Business & Money | Tuesday 31 March, 2015 9:41 am |

While British companies are eager to explore the benefits of doing business in the UAE, many remain unsure of their fiduciary obligations under the UK Bribery Act, according to The Links Group, one of the UAE’s leading providers of commercial facilitation and advisory services.

“Although British businesses recognise the benefits of establishing a commercial presence in the UAE and view the conditions as favourable, there can be uncertainty about their responsibilities in relation to the UK Bribery Act,” said John Martin St. Valery, founding partner of The Links Group.

"The UK Bribery Act 2010 is one of the strictest pieces of legislation internationally on the subject of bribery and corruption. Notably, it introduces a strict liability offence for companies and partnerships of failing to take measures necessary to prevent bribery. Although the essential tenets of the Bribery Act are not new, its extra-territorial reach, both for UK companies operating abroad and for overseas companies with a presence in the UK, continues to catch some Britons unaware," said Jerry Parks, Partner, Taylor Wessing (Middle East) LLP, a preferred legal partner of The Links Group.

Falling foul of the legislation not only impacts British owners, directors or managers operating in a UAE-based company, it also applies to staff or the actions of the local partner’s operations and their management of that business. In the UAE, where foreign companies incorporated onshore must assign a 51 per cent shareholding to a local partner or entity, the governance of anti-corruption practices can be difficult to implement.

Martin St. Valery explains: “If a staff member working for the 51 per cent local partner were to embark on any corrupt practice, for example bribing or coercing for special favours, then the British manager responsible for the operation of the foreign company would be personally liable under the UK Bribery Act and subject to fines, imprisonment or both.”

The threat of non-compliance is compounded by the fact that gift-giving is very much part of the business culture in the UAE and wider Middle East. Understanding how to navigate these expectations while staying on the right side of the UK legislation is also something British companies need to bear in mind when entering and operating in the market.

“Saying you must work with a trusted local partner is stating the obvious, but it really is crucial. The Links Group actually pioneered the corporate nominee partnership model for onshore incorporation in the UAE, which means foreign companies deal with a structured board as local partner rather than an unknown individual. Our governance policies ensure that all matters pertaining to the client company by the corporate nominee partner complies fully with the Act,” said Martin St. Valery.


About The Links Group
Established in 2002, The Links Group is a premier company formation specialist offering beneficial ownership protection to foreign companies entering the UAE and Qatar. It advises corporations and individuals on how best to structure a legal commercial presence in the Middle East that protects their ownership interests and affords clear succession planning.

The Links Group is the first company of its kind to be endorsed by the Government of Dubai through a strategic alliance with the Foreign Investment Office (FDI) of the Dubai Economic Department and provides an unrivalled portfolio of corporate services including nominee local partnerships, corporate administration and government liaison support. The Links Group difference is that foreign companies work with a highly structured board as their local partner as opposed to an unknown individual. This structure provides foreign businesses with a corporate entity to act as their nominee, local partner, shareholder or sponsor, thereby minimising the risks associated with appointing an unknown individual nominee and satisfying corporate governance requirements.

The Links Group has an untarnished track record with 300 clients, who represent combined annual revenues of over USD 5bn to their respective economies.

The Links Group is also recognised as a Dubai SME 100 company, a ranking of the top performing SMEs in the emirate, and an Arabian 500 company.

www.linksgroup.com
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