Thursday, Mar 29, 2012

Gulf News

Dubai Businesses can now start operating within hours after applying for a new 120-day fast-track business licence from the Dubai Department of Economic Development (DED).

In an interview with Gulf News, Mohammad Al Shael, CEO of the DED Business Registration and Licensing Division, said business owners will only be required to present their work history and rent contract and they can proceed with the processing of their 120-day licence.

“The business licence is a legal government acknowledgement that the specific business is registered in its database,” Al Shael said.

“It will allow investors to have their licences issued immediately in an attempt to simplify the investment and business registration process.”

Once registered, a business will have to go through the usual process of securing the necessary approvals from government agencies as well as banks within 120 days.

“This licence is a normal licence valid for one year, and it is renewable for a similar period,” Al Shael said.

He said that a rental contract is an essential pre-requisite for a business licence. Business owners should be able to provide a copy of their tenancy contract with a Real Estate Regulatory Authority (Rera) number before their licence application is processed.

“This initiative has been introduced to put the horse in front of the cart. According to the current licensing process, businessmen are required to seek different approvals in advance to start their businesses regardless of the business type. With the new initiative in place, business activities will be evaluated by DED and based on the risk factors associated with each of them, will be categorised into three — No-risk, Low-risk or High-risk.”

Explaining the registration procedures, he said that a businessman should surf the DED website and be ready with his company’s tenancy contract that has a RERA unified number.

A step by step registration expert will help applicants complete the registration process.

The system will monitor each step of the process to minimise any misuse or errors, and suggest the next step.

Payment gateway

Upon completing the process, the system will direct the applicant to the payment gateway and once payment is acknowledged, an e-business licence will be generated stating the business activity and work instructions. This process applies to businesses classified as ‘no-risk’ and/or ‘low-risk’.

Al Shael noted that business activities are categorised as No-Risk, Low Risk and High-Risk.

“More than 90 per cent of the businesses are No-Risk or Low-Risk and therefore a vast majority of businesses stand to benefit from the 120-day licence,” he added.

High-risk activities, such as restaurants, clinics and therapy centres, which represent 10 per cent of businesses, will process the same requirement seeking pre-approvals from different authorities.

He said that if a businessman has completed all required documentation, the process won’t take more than an hour or two and no extra fees will be applicable on the 120-day licence.

By Zaher Bitar?Staff Reporter

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