Human resource is the backbone of every business enterprise irrespective of its asset, strength, operation and liability. It is categorically proved that Human Resource is the greatest asset which cannot be replaced by any other raw ingredients of business. The mobility of human resource is the need of time for assuring the greater innovation in the trade, science and technology. On the other way, the mobility often results in the fear of employer that the trade secrets will be leaked out to the competitor resulting in the collapse of business. The unfair competition by seducing the employer of another sponsor needs to be prevented at any cost, similarly the unfair attitude of employee to join with the competitor with the ulterior motive of sharing the trade secrets of previous employer need to be countered by the law. Both principles have been well considered by the UAE legislature in the perfect manner by inculcating the spirit of the requirements through the proper legislations. UAE Federal Law No. 4 of 2012 is passed for assuring the competition through the prevention of unfair trade practice in the market. The control over the employee is already placed under Art. 127 of UAE labor law. The authorities in the state are very strict in the correct implementation of Competition clause of employer- employee relationship. The endeavors of employer to prevent the mobility of employee through the shelter of Competition clause are often strike down by the courts of the UAE. However, the state is vigilant to assure the fair trade practice through the employer mobility for assuring the greater innovation.
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Company is a juristic person having the capacity to sue and to be sued, the corporate veil enables the companies to stand in its own capacity without the assistance of its partners or share holders. Companies and corporations are formed and governed under domestic legislations of every country in compliance of best practice principles of corporate formation and governance recognized by international community. The term holding company means a company organized with the intention of acquiring equity ownership in other companies. The holding company may not develop or market any products or services on its own. If a 100 percent interest in another company is acquired, that company is a referred to as a wholly owned subsidiary of the holding company. The holding company may also elect to acquire less than 100 percent ownership, but own majority control of the other entity so it can oversee the operations of the company.
In the virtual sense, holding company can be termed as the company of the companies. A holding company is one that exists solely to hold a percent of the total stock of another company, or companies, in an attempt to diversify or expand by acquisition. It is, therefore, able to wield influence on the subsidiary businesses that make up its investment portfolio. Holding companies are flexible and are able to sell shares of weak companies easily. However, they are difficult to manage and control since many individual companies operate within their scope. The newly amended commercial companies Law of United Arab Emirates under Article.226 permits the Limited Liability Companies (LL.C) and Joint Stock companies (JSC) to establish holding company in order to conduct the business solely through its relevant subsidiaries. Tax is the mandatory contribution of entities and individuals for the welfare of the state irrespective of the nationality of the company. It is levied on the condition of happening of transaction or earning or usage in the concerned jurisdiction depends upon the kinds of tax imposed. However, there are separate terms and conditions for every country in the world in addition to tax adjustment/avoidance scheme in certain instances. The rate of tax depends upon the domestic laws of the land. United Arab Emirates, the gateway to Middle East trade emerged as the top most growing economy of the world in the second half of 20th century. Dubai and Abudhabi played a pivotal role in bringing the emirates to this height. There are various factors for this unprecedented attraction of the foreign investors to the region, the stability and suitability of governance played a crucial role in attracting the investors to the region. The tax free policy dragged the foreign investors to the region rapidly. Unlike other tax free jurisdiction, UAE facilitated the multi-cultural environment, corruption free governance, personal liberty and security, rule of law, better educational and infrastructural support in the state.
Introduction of tax has been the course of discussion for policy makers of GCC from 2007 onwards. Gulf Cooperation council has opined for the common tax policy in the light best tax practice principles of the world. The recent reference of IMF for the introduction of tax in the region is not to be seen as a black point to the economic policies of the state. Tax compliance shall come as a culture as the rule of law has been brought in the region. The effort of governance to adopt the better tax policy in the light of OECD and IMF guidelines to be welcomed and supported in view of the sustainable development of the region. The assets of the individuals are the main contributing factor for the capital of the incorporations. The share of individuals and companies are not the earnings of one morning, it is the outcome of hard work and sleepless nights which resulted in the capital assets of everyone. None obtained the property out of smuggling or fraudulent means except some who are the enemies of nations and humanity. Howsoever, ones property has to be protected from the attack of people and from the attacks of nation states. It can be called as state attack. The individuals opted for various measures to save the assets through various modes without due diligence of it consequences. It resulted in the presumption of state that all those assets kept in the foreign country are obtained through illegal means and tagged it as BLACK MONEY. This writ up is not to defend those whose real black money lies in Swiss banks. This is to enlighten those innocents, whose valuable assets are put under the state attack.
State attack may take in different forms; it follows as a matter of policy in different parts of the world. Some jurisdictions have the stagnant laws to control and detect the black money, and some has the legalization policy of illegal earnings. In all jurisdictions there are no cost effective mechanism for saving the interest of those whose incomes are the result of labor pain. Therefore, most of the time innocent business mens are afraid and threatened by the state attack. Offshore, means an area or territory or country which offers the special consideration and benefits to the foreigners. It is a great idea to save the assets without the state attack. Forming an entity in offshore jurisdiction facilitates the operation of investments with other concomitant privileges. The residence visa is not required; the citizens of any nations can form the company. The offshore agent shall take the responsibility for the operation of the bank accounts and other incidental liabilities; the offshore agent also helps to facilitate the timely financial transactions. Offshore facilitates special consideration zone in respect of tax and favorable treatment with absolute confidentiality of bank account and other financial transactions. Here the crucial thing is exercising the right option while selecting the offshore jurisdiction through the trust worthy offshore agent. The author is competent to be the offshore agent of all the offshore jurisdictions in UAE and have the direct associates in all other offshore jurisdictions… Pre- caution is the law of nature. The old saying of precaution is better than treatment is more likely the rule of business in today’s corporate world. It is the age of cut-throat competition where each and every sphere of business transactions plays a pivotal role for winning the market. The minor mistakes or negligence of the business facilitates an opportunity for the competitor to deport you from the market.
Due diligence is the standard care to be taken by the person or business to avoid committing a tort or offence. In broad sense, it encompasses the standard care to be taken by the business entitles as a precaution for preserving one own place in the market. Ignorance of law or right of others does not excuse for transgressing the limitation of the law. Often the small medium enterprises (SME) come across with the issues of commercial prosecution. Commercial prosecutions often result from the violation of competition and IP Law. The protection under one kind of Intellectual property does not enable the owner with the fullest right. The enquiry into the protection of similar product through different models of IP protection institution shall help the business to avoid the risk of commercial prosecution. Commercial prosecution not always create the risk of arrest and detention, more than that the heavy fine starting from Millions shall send the person to psychological jail with the confiscation orders of goods caught. The referral of the matter to the public prosecution lies at the discretion of competent authority unless mandated by law. Here the only solution is to keep enough diligence before each and every steps of the business. Intellectual property is a kind of intangible property with tangible out come in the corporate world. It is product or outcome of labor pain. Labor pain is a pain which a mom suffers while she begets the child, which is beyond the scope of description in any figure. The relationship between the Mom and child is beyond any laws of Divorce. Virtually that natural relationship Exists till the end of human civilization. The same relation also exists between the creator and marks, design, idea or artistic works.
Hence, the protection of intellectual property is more valuable than his/her life for its creator. Therefore, the protection through the right platform by resorting the most feasible institution is crucial for the protection intellectual property Rights (IPR). Patent, Copy Right, Trademark, Design, Industrial Design, Trade dress, etc are the institutions IPR protection. The advanced institutions like Geographical Indications, Bio-Diversity and plant variations, trade Secrets, Utilitarian patent also exists. The protection guaranteed under different institution is entirely different in nature on different terms and conditions. Hence, choosing the institution for maximum period may result in the waiver of protection in toto. The crucial aspect is choosing the right institution where the protection is assured in the real spirit of intellect property depending upon its nature and kind. |
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