Checking counterparties from the UAE. Globas solutions
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The Russian economy is actively reoriented to the East; this direction is becoming increasingly strategically significant and important.
Many entrepreneurs see the United Arab Emirates as an area of new opportunities for business expansion and investment. However, before deciding to cooperate with a company from the UAE, it is necessary to conduct a thorough check to ensure the reliability and legality of the partner’s activities.
The UAE is actively developing cooperation with Russia, including not only economic ties, but also interaction in strategically important areas such as high technology and energy.
In 2023, trade turnover between Russia and the UAE reached $10.2 billion in comparison to $9 billion in 2022. Russian export increased by 12.7% and reached $9.8 billion, import increased by 50.8% and reached $400 million.
On January 1, 2024, the UAE officially became a member of BRICS, which further strengthens economic cooperation between our countries.

Due diligence when checking a UAE company

Cooperation with an unfair counterparty can lead not only to financial losses, but also to damage to the reputation of your company. This is especially dangerous in conditions of active entry into new international markets.
When checking a counterparty from the United Arab Emirates, it is important to carefully study all aspects and comply with the requirements of the legislation of the Russian Federation. Let's take a look at the key ones:
1. Collection of general information
Registration data and licenses: obtaining information about the legal status of the company, UAE tax registration number (when registering an organization, a unique 15-digit code is issued) and registration date. It is also necessary to check the availability of a license. Companies in the UAE cannot conduct any activity without a license.
Contact details: checking the relevance of the address, telephone and email.
There are more than 40 free economic zones (FEZ) in the UAE, offering attractive conditions for investors, including low taxes, no customs duties and a high level of confidentiality. To conduct business, companies are required to obtain an appropriate license, which may be related to trade, production, services or e-commerce. As a rule, the license period is 12 months with the possibility of annual renewal.
Each FEZ maintains its own register of residents, access to which may be limited. Companies are not required to disclose their financial statements, which creates additional difficulties when checking counterparties.
Common forms of organizations include:
  • FZE (Free Zone Entity or Free Zone Establishment) – legal entity with one shareholder;
  • FZC or FZCO (Free Zone Company) – legal entity with the number of founders from one to fifty.
2. Financial condition
The financial stability of the company lies in the absence of debt to the budget and other counterparties. When checking, it is necessary to determine the presence of lawsuits and claims, cases of administrative, subsidiary or criminal liability, arrest of property and tax debts.
To reduce the risks linked to cooperation with an unreliable counterparty, it is worth requiring your partner for constituent documents, which indicate the details of the company’s shareholders, as well as a certified list of shareholders.
3. Assessing information about beneficiaries
It is not possible to verify this data through publicly available online sources. To clarify the data of shareholders and management companies, it is necessary to contact the official UAE government authorities or relevant agencies.
4. Goodwill and history
To obtain the maximum amount of information, it is recommended to turn to feedbacks from real partners of the company and study the recommendations of clients and counterparties. This will help you get a complete picture of its goodwill and reliability.
If a company has had litigation or been involved in negative activities, this information will highly likely be found in local news and information sources. Studying these sources will help you learn about problems or incidents related to that company.

Minimizing the risks of cooperation with UAE companies with Globas

Conducting an independent audit of a UAE counterparty is a complex procedure that requires attention, time and a good understanding of the law. To achieve maximum results, it is recommended to involve specialists with relevant skills and experience.
The Information agency Credinform and the Information and Analytical system Globas will help solve the problems of due diligence when checking international business partners, including those from the UAE. Credinform is a leading provider of economic information on companies from around the world.
In Globas you can obtain online information about companies in Belarus, Kazakhstan, Kyrgyzstan, Latvia, Moldova, Tajikistan, as well as generate a report on over 489 million companies from Europe, America, Africa and the Asia-Pacific region. This report will include information on registration, financial statements, shareholders, beneficiaries and all the basic information necessary to make an informed decision.
For a more detailed and thorough check, you can order an offline report. Your request will be processed by a team of skilled experts with extensive experience and specialization in the field. You will receive comprehensive information, including registration data, financial statements, ownership structure taking into account international connections, expert assessment, as well as check of links and affiliations with Russian companies.


Credit reports on foreign companies

Thanks to a wide network of partners, Credinform provides information about legal entities and entrepreneurs around the world on all continents: from multinational corporations to offshore companies and individual entrepreneurs. To verify the solvency of the company, to identify the owners or to check the fact of registration in an offshore zone – our experts will provide comprehensive information and a competent resume.

Checking companies with limited information disclosed using Globas
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The best way to avoid debts, litigation and reputation problems is to enter into agreements with reliable counterparties.
Before signing an agreement with a business partner, you must carefully check all available information on it and assess risks.
The main steps are:
  • request registration information
  • analyze financial statements
  • check management and shareholders
  • confirm the fact of carrying out financial and economic activities
  • verify business reputation
Compliance with the requirements of the Federal Tax Service in the matter of commercial prudence allows for a high-quality audit of the counterparty.
Registration information will show that the company is officially registered in the Unified State Register of Legal Entities. Analysis of financial statements will reveal the financial condition of the company. Checking management and shareholders can reveal disqualification, false records data, legal proceedings and debts. Confirmation of the fact of carrying out financial and economic activities and verification of business reputation will protect against additional charges, on-site tax audits and close attention from the Federal Tax Service.
However, during verification, difficulties may arise due to circumstances such as:
  • period of activity of the company
  • information with limited access for third parties, according to the law

Main challenges during verification

Challenges in verification may arise due to lack of information. In some cases, the first reporting period for newly incorporated companies may occur only after 1 tax period. That is, the first information about the financial condition begins to appear only 1.5 years after the start of activity.
In addition, there is little information on business reputation for newly incorporated companies. There can be no reviews in the public domain, the company may not participate in arbitration proceedings, in public procurement and commercial tenders . It is difficult to determine the nature of economic relationships and the business policy of a company. When independently checking such companies, it is necessary to turn to a large number of sources, since there is no consolidation of data in a single space.
Information disclosed to a limited extent also causes inconvenience. Due to sanctions pressure, companies are actively hiding information about managers, shareholders and current financial statements.
In accordance with Decree No. 1624 of the Government of the Russian Federation dated September 16, 2022 and Decree No. 903 of the President of the Russian Federation dated November 27, 2023, companies can completely close access to financial data or independently determine the amount of disclosed information. And based on Subpara. 3, Para. 1, Art. 6 of the Federal Law dated 08.08.2001 No. 129-FZ “On state registration of legal entities and individual entrepreneurs” information from the Unified State Register of Legal Entities may be disclosed to a limited extent.
It turns out that for such categories of companies most of the basic verification steps cannot be carried out. This gives rise to threats to miss important information about risks.

Globas solutions

The Information and Analytical System Globas will help overcome above mentioned challenges. Globas allows you to conduct an in-depth check of any counterparties using an extensive number of sources and analytical sections.
1. Assessment of newly incorporated companies through the method of formation and analysis of the business environment
Globas allows you to determine how the company was formed and automatically checks affiliated entities and individuals. You can evaluate the company’s immediate environment through the Link map, the list of Affiliated and Subsidiary companies, by management and ultimate owners.
If the company is associated with unscrupulous and unreliable persons, it is undesirable to cooperate with such counterparties. There is a high risk of attracting the attention of the Federal Tax Service, damaging your reputation, or receiving fines and legal proceedings due to a lack of commercial diligence.
2. Checking newly incorporated companies in negative registers, among participants in arbitration cases and enforcement proceedings
The Information and Analytical System Globas automatically checks organizations and persons against 55 negative lists. If a person is on the negative list, Globas will display this information in the appropriate section and on the Summary page.
In addition, the analysis of arbitration cases in a company profile provides statistics of the company’s participation in arbitration cases as a defendant or plaintiff over the entire history of the company, check the nature of the disputes, and also assess the claim burden. And enforcement proceedings will show the level of non-execution of decisions on a voluntary basis.
If a newly incorporated company is on the Register of Unfair Suppliers, tax debtors, does not fulfill obligations to partners or neglects the decisions of authorized bodies, it is worth refraining from cooperation.
3. Checking companies with limited information disclosed
Globas contains a deep archive of information. In cases where a company limits access to its current data, the information presented in Globas is marked as archived and continues to be available for users.