admin 01/08/2019 No Comments
Unlike other countries worldwide, the laws of the United Arab Emirates (“UAE”) allow for criminal penalties to be imposed on those persons drawing bounced cheques. Article 401 of the UAE Federal Penal Code provides that the drawer of a bounced cheque should be sentenced to detention or fined. Such detention is for a period not less than one month and not more than three years, while the fine is for an amount not less than AED 1,000 and not more than AED 300,000 (fines are payable to the Court Treasury and not to the beneficiary of the bounced cheque).
Due to the severity of penalties, it has always been practical for creditors to obtain cheques from their debtors to secure payment. Such an approach adds a powerful deterrent to prevent non-payment in addition to the civil remedies already available to the creditors upon the default of their debtors. This is complemented by the fact that criminal proceedings are free of cost and are generally faster than civil proceedings.
When a debtor actually defaults, the creditor will have the right to file a criminal complaint for the bounced cheque along with a civil case for recovery. Although, as mentioned this approach gives creditors more security in recovery, it also has the additional consequences of allowing for extreme punishment for low value non-payments and placing stress on the UAE’s criminal legal system and its authorities due to the sheer quantity of bounced cheque cases.
The UAE legislators have always been well known for being proactive in recognizing market practices and practical issues. In a move to adjust the volume of cases which places stress on the Police, Public Prosecution and Criminal Courts, and to address the severity of penalties in low value claims, the UAE legislators have (a) created a new process to address minor crimes such as bounced cheques in an expedited manner by the establishment of “One Day Courts”; and (b) amended the circumstances in which certain bounced cheques are to be punishable by detention.
With regard to the One Day Court, laws have been enacted which provide that certain simple crimes (including bounced cheques) should be dealt with expediently and a decision on such crimes should be issued within 24 hours (hence the name). These courts have been established in the Emirates of Abu Dhabi, Dubai and Ras Al Khaimah and appear to have been successful in significantly lessening the load on the Criminal Courts which will have the impact of allowing those more serious crimes to move through the system.
In addition, the Emirate of Dubai has introduced a new law concerning “Criminal Orders”. This law allows the Dubai Public Prosecution to issue criminal orders to sentence offenders of certain “simple crimes” to fines only (without detention). Objections may be filed to challenge such orders within 7 days. Such objection will refer the matter to the Criminal Courts and the normal procedures shall be applicable.
In practice, the bouncing of a cheque of AED 200,000 or less is categorized as a “simple crime” holding the penalty of a fine not exceeding AED 5,000 to AED 10,000. Accordingly, the drawers of bounced cheques for a value of AED 200,000 (or less) can be sentenced by the Dubai Public Prosecution directly (without being referred to Courts), however, the sentence shall be for a fine only which does not exceed AED 5,000 to AED 10,000 (in practice).
It is not difficult to see the reasoning behind this taking into account the majority of cheques for an amount of AED 200,000 or less would typically be personal cheques (for rent for example) or cheques drawn by Small and Medium Enterprises (SMEs) for small business transactions where a more limited penalty can be said to be suited to the crime taking into account the value.
One of the main reasons cheques are widely trusted and used in the UAE is the fact that such cheques are criminally protected with a potential detention (or a fine). This compels cheque drawers to strive to honour their cheques upon their maturity. Since bounced cheques for amounts of AED 200,000 (or less) are no longer punishable by detention in the Emirate of Dubai, the power in holding these cheques has been limited.
To maintain this power, and where appropriate, it would be sensible to ask business counterparts to only provide cheques for amounts higher than AED 200,000 in order to maintain the potential detention sentences warranted to bounced chequesRead More
admin 24/07/2019 No Comments
When we think about Dubai, the ultra-modern buildings, luxurious supermalls, lavish sports arenas, and staggering theme parks come to our mind. But some might say that all this is superficial, and ask what else is Dubai beneath all the glittering gold and splendid architecture? It is the city’s soul. Dubai’s culture is made of many communities from around the world. And the city is continuing to develop even further owing to its diverse and astounding real estate. The properties in Dubai are a prime example of modern culture and accommodate thousands upon thousands of expats from around the globe. The Dubai Motor City or often called Motor City is built around the world of luxurious cars. Some of the world’s most famous car unveils and showcase events happen in this part of the country. The properties in Motor City fully complement this modern theme and are home to many car enthusiasts. Let us review all the features of the Motor City apartments for rent.
Types of Apartments in Motor City
The apartments in Motor City are available in different designs, sizes and perks, depending upon your preference. The culture and theme are homogeneous within the residential areas, and you don’t necessarily need to be a car enthusiast to enjoy living here. Some of the available residential communities in Motor City include Uptown Motor City, Oia Residence, Easton Court and Green Community (Motor City). You can rent a property in any of these wonderful residences and you won’t regret your decision. You can go for studio flats, 1-bedroom apartments, 2-bedroom apartments, 3-bedroom apartments, and 4-bedroom apartments for rent in Motor City. All of these apartments are elegantly designed and are fully equipped to provide a modern and luxurious lifestyle.
Rent Price Trends for Apartments in Motor City
The apartments for rent in Motor City offer a considerably affordable package. The price range for these rental apartments starts at AED 42,000 and ends at AED 180,000 per year. You can choose studio flats and apartments for rent by paying AED 42,000 to AED 65,000 per year. The yearly rental price for 1-bedroom apartments starts at AED 55,000 to AED 90,000. The option of 2-bedroom apartments for rent in Motor City is also available at AED 88,000 to AED 130,000 per year. Similarly, you can go for 3-bedroom apartments starting at AED 115,000 and ending 199,000 at AED per year. You can even go big by choosing 4-bedroom apartments in Motor City but they will cost you AED 162,000 to AED 180,000 per year.
Lifestyle in Motor City
There are so many added benefits of living in Motor City, such as entertainment, luxury, dining, and sports. Speaking of sports, the city is built to showcase the motorsport and what’s better for honoring car enthusiasts than by providing some of the best drome arenas of the world. The Dubai Kartdrome and the Dubai Autodrome are a dream come true for all the petrol heads out there. You can enjoy laps in any of your favorite sports cars or just sit back in a go-kart and have the time of your life. Living in Motor City is further complemented by the presence of commercial and business hubs and world-class restaurants in the area.
Reasons for Renting in Motor City
There are plenty of reasons to rent an apartment in Motor City. The community has some of the best facilities out there – supermalls, cafes, markets, lush-green parks, swimming pools, grocery stores and other necessities of life. Top-quality schools like GEMS Metropole School intrigue families to settle here. Whether you are a family-man looking to ensure a comfortable stay for your family. Or you are young car enthusiast looking to enjoy time with your friends, this place is suited to both. You can also set up your professional career here, as the city is booming with opportunities.Read More
admin 11/07/2019 No Comments
Dubai company register involves certain basic steps a businessman must take before he begins to do business in Dubai
Dubai company register: We discuss on this page the categories and procedure required to get your business licensed and registered in Dubai.
Any business of any category must have a ‘trade’ license in Dubai.
Please invest 2 minutes of your time to watch the Dubai company register video below. It spells out how you can benefit. Or if you prefer to read, then feel free to skip the video and go straight to the text below:
The requirements of trade license and the permissions required from various agencies and government ministries can vary depending on the category of the business.
That means some types of businesses for example financial services, health services, printing and publishing, food trading require more clearances than say a general trading business.
There are basically 3 categories of licenses issued in Dubai to register a company
Depending on the nature of the activity a business entity plans to undertake, license in one of these categories will be issued:
- Commercial License– to be issued to a company that will engage in any kind of trading activity.
- Industrial License– to be issued to a company that will engage in manufacturing or any industrial activity.
- Professional License– to be issued to service providers, professionals, artisans, and craftsmen.
The Department of Economic Development in Dubai is the government agency responsible for issuing local Dubai company licenses. This department operates from several locations to deliver licensing services.
However, the main office located near the clock tower in Dubai is where a businessman must go for a comprehensive range of all services.
The approval process for a business registration in Dubai
- Issuance of licenses for banks and other financial institutions must have the approval of the UAE Central Bank
- Issuance of licenses for manufacturing companies must have the approval of the Finance and Industry Ministry.
- Issuance of licenses for companies engaged in insurance and other relevant firms must have the approval of the Economy and Commerce Ministry
- Issuance of licenses for medical and pharmaceutical products must have the approval of the Health Ministry
- For companies engaged in gas or oil production, additional endorsements and approvals from other government agencies may be needed
- In addition, business registration must also have the involvement of the Dubai Chamber of Commerce and Industry
Requirements for business ownership
Every company, other than those with a professional license, set up in Dubai or elsewhere in the United Arab Emirates [UAE] is required to have no less than fifty-one percent (51%) shareholding by UAE nationals.
The exception to this requirement would be any one of the following six conditions:
- The company is established at any of the Free Zones in Dubai.
- In cases where the law requires 100% local ownership.
- Where a company wholly owned by the Gulf Cooperation Council (GCC) enters into a partnership with another company wholly owned by UAE nationals.
- In certain activities, 100% ownership for GCC nationals or entities is permitted.
In artisan or professional companies in which total foreign ownership is allowed.
- In the case of a foreign entity registering a representative or branch office in the UAE.
- In the case where a professional license is being applied for such professions such as architect, doctor, artist etc. The foreign ownership can be 100%. However a local national must be taken as ‘service agent’.
Legal business structures
A major consideration in business registration in Dubai and the other Emirates is the choice of business structure.
The Federal Law defines the seven legal structures of business organizations, as follows:
- General Partnership
2. Partnership in Commendams
3. Public Shareholding
4. Private Shareholding
5. Joint Venture
6. Share Partnership
7. Limited Liability
Both 6 and 7 are generally used by small and medium-sized entities.
Establishment of a representative or branch office
A branch in Dubai or a representative office of a foreign entity in Dubai is allowed to be 100% foreign owned. This privilege is given on the condition that a local agent is appointed. Said local agent must be a UAE national (or a company 100% owned by UAE nationals).
Setting up a representative or branch office in Dubai may also be a consideration worth looking into as far as some foreign entities are concerned. The business registration in Dubai for this option is covered by the Commercial Companies Law.
Based on the foregoing facts and details, it is evident that Dubai company registration and registration elsewhere in the UAE is a process completely free of any complication.
Dubai company register: Procedure
Step 1. Decide who will be your local partner – “Sponsor”
This step requires careful consideration of what services you expect from the sponsor.
- Would you like him to assist you in resolving your problem with the government procedures or
- Would you just want his name on the license and nothing else
- What fees are you prepared to pay per year.
A good rapport with your sponsor prevents many potential problems.
Step 2. Get a name and activity approval from Department of Economic Development (DED)
This can be applied for and done on a standard application form and submitted at DED
Step 3. Look for business premises and make a tenancy contract
All business in Dubai must have business premises evidenced by a tenancy contract in order to get registered.
Step 4. Make a Memorandum of Association (MOA) with the sponsor and submit to DED
Any legal firm can type out the memorandum which must specify in a special arrangement and ownership percentage among all partners.
Step 5. Submit the MOA and the License application at DED along with the required legal documents and the tenancy contract.
All charges and fees must be paid at this stage. You should get a license after about a week from step 5.