Questions & Answers - Legal Advice Middle East

Paying corporation tax when the company provides only remote services

Q: My company is in Gibraltar. I also have a company in Ajman free zone. My Ajman company will provide remote services such as accountancy, IT support, and sales for the Gibraltar company. There is no transport or handling of goods, and the Ajman company will only provide services. The staff salaries will be about 400,000 AED. My staff will be based in India. My Ajman company will be basically used to pay salaries to staff in India. Will my Ajman company have to pay corporation tax? (because it is running and managing the company in Gibraltar) Do I have to register for VAT? Do I have to keep accounts? What do I need to register as a service?

The proper procedure to close a company and vacate its office

Q: I didn`t renew my trade license for 2 years and it`s expired. I need to vacate my company office for which I have a pending rent of 4 months. Can I give a notice to vacate the office to real estate immediately as we don`t have a business and the income is zero? The rental agreement is not also renewed since May 2020. Kindly advice!

What is the penalty of a bounced cheque presented by a bank

Q: Hi! A bank has filed a case against me recently with Dubai Police for defaulting on loan payments. They have presented a cheque of AED 261,000 and the police have given me a date after a week for the court hearing. The actual loan amount pending is AED 147,000. What sort of penalties can be imposed by the court on me and do I need to hire a lawyer for this hearing?

Doing business in mainland Dubai by a free zone establishment

Q: Can a free zone establishment (sole proprietorship), which has its office/headquarter located only in the free zone, do services via a specialized/professional vehicle in mainland Dubai? (Like grooming pets in a professional vehicle and recommending accessories so the customer can buy)

The possible options to renew the visa of a company owner while being abroad

Q: I have been in Dubai for 17 years and have a Dubai Media City Freezone company, of which I am 100% owner. I am leaving to Australia in the coming months but I will keep the company open here. I have 1 full-time employee working here in Dubai Media City. I just renewed my UAE Visa for 3 years and I will be working from Australia doing the same job. I also plan to fly back to Dubai every 6 months or so for work trips to see clients. However, at the moment with COVID-19, it is likely once I am in Australia, I will not be able to travel back to Dubai until after COVID-19, which could, of course, be up to 1 year. What are my options? Will my UAE Visa automatically be cancelled after 6 months? Are there any other options for me? And what happens to my company which is registered in Dubai Media City if my visa is cancelled? Will this also be automatically cancelled too?

Possibility of filing criminal and civil cases at the same time

Q: Hi. I am currently facing a criminal lawsuit from my previous employer. This criminal case has not been finalized and there are some hearings left. At the same time, the employer has put a civil lawsuit against me. My question is whether it is possible for the company to put 2 kinds of lawsuits and both criminal and civil lawsuits can run at the same time?

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Repercussions of terminating a limited employment contract by the employer

Q: Hello Rajasree, I am on a limited-term employment contract. If the employer terminates my contract without any cause, is he liable to pay me a breach of contract penalty of 3 months gross salary? Please advise

Evicting the defaulting tenant immediately if it is mentioned in the contract

Q: Dear All, I have the following question. I am the landlord of an apartment in Dubai. It was rented out by me to a touristic company which now owes me 6 months rent payment. In the contract which we have signed we have the following clause: "In case of any cheque returned unpaid without any valid reason from the tenant, and the tenant fails to settle the cheque value within 20 working days, then the tenant shall be entitled to a delayed penalty equal to 2% of the cheque value added to the due amount and if it is not settled after 7 working days from the date of penalty applied on the due cheque, then the owner has the right to terminate the contract and take immediate possession of the apartment." So, does it mean that I can write an email to him and say that I am terminating the contract and taking possession of the apartment? Or do I still need to send some eviction notice?

How to request settlement before the conclusion of court proceedings

Q: Is there a method for a litigant to make a settlement offer during the middle of litigation? I have a lawsuit that has entered into appeal stage. The opponent informed me that he wishes to make a settlement offer. Can this be done via the court or is it out of court settlement? If via the court, please guide me on the procedure to show the court the settlement offer and get it approved and made into an Executive Writ.

What are the rights of an employee after resignation?

Q: Hi Mr Khaled, In case the company don`t want to pay end of service due to disciplinary action, can I claim my other benefits like leave salary, housing salary & ticket amount wherein the law only talks about the end of service i.e. Gratuity? Please advise (JAFZA Labor Law).

How to cancel an off-plan property contract and recover the amount paid?

Q: I have paid about 15% of installments to an off-plan project. However, due to Covid-19, I am unable to keep up with repayments at the time being. I am also concerned that it has been almost 2 years since I signed the contract and no work has started on the project, it seems no progress. The handover was scheduled to be in 2021 but now delayed to 2022. How could I cancel without losing my 15% paid? And if I continue to pay, but I am not happy with being delayed and never starting work, what should be done?

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Can an ex-employer take any legal action against an employee for joining a competitor?

Q: Can an ex-employer take any legal action against you for joining a competitor? The work geographies are different in both organizations.

Right of the employer to give the employee unpaid leave without his consent

Q: Hi, Due to the pandemic, the travel industry is affected terribly. Is the company required to pay for the months that the staff was on unpaid leave if the temporary annex is not signed?

The flat and contingency fees of a recovery case

Q: Our company is based in Greece. We have a dispute with a company based in Dubai. We had a co-operation with the Dubai company and thus we have instructed our clients to send the money to their account. The amount that we demand is around 110.000 Euros. You are kindly requested to give us information about: 1) The flat fees. 2) Contingency fee percentages for this case.

How to get the settlement after the issuance of the final judgment?

Q: Dear Sir/Ma`am, I have a labor case and the final judgment was declared in my favor. The settlement is not done yet. I opened an execution file through the typing center. As per the ministry, I had canceled my visa and work permit after getting the judgment. I need your advice as I don`t know the further procedures and how long I have to wait to get the settlement. I`m in a grace period now and it will expire next week. From the typing center, they asked me to call the Tableegh center to get the notification. I don`t know what procedures are going on. How long I have to wait to get the settlement? I know that overstaying will be fined. Do I need to exit or renew my visa? I`m jobless now. Why they are telling me to call Tableegh center? Why it is getting delayed if the judgment is already declared? The company is still opened. They can pay for my settlement. To whom I approach to help me to get the settlement asap? I hope you will reply to me with the right information to help me out with this issue. Thank you! Hopefully

Entering the country again after leaving with a ban

Q: Good Afternoon Madam, This is N. from Pakistan. On the 8th of November 2019, I left Dubai and I have a ban for 1 year. At the time of leaving at the airport, I paid all my fines. Can I come back to Dubai? How can I check it? Thank you, waiting for your reply.