The Dubai Department of Economic Development (DED) is planning to issue instant trade licences to investors under a new ‘120 days hassle free licence’ initiative that will be launched this year, according to Gulf News.
The move, which will allow investors to have their licences issued immediately, will drastically simplify the investment and business registration process, depending on the risk factors of the intended business activity.
The move, which will allow investors to have their licences issued immediately, will drastically simplify the investment and business registration process, depending on the risk factors of the intended business activity.
The UAE has improved its rank in Ease of Doing Business to 33 in 2012, up from 35 in 2011, under the World Bank’s annual Doing Business report. DED said the scheme is aimed “to give businesses in Dubai a head start and promote the emirate’s competitiveness”.
“It is critical today that we ensure that the key sectors of our economy — trade, logistics, finance, knowledge sector, tourism, retail, and manufacturing and industry — are made even stronger and more competitive in this globalised age,” Shaikh Hamdan Bin Mohammad Bin Rashid Al Maktoum, Crown Prince of Dubai, said.
DED, the government’s trade licensing and regulatory body, renews and issues roughly 120,000 trade licences annually.
The 120-day licence allows businessmen to start businesses immediately and complete the rest of the licensing requirements, such as approvals from other government authorities concerned, within the subsequent 120 days.
Government authorities are entitled to ensure full compliance by the licence holder to the licence criteria on day 121.
The initiative, being implemented under the directives of His Highness Shaikh Mohammad Bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, will simplify procedures and facilitate business.
“Dubai being a hub, various categories of businesses choose to set up in the emirate for faster growth and market access.
“The 120-day licence is part of DED’s efforts to enable businesses to make full use of the advantages of Dubai and improve the emirate’s ranking in the Doing Business Report of the World Bank,” said Mohammad Shael, Chief Executive Officer of the Business Registration and Licensing (BRL) Division at DED.
Non-Emiratis are already allowed to hold 100 per cent ownership in Dubai companies even without a free zone licence. Professionals such as doctors, technicians, carpenters, cooks etc can have 100 per cent ownership unless the entity is a Limited Liability Company (LLC).
Expatriates can only have 49 per cent ownership in LLCs with UAE nationals holding 51 per cent.
More at Gulf News
