Offshore Company In Brazil

1. Why Brazil?

After fifteen years of macro-economic policy based on the three pillars of inflation targeting, floating exchange rate and primary fiscal surplus, the Brazilian economy displays clear signs of stability with regard to external accounts and public finances. Further more, since 2003, there has been increasing evidence of improved performance in production, sales, exports and employment. This scenario reveals and development, and favors the fulfillment of the main objectives of the Brazilian government in its quest for social justice. Brazil's current development trajectory requires further public policies aimed at increasing economic efficiency and reducing external vulnerability, along with measures to stimulate investment and savings as proportions of GD(Gross Domestic Products). The government has contributed to the recovery in demand, for example by stimulating credit and temporarily reducing tax rates. Inflation is falling as a result of a sound fiscal policy that has allowed the public debt to be significantly reduced in recent years. GDP grew by more than 1.9% in the second quarter of 2009, showing that the economy is bouncing back, and Moody's recently be came the third major credit- rating agency in eighteen months to award Brazil investment grade status, citing the solidly and resilience of the Brazilian economy in the face of the global financial crisis.

2. Legal Framework

Brazil's legal frame work is based on the Federal Constitution, 1988./ In its 250 articles it will be found the citizens' fundamental rights and guarantees, the political and administrative organisation of the federal Republic of Brazil, the individual spheres of authority of the executive, Legislative and judicial branches, the out lines of the Brazilian tax system and the fundamental labor rights, among other matters. Constitutional rulings are hierarchically superior to those of any other law. The legislative authority of the federal government, states and municipalities is specified and laid out in the Federal government, states and municipalities is specified and laid out in the Federal Constitution, thus avoiding the issuance of redundant or conflicting laws by each sphere of power. Federal laws take precedence and are hierarchically superior to any state or municipal law. The federal government has the exclusive authority to legislate on civil, commercial, penal, procedural, labor, electoral, agrarian  maritime, aeronautical and space matters. Its also exclusively Federal the authority to rule on matters such as expropriation energy, telecommunications, insurance, foreign trade, nationality and citizenship among others.

3. Banking

The National Monetary Council (CMN). formulates monetary and credit policy and it includes representatives from both the government and the private sector. The Central Bank of Brazil (BACEN) administers monetary policy through specific mechanisms.

4. Financial Regulatory Authority

Administrative monetary policy by CMN is controlled through the following mechanisms:P establishing reserve requirements (compulsory deposits) for the commercial banking system; purchasing or selling government securities on the open market; determining the BACEN and setting the primary interest rates for the economy. Loans for longer terms are granted by the following entities; Government financial entities; foreign private banks, in foreign currency equivalent; and multinationals to their subsidiaries. Foreign loans are subject to registration before BACEN (Brazilian Central Bank).

5. Taxation

5. a. Corporate Tax

Brazilian companies are subject to corporate income tax on their worldwide income (including capital gains). Brazilian corporate income tax is charged at a 15% rate, with a surtax of 10% applicable to profits exceeding Rs240,000 a year. In addition, Brazil imposes a social contribution tax on corporate profits. the social contribution tax works similarly to income tax and it is charged at a 9% rate.

5. b. Personal Tax Rates

Residents of Brazil are taxed on their worldwide income. Non-residents are taxed on their Brazilian-Source income only. The rates of personal income tax are 15% and 27.5% (those who receive up to Rs 1.499,15 per month have exempt). Capital gains are taxable at a rate of 15%.

5. c. Social Security

Social Security Contributions (INSS), on monthly Salary: paid by employer (26% to 30%); paid by employee, depending on the salary (amount may not exceed Rs 375,81 7.65% to 11%. Severance Pay Indemnity Fund (FGTS) on monthly salary: 8%.

5. d. Customs & Excise Duties

As a MERCOSUL member, Brazilian customs follow the MERCOSUL customs procedures. In general, goods from MERCOSUL members states are subject to VAT, while goods outside the MERCOSUL are subject to Customs and Excise rules. Capital goods (from any country), in general, and tax-free from Customs and Excise duties.

5. e. V.A.T.

Federal VAT (imposto sobre productos industrialzados or IPI) is charged on imports of goods, on the first sale of imported goods and on transactions involving manufactured goods (0% to 365%(cigars) rate) Exports are tax exempt. State VAT (Imposto sobre operacoes relatives a circulacao de mercadorias e sobre prestacoes de services de transporte interestadual e intermunicipal e de comunicacoes or ICMS) is levied on the import of goods and on the movement out of imported and manufactured goods, even if between branches of the sale legal entity 

(7% to 18%, depending on the state). Exports are tax exempt. ICMS paid on imports as well as on local acquisitions generally becomes a tax credit to offset ICMS due on subsequent transactions. Special rules apply to the offset of ICMS tax credits associated with the acquisition on fixed assets. Social Integrated Programmer (PIS) and Social Security Financing Contribution (COFINS) taxes, levied on gross income (1.65%-PIS and 7.6%- COFINS). The tax is a non-cumulative tax for certain taxpayers; certain companies are subject to the cumulative system and the rates are 0.6%-PLS and 3%-COFINS. The tax is also levied on imports (1.65%-PLS and  7.6%-COFINS).

5. f. Tax Incentives

Brazil provides a large list of incentives. The main incentives are: Tax Incentives in the Northeast States and the States of Amanzonas and Espirito Santo; Industrial and Agricultural Technology Programs; REPES and RECAP - Tax Incentives on Exports; Manaus Free Trade Zone (MFTZ) and Special Free Trade Zones. The Brazilian states and municipal districts also provide incentives for the ICMS (state VAT tax) and ISS (municipal tax).

Notes: Transfer Pricing rules apply only to cross-borders transactions between Brazilian companies and foreign related parties.

6. Main Types of Corporate Forms

The main corporate forms in Brazil are: Corporation (S/A) and limited liability company (LTDA). Corporations are similar in form to both US and European corporations. Limited liability companies are similar in form to European limited libility companies (such as French SALs and German GmbHs). Trusts are not recognized as entities under Brazilian law.

7. Company Incorporation

As a general rule, a Brazilian limited liability company (LTDA) may be established with in a 10 to 30 day period. A foreign equity investment must be registered with the BACEN with in 30 days to allow future repatriation of the original amount invested as well as payments of dividends in foreign currency. The companies are registered at Board of Trade (Commercial Registry) of the domiciled State, and automatically registered before the Internal Revenue Services (Federal Tax Office) and State Tax Office.

8. Reporting & Auditing

Both corporations and limited liability companies (limitadas) must hold annual general shareholders' meetings within four months after the end of their fiscal year. Public Corporations must have their financial statements audited once a year by independent auditors. Limited liability companies are not subject to audit requirements. Corporations must prepare and publish their financial statements, they are not required to publish them. All Brazilian companies must file annual tax returns based on their consolidated results for the calender year.

9. Special Notes / Country Update

Companies operating in Brazil have started the countdown to the 2010 mandatory adoption of the IFRS standards, where banks will be required to adjust to the Basel II standards for a revised international capital framework.

Dubai Tax Laws

Although Dubai is a 'no-tax' jurisdiction, ownership restrictions on companies in the normal economy mean that the Jebel Ali Free Zone, Dubai Investment Park, Dubai Internet City, the Dubai International Finance Centre (DIFC), which opened in 2003, the Dubai Airport Free Zone, and Dubai Media City are the key locations offering an 'offshore' option to foreign operators. Operations inside the Free Zone (JAFZ) can be carried out under various different types of license, but most often a foreign company will use a a 'Free Zone Establishment'.

Dubai Forms of Offshore Operation

Companies approved for operation in Jebel Ali Free Zone are granted one of the following types of licences, renewable annually for as long as the company holds a valid lease from the Free Zone Authority:

• A General Trading Licence allows the holder to import, distribute and store all items as per Jafza rules and regulations.
• A Trading Licence allows the holder to import, export, distribute and store items specified on the licence.
• An Industrial Licence allows the holder to import raw materials, carry out the manufacture of specified products and export the finished product to anycountry.
• A Service Licence allows the holder to carry out the services specified in the licence within the Free Zone. The type of service must conform to the parent company's licence, issued by the Economic Department or Municipality of the relevant Emirate in the UAE.
• A National Industrial Licence is designed for manufacturing companies with an ownership or shareholding of at least 51% AGCC (Arabian Gulf Co-operation Council).

A Free Zone Establishment - or FZE - is an establishment formed and registered in Jebel Ali and regulated solely by the Free Zone Authority.
Such establishments must have a capital of at least AED1 million and liability will be limited to the amount of paid-up capital. A FZE need only have a single shareholder and is an independent legal entity.
Any company, organization or individual wishing to form a Free Zone Establishment must submit a completed application form to the FZE Department of the Free Zone Authority. A decision on whether permission has been granted will be given within 30 days of receipt of the application and any other information and documentation required.
If permission is granted, the Authority will record all relevant details in the FZE Register and issue a Certificate of Formation. This will specify the date of registration after which the FZE will be free to conduct any such business as is permitted in its Special License.
In mid-2008, over one-quarter of Dubai's GDP was generated by the Jebel Ali Free Zone, which at that time had over 6,000 companies operating within the zone.
The Dubai Internet City is regulated by a law passed in 2000, and is formally known as Dubai Technology, Electronic Commerce and Media Free Zone. The privileges offered to its occupants are very similar to those applying in Jebel Ali. In line with Dubai's liberal economic policies and regulations, Dubai Internet City offers foreign companies 100% tax-free ownership, 100% repatriation of capital and profits, no currency restrictions, easy registration and licensing, stringent cyber regulations, protection of intellectual property.
The Dubai International Financial Centre (DIFC) was launched in 2003 and began operations in late 2004. lt was intended to fill a significant gap in the market for international Shariah banking, fund management and life assurance. The proposed regulatory framework was published for industry consultation in June, 2003. Philip Thorpe, chief executive of the DIFC Regulatory Authority, explained that: "We have...made good use of our freedom to create a single, logical framework - in contrast to older-established jurisdictions, who often have to make (do) and mend within existing frameworks which may gradually become more complex and less relevant."
In July, 2003, the UAE Federal Cabinet approved a Federal Decree allowing the DIFC a large degree of sovereignty. In addition to confirming the appointment of General Sheikh Mohammed bin Rashid Al Maktoum, UAE Defence Minister and then-Crown Prince of Dubai (now Ruler) as the President of the DIFC, the decree officially created the DIFC Financial Services Authority, the DIFC Judicial Establishments and the DIFC Registrar of Companies.
The DIFC has a separate set of laws called the Commercial Code, comprising a comprehensive set of regulations like company law, legislation on property rights, including laws on security and collateral, title to goods and securities, commercial transactions and contracts, and insolvency.
In January, 2004, the Dubai Financial Services Authority (DFSA) announced that 12 new laws relating to operations within the Dubai International Finance Centre (DIFC) had been put in place. Chief executive officer of the DFSA, Philip Thorpe explained that:
"The 12 new laws have been drafted by the DFSA to world-class standards, using the best examples of legislation from around the globe. They are clear and concise, and will provide certainty as to the rights and obligations of the financial institutions and other companies who will operate in or from the DIFC."
The laws (to which the DFSA has provided access on its website) are:
Regulatory Law;
Companies Law;
Law on the Application of Civil and Commercial Laws in the DIFC;
Law Relating to the application of DIFC Laws;
Limited Liability Partnership Law;
Contract Law;
Insolvency Law;
Arbitration Law;
Data Protection Law;
Commercial Court Law;
General Partnership Law; and
Markets Law.
In June 2005, five new laws dealing with legal obligations, employment and security interests in relation to the Dubai International Financial Centre were enacted.
The new legislation comprised:

• Employment Law No. 4 of 2005. This law provides for minimum employment practices comparable to established international standards, so as to promote fair treatment of employees and employers;
• Law of Obligations No. 5 of 2005. This law creates a framework for claimants to seek recovery for non-contractual claims and sets out the rules as to when obligations arise and how disputes involving them are resolved;
• Implied Terms in Contract and Unfair Terms Law No. 6 of 2005. This law provides for fairness and certainty in contracts governed by the laws of the DIFC by providing terms and conditions not normally included in contracts and assures the necessary framework for their enforcement;
• Law of Damages and Remedies No. 7 of 2005. This law creates the structures necessary to assure the recovery of damages and other forms of relief to claimants within the DIFC; and
• Law of Security No. 9 of 2005. This law defines various forms of security interests as collateral for repayment of debts and prescribes the process for their perfection and enforcement.

Then in November 2005, the DIFC Trust Law 2005, which provides a comprehensive framework for the creation of trusts in the DIFC, was enacted. Consisting of ten major sections, the legal framework encompassed matters such as choice of governing law, place of administration, creation, validity and modification of a DIFC trust, office of trustee, and duties and powers of trustees.
The Trust Law, DIFC Law No. 11 of 2005 followed closely the enactment in September of the Personal Property Law No. 9 of 2005, which defines the rights and obligations of parties in relation to property other than real estate (land and buildings) located in the DIFC, and the Law Relating to the Application of DIFC Laws (Amended and Restated) No. 10 of 2005.
In 2006, both the Companies Law and the Limited Partnerships Law were amended.
In February 2008, the new DIFC arbitration law was enacted by Sheikh Mohammed Bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai. The new law facilitated the establishment of the the DIFC's Arbitration Centre and adopted the UNCITRAL Model Law, with amendments aimed at improving its provisions. The reform also widened the scope of arbitrations which the law governs, to include all types of arbitrations and parties opting to arbitrate at DIFC.
In November 2008, the DIFC released its proposed updates on Companies Law and Insolvency Law for public consultation.
The Companies Law has been updated to include the registration requirements laid down by the DIFC Registrar of Companies. The Insolvency Law has been updated to include changes in applications and procedures for winding up Protected Cell Company (PCC) structures used by insurers to provide an easy and cost-effective way for smaller organizations to establish captive insurance units.
Also in November 2008, the DIFC announced that it had enacted new regulations that enable companies within the financial district to quickly form Special Purpose Company (SPC) structures. The new regulations allow companies to create SPCs for facilitating both Islamic and conventional transactions as well as vessel registrations. Transactions that can be facilitated by the new law include acquisitions and financings. Under the law, Special Purpose Companies can be easily structured and incorporated, while enjoying exemptions from some filing and disclosure rules relating to conventional companies in DIFC.

Dubai Tax Treatment of Offshore Operations

Amongst the incentives offered to companies operating within the Jebel Ali Free Zone, the DIC and the DIFC are:

• Corporate Income Tax: No corporate income tax on profits. The exemption is for a period of 15 years with a guarantee of an extension for a further 15 years in the event that corporate income tax is introduced in Dubai. Currently only banks and oil companies are assessed to corporate income tax in Dubai. The key difference with companies operating in JAFZ is the guarantee of exemption in the event that corporate income tax is imposed by the government.
• Withholding Taxes: No withholding taxes.
• Import Duty: Exemption from all import duties on goods imported into the free trade zones. For all other imports, duties have been largely standardised at 5%.

Dubai Taxation of Foreign Employees of Offshore Operations

No personal income tax is deducted from wages and salaries paid to employees or on other income earned. See Domestic Personal Taxes for the general principles of individual taxation (or lack of it) in Dubai, which also apply to the resident employees of offshore entities.

Dubai Exchange Controls

There are no exchange controls in Dubai

Dubai Employment & Residence

Citizens of GCC countries (Gulf Cooperation Council: Saudi Arabia, Kuwait, Bahrain, Qatar and the Sultanate of Oman) and British nationals with the right of abode in the UK do not need visas to enter the UAE. GCC nationals can stay more or less as long as they like. Britons can stay for a month and can then apply for a visa for a further two months.
The Dubai Naturalization & Residency Department (DNRD) issues different types of visas which are listed below.
1) 96 hour visa:

• Issued upon arrival at the airport
• Airline sponsored only
• Applicants should have onward booking
• Should have a minimum of 8 hour transit break

2) Visit visa:
2.1 In case of Personal sponsorship:

• Fees: Dhs 100
• Entry permit application form with completed typed data
• Original Marriage certificate and copy of it, in case of wife sponsorship
• Salary Certificate; The monthly salary should not be less than Dhs. 4000 in case of wife
• sponsorship, and Dhs. 6000 in case of first relatives sponsorship.
• Copy of the Sponsor passport
• Copy of the Sponsored passport.

2.2 In case of Establishments sponsorship:

• Fees: Dhs 100
• Entry permit application form with completed typed data
• Establishment card and copy thereof
• Copy of the Sponsored passport.

2.3 Renewal:

• Fees: Dhs 100
• Original Entry Permit.

2.4 Extension:

• Fees: Dhs. 500
• Original Entry permit
• Extension application form
• Original sponsored passport.

3 - Transit visa

• Fees: Dhs. 120
• Establishment card
• Entry Permit Application form
• Copy of Sponsored passport.

4 - Tourist visa

• Fees: Dhs. 100
• Establishment card
• Statement of tourists data

A Multiple Visit Visa can be granted after a normal visa has been issued and used, and are an option for business visitors who are frequent visitors to the UAE and who have a relationship with a reputable company in the UAE. Valid for six months from date of issue, each visit must not exceed 30 days in total. This visa costs AED1,000. The visitor must enter the UAE on a visit visa and obtain the multiple entry visa while in the country.
A Residence Visa stamped on a passport proves the legal residence of an expatriate in the country. This visa is given to workers who have obtained work permits or for relatives living with them permanently, and additional documentation is required.
In June, 2004, the Dubai government unveiled plans to enshrine in law rules governing foreign freehold ownership of property. Deputy director general of the Dubai Chamber of Commerce and Industry (DCCI), Ahmed Abdul Rahman Al Banna explained that:
"At present there is no federal law to govern foreign freehold ownership of property in Dubai," although he added that as an internim measure "major property developers have got together to offer guarantees to investors on freehold ownership, which has been endorsed by the Dubai government."
The DCCI deputy director general went on to announce that: "As part of our commitment to regulate the real estate sector, the Dubai government will issue a new property law which will address some of the key issues including legalising foreign freehold ownership of properties."
In March 2006, the long-awaited Dubai property law was issued, but Law No.7 of 2006 stipulated that freehold is limited to UAE and GCC citizens and companies wholly owned by them, as well as public shareholding companies. However, the law also stipulated that upon approval of Dubai's ruler, non-UAE nationals may be given the right to own properties in some parts of Dubai.
In August 2006, the Dubai International Financial Centre Authority (DIFCA) published draft legislation that will allow foreign freehold ownership of property in the DIFC.
The laws published included the DIFC Real Property Law 2006 and the Strata Title Law 2006. The Real Property Law guarantees ownership of freehold land and interest in land within the DIFC. It will allow for foreign companies and individuals to hold freehold ownership of real estate within the Dubai International Financial Centre.
The Strata Title Law establishes a system of guaranteed freehold title to units in buildings in the DIFC. It is based on the system originally developed in Australia, which is now in use in many countries around the world, including Singapore.
Consultation on the proposed laws ended in September 2006, and both laws were enacted in June 2007.

Dubai The Jebel Ali Free Zone

The Jebel Ali Free Zone (JAFZ) was established in 1985 with the specific purpose of facilitating investment. Accordingly, the procedures for setting up in the zone are relatively simple. Its legal status is quite distinct: companies operating there are treated as being "offshore", or outside the UAE for legal purposes.
The option of setting up in Jebel Ali is therefore most suitable for companies intending to use Dubai as a regional manufacturing or distribution base and where most or all of their turnover is going to be outside the UAE.
100% foreign ownership is permitted in the JAFZ. There is exemption from all import duties and 100% repatriation of capital and profits is guaranteed.
There is freedom from corporate taxation for a period of 50 years, a concession which is renewable. There is a high level of administrative support from the Free Zone Authority. In addition, there are no import or re-export duties, no personal income taxes, no currency restrictions, and no restriction on hiring foreign employees.
Companies approved for operation in Jebel Ali Free Zone are granted one of the following types of licences, renewable annually for as long as the company holds a valid lease from the Free Zone Authority:

• A General Trading Licence allows the holder to import, distribute and store all items as per Jafza rules and regulations.
• A Trading Licence allows the holder to import, export, distribute and store items specified on the licence.
• An Industrial Licence allows the holder to import raw materials, carry out the manufacture of specified products and export the finished product to anycountry.
• A Service Licence allows the holder to carry out the services specified in the licence within the Free Zone. The type of service must conform to the parent company's licence, issued by the Economic Department or Municipality of the relevant Emirate in the UAE.
• A National Industrial Licence is designed for manufacturing companies with an ownership or shareholding of at least 51% AGCC (Arabian Gulf Co-operation Council).

Companies holding a Free Zone licence are permitted to operate in the Jebel Ali Free Zone and outside the UAE. Operation within the UAE can be undertaken either by a commercial agent, representative, distributor, or the mother company licensed by the relevant UAE authority. Any company holding a Free Zone licence can itself purchase goods or services within the UAE.
Any company wishing to set up a project in Jebel Ali Free Zone must first complete a simple questionnaire. The license application process then takes place and will include a meeting to discuss and finalise the project details. If everything is satisfactory, the Authority will issue conditional approval for the project. Thereafter, a lease agreement and, if required, a personnel secondment agreement will be prepared by the Authority for signature by the company.
At the time of signing, the applicant will be required to provide the insurance policies called for in the agreements and should pay the agreed rental and licence fee prior to collection of the licence.
If the company wishes the Free Zone Authority to sponsor employees on its behalf, applications for entry permits may be submitted once the licence has been issued. The bank guarantee called for in the personnel secondment agreement will be required at this stage together with visa charges.
If the company's project involves the erection of a structure, detailed plans must be submitted after the lease has been signed. When the plans have been agreed, a building permit will be issued.
Administrative work, such as importing equipment or engaging labour for installation of equipment, may proceed in parallel with construction work. But application for entry permits for operatives to be sponsored by the Free Zone Authority will not normally be accepted until a completion certificate for the construction has been issued.
A Free Zone Establishment - or FZE - is an establishment formed and registered in Jebel Ali and regulated solely by the Free Zone Authority.
Such establishments must have a capital of at least AED 1 million and liability will be limited to the amount of paid-up capital. A FZE need only have a single shareholder and is an independent legal entity.
Any company, organisation or individual wishing to form a Free Zone Establishment must submit a completed application form to the FZE Department of the Free Zone Authority. A decision on whether permission has been granted will be given within 30 days of receipt of the application and any other information and documentation required.
If permission is granted, the Authority will record all relevant details in the FZE Register and issue a Certificate of Formation. This will specify the date of registration after which the FZE will be free to conduct any such business as is permitted in its Special Licence.
The free zone is the base for thousands of leading international firms, including many Fortune global companies from various sectors.
The Free Zone and Dubai Ports Authority (DPA) are inextricably linked, they are led by one chairman and share a strong, symbiotic relationship. The Free Zone is built around the DPA's Jebel Ali terminal, enabling customers to take full advantage of the port's ISO-certified container and general cargo operations. Specialized unloading facilities and purpose-built storage such as the cool and cold stores are also at the disposal of Free Zone companies. Jebel Ali terminal offers efficient cargo handling, and with rates among the lowest in the world, the prospect for exporting is good.
In February 2000 Dubai ruler Sheikh Maktoum bin Rashid al-Maktoum issued a decree setting up a free-trade zone for electronic commerce and technology, known as Dubai Internet City.
Legal and fiscal privileges in the DIC are similar to those applying in the Free Zone.
The physical location of the Internet City is on Sheikh Zayed Road, next to the American University.This area overlooks the Emirates hills golf course development. The City opened for business in late 2000; highlights include:

• World class technical infrastructure: high bandwidth, low cost telecom infrastructure and secure, high speed support infrastructure;
• State-of-the-art urban infrastructure: cost competitive, flexible office space and world class housing, medical and education facilities;
• Access to talent pool: large pool of high skill, low cost knowledge workers;
  Straight-forward laws and regulations: easy and fast company registration laws, hassle-free immigration process and straight forward legal procedures;
• Supportive environment: Government backed e-business initiatives, business incubators, venture capital funds and e-education programs;
  Gateway to markets: access to regional markets in Middle East, North Africa, Indian Subcontinent and CIS.

In line with Dubai's liberal economic policies and regulations, Dubai Internet City offers foreign companies 100% tax-free ownership, 100% repatriation of capital and profits, no currency restrictions, easy registration and licensing, stringent cyber regulations, protection of intellectual property.

Dubai Shipping

Dubai's harbour is the most important port in the Middle East and is ranked among the worlds top 15 in terms of container throughput. The Dubai Ports Authority (DPA) operates the harbour which lies alongside the Jebel Ali Free Zone. Dubai's traditional trade links with nearby Gulf states, Red Sea, East Africa and Asian subcontinent have been enhanced by new commercial ties from around the world. Notable in recent years have been trade relations forged with the emerging CIS and South African markets where shippers are keen to capitalize on Dubai's proven distribution capabilities and advantages.
Dubai Ports Authority (DP World) is known for its ability to provide a superior level of service to shipping lines in Dubai.
Core Services offered by DP World include:

• Container cargo handling
• General cargo handling
• Bulk cargo handling
• Berthing for Ro/Ro vessels
• Monitoring, maintenance and repair of reefer vessels
• Facilities for commercial trucks
• Facilities for passengers.

The Port also has a tanker facility, can undertake container repairs, offers a modern expressway system linking Jebel Ali terminal and Dubai International Airport’s Cargo Village, and provides a full range of Supply Chain and Logistics services including Customs Clearance, Import & Export Freight Management and Stock Control.
In 2004, the port handled a throughput of 6.42 million TEUs ("Twenty Foot Equivalent Unit" steel ocean shipping containers), representing an increase of 24.6% on its 2003 figures, and making it the 10th largest but also the third fastest growing port.
Also in 2004, Dubai Ports signed a memorandum of understanding with Abu Dhabi Sea Port Authority and Ports Authority of Fujairah to develop joint strategies for both the ports authorities.
In September 2006, DP World became the first global company in the transport and logistics industry to gain certification to an international standard for its security management systems and operations.
Lloyds Register Quality Assurance (LRQA), an independent international certification body, audited DP World for compliance with the international standard ISO/PAS 28000:2005 at both the corporate head office in Dubai, UAE, and its chosen site, Djibouti Container Terminal.
As a consequence of DP World’s adoption and implementation of the standard, its network of ports has the ability to effectively implement mechanisms and processes to address any security vulnerabilities at strategic and operational levels, as well as establish preventive action plans.
Meanwhile, in August 2005, the Dubai Maritime Authority announced plans to launch the first shipping registry in the Middle East open to both domestic and international companies.
The move was welcomed by the Emirate's shipping industry.
Dubai Maritime City project manager, Amr Ali explained that:
"The primary function of the registry will be to maintain the specific requirements of the government related to the ship owning company or the ship itself."
"As the first purpose built maritime cluster, we are pleased to be involved in the setting of groundbreaking new industry standards to benefit maritime businesses in the region. We aim to ensure that the highest possible standards are maintained to make it attractive for ship owners and liner operators to register with us."
Dubai Maritime City is an integrated state of the art development that provides every element of infrastructure required by key marine and maritime related industries.
DMC is the world's largest maritime development, on a man made peninsula measuring 25 million square feet. Located between Dubai's Port Rashid terminal and Dubai Drydocks, it is connected to the mainland by a causeway.
Dubai Maritime City is be the hub for maritime businesses from six large and diverse sectors and will provide every element of infrastructure required by them. They include:

• Marine Services
• Management
• Product Marketing
• Research & Education
• Recreation
• Ship Design and Manufacturing

Among all the companies in Jafza, 74 per cent are into trading, 22 per cent into manufacturing and four per cent into services. Emphasising the role of India, Mr Al Banna said that it is the third largest exporter to Dubai. Among the Indian exports, 35 per cent are precious stones/pearls, 21 per cent textiles and about 10 per cent food industry. He cited examples of Indian businesses already present in Jafza like Tata, SRF, Mirc Electronics, Bajaj and IPCL.
Mr Sudhir Deoras, chairman of International Trade and Export Sub-Committee of CII (and managing director of Tata International), while inaugurating the seminar said that the world’s perception about India is changing. India is being looked at for many more things than just cheap labour. Indian companies are laying great stress on international business and are setting up joint ventures and marketing offices abroad, to gain out of the economic liberalisation. He added that apart from cost advantages, the Middle East (Dubai in particular) is considered to be a very comfortable business destination by Indian companies.
Focusing on the significance of Jafza, Mr Al Banna added that the non-oil GDP of Dubai has grown from $11.3 billion in 1997 to $16.2 billion in 2001. Of this 18 per cent comes from trading, 17 per cent from manufacturing and 11 per cent from financial sector. Dubai has a large re-export market comprising of India, Iran, Saudi Arabia and GCC countries.
During his introductory speech, AC Patankar, principal advisor, CII, highlighted the fact that eight CII delegations have been to the Gulf region in just 12 months. Delegations are now expected from Iran, Saudi Arabia, Bahrain and Yemen among others.
Jafza was established in 1985 and offers world-class facilities to set up business. It allows 100 per cent foreign ownership, tax exemptions and repatriation of profits. Dubai’s location...