(MENAFN - Khaleej Times) The 120-day licence will allow investors to start businesses immediately and complete the rest of the licencing requirements
Dubai plans to introduce instant trade licences to investors under a new “120 days hassle-free licence” next month according to a top official of the dubai department of economic development.
“there will be no extra fee for this licence and it will be for one full year” mohammed shael chief executive officer of the business registration and licencing division at the ded told khaleej times in dubai on monday.
The 120-day licence will allow investors to start businesses immediately and complete the rest of the licencing requirements such as approvals from other local and federal government entities concerned within the subsequent 120 days.
“the 120 days hassle-free licence is based on risk factors. we have got around 2050 business activities. we classified these into three main risk categories. no risk low risk and high risk. and based on those risks factors we applied on all business licenses” shael said.
The ded floated this idea almost two years ago but shael clarified that it will take a maximum two months. earlier in his address to india club members he said the new initiative would be launched in the middle of may.
Further clarifying “120 days” he said the investor will get the trade licence instantly and after that he or she will have 120 days to fulfill all the requirements. “it has not been implemented... it’s a new one” he added.
“prior to 120 days the inspector has no right to give any fines. but after 120 days if the company is not fulfilling the requirements the inspector will have the right to fine the company” he explained.
A dubai-based senior business consultant appreciated the initiative and said it will save a lot of time and encourage investors to do business in the emirate.
“certainly it should help to those investors whose business fall in no risk category” jitendra gianchandani chairman and managing partner at jitendra consulting group told khaleej times.
Nowadays it takes a maximum of one week for a normal trade licence and 30 to 45 days for special activities requiring approval of concerned ministry or authorities gianchandani said.
He said that this new initiative would definitely attract investment and improve the competitiveness of dubai and enhance its global ranking in doing business.
The uae ranked top in the ease of doing business report of the world bank for 2013 at 23rd out of 189 global economies. saudi arabia ranked second in gcc at 26th followed by qatar at 48th and kuwait at 104th.
Last year the number of business licences issued by the ded reached 18757 showing an increase of 12 per cent over the 16791 licences issued in 2012.