UAE Federal Law allows 100% Foreign Ownership from June 2021

As per the UAE Federal Law on Foreign Direct Investment amendment launched in June 2021, it is no longer mandatory to have an Emirati partner or specify a fixed quota ratio for him/her to start a business in the UAE. 100% foreign ownership is available for more than 1,000 commercial and industrial activities excluding economic activities with a strategic impact, which are in seven sectors only.

Ultimate Beneficial Owner (UBO)

The UBO Regulations will aim to promote transparency, prevent financial fraud and tax evasion, and improve corporate governance in the UAE. The Ministry of Economy has started imposing fines of up to AED 100,000 from July 2021 on those companies who do not submit their UBO information by June 30, 2021.

Economic Substance Regulations

As part of the UAE’s commitment as a member of the OECD Inclusive Framework, and in response to an assessment of the UAE’s tax framework by the European Union Code of Conduct Group on Business Taxation, the UAE issued Economic Substance Regulations on 30 April 2019. After a couple of amendments, the ESR regulations now require UAE onshore and free zone companies and certain other business forms to maintain and demonstrate an adequate “economic presence” in the UAE relative to the activities they undertake (“Economic Substance Test”).

VAT Guide on Automotive Sector in UAE

FTA has issued guidance on the Automotive Sector about the VAT treatment of supplies made by motor vehicle dealers in the UAE including but not limited to the supply of new cars, the supply of used/ second-hand cars, supplies under warranty, and the export and import of cars.

Zomato IPO Analysis

India’s leading food delivery company Zomato made a stellar debut on Dalal Street on July 23 as the stock opened at Rs. 116 on the NSE, a 52.63 percent premium to its final offer price of Rs. 76. The listing price on the Bombay Stock Exchange was Rs. 115, up 51.32 percent. The share price moved to Rs 138 intraday after listing at Rs. 116 against the final offer price of Rs. 76. Zomato saw a healthy overall subscription of 38x.

Paytm IPO Analysis

Paytm, India’s leading digital payments platform plans to raise Rs. 16,600 Crore through public issue of shares – half in fresh issue and half in offer for sale.

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