Buying Singapore Public Housing At Subsidy – Understanding The Government Cpf Rules.

Central Provident Fund (CPF) was started on 1 July 1995 and is administered by CPF Board. It is a compulsory comprehensive social security network which aims to provide working Singapore Citizen (SC) and Singapore Permanent Resident (SPR) with sense of security and confidence in their old age. Your monies in the CPF’s can be used to fund the purchase of Singapore Public Housing – by Housing Development Board (HDB) resale flat in the open market. To buy HDB resale flat at subsidy, you can apply for CPF Housing Grant for the resale flat purchase, if you meet the criteria set by HDB resale and CPF rulings.

Generally you are not eligible for CPF Housing Grant Scheme in cases where you have previously enjoyed a housing subsidy from HDB, or you and all co-applicants are undischarged bankrupts, or own any of the private residential property (including HUDC flat, Executive Condominium), houses, building, land and commercial property in both local or overseas, or have not disposed of these properties within 30 months prior to the application, or if you are buying a 1-room flat or a resale flat of any flat type that has been announced for redevelopment under the Selective Enbloc Redevelopment Scheme.

If you are cleared by the prerequisites, you are entitled to apply one of the CPF Housing Grant Scheme, and later upgrade to another scheme if further qualified for higher grant. The catch is, you need to commit 5 years of minimum occupation period before you are eligible to sell your resale flat in the open market. Also you will be required to pay a resale levy should you choose to purchase another flat directly from HDB. The amount of resale levy is ranged from $15,000 for 2-room flat to the highest of $50,000 for Executive flat.

There are 7 CPF Housing Grant Schemes targeting to different eligible buyers. Family Grant Scheme is cater for married couples who are first-timer applicants. You must be Singapore Citizen (SC), at least 21 years old, must include at least one listed occupant who is SC or Singapore Permanent Resident (SPR), and form a family nucleus such as your spouse and children (if any), or your parents and siblings, or your children under your legal custody (if widowed or divorced). The average monthly household income ceiling must not exceed $8,000. Under this scheme, SC with SC household shall entitle CPF subsidy of $30,000 while SC with SPR household shall entitle $20,000.

Higher-Tier Family Grant Scheme is targeting the same recipients as mentioned above, but choose to buy a resale flat near their parents’/married child’s house, where parents are staying with you in the resale flat, or your parents and married child are the owner-occupant of property in the same town or within 2 km. SC with SC household shall entitle more CPF subsidy of $40,000 while SC with SPR household shall entitle $30,000.

The CPF grants are flexible for upgrade with the changing household profile. For instance, when your SPR family member eventually takes up SC or when you have a SC child, you can enjoy the full housing subsidy by applying for the CPF Top Up Grant to Family Grant. This Top Up Grant is also targeting to Singles SC who subsequently get married. They can apply for the Top-Up Grant for their existing flat or when they buy another resale flat, if their eligibilities matched.

If your average monthly household income ceiling over the last 1 year is $5,000 and below, you can also apply for the Additional CPF Housing Grant (AHG) Scheme in addition to the eligible Family Grant, Higher-Tier Family Grant, or CPF Top-up Grant. The AHG is meant to give extra financial assistance to people in lower-income brackets. The amount of AHG you will be eligible for is graded based on income ceiling. For examples, if your income ceiling is $1,500 or below, you’ll entitle the AHG of $40,000. The AHG reduce to $5,000 for income ceiling fall between $4,500 and $5,000,

Government has comprehensive schemes to assist SC who are Singles, also known as unmarried or divorcees. To qualify for the Single Grant Scheme, you must be at least 35 years old who are buying the resale flat to live on your own. Alternatively you can also apply with another Singles jointly up to maximum 4 applicants. Your income ceiling must be $3,000 and below if buying a 5-room or smaller resale flat. If you are living on your own, you can get $11,000 CPF subsidy. In joint applicants the subsidy will be $22,000. Singles who choose to live with their parents are eligible for the Higher-Tier Single Grant Scheme, which entitle you $20,000 CPF subsidy.

If you are a first-timer SC who marries a second time and if your spouse has previously enjoyed a housing subsidy, you can apply for the Half Housing Grant Scheme, which entitle you CPF subsidy of $15,000. If you are buying a resale flat near parents/married child like in the Higher-Tier Family Grant, the CPF subsidy will increase to $20,000.

In summary, CPF Housing Grant money can be used to offset the purchase price of the HDB resale flat from the open market, thereby reducing the housing loan amount a buyer needs to secure. You may consult reliable realtor for further advice on your eligibility to apply for CPF housing grant. A professional property agent should furnish you the latest Government, HDB and CPF rulings and transparent information such as recent transaction and current market trend to help you be well informed so that you can buy a HDB resale flat safely and at fair or subsidized price.

Hgtv 2012 Green Home At Serenbe, Georgia

HGTV has chosen to build their 2012 Green Home in the Serenbe community, located just 30 miles southwest of Atlanta. Serenbe is a sustainable development in the rural community of Chattahoochee Hill Country. The HGTV Green Home fits right in with the building standards of Serenbe, where all homes are EarthCraft Certified. The community preserves 70% of its green space, and the buildings have a minimal impact on the surroundings.

The HGTV Green Home resembles a farmhouse, with a modern floor plan and eco-friendly features. The home has 3 bedrooms and 2 baths in 2,300 square feet. The contemporary kitchen has custom hickory wood cabinetry, stainless steel appliances, and a dual fuel range. The countertops are a terrazzo blend material which includes recycled glass. The main level master suite has its own private outdoor courtyard. The upstairs kids bedroom has a unique loft area for playing games and watching TV. The homes layout encourages outdoor living. The Georgia Room functions as an indoor/outdoor space with two walls of sliding French doors that open to the outdoor decks. The primary outdoor space at the Green Home is a large barbecue deck off the kitchen, complete with a built in barbecue and an outdoor eating area. There is also a courtyard off the living room, and a covered seating area off the detached garage.

The Serenbe community is designed with villages or hamlets, each one having residential and commercial property. The villages are connected by roads and walking trails. The entire community is pedestrian friendly, and green space protects the wetlands and watershed areas. Businesses located within the Serenbe community include restaurants, galleries, shops, a medspa, and a market. A 30 acre certified organic and biodynamic farm provides fresh produce for the Saturday market, which is held from May through October. Tours of the farm can be arranged. Serenbes amenities include an inn and conference center, an outdoor amphitheater, and a playhouse which offers three summer productions. A stable arranges guided trail rides, and bikes and golf carts may be rented.

The public may tour the HGTV Green Home from May 4 through June 24, 2012. Tours are given Tuesday-Sunday from 11am-7pm. The home is closed on Mondays. The tours last approximately 30 minutes, and ticket prices are $20. Proceeds from the tours support The Serenbe Institute and The Chattahoochee Hills Charter School. People may enter twice a day for a chance to win this fully furnished HGTV Green Home. Entries may be done online at HGTV.com and HGTVRemodels.com through June 1, 2012.

Residential and Commercial Property for Rent in Bangalore

Are you relocating to the Bangalore city and trying to find residential and commercial properties for rent? That’s good news because Bangalore is a wonderful city covered with plenty of green, has a great climate and offers a great diversity. Well, you can definitely manage to get a residential property for rent within your budget limits in Bangalore. The rental charges vary depending upon the locality where you want to rent a residential property, like in any other city.

But, there is only one hitch in taking a residential property for rent in bangalore. That is we must pay an advance rent of 10 months as a refundable deposit that carries no interest. It’s not really like that in the other cities like Hyderabad etc. This rule would be a minimal requirement when you want to find a commercial property for rent in bangalore . The rental agreement on a stamp paper agreed and signed by both the parties, is must even when renting a residential property and no need to mention when you rent a commercial property.

The rental charges for commercial properties mostly depend on the type of business activity rather than just the area of the property to be rented out. The other charges for water supply and maintenance are additional for both residential and commercial properties. The property owners usually get the initial rental agreement done for a minimum period of 1 year in both the cases.

You can find all kinds of office or residential space like high rise apartments, multistoried buildings or even individual houses in almost all the areas of Bangalore. There are plenty of ad magazines and online websites which publish the details of property listings directly given by the owners. So, you can easily manage to find a suitable residential or commercial property on your own saving that extra cost of engaging any individual middlemen. Happy renting!

Landscaping Advice To Create A Sellable Commercial Property

There are a few things to consider when you are looking for landscaping elements for a commercial property. The first thing to consider is how much maintenance you care to undertake and who will be doing it? The next thing to consider is whether you can take advantage of energy or water saving strategies.

If you have a lot of grass, you are probably going to need a landscaping company to keep up with the mowing on a commercial property, since your business will be affected by the appearance of overgrown grass. A mowing service will have a set schedule they will adhere to so you don’t have to worry. Weed eating and edging are important on commercial landscaping, so you will want to be sure that is included in your monthly fee.

When it comes to trees and shrubs, consider evergreens, which won’t shed leaves that have to be raked, blown, and disposed of. Consider the different shapes that you can get and form a basis of evergreens for color year round. A couple of topiary evergreens in large pots by the front door are quite attractive. No matter what climate you are in, evergreens are drought and cold hardy, compared to other plants.

Consider hardscaping options like rock or mulch for low maintenance beds. Perennial flowers and shrubs can be a great way to make flowerbeds that require little in the way of annual plantings, unless you want to add extra colors around borders, for example. When you are planting commercial flowerbeds, you have to consider the maintenance and upkeep.

If you have beds that are only for annuals, you will need to plant them every year, keep them watered, and have somebody pull weeds. For this reason, many commercial establishments are considering beds with river rock mulch, fountains, perennial, drought hardy plants, or desert-type landscaping. You can add boulders, driftwood or interesting water features like ponds or waterfalls that are simple to maintain, once they have been installed.

The newest thing in commercial landscaping is environmentally friendly plans that save water and use native plants, which are hardier to the natural growing conditions. Evergreens can be used as windbreaks on the north and east, while deciduous shade trees can be used on the south and west to cut energy bills for heating and cooling. Desert landscaping or hardscaping can save water and planting beds with plants that don’t need frequent watering is becoming more economical. In fact, that is the reason many commercial landscaping plans call for structures like gazebos, trellises or boulders to add interest.

Greenscaping is becoming popular by using these methods. Incorporating native flowering plants, shrubs and evergreens or cactus add a local touch of natural landscaping, yet are easy to maintain and environmentally friendly. When it comes to grassy areas, consider drought hardy grasses that can handle extreme temperatures like ryegrass or fescue. Making your commercial landscaping easy to maintain will save money and greenscaping saves water. You can have an interesting commercial landscape that features structures, fencing, boulders, evergreens and perennial flowering bushes that require little or no maintenance and will stay that way for many years to come with a little trimming or touch-up.

Commercial Property Investment Values Remain Stable

Investing in real estate has generally been considered as a relatively safe and profitable venture. Over the past few years however, the housing market has proven it is not immune to volatile ups and downs nor it has been safe from speculators and scheming fraudsters. Fortunately, during the same time, commercial properties have largely escaped the chaos and ruin that the residential market has experienced.

In fact, a recent study by Deloitte Consulting LLP, a subsidiary of the financial accounting firm Deloitte & Touche USA LLP, found many reasons to believe that commercial values are fairly consistent, making them a great real estate investment choice.

-In prior boom cycles, commercial real estate has responded by overbuilding. The industry has clearly learned its lesson because this time commercial real estate is enduring a credit crunch – not a crisis – partially because it resisted this urge. No doubt, the industry is in a strong position to withstand a recession, should one occur, and commercial real estate remains a viable investment option for those seeking to diversify and insulate their portfolios from market volatility,- said Dennis Yeskey of Deloitte’s real estate capital markets practice, as quoted in a press release on the company’s website. -Capital flow will return in 2008, with the exception of highly leveraged deals, and new opportunities are being sought in distressed debt funds, niche opportunities, and global markets.-

The -Real Estate Capital Markets Top Ten Issues – 2008- study found that although profits have been skimmed as the residential market has failed, commercial property investment values have held steady in many places, and have seen modest growth in others.

Plus, the surveys detailed, because of the shakeup in the housing market, mortgage underwriting rules that were also becoming too loose in the business world are now being examined and revised. The result is that investment loans will be safer, with less risk of fraud.

Another finding is that investment values have been strong in the office and industrial segment of this market, making them a much better investment at this time than retail properties or multi-family dwellings.

Additionally, funding for commercial property investment is much more readily available today than it is for residential real estate purchases. Of course, large down payments are still required as well as well-documented sources of income and assets, but the study found that lenders approve conservative commercial property investment loans quite often.

While some shifting of prices and expectations still need to take place, the study concluded that commercial market values have shown good stability and potential for pretty profits.

Going forward the study said, -Investors would do well to stop comparing CRE (commercial real estate) returns to the previous few years’ performance, and to take a closer look at how these returns fit into the bigger picture. Returns will probably be lower, but when compared to other investment categories (stocks, bonds, etc.), CRE remains an attractive investment vehicle due to its stability and opportunity for diversification.-

The Commercial property investment potential and analysis from KISCL will help you to get the complete resources and analysis on real estate and its dealings. Learn more on real estate, right here. Visit http://www.kiscl.com for more information.

Professional Skip Hire Iver service

Everyone knows just how important it is that one be efficient about storing and disposing of their garbage. This process is just as important in maintaining residential as well as commercial cleanliness and a general state of well being. Proper garbage disposal is extremely important in maintaining a healthy environment.

People have different manners of disposing of their garbage. Some choose the hard way, while others prefer getting a Skip Hire Iver. This type of service can help you maintain a proper level of cleanliness on a residential, as well as commercial property. While on the subject, you might also be interested in Site Clearance Iver services. These services can help you properly get rid of garbage, waste, as well as other large materials that might stand in the way of your activity. In other words, this particular service can get your site ready for whatever activity you want to start.

People use Skip Hire Iver services for different reasons. Some people care about the environment and do their best to maintain it garbage free, while others simply need a practical solution for their residential garbage disposal. By properly disposing of your garbage you will practically decrease the threat of getting ill or having your property contaminated in any way, but you`ll also be making sure that you`ve put your two cents into maintaining a cleaner, implicitly safer planet. Skip Hire Iver services can be of great help with disposing of your waste and making sure you provide your family or employees with a perfectly safe waste disposal service that will ensure an environmental-friendly space to leave and work. Skip Hire Iver services are extremely adaptable.

They can work wonders with small amounts of waste, but they can also do a great job in disposing of significant amounts of garbage. Skip Hire Iver services will guarantee eco-friendly services that are strictly followed with each and every occasion. Employees are very thorough in taking each and every step as to provide the same quality service with each job. Once you hire this type of service, you no longer have to worry about safely disposing of your garbage, as you`ll have professionals taking care of everything in an environmental manner. Make sure you contribute to making the planet a better place, by hiring professional garbage disposal services. If you have an increased appreciation for this type of services, you`ll probably also be interested in the benefits of Site Clearance Iver. Site Clearance Iver services can be extremely useful, especially when you need to get a property ready for a big event. You might want to start conducting an activity, but feel like the property needs clearing. Also, you might be interested in selling a property, but feel like certain waste can ruin your chances. Whatever your reasons for wanting a property cleaned, Site Clearance Iver services can be extremely useful. Site Clearance Iver can help you dispose of different types of waste, and get your property ready for whatever you are trying to initiate. Whether you believe you can help with making the planet a safer place, or you simply need to have a property cleaned, you`ll want to read all about Skip Hire Iver and Site Clearance Iver services.

Becoming A Self-employed Entrepreneur The Netherlands

Registration in the Dutch trade register is compulsory for every company and every legal entity, including ‘freelance’ and ‘zzp’ (‘zelfstandige zonder personeel’ or self-employed without staff).

When you have decided to start your own business a new world is opening up, with a wide variety of possibilities. You could open a shop or start your own consultancy firm; become a full-time or a part-time entrepreneur. Clients may wish to hire you for advice or construction work.
Before plucking up which is planted, there is a time to plant. In other words: you will have to be prepared to tackle challenges as well – either as a provider of services or products, as a self-employed entrepreneur, a sole trader, an independent contractor, or as a freelancer or so-called “ZZP-er”.

The risky side of freedom and independence

Whether you offer services or products: you will do so at your own risk, expense and with full responsibility towards third parties. As well as this, being self-employed entails certain obligations, such as paying taxes and VAT and keeping records of your business activities. Preparing well is the best way to start. You are definitely not on your own; the Dutch business world offers plenty of competent assistance.

Starting point

Before you visit the Chamber of Commerce to register your enterprise, you should have considered the following:

* a permit to start a business in the Netherlands
* a business plan
* legal form and trade name of your enterprise
* taxation and necessary insurance
* business location, commercial lease
* a VAR’-statement from the Tax Administration, declaring you as a self-employed entrepreneur

Starting your own business

If you do not have the Dutch nationality, and want to start a business in the Netherlands, you will have to comply with particular IND (Immigratie en Naturalisatie Dienst, the Dutch immigration authorities) formalities. Even if you are not obliged to register with the IND (for almost all EU nationals) please do so all the same, as it may come in quite handy for other purposes.

The Dutch Chambers of Commerce are incorporated under public law and, as such, target their services at Dutch businesses across all sectors.

Dutch immigration authorities

The legal form of your enterprise makes no difference to the applicability of the rules by the Dutch immigration authorities: whether it is a one-man business, a Dutch private limited (BV), or a branch-office of a foreign company. The rules do not differ either whether you start an enterprise shortly after arriving in the Netherlands, or after having been employed in the Netherlands for some time. However, rules and formalities do differ broadly speaking for EU nationals and non-EU nationals. Please check also the IND Residence Wizard

EU, EEA and Swiss nationals

Nationals of one of the EU Member States, the EEA (European Economic Area), or a Swiss citizen, are free to live and work on a self-employed basis in the Netherlands and do not need an entry visa or a residence permit.

Even if you are not obliged to register with the IND, do so all the same, as it may come in handy in the future. For instance, when asked for proof of registration on taking out Dutch public healthcare insurance, a healthcare, housing or childcare allowance, a mortgage, or a phone subscription. Registration is free of charge. If you intend to stay over four months, you are always required to register at your local municipality. The expatdesk will help you out here.

Working on a self-employed basis when a EU, EEA and Swiss national

There are no specific IND formalities that have to be fulfilled for nationals of these states.

Different rules apply for citizens of Bulgaria or Romania as long as restrictions on the Dutch labour market remain in force. Nationals of these countries are advised to apply for a residence permit, which will be useful in a number of situations. The procedure is called “Application for assessment under the EU community law (proof of lawful residence)”.

Nationals of non-EU and non-EEA countries

If you are not a national of an EU or EEA country and not Swiss, you will need to apply for a residence permit in case you stay longer than three months in the Netherlands. A residence permit can be obtained from the IND.

If you are a national of a country subject to the Dutch visa requirement for more than three months’ stay, you will have to apply for a special visa: a provisional residence permit, an MVV (Machtiging Voorlopig Verblijf).

Working on a self-employed basis as national of non-EU / non-EEA country and non-Swiss
In this case you will have to meet several economic criteria before starting an enterprise in the Netherlands:

* You are qualified to run the business in question.
* You have a business plan.
* Your business serves an essential Dutch interest, i.e. “added value” for the Netherlands.

The IND does not weigh these criteria itself; the Ministry of Economic Affairs is requested to review your situation and to decide whether the business you intend to run will be economically interesting. If this turns out not to be the case, you cannot start your own business in the Netherlands.

Review of economic added value

* a permit to start a business in the Netherlands
* a business plan
* legal form and trade name of your enterprise
* taxation and necessary insurance
* business location, commercial lease
* a VAR’-statement from the Tax Administration, declaring you as a self-employed entrepreneur

Starting your own business

If you do not have the Dutch nationality, and want to start a business in the Netherlands, you will have to comply with particular IND (Immigratie en Naturalisatie Dienst, the Dutch immigration authorities) formalities. Even if you are not obliged to register with the IND (for almost all EU nationals) please do so all the same, as it may come in quite handy for other purposes.

The Dutch Chambers of Commerce are incorporated under public law and, as such, target their services at Dutch businesses across all sectors.

Dutch immigration authorities

The legal form of your enterprise makes no difference to the applicability of the rules by the Dutch immigration authorities: whether it is a one-man business, a Dutch private limited (BV), or a branch-office of a foreign company. The rules do not differ either whether you start an enterprise shortly after arriving in the Netherlands, or after having been employed in the Netherlands for some time. However, rules and formalities do differ broadly speaking for EU nationals and non-EU nationals. Please check also the IND Residence Wizard

EU, EEA and Swiss nationals

Nationals of one of the EU Member States, the EEA (European Economic Area), or a Swiss citizen, are free to live and work on a self-employed basis in the Netherlands and do not need an entry visa or a residence permit.

Even if you are not obliged to register with the IND, do so all the same, as it may come in handy in the future. For instance, when asked for proof of registration on taking out Dutch public healthcare insurance, a healthcare, housing or childcare allowance, a mortgage, or a phone subscription. Registration is free of charge. If you intend to stay over four months, you are always required to register at your local municipality. The expatdesk will help you out here.

Working on a self-employed basis when a EU, EEA and Swiss national

There are no specific IND formalities that have to be fulfilled for nationals of these states.

Different rules apply for citizens of Bulgaria or Romania as long as restrictions on the Dutch labour market remain in force. Nationals of these countries are advised to apply for a residence permit, which will be useful in a number of situations. The procedure is called “Application for assessment under the EU community law (proof of lawful residence)”.

Nationals of non-EU and non-EEA countries

If you are not a national of an EU or EEA country and not Swiss, you will need to apply for a residence permit in case you stay longer than three months in the Netherlands. A residence permit can be obtained from the IND.

If you are a national of a country subject to the Dutch visa requirement for more than three months’ stay, you will have to apply for a special visa: a provisional residence permit, an MVV (Machtiging Voorlopig Verblijf).

Working on a self-employed basis as national of non-EU / non-EEA country and non-Swiss
In this case you will have to meet several economic criteria before starting an enterprise in the Netherlands:

* You are qualified to run the business in question.
* You have a business plan.
* Your business serves an essential Dutch interest, i.e. “added value” for the Netherlands.

The IND does not weigh these criteria itself; the Ministry of Economic Affairs is requested to review your situation and to decide whether the business you intend to run will be economically interesting. If this turns out not to be the case, you cannot start your own business in the Netherlands.

Review of economic added value
The Ministry of Economic Affairs awards points for each criterion. You will need a minimum of 30 points for each criterion (total number for all criteria: 300).

The scoring system consists of three parts:

a) Personal experience (education, experience as a self-employed person, working experience);
b) Business plan (market analysis, product/service, price, organisation, financing);
c) Material economic purpose for the Netherlands (innovative, job creation, investments).

You should always contact the IND to find out about the procedure involved in testing the economic interest of the enterprise you intend to start. For nationals of some countries, for example Turkey, special rules apply on the basis of treaties between the EU and these countries. And when you are from the United States of America, it is important to know there is the so-called Nederland-Amerikaans’ vriendschapsverdrag’.

Taking your business from abroad

The Dutch comparative companies Act recognises all foreign legal entities except businesses owned by one man or one woman. If you run a one-person business in your country of origin and you can prove this, for example by submitting a copy of registration in a commercial register in that country, you can bring this enterprise to the Netherlands and have it registered at the Chamber of Commerce as a Dutch one-man or -woman business.

Other legal foreign entities or foreign business forms are simply registered as a foreign legal entity with commercial activities.

Please note that you will still have to comply with the IND residency rules

Starting a branch office in the Netherlands

There is a question of a branch when long-lasting business operations, which form part of the foreign enterprise, are (being) conducted in the Netherlands. A branch can be: a sales office or a production company, but also a representative office. It does not have an independent legal form, but is a part of the foreign enterprise.

Dutch law recognises foreign legal entities. In other words: the foreign legal entity wishing to start activities in the Netherlands needs not be converted into a Dutch legal form.

A business plan is essential

No matter small or big the business is, a business plan will help you identify areas of strengths and weaknesses.

Banks require a business plan when you take out a loan. Even if you do not need the latter, and financing your enterprise is not a problem, a business plan will definitely help you understand the impact of starting a business. Submitting a business plan is also one of the criteria set for non-EU and non-EEA nationals to be allowed to start their own enterprise in the Netherlands.

Get started: Write the plan yourself

Crucial questions you should ask are:

* Which legal form will best suit the enterprise?
* Which products or services will you offer?
* Who will be your clients?
* Promotional activities to get contracts?
* How to optimize visibility to your target group?
* Which prices and fees?
* Financial plan (available budgets, expected turnover, investments)?
* Which insurances do you need?
* Permits and/or licences required?
* Administrational organisation, which form?
* What should be included in your General Terms and Conditions if applicable?

Formats

Business plan formats can be obtained from various private parties that specialise in supporting starters. Just surf the internet. Small business planner at http://www.sba.gov/ is a useful site.

Employment law issue: employed or self-employed?

If you go freelance, you should pay extra attention to your situation, because the term ‘freelancer’ is not a definition recognized by law. Freelancers operate somewhere in between being self-employed and being in paid employment.

As an independent entrepreneur you pay taxes and contributions yourself, and you are not entitled to rights employers are: minimum wage, paid holidays, a holiday allowance, statutory safeguards against dismissal and a statutory notice period.

In order to designate the employment relationship while starting your business, it is important to consider different contracts and apply for a Verklaring Arbeidsrelatie (VAR) at the Tax Administration.

Employment on the basis of a contract and implied employment

Regardless of the title chosen for the contract with your client, it is considered an employment contract if the following criteria are met:

* your remuneration for the work performed can be seen as wages;
* there is an obligation to do the work yourself: you cannot send someone else to do the job for you. Having to be available for specific work, e.g. on-call service, will also be considered as work performed in employment;
* a relationship of authority: the employer can determine where, when and how the work should be carried out. This relation also exists if the work you do is an essential element in the employer’s business operations or if the employer’s profitability is at risk without you.

If the working relation does not show all characteristics of a “proper” employment relation, it may still be seen as one. This is called a notional employment relationship: although the employment relation has not been established explicitly, there is an implicit employer-employee relation. Consequently, the fee you charge is seen as wage, so, the employer will have to deduct taxes from your wages and pay national insurance and employee insurance contributions.

A notional employment relation exists if:

* you work for a client project for at least at two days a week;
* you earn more than 40% of the minimum wages for the project a week;
* the relation with the client lasts more than 30 days; a new contract within one month after the termination of the first contract is seen as continuation of the previous contract.

A notional employment does not exist if actual and practical independence can be proven, for which a VAR can be instrumental.

Commercial contracts

As a self-employed entrepreneur you or your client can initiate to formalise the contractor-client relation by entering into a commercial contract. Parties should always insist on putting down the arrangements agreed upon.
There are two types of commercial contracts:
1. Service agreement – Under this type of contract you are obliged to perform to the best of your ability, committing yourself to do your client’s work without being employed by him. The work is usually classified as services’.
2. Contractor agreement – Under this type of contract you have a specific target obligation. You commit yourself to produce a concrete, tangible object at a certain price.

Criteria for legal independence: Actual circumstances are decisive here. An official statement signed by client and yourself that the contract is a commercial one is helpful proof. Criteria are:

* the degree of independence and absence of supervision/authority;
* permanence;
* pursuit of profit;
* clientele.

Not just these criteria, but their interconnection especially plays a decisive role.

De Verklaring Arbeidsrelatie (VAR)

In order to designate the employment relationship you can apply for a Verklaring Arbeidsrelatie (VAR) at the Tax Administration. The VAR is an official statement. Based upon the applicant’s information the Tax Administration will define income as:

* Income earned in employment: the freelancer will have a VAR income.
* Income earned from other proceedings: the freelancer will have a VAR-row.
* Profit from enterprise: the freelancer will have a VAR-wuo.
* Partnership’s own risk and account: the freelancer will have a VAR-dga.

VAR-income and -row: employed or not?

With a view to the VAR-income and row, the employer will have to define and check whether he should pay income tax and employees insurance premiums, based upon the existence of an employment contract or otherwise. Explanatory assistance but no definite answer! – can be found at the website of the Ministry of Finance. The Tax Administration may conclude differently.

VAR-wuo and dga: certainty in advance

Only VAR-wuo or -dga supply the employer beforehand with complete financial certainty provided he meets the following conditions:

* The freelancer’s activities should be similar to the VAR’s description. So, the freelancer is not entitled to carry out IT work if the VAR denotes carpentry.
* The freelancer is on the job during the validity of the VAR (1 calendar year).
* The VAR should be the authentic original.
* The employer should determine the freelancer’s identity on the basis of a valid proof of identity (not driver’s licence). Copies of the VAR and proof of identity should be kept in the administration for seven years.

Having acted this way, the employer has a solid defence in case the Tax Administration or UWV may reach another verdict afterwards. So, it may be wise for both freelancers and employers to object against a VAR-income or -row.

VAR application

Bearing in mind the utmost importance of the VAR-outcome, it is obviously important to carefully fill out the VAR-form. Only the freelancer him/herself is allowed to apply for a Verklaring Arbeidsrelatie (VAR); the employer is not entitled to do this. A directeur-groot aandeelhouder (DGA) should apply for a VAR in case of external consultancy.

The Tax Administration provides a digital VAR application form; to which you will get a reply within 8 weeks. If additional information is needed, the Tax Administration will contact the applicant.

Please note the following when filling out the form: The Tax Administration considers request as a total, coherently, and takes the activities into account. If not all answers are favourable it does not necessarily mean that no VAR-wuo will be given. For example: an interim manager with two or more employers can still be entitled to a VAR-wuo.

The freelancer should write down reasonable expectations. If, however, the actual situation afterwards turns out to have been differently, this will not have any consequences as long as the deviation is within normal risk of enterprise limits. For example, the freelancer expected to have 3 or more employers, but due to a recession this turned out differently.

The freelancer has to fill out the form to the best of his knowledge and should not deliberately misrepresent the state of affairs. If this should afterwards be proven to have been the case, the Tax Administration will recover the indebted taxes and premiums from the freelancer.

Some of the questions need a yes’ or no’ only; choose the nearest suitable.

Relation employer/former employer

As a part-time independent entrepreneur / part-time employee you could get involved in a conflict of interest with your (former) employer. If you intend to provide services, comparable to the ones he provides, you better ask his permission/advice to run your own business.

Starting a business as a full-time independent entrepreneur you should be aware of a possible conflict of interests as well. You probably signed a non-competition clause within your employment contract that remains valid after termination of employment. In any case it is wise to contact/consult your (former) employer of your intentions.

Legal forms and registration of an enterprise

The Chambers of Commerce can answer your questions about the legal environment of your business. Seminars and other regular services are available.

The majority of starting entrepreneurs either choose a one-man business or a general partnership as the legal form for their business, according to their preference on doing business by themselves or in cooperation with others.

In order to accommodate the starting entrepreneur or professional, Dutch law recognizes various legal forms, such as a one-man business, a private limited company (BV), a partnership or a limited partnership. The main issues at stake are the matter of liability if your enterprise should run up debts, and which tax regime applies.

One-person business

One-person business (lit. one-man in Dutch: eenmanzak) is also referred to as sole trader or sole proprietorship or independent contractor.

If you start a one-person business you will be the fully independent founder and owner. More than one person may work in a one-person business, but there can only be one owner. A one-person business can also employ personnel.

Setting up

You can establish a one-person business without a notarial deed. Registration in the Trade Register is mandatory. As a private individual you can only register one one-man business. However, you can have more than one trade name and carry out various business activities under different trade names. These activities can be carried out at the same or at another address, as a branch office of the one-man business.

Liability

As the owner of a one-person business you are responsible for everything concerning your enterprise; for every legal act and all its assets and liabilities. No distinction is made between private and business property. Thus, business creditors can seek recovery from your private property and private creditors from your business property. If your one-man business goes bankrupt, you yourself go bankrupt as well.

If the owner of a one-person business should be married in a community of property regime, the creditors may also lay claim to the partner’s property. Partner liability can be avoided by a prenuptial or a postnuptial agreement drafted by a civil-law notary. However, since partners are usually requested to co-sign when taking a loan, the agreement may not offer the protection expected. A civil-law notary can provide more information.

Taxes and social security

The profit made in a one-person business is taxed in box 1 income tax. If the Tax Administration fully considers you an entrepreneur, you are entitled to tax allowances such as the entrepreneur’s allowance, investment allowance and the tax-deferred retirement allowance.

The owner of a one-person business cannot claim social benefits under the Sickness Benefits Act, the Work and Income Act and the Unemployment Insurance Act. Therefore, it is advisable to take out insurances to cover these risks. You will qualify for the following national insurance schemes:

* General Old Age Pensions Act
* -Surviving Dependants Act
* Exceptional Medical Expenses Act
* General Child Benefit Act

Continuation of the business activities and business succession

With a one-man business no distinction is made between private and business. If you die, both business and private property will fall into your heirs’ estate. You will need to make provisions to guarantee your business’ continuity. A tax consultant could provide more details.

B. General partnership, the “VOF”

A general partnership is a form of cooperation in which you run a business with one or more business partners. You and your partner(s) are the associates or members of the general partnership. One of the characteristics of this legal form is that each partner contributes something to the business: capital, goods, efforts (work) and/or goodwill.

Setting up

A partnership contract is not a statutory requirement for the formation of a general partnership, but it is, of course, advisable to put down in writing what you and your business partner(s) have agreed upon. A partnership contract could arrange the following matters:

* name of the general partnership;
* objective;
* contributions by partners in capital, knowhow, goodwill, assets and efforts (work);
* distribution of profits and offset of loss;
* allocation of powers;
* arrangements in case of illness;
* arrangements for a partner’s days off/ holiday.

Liability

An important characteristic of the general partnership is the joint and separate liability of the partners. Each partner can be held fully liable – including private property – if the general partnership fails to meet its obligations, even if these obligations were entered into by another, authorised partner. Creditors of the partnership may seek recovery from your business property and your private property and the property of the other partner(s). Restrictions agreed upon in the partners’ authority have to be officially registered in order to gain legal effectiveness towards third parties.

The general partnership usually has separate capital’, i.e. the business capital contributed by the partners, which is kept apart from their private property and capital. This capital is to be solely used for business purposes. Should one or more creditors seek recovery from the partnership – for instance in the case of bankruptcy – they could do so from the separate capital. If this should be inadequate to pay the partnership’s debts, creditors may seek full recovery from the partners’ private property. If so, you could hold the other partner(s) liable for having failed to meet their obligations, but only after the creditors have been paid. In private matters creditors of partners cannot seek recovery from the partnership’s business assets or the private property of the other partner(s).

Because of this partners’ broad liability it is advisable to have a prenuptial or postnuptial agreement drafted if you are married under a community of property regime. A civil-law notary could provide you with more information.

Taxes and social security

Each partner will pay their own income tax on his profit share. If the Tax Administration sees the individual partner as an entrepreneur, they are entitled to all kinds of tax allowances, such as the entrepreneur’s allowance, investment allowance and the tax-deferred retirement allowance.

As far as social security is concerned, the same rules apply for the entrepreneur partner as for the owner of a one-person business.

Continuation of the business activities and business succession

Under Dutch law the general partnership ends when one of the partners resigns or dies. In order to secure the continuation of the general partnership, the partners can include a clause in the partnership contract arranging for the other partners to continue the general partnership with or without a new partner or to terminate it.

C. Limited partnership, the “CV”

A limited partnership, the “CV”, is a special type of general partnership (VOF). The difference is that the CV has two types of business partners: general, and limited or sleeping partners. The latter are only financially involved; they cannot act on behalf of the partnership. Besides, the name of a limited partner cannot be used in the trade name of the limited partnership.

Setting up

A partnership contract is no statutory requirement for a limited partnership, but, again, partners better put down the agreements. Apart from the matters mentioned in the VOF, the contract should arrange the distribution of profit between general and limited partners. When registering a limited partnership in the Trade Register, the personal details of the general partners are listed; the details concerning the limited partners are restricted to total number and their contributions in the partnership.

Liability

General partners can be held fully liable if the partnership fails to meet its obligations. Bankruptcy of the limited partnership will automatically lead to the general partners’ bankruptcy (not applicable to limited partners). A limited partner can only be held liable to the maximum sum contributed to the partnership. However, should the limited partner act on behalf of the partnership, he will be seen as a general partner and fully liable, in which case creditors of the partnership can lay claim on his private property as well. Restrictions agreed upon in the partners’ authority have to be officially registered in order to gain legal force towards third parties.

The general partners’ liability in a limited partnership is quite broad, so, if partners are married under a community of property regime they are advised to have a prenuptial or postnuptial agreement drafted. A civil-law notary could provide more information.

Taxes and social security

General partners pay income tax on their share in the profit. If the Tax Administration sees the individual partner as an entrepreneur, they are entitled to various tax allowances, such as the entrepreneur’s allowance, investment allowance and the tax-deferred retirement allowance. As far as social security is concerned, the same rules apply to the entrepreneur partner as to the owner of a one-person business. Limited partners, who cannot be held personally liable for the enterprise’s debts, are not seen as entrepreneurs by the Tax Administration.

Continuation of the business activities and business succession

Under Dutch law the limited partnership ends when one of the partners resigns or dies. In order to secure the continuation of the limited partnership, the partners can include a clause in the contract arranging for the other partners to continue the partnership with or without a new partner or to terminate it.

D. Professional partnership, the maatschap’

The partnership referred to as maatschap’ under Dutch law differs from the general partnership and the limited partnership in that it is a form of cooperation established by professionals such as doctors, dentist, lawyers, accountants, physiotherapists etc., rather than a cooperation established for the purpose of doing business. The partners are referred to as maten’ instead of partners’. Each maat’ contributes personal efforts, capital and/or assets. The purpose is to share the income earned on the one hand and the expenses incurred on the other.
Setting up a professional partnership

A partnership contract is no statutory requirement for the formation of a professional partnership, but partners better lay down their agreements with the other professionals in a partnership contract. This partnership contract could arrange the following matters:

* contributions made by the partners;
* distribution of profits, pro rata each partner’s contribution – distributing all profit to one partner is not allowed;
* allocation of powers – each partner is entitled to perform management acts, unless agreed upon otherwise; as of 1 July 2008 the professional partnership has to register in the Trade Register. This does not apply to partnerships that only act internally, such as a partnership in which costs are pooled.

Liability

Each authorised partner can enter into a contract, thus binding the partnership: all partners. Each partner can be held liable for an equal part. If a partner should act beyond his authorization, the other partners will in principle not be held liable: the partner in question is the only partner that has bound himself. A professional partnership has no separate capital’ from the private assets of the partners. Creditors having a claim on the partnership can only seek recovery for equal parts from the individual partners; these creditors do not rank above creditors who have a claim on the private assets of a partner. To a married partner the same reservations apply as to the general partners in general partnerships and limited partnerships. They are advised to have a prenuptial or postnuptial agreement drafted. A civil-law notary could provide more information.

Taxes and social security
Each partner pays income tax on his profit share. If the Tax Administration sees the individual partner as an entrepreneur, he is entitled to various tax allowances, such as the entrepreneur’s allowance, investment allowance and the tax-deferred retirement allowance. Regarding social security the same rules apply to the entrepreneur partner as to the owner of a one-man business

Continuation of the business activities and business succession

Under Dutch law the professional partnership ends when one of the partners resigns or dies. In order to secure the continuation of the partnership, the partners can include a clause in the contract arranging for the other partners to continue the partnership with or without a new partner or to terminate it.

E. Private company with limited liability, BV’

In contrast to the legal forms described above – enterprises run by natural persons – the private limited is a legal person: a person having rights and obligations, just like a natural person. The natural person who has incorporated the private limited cannot be held liable, in principle, for the debts incurred by the private limited. The BV itself is seen as the entrepreneur, whereas the natural person who is appointed director merely acts on behalf of the BV and cannot be held personally liable for his acts. A private limited company can be incorporated by one person a sole shareholder BV or by more persons. The capital of a private limited is divided in shares.

Incorporating

This involves a number of statutory requirements, most important of which:
Incorporation takes place through a notarial deed. This should include the articles of association of the company. The civil-law notary will check the legal contents of the articles.
A certificate of no-objection from the Ministry of Justice must be submitted before the incorporation can be effected. The Ministry checks whether the person incorporating the company has ever been involved in bankruptcy proceedings or fraud cases.

The incorporation of a BV requires a minimum capital of EUR 18,000 (cash or in kind) in the private limited.

Liability

The shareholder’s liability is limited to the total sum of his participation. Since the BV is a legal person, having its own independent rights and obligations, the persons involved – directors and supervisors – cannot be held liable for the debt of the company. In other words: the company’s creditors can never seek recovery from the private assets of these officers. However, a company director or officer may be held liable as a private person if he has acted negligently or culpably. If they are responsible for the company’s bankruptcy because of wrongful or fraudulent behaviour in the company’s policy, creditors of the company may file a claim against them.

In the formation phase of the company, a director may be liable for the company’s acts. This liability ends as soon as the legal person is incorporated and the acts are confirmed by the company. As long as the company has not been registered in the Trade Register, directors’ and officers’ liability continues. In practice, limited liability often does not apply because banks require the director and principal shareholder of the company to co-sign for loans taken out on behalf of the BV.

Taxes and social security

The private limited pays corporation tax also referred to as company income tax on the profits earned. The BV’s director and shareholder are employed by the BV His eligibility for social security under the Dutch social security laws depends on the relation of authority between himself and the private limited. A relation of authority is considered not to exist if:

* the director, possibly with his or her spouse, can cast more than 50% of the votes in the shareholders’ meeting;
* two thirds or more of the shares are held by the director and/or close relatives up to the third degree;
* the director cannot be dismissed against their will.

Without a relation of authority, the director and shareholder cannot rely on the social security insurances. He will have to take out his own insurances; to him the same rules apply as to the owner of a one-person business.

Continuation of the business activities and business succession

Continuation of the company is secured by the fact that the BV is a legal person that exists independently from the persons having incorporated or managing the private limited. When the director dies, the continuation of the enterprise is not at risk, viz. the enterprise is run by the BV and a new director will have to be appointed.

A private limited can be sold in two different ways:

* BV’s shares are sold;
* BV’s enterprise (machines, inventory, stocks, etc.) is sold.

If the shares are sold, the proceeds are subject to income tax (box 2) if the shareholder has a substantial interest (holder of a minimum of 5% of the shares).

If the enterprise is sold, the BV will have to pay corporation tax on the profit or book profit on the sale. If the shareholder of the BV selling the enterprise is a BV itself, the structure is referred to as a holding – advantage of which: the holding will in principle have to pay taxes on the proceeds.

Registration of your enterprise

Before you are allowed to start your business operations, you have to register your enterprise in the Dutch Trade Register, which is administered by the Chambers of Commerce. Registrations in the Trade Register are public; everyone can check whether a particular person is authorised to act on behalf of an enterprise and which legal form it has: a one-man business, a partnership or a private or public limited.

The Chamber of Commerce could run a trade name investigation for you to make sure that the selected trade name does not infringe the rights of other enterprises. This trade name investigation is not free of charge.

Holland Gateway (the cooperation of the Netherlands Chambers of Commerce, Ministry of Economic Affairs and other official institutions) is located at Amsterdam Schiphol Airport. This bureau promotes the ease of doing business in the Netherlands.

How to register your enterprise

Registration requirements

Once you have decided upon your business’ legal form, you can have your enterprise registered at the local Chamber of Commerce. Registration should take place within a period of one week preceding, and one week following the actual commencement of business activities.

Without registration in the GBA, you will need to submit authenticated proof of your residential address abroad. The person registering the business has to submit a valid proof of identity, which document has to be personally submitted at the Chamber of Commerce. The following documents are accepted as valid IDs:

* a valid travel document (passport or European ID card);
* a valid Dutch driving licence (non-Dutch driving licence not accepted);
* a residence permit issued by the IND;
* a Dutch refugee passport
* a Dutch aliens passport

If you do not start your business at your home address but at a location you have e.g. rented, you will also be requested to show the lease to confirm the business address.

Once the registration has been completed, you will be given a unique eight-figure registration number. This KvK number should be referred to on all your outgoing mail. Free of charge, you will receive an extract of your registration, a KvK-uittreksel'(excerpt).

Who can register the enterprise

When an enterprise is registered at the Chamber of Commerce, it is of the utmost importance that the registration forms which are submitted have been signed by the right person. Depending on the legal form of the enterprise, the forms can be registered in the Trade Register by:

* the owner of the one-man business (registration of a one-man business),
* the partners (registration of a general partnership, VOF, and a professional partnership, maatschap’)
* or the general partners (registration of a limited partnership, CV’)
* If the enterprise is a legal person, a BV, the civil-law notary will usually see to the registration formalities.

The persons who should register the enterprise and sign the registration forms can also be held responsible in the event an enterprise is not registered.

In special circumstances other persons may be authorized and/or obliged to see to the registration of an enterprise. The Chamber of Commerce can advise you on these circumstances.

Registration forms

The registration forms can be downloaded from the Chamber of Commerce website. As a statutory requirement, all forms are in Dutch and have to be completed in Dutch. Translations in English of forms 6, 11 and 13 are available to assist you while filling in the Dutch form to be handed in.
Registration is not free of charge. When you register a business, a fee will be due for the calendar year the enterprise is registered in. After that initial year, an annual fee will be charged in the first quarter of each year. The total sum of this contribution depends on the legal form.

After registration

Once the enterprise has been registered, it is the owner or partner’s responsibility to keep the information up-to-date. With a BV the manager authorised to act on behalf of the BV is responsible.

Permits and Licences

Most business activities can be performed without any permits or licences, but for some activities, like catering business, transport or taxi firm, you do need a licence. And an environmental permit may be required if your products or business operations negatively affect the environment. Permits and licences can be applied for at the municipality or at the provincial authorities.

Check how you can use your degree or diploma for your business in the Netherlands. International Credential Evaluation: http://www.idw.nl/international-credential-evaluation.html

Some sectors require registration with an industry board or a product board. Registration is a statutory requirement, based on the Act on Business Organisations. An industry board is a kind of interest group for a specific sector. The same applies to a product board, which includes all enterprises in a production chain, from producers of raw material to manufacturers of end products.

Termination / dissolution of the enterprise

When transferring or selling your company, you will have to comply with a number of rules and regulations. You should also enter information about the sale into the Trade Register and reach a settlement with the Tax and Customs Administration. A business transfer within the family involves several other tax aspects.

Expatica will publish Becoming a self-employed entrepreneur the Netherlands (part 1) on Sunday 27 February.

Chambers of Commerce
The Dutch Chambers of Commerce provide information on starting a business, legal forms, registration in the trade register, international trade etc. We have accumulated knowledge, contacts and partnerships, which makes it the essential reference point for every firm doing or seeking to do business.

Drop by for specific information
Apart from general information, the Chambers of Commerce will be glad to provide you with further details regarding your specific position: either at the start of your business or while running it.

If you are located and/or interested in the Region Amsterdam:
Do call 020-5314684 for a consultation with one of our specialists of the Bedrijfsvoorlichting department.

Why Cmos May Be Considered For Private Trading Programs

Collateralized Mortgage Obligations (CMOs) sometimes referred to as Real Estate Mortgage Investment Conduits (REMICs), are one of few innovative investment methods available in today’s investment world. CMOs offer relative safety, regular payments and notable yield advantages over other better known fixed-income securities of comparable credit quality.

A wide variety of CMO securities with different cash flow and expected maturity characteristics have been designed to meet specific investment objectives. While CMOs offer advantages to investors, they also carry certain risks which will be further explained in this document. To determine if CMOs fit within your investment portfolio, you should first understand the distinctive features of these securities.

CMOs were first introduced in 1983. The Tax Reform Act of 1986 allowed CMOs to be issues in the form of REMICs, creating certain tax and accounting advantages for issuers and for certain large institutional and foreign investors. Today, almost all CMOs are issued in REMIC form. Remember that throughout this CMO explanation, REMICs and CMOs are interchangeable.

THE BUILDING BLOCKS OF CMOS
Mortgage Loans and Mortgage Pass-Throughs. When a CMO is created, it begins with a mortgage loan extended by a financial institution (such as a savings and loan, commercial bank or mortgage company) to finance a borrower’s home or other real estate. The homeowner usually pays the mortgage loan in monthly installments composed of both interest and “principal”. Over the duration of the mortgage loan, the interest component of payments in the early years gradually declines as the principal component increases.

To obtain funds to generate more loans, lenders either “pool” groups of loans with similar characteristics to create securities or sell the loans to issuers of mortgage securities. The securities most commonly created from pools of mortgage loans are “mortgage pass-through securities” (MBS) or “participation certificates” (PCs). MBS represent a direct ownership interest in a pool of mortgage loans. As the homeowners whose loans are in the pool make their mortgage loan payments, the money is distributed on a pro rata basis to the holders of the securities.

Several factors can affect the homeowners’ payments. Typically, the homeowner will “prepay” the mortgage loan by selling the property, refinancing the mortgage or otherwise paying off the loan in part or whole. Most mortgage pass-through securities are based on fixed-rate mortgage loans with an original maturity of 30 years, but experience shows that most of these mortgage loans will be paid off much earlier.

While the creation of MBS greatly increased the secondary market for mortgage loans by pooling them and selling interests in the pool, the structure of such securities has inherent limitations. MBSs only appeal to investors with a certain investment horizon – on average, 10-12 years.

CMOs were developed to offer investors a wider range of investment time frames and greater cash-flow certainty than had previously been available with MBS. The CMO issuer assembles a package of these MBS and uses them as collateral for a multiclass security offering. The different classes of securities in a CMO offering are known as tranches, from the French word for slice. The CMO structure enables the issuer to direct the principal and interest cash flow generated by the collateral to the different tranches in a prescribed manner, as defined in the offering’s prospectus, to meet different investment objectives.

THE HIGH CREDIT QUALITY OF CMOS
The Government National Mortgage Association (GNMA, or Ginnie Mae) an agency of the U.S. government, along with U.S. government-sponsored enterprises (GSE) such as the Federal National Mortgage Association (FNMA, or Fannie Mae) or the Federal Home Loan Mortgage Corporation (FHLMC, or Freddie Mac), guarantee most MBSs. Ginnie Mae is a government-owned corporation within the Department of Housing and Urban Development. Fannie Mae and Freddie Mac have federal charters and are subject to some oversight by the federal government, but are publicly owned by stockholders.

Fannie Mae and Freddie Mac issue and guarantee pass-through securities. Ginnie Mae only adds its guarantee to privately issued pass-throughs backed by government issued (FHA and VA) mortgages. Fannie Mae and Freddie Mac have issues CMOs for quite some time; the Department of Veterans Affairs (VA) began to issue CMOs in 1992, and Ginnie Mae initiates its own CMO program which began in 1994. Securities guaranteed or guaranteed and issues by these entities are known generically as “agency” mortgage securities. The agency guarantees enhance their credit quality for investors. In addition, the mortgages backing Fannie Mae and Freddie Mac mortgage securities must meet strict quality criteria. Those backing GNMA pass-throughs are underwritten in accordance with the rules and regulations of the FHA and the VA, which insure them against default.

The extent of the agency guarantee depends on the entity making it. Ginnie Mae, for example, guarantees the timely payment of principal and interest on all of its mortgage securities, and its guarantee is backed by the “full faith and credit” of the U.S. government. Holders of Ginnie Mae mortgage securities are therefore assured of receiving payments promptly each month, regardless of whether the underlying homeowners make their payments. They are guaranteed to receive the full return of face-value principal even if the underlying borrowers default on their loans. Mortgage securities issued by the VA carry the same full faith and credit U.S. government guarantees.

Fannie Mae guarantees timely payment of both principal and interest on its mortgage securities whether or not the payments have been collected from the borrowers. Freddie Mac also guarantees timely payment of both principal and interest on its Gold PCs and CMOs. Some older series of Freddie Mac PCs guarantee timely payment of interest, but only the eventual payment of principal. Although neither Fannie Mae or Freddie Mac securities carry the additional full faith and credit U.S. government guarantee, the credit markets consider the credit on these securities to be equivalent to that of securities rated triple-A or better.

Some private institutions, such as subsidiaries of investment bank, financial institutions and home-builders, also issue mortgage securities. When issuing CMOs, they often use agency mortgage pass-through securities as collateral; however, their collateral may include different or specialized types of mortgage loans and/or pools, letters of credit and other types of credit enhancements. These private-labeled CMOs are the sole obligation of their issuer. To the extent that private-label CMOs use agency mortgage pass-through securities as collateral, their agency collateral carries the respective agency’s guarantees. Private-label CMOs are assigned credit ratings by independent credit agencies based on their structure, issuer, collateral and any guarantees or outside factors. Many carry the highest AAA credit rating.

As an additional investor protection, the CMO issuer typically segregates the CMO collateral or deposits it in the care of the trustee, who holds it for the exclusive benefit of the CMO bondholders.

For the above reasons described, CMOs are considered by a select few platforms to be an asset that is easy to validate and prove ownership. In addition, the trading platform is able to be added as the CMOs Beneficiary allowing for the appropriate financing lines to be obtained. The result is a CMO asset that can be purchased for pennies on the dollar with nominal returns and subsequently placed and traded successfully in a Private Trading Program with yields the owner once only dreamed of.

Ras Al Khaimah- One Jurisdiction.a Number Of Benefits

The Ras al Khaimah International Company is one of the most confidential, secure, and flexible offshore solutions available today. Apart from its integral features, it draws enormous credibility and prestige from the broader socio economic context of the UAE as a global financial centre. Born out of a multi-award winning Free Trade Zone (operating within a world class regional business hub), the RAK IC enjoys a strong commercial authenticity, untarnished by the tax haven status attributed to so many jurisdictions.

Ras Al Khaimah is one of the seven emirates forming the UAE federation. Since 2003 it has pursued a highly successful policy of industrialisation and economic diversification in various sectors. A key engine driving the Emirates economic growth and development has been its Free Trade Zone. Established in 2000, Ras Al Khaimah Free Trade Zone (RAK FTZ) remains one of the fastest growing and most successful free trade zones in the UAE. It is also home to the RAK International Business Registry and the RAK International Company.

In September 2006, the RAK Government launched an international business registry (the second offshore facility in the UAE), regulated by the RAK Free Trade Zone Authority – enabling foreigners to register international companies in the RAK Free Trade Zone without the need to establish a physical presence and with nominal equity investment (no minimum capital requirement).
This International Company model was based on a set of rules and regulations designed to offer one of the most attractive and flexible offshore tax and legal regimes in the world.

RAK ICs enjoy absolute confidentiality in every respect. There is no disclosure whatsoever of any details pertaining to the company, the beneficial owners or directors, and no public access to details on the international business registry.

Foreign individuals and entities can be 100% owners of RAK ICs, which enjoy zero corporation or capital gains tax as well as respected white list status deriving from the UAE. Indeed the UAE is the only OECD white listed jurisdiction that has no taxes for international companies, free zone entities, or local companies and individuals.

Businesses who do not intend to conduct any onshore operations within the UAE, can utilise the RAK IC for a wide range of purposes including international trade, ownership of international assets and real estate, as well as ownership of intellectual property (patents, trademarks and copyright). It can be used for head office operations, and act as a global holding company for entities engaged in various international activities. The RAK IC may hold shares in any legal entity in the world, including offshore companies in other jurisdictions. Naturally, there are no restrictions on capital and profit repatriation.

Despite a general prohibition on conducting business with persons resident in UAE or carrying out any trade within the UAE (unless it has obtained the appropriate licence from the relevant authority), the RAK IC can hold shares in both offshore, free zone and onshore UAE companies. It can also own or hold an interest in designated freehold properties throughout the UAE.

In addition a RAK IC can of course hold and operate a bank account in the UAE, and may also maintain professional relations with legal consultants, accountants, management companies or other similar persons within the UAE.

The UAE currently has in place 48 double taxation prevention treaties and plans to implement 5 new treaties every year. The majority of these treaties do not contain the recent OECD clause for exchange of information. Moreover, other than the Netherlands-UAE bilateral treaty, the UAEs bilateral treaties do not discriminate between entities established on the mainland or within the free trade zones. In this context a RAK IC will be able to avail itself of the benefits deriving from the UAEs comprehensive treaty network thus helping to safeguard profits remitted abroad arising from dividends, interest, royalties and fees.

In cases where certain anti avoidance provisions or optimal tax planning contingencies require a physical presence, a basic RAK Free Zone entity (flexi desk or flexi-office facility) can easily be established and can be wholly owned by the International Company affording a high degree of flexibility and confidentiality together with a physical presence, as well as the opportunity to procure visas for designated officials. If desired, a bona fide local business activity can be established through the acquisition of an appropriate business licence. Local management and control can also be asserted through the appointment of a corporate director in the UAE.

Although all UAE companies must abide by UAE law, RAK ICs can choose which legal system should be applied for resolving inheritance issues, commercial disputes, and any other legal matter. .

Flexibility is evidenced in the ability to tailor the memorandum and articles of association of a RAK IC to suit specific needs, including the citing of the preferred legal convention, whether it is common law, civil law, Sharia or Hindu succession law etc and also the issuance of multiple classes of shares, including custodian shares and restricted bearer shares.

The incorporation process itself is extremely straightforward with comparatively minimal compliance procedures and with a minimum requirement for one director and shareholder (which may be the same person). The director and shareholder can be individuals or corporate entities, and may of course be non resident in the UAE.

Moreover on an ongoing basis, RAK ICs have no annual reporting requirements, no need to conduct AGMs, and no need to file accounts or annual returns.

The RAK IC derives enormous strength from the stable socio-political environment and economic dynamism afforded by the UAE, and its location within of one of the fastest growing emirates. The Confidentiality, versatility, and security of the IC, combined with its zero tax status and access to the UAEs double tax treaty network make it a uniquely attractive proposition.

There is only a restricted number of fully licensed agents directly authorised to incorporate and manage International Companies in Ras al Khaimah, some of which can benefit from a prestigious World Trade Centre registered office address in Dubai.

Commercial Real Estate Companies, Commercial Real Estate Development, Commercial Property

Commercial Real Estate Companies

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Commercial real estate is often referred as investment or income property. It refers to building intended to generate a profit by a capital gain or rental income. Properties are developed and then given on lease or sell to commercial or business use in order to generate profitable return on investment.

Commercial properties include office buildings, farm land, medical centers, hotels, malls, retail stores, shopping centre, multifamily housing building, warehouse, garages, etc. Commercial properties could be broadly divided into four categories as retail, office, industrial and multifamily. Where first three were only known as commercial properties in earlier days but now multifamily building is also considered as commercial real estate.

Commercial Real Estate Development

Real estate developers normally acquire natural or undeveloped land and improve it with roads, entitlement of land, etc. After improvements are made to that land it is subdivided and sold to generate profits. Multi storey shopping malls which offer high end luxury tastes at middle class rates has increased the visitors and even the demand for more and more commercial property developments in India. Commercial real estate development is to be done with extreme research because each place is not suited for commercial purpose.

The commercial real estate companies in India are involved professionally in the commercial property development business. Real estate companies in India play important role in country’s economy. Raising a building on that is not that easy, we need so many consultants and a lot of procedures are to be completed to own a building whether it is going to be residential or commercial property, the real estate companies does it all. Among many industries, almost 75% to 85%, the commercial real estate companies are pioneer in terms of stocks, job opportunities and in many other parameters.

A good commercial real estate company conducts a market research, gathers information and analyzes it in each and every possible aspect. When market research reports are positive in order to generate a good profit they will start the process of acquisition of land. Once land is acquired land is developed and basic infrastructure is created. Slowly and gradually this infrastructure is developed in to a building which is then sold or leased to individual interested in the property. This land could be used for various purposes like multiplexes, exclusive showrooms, shopping centers, IT centers, warehousing, and multistoried parking.

Over the period of time return on investment on properties has increased and hence more and more companies are plunging in the commercial real estate development. The value of appreciation on commercial property in India is increasing annually at a rate between 8 to 10 percent. Commercial real estate is considered to be the best investment in order to generate huge profits in shorter time period.

In this rush of real estate development a customer must choose a commercial real estate property wisely. One must take into consideration traffic count, frontage, quality development, right partner, good price, etc. factors when choosing commercial property. Also one should choose right kind of commercial property developer in India depending on reputation in market, kind of material they use in developing, services provided by them, clearance of land title, etc.

Commercial Property Development

Current trend in the commercial real estate companies is constructing multifamily building and townships. Many townships in India are expanding at a fast pace. Many new residential properties in India and commercial properties in Indian are being developed to satisfy the growing demand of Indian properties. All this directs to a good investment opportunity for people who want to have a base in the city. A lot of new projects are in the initial stages which make the prices quite affordable. These kind of commercial properties which are used as commercial and residential purpose both are turning out to be real gem for real estate developers in India. This kind of commercial property in India is easy to sell and have high profits in return. Indian commercial properties are no doubt an ideal sector to invest as they generate stable income compared to the dwindling stock market.

Real estate property development company, Pacifica Company offers residential properties, commercial properties, hotels projects, IT parks development, township development, mixed use development projects, land development projects etc.