Skip to main content Skip to search

Archives for May 2020

Advice on how to keep your business thriving despite COVID 19.

Advice on how to keep your business thriving despite COVID 19. 1

Many companies especially the small ones have been hardly struck by the COVID 19 Crisis. We have reached the 2nd quarter of the year, yet the infected cases have been commonly increasing and spreading around the world. All of us have been suffering from this global pandemic and it has become a huge challenge for all human raise. Since the vaccine has not been formulated, all of us must cope up and must go on with our daily lives.

Not only the public health is affected but also our economy. The economy could be worsened if the pandemic stretches for another month or two or worst, into the long term. This is the time for business owners to start working even harder and reevaluate their Business Plans and shift their plans into new normal settings.  

Here is some advice that business owners may apply in shifting their plans into a new normal setting:

Advice on how to keep your business thriving despite COVID 19. 2

          1. Adapt current market evolution 

Adapting or understanding the current market situation is going to be hard. But you may use this as an advantage over your competition. Learning customers’ or clients’ behavior is one of the best strategies needs to be applied during this pandemic. People now are becoming more active online as the government promotes and mandate its jurisdiction to stay at home. And as business owners, we must align our business with the new trend. We have to be more active online and reconnect with our clients. Maximize the time to be more socially active online.

Advice on how to keep your business thriving despite COVID 19. 3

          2. Manage your employees and keep them engaged. 

During the crisis, many companies think that the last resort they could do to save the company is to consider layoffs. But smart companies keep their employees and optimize their skills and talents.

It is vital to know the strengths and weaknesses of your staff to utilize them and maximize what they can offer during the crisis. It is a team effort and a company cannot run without its workforce. Consider your employees as an asset and they will be at their best and realize that they are appreciated, engaged, and acknowledged.

Advice on how to keep your business thriving despite COVID 19. 4

           3. Manage your cash flow and expenditures 

Peter Moore once said, “don’t live beyond your means”. This might be old but still gold.

It is a piece of very practical advice to everyone to not spend if you still cannot afford it. This quote helps you on how to manage and increase your cashflows and minimize your expenditures. Forecast your cash flow for the next three months. Try to delay your expenditures. Communicate with your suppliers, request if you can hold or stretch out the payment for the next few months. Be respectful and professional when it comes to collecting payment. The goal is to convince your clients to pay you at least 25% of your services rendered. Understand that your clients’ business struggles too.

 

Advice on how to keep your business thriving despite COVID 19. 5

          4. It is time to claim your insurance policies.

Are you properly insured? Study your business insurance policy, be aware of the inclusions and exclusions especially business disturbance or interruptions. Make sure that your policy is updated.  

Following this advice helps your business survives during the crisis. It may take more months to restore the normal working tradition, but no matter how restrained the situation is, we should not let this crisis defeat us, rather look to the brighter side of it to win against the Pandemic.

Read more

ECONOMIC SUBSTANCE REGULATION UPDATE

ECONOMIC SUBSTANCE REGULATION UPDATE 6

Economic Substance Regulation Announcement

 

We would like to introduce and update you with this newly implemented UAE Cabinet Decision No. (31) of 2019 concerning Economic Substance Regulations (ESR). In accordance with this new law, there is a need for all Licensees in United Arab Emirates to notify the Regulatory/Licensing Authority (DMCC, DSOA, DAFZA, JAFZA, etc.) on or before June 30, 2020.

It is stated in Economic Substance Regulations (ESR) that every Licensee that carries on a Relevant Activities (mentioned below) and derives an income from mentioned activities here in the UAE, including Free Zone Companies are required to perform Economic Substance Test.

This is a compliance audit which was newly implemented in UAE for financial years commencing from January 1, 2019 to December 31, 2019 and so on. This is a “Must Do” for all Onshore and Free Zone Companies in UAE. Please find attached copy of the Cabinet Decision no. (31) of 2019.

 

What are the Relevant Activities covered by this regulation? 

9 Relevant Activities covered by this regulation as follows:

  1. Banking Business

  2. Insurance Business

  3. Investment Fund Management Business

  4. Shipping Business

  5. Lease-Finance Business

  6. Distribution & Service Center Business

  7. Headquarters Business

  8. Intellectual Property Business

  9. Holding Company Business

If your Company is carrying one of the above relevant activities, you must ensure to meet the substance and reporting requirements set out under ESR.

 

How much are the penalties for failing to notify and submit form to the authorities?

Notifications must be submitted in the form and the manner approved by the Authorities. Penalties for failing to notify the Authorities are between AED10,000 and AED50,000. Other penalties apply where Licensees fail to provide accurate or complete information and demonstrate sufficient economic substance in the UAE.

Companies in which UAE Government owns 51% direct or indirect ownership in its shareholdings are not subject to the ESR but will be required to submit a notification to the Authority.

 

When is the Deadline of Notification Filing?

ECONOMIC SUBSTANCE REGULATION UPDATE 7

How can we assist you to avoid potential risks?

To help you on this matter, we can prepare our Review Services Proposal wherein our firm can assist you in managing economic substance test and we can be able to advise potential risks of non-compliance for your business.

Please inform us should you require our Financial Review and Assessment procedures in connection to this ESR.

 

Speak with our compliance auditors at Asad Abbas & Co. (Chartered Accountants).

Call or send WhatsApp at +971 56 219 2484 or Email us: info@abbasaccounting.com

Share on facebook
Facebook
Share on google
Google+
Share on twitter
Twitter
Share on linkedin
LinkedIn
Read more
en English
X
WhatsApp Logo

We use cookies to give you the best online experience. By agreeing you accept the use of cookies in accordance with our cookie policy.