UAE Laws and Islamic Finance

Laws of the UAE and Islamic Finance

Archive for March 29, 2010

UAE Employment Visa Application

Submit the following to the Immigration Department for a city of Dubai employment visa:

  1. Employee’s passport copy.
  2. Two passport size photographs.
  3. Approval Letter Received from the Ministry of Labor.
  4. Copy of the immigration card and the original for verification.
  5. Copy of the Trade License.
  6. Application Fee.

Once the employment visa is obtained, a copy should be sent to the employee and the original lodged at the airport at least two hours before the employee’s arrival.  When the employee enters the country, the next step is to apply for the employee’s residence permit.

First, the employee must take the medical test in a government hospital in the emirate of employment and obtain a medical certificate and health card.  When getting the medical test, the employee should take with him or her a copy of the passport, a copy of the employment visa, four passport size photographs, and the appropriate fee. Once the medical certificate is issued, the application for the labor card should be made to the Ministry of Labor and Social Affairs within 30 days of the employee’s entry into the UAE.  In order to apply for the labor card, one must submit the following documents:

  1. Application form typed and submitted through the Injaz program.
  2. The contract of employment between the employee and the employer.
  3. Two passport photographs of the employee.
  4. Copy of the medical certificate.
  5. A copy of the Trade License.
  6. A copy of the Ministry of Labor Card of the Business.
  7. A copy of the visa.

The next step is to apply for the Residence Permit. In order to do this, one must submit the following documents to the Immigration Department:

  1. A copy of the receipt of submitting the transaction to the Ministry of Labor.
  2. The completed application form typed and submitted through the Injaz Programme.
  3. The original medical certificate.
  4. The employee’s original passport.
  5. The original employment visa issued to the employee.
  6. A copy of the sponsor’s passport.
  7. A copy of the Business’s trade license.
  8. A copy of the immigration card of the business.
  9. Two passport size photographs of the employee.
  10.  The application fee.

This should be done within 60 days of the employee’s entry into the UAE on his employment visa.

The penalty for not completing the applications within the required time limits: 25 AED per day to the Immigration Department and 500 AED per day to the Ministry of Labor and Social Affairs.

*This information was taken from Al Tamimi brochure on Immigration Law.  Please note different procedures apply in each individual UAE free zone.  This information in no way implies a successful visa application.

Visa Requirements for New Born Babies in the UAE

If an expat woman with residency in the UAE gives birth in or out of the UAE, the guardians of the baby must apply for a residence permit of the baby at the Immigration Department within four months of the baby’s birth.  If this is not done, the baby’s father or legal guardian must pay a fine of 25 AED a day until the residence permit is obtained.  Along with the application and application fee, one must submit a copy of both the passport of the mother and father as well as a copy of the baby’s birth certificate attested by the Ministry of Foreign Affairs.

* This information was taken From Al Tamimi brochure on Immigration Law.

How do I Transfer my Visa if I find a New Job in the UAE?

First of all, you do not need an NOC in three cases:

1.) If your salary has been delayed by more than two months.

2.) If you have a court judgment declaring arbitrary dismissal.

3.) If you have completed a three year work contract.

However, in all other instances, those who are already employed in the UAE may only seek new employment by transferring their visa from their current employer to their new employer or cancelling their current work visa and re-entering the country and going through the same process which was required to get their original work visa.

Conditions to transfer visas between employers in the UAE:

  1. The employee must have been employed with the original employer for at least one year.
  2. The previous employer must approve the new employment.
  3. The new employment must be in the same profession as the previous employment.
  4. The employee must hold a valid residency visa.
  5. The employee’s title must be from the categories for which visa transfer is permitted.
  6. The Ministry of Labor must approve the transfer.

The documents required for the transfer of visa application include the following:

  1. The application form.
  2. Copy of the labor card.
  3. Copy of the establishment card for both sponsors.
  4. Copy of the trade license of both sponsors.
  5. A copy of the employee’s passport and residency visa.
  6. A copy of the employee’s degree and or professional certificates attested by the Ministry of Foreign Affairs.
  7. The application fee.

Once the application is approved by the Ministry of Labor, the Ministry will issue three letters to the new employer.

  1. A letter listing all of the documents required to proceed with the transfer;
  2. A letter which is an undertaking from the previous sponsor that he paid the entire amount of the employee’s dues, signed by the employer;
  3. A letter containing the approval and payment codes.

Once the approval fee is paid and the above requirements are met, the new employer/employee can begin to apply for the labor card and visa.  The employee must secure the new residency visa within sixty days from the date the transfer was effected.

*This information was taken from Al Tamimi, Brochure on Immigration Law and Gulf News Ask the Law.

Immigration Requirements for New Businesses in the UAE

New businesses must open files at the Immigration Department and the Ministry of Labor and Social Affairs immediately upon receiving their trade license.  This must be done through the representatives of the business.

Registering the Representatives: Representative Cards

Each new business must register an employed representative and obtain a representative’s card at both the Immigration Department and the Ministry of Labor and Social Affairs to act on their behalf.  In order to apply for the representative card at both offices, one must submit an application form, typed and submitted through the Injaz program along with the following documents:

  1. Trade License Copy.
  2. Representative’s Passport Copy and Residency Visa.
  3. Two color passport size photographs of the Representative.
  4. Copy of the Establishment Card.
  5. Application fee.

Business Registration with the Immigration Authority: The Immigration Card

In order to open an immigration file, one must submit the application form, which must be typed and submitted through the Injaz program, stamped with the company stamp, and signed by the local partner or national agent.  The following documents must be attached to the application:

  1. Passport copies of the authorized signatories and the owners of the business.
  2. Original trade license plus one copy.
  3. Copy of telephone bill.
  4. Map of the business location.
  5. Application fee.

If the application is approved, the Immigration Department will issue an immigration card to the new business, renewable every three years.

Business Registration with the Ministry of Labor and Social Affairs: The Labor Card

New businesses must register with the Ministry of Labor and Social Affairs in order to obtain an Establishment Card and open a file.  The documents required for such registration include:

  1. Application form.
  2. Copy of trade license.
  3. Copy of all the partners’ passports.
  4. Copy of civil registration for local sponsor or partner.
  5. Copy of the business location map.
  6. Copy of the Articles of Association for the company.

When employing an individual, an employer must first obtain the approval of the Ministry of Labor and Social Affairs prior to applying for the individual’s visa.

*This information was taken from Al Tamimi, Brochure on Immigration Law.

Attachment and Sale of Real Property in the UAE

 

Civil Procedures Law, Federal Law No. 11 of 1992

Article 292:

1. The garnisher shall apply for attachment of real property to the judge of execution, supported by an executive deed and a copy of the notice thereof served on the execution debtor.  The application shall include the assignment required of him to fulfill the obligation in accordance with the provision of Article 239 and an official extract of the title deed of the execution debtor. 

The application shall include the following details:

  • The name of the applicant, his surname, his profession, his domicile, his place of work and his selected domicile in the court circuit where the execution shall be conducted, if he has no domicile or place of work therein.
  • The name of the execution debtor, his surname, his profession, his domicile and his place of work.
  • A description of the real property to be attached, showing the location, area, boundaries, or number and zone of the property and any other details required for its designation as per the official records maintained for this purpose.

2. The debtor shall apply, by a petition, for an order from the judge of execution authorizing the representative of the execution to enter the property to obtain the details necessary for its description and contents.  No grievance shall be permitted against this order.

Article 293:

  1. If the judge of execution considers that the application for attachment of the real property has satisfied its legal conditions, he shall accept the application for the attachment and orders the representative of execution to move on the following day at the latest to the registration office of real properties to enter the decision in the records.  This registration shall include the fixed date and hour.
  2. The Registration of the attachment order shall render the property attached.
  3. The representative of the execution shall obtain an official statement from the real property records, showing the creditors whose rights are registered as well as the domicile and place of work of each one.

 

Article 294:

  1. The representative of the execution, within seven days of the attachment, shall send the debtor, the garnisher and the real guarantor a transcript of the application for attachment after its entry in the register.
  2. Also at the fixed time, he shall send this minute to the creditors whose rights are listed as indicated in the preceding article.  As soon as such creditors are notified, they shall become parties in the proceedings as garnishers and upon the death of any one of them, the notice shall be served jointly on their heirs at the domicile shown in the record, if not more than six months have  passed since the death.

 

Article 295:

1. Before proceeding with the sale of real property by auction, the judge of execution shall order the debtor to discharge the debt within one month of the date of notification.  Otherwise, the property should be sold by bidding, the debtor shall apply within this period for adjournment of the sale, and the judge of execution shall accept the application in the following two cases:

  • If the income from the property in three years is sufficient for settlement of the debt, interests, fees, and expenses.  The judge of execution in this case shall authorize the creditor to act under his supervision in collecting the proceeds of the property until the full settlement of the debt; however, if an emergency occurs that prevents the collection by the creditor of his dues regularly, the judge of execution, at the request of the creditor, may continue the proceeding for sale of the property.
  • If the income from the property in three years is insufficient for discharge of the debt, interest, fees and expenses, and if the debtor has some other source of income which, in addition to the income  from the property, is sufficient for settlement of the debt by installments during this period, and if it appears to the judge of execution that the sale of the property inflicts heavy loss on the debtor, he shall stay the sale and order the discharge of the debt by installments within a period not exceeding the period referred to under such guarantees as the judge may consider appropriate; however, if the debtor fails to pay any of these installments, the judge of execution – at the request of the creditor – may proceed with the sale of the property. 

2. If the period of the notice referred to in the preceding paragraph has expired and the debtor has failed to pay or has not submitted an application for adjournment of the sale, of if this application has been rejected, the judge of execution shall fix a place and a day for the sale and  a period of auction.

3. Before the sale notice, the judge of execution shall appoint one or more experts to estimate the price of the property within a period exceeding thirty days from the date of assigning such a duty to him by the judge.

4. The record clerk shall inform the debtor and the possessor and the real guarantor of the place and day of sale, the period during which the bidding will be conducted, and the notice of the sale, thirty days at the most before the period fixed for the bidding, by publishing this information in two daily newspapers published in the country.  A copy of said notice shall be displayed in a prominent place of the property, and another one shall be affixed on the court’s notice board. 

Article 296:

  1. The notice of the sale shall include the following details:
    1. The name of other guarantor and the debtor as well as the possessor or the real guarantor, his surname, profession, domicile, and place of his work.
    2. A description of the property as stated in the attachment declaration.
    3. Terms of the sale, the basic price as fixed by the expert, as well as the expenses and the deposit which the prospective buyer will have to pay in advance and which shall not be less than 20% of the basic price.
    4. The name of the court before which the sale will be conducted as well as the day of bidding and the period during which the bidding will be conducted.
    5. The garnisher, the debtor, the possessor and the real guarantor and any interested party may obtain permission from the judge of execution publish other notices of sale in daily newspapers and other media due to the importance of the property or its nature or for other reasons.  However, the augmentation of publishing shall in no way delay the sale and no complaint may be made against the order of the judge to this effect.

 

Article 297:

  1. If the real property offered for sale is divisible, and part of this property – according to the estimation of the experts – is sufficient for settlement of the debt, its interest, fees and expenses, the judge of execution shall demarcate such a part and put it up for bidding, and shall exclude the other parts.  However, if the result of the bidding shows that the consideration offered to said part of the property is not sufficient for settlement, the judge of execution shall put up for bidding the rest of the property or any other additional part thereof which he considers sufficient for the settlement.   If the claim for entitlement is made against part of the property put up for public bidding, and if the court decides to stay the bidding, such  a decision shall not necessarily delay the bidding for the remaining parts unless the shares – in the opinion of the experts – are indivisible, in which case the bidding for the remaining shares shall be stayed.
  2. If the properties to be sold at auction are several, each property shall be put up for sale separately unless the judge of execution – after taking the opinion of the experts, finds that selling more than one property or all the properties together in one auction will serve the general interest.

 

Article 298:

Real property may only be sold to a UAE citizen, subject, however, to the rules for the transfer of real property.

Article 299:

  1. Disposal by the debtor, the possessor or the real guarantor of the property shall not be executed, nor any mortgage or lien accrued to it against the garnishers even though they are ordinary creditors.  However, such disposal shall be executed against the successful bidder if the disposal, the mortgage or the lien has been registered after registration of the attachment order.
  2. The fruits and the income of real property for the period following the registration of the attachment decision shall also be attached with the property and the income as well as the price of the fruits and crops shall be deposited with the treasury of the court. If the property is not leased, the execution debtor shall be considered to be the receiver until the sale is effected.  However, if the property is leased, the rental due for the period following the entry in the register of the application for attachment shall be considered garnished in the hands of the tenant once he has been assigned by the garnisher or any execution creditor holding an executive deed, not to pay the rent to the debtor.  However, if the tenant has paid the rent before such an assignment, payment by him of the rent shall be valid and the garnishee shall be accountable for the rent in his capacity as receiver.  If the tenancy contract has been registered before assigning the tenant to pay the debt, the contract shall remain effective against the garnishers and the creditors whose rights are listed before the registration.

 

Article 300:

  1. If the real property is encumbered with a lien in rem which has devolved to a possessor according to a contract registered before the attachment, the possessor shall be notified to pay the debt or to vacate the property before the attachment is applied for; otherwise, the execution shall be conducted against him.
  2. In addition to the general details contained in the notice and the option for payment or for vacation, the notification shall include the following:
    1. The execution deed.
    2. Assignment of the debtor to pay the debt according to Article 239.
    3. Description of the real property to be executed as shown in the official register maintained for that purpose.
    4. The aforesaid notification shall also be served upon the mortgager in cases where the execution is effected against a property mortgaged by a person other than the debtor.
    5. The service of the notice shall be in accordance with all the rules provided for in the previous article.

 

Article 301:

  1. The parties concerned must produce the grounds for invalidity of the notice provided for in Articles 294 and 295 by submitting an application to the judge of execution three days at least before the session fixed for the sale; otherwise, the right to produce them shall be extinguished.
  2. The aforesaid grounds of invalidity shall be disposed of by the judge of execution on the day fixed for the sale prior to the opening of public bidding and his judgment shall be unappealable in any way.  However, if he passes a judgment that the procedures for the service of notice are void, the sale shall be adjourned to a day to be fixed by him, and he shall order that these procedures be carried out all over again.
  3. However, if he dismisses the application for invalidity, an order will be issued by him to conduct the public auction immediately.
  4. The debtor, the possessor, the real guarantor and the creditors referred to in Article 293 must give other grounds for invalidity relating to the proceedings that precede the session of the sale, as well as the points of objection to the conditions of sale, ten days at least before the time such a session falls due.  Otherwise, the right to make such points shall be extinguished.  These shall be submitted in an application to the competent judge of execution at least three days before the session fixed for the sale and in accordance with the aforesaid application.  The judge of the execution shall decide whether the sale is to be stayed or continued based on the seriousness or non-seriousness of such grounds; however, if it is decided that the sale should be continued, an order will be given to open the public auction immediately.

 

Article 302:

Before the opening of bidding procedures, the creditor shall deposit an amount as estimated b the judge of execution to cover the costs and expenses incurred from the sale of the real property including the attorney fees.  This amount shall be deducted from the price of the property and refunded to the creditor.

Article 303:

  1. On the day fixed for the sale, the judge of execution shall carry out the procedures of bidding and the procedures may only be started after ascertaining that the judgment to be executed has become final.
  2. If one or more buyers have made bids in the first session of the sale, the judge of the execution, at the end of the period fixed for bidding, shall accept the highest bid, provided that it is not less than the basic price estimated by the experts including the expenses; however, if the offer is less than this or if no buyers have offered any bids in this session, the judge of the execution shall adjourn the sale to the following day at the same place and at the same period fixed for the bidding.  If no buyers in the second session have offered any bid at the basic price, the judge shall postpone the sale to the following day, and shall reduce the basic price by 5% and shall postpone the sale to a next session and so on, reducing the price by 5% each time.  When the total reduction reaches 25%, the sale shall be postponed for a period of three more months and the procedures for the service of the notice shall be started all over again, in which case the property shall be sold at the highest bid, whatever its value.

 

Article 304:

  1. Anyone whose offer is approved by the judge of execution shall, within the next ten days following the session of the sale, deposit the full amount approved including the expenses and once he has paid the price, the judge shall adjudicate the bid to him.
  2. However, if the winner of the bid has failed to pay the full price, the judge of execution shall offer the property to the next highest price bidder.  If he accepts, the judge will approve his offer and deposit the price within the period stipulated in paragraph 1.  If the second bidder has refused, the judge of execution shall reopen public bidding within fifteen days, subject to the same procedures, and then award the bid to the highest bidder.
  3. Any person who is not forbidden to take part in the bidding may offer a higher bid within a period of ten days following the award of the bid, provided that said increase not be less than one tenth of the price.  In this case, the bidder shall deposit the full price offered by him, including the expenses, with the court’s treasury, and the public bidding shall be reopened within seven days.  But if no one has offered a higher bid, the judge shall award the bid to him.
  4. The defaulting bidder shall be charged with any decrease in price of the property, and the judgment to award the auction, shall include an obligation by the defaulting bidder for the differential price if any and shall not be entitled for the increase, which shall space to the debtor or the possessor or the real guarantor, as the case may be.
  5. In all cases, the supply of a guarantee from any of the approved banks in the state, or the supply of a certified cheque shall serve as replacement for the deposit; however, if the obligor for the deposit is a creditor and the amount of his debt and priority justify his exemption from the deposit, the judge shall exempt him from the depositing of the price and the expenses in all or in part, which he is obliged to deposit by law.
  6. In no case, may the conditions of the sale contain anything in breach of that.
  7. If the process of sale and registration has not been completed within a period of thirty days from the date of the award of the auction, for a reason beyond the buyer, the control of the buyer shall be entitled to revoke the bidding and recover the consideration paid by him and if this demand has been accepted, the judge of the execution shall reopen the bidding.
  8. At any time prior to the completion of the transfer of the title and registration of the property in favor of the buyer according to the bidding, the debtor may pay off the debt, the interest, fees, and the expenses and sell the property with the consent of the judge of the execution and under his control, at a price higher than that offered by the bidder in settlement of the debt.

 

Article 305:

If the bidding has been delayed for legal excuses, or for failure by the creditor to follow it up, the bidding should be reopened for a period of fifteen days, but if it is abandoned for a period of six months or more, the bidding shall be started all over again and the previous grace period shall be cancelled.

Article 306:

  1. The adjudication of the auction shall be issued in the manner of judgment and shall be include the text of the application for attachment of the property and a summary of the procedures followed in respect thereof in the service of the notice for the sale and the text of the record of the session of the sale.  Its decree shall include the order given to the debtor, the possessor, or the real guarantor to hand over the property to the successful bidder.  A copy of the original judgment should be deposited in the case file on the day after it is issued.
  2. The judgment shall not be sent out but shall be carried into execution by obliging the debtor, the possessor, the real guarantor or the receiver, as the case may be, to appear at the place of delivery on the day and at the hour fixed for the proceedings; however, a notice thereof shall be served at least, two days before the day designated for delivery.
  3. If the property involves moveables belonging to someone other than the execution debtor, the person applying for the execution must petition the judge of the execution to take the necessary measures to safeguard the interests of the persons concerned.  Whenever necessary, the judge shall hear the statements of the parties concerned before issuing his order.

 

Article 307:

  1. The adjudication of the auction may not be appealed except for a defect in the bidding procedures or in the form of the judgment, or if it is issued without staying the procedures when a stay is legally imperative.
  2. The appeal shall be submitted according to the usual procedure within seven days of the date on which the judgment is pronounced.

 

Article 308:

  1. At the request of the parties concerned, the judge of the execution shall demand that the department of real estate registration register the judgment awarding the auction, after the bidder to whom the judgment awarded the auction has deposited the full price, unless he is exempted from the deposit.  The rules prescribed for the registration of real property shall be applied in the registration of the judgment.
  2. It follows from this registration that the sold property should be cleared of any liens, security, or possessive mortgages of which their owners have been notified according to Article 293 and only their right to the price shall remain.

 

Article 309:

  1.  The third party may sue for the invalidity of the execution procedures and for the entitlement of the garnished property or any part thereof by submitting a lawsuit according to usual procedures before the competent court in which the creditor garnisher the creditors referred to under Article 293, the debtor, the possessor or the real guarantor shall become parties to the litigation.  In its first session, the court shall decide that the sale procedures should be stayed if the plaint includes a precise description of the evidences of ownership or the facts of the possession on which the lawsuit has been based, and supporting documents shall be attached thereto.
  2. If the day fixed for the sale arrives before the stay has been decided by the court, the plaintiff shall ask the judge of execution to stop the sale, provided that a true copy of the plaint delivered is deposited in the execution file.
  3. Judgments issued in accordance with the preceding two clauses to stop the sale or to proceed with it may not be challenged in any way. 

 

Article 310:

  1. If the action for entitlement involves only part of the attached properties, the sale of the remaining parts shall not be stopped.
  2. Nonetheless, the judge of execution order – at the request of the interested party – that the sale of the properties be stopped if warranted by convincing reasons. 

 

Article 311:

If the sold becomes due, the successful bidder shall have recourse for the price and damages, if any, to the creditors or to the debtors, and the conditions of sale may not imply exemption from refund of the price.

Article 312:

The debtor, the members of the judiciary, the public prosecutors, the representatives of the execution or the clerks of the court and of the public prosecution or the attorneys acting on behalf of the debtor may not offer bids by themselves or through others; otherwise the sale shall be void.

UAE Laws and Islamic Finance

Laws of the UAE and Islamic Finance