{"id":2057,"date":"2020-08-13T10:49:29","date_gmt":"2020-08-13T10:49:29","guid":{"rendered":"https:\/\/jupiterbusinessmentors.com\/?p=2057"},"modified":"2021-02-12T10:03:45","modified_gmt":"2021-02-12T10:03:45","slug":"how-to-make-your-business-legally-compliant","status":"publish","type":"post","link":"https:\/\/jupiterbusinessmentors.com\/blog\/how-to-make-your-business-legally-compliant\/","title":{"rendered":"How To Make Your Business Legally Compliant"},"content":{"rendered":"

It goes without saying that keeping your company\u2019s official documentation up-to-date and relevant not only helps with internal procedures but also keeps you on the right side of the law. Outdated credentials, papers, certificates and expired licenses can incur hefty fines and penalties, as well as damage your firm\u2019s reputation and market standing.\u00a0<\/span><\/p>\n

With the country opening up for business as we settle into the \u2018new normal\u2019, it is advisable to sort your official paperwork sooner rather than later. Elena Schildgen, a qualified German lawyer and <\/span>certified business coach <\/span>offering <\/span>legal consulting <\/span><\/a>to entrepreneurs in Dubai weighs in on the potential ramifications of procrastination.\u00a0<\/span><\/p>\n

Documentation<\/b><\/h5>\n

\"Company<\/p>\n

\u201cBusinesses in the UAE are well advised to keep their company documentation in order,\u201d says Elena. \u201cThe timely annual renewal of the trade license and continuous updating of records, like addresses and contact numbers, not only lets customers know that your business is open and operational, it also saves you from fines and serves as legal proof should there be any kind of litigation against you or your company,\u201d she adds.\u00a0<\/span><\/p>\n

Elena suggests that businesses regularly update employee records, including offer letters, signed contracts, proof of payments, performance evaluations, updated personal data, and possible termination letters and communication with the relevant ministries like the MOHRE, Chamber of Commerce, Ministry of Health and Ruler\u2019s Court etc., depending on the work the company does.\u00a0<\/span><\/p>\n

\u201cEnsuring the timely payment of salaries through the Wages Protection System (WPS) on the MOHRE portal is very important,\u201d stresses Elena. \u201cIf they are delays in salaries, your business could be blocked, which will prevent you from renewing existing visas or applying for new ones.\u201d<\/span><\/p>\n

\u00a0<\/span>She further recommends displaying the business license and registration<\/a> in a prominently visible place, as failure to do so can also result in fines.\u00a0<\/span><\/p>\n

Accounts and bookkeeping<\/b><\/h5>\n

\"Application<\/p>\n

Companies in the UAE must keep books and accounts in accordance with UAE Commercial Transactions Law (Federal Law No 18\/1993) and international standards, especially since the introduction of VAT and ESR.\u00a0<\/span><\/p>\n

\u201cAs per Article 30 and 31 of the CTL, company records must be maintained for at least a period of five years. Maintaining up-to-date documentation, like minimum balance on bank accounts, etc., is handy for internal business procedures and can serve as evidence in possible bankruptcy proceedings and for inspection for VAT regulations,\u201d adds Elena.\u00a0<\/span><\/p>\n

VAT and Economic Substance Registrations
\n<\/b><\/h5>\n

Companies that have an annual turnover of AED 375,000 must register for VAT and obtain a tax registration number with the Ministry of Finance.<\/span><\/p>\n

\u201cCompanies below the turnover threshold cannot register,\u201d explains Elena. \u201cHowever, as soon as the government-prescribed amount is reached in the previous 12-month period or expected to be reached during the next 30 days, a business becomes eligible for registration,\u201d she adds.\u00a0<\/span><\/p>\n

Conversely, companies that are registered and fall below a turnover of AED\u00a0<\/span>187,500 in the 12 months after registering with the Federal Tax Authority must apply for VAT deregistration.<\/span><\/p>\n

\u201cAll companies registered in the UAE are, therefore, advised to continuously recheck their obligation to apply for registration or de-registration,\u201d adds Elena.\u00a0<\/span><\/p>\n

Data Protection and GDPR Rules<\/b><\/h5>\n

 <\/p>\n

\"Legal<\/p>\n

Elena explains that there is still no general law for data protection currently in the UAE. But there are some considerations, especially in an HR context, that may be legally binding under the UAE Penal Code. These include prohibitions on disclosure of business secrets or misuse of information and data.<\/span><\/p>\n

\u201cIn case of a data breach involving local authorities, sections of the data protection laws in the free zones may be applicable,\u201d explains Elena. \u201cBoth the DIFC and the Abu Dhabi Global Market currently are in the process of, or have already updated their data protection regime for consistency with European Data Protection Directives,\u201d she adds.\u00a0<\/span><\/p>\n

As a company registered in the UAE but dealing with other parts of the world, Elena advises further exploration of the General Data Protection Regulation (GDPR) rules to ascertain the extent to which they can affect a business.\u00a0<\/span><\/p>\n

For more advise on <\/span><\/i>legal and regulatory consulting <\/span><\/i>and <\/span><\/i>mentoring <\/span><\/i>that ensure you remain on the right side of UAE laws and regulations, please book a session with our legal mentor,\u00a0<\/span><\/i>Elena Schildgen<\/a>.<\/span><\/i><\/p>\n","protected":false},"excerpt":{"rendered":"

It goes without saying that keeping your company\u2019s official documentation up-to-date and relevant not only helps with internal procedures but also keeps you on the right side of the law. Outdated credentials, papers, certificates and expired licenses can incur hefty fines and penalties, as well as damage your firm\u2019s reputation and market standing.\u00a0 With the …<\/p>\n

How To Make Your Business Legally Compliant<\/span> Read More »<\/a><\/p>\n","protected":false},"author":3,"featured_media":3295,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0},"categories":[21],"tags":[],"yoast_head":"\nEnsure your business meets regulatory and legal compliant laws<\/title>\n<meta name=\"description\" content=\"Get legal and regulatory consulting and mentoring by certified regulatory compliance experts in UAE to ensure you remain on the right side of UAE laws and regulations\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/jupiterbusinessmentors.com\/blog\/how-to-make-your-business-legally-compliant\/\" \/>\n<meta property=\"og:locale\" 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