UAE- Firms must reveal sales revenues

(MENAFN- Khaleej Times) All the commercial companies and establishments in Abu Dhabi have to reveal their key data on sales and revenues apart from paid up capital on their businesses at the time of licence renewal.

The submission of key business data would be applicable from April 1. Abu Dhabi Business Centre of the Department of Economic Development - Abu Dhabi has introduced some amendments to the trade licence application form and the trade name booking form with the aim of developing an integrated high quality database that would be a key source to modernise and update the work of commercial establishment in the emirate.

"These amendments are one of the key requirements that would help developing the detailed database of economic activities across Abu Dhabi which would enable the DED and all other stakeholders to easily and readily obtain the necessary data and information" said Mohammed Munif Al Mansouri ADBC acting executive director.

Dr Qaiser Anis managing director of Alliot Hadi Shahid Chartered Accountants welcomed the move which he said should have been introduced much earlier.

"This amendment will help generate quality database and information on businesses in terms of areas and sector-wise" he said.

The chartered accountant said at present that there is no data on business potential in a certain business or sector or industry. "Whatever information we have is general in nature not specific or targeted in terms of areas and segments" he said.

Investors can ask for business data for feasibility studies of any region in the US or other business friendly countries Anis said. "This is a good step in modernising the framework of commercial establishment in Abu Dhabi. This change is in the right direction as information obtained will serve as a database for the development of business and market and evaluating a project."

Al Mansouri noted: "The proposed additions especially the listing of the paid capital revenues and sales from less than Dh1 million to Dh250 million or more which was added to the trade license application is an important requirements for the Statistics Centre - Abu Dhabi (SCAD) as it will facilitate the process of data and statistics collection on the size and classification of establishments."

The amendments introduced to trade licence application form and the trade name booking form already available at the DED website will be enacted at the beginning of next April. He called upon the businessmen to submit all necessary data to complete their transactions.

"It is important to list very accurately the data about the location where the commercial activity is going to be carried out and the contact information to make it easy for the DED and other trade licensing stakeholders to know the positioning of commercial activities across the three regions of Abu Dhabi- namely Abu Dhabi Al Ain and the Western region. This would be very helpful for a proper process of planning for commercial activity clusters in those regions that witness considerable commercial activity especially the service sector" the acting executive director said.

On the amendment introduced to the trade name booking form Al Mansouri said that this form allows clients to list three alternative names for licensing to avoid the refusal of the proposed single name because it doesn't meet the requirements or because it is already booked or registered by another client. Al Mansouri directed the companies to comply with the new regulations with an undertaking not to practice any unlicensed commercial activity unless appropriate approvals are secured from the relevant bodies. "New amendments are mainly introduce to stop businesses to practice unlicensed activities" said Jitendra Gianchandani chairman of Dubai-based Jitendra Consulting Group.

"The data such as capital sales and revenues will help to compare the business who practice fair as per trade license activities and businesses who are in the same cluster of economic activities but are engaged in unlicensed activities" Gianchandani said.

"Many businesses and professionals carry on activities which are ancillary to their main activity but they don't have trade license due to business needs. However such practices are illegal in this part of the world."

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