Dubai Economy on Monday reported a decrease in the charges for licenses by more than 90 percent, from Dh3,000 to Dh250. A press release said a similar expense will apply when the License is renewed.
An instant licence includes four legal forms – Limited Liability Company, One Person LLC, Sole Proprietorship and Civil Company. Business owners can obtain online a general commercial licence, which includes general trade activity, in addition to activities that do not require external approvals and are permitted for both citizens and residents.
Furthermore, the licensee is given membership in Dubai Chamber instantly, an establishment card of the General Directorate of Residency & Foreigners Affairs (GDRFA) as well as three work permits for employees from the Ministry of Human Resources and Emiratisation (MoHRE) once the trade licence is issued.
Nimish Goel, the partner at WTS Dhurva Consultants, said the reduction in instant license fees and online application will give impetus for individuals and start-ups to commence its business venture in the region.
“The Dubai government has taken all possible measures in terms of reduction in fees, customs duty refund and deferment of taxes to support local businesses in the UAE. The measures taken will reduce the cost of doing business, provide necessary liquidity and business continuity during these tough times,” said Goel.
The instant licence service reduces human interaction through automated licensing procedures and easy access to a business licence. It guarantees that entrepreneurs can start their business activity immediately after the licence is secured, and then complete the remaining requirements of the licence, such as approvals from other relevant government entities.
It said the Business Registration and Licensing (BRL) sector in Dubai Economy issued 550 instant licences during the first quarter of 2020. Around 73 per cent were for commercial category and 27 per cent for professionals.
The report showed that the number of instant licence owners during Q1 2020 reached 1,746, with men accounting for 88 per cent. The nationals of UK, South Africa, Saudi Arabia, Egypt, Jordan, India, Pakistan, China, Sudan and the Philippines were the top entrepreneurs who secured the most instant licences.