DEPARTMENT OF ECONOMIC DEVELOPMENT ISSUES 16,688 LICENSES IN 2012

Dubai, 16 February 2013: Key economic sectors and economic activity in Dubai remained stable and growing in 2012, with the Department of Economic Development (DED) issuing 16,688 business licenses during the year, a 16 per cent increase over the 14,430 licenses issued in 2011. The tourism sector, at 56 per cent, accounted for the major share of licenses in 2012 followed by the professional (21%) commercial (14%) and industrial (13%) sectors compared to 2011.

“Confidence in Dubai is rising with the emirate emphasising on overall competitiveness and sustained investment in infrastructure producing rich returns. New project pipelines and growing links to new markets are attracting more investors who are leveraging the various business set up and growth options in Dubai,” commented His Excellency Sami Al Qamzi, Director General of the Department of Economic Development.

“The business registration and licensing activity in 2012 mirrored an increasingly positive investor sentiment and expectations. While existing businesses in Dubai are venturing further out and spreading their wings, a growing number of investors are also sensing the ideal conditions to step forward,” added Mohammed Shaal Al Saadi, Chief Executive Officer of Business Registration & Licensing (BRL) sector in DED.

The total number of amended licenses in 2012 was 67,056, up 14 per cent from 58,881 in 2011 while the total number of renewed licenses grew three per cent to 101,766, as against 98,981 during the previous year. The total number of transactions rose 16 per cent to 589,721 in 2012, from 506,792 in 2011.

The total number of commercial permits issued in 2012 was 29,266, a 21 per cent increase over 2011, while the total number of reserved trade names reached 65,089, a 24 per cent increase.

The number of licenses issued to companies according to legal status and for investing in Dubai reached 16,688 in 2012 compared to 14,430 in 2011. Limited liability companies topped the list of companies at 10,673 and a growth rate of 18 per cent o 2011, followed by Sole proprietorships (5,048), which grew14 per cent compared to 2011. There was also a 100 per cent increase in Partnership firms, from six companies to 12.

Among the 81 licenses issued to foreign investors in 2012, the top 10 nationalities accounted for 54. Kuwaiti nationals topped the list with 11 licences in 2012, followed by US investors (9), Indians (8) and Saudis (5).

The top ten business activities in Dubai accounted for 13,840 – 24 per cent – of the 56,914 activities licensed in 2012, compared to a share of 13,149 in a total of 52,949 licensed activities in 2011. ‘General trade’ led the list of the top 10 licensed activities in the commercial category with 2,198 licences, compared to 1,890 licenses in 2011. Dyes & paints; carpentry and flooring & tiling were the other business activities that showed significant growth last year.

Thanks

Vithul V Murali 
Al Zaeim Corporate Services 
Dubai Mobile : +971 50 55 73 538

Email  :Vithul@a2zconsultus.com

Skype : Vithul.murali

Courtesy : Dubaided

TRADE / SERVICE LICENSE FOR UAE NATIONALS - INTLAQ PROGRAM

Intlaq Program

‘Intelaq’ is an innovative program launched in the UAE to assist UAE nationals residing in Dubai to take their first step into the world of business. Intelaq allows for different business activities which can be worked on from home.

The program aims at supporting UAE Nationals setting up their business, through a mechanism that will enhance the budding business chances of success. The program also provides operational assistance and business development.

To achieve this, The Mohammed Bin Rashid Establishment for SME Development is dedicated to incubating & providing the necessary support during the initial phase for a period of three years. The support offered to Entrepreneurs manifest in the form of licensing, training courses as well as financial, legal, marketing, technical support, and consultancy. This will enable participants in the Intelaq program to become independent project leaders, and capable of achieving development growth.

Few restrictions

Almost any professional, artisan or trade business can be home-based. We simply ask if it is reasonable for the kind of business you want to create to operate from a residential environment. Some restrictions are obvious: your business must not harm the environment or the health of any person, and should not generate noise or other irritants that may have a negative impact on your neighbours. Other than these kinds of limitations, you are free to operate any kind of small business.

Licensing

The Intelaq licence costs just AED 1060. You can have only one trade or professional Intelaq licence but can operate more than one related activity under the licence. If your business requires the approval of other government departments, you will have to pay the relevant fees.

An Intelaq licence does not allow you to hire staff. However, you are free to engage contractors if necessary, who work from other location

Vithul V Murali 
Al Zaeim Corporate Services 
Dubai Mobile : +971 50 55 73 538

Email  :Vithul@a2zconsultus.com

Skype : Vithul.murali

courtesy: dubaiSME

How FreeZone Companies in UAE can Do Business in Dubai

The Department of Economic Development (DED), Government of Dubai, has reiterated that no Free Zone company can conduct business within Dubai unless it has a DED license or chose to open a branch in Dubai in accordance with the conditions stated in Law No. 13 of 2011 on business registration and licensing in the Emirate.

Issued by His Highness Sheikh Mohammed Bin Rashid Al Maktoum, UAE Vice President and Prime Minister and Ruler of Dubai, the Law No.13 of 2011 is meant to enable Free Zone companies to open branches in Dubai while maintaining their presence in the Free Zone.

“Under no circumstances can a Free Zone company in Dubai operate outside its jurisdiction unless it has a branch licensed by DED. The same applies to companies in any Free Zone in the UAE. Alternatively, such companies may appoint an intermediary to sell their products or services in Dubai but the intermediary should have a DED license,” stated Mohammed Shael Al Saadi, Chief Executive Officer of Business Registration & Licensing (BRL) Sector, DED.

Al Saadi issued the clarification after reports in certain online media and subsequent enquiries on a Free Zone company in another emirate claiming to be a “virtual free zone” providing cheaper means of enabling “international entrepreneurs operate their businesses from a home or office anywhere in the UAE.”

“Recently, we have been receiving complaints from various Free Zone companies, most of them operating outside Dubai, that their licensors had promised they can do business in Dubai under the Free Zone license. We have clarified to them that there is an established route to doing business in Dubai,” Al Saadi explained.

“Through Law No.13 of 2011, Dubai has acknowledged the role of Free Zone companies in economic activity in the UAE and the leadership wants to allow such companies to contribute further to overall development. DED’s role is to enable businesses that choose Dubai as their base to benefit from a competitive environment and best practices,” Al Saadi added.

A Free Zone company can operate a branch in Dubai as long as it is active within the Free Zone but any termination of the Free Zone activity will reflect in the Dubai license as well.

The Law No. 13 also allows Free Zone companies that have no local partners to open branches in Dubai, provided such branch has a Local Service Agent on board. A Local Service Agent is a UAE national or UAE company who will sponsor employees for the Dubai branch of a Free Zone company at the Ministry of Labour. The Local Service agent will have no rights of voting or decision-making in the company.

Vithul V Murali 
Al Zaeim Corporate Services 
Dubai Mobile : +971 50 55 73 538

Email  :Vithul@a2zconsultus.com

Skype : Vithul.murali