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Category Archives: News

Migrants of Oman Allowed to Buy Units in Multi-Storey Buildings

Transfer of Funds From India to UAE

Transfer of Funds From India to UAE: Globally, most countries employ foreign exchange controls to check both the outflow and inflow of currency from one place to another. As such, in India, the Foreign Exchange Management Act (FEMA) of 1999 and the Directions issued by the Reserve Bank of India are the foreign currency controls. So if you are residing in the UAE and a non-resident of India willing to transfer funds from India, this article can help you with it. There is no need for prior approvals from authorities except for the ones being listed in this article. The current article gives you a glimpse about the regulatory procedures for remitting funds from India to the United Arab Emirates.

Fund remittance from NRO accounts

As per Regulation 3.2(i) of the FEMA (Remittance of Assets) Regulations of 2016, the Indian government allows remittance of up to USD 1 million a financial year from an NRO's account. The individuals are expected to submit Form 15 CA and 15CB for remittance from an NRO account. This is to ensure that any tax liability on the funds is extinguished before remittance. This is to make sure such tax liabilities are eased as Indian authorities would find it challenging to pursue tax liabilities if the funds are transferred abroad. Form 15 CA deals with the undertaking by the individual to remit funds. At the same time, 15CB is the certification of such undertaking by an authorized chartered accountant. The disclosures in both forms are the same. In case of the remittance amount being lesser than 15 lakhs, Form 15 CB is not required. One can submit Form 15CA online at the Indian Tax Information Network Website (www.tin-nsdl.com). The individual will be provided with an acknowledgment of submission and is expected to retain that as it would be needed constantly. Upon submission of the Form 15CA, the individual appointed Chartered Accountant must fill in Form 15CB, certifying that all tax liabilities are fulfilled. The nature of funds to be remitted, which may be through interest, dividends, proceeds of the sale, etc., is also specified in the form. In this stage, the Chartered Accountant makes sure if the individual falls under any Double Taxation Avoidance Agreement. A Double Taxation Avoidance Agreement allows individuals to come under a lower tax slab and is deducted from the money to be remitted. The general rate that applies is 30%. Even though the procedure is online, it is difficult to do so from outside India as form filling and filing requires consultations with Chartered Accountants along with signature of the individual in the hard copies of the Forms.

Remittance proceedings from a property sale

The Regulation 4(2) of the FEMA (Remittance of Assets) Regulations, 2016 allows individuals to remit amounts as far as USD 1 million from the sale of properties inherited through succession. The following procedures mentioned above should be followed. In case of a property purchased by the NRI earlier and being disposed now, the Regulation 5(A) of the FEMA (Acquisition and Transfer of Immovable Property in India) Regulations, 2000 applies, which requires the following conditions to be met.
  • The individual should have acquired the property in par with the foreign exchange law in force at the time of acquisition or the provisions of these regulations
  • The repatriated amount should not exceed
  1. The amount paid during acquisition in foreign exchange and paid through normal banking channels
  2. Amount paid from funds in foreign currency Non-Resident Account
  3. Equivalent to foreign currency as on the date of payment and made from the funds held in Non-Resident External account for the acquisition of the property
  • The repatriation of sale proceeds is restricted to two in the case of residential properties.
The NRI is also expected to seek approval from the RBI before remitting any proceeds from India's sale of purchased properties.

Money Remittance by Foreigners who are not NRIs/PIOs

In case the individuals remitting money out of India are not Non-Resident Indian or a Person of Indian Origin, only a particular class of foreigners are allowed to remit funds outside India as of Regulation 4 of the FEMA (Remittance of Assets) Regulations, 2016. Such individuals should be
  • retired personnel from employment in India
(or)
  • has inherited property in India
(or)
  • a non-resident widow/widower who has inherited assets from the deceased spouse, who was an Indian citizen
Even then, the remittance by such individuals should not exceed USD 1 million. This is not limited to sale proceeds of assets held on a repatriation basis. In case of remittance in installments, it should be routed through the same bank that carries the first remittance.

Conclusion

The Foreign Exchange Controls in India monitors the inflow and outflow of funds leading to the tedious process of fund remittance outside India. The assistance of those with knowledge in the relevant procedure and regulations is often required. In recent days almost all nations are concerned about the funds leaving their country compared to fund inflow. Hence it is always advisable for individuals to take help from qualified professionals to navigate through the regulatory processes in case of fund transfer across countries.

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Make a Top Virtual Destination by Investing in Dubai Real Estate

Make a Top Virtual Destination by Investing in Dubai Real Estate

The initiative of ‘Invest in Dubai Real Estate’ has been launched by the Dubai Land Department, through its Real Estate Promotion and Investment Management Sector by cooperating with the Strategic Holding. This serves as a virtual destination for the real estate industry with its prominent real estate promotion initiatives held in Dubai. The initiative launches its very first virtual edition to unveil unprecedented interactive features from 11 to 20 November 2020 providing an unparalleled, intriguing experience for the global real estate community. You will be Interested : Real Estate Business Setup in Dubai The investment plan of Dubai Real Estate, desires to be the best virtual destination towards the industry, that uses the most advanced virtual technology along with a digital platform for advancing the real estate industry in Dubai. Additional networking opportunities arrive for the Dubai real estate market by investing in Dubai Real Estate. The safe and secure virtual environment partners the Events with 10X to eradicate the barriers. It also stimulates connectivity among exhibitors, investors, developers and professionals across the globe. The aim is to maximize the investment opportunities of the local real estate market by developing an ultimate goal to boost the sustainability and economic progress in Dubai.

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UAE Issues Landmark Reforms to Civil - Criminal Law

UAE Issues Landmark Reforms to Civil – Criminal Law

Major reforms are announced covering women's safety, inheritance, suicide, alcohol consumption, and Good Samaritans. The changes made to the civil and personal code is going to make it easier for expats to boost multiculturalism and to settle disputes. This follows a decree by the President, His Highness Sheikh Khalifa bin Zayed Al Nahyan This comes into effect immediately. These amendments are introduced to the Civil Procedure Law, the Personal Status Law, the Criminal Procedure Law, and the Penal Code.

Expats wills and inheritance

Expats dealing with issues like inheritance can now use the Personal Status Law of his/her home country. If a will is already in place, then that is to be followed and respected.

Good Samaritans

People who make unintentional harm while trying to help others are now not held accountable by the new law modifications.

Suicide

Self-harm and suicide are usually punishable by law. These amendments put forth refers people harming themselves to mental health treatment.

Alcohol Consumption

Under the new modifications, alcohol consumption is not a crime. Earlier a person in possession of alcohol can be charged if caught in another criminal act. A person has to be 21 years of age to consume alcohol legally, which can be done only in private or in public at licensed businesses.

Honor killings

Leniency in honor killings has been removed and the cases are subjected to penal code.

Cohabitation for unmarried couples

Under the new law, cohabitation for unmarried couples has been allowed which was prohibited earlier. Unmarried couples and unrelated flatmates sharing the same accommodation was prohibited previously.
Is a local partner mandatory to start a business in the UAE?

Is a local partner mandatory to start a business in the UAE?

In Dubai & the rest of the UAE it is legally required to have a local partner (UAE national) for entrepreneurs and SMEs looking to invest in a Mainland company or LLC company for the first time. The local partner should hold the majority interest (51% shares) and maintain a controlling stake in the business for all activities that come under commercial or industrial licenses. This type of business start-up with a local partner is called a local LLC. Nevertheless, in the UAE, entrepreneurs and investors who apply for a professional services license have a simple way of getting complete ownership of the business. You only need a national service agent (NSA) who is fundamentally a local sponsor who does not have ownership but should be paid some sort of fixed-payment often as an annual fee in such cases. Registering your company in one of the free zones in the UAE is yet another option and here there is no necessity for NSA. Black Swan is your preferred choice to help in setting up business in UAE, Oman, Mauritius and UK . We can support you in all types of company registrations here and we make it easy for you to start your company. You need not worry about business start-up in a free zone. We at Black Swan, Help you in connection with the best sponsor or Partner in the UAE.

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Prohibition cigarette sale not having red digital TAX stamps across UAE

Prohibition of cigarette sale not having red digital TAX stamps across UAE

Selling or owning of cigarettes not having ‘Red Digital Tax Stamps’, according to the FTA, Federal Tax Authority is likely to get banned w.e.f. from 1st August, 2019 across local market. This is to sync with the deadline set for ‘Marking Tobacco & Tobacco product scheme’ that went live from 1st January 2019. Decision No. 03 / 2018 was issued by the FTA pertaining to implementation of Marking Tobacco & Tobacco Products Scheme, seeking tracking of cigarette packs electronically, right from production facility to consumer end. This is to combat tax evasion, safeguard consumers from poor quality products and to ensure prompt settlement of due Excise Tax on such products. The Authority recently had called on all the cigarette importers, producers, consumers and dealers in the UAE and instructed them to comply with this Decision Order, so as to avoid paying penalties that are otherwise clearly outlined in Violations of Procedures to Apply Digital Tax Stamps on Tobacco & Tobacco Products related with the recent Cabinet Decision. FTA’s objective here is to curb all attempts to commit commercial fraud as well as safeguard consumers from being sold with inferior products which only might harm the environment as well as their heath. It also can combat tax evasion effectively. Two kinds of Digital Tax Stamps had been approved according to the FTA. The first is Red, which is to be placed upon the tobacco product packaging and sold at local markets, including duty-free arrival lounges. Green is the second type that has been earmarked for those tobacco products that are sold at departure, duty-free lounges. General Khalid Ali Al Bustani, the FTA Director had highlighted relevant Taxable persons’ remarkable response towards Digital Tax Stamps procedures. Several training workshops had been organized by the concerned Authority to train inspectors at the Economic Development Dept. and Local Customs Dept. across the UAE, thereby exploring “Procedure and Objectives’ to implement Marking Tobacco & Tobacco Products Scheme.” The workshops trained the candidates to be better equipped to carry out the assigned inspection campaigns, to ensure ban on sale of cigarettes of all types are complied upon, especially of those not having Digital Tax Stamps. This scheme is to become effective on 1st August 2019 and to be initiated in the local markets. Such courses as per Al Bustani are likely to contribute significantly towards successful new Scheme implementation, thereby facilitating inspections. It also strengthens the market and ensures prevention of sale of those products not having met tax obligations. The tobacco products are to Digital Tax Stamps on its packaging and be registered within the FTA database. Data present in the Stamp can be read using dedicated equipment given to the authorized inspectors. They are in charge to make sure that all due taxes on such products are paid on time. The FTA representatives during the workshop session provide valuable information on Decisions and legislation with regards to the Scheme, which also includes Cabinet Decision No. 42/2018 pertaining to Marking Tobacco & Tobacco products, thereby outlining mechanism to place Digital Tax Stamps, thereby indicating payment of Excise Tax. In case, the product is manufactured in the UAE, then Stamps are to be placed upon the products at the production facility itself, right after packaging. If produced abroad, then Stamps are to be placed before importing them as determined by the FTA. All businesses that supply and manufacture tobacco and related products and subjected to Excise Tax were called upon by FTA Director General to comply sincerely with the Scheme and to cooperate with Authority, so as to assist with effective and accurate implementation. Decision is said to support efforts of FTA to combat tax evasion and collect taxes along with relevant entities to safeguard Taxable Persons’ rights as well as to ensure greater procedure transparency, which governs dealing with the FTA.
license-fee-cutoff-at-JAFZA-Free-zone-uae

License fee cut at Jebel Ali Freezone – Dubai

Administration and license registration fee has been recently slashed by Jebel Ali Freezone owner DP World for those businesses who are operating in this freezone area. Cuts are expected to be around 50% to 70%. According to the MD & CEO of DP World, UAE Region including Jafza’s CEO Mohammad Ali Muallem, this timely move is sure to instill greater confidence among our customers to pursue their business targets without much hindrance and with greater purpose and confidence. This cut focuses to create opportunities and establish values, allowing companies to channelize their available resources, helping them to sustain their operations. We are of the strong belief that this initiative taken can help companies to carry out its business much smartly, creating more employment and business opportunities. Over 7,500 businesses are registered currently in this freezone. Contributions made towards Dubai’s GDP by DP UAE World operations are around 33.4%. More investments are expected in this port and freezone. Landmark Group, the previous year had launched logistics & distribution hub amounting to Dh1 billion in this freezone. Jebel Ali Port also witnessed launch of a chemical terminal project with AquaChemie pumping in Dh150 million. With cuts made in the fee, other freezones located within the emirate are sure to be prompted to take such similar steps providing ample relief to businesses operating in the region. Al Muallem further added that Dubai’s economic development has further progressed with trade & commerce and DP World is considered to be a pivotal player to support it. Our flagships Jebel Ali Freezone & Jebel Ali Port are connected quite closely with the companies that have opened up its business here and provide them with the latest infrastructure facilities as well as investment incentives, helping them to stay connected with the global markets. Setup your Business in JAFZA Freezone with the help of Business Consultant in Blackswan

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Digital development of UAE in the post Covid Era

Digital development of UAE in the post Covid Era

Digital development of UAE in the post Covid Era: The United Arab Emirates has always been ahead of time and developed the country in a forward-thinking capacity. While it already had plans to digitally transform the entire country, it is speeding up its plants in this time of the pandemic. With corona virus everywhere, people are going to depend on digital means to carry out their everyday lives. To help the citizens of UAE, The country means to develop digitally exponentially.

The UAE government urges investors to invest in the digital economy sector. This sector will be fundamentally be built around 5G technology. 5G is the latest development in the telecom and industry which will change the face of staying connected, in terms of quality and in speed.

While there have been several sectors in the UAE economy that have been hit hard, such as tourism, real estate, petrochemicals and aviation; there definitely have been parts of the economy that have benefited from the fall of the CoVid-19 pandemic. These fields include e-commerce, digital entertainment industry, retail shopping, technology and internet service providers. Looking at this as a clear opportunity, encouraging investments in these bountiful sectors is sure going to prove beneficial.

The UAE consumer internet trends revolve around searching for online delivery and online grocery availability throughout the seven Emirates. The government is picking on these trends and building many e-commerce services available to the citizens. The UAE already provides multiple services online. These services include paying parking ticket fines, and getting residency visas with a touch and tap on the phone!

The search trends also include “online courses” and “work from home in Dubai” which mean that people do know that they can’t step outside and want to go on with their lives without this pandemic causing a halt in the lives. Eventually, a search drop indicated that the people found what they were looking for. This gives even more reason to develop digitally and step up the employment rates.

The UAE already had several long-term plans in the running, such as the Smart City Dubai 2021, the Artificial Intelligence Strategy 2031, National Innovation Strategy, and the Blockchain Strategy 2021, all of these aid digitally. The groundwork done by these turned out to be extremely helpful in the case of this pandemic and made the switch to digital dependency easy, dynamic and efficient. Not only does this enhance the social well being of the country, but it also makes it environmentally sustainable.

https://www.youtube.com/watch?v=H1eDbLv5Q7s&feature=emb_title

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UAE sets out legal overhaul of personal and family law

UAE SETS OUT A LEGAL OVERHAUL OF PERSONAL AND FAMILY LAW

The government of the UAE has made the biggest reforms in the legal system in years. The changes in the family law and other laws were announced on Saturday with immediate effect. This revision of the laws will mirror steadily in the measures to improve living standards and making UAE a destination for people all around the world along with foreign direct investment. The new amendments made to the existing laws allow expats to have their personal affairs dealt with under their home country laws. There are around 200 different nationalities in the UAE and the reforms made in the laws relate to wills and assets, divorce and separation, alcohol, women protection, suicide. These changes being made means the Islamic law or Sharia is rarely used when it comes to family law cases that involves expatriates. A persons' country of origin laws is used for inheritance, and divorce according to the new changes. Divorce and Inheritance A significant development in case of divorce and assets breakdown has been made. In case of a couple married in their home country, filing for a divorce in the UAE, the laws of the country where the marriage took place will be applied. Under the new law joint account and assets are mentioned, and mediation by the court can take place if both parties are not in agreement. Modifications in wills and inheritance are also made. Previously the assets of a deceased person were found to be divided under the Sharia, which the expats are unused to. With the amendment, the citizenship of the person determines the partition. But, if there is a written will things take place according to it. In cases of property purchased in the UAE, it is managed according to UAE law. Non-Muslims in Dubai are registering their wills at Dubai International Financial Centre’s wills and probate registry. This is linked to the government but not to Dubai's state-run civil courts; whereas non-Muslims in Abu Dhabi are registering their will at the Emirate’s Judicial Department since 2017. Suicide According to the new amendments, suicide and attempted suicide are not punishable by law. Previously such people who survived were prosecuted, instances being rare. The new amendment ensures vulnerable people be sent to mental health support centers, but anyone found assisting attempted suicide will face a jail sentence. The new law also ensures that people who end up hurting a person while trying to help a person in need are not held accountable. Earlier under the aforesaid conditions, the one who hurts a person unintentionally while trying to help in case of need was punishable. Assault and Honor crimes Hereon, there are no honor crimes, where a male relative gets a lighter sentence while assaulting a female relative. These incidents are treated as crimes. Also, severe punishments are being put forth against women's harassment, and this includes stalking and street harassment. Also, the law acknowledges that men could be victims of stalking and harassment. Punishments in case of rape of minors or one with limited mental capacity are executed. Alcohol According to the new laws, alcohol consumption is no longer a criminal offense, and people who drink, possess, or sell alcohol in authorized areas without an alcohol license are unpunishable. Earlier persons are charged if found consuming alcohol while getting arrested for another criminal offense. In order to consume alcohol legally in the UAE, a person must be 21 years of age, and anyone selling alcohol to an underage person is found guilty. Alcohol consumption should be done privately or in licensed public places. Abu Dhabi ended the alcohol license system for its residents during September, and this federal law is now applicable to all the emirates. The cohabitation of unmarried couples The law now allows legal cohabitation of unmarried couples, previously which was illegal. Judicial procedures The new law requires providing translators for defendants and witnesses in court in case they do not speak Arabic. The court ensures the presence of legal translators. The new privacy law ensures that pieces of evidence of indecent acts are protected and are not publicly disclosed.
Differences between Dubai Mainland and Dubai Free Zone Business Set Up

Differences between Dubai Mainland and Dubai Free Zone Business Set Up

Differences between Dubai Mainland and Dubai Free Zone Business Set Up: It can get quite confusing to not know where to start you business in Dubai, whether on the mainland or in the free zone and what are the differences?

Dubai Mainland companies are licensed and incorporated by the Department of Economic Development (DED) and can do business locally and internationally without any restrictions. Whereas, business companies in the Dubai Free Zone are limited to functioning only in that zone of the respective emirate and cannot expand into the mainland. Upon comparison of the criterion that suits you well, you can make the decision of where to set up your business in Dubai.

The Scope of Business

Mainland Company: There are no restrictions. It can do business in the local market, free zone or go international.

Free Zone Company: The FZ companies can only do business withing the free zone of the emirate or outside of UAE, on international grounds.

Ownership

Mainland Company: A local sponsor is needed to incorporate the business, and the expat partner can only hold 49% of the shares and 51% goes to the UAE local body.

Free Zone Company: CAn be hundred percent owned by the expet partner and doesn’t need a local body for representation.

Office Space Restrictons

Mainland Company: Business owners need to lease at least 200 square feet of space annually and submit an annual tenancy contract.

Free Zone Company: No restriction on having an office space. Businesses can be incorporated without office space and can use the communal business centres for up to five hours a week to save initial setup costs.

Visa Facility

Mainland Company: There are no restrictions on getting visas. An Electronic quota is established for the business, through which more visas can be obtained if the need for staff is more.

Free Zone Company: Upon getting the smart office package, 2 visas can be obtained. But depending on the free zone, 3-6 visas can also be obtained.

https://www.youtube.com/watch?v=dyD9QCJc1-0

Capital Requirement

Mainland Company: It varies depending on the form of the legal business entity.
Free Zone Company: It varies depending on the emirate in is located in.

Auditing

Mainland Company: All businesses in the mainland need to audit every year.

Free Zone Company: There are exceptions in the free zone. Not all have to audit except the FZ Co and FZE.

Government Approvals

Mainland Company: For every license that business in the mainland gets, an approval is needed from the respective authority - (Department of Economic Development), DM(Dubai Municipality), Ministry of Labor (MOL), Department for Naturalization and Residency affairs of Ministry of interiors or Immigration (MOI).

Free Zone Company: The do not require approvals from authorities outside of the free zone, there is an internal governing body.

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Regulations to fly a drone in the uae

Regulations to Fly a Drone in the UAE

Regulations to Fly a Drone in the UAE: Flying a drone may seem like a simple, negligible activity. But not in UAE. In UAE, there are several restrictions as to where, when and who can fly the drone. The UAE government keeps in its highest regards the safety of its citizens, so instead of mitigating a disaster, they take necessary actions to prevent it. Not only for the safety, but the flying of drones is regulated so that the privacy of the citizens can be protected.

Registration

For anyone to fly the drone in the country, a registration process needs to be done. This is regulated by the General Civil Aviation Authority (GCAA) and to register one needs to visit their website and follow the instructions. The drone operator/owner needs to undergo a test in the training grounds of Sanad Academy. Only upon scoring a successful 85% or above will the operator be certified and eligible for a drone license. Upon submitting the license and drone number to GCAA, the operator card will be issued.

No-Fly Zones

Drone operators are not allowed to fly the drones in, around or over airports, especially to avoid air traffic and prevent the safety of the lights. In addition to that, flying over residential areas is also off-limits, to protect the privacy of the people. Further, each drone operator must install the UAE Drone Fly Zone Map App to always keep in check whether they are in the green zones.

Flying for Recreation

Keeping in mind that the drones are registered, they can only be below 5 kilograms (11 pounds). They cannot be equipped with drop and release mechanisms and should always stay in the line of sight and not more than 400 feet above ground level. Collision with objects or people or other aircraft must be avoided.

Flying for Professional and Commercial Purposes

Drone operators when flying for commercial purposes must obtain operational approval before each time they make use of the drone. The application must include whether or not the use of capturing devices will be involved. The operational areas under this category include Aeriel Work, Agriculture, Air Show, Fire fighting, Inspection, Media, Petroleum, Protecting Wildlife, Screening, Surveillance, Survey, Weather forecasting.

Laws and Penalty

Article 69 of the UAE law states that a person can be imprisoned up to one year or/and be fined as much as fifty thousand Dhirams if found that the drone operator does not have a license or that it has been expired. Other rules include that the aircraft cannot be manned when the operator is inebriated/drunk, and the drone cannot damage any aeronautical communication facilities or navigation aids on the ground amongst other specifics. Article 70 states that a person can be imprisoned up to three years or/and be fined as much as a hundred thousand Dhirams if found that the person doesn’t bear the nationality of the country. Flying over restricted areas, airports, and territory of the State falls under defying this law. Using a drone as an aid to carry ammunitions or any weapons and committing or even intending to commit a felony is punishable.

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