Month: April 2020
Robotic Process Automation at Ports
Vimal Ramachandra, Director
Phone:- +971 4 327 7775
Mobile:- +971 52 830 7998
WhatsApp:- +971 56 219 1607
Email:- dubai@hlbhamt.com
Robotic Process Automation does not need an introduction anymore; it has been in use for a while and is quite trending. Companies belonging to various sectors have started to embrace this innovative technology to ease their business processes. Ports are no exception.
Automated ports are safer when compared to the conventional ones. There are five constituents of automation in ports: equipment, equipment-control systems, terminal control tower, human–machine interactions, and interactions with the port community. If all the five constituents are leveraged jointly, one can expect maximum benefit, i.e., up to 55% reduction of operating expenses and up to 35% increase in productivity.
Uses of Robotic Process Automation for Ports
Port gates Automation
A port terminal is a restricted area and extreme care must be taken to manage traffic at port gates. All entities that cross the gate must be identified and recorded, to ensure safety.
There has been a massive increase in the volume of container traffic passing through the gates and hence, it has become mandatory to employ technology to check the same. Robotic Process Automation can be used for various purposes that include entry and exit logs, docking payments, verification, etc. This will help in streamlining the workflow and ensuring security, thereby reducing issues related to productivity that will result from queuing at port gates.
Damage inspection
Physical damage to the containers, wet damage, or leaks are quite common that can incur high repair costs. If the damages are identified at an earlier stage, it will be possible to cope with it in the best possible way. Robotic Process Automation Dubai comes into use here. The technology can be leveraged to inspect damage accurately and without any delay.
Ship Invoicing
It is the responsibility of the port to prepare the required documents for vessel invoicing. Marine and harbour charges, docking, garbage removal, and crew transport must be invoiced for all the vessels entering the port. Rail cost, security, power, and customer-required movement must be charged per container.
These charges will be different, depending on the kind of service, type of container and the line. Multiple systems will have to be put in use to capture and assess the data to produce invoices. This is a hectic and time-consuming job, which can be made easier with the help of Robotic Process Automation Dubai. Software bots can integrate various systems, output shipping line-specific invoices, and forward the invoices to the finance department.
Within- and between-ports communication
Robotic Process Automation Dubai promises greater connectivity among ports by enabling real-time information sharing. It eases the process of data collection on cloud servers, data access and translation and enables self navigation.
With the aid of cloud platforms, the portuary industrial machinery can be linked to the digital system, thus allowing full connectivity within and between-ports. Maritime companies that are highly attached to their legacy systems might find some difficulty while using cloud; Robotic Process Automation in Dubai helps in avoiding these difficulties.
Implementing Robotic Process Automation in Dubai for communication within and between ports increases the precision level and safety of vessel mooring.
The advantages of adopting Robotic Process Automation across ports are many; it ensures more efficient control of traffic and trade flows, increased port capacity and efficiency, improved oversight of port emissions and improved process flow stability.
Currently, only large maritime gateways have implemented the technology. Gradually, even medium and small players will realize the potential of Robotic Process Automation and use it to scale-up their operations.
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Robotic Process Automation- The Next Big Thing
Vimal Ramachandran, Director
Phone:- +971 4 327 7775
Mobile:- +971 52 830 7998
WhatsApp:- +971 56 219 1607
Email:- dubai@hlbhamt.com
Robotic Process Automation is one of the most trending technologies in the world that uses software robots to streamline the tedious workflows. Hailed as the next big thing, Robotic Process Automation Dubai has the prowess to revolutionize the way we execute the office jobs.
The technology has been in use for quite some time but has become more mainstream in the last few years. Robotic Process Automation can automate routine tasks and complex processes and helps in lessening inefficiencies. One can access intelligent data reports and insights and use these to plan business decisions.
Companies irrespective of their size and sector have already started to embrace this technology. Small businesses are adopting Robotic Process Automation to scale up their business operations and perform better in the competitive market by achieving productivity with minimal clerical error. Big enterprises will have individual departments to handle specific tasks. But in the case of smaller ones, all employees will be responsible for various works across different departments and always bypassing the standard operating process.
When you have a plethora of tasks to take care of, a good number of employees are required to carry out the tasks efficiently. With the implementation of Robotic Process Automation, numerous tasks (especially repetitive in nature) that include processing purchase orders, data entry of bills, collection follow up, reconciliations and the like are automated. This process will help in optimizing the workforce and will be able to give customized and efficient services to their clients. Also, re-deploy the existing employees on other critical tasks that will help in enhancing the business.
Automation may not always happen the way you envisioned or quickly. There might be flaws, and you may not acquire the expected result as desired in the time frame. The adoption should be planned thoroughly, and care must be taken not to leave the “bots” without governance, as it can lead to security issues. Robotic Process Automation Dubai implementation requires a massive amount of dedication, knowledge and effort for it to be successful.
Before you go ahead with implementing Robotic Process Automation, the following things must be taken care of;
Robotic Process Automation has evolved quickly over the last few years, and there has been a significant increase in the number of companies adopting the technology. It has the potential to transfigure your business and help it scale heights if done correctly.
When you have software robots to take care of the monotonous and tedious tasks at work efficiently and accurately, why not opt for it.
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Working from home- How secure is it?
Vimal Ramachandran, Director
Phone:- +971 4 327 7775
Mobile:- +971 52 830 7998
WhatsApp:- +971 56 219 1607
Email:- dubai@hlbhamt.com
The current health crisis the world is witnessing today is truly unexpected and unfortunate. We have never experienced a crisis like this before that forced us to confine within the four walls of our house. When you know something like this is going to happen, you can plan things accordingly, be it related to your personal life or professional. But COVID-19 pandemic didn’t give us time to prepare. Before we could realize what was happening, the entire world entered into a lockdown.
Security
Most of the employees have started to work from home and this might pose certain challenges, specifically on the security front. There are chances of risks and the security team of an organization must identify the common risks that might arise when employees are working remotely. The security team should coordinate with the communication team and the latter must train the employees on the risks and how to manage them. This will simplify the process of security and motivate employees.
Even after training employees on these, they might encounter problems with regard to security and will be in need of help. It is always advisable to answer their queries in real-time using technology or forum, such as e-mail, Skype, teams or any such platform. This will make security as approachable as possible and will enable the security team to quickly identify and respond to incidents.
Social engineering
The platform you are using to answer queries should have strong authentication mechanisms; otherwise, cyber attackers will see this as an opportunity to socially engineer these platforms.
Social engineering attacks are one of the greatest risks that will arise when employees work from home. The user will be prompted to make a mistake, without their knowledge and during a time like this, when you get numerous calls and emails related to the pandemic, it will be much easier to trick the user. Chances of overlooking these scams are high. The solution is to train employees on what social engineering is, how to identify it and what to do once you identify one. Even though phishing is the most common form of cyber attack, there are other modes as well and employees should be aware of these.
Strong Passwords
Weak passwords have always been one of the top reasons for security breaches and it makes the job of hacker pretty much easier. Below listed are four key behaviors to manage this risk;
- Passphrases: Compared to passwords these are comparatively longer and ensures added security.
- Unique passwords for all accounts: Do not give the same password to all the accounts; they should be unique and strong.
- Password managers: This helps in storing and managing online credentials.
- MFA (Multi-Factor Authentication): User is given access only after successfully entering two or more independent credentials.
Updated systems
The security team must see to it that the employees are using the latest version of the operating system, applications and mobile apps. Everything should be updated, as updation helps in patching security holes.
Tips
Here are some tips for you that can be useful while working from home;
- Here are some tips for you that can be useful while working from home;
- Change the default admin password, enable WPA2 encryption and use a strong password for your wireless network
- All the devices connected to home network must be protected by a strong password and should be updated. Systems should be locked while you are not using it
- Both the operating system and applications must be patched and updated
- Do not discuss any confidential details with clients in public
- Keep your system in a secure place and also ensure to keep your screen private. Position it away from other people
- Do not access any internet sites other than the access required
- Inform IT department if you come across any abnormal activity through emails or systems
- If you are sharing any confidential information via emails, protect it with a password. Share the password with the user in person and not through email.
- Do not use official laptop for personal use (internet or unauthorized applications or software) and avoid carrying laptop to public places to work.
Above all, one should have the common sense to differentiate between genuine things and scams. It is easy to fall prey to scams, but difficult to get out of one.
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UAE Economic Substance Regulations Guide
Jay Krishnan, Partner
Phone:- +971 4 327 7775
Mobile:- +971 50 677 5860
WhatsApp:- +971 56 219 1607
Email:- dubai@hlbhamt.com
The UAE Cabinet issued the Cabinet of Ministers Resolution No.31 of 2019, on 30th April of last year. The resolution requires all in-scope UAE entities to maintain an economic substance in UAE. This will be applicable to onshore and free zone companies that engage in certain ‘Relevant Activities’.
The UAE Ministry of Finance has recently published a document to provide guidance to UAE businesses on “Relevant Activities” and their associated “Core Income-Generating Activities” (“CIGAs”).
Click here for further details on UAE economic substance regulations.
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Transfiguring your business post COVID-19
Raghunath. T, Director
Phone:- +971 4 327 7775
Mobile:- +971 55 807 4568
WhatsApp:- +971 56 219 1607
Email:- dubai@hlbhamt.com
The phrase “we are living in unprecedented times” has probably never ever been used more often in history than in the last few weeks.
As the world is still grappling with the Covid19 crisis that has brought almost every nation on the earth to a standstill physically and economically, much has been written about what the new world reality will look like.
From the perspective of most companies, these could mean changes in the way they approach their external interfaces. These could mean
- Focusing on online v/s offline sales channels
- Greater focus on domestic customers
- Reducing overdependence on specific sectors
- Focusing on more robust supplier networks etc.
These changes are to be expected soon and are certainly factors that any business leader should consider sooner rather than later.
However, along with the external preparedness come the more interesting and probably the so far undiscovered area of internal structures, systems, processes and resources. Adversity has made businesses realize that there are tremendous opportunities for building internal efficiencies.
Any organization that is planning to come out of the current adversity will need to seriously consider addressing the following areas.
- Structure: What is the right structure that the company should adopt going forward? Can we proceed with tweaks to the current structure or is there a need to restructure? Certainly, restructuring is not a decision that companies should take in haste. However, if it is a question of survival or restructuring, the choice is quite obvious.
- Business Processes: There have been drastic forced changes to several processes that companies have undertaken in the last few weeks. Are these changes sustainable? Is there more that can be done? Are there any new risks that have emerged due to the process changes?
- Process redundancies: Are some processes being done because you have always been doing them? Are there ways to redesign those processes without compromising on controls or risks?
- Process Outsourcing: Are there some noncustomer-facing / backend processes that are being done by in-house teams that could be efficiently outsourced? Are there functions that do not really need full-time personnel?
- Process Offshoring: If the last few days have taught us anything, it is the fact that most employees can work as effectively from their homes as from their office desks. Taking this further, are there opportunities to offshore processes or move teams to less expensive locations?
- Process Automation: Are there potential savings in costs by automating processes? Even if there is a seemingly fully functional ERP in place, what are the efficiencies possible by taking it to the next level by investing in areas like Robotics Process Automation ?
- Resource Utilization: Another important learning from the world’s collective experience of the last few weeks has been the sudden realization that companies have been utilizing vast amounts of resources which fall into the “nice to have” category and not necessarily in the “need to have” area.
Utilization of human resources is usually the first thing that most organizations consider – and such utilization can be understood by undertaking exercises in workload analysis, time and motion studies, automation studies etc.
However, there are other resources such as office space, vehicles, warehouses and such which at times get ignored. Such resources also come with accompanying cost elements such as manpower, maintenance, utilities and fuel – and all of these over a period tend to result in cost creep.
Once we win over the pandemic, the next real crisis would be putting the pieces together and re-shaping the future. We can capture the opportunity to invest in the real growth pillars and not the ones that belong to the “nice to have” category.
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Accountants Combat Fraud during COVID-19 Pandemic
Sumesh Krishna, Partner
Phone:- +971 4 327 7775
Mobile:- +971 56 147 0259
WhatsApp:- +971 56 219 1607
Email:- dubai@hlbhamt.com
The coronavirus pandemic is creating enough havoc in our lives. People are worried about their health, job, and economy and to add to these, fraudsters are trying to take advantage of people’s vulnerability.
Phishing is one of the most common forms of cyber attacks. During a time like this, when people are receiving countless emails related to COVID 19, one might accidentally click on the scam mails by mistake.
If you receive an email from a stranger asking to click on something, immediately delete it. Hackers will have different reasons to get into your system; it can be for money, data, or to defame your company. Let the reason be any, CPAs need to be extra vigilant as they are responsible for safeguarding the financial data of clients.
Accountants have started to step beyond their traditional roles and help businesses fight cyber attacks. During a crisis like this, when the IT department has their plates full, accountants can do their part in identifying and responding to fraud. They may not be technically equipped to fight attacks. Still, they can alert the management and IT team if they come across any such activities.
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Emerging Technologies as an Audit Tool
Sumesh Krishna, Partner
Phone:- +971 4 327 7775
Mobile:- +971 50 677 5860
WhatsApp:- +971 56 219 1607
Email:- dubai@hlbhamt.com
Technology influences every aspect of the business landscape. Companies have started to embrace emerging technologies to keep pace with the competitive corporate world. Technologies such as artificial intelligence, Cognitive Automation, Robotic process automation and Blockchain find its application across all the sectors of business.
Auditing is one such division that has been harnessing the power of these sophisticated technologies to deliver high-quality audits by increasing the efficiency and the quality of financial reporting. Audit firms are continually investing in the latest technologies to facilitate their work and add value to the client, which is bringing about “a transformational era in auditing’.
According to reports by various research firms, 80% of audit teams make use of data analytics and automation tools in some form. Because of this adoption, the quality of audit findings have increased with a reduction in cost.
Robotic process and cognitive automation
Robotic process and cognitive automation are the most trending technologies that have the potential to bring about significant changes to the business. These can be used to analyze datasets that contain millions of transactions, isolate the outliers for further examination and interpret the data to complete tasks. The technology helps in reducing errors on data processing and bring efficiency on processing and reporting.
Artificial Intelligence
AI can be used to conduct analyses of structured and unstructured data. It brings order, ensures more natural extraction of value from data, helps in identifying misstatements and determining risk. Embedding AI into the audit process eliminates any chances of errors and risk on reporting and colossal value addition to the client.
Blockchain
Blockchain can be deemed as a game-changer for the auditing industry. The technology serves as an open, distributed ledger to record transactions between two parties efficiently, and this can be used as a source of verification for transactions reported in any business.
Sophisticated technologies enable auditors to perform advanced analytics, which in turn helps them to gain more in-depth insight into the functioning of businesses. Auditors must stay abreast of these technological advancements as they promise a higher level of assurance and exciting opportunities to enhance the quality of audit.
The technologies are never a replacement for auditors; what they do is empower and enable audit professionals to deliver high-quality audits, without any errors. “As powerful as these tools are, or are expected to become, they nonetheless are not substitutes for the auditor’s knowledge, judgment and exercise of professional scepticism.” But to some extend it is leading to triple-win situation to the organizations.
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Business Continuity Plan in UAE: Thinking Beyond IT
Raghunath.T, Director
Phone:- +971 4 327 7775
Mobile:- +971 55 807 4568
WhatsApp:- +971 56 219 1607
Email:- dubai@hlbhamt.com
Many of us have a notion that emergency and disaster planning are the core responsibility of IT team. While they do have a major role in managing crises, the human resource management also plays a prominent role in planning for any disaster or emergency. HR helps in developing a business continuity plan that enables companies prepare for pandemics and natural disasters.
The coronavirus outbreak has resulted in a global lockdown; the normal work routine of majority of the businesses has been disrupted and a major chunk of the population is working from home. It is during times like these we realize the true significance of a business continuity plan.
BCP involves a set of procedures that helps businesses operate normally even at the time of unexpected events. While it is essential to keep the business operational and revenue flowing, it shouldn’t be at the expense of the lives of employees. BCP outlines plans and criteria that safeguard and support employees, without any drastic effects on business. It provides detailed strategies to manage business operations for both short-term and long-term outages.
Business continuity plan ensures smooth flow of your business even in the worst scenario. The following things need to be taken care of while developing a business continuity plan;
- How and from where the employees will be working?
- Do they have the required equipments and connectivity?
- How will they get paid? Will there be any deduction from their salaries?
- Mode of communication between employees and with the management
- How many hours are they expected to work and methods to track the work
- Should they follow the normal office hours or is it flexible?
Employees should be educated about the situation and what is expected of them. The circumstance might demand certain employees to go on long leave, without pay and for some there might be changes in their roles and responsibilities. The HR must see it to that they are made aware of the ongoing crisis so that they accept the decision without grudges and support any other initiatives you plan to implement to handle the situation.
The ultimate objective of BCP is to ensure that the business is equipped with necessary resources, information and capabilities to deal with emergencies. We cannot prevent a pandemic or natural disaster; the least we can do is prepare ourselves for one. When you have a plan in advance, the process becomes much easier and hassle-free.
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A Guide on Statutory leaves in the United Arab Emirates
HLB UAE Payroll Team
Phone:- +971 4 327 7775
Mobile:- +971 50 205 9540
WhatsApp:- +971 56 219 1607
Email:- dubai@hlbhamt.com
The leaves granted to employees working in the UAE under the labor law are as follows:
- Annual leave
- Sick leave
- Maternity leave
- Study Leave
- Bereavement Leave
- Parental Leave
- Sabbatical Leave
- Official national holidays
Annual Leave policy in the UAE
Article 29 of the new UAE Labor law states the following regarding Annual leave policy;
“The employee must be granted an annual leave during each year of service which may not be less than:
- Two days per month in respect of any employee with more than six months and less than one year of service.
- Thirty days per annum in respect of any employee whose period of service exceeds one year.”
Employees working in UAE are entitled to an annual leave of 30 days for every year of service.
Frequently asked questions
Is annual leave in the UAE based on calendar days?
Annual leave is calculated based on calendar days and includes any public holidays and weekends that fall within or any day taken due to illness if they fall within this period.
Can the employer determine when the employee’s leave will be taken?
Employers are entitled to determine when an employee can take their leaves.
How are UAE national/public holidays that fall within an employee’s annual leave treated?
Any holidays stipulated by law or by mutual agreement, that fall within an annual leave are treated as being part of the leave thereof.
Can an employee claim compensation for unutilized leaves at termination of contract?
An employee leaving his employment, whether via termination or resignation is entitled for compensation through payroll of any outstanding leaves and it shall be calculated against the basic salary. In the case of employees whose service period is less than one year, the entitlement for compensation for unutilized leave days is calculated at an accrual of two days per month.
See below sample calculation of leave balance at final settlement
Can an employer terminate an employee who is on leave?
No, employers cannot terminate the services of employees who are on annual leave
Sick Leave policy in the UAE
Sick leave is granted for 90 days per annum (calendar year) at the following rate
- The first 15 days: with full pay.
- The next 30 days: with half pay.
- Any subsequent period to a maximum of 45 days: without pay.
The article 31 of the UAE labor law states the following about sick leave:
After the end of the probationary period, the worker may be entitled to a sick leave of not
more than (90) ninety continuous or intermittent days per year, provided that it is
calculated as follows:
- first (15) fifteen days with full pay;
- following (30) thirty days with half pay;
- following period unpaid.
See the following sample calculation simplifying the salary for an employee taking sick leaves.
FAQs
Can an employee who is on probation take a paid sick leave?
No, as per article 31, a worker is not entitled to any paid sick leave during the probationary period. However, the employee may grant the employee a sick leave without pay based on the medical report issued by the medical entity that stipulates the necessity of granting the leave.
Can an employer terminate an employee who has exhausted his sick leaves and is unable to return to work?
Yes, an employer may terminate an employee as stipulated in article 31. This is subject to the fact that the worker is unable to report back to work due to permanent disability or terminal illness preventing him from performing his duties.
What is the difference between sick leave unpaid and unpaid leave?
The days taken after the first forty-five days are regarded as sick leave unpaid and are different from unpaid leave. The days falling under this type of leave are included when determining the service period of an employee. This leave does NOT impact the calculation of gratuity, outstanding vacation, air ticket payout or any other payroll accrual due to the employee.
Maternity Leave policy in UAE
A female employee working in UAE shall be entitled to maternity leave as given below.
- 60 days out of which 45 days at full pay and 15 days at half pay for a female employee
- After completion of the 60 days paid leave, a female employee is entitled to take unpaid maternity leave for a maximum period of 45 days. This leave can be continuous or taken in non-consecutive days.
Frequently asked questions concerning maternity leave.
Can an employee take extra leaves after exhaustion of her maternity leave?
Yes, an employee on maternity leave can combine such with her outstanding annual leave if she so wishes. She is also entitled to take extra unpaid leave to a maximum of 45 days after completion of her paid maternity leave of 45 days full pay and 15 days half pay.
Is the period taken for unpaid maternity leave included while determining the period of service?
Yes, this period taken as unpaid maternity leave is included while determining the period of service and is counted while calculating gratuity at the end of service.
Is a female employee entitled to any extra breaks post-delivery?
During the first 6 months after a female has delivered and resumed back to work, she is entitled to two additional breaks not exceeding one hour a day to nurse her young baby. These breaks are treated as part of her working hours and not part of the normal break.
Study Leave
An employee, who is studying in one of the UAE’s certified educational institutions is entitled to a paid leave of 10 days per year to sit for examinations. To apply for this leave must have completed at least two years of service with the employer.
Bereavement Leave
In case of death of the husband or wife 5 days are entitled to the employee starting from the date of death and in case of the mother, father, son, brother, sister, grandson, grandfather or grandmother 3 days are entitled to the employee starting from the date of death.
Sabbatical Leave
The national worker shall be entitled to a sabbatical paid leave to perform the national service, in accordance with the legislation in force in the state.
Parental Leave
A Parental leave for a period of (5) five working days is entitled for the employee (either the father or the mother), who has a newly born child, in order to take care of his/ her child and the employee is entitled to such leave for a continuous or intermittent period, within (6) six months from the date of the child’s birth.
UAE Public Holidays
These are the public holidays in UAE.
- Gregorian New Year: 1st January
- Eid Al Fitr: From 29th day of Ramadhan to 3rd Shawwal*
- Arafah Day: Dhu Al Hijjah 9th
- Eid Al Adha; From 10 to 12 of Dhu Al Hijjah (Feast of Sacrifice)
- Hijri New Year: 1 Muharram *
- The Prophets Mohammed’s birthday; 12th of Rabi al Awwal
- Commemoration day: 1st December
- National Day: 2nd and 3rd December
*Please note, Islamic holidays are determined according to moon sightings.
Summary
UAE Annual leave – Granted for 30 calendar days per year
Sick leave – Granted for 90 days per year as shown below;
- 15 days at full pay
- 30 days at half pay
- Following 45 days with no pay
Maternity leave –
- 45 full paid days and 15 days half paid days if the employee has completed at 3 months after the probation period.
- After completion of her paid maternity leave, 45 days of unpaid maternity
Study leave – 10 working days per year provided that the service term at the employer is not less than two years.
Bereavement leaves – 5 days in the event of the death of a spouse and 3 days in the event of the death parent, child, sibling, grandchild, or grandparent.
Sabbatical Leave – paid leave to perform national service.
Paternity Leaves – 5 working days either father or mother within 6 months from the child’s date of birth.
For information on the payroll process in UAE click on this link
Disclaimer:
Whilst every effort has been made to ensure the accuracy of this information, HLB HAMT will not accept any liability arising out of errors or omissions. Please note that this blog is not all-inclusive. Our guidance is designed only to give general information on the issues/topics covered. It is subjected to change and not intended to be a comprehensive summary of all laws which may be applicable to your situation, treat exhaustively the subjects covered, provide legal advice, or render a legal opinion.
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Freezing business license in UAE
Lavin Nalinababu, Business Consultancy
Phone:- +971 4 327 7775 Mobile:- +971 55 160 1291 WhatsApp:- +971 56 219 1607 Email:- dubai@hlbhamt.com
The corona virus outbreak has resulted in millions of employees working from home and there are many companies that are forced to cease their business. But the pandemic is not here to stay. Hopefully, the situation will get better in a couple of months and life will be back to normal. Going through the whole process of starting your business again can be hectic. So, what other alternative do you have other than liquidating your company?
If you are in UAE and you plan to temporarily close your business, then the best option would be to freeze the business license. Business licenses can be frozen for upto a period of three years, by paying a freezing fee. In the case of sole establishments registered in DED, freezing is allowed for a period of one year.
A company cannot carry on with any of its operations, once the license is frozen. It is illegal. But, the owner of a frozen license or shareholder can start new business in Dubai, by applying for a new license under his name.
The option to freeze license is a savior for many, as it saves them from accumulated fines when license is not renewed, and liquidation can also be avoided.
If an owner fails to renew his license on time, he will have to pay a non-renewed license fine. The rate of the fine amount is different for different emirates and free zones. The fine will be applied every month or year.
The license will be automatically cancelled, if it is not renewed for 5 continuous years.
There are certain procedures to freeze a license in UAE, apart from paying fees. It includes;
- Issuing a letter on corporate letterhead requesting to temporarily freeze the license. The letter should contain details on the reasons and justifications behind the decision.
- Canceling all employment visas
- Obtaining a confirmation letter from Ministry of Human Resources and Emiratisation mentioning that there are no sponsored people on your license. The letter must also confirm that labor restrictions are not imposed on the license.
In the case of Dubai Economic Department, the freezing fee of AED 2,000 per year along with AED 210 per each due month since license expiry date must be paid, after submitting the application. A report from the inspection division in DED must also be submitted.
Once you plan to restart after the completion of the freeze period, the manager or shareholders must submit an application for renewal with a valid lease contract registered in Ejari at the Economic Department.
Nobody would like to close their company for reasons that could be sorted with time, so when you have the option to temporarily shut down your business and resume it once you are back on track, why not opt for it.
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