Dubai Issues New Regulation for Free Zone Companies
Dubai has issued a new regulation related to the operations of free zone companies, which will allow them to easily expand operations in the country.
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The Crown Prince of Dubai, Sheikh Hamdan bin Mohammed, issued the regulation in his role as a chairman of the Executive Council of Dubai on Monday, Mar. 17.
The regulation states that any company licensed by a free zone relevant authority may operate outside the free zone and within Dubai.
These companies can carry out these operations as long as they have obtained the necessary licences from the Dubai Department of Economy and Tourism (DET).
However, the resolution does not apply to financial institutions licensed to operate within the Dubai International Financial Centre (DIFC).
The free zone companies must follow the required federal and local regulations for their operations; they also need to separate their financial records for operations outside of the freezone from records for operations within the freezone.
If these companies want to operate outside of Dubai, they need to acquire the necessary permits and licences from relevant authorities.
The DET can also issue a licence for a company to establish a branch within Dubai or for a branch with its headquarters in the freezone.
These licences are valid for a year and can be renewed; the companies can also get permits issued for activities within the emirate.
The DET and the licensing authority have to issue a list of activities that companies can conduct in Dubai within six months.