A Member Firm of Andersen Global

Contact Us
IMC Logo

Blog

CBB regulates playtime in Sandbox for Fintech firms
  • Newsletter

CBB regulates playtime in Sandbox for Fintech firms

The Central Bank of Bahrain introduced a regulatory Sandbox for the Fintech Firms in July 2017 for testing their innovative and customer beneficial technologies in a safe virtual place. The State of Bahrain is the second member state of the GCC to introduce these regimes.

A regulatory sandbox is a place where the startup and established Fintech firms could develop their financial technology (“FinTech”) sector in a safe, measured and practical manner. The Sandbox helps in developing, testing and tweaking the commercial technology of the Fintech firms. This regulatory compliance of Bahrain enables the companies to test and refine their technique without the pressure of the usual regulatory and financial requirements which would otherwise apply to their activities.

The notable features of this sandbox are:

  • The regulatory sandbox is open to existing CBB licensees as well as to entities or firms that do not hold a license issued by the CBB (both Bahraini and foreign). Such non-licensed companies or entities may include financial sector companies as well as technology and telecom companies; professional services firms which work with or service financial institutions; and any other type of applicant working within the financial services industry and considered acceptable by the CBB.
  • The regulatory sandbox is open both to existing FinTech solutions which have already been tested within a lab environment, as well as to ideas and solutions which are yet to be fully developedand
  • The time allotted for an applicant to remain within the regulatory sandbox is a maximum of nine months (with the possibility of an entirely discretional extension of three months).
  • The CBB may limit the testing of the product or service by the applicant regarding the number of volunteer customers and the amounts involved.

 

The eligibility criteria:

  • Innovativeness: the technology should be genuinely innovative or expressively diverse to existing elucidations within the Bahrain market,
  • Customer benefits: it should offer tangible benefits directly or indirectly to the customer,
  • Technical testing: this is only for existing technology, the firm offering with existing technology should have obtained technical testing with the results to be provided to the CBB or produce an external validation from a reputable third party,
  • Ready for regulatory testing:Applicants are obligated to show evidence of a thriving regulatory testing plan which includes highlighting of the key risks the solution poses; details of how these will be alleviated; and details of sufficient safeguards to protect customers.
  • Post-testing deployment in Bahrain. The applicant should exhibit their aim and ability to deploy the projected solution in Bahrain by way of submission of a Sandbox exit strategy (to include specific details of proposed scale-up and future deployment).

 

The application procedure:

The applicants have to submit a written application using the standard template issued by the CBB for the sandbox regulatory compliances in Bahrain, and they should provide the following details:

  • A description of the applicant’s organization as well as its corporate structure, key business lines and centers, and its financial standing and technical expertise;
  • The proposed innovative financial solution, and how it satisfies the eligibility criteria
  • The information as to the type (and number) of volunteer customers to be included in the applicant’s sandbox testing; how they will be sourced, and proposals to protect the volunteer customers and their privacy;
  • Key performance indicators and targets which will be used to determine the success of the testing
  • The cybersecurity and other relevant measures to be applied by the applicant to maintain security of the solution service or product; and
  • The applicant’s exit plan, plans for development and deployment strategy, together with a timeline of steps to be taken to meet the additional legal and regulatory compliances in Bahrain after exiting the regulatory sandbox.

 

The CBB reserves the right to relax the requirements according to the applicant’s situation. The applicants are required to adhere to the relevant CBB regulations with regards to Know Your Customer (KYC), Anti-Money Laundering (AML) and Countering Financing of Terrorism (CFT). Also, the funds received by the applicants from the volunteer customers, required to be entrusted to the handling of CBB licensed retail banks.At the end of the designated period, the applicant can apply for appropriate CBB license depending on the precise activities of the applicant.

The introduction of the new framework and the creation of a dedicated FinTech Unit within the CBB are consistent with Bahrain’s sustained focus on promoting the kingdom as the emerging FinTech and financial services hub of the Middle East region. At the same time, the defenses built into the regulatory compliance in Bahrain will ensure the required level of consumer protection and regulatory oversight which have long established Bahrain as one of the leading financial sector hubs in the GCC.

Visit www.intuitconsultancy.com to know about regulatory compliance

Read More

Singapore shows accelerated growth in the third quarter
  • Newsletter

Singapore shows accelerated growth in the third quarter

Singapore has witnessed a rapid growth boost in the third quarter as the Gross Domestic Product(GDP) registered a growth rate of 8.8% over the expected growth rate of 6.3% and the GDP of the year was at 5.2 % than the estimated 5%. The stabilization of the global trade has boosted the growth of the country’s economy like Singapore’s economy is mainly dependent on the growth of the worldwide economy.

The growth of the economy has further spread into the industries like services where there is a boom in the company formation in Singapore thereby enabling the Government to review their projections for the year.

 The Trade Ministry of Singapore is of the view that the growth of the GDP will rise more in the current year by basing the calculations on the new company registration in Singapore and emerging markets worldwide as well as the U.S market. The growth of exports is expected to diminish a little in the year 2018 as per the report of International Enterprise Singapore is supposed to have an increase of only 0 to 2 percent.

The domestic businesses will fare well with Singapore company formation as the labor market is also improving. As the economy of Singapore is mainly supported by the manufacturing industry, company registration in Singapore will prove beneficial for home-basedentrepreneurs. However, the third quarter saw a boom in company registration in Singapore of the sectors of business services and the retail segment.

 Experts also expect the economy of U.S to “pick up slightly.” because of the buoyant labor force and consistent business growth in the Eurozone and the neighboring country of China will have moderate increase.

The hitch to this robust growth of Singapore would be the uncertainty surrounding the U.S policy, persistent protectionist sentiments and high tension surrounding the Republic of North Korea. Experts are of the view that the recovery of Singapore is broadening in various sectors slowly and steadily.

To know more about Company formation in Singapore reach us at [email protected] or log on to www.intuitconsultancy.com

Read More

OECD aware of strengthening Global economy and shifts its focus on the private sector for its unprecedented growth
  • Newsletter

OECD aware of strengthening Global economy and shifts its focus on the private sector for its unprecedented growth

According to the latest report of OECD, the Global economy has enhanced due to the monetary and fiscal reasons and has shown a broad and coordinated improvement of growth in most of the countries.

Experts estimate that the economic trends of 2018 would also be on the rise, but at a slower pace as the, there are long-term challenges of creating more resilient economies to sustain the challenges of future. OECD is now focusing on the prolonged growth behavior of the private sector which also include investment, production, and trading. The employment levels are far above the pre-crisis level and yet are to produce robust real wage gains. The economic trends of 2018 if not explicit, can spell weakness for the global economy in 2019.

The debt of household and corporate are creating vulnerabilities and making sustainability a questioning factor in the medium term. The Economic Outlook for OECD is advocating an integrated approach while tackling all the issues of macroeconomic policy and a change in the structural systems. The OECD is of the opinion that the Global economy would benefit from healthier and robust financial system that would reduce the tax bias towards debt, open equity markets and clear out the problem of the insolvency regimes. Making the supply of housing more fluid and removal of tax subsidies for housing requirements would alleviate the tendency of sudden boom or fall in the market.

The projection of OECD for the global economy for the current year is at 3.7 percent, while for the year 2017 it was at 3.6 percent and the same percentage is expected for the year 2019.

The OECD has also predicted the percentage of the economic trends of 2018 and 2019 for the following countries:

Countries 2017 2018 2019
The United States of America 2.2 2.5 2.1
Eurozone 2.4 2.1 1.9
Germany 2.5 2.3 1.9
Italy 1.6 1.5 1.3
France 1.8 1.8 1.7
The United Kingdom 1.5 1.2 1.1
Japan 1.5 1 1
Canada 3 2.1 1.9
China 6.8 6.6 6.4
India 6.7 7 7.4
Russia 1.9 1.9 1.5
Brazil 0.7 1.9 2.3

The growth in the United Kingdom is unpredictable as the political situation of the country remains unstabilized, and the growth of Japan is hit due to the reasons of fiscal consolidation and the decline in the working-age population is on the rise. The major economies are on the mend even though China still maintains a softer lead due to a recession in the major export products. The economic trends 2018 of India seem brighter as the Government introduces new age reforms to accelerate the growth of the economy.

OECD is of the view that an integrated policy approach will steady the global economy which will boost growth, moderate risks in the financial sector and increase resilience.

Read More

The benefits of the DIFC Special Purpose Company (SPC)
  • Newsletter, U.A.E

The benefits of the DIFC Special Purpose Company (SPC)

The Dubai International Financial Centre (DIFC) is a prominent center for intercontinental companies that are having its base in the Middle East, Africa, and Asia. The DIFC Special Purpose Company (SPC), in particular, has become a favored method for either Islamic or a conservative, structured company formation in Dubai, and also for the acquisition, retention, and removal of an asset or for obtaining the financing over an asset as part of Dubai Company Registration.

An SPC is a company that is limited by its shares and is incorporated under DIFC law. The company so registered enjoys the benefits of no foreign ownership restrictions and no obligation to lease separate office space, coupled with a zero tax environment. However, every SPC must appoint a Corporate Service Provider (CSP) that is registered in the DIFC to be responsible for its registered office address, majority directors, and a corporate Company Secretary.

As merger and acquisition activity continues to develop in the UAE, there is a proper scope for Dubai company registration, and the SPC’s provide a legal and robust framework for company registration in Dubai.

The Dubai Investment Development Agency offers significant benefits regarding the protection of definitive beneficial ownership and the control of the transactional structure, while also satisfying the criteria of a  company’s due diligence and corporate governance obligations.In concrete terms, there is no requirement to lease office space, to maintain, file and audit accounts, or to conduct an AGM.

An SPC, incorporated in the DIFC, is beneficial for parties looking to invest in other Gulf Cooperation Council (GCC) jurisdictions outside the UAE, who wish to be incorporated within the DIFC’s globally oriented and English-speaking supervisory and legal system. It provides compatibility to the multifaceted structures with other offshore and onshore authorities and is treated as a ‘national company’ where it is wholly-owned by UAE nationals.

This DIFC Special Purpose Company is boon for investors looking forward to placing their company formation in Dubai and still be part of the international business.

For company formation in DIFC log on to www.intuitconsultancy.com or mail us at [email protected]

Read More

  • Newsletter, Oman

Checklist for Oman VAT implementation

The GCC council has set the stage for VAT implementation from the start of this year or in the first quarter of 2018, and the member states of the United Arab Emirates and Saudi Arabia have issued a formal announcement and implemented VAT law in their respective provinces.VAT in GCC comes with a certain flexibility,and the member states can take advantage of this flexibility to draft VAT law according to their local business and regulatory regime.

Oman is yet to implement VAT, and businesses should seek guidance to avoid penalties and issues of non-compliance. They should have adequate knowledge to tackle the potential scenarios of VAT in Oman like the updating of accounting and IT systems and revision of contracts. As the VAT liabilities are self-assessed, it often leads to severe penalties or interference in daily business activities.

Along with the other member states, Oman is planning to levy a 5% VAT  which is also an indirect tax levied in every stage of economic activity in the supply chain, and this move is a game changer in the area of the indirect tax levy.

Here are some of the ways through which a business can prepare for the forthcoming announcement of VAT in Oman:

  • Calculate the impact of VAT In GCC and VAT in Oman if the business has an extensive presence in GCC or just in the state of Oman.
  • Assess whether the business comes within the mandatory threshold, if yes what are the provisions and steps to be taken for the VAT compliance,
  • Develop a resourcing plan to estimate the necessary work and updating of the systems to accommodate the requirement of the VAT.
  • Review and revising the internal framework of the business, and internal VAT compliance teams for monitoring and devising reporting mechanisms,
  • Review and update the existing contracts to include the VAT requirements and ensure all the involved parties are aware of the responsibilities of reporting and accounting of VAT provisions.
  • Including the necessary contractual revisions in the existing contracts and appraising the vendor of the changes required in managing VAT costs in vendor contracts or future pricing rate in customer contracts.
  • Training employees on VAT compliance and the updating practices of IT and governance,
  • Review and implementing the necessary changes in the business framework and models,
  • Review and updating of the existing and future contractual arrangements with a view of accommodating the VAT law in the with an effect that might impact on the corollary obligations.

 

These are the changes that business to absorb the provision of VAT in Oman and maintain its position in the market post VAT in GCC.

For more information on VAT implementation in Oman, reach our consultant at [email protected] or log on to www.intuitconsultancy.com

Read More

  • Newsletter, VAT

Effect of VAT in existing construction contracts of UAE

The construction companies are now faced with the dilemma of VAT registration and VAT impact in these pre-existing construction contracts as they time of implementing the VAT is drawing near. The GCC council have fixed the implementation of VAT as of January 1, 2018.

The VAT law contains standard rules that accommodate this type of scenario, but these procedures address not all circumstances. The executive regulations, which will provide further details on the transitional provisions, are expected to be issued during the fourth and final quarter of this year. 

The VAT registration law decreed that if the supplier supplies goods after the implementation date but has received the payment before the effective date, then those transactions come under the purview of the VAT. Even if the trade happens before the effective date but does not have the clause of tax, then it comes under VAT.

The yet to announce administrative regulations might provide an exception in circumstances where the recipient is also VAT registered and can recover the VAT.The supplier would be entitled to add VAT to the contract price and shift the VAT burden to the recipient, who in turn would be eligible to deduct the input VAT on their VAT return. 

Here all you need to know VAT registration in Dubai?

The ground rule is, however, that the supplier will bear the liability of VAT, unless the contract states otherwise, or the executive guidelines provide exclusions allowing a supplier to charge VAT where the supply is to a VAT registered recipient.

Calculation of VAT:

The original payment of VAT payable to the Government is calculated on the contract price that was set before the inclusion of VAT, even though the contract has no mention of VAT addition in the amount. If the contracting company is in the process of VAT registration, the treatment of this pre-existing agreement is expected to be specified in the pending notification of the Government.

The prediction of VAT announcements:

It is expected that the VAT law will provide a detailed solution for contracts that were accepted and finalized before the implementation date and the services supplied after the effective date. The notification is expected in the coming days and is expected to provide clarity on implementation and treatment of VAT issues. If any company is entering into a contract before January 1, 2018, then it is prudential to include the necessary provisions for VAT.

For support on VAT registration in UAE reach our consultant at [email protected]

Our Latest Articles:

Read More

  • Newsletter

The logistics infrastructure advantage of Oman against other players in the Middle East

Oman is fast becoming the logistics hub of the Middle East as it has a strategic position of air, sea and road travel. The government of Oman has invested major growth strategies in improving the logistics operational hold of the country and has invited external investors. The port sector is the most benefited sector in the State of Oman. There are immense opportunities for company formation in Oman as the logistics advantage provide a stronghold for the company’s growth.

The sea advantage:

The main viable ports in Oman are situated in Sohar, which lies in the middle of Muscat and Dubai, and Salalah, which sits on the southern coast of Oman entrenched on the Arabian Sea. Company looking for expansion to Oman can capitalize on this port for ease of sea access.As the Government of Oman is recalibrating the shape of its economy away from hydrocarbons, the trade between Oman and Qatar has increased by 2000% since June 2017 as logistic companies looking for incorporation in Oman are continuing to be attracted to  Sohar.

The port of Duqum now is the trending port of Oman, and the opportunities for Company registration in Oman is currently very profitable. The Sohar free zone coupled with the Sohar port has opened up immense opportunities for companies looking for expansion to Oman.

The  Port of Salalah has continued to be one of the largest integrated ports in the region and recently jumped 14 places in the Lloyd’s Maritime Intelligence List of the world’s top 100 ports following a 29% increase in activity during 2016. The port of Salalah benefits from its uninhibited site on the southern coast of Oman, joining India and the East with Africa.

The Air advantage:

The Muscat airport is currently receiving fewer visitors annually, but with the new up and running Muscat airport, there is expected to be over 12 million visitors annually. Plans are already happening to steadily increase annual passenger load to 48 million passengers per year so that the Government can fulfill its vision of having Muscat airport among the world’s top 20 airports by 2020. 

Following the development of Salalah airport, which can be expanded to accommodate six million passengers annually, links will be enhanced with Duqm, Muscat, and the more extensive GCC. Following the formation of Salam Air in 2016 which is  Oman’s first low-cost airline, Oman’s overall air conveyance frame has vastly improved for trades and sightseers alike. This has made company expansion to Oman all the easier.

The road advantage:

Oman is well connected by roads and was recently ranked by the World Economic Forum in the top eighth place and the second place in the GCC which reveals the generous financial assurance the Government has made to achieve and maintain this high-quality road infrastructure. These high-quality roads will help in lessening the travel time and facilitate better logistics between the GCC states. The logistics advantage will help achieve a better profit for investors looking for company registration in Oman.

The rail network:

Oman national railway network is estimated at 2,135 km in length and has been designed to serve mixed freight and passenger traffic linking the essential ports at Sohar, Duqm, and Salalah to the rest of Oman. The areas of Salalah and Duqm are considered to be the dominant areas of progress for the country.

China has been working with Oman to revive the maritime silk route, and this route will benefit China, Central Asia, Persia, Arabia, Africa and Europe. This is known as the One belt initiative,and Oman is the most benefited recipient of this proposal. This project has brightened up the prospects of Oman being the major logistics hub of the Middle East.

For company formation in Oman reach our consultant at [email protected] or visit www.intuitconsultancy.com

Read More

  • Newsletter, Saudi Arabia

The workings of the Shari’ah law in the operations of personal and corporate guarantees

The Kingdom of Saudi Arabia (“KSA”) is a sovereign Arab state whose final code is the Shari’ah. The Shari’ah is an assortment of principles resulting from different sources, but predominantly the Holy Qu’ran and the Sunnah. As the KSA has not adopted a civil law system, no primary legislation governs financial transaction guarantees in the KSA.

The working of the KSA law for different case scenarios are summarised as follows:

In case of primary obligations of the guarantor:

The guarantor has a secondary responsibility when compared to the principal person, and if the principal is released from the guarantee, the guarantor is also not liable. In the case where the dealing with the primary person is declared void, the guarantor’s obligations are declared void as well. If the principal’s dealing does not satisfy the KSA Shari’ah law, then the eventuality of claiming from the guarantor is not enforceable.

The need for hard copies:

If the dealing is recorded in hard copies, the transaction will be accepted under the KSA law.NO soft copies of fax, telex, bank wire transfer or any other means of electronic communication is accepted in the KSA law. It is prudential for the lenders to gather evidence in the way of hard copies and not depend upon the electronic means of communication.

The favour of ruling:

KSA law is known to favour the guarantor’s as they take on the position as the guarantor’s takes on an obligation not because he has to but because he can. If the lender delays initiating a procedure against the guarantor then, Banking Disputes Settlement Committee in the past has been found to understand that any delays on the part of a lender to use its rights against a guarantor can be interpreted as a waiver of the lender’s rights against the guarantor.

Full and specific guarantee:

KSA law favours contract that has specified the reason for the contract and is of the view that the contract should have a date of expiry. The contract should not have a general obligation involving all the monies guarantee clause as they might face obstacles in enforcing this agreement.

Governing body:

The KSA law and other adjudicatory system do not conventionally identify the applicability of foreign law irrespective of any agreement between the parties in respect of authority and applicable laws. Based on this reason lenders should be prepared to enforce a guarantee provided by a KSA entity in the KSA.

Final word:

KSA law is quite clear on its stand regarding the personal and corporate guarantees; the lenders should take comprehensive guidance about the KSA law before entering into these contracts.

Read More

  • India, Newsletter

India is all set to become a Gold Mine for investors

With greater digitization and formalization of financial activities and businesses, India is set to become an “extremely attractive” country to do business. These were the words of Arun Jaitley the honourable Finance Minister of India. Addressing the emissaries at the Singapore Fintech Festival, he further acknowledged the short-term challenges for the country in executing premeditated initiatives such as demonetization and the GST. He also emphasized that the companies looking forward to Company formation in India or to do Incorporation in India will be a recipient of massive benefits as the country is moving towards the digital revolution with an increase in digital payments that are coupled with the Goods and Service Tax (GST).

The implementation of Aadhaar system, which is the single most extensive biometric system introduced by a country in the world, will also result in enormous benefits for companies looking forward to their company registration in India. The Aadhaar has now been even linked with financial transactions to ensure the digitization move of the country.

This ongoing process of digitization with the coupling of Aadhar and demonetization has resulted inan extremely attractive climate for company formation in India. Mr. Jaitely also accentuated the benefits of the company registration in India and attracted the attention of the audience in the Singapore FinTech Festival.

He furthermore went on explain the position of India in the World Bank rankings of the ease of doing business. India has moved 30 notches in this index and has entered into the top 100 places in these rankings. He also acknowledged the challenges that will be faced in the areas of demonetization and the successful implementation of GST.

‘But I have not the least doubt in my mind that the medium to long-term, this is bound to produce long-term returns as far as the Indian economy is concerned,” said Mr. Jaitley.

He also further detailed that in the medium to long term these moves of India would be very beneficial for companies looking forward to expansion in India or for company incorporation in India. The economy of India is growing at a rational rate, and the growth of the economy in all spheres with the organizational changes are resulting in the expansion of tax coverage.

For company formation in India reach our consultant at [email protected] or visit www.intuitconsultancy.com

Read More

  • Newsletter, Oman

The BEPS inclusive framework gets a new member – Oman

Oman is the second country of the Gulf Cooperation Council (GCC) to join the BEPS framework of the OECD. The BEPS framework is the acronym of Base Erosion and Profit Shifting initiative. This initiative is on the lookout for curbing painful taxation procedures.

The Sultanate of Oman is the 104th country to join this prestigious council. The BEPS framework aims to curb the taxation and present the following steps:

  • Measures against harmful tax practices (Action 5)
  • Model provisions against treaty abuse (Action 6)
  • Transfer Pricing documentation and Country-by-Country Reporting (“CBCR”) (Action 13)
  • Enhancing dispute resolution through Mutual Agreement Procedure (“MAP”) (Action 14),


This step will lead to the alteration of the Oman tax law, and Oman has to revise its tax framework to include these four steps. Oman also has to provide inputs and recommendations to BEPS council and pay an annual fee. The joining of Oman in the BEPS is predicted to bring some changes in the Oman tax law system.

Experts are expecting changes in the following areas:

  • The Omani authorities will increase their focus on the benefits before signing any treaty or providing any benefit for the citizens or tax exemption for the foreign entities.
  • At present, Oman tax law has provisions in Transfer Pricing, but the Omani authorities are lax on the filing of on any credentials. The rules allude to the point that the trades should be at Arm’s Length price. Nevertheless, the Omani tax authorities are partial to the fact that the Taxpayer has to provide detailed TP documentation during the assessment proceedings. With the more significant emphasis on TP as part of the BEPS measures, and CBCR (Country by Country) as one of the necessary standards, it is likely that requirement of correct credentials may be introduced in Oman tax laws.
  • Oman should work closely with other affiliate countries to monitor the execution of BEPS. This action will enable the taxpayers to have access to adequate and practical dispute resolution mechanisms under bilateral tax treaties.
  • More comprehensive disclosures to ensure clearness.
  • Supplementary compliance requirements.


In due course of time, Oman might also issue judicial modifications emphasizing the timelines about submissions, the extent of legal changes and the hands-on need to, prioritize the BEPS measures and implement these measures before the official announcement.Therefore, it is a prudential move for the entities in Oman to start preparing for the impact that might arise from the effect of BEPS instead of waiting for the formal announcement.

For more information reach our consultant at [email protected]

Read More

Follow Us

Recent Posts

Get updated by Signup
to our Newsletter!

IMC Logo

Get Started

About

Locations

© 2025 IMC Group. All Rights Reserved.

IMC Logo

About

Get Started

Locations

© 2024 IMC Group. All Rights Reserved.

IMC Logo

Get Started

About

Locations

© 2024 IMC Group. All Rights Reserved.