59A7D41EB44EABC4F2C2B68D88211BF4 UAE INSIDER - BUSINESS | LAW | CAREERS | INVESTMENT

Tuesday, October 1, 2019

Dubai Launched Virtual Commercial License for non-resident business people and freelancers

Sheikh Maktoum Bin Mohammed Bin Rashid Al Maktoum, Deputy Ruler of Dubai, announced the launch of the region's first 'Virtual Company Licence’.

The programme allows only verified non-resident individuals to register a company, and the owners of such companies have to be the nationals or tax residents of countries that have implemented the Convention on Mutual Administrative Assistance in Tax Matters and share tax information about their citizens and residents.
Eligible countries

The official website has a heatmap showing the eligible and non-eligible countries across the globe. India, Pakistan, Saudi Arabia, China, Russia, North Americas, South Africa, Nigeria, Cameroon, Uganda, Brazil, Argentina, Chile are some of the countries on the eligible list. Yemen, Oman, Sri Lanka, Thailand, Venezuela, Algeria, Egypt are on the non-eligible list according to the map online.

What does this mean?

The Virtual Company Licence will allow investors worldwide to do business in Dubai digitally without requiring residence and in accordance with the highest international legal standards. Virtual Company Licence owners can manage all their business-related activities, including document signing and submission digitally, and the signatures are legally binding in the UAE.

This initiative is aligned with the third Article of the 50-Year Charter of His Highness Sheikh Mohammed Bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, which aims to build a ‘Virtual Commercial City’ in Dubai.

The Virtual Company Licence will enable freelancers and business people worldwide to have access to a regulated e-commerce platform and easily work with Dubai-based companies while also exploring new markets and investment opportunities digitally.

Saturday, September 28, 2019

Saudi Arabia launches tourist Visa to 49 countries

Saudi Arabia opened its doors to the world on Friday after it announced that tourist visas will be available to citizens from 49 countries.

For the first time, tourists can now apply for a visa through Saudi embassies and consulates across the world

Marking a milestone in Saudi Arabia’s history, Ahmed Al Khateeb, Chairman of the Saudi Commission for Tourism and Heritage (SCTH), announced the launch of the tourist visa for the Kingdom of Saudi Arabia at an event in Ad-Diriyah, a Unesco World Heritage Site in Riyadh.

Citizens from 49 countries will also be able to apply for an e-visa or receive a visa on arrival into Saudi Arabia. A dedicated online portal at visitsaudi.com was also launched and electronic kiosks are set to be available at airports to facilitate requests.

The following 49 countries will be eligible to apply for e-visas and visas on arrival:

  1. USA
  2. Canada
  3. Kazakhstan
  4. Singapore
  5. Brunei
  6. New Zealand
  7. South Korea
  8. Japan
  9. Spain
  10. Belgium
  11. Malaysia
  12. Austria
  13. Cyprus
  14. UK
  15. Croatia
  16. Estonia
  17. Andorra
  18. Denmark
  19. Germany
  20. Bulgaria
  21. France
  22. Hungary
  23. Czech Republic
  24. Holland
  25. Italy
  26. Finland
  27. Ireland
  28. Lithuania
  29. Greece
  30. Liechtenstein
  31. Monaco
  32. Iceland
  33. Malta
  34. Poland
  35. Latvia
  36. Norway
  37. Russia
  38. Luxembourg
  39. Romania
  40. Slovenia
  41. Montenegro
  42. Slovakia
  43. Switzerland
  44. Portugal
  45. Sweden
  46. Australia
  47. San Marino
  48. Ukraine
  49. China, including Hong Kong, Macau and Taiwan
The tourist visa allows for a stay of up to 3 months per entry, with visitors able to spend up to 90 days a year in Saudi Arabia. The visa is valid for one year with multiple entries.

The cost of applying for an e-visa or a visa on arrival is 440 riyals (around $117) plus VAT.

Saudi Arabia intends to extend the e-visa scheme to other countries in due course.

Thursday, August 15, 2019

Bounced Cheques in the UAE—Beyond Fines, Welcome to Direct Execution

A common misconception remains that a bounced cheque case in the UAE ends with a simple fine or a short prison term. While decriminalization has fundamentally changed the landscape, the legal reality in 2026 is far more immediate—and serious—for the issuer.

A bounced cheque is no longer just a piece of paper or a police matter; it has evolved into a powerful legal weapon for near-instantaneous debt recovery.


1. Cheques as an "Executive Deed"

Under the UAE Commercial Transactions Law (Federal Decree-Law No. 50 of 2022), a cheque returned due to insufficient funds is legally classified as an Executive Deed (Writ of Execution).

  • The Impact: The beneficiary no longer needs to endure months or years filing a traditional civil lawsuit to prove the debt exists.

  • The Process: They can take the physical bounced cheque and the bank’s official "Return Memo" straight to the Execution Court.

  • The Result: The execution judge can bypass the trial stage entirely, ordering the immediate freezing of bank accounts, seizure of corporate or personal assets, and travel bans within days, not months.

2. Decriminalization vs. Malicious Intent

While ordinary "insufficient funds" cases have been moved to the civil execution track to favor financial recovery over imprisonment, criminal liability under the UAE Penal Code has not vanished. It is strictly preserved for acts of bad faith:

  • Account Manipulation: Closing the account or completely withdrawing the balance right before the cheque is presented.

  • Unlawful Stoppage: Ordering the bank not to honor the cheque without a valid, legally recognized justification.

  • Signature Mismatch / Fraud: Deliberately signing in a manner that ensures the bank will reject it.

  • High-Value Thresholds: Cheques exceeding AED 200,000 are heavily scrutinized and can still be referred directly to the Criminal Court depending on the circumstances.

3. The Fine Structure (Dubai & UAE)

For cheques under AED 200,000 where the criminal aspect applies, the Public Prosecution can impose fast-track administrative fines to resolve the penal side.

⚠️ Crucial Note: Paying these fines only satisfies the criminal penalty; it does not absolve the underlying debt. The bearer can still take you directly to the Execution Court for the full amount.

Cheque Value

Administrative Fine Amount

Up to AED 50,000

AED 2,000

AED 50,000 – AED 100,000

AED 5,000

AED 100,000 – AED 200,000

AED 10,000

4. Mandatory Partial Payment

A major, often underutilized feature of the modern law requires banks to offer partial payment.

If a corporate account holds only AED 40,000 but the issued cheque is for AED 100,000, the bank is legally obligated to release that AED 40,000 to the bearer upon request. The bank then issues a partial payment certificate, and the bearer uses that certificate to pursue the remaining balance of AED 60,000 via the fast-track Execution Court.

5. The Civil Penalties & Corporate Fallout

Once an enforcement file is opened in the Execution Court, the issuer faces a rapid cascade of legal mechanisms:

  • Full Principal Payment: The immediate enforcement of the face value of the cheque.

  • Legal Interest: Execution courts frequently award statutory interest (typically ranging from 9% to 12% per annum) calculated directly from the date the cheque bounced.

  • The 15-Day Trigger: If payment or a court-approved settlement isn't reached within 15 days of the official court notification, automatic arrest warrants and travel bans are initiated.

  • AECB Blacklisting: The Al Etihad Credit Bureau logs bounced cheques on credit reports for up to 5 years, instantly paralyzing the company's ability to secure trade finance, corporate loans, or clean credit lines.

💡 Strategic Advice for Business Owners

Frame your company's cheque management as a strict Compliance Audit. In the current legal climate, a single overlooked post-dated cheque can paralyze your entire enterprise's operations via an overnight asset freeze.

Ensure your project finance structures and "Bankable Deal Folders" include verifiable proof of liquidity long before those cheque dates mature. In 2026, liquidity management isn't just a financial metric—it's your primary legal shield.

#UAELaw2026 #BouncedChequeUAE #DubaiCourts #CorporateGovernance #DebtRecoveryUAE #LegalUpdatesUAE #RiskManagement

Saturday, June 30, 2018

Dubai launches new freelance work permit


Residents can now obtain a new freelance package for an annual fee of Dh7,500 in media and education sectors with Dubai Media City (DMC) and Dubai Knowledge Park (DKP), officials announced. The package, called Gofreelance, was launched by TECOM Group, a member of Dubai Holding, in partnership with Dubai Creative Clusters Authority.

The annual fee includes the Freelancer Permit and access to the Business Centre. If the candidates require a visa, such as if they are non-residents who want to freelance here, relevant “assistance” will be provided. However, the visa will cost separately as per the normally associated fees.

Gofreelance was announced during a media briefing at Dubai Press Club on Tuesday. Speaking at the event, officials from Dubai Media City outlined the benefits of the new package, which offers a freelance permit at a significantly lower fee (around half) than previous freelance packages in Dubai.

Freelancing advantage

Residents who hold jobs can obtain the Freelance Permit provided they have a No Objection Certificate (NOC) from their employer or sponsor, supplementing their salary. Companies, meanwhile, will be able to commission freelancers for needs such as a one-off project, contract-based work, outsourcing or assistance with the extra workload. The permit is also open to candidates who are on their parent’s or husband’s visa.

At the moment, the permit is restricted to certain “activities” in each of the two sectors of Education and Media. For example, in Education, there are five activities, including Education Advisor, Researcher, and eLearning Advisor.

Activities

The Media category, on the other hand, has almost 50 activities, including Actor, Animator, Cameraman, Journalist, and others.

Majed Al Suwaidi, managing director of Dubai Media City, Dubai Studio City and Dubai Production City, told on the sidelines of the event that the new package comes in line with expectations of a changing professional market.

“We see there are a lot of changes in the industry. The media industry today is not like the media industry 10 years ago. How individuals interact with the media and how the media interacts with individuals has drastically changed,” Al Suwaidi said.

Work freedom

Al Suwaidi also said there are a lot of people “‘freelancing’ without the right [legal] structure. What we’re saying is that the right structure is better for you – and it doesn’t cost you that much”.

‘Strong interest’

Mohammad Abdullah, managing director of Dubai International Academic City (DIAC) and DKP, told Gulf News there has been “strong interest” from the community for the new permit package and officials have started receiving applications.

“Freelance permits have been there before, but today’s event is to announce the new package. We’re making the process easier, faster and have reduced the cost, by around 70 per cent compared to many cases earlier,” Abdullah said.

Simplified process

The process for obtaining the permit has also been simplified, with almost all of the needed steps done online at www.gofreelance.ae, the website of the permit.

Candidates have to upload the application forms and required documents, such as their CV, passport and visa copy, a bank reference letter, and sponsor’s NOC (if applicable).

Once the application is approved, candidates will receive an email notification and then visit one of the business centres in DMC or DKP to personally sign the documents and pay the fee. During the visit, the candidates may be asked relevant questions regarding their application for clarification or verification purposes. Shortly afterwards, they will receive their freelance permit via email.