Dubai free zone authority has reached an initial agreement for the proposal of a single license of operation for all Dubai Free zones. The initiative aims to improve the ease of doing business in the Emirates. The novel idea aims at driving economic growth with sustainability for thriving businesses, which were limited by the boundaries of the zones.
The single license will eliminate the need for a subsequent license to operate in any other Free Zones. Businesses will be able to work in different zones, use different infrastructure, and other benefits for ultimate business enhancement. Company formation in Dubai free zones will be relaxed with fewer restrictions.
"The DFZ Council aspires to position Dubai as a regional driver of sustainable economic growth, as well as a reference point for forecasting the future in various fields, including education and innovation while reflecting the outcomes of the Fourth Industrial Revolution. We have completed a study on our e-commerce initiative and look forward to constructive feedback from The Executive Council of Dubai" said Sheikh Ahmed, chairman of Dubai Civil Aviation Authority and CEO of Emirates Airline and Group.
Registration in the free zone faces various sorts of limitations that restrict business and its growth to a certain extent, and this initiative aims at easing those. So, to understand little more about the positive impact of the action, let's dig into the limitations businesses face in Free Zones.
Limitations of registration in Free Zones
- Established of the business is restricted to the Free Zone in which your business is registered
- Along with establishment, the operation is also restricted to the very designated Free Zone
- Business activities get limited to the specialization of the free zone, its rules, and its regulations
- Restriction of location is imposed with establishment gives you limited options of infrastructure
- Restriction on expansion is also imposed on free zone establishments and companies
The restricted area of the establishment, operation, and trade brings many barriers to the enhancement of the business. Expenses of rent and others have no options due to restricted areas of establishment and operation, which brings up the cost of company setup in Dubai free zone.
However, there are more advantages of Free Zone establishment than its disadvantages for foreign investors. Moreover, still to reduce those and to promote and support industries authorities bring initiatives like the single license for free zone operation to help free zone company setup in Dubai
What will be the advantages of a single license for all free zones?
As it aims, the initiative will bring much positive change and business opportunities for free zone companies if agreed upon and implemented. Let's see what will be the ease of doing business after a single license below
- Reduction in paperwork for obtaining different licenses
- Possible decrease in recurring license fees
- Ease of doing business in various free zones
- Benefits of using different infrastructure
- Removal of trade barriers
- Reduced restriction of location and establishment
- Reduced restriction on operation
Conclusion
As yet to announce, the proposal and its implementation are not clear to whom it may apply, who will be eligible, at what cost, and how will it work. Still hopeful for the initiative, foreign investors will soon be able to seize hold of the opportunities it will create.
Laws, regulations, their compliance, and their benefits are subjective and will require professional help and guidance for effective free zone company formation in Dubai. For useful and practical grasping of these developments consider getting professional consultation and services that will get you tailored solutions.
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