A stable economy, an increase in GDP and strategic geographic locations have made Dubai one of the most favorable locations in the UAE. To set up a business in Dubai, be it the mainland or free zone, one has to obtain a license. The trend of Dual License is fast prevailing and has now become the subject of demand among entrepreneurs and businessmen.
What is Dual Licensing?
Dual licensing is demanded by the company in free zones, where the interest lies in operating multiple enterprises. Before the approval of dual-licensing, the companies were allowed to operate only within the boundaries of the free zone that they were registered. Because of which they were missing out on the opportunity to trade in one of the fastest-growing markets n the Middle East.
Now that it’s approved by the Department of Economic Development (DED), it allows the authorities to ensure better governance and regulations. The Department of Economic Development (DED) enhances monitoring and inspection which in turn will improve the transparency and compliance to prevent fraud.
Benefits to Dual Licensing:
- It increases opportunities and business choices for commercial enterprises.
- There is less risk
- The Dual licensing system in Dubai will bring in infinite opportunities in the UAE market.
How does dual licensing happen?
In order to promote and operate businesses across Dubai. DAFZA and DIFC got under a Memorandum of understanding (MOU). This agreement permitted them to conduct business across Dubai. Memorandum of understanding (MOU) says:
- Department of Economic Development (DED) can modify any exercise relating to the licensing of corporation
- The incorporation of the company related to dual-license and free zone will be adhered by the Department of Economic Development (DED)
- The Memorandum of understanding (MOU) strengthens Dubai as an exemplary business destination to promote and build an investment-friendly environment.
Contact MSZ Consultancy for assisting with Dual licensing:
Dual licensing brings in more opportunities in Dubai for the businessmen. But given the right assistance and guidance, one can easily set up a business in Dubai. MSZ Consultancy will assist you in the process of getting a license in an easier manner. Get in touch with us for more information.
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