Dual Business License in Dubai
Contributed by PMC Solutions
05 February, 2020
According to the business regulations, free zone businesses in Dubai can only work within their corresponding free zone limits. Basically, they are not allowed to own or do business anywhere else in the UAE. But now, there is a innovative and incredible alternative to do business in Dubai. The free zone Dubai Airport can now receive the dual license permit to function across Dubai. And that's great news!
A dual license for a Dubai company is a matter of demand among entrepreneurs and business owners. A dual business license in Dubai has become the need of the hour with several possibilities to invest in more than one company.
Dual licensing was something that was demanded for a long time by companies in free zones, whose interest was in functioning in multiple undertakings and also in the UAE market having a wider outreach.
A dual license enables an onshore license to be applied for by a free zone registered company, allowing the company to perform business outside the boundary of that free zone and without the need to obtain extra office premises.
Potential Benefits of Obtaining a Dual License
- Increase in opportunities and business choices
- Cost saving - since there is no requirement of an additional office space and also the setup cost can be saved.
- Dual licensing will decrease overall accounting, administrative and operating expenses. It will also offer businesses flexibility and competitive edge in the market place to conduct business with one license in the free zone and the mainland. Companies in general will be more productive and lucrative
- Less business loss opportunities. One or the other will be effective based on choosing your category of company.
With plenty of possibilities and options for businesses, investing in two companies at the same time is certainly a great idea.
Companies importing and selling in the mainland as well as re-exporting will benefit most as they trade in both the mainland and neighboring nations.
The most sophisticated free zone authority DMCC is now partnering with the Department of Economic Department (DED) with a dual licensing system.
The application process for dual licence permit is much similar to that of a foreign business branch, as you will need to designate a local National Service Agent (NSA). The NSA will not be a shareholder of the onshore branch, but will act as the company's representative, especially in administrative and Labor & Immigration matters.
This notewothy initiative of Dubai's dual licensing scheme will bring ample importance to the Dubai and UAE economy in particular.
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