The UAE is a global hub for business due to its strategic location, advanced infrastructure, and investor-friendly environment, making it an ideal choice for business expansion. If you plan to set up a business in the UAE, you need a business license to conduct operations. A dual business license is one of the most popular options, allowing companies to operate in two business jurisdictions. A dual business license enables companies operating in free zones to extend their operations to the mainland. Launched by the Abu Dhabi Department of Economic Development (DED), this license improves market access.
Previously, free zone companies were not authorized to operate on the mainland, but the UAE government has recently introduced the dual license to bridge this gap. Companies can operate in free zones and on the mainland with a dual business license. Investors and businesses can use the same office space and trade license across the UAE’s business jurisdictions. This license is particularly beneficial for expanding market reach and optimizing operational efficiency. In this blog, we will further discuss how obtaining a dual business license benefits business expansion.
What are the major free zones in UAE that offer Dual business licenses to investors?
- Dubai Airport Free Zone (DAFZA)
- Dubai International Financial Centre (DIFC)
- Ajman free zone
- Masdar city free zone
- Fujairah Free zone
- Dubai design district (D3)
- Abu Dhabi Airport Free Zone (ADAFZ)
- Abu Dhabi Global Market (ADGM)
- Khalifa Industrial Zone Abu Dhabi (KIZAD)
Legal Considerations and Eligibility for Dual Business License in UAE
- When obtaining a dual license, the free zone company remains the primary legal entity, and the mainland business will act as a branch.
- Only businesses registered in any of the UAE free zones can obtain a dual business license.
- The company must comply with the legal regulations of both the mainland and the free zone.
- If your business is registered in the free zone, you do not need an office space on the mainland.
- Businesses must possess the relevant business license based on their activities.
- Businesses must have a local bank account.
- The business must choose the appropriate business structure.
- A dual license cannot be registered with the Ministry of Labour. Therefore, all staff must be employed by the free zone company and should have free zone resident visas.
- A manager must be appointed to act on behalf of the dual license branch, and this person should have the right over the power of attorney.
How to apply for a Dual business license in UAE?
- Choose the right free zone
Not every free zone in the UAE offers a dual business license. If your business is registered in a free zone that doesn’t provide dual license, then you need to choose a free zone to establish your business.
- Select the business structure
Select the business structure like LLC or free zone company, and choose an appropriate trade name for your company.
- Submit your application and documents
You can submit your application through the free zone authority to obtain a mainland license.
Required documents
- Free zone license
- No objection certificate
- Declaration and Pledge
- Obtain Approval
Obtain the necessary approval from the concerned government authorities.
- Payment
Pay the required fees and if you need to add business activities then extra payment should be made.
The Department of Economic Development (DED) in the UAE will approve a dual business license based on your business activities. In some cases, your business may need to obtain special approvals from specific government authorities, depending on the nature of the operations. Consulting a local business service provider will be useful to handle the complexities of obtaining a dual business license. These professionals can provide detailed information about eligibility, legal requirements, and the necessary approvals.
What are the benefits of a Dual business license in UAE?
Market Access
Access to both mainland and free zone markets allows you to reach a larger audience.
Business Opportunities
The dual business license enables companies to set up branches in both jurisdictions, expanding their operational scope.
No Need for Additional Office Space
You can conduct your business from your main branch in the free zone, eliminating the need for extra office space on the mainland. Due to this it will be really cost efficient.
Better Revenue
Operating in both the mainland and free zone can help diversify your revenue streams, making your business more resilient to market shifts.
How Jitendra Business Consultants Can Help You Obtain a Dual Business License in the UAE
Several free zones in the UAE provide dual business licenses, which are beneficial for foreign investors to establish their businesses and access a vast market. The legal framework for obtaining a dual license varies depending on the free zone. Investors need to be aware of the legal challenges and eligibility criteria for obtaining a dual license. This is where seeking the advice of a professional business consultant becomes essential.
Jitendra Business Consultants can assist you in navigating the legal challenges associated with obtaining a dual license. Our professionals will coordinate with the respective free zones and mainland authorities to secure your dual business license in the UAE. In addition to this, Jitendra Business Consultants offers various services, including company registration, business consulting, corporate tax advisory, audit, and accounting.
