The corporate environment in UAE has changed and elevated according to the emirate requirements. The foreign companies operate without registration under VAT. Branch entities of parent companies require a full license. The original company will bear the cost of sales as the regulatory cost. The four models that operate in UAE without registration are LLC, foreign branch office, free zone Company, and trade representative office. To establish in the UAE market, the entrepreneurs prefer the LLC model. A foreign branch office operates under the parent company registered outside UAE. The company is involved in business operations and signs contracts as mentioned in the license. The branch office does operations similar to the parent company. It will not do new activities.
The trade representative office operates to sell the company products with the identity of a non-trading company. The free zone company operate with a physical presence in UAE. The free zone authorities issue the license and work under the government authorities. Indian Company secretaries work in UAE as the compliance laws are similar. A fresher with a company secretaryship qualification from India gets 4000 to 7500 AED. The comparison of the cost of living between India and Dubai says that Dubai is 161% higher than India. Indian students support the business establishment in UAE for start-up companies, work in stock exchanges as corporate representatives, corporate law experts, PROs, due diligence officers, CFT compliance officers, company AML, company secretaries in DIFC, legal advisors, and paralegals. The blog highlights the corporate structure and opportunities in the UAE for company secretaries.
UAE corporate tax:
The UAE government introduced the corporate tax in June 2023. The tax percentage for a person or business is 9 per cent. Gulf Cooperation Council has six countries. The six Arab countries under GCC are Bahrain, Arab countries, Oman, Saudi Arabia, Qatar, and the United Arab Emirates. UAE is one of the countries that introduced corporate tax among the GCC countries. The business operating in UAE with a net profit of more than 375000 AED should pay corporate tax. Corporate tax is not for employment, investment in shares, real estate and other personal income. The free zone business owners get incentives through corporate tax. Capital gains and dividends from qualifying shareholdings are exempt from corporate tax. Corporate tax does not apply to restructurings and intragroup transactions.
VAT in UAE:
VAT is the consumption tax that goes along with the supply chain. The input tax deduction works for the government. UAE started the implementation of VAT in 2018. In India, VAT was introduced in the year 2005. The VAT process expects the company to maintain proper records for the annual turnover. Because the turnover is the criteria for registering for the VAT taxation system. The business with supply chain management will pass the extra tax charges to the end customers through VAT tax.
Secretarial services in UAE:
Company secretaries working in UAE take care of the following services:
- Appointment fixing with directors and officers.
- Incorporation of the companies. Renewal of trade license of the companies operating in UAE.
- Conduct annual shareholder meetings.
- During the annual general meeting, the shareholders talk about the decisions and laws related to the business.
- The company secretaries get the signatures of the shareholders and directors on the documents.
- The company secretaries take care of the minutes of the meeting.
- The company secretaries publish the audited accounts.
- The company secretaries coordinate with the auditors to produce the audited financial statement.
- The company secretaries prepare the resolution of the board and shareholders during the meeting.
- The company secretaries prepare the insurance covers and communicate with the insurance companies.
- The company secretaries talk to the government authorities regarding compliance.
- The official language in UAE is Arabic and English. The Arabic language is similar to Urdu and Hindi. Indians manage in the country with the knowledge of Hindustani languages. Professionals working in the corporate environment speak English.
Opportunities for company secretaries:
Company secretaries from India are working in the following countries: Canada, the US, Singapore, the UK, Thailand, Malaysia, New Zealand, Australia, Africa, and the Middle East. The company secretaries working abroad have analytical and managerial skills. The bilateral comprehensive economic cooperation agreements help the professionals to move across borders. The MOU of ICSI aids in the free movement of professionals. Working in the UAE offers the experience of a multi-cultural environment. The professionals work with more than 20 jurisdictions. Top companies in India hiring company secretaries are Reliance Industries, TCS, KPMG, Aditya Birla Group, Government of India, Tata Communications, Quislex, and Oliver Wyman. Company secretaries working in UAE handle administrative tasks with experience. The professionals reduce the operational costs and increase the productivity. In UAE notaries take care of more tasks. The work of a notary is not just with attestation. The notary public handles the oaths, statements and certified papers.
Company secretaries work around the globe and earn the highest salary. In India, company secretaries get 380000 to 2440000. Dev Bajpai is the executive director of HUL. He has 30 years of experience. His salary is 5.53 crores. R J Jeya Murugan is the CFO of Asian paints. His salary is 2.6 crores. The top company secretaries implement the compliances, introduce the best practices, and participate in healthy discussions, and make vital decisions. The company secretaries are valued according to their experience and performance. The Indian laws and UAE laws are similar. UAE prefer Indian professionals because of their communication skills, intelligence and performance. After completing a course from ICSI, the professionals get opportunities in top companies and foreign countries.