New Initiatives from Dubai Government to Promote Business
Lavin Nalinababu, Business Consultancy
In a sign of continuing investor confidence in Dubai and new opportunities arising across diverse economic sectors, the Department Economic Development in the emirates issued 2934 new license for various professional, commercial, industrial and tourism activities in June 2019.
BRL also issued 250 instant licenses, which processed in a single step without the need for either the memorandum of association or an existing location for the first year while the number of DED trader licenses, which allows to conduct business activities on social media platform reached 219 in the same period. DED trader is an initiative aimed to license business activities on social networking sites.
NEW FORMS OF LICENSE:
- An initiative aimed to license business activities on social networking sites. This is primarily to help business to promote their products.
Businesses can promote their products through social networking sites, events and exhibitions, display in consumer point of sale etc. This also helps to protect trade name.
- Businesses are also allowed to have bank facilities, membership in Dubai Chamber facilitating import and export. This also allows temporary employment services.
- The cost of setting up the DED trader is very minimal.
- Issuing the trade license in one-step without the need for either the MOA or an existing location for the first year only. The MOA and location to be submitted upon renewal.
- This can be a limited liability company, one person LLC , sole proprietorship or a civil company.
- Some of the activities would need external approvals.
- Helps business to keep the cost low for the first year of operation. Helps business to establish.
INITIATIVE FROM DED TO EASE OF DOING BUSINESS
Suspension of business activity under an expired license
- This will help business to retain the license without penalty for non-renewal. The suspension of license will be for maximum of three years. The license free can be cancelled any time. No activity is allowed during the freeze period.
- The business can renew the license anytime during the freeze period, however, the fees paid for freeze will not be returned.
- It is the process of mortgaging the license and the business office related to it or the partners shares in order to apply for a loan from one of the banks in UAE or for any other purpose that requires a mortgage certificate.
- There are two types of mortgage, the mortgage of business office which requires announcement, and the mortgage certificate shall be issued. The mortgage of shared doesn’t require announcement, and a mortgage certificate shall be issued in respect thereof.
CANCELATION OF COMPANY’S LICENSE THAT HAS BEEN EXPIRED FOR MORE THAN TWO YEARS
Long term visa for investors without sponsors
- The following categories are entitled to apply for a 10-year residence visa in the UAE.
- Investors in public investments of at least AED 10 million
The investment may take many forms such as:
- A deposit of at least AED 10 million in an investment fund inside the country
- Establishing a company in the UAE with a capital of not less than AED 10 million
- Partnering in an existing or a new company with a share value of not less than AED 10 million
- Having a total investment of not less than AED 10 million in all areas mentioned, on condition that the investment in sectors other than real estate is not less than 60 per cent of the total investment.
- Persons with specialised talents.
- This includes specialised talents and researchers in the fields of science and knowledge such as doctors, specialists, scientists, inventors, as well as creative individuals in the field of culture and art.
- The visa advantage extends to the spouse and children. All categories are required to have a valid employment contract in a specialised field of a priority in the UAE.
Eligibility for a 5-year visa without a sponsor:
- The following categories are entitled to apply for a 5-year residence visa in the UAE.
- Investors in a property in the UAE
- The investor must invest in a property of a gross value of not less than AED 5 million.
- The amount invested in real estate must not be on loan basis.
- The property must be retained for at least three years.
- This category includes those having an existing project with a minimum capital of AED 500,000, or those who have the approval of an accredited business incubator in the country.
- The entrepreneur is allowed a multi-entry visa for six months, renewable for another six months. The long-term visa includes the spouse and children, a partner and three executives.
- Outstanding students with a minimum grade of 95 per cent in public and private secondary schools
- University students within and outside the country having a distinction GPA of at least 3.75 upon graduation.
- Long-term visa includes families of the outstanding students
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- Investors buying property for more than 1 million is eligible to get residency visa including the family members. The investor should have the title deed in the personal name and should also obtain clearance from Dubai police.
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