Licensing in Dubai Free Zone

Dubai is by all means a world business center. There are very many companies that are being established and incorporated in Dubai, day in day out. This is especially so because of the many phenomenal features that Dubai is famous for, ranging from highly acclaimed hotels to the tallest building in the world. Many businesses and companies are now taking advantage of the incentives that come along with the Dubai free zone. When a company has been approved to trade in the free zone, the company is accorded one of the following licenses in order to operate freely in the free zone. The licenses can actually be renewed yearly in so far as the lease agreement still stands. Companies that are in possession of trade licenses and industrial licenses are only allowed to carry out business in the Dubai free zone or overseas. This is their jurisdiction. They are not allowed to carry out business within the country, Dubai in this case. If they were to trade within the UAE region or to sell their products there, then they would have to enlist the services of a United Arab Emirates official agent. Without an agent, trading is not possible. However, an exception to this occurs when it comes to acquisition of products within the UAE such that a company can acquire products without an agent. The first license is the trade license which is accorded to companies that have been legally incorporated outside the United Arab Emirates in exports and imports. Normally, there will be no licensing required from the economic department and ownership can actually remain hundred percent (100%) foreign. The other license accorded is the industrial license which is given to companies that have been legally incorporated with regard to industrial production. Normally, such companies are incorporated outside the United Arab Emirates but within the Dubai free zone. In this case, just like in trade license, ownership will be hundred percent foreign and no license will be needed from the economic department. Service license is issued by the government body in the United Arab Emirates such that companies in possession of the license can offer various services such as contracting, banking among others. The companies are required to abide by any requirements by the government. The national industrial license is granted to industrial manufacturers. Companies in possession of this license have the same status as local companies within the United Arab Emirates. It is important to note that all these licenses can be renewed yearly provided the lease agreement stands.