Dual License in U.A.E.

By Suneesh | September 21 , 2018 | 01

The result of an MoU between two of Dubai’s free zones (DAFZA and DIFC) and the Dubai Department of Economic Development (DED), the dual licensing system allows foreign free zone companies to extend their operations to the Dubai mainland. The process for obtaining a dual business license involves first registering a company at DAFZA or DIFC and then applying for a dual business license with the Department of Economic Development. The two business activities in a dual business model will be interconnected through the license. Dual licensing allows businesses to explore multiple avenues at the same time. Entrepreneurs will have the chance to take advantage of the various benefits of both the free zone and mainland business models.

Now, the Abu Dhabi Department of Economic Development (ADDED) has announced the launch of the first phase of its Dual Licenses Initiative, which enables companies to both operate in the Emirate’s free zones and carry out their commercial activities onshore in Abu Dhabi, Al Ain and Al Dhafra. The new scheme aims to encourage investment and drive economic development across the Emirate.

The first phase of the initiative is open to companies headquartered in Abu Dhabi and based in one of its free zones. ADDED is currently developing a comprehensive scheme for the second phase of the initiative, which will allow more companies to qualify for a dual license.

Dual licensing is the latest in a series of initiatives to support entrepreneurs, SMEs and the private sector. In its first phase, the initiative will offer companies more opportunities to do business and grow, such as allowing them to work and partner with other government entities.

Eligible companies will need to present a non-objection certificate from their free zone, an undertaking that states no ownership of branches located outside the free zone, and a photocopy of the parent company’s free-zone license. After the application is submitted, it will be transferred for primary approval. Once approved, the license will be printed upon the payment of the required fees.