UAE. It is important to note that a branch company is not permitted to conduct in any activities which are different from its Parent Company, thus, no new or different activity than that of conducted by the Parent Company can be undertaken by the branch company. But, in case the Parent Company does 10 activities, then the branch company is allowed to either undertake all or pick any of those.

After taking the license from the Economic Department, for practicing permanent or temporary activities, the branch company needs to also get the Chamber of Commerce registration.

Article 1 of the Ministerial Decision No. 377 2010 says, ” The Manual of license procedures for branches and offices of firms incorporated abroad and free zones in the UAE attached to the Decision shall be adopted”, thus, before getting the initial approval for setting up a branch of a foreign company within UAE, the DED would need an approval of the Ministry of Economy as a precondition.

Companies that want to conduct business, go in for company formation in Dubai or open their office here would need to obtain a license from the relevant authority in the Emirate and also obtain a certificate of entry at the Ministry. Article 329 of the UAE Commercial Company Law permits foreign companies the right to set up their own offices or branches in the UAE as long as their agent is a UAE national. In case the agent is a company, then it should be a UAE company and all their partners should necessarily be UAE citizens.

To conclude, for opening a foreign branch within the UAE assures 100 percent foreign ownership. However, the branch company is only allowed to conduct similar activities as that of the Parent Company. Also, the parent company remains accountable for the branch’s obligations or debts and is needed to entitle a representative for managing the branch’s affairs.

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What are the Essentials for Incorporating a Company in Singapore
  • Newsletter, Singapore

What are the Essentials for Incorporating a Company in Singapore?

Singapore is a thriving market to set up a new business in; however you should ensure that you are aware of all the obstacles you might face in this process and know minute details of how to start a business in Singapore.

For companies who are wanting to expand their operations in the Asia Pacific region, Singapore happens to be an attractive and top choice. It is known for the ease of doing any business, attractive tax rates and related incentives, availability of skilled workforce, country’s stability and steady economic growth. So, if you are thinking of setting up your company there, the first step should be to get the incorporation process right from the start, thus, avoiding any delays that could cost a lot.

The key steps to incorporate a company in Singapore

There are three key steps for company formation in Singapore.

1.Name reservation: This can be done in just an hour or so, if you have an approved name reserved for four months starting from the application date (please note that no extension to this time period is allowed). To avoid any chance of rejection, it’s best to check the Accounting and Corporate Regulatory Authority’s (ACRA) database first to avoid identical names to any existing companies. In case your company is a part of some group, then a letter of appeal has to be submitted for using a similar naming to the other group companies, though the appeals process can end in a delay of up to two months. Same kind of delays could be incurred in case the name has certain words like ‘bank’, ‘law’, ‘finance’, ‘school’ and ‘media’ as other government authorities would be required to approve the use of the term. You would then need to submit all the details of the directors and shareholders when you apply for a name, so you should have already decided this.

 

2.Appointment of a minimum of one resident director:The director should be at least 18 years of age, of full legal capacity and must be a permanent resident, a Singapore citizen, and an Employment Pass holder (EP) or Entry pass holder, though an EP has to first get a letter of consent from the Ministry of Manpower prior to becoming a company director. This individual should also not have been disqualified anytime previously from acting as a director.

Company registration process: The application can be submitted through the ACRA online filing system. After submission of your registration documents, an instant approval from ACRA would be given to you through an email and the incorporation procedure would usually be effective on the same date. In some exceptional cases, ACRA might perform random background checks specifically on the information submitted during company registration process, which could further delay the registration by around two months. A company might opt for a preferred registration number out of a list of reserved registration numbers, which comes for a fee. This can be done during the company’s incorporation or registration. ACRA would offer a complimentary business profile after they incorporate the company.

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Dubai Gets the tag of ‘City of the Future’ in terms of Investments
  • Newsletter, U.A.E

Dubai Gets the tag of ‘City of the Future’ in terms of Investments

His Highness Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, whose the Crown Prince of Dubai and Chairman of the Dubai Executive Council, stressed that foreign direct investment (FDI) flows coming into Dubai this year have continued to grow significantly, thus making the emirate one of the top three international FDI locations.

This accomplishment was made possible by the vision and guidance of His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, Sheikh Hamdan said.

He also said that such a success shows the confidence of the local and international investor community in Dubai’s tactical plans and foresight for the future.

In this regards, Sheikh Hamdan had released orders to hold the fifth edition of Dubai Investment Week (DIW 2019) that started from September 29 to October 3, which had the theme ‘Investing in the City of the Future’. He said this week-long programme of multiple events would demonstrate how Dubai has changed the challenges that future cities could face into opportunities for their growth, innovation and partnership to cope up with the requirements of the present and spearhead the world as the sustainable and smart city of the future.

“Dubai leadership’s push in adopting Fourth Industrial Revolution technologies and creating regulatory frameworks for new business models have further developed Dubai’s investment environment and opportunities as well as its human capital, and hard and digital infrastructure advantages,” said Sheikh Hamdan. He also mentioned that today, Dubai has become a preferred international FDI destination when it comes to artificial intelligence or robotics.

Sheikh Hamdan bin Mohammed acclaimed the role of Dubai Investment Week, which was organised by the Dubai Investment Development Agency (Dubai FDI), in augmenting the promptness of the investment atmosphere and investor confidence in the emirate, while stressing the current and upcoming investment prospects in the strategic and developing economic sectors in the emirate.

He also acclaimed the growth attained in facilitating investments, company registration in Dubai and aiding the success and growth of businesses through introducing new and more innovative legislation and services.

Sami Al Qamzi, who is the director-general of Dubai Economy, mentioned that DIW 2019 edition has been brought out at a time when the UAE’s and Dubai’s investment environment is seeing many positive developments

This could be a good time for company formation in Jafza and company formation in DMCC

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