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Lawyer, Doctor of Laws, recognized media expert on legal issues, legal adviser to famous politicians and businessmen.
LEGAL AUDIT OR DUE DILIGENCE OF BUSINESS IN THE UAE
An important part of the enterprise’s activity is its reporting and implementation of activities in accordance with legislation. Therefore, in this case, the best choice is an audit. After all, the audit is carried out systematically, and the main purpose of its implementation is the readiness of the company to be checked by its controlling authorities. The audit is carried out in various areas of the company’s activity.
Legal analysis and due diligence of a company in the UAE includes the following provisions:
- Research of share capital, its structure and corporate documents,
- Analysis of personnel and relevant documentation in the personnel field,
- Verification of compliance with the legislation and policies of the country, including GDPR,
- Analysis of business contracts and counterparties,
- Verification of the legal status of property, funds and other assets of the enterprise, as well as the presence of intellectual property and its protection,
- Checking the presence or absence or status of courts or criminal or administrative disputes.
- Compliance with environmental standards.
DUE DILIGENCE – LEGAL BUSINESS AUDIT
Based on the results of the business audit, you will receive a Conclusion that will give you the following:
- Your desire to buy a business may change dramatically
- You can get arguments for reducing the cost of the business you are buying.
- You can apply legal mechanisms in time to prevent various kinds of problems with the tax authorities, with counterparties, with employees, investors, etc. in the future.
Order business (firm) due diligence – frequent cases:
- Purchase and sale of corporate rights to the company
- Analysis of public offers of these securities on the stock exchange (IPO)
- Mergers and acquisitions of businesses (M&A)
- Investment attractiveness of the company
- Joint venture of two or more founders
- Financing or crediting of business or its assets
- Provision of repayable financial assistance, including interest
What is the cost or how much does it cost to verify a company (business) in the UAE?
To get an answer to this question, it is necessary to understand that the cost of due diligence in the UAE, like anywhere, depends on the volume of work that lawyers and auditors need to carry out, on the number of issues that are investigated, on the volume of materials provided for verification, on the complexity in access to the information that needs to be checked.
Depending on this, there are at least two types of business verification
- Full due diligence report (full scope) – the most detailed and complete analysis of all provided documents, open sources of information, as well as sources of information with limited access.
- Selective due diligence report (red flag report) — only those questions raised for research are checked.
Yuk Prykhodko and partners provides comprehensive legal business due diligence services. Before buying a company, you must understand its condition, including legal, tax, accounting, financial and other risks. Due diligence is carried out in the interests of both the business owner (Vendor Due Diligence) and the potential investor (Buyer Due Diligence).
Calculate the cost of services
1 question
Are you currently in Ukraine?
2 question
Are you currently in the UAE?
3 question
Are you selling a business in the UAE?
4 question
Are you buying a business in the UAE?
5 question
The value of the business that needs to be audited is more than 500,000 euros?
6 question
Do you need a consultation urgently?
Which is better: Mainland or Free Zone?
Mainland is generally suitable for businesses planning to operate directly in the UAE domestic market, maintain a physical location, premises or a local team. Free Zone is often chosen for international services, IT, e-commerce, consulting, trade and other models with specialised infrastructure. The choice depends on the activity, clients, office, visas, account and tax model.
Can a foreigner own 100% of a company in the UAE?
Yes, Free Zones allow 100% foreign ownership, and most Mainland activities are also available for full foreign ownership. Special restrictions, approvals or ownership structure requirements may apply to certain strategic impact activities.
Does a Free Zone company pay 0% Corporate Tax?
Not automatically. The 0% rate applies to Qualifying Income of a company that meets the requirements of a Qualifying Free Zone Person. Other taxable income may be subject to the 9% rate. The company must also register for Corporate Tax, maintain records and submit returns.
When does a company need VAT registration?
For resident businesses, mandatory registration generally arises when taxable supplies and imports exceed AED 375,000 during the previous 12 months or are expected to exceed this amount within the next 30 days. Voluntary registration is possible from AED 187,500. Different rules may apply to non-residents and certain cross-border transactions.
Is it mandatory to obtain a residence visa?
Not for every structure. A company may be registered without immediately obtaining an owner’s visa if the relevant jurisdiction allows it. At the same time, a residence visa and Emirates ID may be important for living in the UAE, banking KYC, leasing, connecting certain services and demonstrating local presence.
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