Month: January 2021
UAE Citizenship for Expats
Jay Krishan, Partner
Phone:- +971 4 327 7775
Mobile:- +971 50 677 5860
WhatsApp:- +971 56 219 1607
Email:- dubai@hlbhamt.com
The UAE has announced major changes to the citizenship law. As per the new amendment, investors, professionals, special talents and their families can acquire the Emirati nationality and passport, provided certain conditions are met. Dual citizenship is another attractive feature.
Categories that come under the amendment include;
- Investors
- Doctors
- Specialists
- Inventors
- Scientists
- Talents
- Intellectuals
- Artists and their families
Conditions that must be met in each category
Investors: Must own a property in the country
Doctors and specialists: Must have specialization in a unique scientific discipline or a scientific principle that is on high demand in the country. In addition to this, the applicant should have acknowledged scientific contributions, studies and research of scientific value and a minimum practical experience of 10 years. They must also have membership in a reputable organization in their field of specialization.
Scientists: Must be an active researcher in a university or research centre or in the private sector and should have minimum 10 years of experience in the same field. The applicant should have made some contributions as well in the scientific field, such as winning a prestigious scientific award, or securing substantial funding for their research. A recommendation letter from recognized scientific institutions in the UAE is also a must to apply for the citizenship.
Inventors: Inventors must have one or more patents approved by the UAE Ministry of Economy or any other reputable international body, along with a recommendation letter from the Economy Ministry.
Intellectuals and artists: Must be exceptional in the culture and arts field and should have won one or more international awards.
People qualified for the citizenship will be nominated via the Emirates’ rulers court, the courts of the crown princes, the executive council in an emirate or the cabinet.
The move is a token of appreciation for the talents and competencies present in the country and it will also attract more intellectuals. This will in turn boost the development of the country.
We are awaiting more details on the conditions that need to be met for each category.
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UAE Financial Reporting Challenges and Implications from Covid-19
Ashton Madiyiko
Phone:- +971 4 327 7775
Mobile:- +971 50 749 0576
WhatsApp:- +971 56 219 1607
Email:- dubai@hlbhamt.com
The coronavirus (COVID-19) pandemic has presented unforeseen and risky challenges for all organizations across the world. The lockdowns and measures taken worldwide to slow down the spread of the deadly virus have affected both the supply-side and demand-side of goods and services. Economic recovery is challenged and the long-term impact of the crisis remains uncertain and difficult to predict as we enter a second wave. Consequently, this uncertainty may have enormous implications for financial reporting for most organizations.
Therefore, it is essential to understand how the pandemic has affected your financial reporting responsibilities and how it can be managed. There will be multiple financial reporting implications to be considered by preparers of financial statements to report in the short and long term. The implications include asset impairment, revenue recognition, penalties, debt restructuring and compensations.
Impairment considerations
Re consideration on expected credit losses and future cash flow projections used in impairment testing is vital due to the outbreak of COVID-19. Many companies have experienced an economic loss because of this pandemic. These incurred and expected credit losses need to be examined to determine the impact on impairment assessments. Inventory, goodwill, intangible assets, property, plant & equipment, financial assets and investments will all need to be assessed for impairment losses. Management teams that perform impairment testing in-house may find this requirement a challenging task to be added to their role when management’s full attention on operations is crucial. This is also an area that will likely be subject to particular scrutiny and challenge by external auditors.
Revenue recognition
Revenue to be recognized as COVID-19 may have impacted the pattern of revenue recognition; entities may have to account for returns and refunds, for example, some schools and colleges may have to provide tuition refunds for cancelled classes and event management companies for cancelled events. For long term projects, contracts may need to be amended or modified to cater for the delays in rendering services.
Penalties
Conferences and events cancelled, resulting in loss of deposits and or penalties for terminating contracts, will need to be appropriately recognized, measured, presented and disclosed in financial statements. It is therefore crucial that organizations review their arrangements for termination and force majeure clauses.
Debt restructuring
Governments around the world introduced lockdown measures that have brought much of global economic activity to a halt. Many businesses were forced to reduce their operations or shut down resulting in cash inflows decline and as such sought additional financing, revision of repayment terms and interest rates of existing debt agreements and or request waivers if they were no longer capable of servicing debt covenants. Such modifications may impact the classification and measurement of financial liabilities presented on the balance sheet.
Compensations
Entities with business disruption insurance may be entitled to a certain amount of proceeds to cover some or all their losses. Besides, there have been and will likely be more government grants/incentives available to help support businesses which will have financial recognition and disclosure implications.
Going concern situations
While assessing the entity’s ability to continue as a going concern, management must consider events after the date of the financial statements. After assessing, all the available information and situation, the entity will consider whether there is material uncertainty which raises significant doubt about their ability to continue as a going concern.
HLB HAMT can help you manage the financial reporting implications for your company resulting from COVID-19 ;
- Through our dedicated valuation experts
- By helping in development of a framework for effective financial crisis management and contingency planning
- Through our business consultants who can assist in debt restructuring and renegotiating debt agreements
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Signs that indicate your Company needs Outsourced Accounting Services in UAE
Vimal Kutty
Phone:- +971 4 327 7775
Mobile:- +971 56 147 0259
WhatsApp:- +971 56 219 1607
Email:- dubai@hlbhamt.com
You Cannot Spend More Time on Your Core Business Processes:
Back office tasks of your company such as inventory reporting, payroll as well as managing receivables and payables are very important. However, they also take a significant amount of time away from your core business.
Outsourcing your accounting needs transfers these critical tasks to a team of experts, freeing up your time to focus on value-added activities such as building better client relationships, exploring new partnerships, and expanding your business.
Your In-house Resource Has Let You Down Too Many Times:
Many companies across the country hire part-time or full-time accountants to manage their accounts and books, but what if your part-time in-house accountant or bookkeeper:
- Is unable to keep up with changing tax regulations?
- Often goes on vacation for two weeks?
- Leaves you entirely without informing?
Although this is a conventional way to find an accounting solution for your business, when you’re relying on a single person to keep your accounts up-to-date it leaves your business at risk. By hiring outsourced accountancy services to manage your accounts and books, you gain access to an entire team of professionals who are available whenever you need them. This ensures business continuity and also gives you peace of mind.
Your in-house Resource is More Expensive:
Aside from the risk of entrusting your precious financial documents to a single person, there is also the issue of cost. A typical full‐time accountant in UAE can costs you something which a small or startup Company may find it difficult to afford.
On the other hand, the accountancy outsourced services in the UAE are more dependable and affordable than the full time or part-time accountants and bookkeepers you hire. Outsourced accountancy services are available at a fraction of the cost of having someone in-house who may or may not be meeting your business requirements in the first place.
Concerned about Employee Fraud:
No one wants to think the worst of their employees. But sometimes there are employees who choose to show the worst of themselves to their employers.
By outsourcing accounting services, you will have a team of people who will cross the t’s and dot the i’s to ensure that your business’s finances are accurately reported. Having additional pairs of eyes checking for anomalies provides an extra layer of protection—not only in terms of trying to prevent fraudulent activity but to increase your business’s overall financial accuracy as well.
Growing too fast to keep up with Finances:
If your business is successful and growing at an accelerated rate, it may be time to consider outsourcing your accounting services. By trying to wear many hats and do too much yourself, you may inadvertently hinder the future growth of your business.
Outsourcing your accounting function provides even more value to rapidly growing businesses who need to focus their energy on scaling, not accounting. When you outsource accounting services, you can focus your time, energy and resources on increasing business revenue, enhancing your relationships with your customers, and achieving company goals or creating new ones.
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Company Liquidation 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
Liquidation is one among the most complex procedures for a business entity as it requires several formalities and the involvement of third parties. What exactly does liquidation mean? In short, liquidation is winding up of an entity and the selling of its assets to distribute them, depending on the factor whether the company is solvent or insolvent.
Liquidation as explained in finance and economics is the process of dissolving a company and distributing its assets to litigants. When a company is insolvent, its assets are used to pay the obligations as it failed to pay when they were due. It is the usual practice to pay the creditors and shareholders once the company is dissolved, based on the priority of their claims. General partners are subject to liquidation.
Liquidation occurs when a limited company decides to end their business for one or the other reason. At this point, you might consider liquidating your company; which in turn means turning your assets into cash.
When a company undergoes liquidation, they sell their assets so that they can pay back their debts/liabilities/obligations. Selling of poor-performing goods at a price lower than the cost of the business or at a price lower than the business’ expectation can also be referred to as liquidation.
When a company is being liquidated in the UAE the assets and properties of the company are distributed to the creditors and/or shareholders.
The reasons for liquidation can be different: it can either be due to the expiry of license/ duration mentioned in the articles of incorporation/ association or the completion of the objective for which the company was established; the loss of all/ most of the company’s assets; merger; approval of the shareholders that the company’s term of existence be brought to an end as per stipulated majority, etc.
Who is a Liquidator?
A liquidator is the person who conducts the overall liquidation process. They are appointed by the court or the shareholders of the company depending on the type of liquidation.
Cancelling your Business License – why is it important?
Cancelling your business license is important in the process of liquidating a company in UAE as it will inform the government entities that you are no longer in business. This helps the businesses from incurring any fines or penalties on the license which are bound to happen if the licenses are not renewed. In case of the shareholding company, discharging the liabilities towards creditors and partners is mandatory before finalising the cancellation process.
Formalities for cancelling your Business License
The procedure for canceling a license is different for sole proprietorships (single shareholder companies), and companies with multiple shareholders. As for the former, cancellation must be applied via licensing authority and all the required clearances must be obtained from various departments depending on the activity;
- Ministry of Human Resources and Emiratisation
- Directorate of Residency and Foreigners Affairs
- The relevant water and electricity authority
- The Leasing Entity
- Customs
- Federal Tax Authority
As mentioned earlier, it is important to liquidate the shares of the companies with shares, collect the existing debts and pay the creditors before finalizing with the LICENSING AUTHORITY.
The below mentioned legal forms of companies need to appoint a liquidator to carry out the liquidation process in the UAE;
- Mainland companies
- Free zone companies
- Offshore companies
The process of liquidating a company
The formal insolvency procedure in which a company is brought to an end is called liquidation; the liquidation of all the assets of the company is followed and the proceeds are used to repay the creditors. There are two main types of liquidations for insolvent companies– compulsory liquidation and creditor’s voluntary liquidation (CVL).
Compulsory Liquidations: If a company fails to pay their debts on time, the creditors may request the courts to liquidate the company with which the dues can be cleared. When the courts force a company to liquidate and pay the outstanding debt by selling its assets, it is called compulsory liquidation.
Creditors’ Voluntary Liquidation (CVL): If a company does not have any assets and cannot get back to its former state, then the laws in UAE demand the liquidation of the company.
Cancellation of the business license from the licensing authority is the first activity to be done in the liquidation process, followed by the procedures given below:
The first procedure is the cancellation of all existing employees’ visas. Prior to the company liquidation, all the active UAE resident visas should be canceled in case the employees have to shift to the sponsorship of another company or leave the country.
The second Procedure: The board of director’s resolution with the liquidation decision, which is attested by the Notary Public, must be issued. This is then followed by the appointment of the liquidator.
The third Procedure: Once the liquidation process is complete, the liquidator issues the company liquidation certificate. The liquidator is in charge of submitting the License Copy, Auditor Registration Certificate and Authorized Signature Certificate attested by Notary Public.
The fourth Procedure is the publication of liquidation advertisement in two local Arabic newspapers for one day; giving an opportunity for the creditors to submit their financial claims if any for a period of 45 days from the day of publication.
Procedure number five is to get confirmation from the liquidator and partners that no objections or claims have been received from the third party during the advertisement period.
Procedure number six: A final audit report of the company must be prepared and submitted to the registration authority, once all the previous five conditions are met.
Procedure number seven is to cancel the visas of the investors and partners that are still active and associated with the company.
And the final and eighth procedure is obtaining the clearance letters from the Ministry of Labour, Immigration, and utility providers.
Process may slightly vary depending on the regulator however, the basic requirements of liquidating the company more or less the same.
The time span required to complete the process would be 3 months or more depending on the type of license and legal status of the company.
Consequences of Liquidating a company
When the company is liquidated, all its functions will be ceased and it cannot do any further business or employ candidates. The company will no longer exist once it’s been removed from the companies register at the Companies House. The assets of the company are used to clear its debts and any money left will be distributed among the shareholders after liquidation.
Assets of the Company
The assets of the company after liquidation upon payment of the debts shall be divided among all the partners. Each partner shall obtain an amount equal to his share in the capital, and the rest shall be divided among the partners at the pro rate of their shares in the profits. If a partner fails to collect his share, the liquidator has the authority to deposit the share in the treasury of the Competent Court.
If the net funds of the company are not sufficient to pay the shares of the partners in full, the loss shall be distributed among them according to the prescribed rate for the distribution of losses.
Employee’s situation when a company dissolves in UAE
If a company dissolves or shuts down, the employees are still entitled to outstanding holiday pay and gratuity but the involvement of the Ministry of Labour would be necessary. The employees are also allowed to transfer their sponsorship to a new employer. In case they fail to find a new job then it is mandatory to cancel the visa and leave the country.
Liquidation process marks the end of an entity in every possible way, it affects the employees, shareholders and everyone associated with it. It is important to have someone to guide you throughout the liquidation process, as there are scopes fraudulent practices. A business consultant can help you complete the tasks smoothly and can even help you get the certifications done. They can also help you in choosing the liquidator.
HLB HAMT is one of the leading auditing and business consultancy firms in Dubai and the whole of UAE. Our professionals will ease your task with their prowess in attaining the documents and also aid you with any accounting or auditing service you require. We provide every service related to liquidation from preparing the board’s resolution to the complete process of liquidation.
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Achieving the post-pandemic vision: leaner, greener and keener
HLB Survey of Business Leaders 2021
HLB Global
HLB’s Survey of Business Leaders 2021 aims to inform the debate on the actions CEOs are taking to achieve their post-pandemic vision for a leaner, greener and keener future. Download the report by HLB
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Accounts Outsourcing in Dubai
Vimal Kutty
Phone:- +971 4 327 7775
Mobile:- +971 56 147 0259
WhatsApp:- +971 56 219 1607
Email:- dubai@hlbhamt.com
There might be many reasons that restrict a company from consulting an external accounting team, expense being the primary one. But there are more reasons that make these accountants an inevitable part of your business. Handling things on your own will seem hassle-free in the beginning, but when it comes to the problems, stress and uncertainty that comes along with it, outsourcing your accounting work will seem to be the best option.
Real-time financial information is mandatory to operate in the competitive market.
Why should you outsource accounting?
- Ensures accuracy
Financial aspects of a business are always complex. Accurate and timely accounting is the cornerstone of business success. An experienced accounting team takes extra effort in double-checking their work and in ensuring that there aren’t any errors.
- Updated about the changing rules
Local regulations and rules relating to finance, tax, etc, that are most likely to affect your business operations, keep changing. A consultancy will have numerous experienced accountants who will be updated about these amendments and they can help you navigate through the process.
- Helps in the growth of your business
A professional accountant can help in steering your business and provides insight on cash flow patterns, thus helping you take important decisions within your enterprise. They also aid in identifying opportunities and issues.
- Saves your time
No business owner would like to spend their precious time slogging through files. Rather, they would like to focus their time and attention on maximizing the potential of their business and enhancing its growth. A good accountant will ensure that there are nil problems and even if one arises, they will be better equipped to handle it.
- Identifying market trends
Accounting industry has witnessed countless changes in the last couple of years and companies are always on the lookout for latest trends happening in the sector. A professional accountant will help clients spot market trends and assist them adopt latest technologies into their accounting business.The role of an accountant is not limited to crunching numbers, they are more like advisors who contributes significantly to the growth of an establishment.
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Internal Audit in Post COVID Era UAE
Ammar Kotwal, Senior Auditor
Phone:- +971 4 327 7775
Mobile:- +971 558074568
WhatsApp:- +971 56 219 1607
Email:- dubai@hlbhamt.com
Internal Audit (IA) is an independent management function, which involves a value addition by suggesting improvement methods and strengthening the overall governance mechanism of the entity, including the entity’s strategic risk management, internal control system & processes.
Internal Auditing demands professionals to acquire an in-depth understanding of the business culture, systems, and processes, in order to provide organization with an assurance that internal controls in place are effective/ adequate to mitigate the risks.
The Internal auditor should do a risk assessment of an organization and identify critical audit areas. The audit process should be organized in such a way that more time is devoted to high-risk areas and issues, while less time is devoted to low-risk areas.
Risk
Risk prevents an organization from achieving its objectives. Risk can cause financial disadvantage, or it can result in damage, loss of value, and /or loss of an opportunity to enhance the enterprise operations or activities. Risk is the product of the likelihood of occurrence of an event and the impact of such occurrence to an enterprise. Risk may be broadly classified into Strategic, Operational, and Financial.
Strategic Risks:- are associated with the long-term objectives of the enterprise
Operational Risks:- are associated with the on-going, day-to-day operations of the enterprise.
Financial Risks:- are related specifically to the processes, techniques, and instruments utilized to manage the finances of the enterprise, as well as Enterprise Risk Management processes involved in sustaining effective financial relationships with customers and third parties.
Impact of COVID -19 on Internal Audit
In the recent past, due to COVID-19 many companies had to limit or suspend business operations and permit employees to work from home. These measures have significantly disrupted the activities of industries such as tourism, hospitality, transportation, retail, entertainment, manufacturing and the financial sector.
The significant risk which have popped up for companies includes impairment of assets due to financial losses, inventory valuation lower than cost, disruption in supply chain management, delay in recovery of receivables, changes in risk assessment, and the impact on its ‘going-concern’. Other important risk includes liquidity, Working capital, employee health and well-being, and employee return to work.
The impact of COVID-19 should be identified at an early stage of the preparation of the Audit plan with the help of appropriate risk assessment procedures that are actively communicated to relevant stakeholders, including the management, to assess and identify situations that require immediate actions and enable auditors to plan the audit.
While Making Audit plans the auditor should consider :
- Availability of client staff to provide necessary explanation and supporting evidence Via online video calling
- Ability of audit teams to visit client sites to conduct audit work.
- Ability to confirm reliability/authenticity of scanned documents provided to enable remote auditing
- Ability to obtain sufficient appropriate audit evidence if physical stock counts are attended remotely
- Auditors may need to identify and reassess the risks associated with company operation as a whole as the information on which the initial risk assessment was based may have changed. Due to COVID -19, the operations of few companies may have been materially impacted.
COVID -19 and remote working requires companies and organizations to take immediate decisions and actions to ensure business continuity, strengthen finances through the recovery of receivables and protect staff by restricting travel.
Ways to respond to COVID -19
Video conferencing technology with software like Zoom, Microsoft teams, Webex, Skype, Goto meeting, etc. has been particularly helpful to enable internal audit functions in a remote working environment. Internal audit functions have used the technology to hold virtual meetings in place of face-to-face meetings, carry out inventory walk-throughs or walk-throughs of specific processes with process owners. Data analytics has also been an effective tool, enabling internal audit functions to focus on high-risk areas by analyzing data for anomalies, patterns, and trends.
Audit plans can be modified/prioritized from a traditional basis to one that focuses on the current year only and including an audit function where risk is very high and which can be easily done remotely. Audit plans can be prioritized based on :
- Areas/functions which can be kept on halt, or postponed because they are no longer relevant
- Functions which can be done remotely
- Areas to be added due to new risk because of change in operations due to COVID-19.
- Audit areas which should be covered mandatorily as per regulatory requirement
Internal Auditors should focus more on crisis management and business continuity and later review the effectiveness of the same. They should make use of RPA and AI & data analytics in identifying the outliers, exceptions, and in obtaining other meaningful results. Internal Auditors should obtain offsite access to the client system in order to gather the data independently without the help of any client staff.
The pandemic has opened up many new practices that work effectively and it is highly recommended that the internal audit functions adopt these as the ‘new normal’.
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Driving SMEs’ Digital Transformation UAE
Midhun Menon
The most innovative and important part of any industry is the Small and Medium enterprises; some experts even call them the backbone of a country’s economy. Often, we come across many SME companies taking urgency to execute digital adoption as a way to remain competitive in the market. But unfortunately, many struggles to succeed as they don’t know what all areas they should focus on and more importantly where, to begin with.
If you are part of an SME fraternity, you would always have wanted to understand and structure the potentials of digital and data-driven innovation. Some might have even started their digital transformation journey already. The biggest driving force for this change will come from your customers, as they are raising their bar of expectations all the time. Today’s customer wants all the information regarding your services or products at their fingertip.
So what exactly is Digital Transformation (sometimes referred to as DT or DX)? Digital Transformations starts with digital workplace adoptions. Your teams can remotely collaborate easily with the help of technology from any nook and corner of the world. The investment in such digital workplaces is encouraged even more due to the current situation the world is going through. In simple words, by using the right technology, you can empower your modern workforce, get crucial business insights, effectively engage your customers and maximize your operational performances.
There are particularly three major areas where Digital transformations can help SME’s;
Enhance Customer Engagements:- Make your customer’s buying journey an enriching one by delivering a personalized and connected experience.
Increase Employee Productivity:- Effective collaboration & management tools help in meeting customer demands and thereby increasing both employee and company productivity.
Streamline Your Operations:- Synchronize your business processes across departments, manage your resources better, and enhance the information flow across your business operations.
Studies from Microsoft shows there has been a 22% increase in employee productivity, a 50% decrease in employee turnover and nearly $20k savings average in an SME through digital adoptions. Innovative and leveraging technologies like Artificial Intelligence, Robotic Process Automation, Internet of Things, etc. enable SMEs to understand their real-time business performances and measure customer interactions.
The movement from on-premise legacy solutions to cloud-based ones has brought in mobility in operations. Now you can access your business, anywhere, anytime. Moreover, business data analytics tools like Microsoft Power BI will give great insights into your company’s performance and also provide you with an eye to the future.
Digital Transformations have opened new prospects of operations for SMEs. Traditional off-line businesses are moving online and enhancing their reachability. The world is moving fast, so adaptability is the key here, never let your company stagnate and strangle in legacy technologies. Improvise, adapt, overcome.
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Adapting to Remote Audit in UAE
Arun Mohan
Phone:- +971 4 327 7775
Mobile:- +971 50 749 0576
WhatsApp:- +971 56 219 1607
Email:- dubai@hlbhamt.com
The COVID-19 pandemic has presented many business challenges. Large organizations around the world pivoted to remote work to maintain business continuity and audit profession was no exception. A remote audit, also known as virtual audit, is the method of conducting an audit remotely, using electronic methods such as video conferencing, email and telephone to obtain audit evidence, just like during an on-site audit.
Remote auditing has been a challenge for the profession because of the belief that auditors may be more likely to discover fraud or simple mistakes when they visit a site. Moreover, clients are likely to always remember how their auditors responded to the pandemic. So it is necessary that auditors should make use of the remote audit to deliver a high-quality service to the client.
The benefits from the remote audit can be broadly classified as below;
Ease with the use of Technology
The utilization of technology for sharing data such as a cloud portal will save both time and money. If a set time is allocated for remote audit activity, auditees are less likely to be side-tracked or disturbed with any other work requests. Moreover, interviews and audit meetings can be conducted through popular platforms like Microsoft Teams, Skype or zoom, which are regularly used by many of the companies already.
Audit team efficiency
Remote working unlocks the available manpower resource and there will be wider access to auditors with the right competence, including across borders. ‘Audit burnout’ is common in the industry, particularly if auditors are carrying out several projects simultaneously. Remote auditing can break up the audit process which will help to reduce burnouts without turning down the efficiency of the overall audit process.
Savings in logistics
When conducting remote audits, there will be minimal logistics related to booking conference rooms as well as worrying about audit team accommodation and other related inconveniences experienced during an onsite audit. There will be a significant reduction in money and time spent on commuting to the audit location.
Some of the probable challenges to remote audit are;
Auditee expectations
The expectations of multinationals and small or medium-sized enterprises (SMEs) clients may not be the same. Many of the owner-managed businesses would want to talk in person and want to have that personal touch in the audit.
Common Issues with technology
The reliability of network connections can be a concern based on the location of the auditee and the technology used. Sometimes the auditee can have difficulties with accessing the private networks to log into a database in order to share the audit evidence.
Inherent limitations
The entities that require inventory/physical asset observation procedures, the transition to remote auditing may prove more challenging.
Remote Audit at HLB HAMT
We have already been employing cloud-based technologies and software for our audit purposes for the past few years. Our team members engaged were already well trained and confident in the use of the technologies. The transition from on-site to remote audits was already ongoing and has been sped up due to the pandemic.
The circumstances paved a way for us to encourage our clients to utilize a secure portal to share data and to be available for Adhoc meetings. What we learned is that inter-personal behaviors and relationships can do so much to maintain the flow of information in the remote audit process. What was left to us was to learn the balancing of both personal breaks and work timeslots. The feedback from our remote auditees is that the “remote auditing process is seamless and has time savings’.
A remote audit has already proven beneficial for both auditors and clients. It is probable that this is here to stay and auditees have to redesign themselves to adapt to the new normal.
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UAE ESR Compliance Deadline Extended till January 31st
Jay Krishnan, Partner
Phone:- +971 4 327 7775
Mobile:- +971 50 677 5860
WhatsApp:- +971 56 219 1607
Email:- dubai@hlbhamt.com
The ESR compliance deadline in UAE has been extended for a month to January 31st 2021. The extension is a great relief to businesses as they had a rough time preparing the documents to be submitted in a short period of time.
The amended ESR was released in September and those who submitted the notifications in June were caught up in a year-end rush in December, thus the extension has been a great relief for them. This extension should be considered a golden opportunity and the organizations must act smart to get things done during this period.
This extension period also provides a chance for businesses that has already submitted the ESR notification to make amendments if any. The corrections made during this period will free them from the financial penalties.
The ESR compliance requires the board meeting reports of every organization and as the situation is not suitable for in-person meetings, the businesses demand the clarity of such requirements. The board meetings may not be even conducted in the UAE or may not take place at all. The ‘strategic decisions’ may not involve all the board member’s approval, a clarification of all these is necessary for businesses to move forward.
The one-month extension is not something that you get often so it is important to make the most out of it and could even be a fresh start for the businesses to ensure accurate compliance of the ESR.
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