Increase in GDP, stable economy, and strategic geographical location has made Dubai one of the most favorable locations in the UAE. For setting up a business in Dubai, be it the mainland or any of the free zones in Dubai, one must have a license. The trend of getting a dual license in Dubai is fast prevailing now and has become a subject of demand among businessmen and entrepreneurs.
Earlier, the rules of the Department of Economic Development (DED), did not approve of acquiring more than one business license in Dubai. But now, you can get a dual license by registering a business at Dubai Airport Free Zone Authority (DAFZA) or Dubai International Financial Centre (DIFC) and later applying at the DED for a business license.
Breaking Down Dual Licensing
Dual licensing was something that was long demanded by the companies in free zones, whose interest lied in operating in multiple enterprises and also have a wider outreach in the UAE market. Before the dual license was approved, these companies were allowed to operate only within the boundaries of the free zone they were registered in due to which they were missing out on a lot of opportunities to trade in one of the fastest growing markets in the Middle East.
Now that the dual licensing has been approved by the DED, it will allow the authorities to ensure better governance and regulations. The DED will have the power to alter or add to the existing activities of the businesses. It will also enhance monitoring and joint inspection, which will in-turn improve transparency and compliance with the free zones and prevent frauds.
Benefits of Getting a Dual License
- Increase in opportunities and business choices for commercial enterprises
- Less risk. One or another business will get successful based on the choice of your business category
- Dual Licensing system in Dubai will bring abundant value to the economy of Dubai and the UAE
How Does Dual Licensing in Dubai Happen?
DAFZA and DIFC got under a MoU (Memorandum of Understanding) to promote and operate a business across Dubai. Looking at the increasing number of foreign investors wanting to establish multiple enterprises, the MoU agreement permitted them to operate across Dubai. The MoU is an attempt to intensify Dubai as an ideal commercial destination that supports flexible strategies to create an investment-friendly environment. It is also important to note what the MoU exactly mentions. It says that:
- The Department of Economic Development in Dubai could modify any exercise related to the licensing of corporations
- The dual licensing is approved only by the particular free zones
- The company incorporation related to any free zone and dual license would be ascertained by the Department of Economic Development adhering to the law
- The MoU is an endeavor to strengthen Dubai as an exemplary business destination and promote compliant approaches to build an investment-friendly environment
Dual licensing will enable more business opportunities to the businessmen in Dubai as it will widen their markets outside their free zone. With adherence to the basic laws established according to the DED, the business credibility will also take a sharp rise across Dubai. And with the amazing benefits that it carries along, dual licensing can help your business grow further. As we look at the business success in Dubai, it is now the right time to start. But the right techniques with right assistance and guidance will also be needed for business setup. We at Commitbiz can help and assist you all the way to make your process of getting a license a bit easier. Do contact us for more information.