UAE Events Affecting SubsidiariesMar 02, 2016
Last year witnessed a tremendous amount of change for multinational companies operating subsidiaries in the UAE. Below are some events taking place this year that we are red-flagging that may affect the way you are running your subsidiaries in the UAE.
Last week the UAE government has confirmed it and the five other members of the Gulf Cooperation Council will introduce a 5% VAT in 2018.
2. Wages Protection System
The Wages Protection System is an initiative to safeguard payment of workers' wages via transfers through selected financial institutions that will be authorised as well as regulated by the government. As a result UAE companies defaulting on salaries will soon be a thing of the past.
3. New Commercial Companies Law
We reported last year on the new Companies Law that came into effect on July 1st 2015. The purpose of the Federal Law No. 2, also known as the New CLL is to provide a legal and lawful expansion of the UAE’s development into a global market. This includes becoming a business environment that raises the levels of good corporate governance, the protection of shareholders, and the promotion of social responsibility of companies. In short, it seeks to bring UAE business practices squarely into an international, 21st century business world. By doing so, the UAE will boost the competitiveness of their economy, settling into one of the top positions on the Global Competitiveness Index.
4. EXPO 2020
It is estimated that Dubai's Expo 2020 win will attract billions of dollars of investment to the UAE. This includes new multinational companies entering the UAE market.
Please talk to us if you have any questions on how these events will affect the maintenance of your subsidiaries in the UAE.