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Your complete how-to guide - esignature legitimacy for business transaction management in uae

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eSignature legitimacy for Business Transaction Management in UAE

eSignature legitimacy for Business Transaction Management in UAE has become essential in modern business operations. It ensures security, efficiency, and compliance with legal requirements. One effective tool for this purpose is airSlate SignNow, which offers a user-friendly and cost-effective solution.

airSlate SignNow benefits

  • Launch the airSlate SignNow web page in your browser.
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  • Upload a document you want to sign or send for signing.
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  • Sign your document and add signature fields for the recipients.
  • Click Continue to set up and send an eSignature invite.

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How to eSign a document: eSignature legitimacy for Business Transaction Management in UAE

section here will deal with the transaction with the connected persons it could be individuals it could be entities who are into an association with another you know the group company so here we'll see is that if we are conducting any transaction between a connected person or a related party in that case the transaction price should be at arms length which mean that it should be a fair price which we we we should have been entering with somebody who is unconnected with us who who does not have any connection in any sort with us so for example just take an example here that if company a and you know and Company B are under the the common ownership and if company a is selling anything to Company B in that case the selling price should be similar to what the company a would be charging to its you know regular clients so this is the most know important uh aspect if you are dealing with the group company structure so for this arm length principle we normally use the concept of transfer pricing or transfer pricing in itself is a separate subject and hopefully uh we'll be having separate sessions on that also but here in tax law we have been given these five pricing methods which should be applicable on uh if we are making any transaction between the related parties itself now how the you know the concept of a related party or a connected person is established so two or more National persons who are basically you know related uh with each other up to the fourth degree of of Ki which means father son son son and so on so so forth and if know and if uh any person legal entity is holding 50% or higher in another entity of course these two would also be uh you know considered as connected persons with each other and if a naal person along with uh any other you know uh entity if it is if that specific person is directly or indirectly controlling another company this can also become a related party so the the you know the consequences are that if I am entering into any transaction between a related party it should be on arms length principle okay if we are making you know any payment to a connected person in this case also of course arms length principle will be applicable now who can be a connected person in this regard so first of all it would be the owner of the of the business a director on an or any officer of the entity you know a related party of any of the persons who are referred above so uh which meets the these three criterias any of these and the partners of unincorporated partnership would automatically become the connected person here so these are a few Concepts which are you know applicable on transactions with related parties the only condition which we need to focus here is that transactions must be on arms length principle

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