Dual License in Abu Dhabi

Abu Dhabi, popular for its diverse economic landscape, is an Emirate for growing businesses, innovation, investment opportunities and much more. The capital of the United Arab Emirates (UAE) welcomes various companies across sectors like tourism, energy, and technology. The Emirate’s business environment, supportive policies, good infrastructure, and increasing GDP  are reasons entrepreneurs like you are attracted towards setting up business in Abu Dhabi.

The Abu Dhabi Department of Economic Development initiated the Dual license concept in 2018 to further motivate businesses. This article examines the concept, eligibility conditions, and steps involved in obtaining a dual license in Abu Dhabi. 

What is a Dual License?

A dual license allows companies operating in the free zones to extend their operations to the mainland by following a hassle-free procedure. Earlier, freezone companies that wished to conduct business onshore were prevented from doing so. Certain processes were in place, such as incorporating a separate company, renting an office space, and hiring local sponsors. However, once the authorities introduced the concept of dual license, these were removed. 

Freezones that issue Dual License in Abu Dhabi 

Here is the list of freezones in Abu Dhabi that offer dual license - 

  • Dubai Design District (D3)
  • Dubai Multi Commodities Centre (DMCC)
  • Twofour54
  • Dubai Airport Free Zone (DAFZA)
  • Dubai International Financial Centre (DIFC) 
  • Abu Dhabi Airports Free Zone (ADAFZ)
  • Khalifa Industrial Zone Abu Dhabi (KIZAD)
  • Masdar
  • Abu Dhabi Global Market (ADGM)

Eligibility for Obtaining a Dual License in Abu Dhabi

There are certain eligibility conditions to obtain a dual license. Let us take a look at them –

  • Companies registered in any of Abu Dhabi’s freezones are allowed to obtain a dual license.
  • There is no need for an establishment card for obtaining a dual license. 
  • You do not need a service agent to setup a dual license branch.
  • A manager with rights over the power of attorney must be appointed to act on behalf of the dual license branch and make decisions.
  • A dual license branch does not need a physical address because it is allowed to conduct business from the location of its parent business.

Documents to Submit for Dual License in Abu Dhabi

The documents which need to be submitted for a dual license in Abu Dhabi are as follows –

a) No Objection Letter (NOC) from the Freezone authority.

b) A copy of the parent company’s freezone business license.

c) Provide proof that the company has a branch in the Emirate, outside of the freezone.

Application Process for Obtaining a Dual License in Abu Dhabi

Here are the steps that you need to follow for obtaining a dual license –

Step 1Login to Official Website

You need to log into TAMM Abu Dhabi using the UAE PASS.

Step 2 - Submit Application

You must submit the application with the necessary documents to the Abu Dhabi authorities.

Step 3 - Obtain Approval(s) 

Avail necessary approval(s) from the authorities.

Step 4 – Make Payment

You need to pay the fees to obtain the dual license.

Following the steps mentioned above will ensure you get the dual license from the authorities, allowing you to extend your business operations to the mainland. 

Impact of Dual License in Abu Dhabi

You must know the changes that having a dual license in Abu Dhabi brings. Let us look at them–

i) Helps simplify multi-branch organisations and reduce administrative and logistical workload, thereby strengthening essential economic sectors.

ii) The dual license in Abu Dhabi offers access to various business opportunities in the market.

iii) A dual license helps reduce costs, save time, and offers a chance to increase the company profits, given better policies by the Freezone Authority and the Development of Economic Department (DED)

iv) Abu Dhabi witnesses massive economic expansion and improved financial plans.

The introduction of the dual license in Abu Dhabi is a positive step because it has motivated entrepreneurs and investors worldwide to expand their businesses. It has resulted in the advancement of economic development and increased business setup in Abu Dhabi. 

Contact Commitbiz and let our experts explain the legalities and regulations issued by the DED and the Freezone Authority. We provide top-quality services and can help you obtain a dual license without much hassle. Book a call with us today.

FAQs

Can any type of business obtain a dual license?

While many types of businesses are eligible for dual license, authorities may restrict certain activities or require additional approvals.

What are the costs associated with obtaining a dual license?

The costs vary depending on the nature of the business, the chosen free zone, and other factors like office rental costs and visa fees.

Can existing businesses avail of a dual license?

Yes, existing businesses in the Abu Dhabi mainland can apply for a dual license if they meet the eligibility criteria and comply with the necessary processes.

How does dual license contribute to Abu Dhabi's economic diversification efforts?

Dual license promotes economic diversification by encouraging investment across different sectors and facilitating collaboration between mainland and free zone businesses.

Are there any new initiatives related to the dual licensing system in Abu Dhabi?

Nothing is specific now, being aware of regulatory changes, government initiatives and new freezone developments can help your business.