Can freezone companies do business in dubai
can free zone company trade in uae
Yes. Free zone companies can do business in Dubai mainland. Further this has boiled down to getting into the legalities of it and has drawn a MOU with few free zones of Dubai namely, DAFZA (Dubai Airport free zone authority) and DIFC (Dubai International Financial center). Certain other free zones are also in discussions with the Dubai Economic Department (DED) to take the advantage of the dual license Dubai dual license UAE. The main motive of these MOU’s is to build and strengthen the stability and the economic growth. This also allows working on the common interests and strategically contributing to the growth. Few other related questions will be like can free zone company trade in uae mainland. It’s also possible as well.
Dubai has been one among the emerging business hubs in the most dynamic markets of the Middle East regions which is why it attracts the foreign direct Investments. Keeping this scenario into consideration, the Dubai government has taken initiatives which would ease down the regulations of Licensing and create more space for the entrepreneurs to spread their business and eventually expand.
What is a Dual License?
Dual License Dubai in Common terminology is something where the entrepreneurs holding free zone companies would now be able to operate on a multiple entities from a single location and eventually have a great scope of business in the UAE market legally.
Prior to this in order to legally operate their Business in UAE market, the free zone companies were bound to appoint a dedicated local agent or a distributor to have their local market business base. This Dual licensing UAE system would break these parameters and would enable the business to grow in the market strongly.
As the treaty is been signed by the parties, DED will now allow the free zone companies to have their license issued with the Economic department on the premise located in the free zone providing a flexibility and at the same time it enables the proper controls are in place to inhibit any deceitful activities.
Advantages of Dual Licensing:
- Spread the business across the UAE Market and increase the business growth opportunities.
- Opening gates for the Local business directly by eliminating the Distributor / agent thus increasing profits and reducing Risks.
- Low set up costs as compared to the direct Main Land License.
- Stable growth thus adding value to self and the economy.
How to does Dual License Dubai Work?
As mentioned earlier, an MOU is been in place between the free zones and the economic development to promote the foreign Direct Investment and allow the businesses to freely operate in the UAE Market.
The MOU also highlights on the following:
- The DED Dubai, have all the rights to modify the activities related to the Licensing as per the requirements.
- The Licensing is now approved and permitted only to particular free zones.
- The MOU is majorly signed to reinforce the business markets and sustainable growth.
Business registered in DAFZA or DIFC can grab the opportunity and the get the dual license issued from the DED and widen their business markets. To more in details about the legalities and the right approach to set up the dual license we expert advisors at Flying Colour would be able to assist you in detail. The blog post is written by Ms. Sowmya. Feel free to call our Business Adviser today for a more detail on long term visa related queries. Please send inquiry to info[at]flyingcolour[dot]com or call +971 4 4542366
