How much tax UAE expats have to pay on remittance fee?

Although it has been confirmed that there will be a service tax from July 1 on the fees paid by Non Resident Indians (NRIs) for sending money back home, it is not clear the amount of tax the expats in the UAE have to pay for each transaction.

In principle, the Indians in the UAE may have to pay a 12.36 per cent service tax on the fee paid by them on remittance. At the moment Dh 15 is the fee charged by most of the money exchange centres in the UAE on each transaction. But it is not clear whether the service tax will be levied on the fee paid in the UAE or the fee charged (if any) by banks in India for the same transaction as too many technical issues are involved.

Vayalar Ravi, the minister of overseas Indian Affairs, told Gulf News yesterday that most probably the tax will be levied on the fees charged by Indian banks but he was awaiting further clarifications from the ministry of finance to confirm it.

An official at the Foreign Exchange and Remittance Group - U.A.E, a common platform of money exchange centres in the country, told Gulf News yesterday that Indian banks do not charge any fee on individual [remittance] transaction from the UAE.

But a top financial consultant said it is not clear how the government is going to collect the tax -whether from abroad or through banks in India.

The new Indian laws empower the government to impose service taxes on transactions [towadrs India] being carried out abroad especially by the foreign money exchange centres having branches in India , said Sachin Menon, partner and the National Head of Indirect Taxes at KPMG. “But many technical issues are involved in it and we have to wait and watch,” he said.

Indirect tax may be known by bank statement alone

India Parliament imposes new tax on NRI remittance fees

New rules pave the way for 12.36% service tax on the “fees” paid by NRIs for remittances

Abu Dhabi  A new service tax rule passed by the Indian parliament is not meant to levy a service tax on the remittances to India made by Non Resident Indians (NRIs), a prominent financial consultant in India told Gulf News on Thursday.

The new rules passed by the parliament last month will pave the way for levying 12.36  per cent service tax on the “fees” paid by NRIs sending money to their country, said Sachin Menon, Partner and National Head of Indirect Taxes at KPMG in Mumbai, a prominent  financial advisory in India.

He clarified that no tax can be levied on the income or remittance made by NRIs abroad in the present legal system.

Menon explained that the proposed service tax is on the “fee” on the remittance made  by the NRIs. The tax is not at all on the income earned by them abroad or the remittance they make from abroad, he explained.

Rumours had spread among Indians in  the Gulf that they would end up paying a service tax of 12.36 per cent of remittance to India, which will be unbearable to the most of them. 

Even a prominent Member of Indian Parliament in Kerala and several expatriate organisations in the Gulf started sending representations to the Government of India protesting against 12.36 per cent service tax on remittance  (not understanding the fact that the proposed tax is on fee of remittance).

This made widespread anger,  anxiety  and confusion in the Indian community in the UAE and other foreign countries. 

The financial consultant said the government made this rule indirectly in a proposal of  service taxes which will be implemented from July 1.  Menon  said, although tax may be a small amount ,  it will be counterproductive as it will low income workers who constitute majority of Indians in the Gulf.  And instead of encouraging foreign remittances to the country, the government is discouraging it through this foolish and shortsighted move, the expert said. 

Apparently due to this’ backdoor entry of the rule’, the Government of India has not officially explained how it will collect this tax.

In principle, the Indians in the UAE may have to pay a 12.36 per cent service tax on the fee paid by them on remittance. At the moment Dh 15 is the fee charged by most of the money exchange centres in the UAE on each transaction. But it is not clear whether the service tax will be levied on the fee paid in the UAE or the fee charged (if any) by banks in India for the same transaction as too many technical issues are involved. 

Menon said the new laws empower the Government of India to ley a service tax on a transaction carried out abroad, but there may be certain exemptions which will be clear later only. 

Another expert told Gulf News that  although the modalities of the tax collection are not yet clear, the amount may  be around INR  100 (Dh 6.44) or slightly more  per transaction, said K.V. Shamsuddin, a  Director at Barjeel Geojit Securities LLC in Dubai, an international brokerage firm. He said the amount may be small but it will affect the sentiments of NRIs who are giving great contributions to the Indian economy.

Home» UAE» News Article Jun 26 2012 more articles from Khalifa issues law to protect abandoned children

Abu Dhabi: A law to protect children of unknown parentage and provide them with foster families was issued by President His Highness Shaikh Khalifa Bin Zayed Al Nahyan.

The law ensures rights of abandoned children, their civil liberties and interests are guaranteed, according to WAM.

In January, the FNC passed the law to protect children of unknown parentage many of whom are abandoned because they have disabilities, are born out of wedlock, or are the result of an unwanted pregnancy.

The law creates an efficient system involving the Ministry of Social Affairs and the Ministry of Interior to provide needed care for these children, and also highlights the criteria and process by which foster families will be chosen.

According to the law, foster families should meet certain criteria. The first is that the family should be a Muslim and Emirati. The family should be a married couple whose age is no less than 25 years old and should be free of contagious, mental and psychological diseases.

Mariam Al Roumi, Minister odf Social Affairs, said the law is meant to protect rights of children of unknown parentage and integrate them as effective and responsible members of the society.

A foster family will also have to sign an undertaking that they will treat the sponsored child well, and protect and raise him well.

An orphanage will also be set up for abandoned children to ensure that the necessary care is provided in coordination with all specialised bodies.

The law permits woman to foster the abandoned children provided that she is no less than 35 years old, if unmarried, or divorced or whose husband is away from her intermittently.

Zayed Higher Organisation for Humanitarian Care and Special Needs (ZHOFCSN) is the institution that cares for orphans or abandoned children in Abu Dhabi.

“We currently have 54 children received through the public prosecution and the presidential court,” Salem Al Kaabi, ZHOFCSN, director general told Gulf News.

“We have several programmes planned for them. We either arrange for each to live with an Emirati family that we choose carefully, or assign a foster mother to care for a small group of seven or eight depending on their age,” he added.

“At present, citizens can apply to local government authorities to become foster families,” said the minister of social affairs.

According to the law, the abandoned children in the UAE are eligible for Emirati citizenship.

“The law will guarantee the child’s best interest in terms of child-related measures that may be taken by courts, administrative authorities or social welfare institutions, public or private,” said Al Roumi.

Al Roumi said police have to be better equipped in order to be able to document the child and collect details. “The law is to ensure the protection of the person who found the child,” she said.

In other provisions of 24-article law, the ministry and the FNC members agreed that abandoned children would be given a name followed by three surnames, but none that would relate to a known family name in the UAE.

According to the law, the abandoned children should be monitored by sending social experts to their foster families in order to check the children’s status.

The FNC added an article to ensure that the orphans have opportunities to acquire university degrees and jobs before they are removed from a shelter for abandoned children.

Twenty Two Real Estate Brokerage Firms Fined AED 900,000 for Violating Rules

Dubai, 26 UAE, June, 2012: The Real Estate Regulatory Agency (RERA), the regulatory arm of Dubai Land Department (LD) imposed AED 900,000 fines on twenty two real estate companies and brokerage firms during the first half of the year.

Yousef Al Hashmi, director of RERA's Real Estate Licensing Department said that the agency observed the repeated violations by these entities but initially issued circulars to the violating brokerage firms regarding the importance of abiding by and complying with regulations. Then RERA issued notices and warning to these firms before imposing fines on them. Such procedure came as last step after exhausting all means to ensure compliance and safeguarding the rights of concerned parties.

RERA works to create a professional real estate environment governed by clear laws and regulations, according to Al Hashmi. Regulating the real estate brokerage profession aims at clarifying relations between different parties, clients and firms in order to protect the rights of clients against any violations of laws and professional ethics that can be committed by real estate brokers.

Ten types of violations were observed by RERA during the first six months. Twelve companies failed to register the real estate broker, while seven companies violated the type of licensed activity by performing other activity. Other irregularities include failure to mention the company's registration number, failure to register the license in the brokerage registry and failure to renew the broker ID card.

RERA continuously performs inspection, follow-up activities of real estate brokerages that are not registered with the Agency. This comes in line with a strategy to regulate the real estate professions in Dubai and to facilitate the real estate activities for individuals and companies. RERA aims to ensure compliance to the solid legal structure that enhances good dealings, transparency and guarantees sector's maturity.

-Ends-

About Dubai Land Department (LD):Dubai Land Department was established in January 1960 to provide a systematic method for registration of land and property and protect the rights of clients and ensure all legal aspects relating to the sale and purchase of land, which enabled the Department to organize the registration process, which aims primarily to protect all relevant parties. In order to organize and develop the real estate sector in the emirate Real Estate Regulatory Agency (RERA) was officially established as a subsidiary of the Dubai Land Department in 2007 under Law No. (16).

Three more days to register for ID cards in Dubai without fines

The expatriates in Dubai emirate have just three more days (Thursday, Friday and Saturday) to register for national ID cards without fines as the extended deadline in the emirate ends on Saturday.

The deadline in all other emirates had already ended and those who missed it are paying Dh20 a day fine which goes up to a maximum of Dh1,000.

Although the original deadline in Dubai emirate was May 31, 2012, theEmirates Identity Authority ( Emirates ID ) extended it for a month. The authority had said it wanted to help the expatriate labourers who constituted the majority among the residents who did not register before the May 31 deadline.

About 85 per cent of residents who have been registering in Dubai since June 1 [after the end of original deadline] are labourers, a senior official at Emirates ID told Gulf News yesterday.

The rest of them are mostly newcomers, children and people in other categories, said Mosabbah Al Masmari, Head of the Task Force which overseas ID card registrations in Dubai.

Despite the imminent deadline, there is not much rush at the typing centres and Emirates IDregistration centres now, he said.

It is because majority of the residents had already registered, Al Masmari said. But he did not have figures of total registrations or remaining people to be registered. He said that about 50,000 people were registering daily across the country in May and most of them were in Dubai.

“Still we extended the deadline to help labourers who might have delayed the registration due to financial reasons,” the official said.

He said the authority wanted to give the chance to each and everyone to participate in a major strategic project in the country. “When the deadline in Dubai ends, most of the people in the country will have registered in the population register and all projects in the country will be planned based on that data,” the official explained.

He urged all expatriates in Dubai to complete the registrations before the extended deadline to avoid being fined. He reiterated that the deadline for Emirati and expatriate children under 15 is September 30. And expatriate children whose residence visa expires this year have to register along with the renewal of their visa only. For example, if a child’s visa expires on December 31, 2012, he or she does not need to register before September 30 but can do it along with the visa renewal in December.

Abu Dhabi enforces rent contract rule for families

Expatriates renewing family visas or brining in wives must produce tenancy contractAbu Dhabi-based expatriates bringing in their families or those renewing residence visas for their wives and children must now submit a tenancy contract along with other required documents, applicants said on Tuesday.

Scores of applicants said they were turned back by the emirate's immigration authorities on Tuesday for failing to produce rent contracts or utility bills in their applications for residence visas for their families.

All of them were asked to come back and re-apply with a tenancy contract or power-water bill in their names otherwise their applications will be rejected.

But the rule has remained suspended for bachelors seeking to renew their residence visas although authorities said the suspension would not last long.

"I applied today to bring in my wife and two sons from Syria but the application was rejected...they told me to bring a tenancy contract in my name or there will be no visa," said Maher Al Gaddah, a mobile phone salesman in Abu Dhabi.

"The problem is that I don't have an apartment in my name now as it is the first time I plan to bring my family to the UAE....I have rented a flat temporarily for three months but the contract is not in my name...I am now planning to go and see the official in charge and I hope the problem will be sorted."

Expatriate bachelors appear to be still exempted from that rule after Abu Dhabi immigration authorities said last week they had temporarily suspended the rent contract requirement for fresh talks with other competent departments, including the Municipality for attestation of the contracts. They said the delay would also help foreign residents to be prepared for the new regulations.

More than 20 bachelor applicants said they had their residence visas renewed on Tuesday without having to present a rent contract. Some of them were told they must bring that contract or a utility bill for the next visa renewal.

"Today I went to the Department to apply for a residence visa to bring in my wife and two daughters from Syria and they asked for a rent contract...I live with my brother so I submitted the tenancy contract in his name," said Mohammed Al Hariri, a mobile phone shop owner on Defence Road in Abu Dhabi.

"They first rejected it but then an official came and said it would be accepted this time...I was then told to have my own rent contract next time...I was very lucky as my application was processed when more than 30 others were refused."

In Dubai, immigration officials said last week a tenancy contract is required for a visit visa while the rule has not been enforced in Abu Dhabi yet.

An attested rent contract or a utility bill is set to become a must for all residence visa applications through the UAE following a decision by the Ministry of Interior, which said is intended to verify the address of all expatriates in the country and build a reliable housing data base for the nearly seven million foreigners.

"This decision affects all expatriates in the country....applicants for a residence visa renewal must produce a tenancy contract or a water or electricity bill showing their address in the UAE," Major General Nassir Al Minhali, Ministry of Interior assistant undersecretary for naturalization and residence said last week before the new rule was shelved.

"Those working at companies which provide them with collective accommodation must present a proof of their residence, an address and a letter from the employer showing where he resides."

Minhali said the new rule is intended to allow authorities to locate their residence as "addresses given in previous applications are not clear or accurate."

"The decision is primarily aimed at verifying residence of all expatriates living in the UAE for security and procedural reasons...it is a security, administrative and service decision taken by the immigration and foreign affairs departments in the country...it is not targetting any party or property group but it will serve those departments seeking accurate data about foreigners' residences."

Dubai’s foreign trade swells in the first quarter

Dubai: Dubai’s non-oil foreign trade achieved a 6.6 per cent growth during the first quarter of 2012, amounting to over Dh298.1 billion as opposed to Dh279.7 billion in the same period last year, Dubai Customs announced today.

Ahmad Butti Ahmad, CEO of Dubai Ports, Customs and Free Zone Corporation (DPCFZC), said that Dubai’s imports was valued at Dh175.2 billion during the first quarter of 2012 compared to Dh166.2 billion in the same period in 2011, showing a 5.4 per cent increase.

The value of exports and re-exports in the first quarter of 2012 amounted to over Dh122.9 billion, an 8.5 per cent increase compared to the Dh113.4 billion achieved in 2011, he added.

According to Butti Ahmad: “The Dubai Customs Director General also added that the UAE’s openness to the world markets, combined with its capacity to deal with diverse consumer products, has helped in addressing cultural diversification in the country.”

Export volumes

He added that the growing purchasing power parity has also contributed to the increase in the volume of imports. “Moreover, high quality Emirati made products, the promotion of the national industry and the strategic facilities offered to exporters have also played a significant role in increasing export volumes.”

Dr Mohammad Al Asoomi, a UAE-based economist, told Gulf News that Dubai has been showing steady economic growth despite global economic challenges.

“Trade facilities and well planned infrastructure, including the airports and ports, in addition to logistics services, have all made Dubai the preferred business centre in the region,” he said. Al Asoomi added that the trade volume of the UAE will get better once the political turmoil in the region settles down.

India is currently ranked as Dubai’s top trading partner in terms of imports, exports and re-exports, achieving a total value of over Dh40 billion. It emerged as Dubai’s top exporting and re-exporting destination at Dh21 billion and came second in terms of imports at Dh19 billion, following China at Dh25.5 billion, while the US came in third place at Dh16 billion, Dubai Customs said.

Dubai issues licence to 1,542 new firms

The number of trade licenses issued by the Department of Economic Development (DED) in May 2012 reached 1,542, an increase of 14 per cent over the same period in 2011.

The tourism sector accounted for the highest increase in number of licenses (57 per cent) followed by the professional (19 per cent) and commercial (13 per cent) sectors.

The rise in the number of licenses indicates a higher level of interest in commercial and professional activities among businessmen and investors in Dubai. Commercial licenses accounted for 73 per cent of the total licenses issued last month, followed by professional (25 per cent), industrial and tourism (1 per cent each) licenses.

The total number of licenses amended in May 2012 was 5,728, a two per cent increase over the same period in 2011, while the total number of business registration and licensing (BRL) transactions reached 54,286, compared to 44,492 in May 2011, an increase of 22 per cent.

The number of reserved trade names reached 6,010 in May 2012, a 37 per cent increase compared to the same period in 2011, while the number of initial approvals reached 2,733, a 26 per cent increase year on year.

The total number of commercial activities licensed in May 2012 was 4,042, with General trade leading the list of the top 10 licensed activities (174 licences) followed by Dyes & paints (141 licenses); Tiling of floors and walls (138); Carpentry and flooring (133); Sanitary extensions & wares (132), and Installation of air conditioning systems, ventilation and air purification (128).

The number of professional activities licensed in May 2011 reached 1092 with Residences & building cleaning services leading the list of the top 10 licensed activities in this category with 77 licences, followed by Restaurants, Sewing and Cafes.

In the tourism sector, Inbound tourism was the leader with 13 licenses, followed by Travel agent (7), Tourism consultations & entertainment (2) and Accredited airline general service agent (one license).

In the industrial activities segment, Schools and hospitals furniture, Home furniture, Office furniture, and Turning workshop led the list of licensed activities with two licenses each followed by Industrial manufacturing of chemical compounds, Switches & electrical controls, Perfumes, Cosmetics, Raw plastics, and Metal for building construction.

UAE well positioned to host World Expo 2020

Seoul: The UAE is well positioned to host a very special World Expo 2020 in Dubai, the first ever in the Arab world, says Reem Ebrahim Al Hashemi, Minister of State and Managing Director of the Higher Committee for Hosting the World Expo 2020 in an interview with KBS TV, the country’s state-run television network.

Appearing in a TV special dubbed “We’re here at 2012 Yeosu Expo” which went on air on Sunday afternoon (11.10am UAE time) over KBS main channel 9 nationwide, Reem said: “We are very confident of our ability to host this major event. I just hope that we have the opportunity to do so and that we can welcome you to a very special Expo in Dubai in 2020.”

The programme was taped on June 14 when Reem was in Korea to attend the UAE Day celebrations held at the Yeosu Expo UAE pavilion at the head of a 100 plus UAE delegation. The program was hooked up with KBS TV international service as well.

While praising the unlimited support given by the UAE government to enable strong participation at Expo 2012 Yeosu together with a series of previous Expos over more than 40 years since before the State was even established, Reem made it clear that the UAE endorses and embraces Bureau International des Expositions (BIE)’s own vision for Expos that foster education through experience, development through innovation and experimentation through cooperation.

Reem said:” We truly believe in the power of Expos to create a better world. The UAE has a deep insight into the benefits of shared experiences, knowledge and skills. We have over two hundred nationalities living with us and we have no doubt that this has been one of the driving forces for our progress. Multicultural exchange has been a founding principle of the Emirates long before the country was formed in 1971.”

“And just as we celebrate the mix of cultural diversity and innovation that has been our strength, so we understand how expos can play a similar role, enabling different nations to contribute their respective knowledge in the battle to face the major challenges for humanity.” Reem went on to say when asked by reporters what motivated Dubai to become a candidate city to host Expo 2020.

Touching on the competitive edge of Dubai over other candidate cities, she noted that over 60 million visitors travel through UAE’s six international airports each year, and with transport, social and economic infrastructures that are second to none,

“We are promoting Dubai as a host city for Expo 2020 under the theme of Connecting Minds, Creating the Future. I will do my best to achieve such goal while in Korea,” Reem said pointing out that Dubai is the Arab world’s first global city of the 21st century.

The UAE is a strong, vibrant and modern nation open to the world. One-third of the world’s population lives within a four-hour flight of the UAE, two-thirds within an eight-hour flight, top campaigner of Dubai 2020 Expo added.

Among other strong points of Dubai are its strategic location, advanced world-class infrastructure and mature service sector which has made Dubai the gateway to Europe, Asia and Africa, she explained, pointing out that the city has already developed a robust network of economic and urban infrastructure and more are in the pipeline.

She was referring to Dubai’s logistical reach by both sea and air which is unparalleled. DP World, the world’s fourth largest seaport operator, manages more than 60 terminals across six continents.

Dubai’s powerful air transport capabilities which are embodied in its two airports Dubai World Central and Dubai International Airport, making them the fourth busiest in the world.

She then noted that UAE is one of the safest countries in the world as a home to over 200 different nationalities that live and work together harmoniously under tolerance policies of the UAE leadership without being discriminated against because of their ethnic background, religions and beliefs

“Given its growing prominence in regional and global affairs, the United Arab Emirates is the most suitable host for the World Expo. We want to bring the expo to the world and the world to Dubai,” Reem concluded.

The KBS special programme with focus on Dubai’s bid to host 2020 World Expo was also watched by hundreds of thousands of Korean expatriates residing in the United States and Southeast Asian countries through KBS TV global service network hooked up with satellites. KBS TV earlier played up prominently news about UAE National Day and an exclusive interview with Reem during its prime time news programmes on June 14 and 15.

With 49 days to go before the end of 2012 Yeosu Expo, the number of visitors to the Expo 2012 is likely to top 2,200,000 on Sunday, organizers of the Yeosu Expo said on Sunday.

UAE could need more than 12,000 doctors by 2014

Dubai: The UAE is facing a shortage of doctors, and the number could go up to 12,920 by 2014, according to a new study.

The study titled ‘UAE Healthcare Sector Forecast to 2014’was published by research company RNCOS. The reason cited by the paper was that the UAE lags behind the US and some European countries — not in the quality of healthcare, but rather in the ratio of doctors per thousand people.

To close this gap, the Saudi German Hospital-Dubai has increased efforts to draw more talent. Dr Mohaymen Abdelghany, CEO of the hospital, pointed out that the demand is both quantitative and qualitative. In a media statement, he said, “Our criteria regarding qualifications and experience is stringent, and was specifically crafted to ensure we hire only the best.”

The demand for more doctors will impact the health sector. According to industry experts, it will spark increased competition for top doctors and patients will benefit from the wider range of specialists.

UAE seeks own brand logo

Dubai: In a country now home to some of the most famous brand placements in the world, the UAE has launched plans to come up with its very own brand logo to promote itself locally and abroad.

Two months after the UAE was named the second preferred international market by the world’s top 326 retail brands, the UAE is asking the public’s help to select its new future logo.

Five logo finalists have already been chosen and their work has been posted on the website of His Highness Shaikh Mohammad Bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai.

The Ruler has also posted the logo launch on Twitter.

Visitors to the website are being given the opportunity to select their favourite brand logo that best represents the country.

“The nation brand logo that you are going to choose is a promotional logo for the UAE. It shall be used locally and internationally to promote a unified identity for the UAE and express its unique aspects setting it apart from other nations around the world,” the website stated. “The UAE nation brand is to be used as a visual identity for the nation, to communicate to the world its vision and tell its story. The nation brand must reflect the UAE’s global economic and political status and its diverse and attractive cultural and business environment, which make it a leading destination for tourism, economic, and cultural activities.”

The push to brand itself is a wise move in a world with a growing roster of big brand logos and recognisable names, said a Dubai-based branding expert on Sunday.

Haroon Popal, creative manager at Creative Studio, is a specialist in branding, design and logos and said that the branding move “means the UAE wants to position itself in the world to be recognised. Brand awareness is very necessary.”

Branding, he said, is more than just picking a graphic and a fancy font.

“When you brand something, it adds value, whether it’s a company or a country. It becomes valuable,” Popal said.

Constantly exposing a brand to the public also helps create a sense of awareness and identity that people begin to recognise automatically,

“When you see something again and again, you start building trust. It will create recognition, build trust. It also helps one to identify itself a certain style,” Popal said.

Whenever an entity chooses to rebrand, it means they are seeking increased awareness about who they are, what they offer and the values for which they stand, he said.

Voting for the new logo semi-finalists began on Sunday and will remain open until July 18 - visitors to the website can only vote for one design.

Additional activities that need permits as prerequisite from DED

• Opening for work beyond the regular hours (after 12 pm)
• Opening extra office/offices on an exiting license in the same
• location
• Working daytime during the month of Ramadan (restaurants/cafeterias)
• Working in offices located in premises for vehicles mechanical testing.
• Installing an ATM outside the bank premises
• Conducting business activity from vehicles or carts
• Promotional campaigns
• Advertisement posters

UAE Federal Law on Trademarks

Federal Law No. (37) of 1992

A trademark is an insignia or symbol issued by a merchant, manufacturer or a service provider on his product or service to identify it from others.

A trademark can be industrial, which is adopted by a producer to identify his goods. It can also be commercial, which is owned by an agent who buys goods from a manufacturer and resells them to consumers. A trademark can be as well a service mark adopted by a service provider to identity his service from others.

A trade mark and trade name must not be confused. A trade mark is used to identify goods, while a trade name is used to identify a commercial or industrial establishment, and not goods sold or manufactured. Therefore a trade name is usually placed on a shop or factory's façade while a trade mark is placed on goods. The United Arab Emirates Legislature sought to protect tradenames by promulgating Federal Law No. (37) of 1992 on Regulating Trade Marks, in respect of form and substance. The Law incriminates deeds such as imitation, forgery, usurping of trade marks, use of fake and imitation trade marks, or misleading other parties into believing that a trade mark is registered. The Law also regulated registration, cancellation, transfer, pledging of trade marks, as well as contracts involving use of trade marks, and marks used to signify that certain products have been monitored or inspected.

For more details, please contact: m.farook@lexbizco.com

Visit us at :www.lexbizco.com

Licenses issued by DED in April 2012 rises 26% to 1,459

Licenses issued by DED in April 2012 rises 26% to 1,459 Dubai, 20 May, 2012: The number of trade licenses issued by the Department of Economic Development (DED) in April 2012 reached 1,459, an increase of 26 per cent over the same period in 2011. The commercial sector accounted for the highest increase in number of licenses (29%) followed by the professional (24%) and tourism (18%) sectors, compared to April 2011. The increase in licenses relates to a higher level of interest in commercial and professional activities among businessmen and investors in Dubai. Commercial licenses accounted for 74 per cent of the total licenses issued last month, followed by professional (24%), industrial and tourism (1% each) licenses. The total number of licenses amended in April 2012 was 5,251, a 10 per cent increase over the same period in 2011, while the total number of business registration and licensing (BRL) transactions reached 47,082, compared to 39,934 in April 2011, an increase of 18 per cent. The number of reserved trade names reached 5,714 in April 2012, a 58 per cent increase compared to the same period in 2011, while the number of initial approvals reached 2,688, a 47 per cent increase year on year.

'Bogus recruitment firm ruining peoples life'

Watch out

Fraudulent recruitment agencies lure job-seekers by advertising non-existent jobs  in newspapers and on various websites. Respondents are asked to come to their offices where they are asked to pay money for registration and other charges.  Do not pay them. It’s illegal. If they make you an offer that’s too good to be true, in all probability it is. 

Over 70 families duped by scammers face eviction in Al Nahda

Dubai: More than 70 families in a building in Al Ghusais are facing eviction before their tenancy contract ends following a dispute between the landlord and a real estate firm whose owners have gone missing.

Residents of the new 12-storey Dawn building with 96 units in Al Nahda 2 said they had been given until September 14 to vacate their units or sign a new contract with the landlord.

Most tenants signed their contract and gave one cheque to MFR Properties LLC, who had shown them a letter of authority from the landlord before the agents did a runner. A number of tenants had just moved in to their apartments in March.

“We’re being made scapegoats in a dispute between the real estate agency and the landlord,” said Suresh, an Indian salesman whose tenancy ends in November.

The phone number listed on MFR’s receipts no longer works and XPRESS’ e-mails to their Yahoo account went unanswered.

XPRESS saw an authorisation letter dated July 3, 2011 stating that the Emirati landlord, Madya Butti Mujren Sultan, had authorised MFR to represent her to prospective clients. But the Real Estate Regulatory Authority (Rera) had cancelled MFR Properties’ licence in February following numerous complaints from landlords over bounced cheques.

“When I booked the unit in February,” said Tehseen, a 30-year-old Indian IT executive, “they (real estate agents) asked me to pay either in cash or with one cheque. I couldn’t have suspected that they were up to no good as the rents were still falling then. I was just happy to have found a bigger place for myself and my wife,” said Tehseen, who got married in January in India and moved into his unit in March after taking a loan to pay the rent.Most tenants apparently fell for the scam after they were wooed by the slightly below-market rental the real estate company had asked for the new units. One tenant paid only Dh31,000 for a two-bedroom last February when the average rate for a property of that size in the Al Nahda 2 area is about Dh41,500 as per the Real Estate Regulatory Authority’s (Rera) Rent Index.

It turned out that his happiness was short-lived.

Sandy Cuevas, a Filipino aircraft technician, paid Dh32,000 – plus Dh5,000 deposit and commission – for his two-bedroom unit in February. He said: “I have advanced my housing allowance from my company for one year and paid in cash to the agent.”

Established property agents said the below-market rent was a ruse used by MFR to con both tenants and the landlord – the tenants were asked to pay with one cheque, while the landlord was asked to accept four cheques.

The September 14 deadline was handed down by the Rent Committee, a body ruling on rental disputes under the Dubai Municipality, said tenants. While neither the ruling nor the final date couldn’t be independently verified, tenants are appealing to authorities to intervene.

“We understand that the landlord is also a victim in this fraud,” said Rashid Mohammad, 31, a father of one. “We received a notice from the Rent Committee on June 12, which told us to attend a hearing at 4.30pm two days later. In that hearing, we were told the owner and real estate agent had issues because the cheques given to the owner by the agent had bounced. Then we were told to vacate by September 14 as the contract between the landlord and agent expires on that day,” said the Indian telecommunications salesman who also gave Dh32,000 in February for his two-bedroom unit in one cheque.

Mohammad said he spoke to the owner’s representative after the meeting. “He told us to renew by September 14 and that there’s no other option. This is not fair.”

Maqsood Dalvi, 50, an Indian whose tenancy contract expires on December 31, said: “We are unable to live in peace now that there’s an eviction threat hanging over our heads. We hope the authorities would help us sort this thing out.”

Arvind, a 29-year-old IT executive, moved in from Ras Al Khaimah three months ago. “It’s really unfair for us to be evicted six months into a one-year contract. I had taken a bank loan to pay the rent for the entire year till February 2013,” he said.

WEB FORUM

The MFR Properties scam has thrown up long threads in online forums. One MFR victim wrote in a web forum on February 19: “I paid the total rent in one cheque 12 days back. The owner came to me two days back and asked me to do a new contract with him or leave the apartment. I went to police with all the legal documents and police told me, ‘You are safe. You will stay in the apartment for 12 months’.”

Another tenant said: “My eight-year-old daughter suddenly burst into tears when she heard about this issue.”

XPRESS saw a copy of the tenancy contract that bears the landlord’s name with “Managed by: MFR Properties LLC” next to it written in brackets. The landlord declined to comment and referred us to a spokesperson, who had no comment either.

Registration of tenancy contract obligatory in Dubai from July

Dubai Registration of rental contracts with the Dubai Land Department (DLD) is a prerequisite to accessing other government services starting July 1st, according to a top property regulator.

The Land Department and its regulatory body — the Real Estate Regulatory Agency (Rera) — has been trying to implement the system through a registration portal — Ejari.ae.

Marwan Bin Galaita, CEO of the Real Estate Regulatory Agency (Rera) said: “Registration of residential and commercial lease contracts through Ejari is mandatory and failure to comply may lead to delay in government transactions. A Dh160 fee is chargeable to register a lease agreement with Ejari. The fee is payable by the tenants.”

“The move will help the government to monitor the property market and offer better insights through its rental index while ensuring all tenants pay their housing fees regularly.”

The Ejari registration will be mandatory to obtain utility services. If the contract is not registered, transactions could be delayed at several government departments, principally the Dubai Economic Department and the Residence and Foreign Affairs Department.

Dubai tenants can register their contracts online or through 47 typing service offices .

A total of 199,663 leased properties in Dubai are registered in Ejari and expecting to the number to get bigger.

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Expat-sponsored housemaids in UAE must renew ID cards every year

Those sponsored by Emiratis will get two-year visas and ID cardsHousemaids sponsored by expatriates in the UAE will receive identity cards with one-year validity, according to a top official.
Dr. Ali Mohamed Al Khouri, Director-General, Emirates Identity Authority (Eida), said ID cards must be renewed every time residency visas expire. 

While employees of federal institutions get a three-year visa, private sector staff get only two-year visas. And their ID cards will also hold respective expiry dates, he said. 

Explaining ID card validity terms for domestic helps, Al Khouri said housemaids working for Emirati sponsors will get a visa for two years and, therefore, their ID cards will need to be renewed every two years at a cost of Dh200. 

However, housemaids sponsored by expatriates will get a visa for one year and their ID cards must be renewed each year at a fee of Dh100. 

When reminded about the added cost to sponsors, Al Khouri said: "The operational cost of one ID card is more than Dh200. Plus the cost of staff, building and state-of-the-art techniques involved in the process...all these are borne by the government."

Speaking of the benefits of ID cards, Al Khouri said residents will realise its importance in the coming months. 

According to the Chamber of Commerce and Industry of Abu Dhabi, currently five per cent of the total population comprise housemaids. 

And 80 per cent of them are Filipinas and Indonesians.

Tenancy contract for visit visa in Dubai, but not Abu Dhabi

Some residents claim they are not asked for the document even though they have itDo you need an attested tenancy contract when applying for a UAE visit visa?

In Dubai, it is mandatory, but Abu Dhabi says no need for now.

A call centre executive at the General Directorate of Residency and Foreigners Affairs-Dubai told Emirates 24|7: "It is 'mandatory' to provide an attested tenancy contract even if one was applying for a visit visa.

"It's a new rule. You have to provide us with a tenancy contract.

"It should be attested by the Land Department if you are staying in Dubai, or from the respective municipality if you are staying in any other emirate," the executive said.

She added: "We just need the contract and we are not looking at the size of the apartment."

A call centre executive from Abu Dhabi Systems and Information Centre told this website: "For now, you don't require to produce an attested tenancy contract."

Mahesh D, who went to apply for a visit visa, at the DNRD's Jebel Ali branch on June 14th, said: "On the phone they informed me to bring an attested copy of my tenancy contract, but at the immigration office I was never asked for one.

"When I inquired with the officer if he wanted to see my tenancy contract, he simply said 'You don't need to provide a tenancy contract for visit visa'."

He adds: "It was not money but time spent in going to the land department and standing in the queue to get my tenancy contract attested.

"If I had the right info, it could have saved my time."

Mina Saheel, who works in Dubai, said she also wasn't asked to provide the tenancy contract.

"I went to apply for a visa for my parents and I got it immediately. No official did ask me for my tenancy contract."

On June 17, Major General Nassir Al Minhali, the Ministry's Assistant Undersecretary for Naturalisation and Residency, was quoted by Al Khaleej, an Arabic language daily, saying that Abu Dhabi and all other Emirates will soon be enforcing the new rules stipulating expatriates seeking to have their residence visas renewed to submit tenancy contract with their application.

Foreign bachelors must present documents verifying their residence along with their visa renewal application even if they work in one emirate and reside in another.

The newspaper quoted the officer saying that the decision, which was temporarily suspended last week, does not target property firms or any other party, describing it as a "security, service and administrative" regulation aimed at serving the UAE's interests.