Naiming Auspadel: UAE Market Entry Report - Finance, Culture & Ethics

This report provides a comprehensive analysis of Auspadel's potential market entry into the United Arab Emirates (UAE). It begins with an introduction highlighting the importance of analyzing financial, cultural, and regulatory aspects for successful business expansion. The report delves into the financial regulations applicable to Auspadel in Dubai, including currency, foreign exchange controls, and business entity structures. It examines corporate taxation, including tax residency, income tax, and the absence of specific taxes like capital gains. The report also explores the cultural considerations for the Australian company, emphasizing the need for a local partner, cultural awareness, and understanding of UAE business practices. It discusses the importance of customer relationships, employee rights, and ethical decision-making, as well as the customs and etiquette relevant to business interactions in the UAE. The report concludes by summarizing key factors for Auspadel's successful entry into the UAE market, including finance, tax policies, corporate responsibility, and business culture.

Scoping document

Table of Contents
INTRODUCTION...........................................................................................................................3
What are the finances required , Tax and constraints etc............................................................3
People and culture........................................................................................................................4
How are the people and their culture and how would they take this australian company...........4
Ethics and decisions making........................................................................................................4
What are ethics and decisions making strategies and how will think etc...................................4
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................6

INTRODUCTION
Business expansion are very common in market nowadays. For a company, it is very
important to analyse business culture and financial aspects as well as regulations to conduct
operations in that country effectively. In the following report, there is discussion about Naming
Auspadel Which is first Australian based company that is involved in designing, manufacturing
and installing paddle court. This company mainly focuses upon innovation and safety and
providing high quality paddle courts within market. This companies having effective resurgent
engineering team that manage is too design knew and innovative paddle Courts. This report will
include financial and taxation regulations while entering of this company into UAE market and
business culture which is to be followed while conducting the business operations.
What are the finances required , Tax and constraints etc
For this sports company, there are several regulations which it has to follow while operating
business in UAE. Main factor on which this company will be dealing in expansion of market in
Dubai is currency which is UAE Dirham. There is no foreign exchange control. Or financial
statement is required for preparing the annual operations of the organization (Ataei, 2019). The
principle business entities will include limited liability company, private or public joint stock
company and a representative office. As a foreign company, there is need for this sports
company to own up to 49% of UAE mainland registered company. This share can be increased
according to the shareholding of 100% in respect of companies which are setting up within a free
trading zone.
Corporate taxation
Residence: there are Emerit level income tax which Decreases on the containing of specific
provisions in context of corporate tax residency. There is a clear legal concept of corporate tax
which is involved in UAE.
There is no clear legal concept of corporate tax residency in UAE and according to Ministry
of Finance, there is tax residency which is issued for the companies which are incorporated for
conducting business in UAE. There is decrease within income tax which is issued by five out of
seven Emirates which are Abu Dhabi, Dubai, adjeman, Sharjah, um al Quwaei, Ras al khaimah
and fujiwara. This country enforces in respect of oil and gas exploration and production

companies and this is according to a certain petrochemical company under which specific
government concession agreements are written.
Taxable income: there are no taxable income practices followed in UAE except for oil and gas
exploration. The applicable income tax and banking tax decrease consist of basic deductibility
rules which are taken into consideration when there is determination of taxable income
(Mehboob, 2020).
There are some taxation of dividends which include capital gains, losses, rate and incentives.
Capital gains are not taxable unless when they are derived by the company which is taxable
under any of the banking tax or income tax decrees. Losses are not applicable from other than
companies which are taxable under income tax and the banking tax-decrees. Losses are generally
not applicable other than the companies which are taxable. For this sports company, there will be
no tax in UAE and it will be easy to operate business operations within market.
People and culture
How are the people and their culture and how would they take this australian company
The Australian sports company must look for a local partner so that it will be easy to
communicate with the Middle East executives. Main focus must be upon cultural awareness and
educates of UAE business environment. Also, there is huge development in banking and finance
sector off UAE as there are both local and international banks which provide full range of
services. This provides opportunity for this sports company to have potential to grab market
share in UAE and expand the profits and sales.
Local culture and values play a central role while shaping the process of conducting
business in UAE. It is one of the Highest international business hub across the world. The
Australian sports company has to take decisions depending upon culture followed in UAE and
develop trust in that market. Main focus of the sports company should be upon customer
relationship, employee right, environmental concerns and responsibility which are well defined
within Islamic rules or UAE business culture.
Ethics and decisions making
What are ethics and decisions making strategies and how will think etc
The businesses which include English language are acceptable in UAE. It is a great opportunity
for this sports company to conduct the market expansion activities in UAE. There are some

unusual custom which are followed in Arab countries such As for having a number of people in
an office and discussing about different matters are the same place. For this Australian company,
the employees have to understand that while communicating with an Arab guy they must not
rush into talk about his personal life and especially about his wife or female relatives. It is
consider that within UAE people generally offer refreshments like coffee, tea, drinks at the
business meeting and these have to be Accepted (Franklin, 2020). Australian people should not
refrain from expressing their extreme views because it can become a sign of inflexibility. In
business circles, there are some standard dress for men Virgin cloud suit and tie. There is
exchange of gifts is common practice in UAE and these items are usually limited to small
corporate items like brochures, pens, folders , etc. Business culture of UAE must be followed by
the sport company in order to maintain trust and honesty within UAE. This is all rapidly
evolving market and hence there is requirement of establishing a local presence.
CONCLUSION
According to the above discussion, it is concluded that the Australian sports company
should consider various factors before entering into UAE market expansion such as finance and
tax policies, Corporate responsibility principles, business culture of UAE, etc. Having prior
knowledge of the business environment is helpful for the foreign company to operate business
operations properly within a new country or market.

REFERENCES
Books and Journals
Ataei, B., 2019. “Smart Home”-From A Concept To A Living Product in the UAE (Doctoral
dissertation, The British University in Dubai (BUID)).
Mehboob, D., 2020. UAE tax market set to mature by 2023. International Tax Review.
Franklin, J., 2020. Lack of conventional bank buy-in restricts UAE fintech. International
Financial Law Review.