Boosting eSignature Legitimacy for Non-Compete Agreement in UAE

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Your complete how-to guide - esignature legitimacy for non compete agreement in uae

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eSignature Legitimacy for Non-Compete Agreement in UAE

In the UAE, ensuring the legitimacy of eSignatures for Non-Compete Agreements is crucial. Utilizing airSlate SignNow can streamline this process and provide a secure solution. Below is a step-by-step guide on how to use airSlate SignNow for eSigning documents.

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How to eSign a document: eSignature legitimacy for Non-Compete Agreement in UAE

okay so in continuation of our uh discussion on the on the permanent establishment let's now see that what constitute a you know a permanent establishment so typically speaking the concept of the the PE is important because if an you know non-resident person has a permanent establishment in the state in that case all income which is in which is accured from the activities conducted from that PE would be taxed in UA so in any of the following conditions the PE can be triggered first where it has a fixed or permanent place in the state through which it is it is conducting a business you know itself which means it could be a branch it could be a site office a factory any such thing so of course it is you know pretty obvious that if you have a a branch here you as you know let's say you know foreign entity is having uh a permanent establishment here in UAE second condition is that where a person is habitually exercising an authority to conduct a business or a business activity in the state on behalf of a non-resident person so in case if I'm somebody you know I been contracted exclusively by a foreign entity to close business deals here in UAE and act exclusively for that company and I'm habitually exercising all this activity so in that case also I am triggering the permanent you know establishment of the foreign entity here in you know in UA and it is extremely important area so that if you have a contract with somebody who is a non-resident but you are habitually ex you know exercising exclusive authority to close business on behalf of that entity here in UA you will be triggering the PE of that foreign entity here inside the state third is that where we are part of uh you know okay in any form of an Nexus in the state which will be specified in in a decision issued by the cabinet now the examples and exclusions from the PE includes the examples of course include as I explained earlier a branch office an office a factory a workshop any property which I holding here and I'm generating any income out of it it will also be triggering a PE any installation structure for exploration or any such thing would also be triggering a PE here a mine oil or gas well of course would also be triggering the PE or a building site or a you know or a construction project will also trigger the P the exclusions are very interesting here the exclusions are that that if I'm just disclosing uh you know displaying or storing some it items for okay for onward shipping okay so so in that case uh merely storing or displaying the items here in UA will not trigger the PE of that foreign entity okay and if I'm just uh you know keeping the stock of goods or anything which a foreign entity hold for the sole purpose of processing by another person for example I get two parts from some other country and I as a company will do assembling you know of all those parts here in that case I will not be triggering the okay EP of that fore an you know entity and and if I'm conducting any you know any other activity if I'm conducting any other activity in preparation with okay or which is auxiliary in nature for that so for example I'm maybe just conducting a feasibility study for somebody who is in a foreign country so so in that case I'm just doing you know an auxiliary activity for his future business here so you know I mean a foreign entity who who want to you know expand here in UA they may engage a consultant and the consultant would be conducting you know a feasibility activity here so in that case uh okay in such cases such activities would be excluded from the e here now one important area which I want you to focus on is that is point number two in this case I'll uh draw your you know attention to a specific case for example I am an investment fund manager here in this country okay investment fund manager and I am managing the Investments of all the individuals who are foreign Nationals okay so I am I am an investment manager I am taking a decision on behalf of them and I am stationed in UA so if we just go by this Clause of PE in this case I am habitually exercising the authority to conduct a business for somebody who is outside the country so in in such scenario with a plain reading uh you know all those people who are in foreign country whose investment is handled by the investment fund manager here in UA he may trigger the PE for all those you know entities in UA so in the CT law here in Article 15 we have a specific exemption for the investment managers that the PE test will not be triggered if the person is handling the investment on behalf of somebody who is a non resident in UA where all of the following conditions are being being fulfilled so first thing is that the investment manager is is engaged only in business of providing the The Brokerage or fund Management Services the activities of such investment manager are subject to the regulatory you know I mean oversight which simply mean that he should be registered here and he should be under the regulatory oversight of the relevant authorities here okay and it is the core business of that manager who is doing it as a fund enagement here it's not that he's just acting as an agent for somebody exclusively to close the business here and uh he should be acting okay in the transaction in his independent capacity which means he is the sole person who is making all the investment decisions here and of course the transactions are on the arms length basis it goes without saying and the investment manager is not a representative of that foreign individual in any other capacity to generate the income which is subject to the CT for the same period itself so in summary he is purely given uh he is just giving the fund Management Services and in that case uh he will not be triggering the the PE of all his clients who are uh who are in the know who are outside the country I hope this important area is clear if you still have you know a doubt I would be recommending to go back again view this session again and for a you know a detail you can also get uh to this specific you know and say article also hope to see you in the next session

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