Dual License option in KIZAD|Company Formation In KIZAD - 10 Zone Company Formation In KIZAD: The Abu Dhabi's Department of Economic Development (DED) recently launched the first phase of its Dual License Initiative in 2018. The DED is the regulatory body in charge of issuing licenses in Abu Dhabi.
What is a dual license? Companies setup in free zones were earlier not allowed to directly conduct business in the mainland. For example, a company trading in furniture would have to appoint a local distributor (usually an LLC in Abu Dhabi) to distribute products in Abu Dhabi and the rest of the UAE mainland. Also, free zone companies were not able to bid for government contracts, and hence missed out a lot of opportunities. The Dual License Initiative will now allow companies set up in the Abu Dhabi free zones, such as KIZAD, to establish a branch onshore. Previously, there were additional conditions for formation of an onshore branch company in Abu Dhabi. These included going through an elaborate process of formation, leasing an office space and enlisting the services of a local service agent. The above requirements are now waived. Which means, companies applying for the dual license will not have to take additional office space or take on a local service agent for their branch company. The Dual License option hence reduces costs of operations by over 80%! In addition to the above, companies with a dual license will be able to participate in government tenders, which will result in added flexibility for investors looking at setting up in Abu Dhabi.
Procedure for Obtaining the Dual License in Abu Dhabi The dual licensing option will be available to companies set up in KIZAD Free Zone, and other free zones of Abu Dhabi. Since a branch company cannot create a branch of itself, the dual license option will not apply to branches of companies registered in the free zones.