Dubai Lawyers: September 2019

Sunday, September 15, 2019

Prescribed Companies Regulations

In the latest news in Dubai, DIFC or Dubai International Financial Centre has just introduced a new regulatory framework that leads to the formation of prescribed companies. The new regulation effectively combined Special Purpose Companies (SPCs) and Intermediate Special Purpose Vehicles (ISPVs) into one category. They would not be considered as prescribed companies that will enjoy reduced fees and more opportunities to expand in Dubai.

The new prescribed companies regulatory structure allows companies to start building their own business in DIFC with more freedom and fewer office requirements.

These companies would now include firms under the Dubai Financial Service Authority (DFSA) and those businesses considered as International Financial Services Regulator. Not only that, but Family Offices, Fintech firms, Aviation Companies and other businesses within the Holding and Investment Companies and structured finance would be eligible to fall under prescribed companies. Healthcare companies in Dubai can also possibly take advantage of this new DIFC regulation.

For existing companies, they would still continue to exist as they are but they would use prescribed companies as their additional structuring tool to set up beneficiaries or subsidiaries.

Another great development from the new regulation is the reduction of fees. This means that the annual licensing fee would now be set to $1,000 or approximately Dh3,670. Before, licensing fees may range from $1000 to $3,500. Incorporation fee would also be set at $100.

The new DIFC announcement is considered to be revolutionary by many business setup consultants in Dubai. By replacing SPCs and ISPVs and combining them in a unified business structure, more companies would be attracted to investing in Dubai. Not only that, but the DIFC announcement gives more opportunities for companies to access the Middle East, Africa, and South Asia (MEASA) region.

Are you planning to set up a company in the UAE?

Check out some informative articles that may help you with your planning.

For a quick and easy process of company formation contact or visit us today!

Sunday, September 8, 2019

Scam Alert: new bank

The Dubai Financial Services Authority (DFSA) issued a scam alert and warns the public for a new bank scam that claims you can get an easy loan with them. The scam works by asking unsuspecting customers to pay a certain fee in exchange for a guaranteed approval loan.

In a public service announcement, the DFSA specifically named the scammer as “Skyo Microfinance Bank Limited.” To convince people into transacting with them, they present false Certificate of Incorporation from the DFSA.

They would request victims to pay first for the insurance and administrative fees. Once they get the money, they would then promise the victim that they will receive the loan. However, they would soon become unresponsive and would eventually be gone with the victim’s money.

The Skyo’s fake Certificate of Incorporation is now posted in DFSA’s website to increase the public’s awareness about this new scam. DFSA and legal consultants in Dubai urge people not to give their money to Skyo Microfinance Bank Limited nor should they get in touch with any individuals representing this dubious company.

To help you avoid getting scammed, it is important to stay updated with the latest news in Dubai. You can also check with the relevant regulatory agency. You should be able to confirm if the company you are dealing with is legitimate or not.

Are you planning to set up a company in the UAE?

Check out some informative articles that may help you with your planning.

For a quick and easy process of company formation contact or visit us today!

Sunday, September 1, 2019

New Sponsorship Policy for Expats

Family sponsorship policy in UAE has taken a positive turn this year. Here’s good news for a lot of expatriates or expats in the UAE: they can now have a better chance to bring their dependents in the country.

This follows the new family sponsorship policy known as the Cabinet Decision No. 30 for the year 2019, which was announced last July. In the past, the ability of an expat to sponsor a family member is based on his/her job titles. Thus, sponsorship is not for everyone but only for the select few.

With new family sponsorship policy for expats, a UAE resident or expat, regardless of their gender, can now sponsor a family member by simply meeting a minimum income requirement. If an expat earns at least a monthly salary of Dh4,000, then he/she can sponsor his/her spouse and children who are under 18 years old.

Moreover, the minimum income requirement can also be reduced to Dh3,000 provided that the accommodation of the one who will be sponsored is handled by a company. This new regulation has been approved by the Federal Authority for Identity and Citizenship (FAIC).

A lot of people praised the decision. For one, it encourages families in the UAE to grow closer and social ties become stronger. With the new policy, the UAE was able to give more freedom to expats when bringing in their loved ones without compromising the interests of the country.

As you can imagine, the old policy only favors those expats who gain a certain career level or those who have been promoted to a higher position. For example, a skilled worker can have many years of experience and increased salary grade. Yet, they still can’t sponsor their loved ones just because they hold a lower position.

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Are you planning to set up a company in the UAE?

Check out some informative articles that may help you with your planning.

For a quick and easy process of company formation contact or visit us today!