The flagship free zone, Dubai Multi Commodities Center, signed a strategic agreement with DED to help boost trade and economic activity both within the free zone and offshore. This dual licensing system allows to extend operations to Dubai mainland and comes with the potential to change the entrepreneurship and the business landscape in Dubai. This partnership aims to further facilitate trade and boost economic activity in the Emirate.
The agreement will also enable DMCC businesses to carry out some services and activities onshore, provided they obtain a no-objection certificate (NOC) from DMCC first. The dual business license will open up communication and collaboration for sharing information and giving companies enjoy expansion capability through blockchain technology.
Dual licensing was demanded the companies and entrepreneurs in free zones, as they were interested in operating multiple enterprise and also reach out to the UAE market. Before this, the companies were allowed to operate only within the boundaries of the free zone.
The process of obtaining a dual licensing involves registering a company at free zone authority and then applying for a dual licensing with the department of economic development. The two business activities in a dual licensing model will be interconnected through the license.
The dual licensing system will also allow authorities to ensure better governance and regulations. With this new agreement DED, will now have the power to alter or add to existing activities of businesses. The license approval will be subject to the terms and conditions of both the govt authorities.
Also Read: How can I get a Virtual Commercial License?
Some facts mentioned in the MOU
Dubai multi commodities center got under a MoU (Memorandum of Understanding) to promote business across Dubai. This MoU is an attempt to promote Dubai as an ideal commercial destination that supports flexible business activities and create an investment-friendly environment. It is also important to note what the MoU exactly mentions. It says that:
- Department of economic development in Dubai could modify any exercise related to licensing of corporations
- The dual licensing is approved only by the applicable free zone authority.
- The company incorporation related to any free zone and dual licensing 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 throughout the emirate.
Time frame for obtaining license
- The time frame for obtaining the license depends on the activity. Most of the activities are immediate, which may only take a few minutes for their approval.
- Other activities with a technical nature require approvals from certain entities, and the time frame may depend upon the service agreement.
Also Read: 4 Updates Released by the Government that Every Investor Should Know
Cost involved in obtaining dual license
Standard license fees apply to dual licenses and depend on several factors, such as the legal form and activities to be pursued. Providing a physical location and a nameplate are excluded from dual licenses.
The dual licensing system is a major mile stone in Dubai’s dynamic environment. Dual licensing will provide more businesses opportunities businessmen in Dubai as well as widens markets outside a free zone. With adherence to basic laws and the amazing benefits that carries along, dual licensing can help businesses grow further.
If you are an entrepreneur looking to setup a company in Dubai or trying expand your existing operation with dual license, you might find it helpful to partner a with registered business consultant. They can help and assist you all the way to make the process of getting a dual license bit easier.