New UAE law to help people facing financial issues

New-Law-in-UAE-2020

UAE Formulated New Law To Help People Facing Financial Issues

Debt-ridden individuals will be protected from criminal prosecution and instead offered support to repay debts within three years, according to a new UAE law.

The UAE Cabinet approved a new Federal Law on Sunday to regulate cases of insolvency.

The new law will protect debtors from legal prosecution, decriminalize the financial obligations of insolvent persons, and offer them an opportunity to work, be productive and provide for their families.

According to legal experts, the law is the end of ‘bad news’ for people faced with spiralling debts.

“This will stop people with financial difficulties from running away from the country,” said Ashish Mehta, founder and managing partner of the legal firm in UAE.

Social workers hailed the law saying ‘it is a great gift’ to many families knee-deep in debt.

The law, which will enter into force in January 2020, will assist debtors in settling their financial obligations through one or more experts, to be appointed by the court.

It will support individuals who are facing existing or anticipated financial difficulties, rendering them unable to settle their debts. Individuals will be allowed to reschedule their debts and will have the opportunity to avail of new concessional loans.

The laws aims at enhancing the competitiveness of the UAE by ensuring the ease of doing business, creating favourable conditions for individuals facing financial difficulties and protecting those who are unable to pay their debts from going bankrupt, Wam reported.

The law is part of the government’s efforts to ensure convenience for citizens and residents, and respond to their needs.

The experts appointed by the courts will coordinate with the debtor and creditors to come up with a plan, lasting no longer than three-years, to settle the financial liabilities and fulfil all obligations stipulated in the plan.

During this period, the debtor will be prevented from taking any loans until the court decides, upon the request of the expert, the debtor or any of the creditors, that the implementation of the plan has been accomplished.

The law also contains special provisions that contribute to the swift completion of legal procedures and reduces the fees charged for rescheduling and restructuring the debts, with a view towards finding a fair compromise for both creditors and debtors.

The legislation not only contributes to enhancing the credit-worthiness of the country and its future growth prospective, but also enhances the competitiveness and strength of its economy, thus ensuring and enabling an environment that encourages entrepreneurship and provides favourable conditions for doing business.

The law, which complements existing financial laws, will contribute to increased transparency, in terms of civil debt repayment transactions, and will ultimately strengthen the UAE’s position as an ideal hub for investment, where the rights of all parties are guaranteed.

“The law essentially gives some hand-holding for individuals and assures them that there is no need to cross the coast. I will say this is fantastic news,” said lawyer Ashish Mehta.

According to him, when people take extreme measures like running away from the country to escape debts or legal prosecution, they leave a trail of losses that affects hundreds or even thousands including his clients or employees.

“That will stop now as the law gives them a breathing space to restructure their debts and rebuild their lives. And in turn, this will also boost confidence of businesses and investors as there will be more confidence in the market.”

“More than just helping businesses, this is a great humanitarian gesture,” said Naseer Vadanapally, a social worker based in Dubai.

“I know cases where debts have driven people to extreme measures like suicide. In fact, mounting debts and harassment from banks were the reasons for the majority of the suicide cases I had dealt with in the past.”

According to him, families will hugely benefit from the law because most of them are eager to negotiate and settle their debts so that they can continue to live and work in the UAE.

Courtesy to Khaleej Times

New UAE law to help people facing financial issues

New Law in UAE 2020

UAE Formulated New Law To Help People Facing Financial Issues

Debt-ridden individuals will be protected from criminal prosecution and instead offered support to repay debts within three years, according to a new UAE law.

The UAE Cabinet approved a new Federal Law on Sunday to regulate cases of insolvency.

The new law will protect debtors from legal prosecution, decriminalise the financial obligations of insolvent persons, and offer them an opportunity to work, be productive and provide for their families.

According to legal experts, the law is the end of ‘bad news’ for people faced with spiralling debts.

“This will stop people with financial difficulties from running away from the country,” said Ashish Mehta, founder and managing partner of the legal firm in UAE.

Social workers hailed the law saying ‘it is a great gift’ to many families knee-deep in debt.

The law, which will enter into force in January 2020, will assist debtors in settling their financial obligations through one or more experts, to be appointed by the court.

It will support individuals who are facing existing or anticipated financial difficulties, rendering them unable to settle their debts. Individuals will be allowed to reschedule their debts and will have the opportunity to avail of new concessional loans.

The laws aims at enhancing the competitiveness of the UAE by ensuring the ease of doing business, creating favourable conditions for individuals facing financial difficulties and protecting those who are unable to pay their debts from going bankrupt, Wam reported.

The law is part of the government’s efforts to ensure convenience for citizens and residents, and respond to their needs.

The experts appointed by the courts will coordinate with the debtor and creditors to come up with a plan, lasting no longer than three-years, to settle the financial liabilities and fulfil all obligations stipulated in the plan.

During this period, the debtor will be prevented from taking any loans until the court decides, upon the request of the expert, the debtor or any of the creditors, that the implementation of the plan has been accomplished.

The law also contains special provisions that contribute to the swift completion of legal procedures and reduces the fees charged for rescheduling and restructuring the debts, with a view towards finding a fair compromise for both creditors and debtors.

The legislation not only contributes to enhancing the credit-worthiness of the country and its future growth prospective, but also enhances the competitiveness and strength of its economy, thus ensuring and enabling an environment that encourages entrepreneurship and provides favourable conditions for doing business.

The law, which complements existing financial laws, will contribute to increased transparency, in terms of civil debt repayment transactions, and will ultimately strengthen the UAE’s position as an ideal hub for investment, where the rights of all parties are guaranteed.

“The law essentially gives some hand-holding for individuals and assures them that there is no need to cross the coast. I will say this is fantastic news,” said lawyer Ashish Mehta.

According to him, when people take extreme measures like running away from the country to escape debts or legal prosecution, they leave a trail of losses that affects hundreds or even thousands including his clients or employees.

“That will stop now as the law gives them a breathing space to restructure their debts and rebuild their lives. And in turn, this will also boost confidence of businesses and investors as there will be more confidence in the market.”

“More than just helping businesses, this is a great humanitarian gesture,” said Naseer Vadanapally, a social worker based in Dubai.

“I know cases where debts have driven people to extreme measures like suicide. In fact, mounting debts and harassment from banks were the reasons for the majority of the suicide cases I had dealt with in the past.”

According to him, families will hugely benefit from the law because most of them are eager to negotiate and settle their debts so that they can continue to live and work in the UAE.

Courtesy to Khaleej Times

Searching for a Business Sale

Selling-Your-Business-uae-dubai

There may come a time when you decide to sell whole or part of your business and the reasons behind your decision can vary. You want to retire or the next generation are not interested in going into the family business. You may even contemplate selling part of your business for strategic purposes for example selling to get access to new markets or obtaining equity investment enabling the business to grow and add greater value to it.

Whatever the reason behind your decision to sell business owners should plan ahead before putting the ‘for sale’ sign up and inviting bids. If looking to sell in 5 years’ time for example then in the run up period one should ensure that the business is running efficiently as it can.

The importance of cost efficiencies

Focus on cost efficiencies and control and tidy up the balance sheet. So follow up on any old debts or sell any redundant assets. Working capital management is important as you don’t want cash tied up. Essentially you want to ensure that you are getting maximum value for your business when it comes to selling. It will only improve your position if efficiencies are brought in during the negotiating period.

Ensure that all financial and tax filings are up to date and be able to demonstrate a history that these have been filed on time. Reliance will be placed on the financial statements so have if they have been independently audited then this will add credibility to them.

By having a strong management team in place, the business should be able to continue trading once you are out of the picture. It is important to remember it is the business that you are selling not you and the business has to be able survive with you.

Review your client portfolio

Review your client portfolio, as clearly if the business is reliant on small number of customers then this will impact on the valuation, so ideally you should look to have broad customer base in place before you sell. Where there is a concentration on a small number of clients then a prospective buyer will want to see the strength of that relationship, for example copies of signed contracts. Remember the prospective purchaser wants certainty that customers will be retained.

Prepare a realistic forecasts and future cash flows of where you see the business going. Undoubtedly there will be some assumptions that will be challenged but if you are able to demonstrate the strength of client relationships (e.g. signed contracts) and a history of growth then this should help you when challenged.

Make sure you get the right advice and support from professional advisers. Undoubtedly there will be various complex accounting, tax and legal issues that will arise. You may not recognise these and you don’t want them coming back to haunt you. It is therefore important to have the right accountants and legal advisers to guide you along. Alya Auditors can surely help you out in all you business needs.

For more information then please contact us on 052 475 4007 or email us at audit@alyaauditors.com .

Who is eligible and how to apply for the UAE’s 10-year golden residency visa

Golden Visa in UAE

Golden Residency Visa in UAE

Thousands of residents have been receiving their long-term residency visa, but how can you get one?

The golden card is a long-term residency programme announced by Sheikh Mohammed bin Rashid, Prime Minister and Ruler of Dubai, in May. Not long after its launch, more than 400 investors and businesspeople, including some of their families, had already been granted the visa, with dozens more receiving it each day.

Sheikh Mohammed said 6,800 investors and residents, worth an estimated Dh100 billion, and from 70 countries, were chosen to receive the visa.

Why was the programme created?

The idea is to create an attractive investment environment in the UAE, to encourage business development and draw in new talent.

Long-term residents who have contributed to the country’s development are also being rewarded for their loyalty and encouraged to continue investing in the UAE.

The golden card was initially billed as a permanent residence system but the General Directorate of Residency and Foreigners Affairs has since clarified that it is in fact a long-term, 10-year visa that renews.

Is there such a thing as a permanent residency visa in the UAE?

Typically, the UAE does not grant permanent residency visas to expatriates but the golden card is a renewable 10-year visa, so the end result is the same.

On Tuesday, Maj Gen Mohammad Al Marri, Director General of the General Directorate of Residency and Foreigners Affairs, said the visas would be renewed in 10-year increments.

“After 10 years, [the visas] are continuous for another 10-year period every 10 years. There are medical insurance and other procedures that need to be done in between but it comes without any extra conditions,” he said.

He said the visa would be renewed so long as residents continued to satisfy the terms and conditions under which they were granted the visa.

But if investors decreased in worth or their business failed within those 10 years, “things would be looked at on a case-to-case basis”, Maj Gen Al Marri said.

Golden card holders can travel freely as there is no minimum requirement for staying in the UAE – for example, if the golden card carrier leaves the UAE for longer than six months, their visa would still be valid.

Who is eligible for the golden card?

In May 2019, the UAE Cabinet approved 10-year residency visas for five categories of expatriates: investors, entrepreneurs, chief executives, scientists and outstanding students.

Maj Gen Al Marri said there was no age restriction on applicants.

“Here in the UAE we never look at age, colour, nationality or any other social circumstances. We are dealing with people as humans and not nationalities. We are all equal with no differentiation,” he said.

It was announced that executives with a salary of Dh30,000 or more can apply for the visa, too. The applicant should have at least a bachelor’s degree or its equivalent and five years of work experience. They must also have a valid employment contract.

What requirements must foreign investors meet?

At least one of the conditions below must be fulfilled:

  • A deposit of up to Dh10 million in an investment fund in the UAE.
  • Owner of a company with Dh10m in capital or a partner in a company with a share of up to Dh10m.

In addition, all of the conditions below must be met:

  • The investment fund must be fully owned rather than funded through a loan. Proof must be provided.
  • The investment should be held for at least three years.
  • The investor must provide a comprehensive insurance document for themselves and their family.

What are the requirements for entrepreneurs?

  • Must own a successful project valued at Dh500,000 or more in a certified field in the UAE.
  • Must have approval as a certified business incubator who founded the project
  • Must provide a comprehensive health insurance document for themselves and their family.

Looking For Golden Visa in UAE ?

Alya Auditors provide services to investors in UAE to apply for investor visa in UAE. Alya Auditors helps the Investors in the UAE  to obtain their investor visa by providing executives, professionally dealing with PRO services who can effectively in line accomplish the procedures, rules and regulations. A professional is always necessary to guide you to a pathway of different phases that you would come across and coordinate to progress and finish all the procedures successfully with precision.

Alya Auditors provides Company Formation Services in the Mainland, in the Free zone  and Offshore as well of UAE. The Company Formation Services for investors will allow them to obtain a business license as well as Investor visa for the investor and their families.

Alya Auditors  is one the leading business consultancy and audit firm in the UAE, envisaging meticulousness in the services we provide. Our Company Formation Division has well experienced professional executives who are well versed with the rules and regulations of Company Formation laws / Visas in the UAE. Our Auditors are the best among the other Auditors and Audit firms in UAE.

courtesy to the national uae 

FTA in Digital Tax Stamp inspections in UAE

FTA in Digital Tax Stamp inspections

Digital Tax Stamp Inspections in UAE by FTA

New UAE campaign to raise awareness about Marking Tobacco and Tobacco Products Scheme

The UAE Federal Tax Authority (FTA) has conducted two simultaneous awareness and inspection campaigns — to verify compliance with the Marking Tobacco and Tobacco Products Scheme.

The move has come during the first month since the ban on selling cigarettes not bearing the Digital Tax Stamps in local markets went into effect.

The stamps, placed on cigarette packages, allow for tracking of the products from the manufacturing facility until they reach the end consumer.

The objective is to protect consumers from low-quality products, combat tax evasion, and ensure all excise taxes due on tobacco products have been paid, officials said, in keeping with Cabinet Decision No. (42) for 2018 on Marking Tobacco and Tobacco Products, and FTA Decision No. (3) of 2018 on the same subject.

If Violations are Detected

In a press statement issued on Sunday, the authority explained that several violations were detected in August 2019 in a campaign that included 20 inspection trips conducted in collaboration with departments of economic development in all seven emirates and covering 530 retail outlets.

Furthermore, the FTA asserted that all necessary procedures were taken to ensure that violators comply with regulations in the future.

The FTA noted that as of May 1, 2019, a ban was enforced on importing cigarettes into the UAE if they did not carry the Digital Tax Stamps.

Then on August 1, the sale and possession of unmarked cigarette packets was prohibited in local markets, in keeping with the implementation timeline that began on January 1, 2019.

The Authority saod two types of Digital Tax Stamps were approved, the first of which is red and designated to be placed on cigarette packs authorised for distribution in UAE markets and at duty-free for arriving travellers, while the second is green and designed for sales of cigarette packs at duty-free in departure lounges.

FTA director-general Khalid Ali Al Bustani said the new campaign seeks to establish direct communication with dealers and consumers in local markets, and raise their awareness about the importance of full compliance with the “Marking Tobacco and Tobacco Products Scheme”.

He reiterated the Authority’s commitment to enhancing collaboration and coordination with local and federal government entities to ensure compliance with tax regulations, as well as the stability and regularity of local markets.

Awareness among the Public

“The Federal Tax Authority seeks, first and foremost, to raise awareness among Taxable Persons and consumers about their tax rights and obligations,” Al Bustani added.

“We are intensifying our efforts to support businesses and help them comply with tax systems and procedures. They are our strategic partners, and our objective is to enable them to successfully manoeuvre the tax system and self-comply with tax regulations.”

“The campaign is part of the FTA’s efforts to tighten control on local markets, protect consumers and combat tax evasion,” he explained.

“Teams of experts from the authority and departments of economic development in all seven emirates are conducting daily inspection trips to raise awareness of the tax system in general, and the “Marking Tobacco and Tobacco Products Scheme”, in particular, as well as to outline the administrative penalties that would be imposed in the event of non-compliance.”

“The joint expert teams undertake awareness campaigns in shopping malls and retail outlets, urging consumers to check for the Digital Tax Stamps on the cigarettes they purchase, which help verify that they are not counterfeit or low-quality products, and indicate that the dealer has complied with excise tax regulations, thus avoiding any administrative penalties,” the FTA Director General concluded.

As per the Cabinet Decision on violations of procedures to mark Designated Excise Goods, penalties shall be imposed if the Digital Tax Stamps were not fixed on the packaging of tobacco products before supplying them in local markets.

The decision specifies a penalty of Dh50,000 plus 50 percent of the amount of excise tax due, to be collected from any Person possessing or supplying unmarked Designated Excise Goods in the UAE.

Meanwhile, any Person that knowingly allows their facilities in the UAE to be used for the sale of unmarked Designated Excise Goods incurs a penalty of Dh25,000 for a first violation and Dh50,000 in case of repeated breaches.

In the event where a person alters or prints over Digital Tax Stamps placed on Designated Excise Goods, a penalty of Dh50,000 plus 50 percent of the amount of excise tax due is levied.

Meanwhile, if a person fails to report a transfer of Designated Excise Goods, a penalty of Dh20,000 is collected for every time the violation was committed.

Furthermore, non-compliance with the FTA’s requirements for stockpiling Digital Tax Stamps results in a Dh50,000 penalty for every instance.

Looking for FTA Approved Auditors/VAT Consultants ?

1. Auditing Services
We provide year-end annual audit for many DMCC companies at reasonable fee. Our fees are reasonable and affordable by all types of companies.

2. Part Time Accounting Services and VAT Services
We provide Part-time Accounting Services for companies in DMCC Free Zone. You can hire a qualified and experienced part-time accountant from us and minimize your expenses by eliminating your personnel cost.

For More Details : Please visit us on : www.alyaauditors.com or write us to : audit@alyaauditors.com

For Financial Statement Audit,
Alya Auditors
3204, Park Lane Tower, Business Bay, Dubai
Phone : +971 4 876 9377, Mob : +971 52 4754007,+971 52 975 0690

courtesy to Gulf News

Two prominent Emiratis join UAE Internal Auditors’ board

Auditing Firms in Dubai

Internal Audit community helps growth of corporate governance and economic development .

Internal audit is assuming greater importance in better corporate governance and growth of the private and public sector companies which directly boost economic development of the country, members of the UAE Internal Auditors’ Association (UAE IAA) were told.

Addressing members at the Annual General Meeting (AGM) of UAE IAA, Association chairman Abdulqader Obaid Ali said that the audit standard in the UAE has risen to global levels owing to the constant efforts of the UAE chapter which is affiliated to the global body, the Institute of Internal Auditors (IIA).

During the AGM, two new members, Dr. Hanan Al Marzooqi, Governance & Compliance Director, General Directorate of Residency and Foreigners Affairs in Dubai, and Ms. Dana Al Yazeedi, Internal Audit Director, Department of Education and Knowledge in Abu Dhabi, were elected to the Board of Governors of UAE IAA.

UAE IAA, a non-profit organisation of internal auditors, was set up in 1995 along the lines of its parent body, the Institute of Internal Auditors (IIA Global) with 200,000 members from more than 190 countries and organizations. The UAE accounts for about 45% of the total number of internal auditors working in the region, estimated at about 7,000 auditors, of which 22% are Emiratis.

The new members are elected to the board as two board members stepped down on the expiry of their term. The members are elected for a two-year term.

The Governing Board consists of nine members, headed by Abdulqader Obaid Ali as chairman.

The other members on the Governing Board are: Khalid Al Halyan: Vice Chairman’ Dr. Hanan Al Marzooqi: Treasurer; Dana Al Yazeedi: Board Secretary; Ali Al Muwaijei: Ayesha bin Lootah, Ayyoub Al Marzouqi, Mohamed Al Harthi, and Naeima Al Menhali, all board members.

“The two new members on the board bring in vast experience and talent in their chosen field which will immensely benefit the Association in its efforts to broaden its activities for the economic development of the UAE,” said Abdulqader.

ALYA Al Marzooqi Auditing Chartered Accountants(Alya Auditors) as one of the best audit firms in the UAE. They analyze the company structure, working and financial statement; prepare a report and share with the management team. Also, they ask us to make tweaks in the working process so as to reduce risks. Along with this, they organize periodic auditing in the UAE so as to analyze the functioning in more depth.

They have an experienced team of accountants in the UAE who works with you and your management team so as to reduce the chances of error. Moreover, the audit report issued comprises of findings, recommendations, areas of improvement and future action areas.

I would definitely advise the people living in the UAE to consider ALYA UAE for best accounting in the UAE.

Searching For Professional Audit Firms in Dubai ?

Alya Al Marzooqi Auditing Chartered Accountants is the one. Leading CA Firms in Dubai,With its head office at Business Bay & a branch in SAIF Zone.Approved in all the major free zones including DMCC,SAIF,JAFZA,DWC,Maydan etc providing professional services in the field of Auditing , Accounting ,VAT Consultation , Company Formation & CFO services etc. For More Details Contact Us @ Tel : +971 4 876 9377, Mob: +971 52 975 0690, +971 52 475 4007

Alya Auditors assists the registered companies to furnish the annual financial statements . For more information visit us @ www.alyaauditors.com