Tobacco Documents Online

/ ' ` G--t_7 23 l c 0 [7,? . .- ' ' c• r. } • r r. ~Dubai 's new fre~ tra~de IOW,; w.CHAMGE is afoot in'Jebel Ali Free Zone }~ and;operi and maintain bank accounts Law no. 9 of11992, promulgated in Dubat ;`and w[Il:.be required to keep propenl makes possible the creation of what are to accounts" . FZEs i;willi be 'required -to{ be known as. free .zone establishmertts appoint ; auditors ' from ' among 'those~ ' (FZEs). The early signs are that these'new ,. .', approved by; JMFZA and:.copies' of~ the"~; entities will pnov[dean unport9n[ boo3t'to annual audtted accounts,ofl all FZES ;will' "investntent_. be;glNtR to JAFZA~ From a legal `perspecuve,-;FZEs' share ',The FZE.admini3t'rative arrangementsTat ' •1' many of -the -keyy charactertstics •:ofa JHFZA , will be the; nesponsibtlity of:the fimittd liabtlify ;company .•For instance : new FZE Depanrnent tn the Free Zone.~ ; the FZE will have its oa n~distinct' legal ; i.The ~Z'E Department will I recetve;~an identity'on; personality. Iri;idduion;`the process applicatioris for the formation'•of~ liability of the FZE shareholder will be ~w i:FZEs and!wiU issue,the relevan[cerRificate': lirrtited to the'amount of.sliare' capital'~ ~;'~tof forniation omce the,FZE`is formed. The p `' {' ' i.` `t~ ~ 4FZE D.e,partmcnt ;wtll ralstD' mamta'irn~a, aid into the FZE '; r , : Unlike the traditional limited liabifity '~'regts[et;in whichit will•recUrd delails"'ofi company; however,• the ; FZE can -_ha ve °~jeachyFZE,lriclvding tts pame, theildenutyy ,only one shaneholder Thts ia not ambwi ` of thestngle shareholder,"itsshare,icapifal i legal coriceptJ` ^istngle'Rshareholder~ 'Xandl~details~of.any seeunty mterests~ eompames i, have been , pei~mtsstble ~ ~~gnnied q'ver the shares o"r asscts otuthe i 'several European countries foisoorie'time7,3Y-,I ZE ~Tfie FZE°Regtster will be'openllo', ° The likeiihood, is that the single `~ pubhe Vinspectian ; whtch:shoulhelp shareholder FZE,will~ be"of-mterest'to'~~, commercial t,cdeattngs, wtth i,tFZEs ; many foreigri corpo'ratiors for whom'.she i`~panuc`ularly for cvstomers atid bankers: ~7Yr I idea o6 having a wholly owned subsidiaryz, ~. ,t'kavmg ~only 1 one shareholder"31so' ' in the,Free Zone ~`iather'than simply+aj~~`Tstmphfiesamatter5.'such a"s.shareholders'' : branch, ':'will •openti`up n~ew,rbusiriess~y~~meetutg~ ~jMatttrs= whtch : reqttire Y z ; opportunities 'FZEs mayr;also `come;:to,' ' w'a'pproval of the;single•shareholdhr,"su`eh, :.`playan imponantrole in intennauonalfaxr~ #~asf an'''increase"br 'dernease iri'r,sha'ie~ "planning' for foieign corpor5tions ha'ving ~~capitalill be effected by:way of owncry or planning operations in ihe Free Zone ti• declaration ll be a simple wnitttn- The applicauon procedUre for fo Iming`. if ; declaration, ^'f'signed~! by .. the singleq an FZE.+ is to ;be kept s=stmple;and~~ , sharettolder +Ipetiltls , of- •each oviner •unbureaucraue jThe solt; `regulatony~~~ ',declaratimn~+wtlli be t•open to. publ'ic( authoriry, will 1pe:Jebe1 Ali ; Free,`Zone ^TtEin'spection in the.FZE Register r' Authority(IJAFZA). FZEs vrill not thei~efooe }-~in .addiuon , JAFZA 'will have`', pbnver~; be required, to `obtain muriictpal ~trede .,e f under;the implementing tregulatior~sitoi Iicences: The,appropriate general, special ~ t fyappoint'•: inspectors to °anvestigste.; the<'; or national mdustrial licence issued'by ~^affairs of any FZE::As a last'resort )1!4FZAs `'JAFZA (depending` on Lhe'inature oVthe(C has the power td'deregisterany FZEs'oi II FZE's busmess - and us': ownership £ordered by the Dubai courts, the effect of.: , structuring) will be suffiaent FZE!`w~li, ~; whtch will be toliquidate the FZE ]f,such`f also share the,benefits already enjoyed by •~ deregistration is [he, resul[+of any b)ieack. companies operating in 'the' Free;Zone ;„of the.JAFZA'regulations, the-assets:-and'j according to 'earlier legislation such as, property of the; FZE can be forFeited' toli and tax exemption' %and guarantee , aga'rnst, ;,:fJAFZA •- a,•strong incentive on FZEs nationalisadon _ -,7A ;theiroovnersto~ensureproper~compliance: Law no:'9 envisages that: JAFZA"atll .+:with the tehevant regulations. Irn addition issue - detailed ` rules, regulating _ FZEs ;"'fines may be imposed by JAFZA foi any~ internal' procedures. For example;,.lI : breach of its FZE regulations will not have anymemorandurit or,articlea , 74te• regulatory..frame• work for; FZEs_~ of association - the JAFZA regulations r: appears comprehensive and JAFZA in any'- will deal with the topics ty,picallycovered ~'everic '' has =: power to adjust •r the' in those documents in a standairdisedwayt,l':.d implementing'regulations if this becoines'', and these will' apply to all' FZEs,equally : necessary. , r..., • Subjects covered by the ' irnplementing r ;~ in summary; law no: 9 of 1992, and thrc s regulations will!inciude a minimum:share r(' pertinent, Implementing regulations issued- capital,requirement (of Dhil,million), by JMFZA,%.represent an exciting and" appointment and removal of the directors. `-.{ positiNe step.forward for Dubai... andl secretary,• and procedures.: for directors' meetings and so on PAUL SIMPSON I be entitled I to enter into ltgal contracts ' Clifford Chance. Dubai ~ ' - , N