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    INVESTMENT

    Article No.20
    Dubai, UAE
  • UAE legal system: Paving the way for progress

    Government initiatives that have helped modernise
    the UAE legal framework

Starting Your UAE Business Adventure? Here's What You Need to Know

Sun-soaked beaches, iconic landmarks, and a thriving business ecosystem – the UAE has it all. If you've been dreaming of setting up shop in this dynamic hub, there's some exciting news to enhance your business journey. The new Decree-Law provisions are designed to offer a seamless start for entrepreneurs like you. Let’s break it down!

  • 1. Crystal-Clear Financial Health with Auditing

  • Whether you're thinking of launching a Joint Stock Company, Limited Liability Company, or any other business form in the UAE, understanding your financial position is paramount. With the new regulations, annual audits are in place for these companies. Think of it as a yearly health check for your business, ensuring you're on the right path.

  • 2. Global Financial Language: International Accounting Standards

  • Globalization is the word of the day. As you set your sights on the UAE market, know that adopting International Accounting Standards isn’t just a mandate—it’s a competitive advantage. By ensuring your accounts resonate with global practices, you're not just compliant; you're making your business relatable to international partners and investors.

  • 3. Empowering Stakeholders with Information

  • If you're considering partnerships or attracting shareholders for your UAE venture, transparency is key. The Decree-Law champions this cause by ensuring every stakeholder can freely access the company’s latest audited accounts. It's a powerful move to instill confidence and trust from day one.

  • 4. Special Mention for Securities Buffs!

  • For those of you eyeing the financial markets, take note! Only Joint Stock Companies have the green light to issue negotiable shares, bonds, or sukuk in the UAE. And remember, offering securities for public subscription is reserved exclusively for Public Joint Stock Companies.

  • Embark on Your UAE Business Journey!

  • Navigating a new business landscape can seem daunting. But with the UAE's clear, entrepreneur-friendly regulations, you have a roadmap for success. As you set sail on your business adventure, these provisions ensure you have the tools, transparency, and trust to thrive.

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Published: March 20, 2023 06:50
By Ghassan Makki at Gulf News
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    INVESTMENT

    Article No.20
    Dubai, UAE
  • UAE legal system: Paving the way for progress

    Government initiatives that have helped modernise
    the UAE legal framework

Unlocking the Business Potential of the UAE: A Comprehensive Guide

The UAE's gleaming skyline isn't just an architectural marvel – it's a testament to its robust business landscape. Entrepreneurs from around the globe are drawn to its promise of growth, innovation, and endless possibilities. If you're contemplating setting up a venture in this dynamic nation, the revised Decree-Law lays out a well-defined pathway for your ambition. Dive in with us!

  • 1. Your Company's Fiscal Journey – Defined and Simplified

  • Every company, be it an established conglomerate or a fledgling startup, operates on a fiscal calendar. In the UAE, the first fiscal year can span anywhere from 6 to 18 months, starting from your company's entry into the Commercial Register. Subsequent years will run in 12-month cycles. This structured approach ensures you have ample flexibility in your maiden year and consistency thereafter.

  • 2. Demystifying Profits and Losses – Fairness in Focus

  • How profits and losses are distributed can often be a point of contention in business. The UAE emphasizes clarity and fairness. If your Company's Memorandum doesn't specify profit or loss distribution, it's proportionate to a partner's contribution. No more ambiguities or surprise clauses. And remember, any clause depriving a partner of due profits or shielding them from losses is null and void, safeguarding everyone's interests.

  • 3. Going Public? Here’s What’s New

  • For businesses with an eye on going public, there are clear boundaries. Only Public Joint Stock Companies can offer securities for public subscription. It ensures a controlled environment, prioritizing the interests of potential investors and maintaining market integrity.

  • 4. Keeping Up with the Registrar – A Digital Transformation

  • The future is digital, and the UAE is at the forefront. Every company's data, from its trade name to commercial license, will be notified to the Registrar. With provisions for electronic document submissions, it's all about efficiency and ease. Moreover, the Registrar ensures protection and accessibility, with stakeholders able to request specific company details or certificates, fostering an environment of transparency.

  • Let the UAE Business Odyssey Begin!

  • With its rich blend of tradition and modernity, the UAE is a land of opportunity for every entrepreneur. And with the latest Decree-Law, it offers a structured, transparent, and supportive environment to translate your business dreams into reality.

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Published: March 20, 2023 06:50
By Ghassan Makki at Gulf News
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    INVESTMENT

    Article No.20
    Dubai, UAE
  • UAE legal system: Paving the way for progress

    Government initiatives that have helped modernise
    the UAE legal framework

Discovering the UAE's Business Oasis: Transparency, Innovation, and Growth

The shimmering deserts of the UAE hide more than just natural wonders; they encapsulate a booming business hub ripe with potential. As international entrepreneurs seek fertile ground to sow their business seeds, the UAE unveils a landscape characterized by clarity, technological advancement, and equitable growth. Here's a snapshot of what awaits you in this modern business paradise:

  • 1. The Accountability Quotient - Audits and Standards

  • With a commitment to world-class business practices, every Joint Stock Company or Limited Liability Company in the UAE is mandated to have their accounts audited yearly. Moreover, all companies are encouraged to align with International Accounting Standards, ensuring global-level credibility and trust.

  • 2. Sharing the Pie – Profit with Principle

  • Navigating profit and loss distribution is made simpler in the UAE. With a stress on fairness, partners are entitled to profits proportional to their capital contribution unless stated otherwise. Any agreement that tries to deviate from this equitable distribution is rendered null, making certain that everyone gets their fair slice.

  • 3. Pioneering the Digital Frontier – Registrar's Revolution

  • The UAE embraces the digital age with open arms. The Registrar's regulation is testament to this, as companies transition to electronic document submissions. It's not just about speed but also about security and transparency. Whether you're looking to delve into a company's trade history or seeking specific company certifications, the Registrar has got you covered.

  • 4. Investing with Insight – Safeguarding Stakeholders

  • For businesses on the brink of expanding their footprint, the UAE establishes clear boundaries. Securities, bonds, or sukuk are the domain of Joint Stock Companies, ensuring controlled market activities. This vigilant approach ensures that the interests of potential investors remain safeguarded, and market integrity is maintained.

  • UAE – The Business Dreamland Awaits!

  • The UAE isn't just about luxury and opulence; it's a beacon for business brilliance. With the Decree-Law acting as a guiding star, the journey of setting up and scaling your enterprise is streamlined, ensuring your voyage is smooth, secure, and successful.

  • UAE: Where Business Dreams Take Flight

  • From the glimmering skyline of Dubai to the bustling port of Abu Dhabi, the United Arab Emirates presents a tapestry of opportunities for businesses, big or small. As the world leans towards globalization, the UAE stands tall as a testimony to how vision combined with robust regulatory frameworks can transform a desert into a business utopia. If you're envisioning your business dream, here's why the UAE should be on your radar:

  • 1. The Tale of Trade Names: Creating Distinct Identities

  • In the vast business oasis of the UAE, maintaining a unique identity is crucial. The nation ensures that no two trade names overlap to an extent that leads to confusion. It's not just about ensuring clarity but celebrating the uniqueness of each business venture.

  • 2. The Future is Digital: Seamless Integration with Modernity

  • The push towards digitization is not merely a trend in the UAE but a norm. The Ministry's provisions, which promote the submission of documents via electronic channels, ensure that the business processes are not just efficient but also eco-friendly. It’s about making every interaction, every transaction, a little smoother and a lot smarter.

  • 3. Transparency at its Best: Accessing Crucial Data

  • For businesses, especially those new to a market, accessing accurate and timely data is invaluable. The Decree-Law facilitates this by allowing interested parties to request specifics set out in registers kept by the Registrar. It’s not just about transparency; it’s about empowering businesses with the right knowledge.

  • 4. Return on Investment: Favorable Fiscal Frameworks

  • With clearly defined fiscal years and stipulations that protect shareholder and partner interests, the UAE offers a stable and reliable financial landscape. This ensures that businesses can strategize, operate, and grow with a clarity seldom found elsewhere.

  • Unfurl Your Business Wings in the UAE!

  • The UAE is more than its iconic landmarks and stunning vistas; it's a dynamic business hub where dreams are nurtured, and visions are realized. With the Decree-Law acting as a sturdy foundation, businesses can soar high, knowing that they are backed by a system that values innovation, fairness, and growth.

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Published: March 20, 2023 06:50
By Ghassan Makki at Gulf News
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    INVESTMENT

    Article No.20
    Dubai, UAE
  • UAE legal system: Paving the way for progress

    Government initiatives that have helped modernise
    the UAE legal framework

Understanding the UAE's Joint Liability Companies: Key Highlights

If you're considering setting up a Joint Liability Company in the UAE, it's crucial to understand the country's Commercial Companies Law that governs them. Sapph-x brings you a comprehensive guide to understanding the core aspects of Joint Liability Companies in the UAE, making your business setup and corporate structuring process smoother.

  • 1. What is a Joint Liability Company?

  • According to Article 39 of the UAE commercial companies law, a Joint Liability Company consists of two or more physical partners. These partners are jointly and severally liable with their personal assets for the company's obligations.

  • 2. Naming a Joint Liability Company

  • Your company's name should consist of the name(s) of one or more partners, followed by the expression "Joint Liability Company" or its abbreviation. Be cautious: including the name of a non-partner without their knowledge can make them liable for the company's obligations (Article 41).

  • 3. Memorandum of Association

  • This critical document must contain detailed data, from partner information to profit and loss distribution percentages (Article 42). Ensure you cover all required points to avoid any legal issues later.

  • 4. Incorporation Procedures

  • The UAE has clear steps for the incorporation of Joint Liability Companies (Article 43). From submitting the application to the Competent Authority to providing necessary documents, the procedure is streamlined. Note the specific time frames mentioned for various processes; adhering to these can save you from potential setbacks.

  • 5. Company Management

  • The management of the Joint Liability Company is primarily undertaken by all partners. However, the Memorandum of Association can delegate management to specific partners or even non-partners (Article 45).

  • 6. Competitive Works

  • Partners should not engage in activities that compete with the company's operations without written consent from other partners (Article 46). Any profits from such unauthorized activities must be returned to the company.

  • 7. Role of the Manager

  • The manager plays a pivotal role in a Joint Liability Company. Their appointment, dismissal, or resignation can have significant implications. Articles 47, 48, and 49 shed light on the manager's position, emphasizing the importance of clear terms in the Memorandum of Association and any appointment contracts.

  • Conclusion

  • Establishing a Joint Liability Company in the UAE requires a thorough understanding of the country's commercial companies law. As your trusted business setup and corporate structure partner, Sapph-x aims to simplify these complexities, ensuring you have a strong foundation for your entrepreneurial journey in the UAE.

Read more
Published: March 20, 2023 06:50
By Ghassan Makki at Gulf News
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