In a move that will benefit over 20,000 companies, Dubai has exempted from fines companies that have failed to renew their operating licences.
His Highness Shaikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE, in his capacity as Ruler of Dubai, has issued a decree granting the exemption, official news agency Wam reported on Wednesday.
The exemption includes companies in special development districts and free zones. However, only companies that rectify their status before June 2010 will benefit from this privilege. The penalty is Dh200 per licence per month.
There are more than 100,000 companies in the emirate outside the free zones and 15 to 20 per cent of them stand to gain from this exemption, Mohammed Shael Al Saadi, chief executive officer in Dubai Department of Economic Development for Business Registration & Licensing, told Khaleej Times.
The move is part of Shaikh Mohammed’s sustained support to the business community. It underlines his keenness to find effective alternatives and solutions to spur businesses activities positively.
“The decree will apply to all companies regardless of their size, nationality, number of partners, and period of renewal,” Al Saadi said.
The decree takes effect from the date of issue and it will boost Dubai government’s strategy to help companies set their house in order by reducing the burden of government fees for renewal or cancellation of permits.
This facility is valid only for six months and companies will pay the full fine after June 10, 2010, he said. This exemption will also help businessmen who might want to cancel their licences after the expiry of renewal date.
“It will benefit many small and medium businesses,” he said. “If a businessman wants to move from one sector to another, he will also get exemption.”
Business consultants and businessmen welcomed the exemption and said this was the time when such measures would create goodwill among businessmen.
Manish Gupta, Manager-Business Advisory Services, Jitendra Business Consultants, said, “The new decree is a good move for small and medium enterprises. SMEs are the backbone of any economy and Dubai has always acknowledged this fact. Like other businesses, SMEs are undergoing tremendous stress to cope up with their businesses in the current economic scenario.”
SMEs account for over 90 per cent of the total businesscin the emirate. It will also help those planning to move from one sector to other specially from real estate sector.
Imran Yasin, a Canadian national who started his construction machinery rental business in Dubai two years ago, welcomed the move. “After investing all my fortune, I am out of business since last ten months, as construction activities have come to a halt. The construction companies are offering terms that are economically unviable,” Yasin said.
He suggested a wavier in various regulatory fees and charges for the companies facing series financial crisis, to give them a lease of life.
His Highness Shaikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE, in his capacity as Ruler of Dubai, has issued a decree granting the exemption, official news agency Wam reported on Wednesday.
The exemption includes companies in special development districts and free zones. However, only companies that rectify their status before June 2010 will benefit from this privilege. The penalty is Dh200 per licence per month.
There are more than 100,000 companies in the emirate outside the free zones and 15 to 20 per cent of them stand to gain from this exemption, Mohammed Shael Al Saadi, chief executive officer in Dubai Department of Economic Development for Business Registration & Licensing, told Khaleej Times.
The move is part of Shaikh Mohammed’s sustained support to the business community. It underlines his keenness to find effective alternatives and solutions to spur businesses activities positively.
“The decree will apply to all companies regardless of their size, nationality, number of partners, and period of renewal,” Al Saadi said.
The decree takes effect from the date of issue and it will boost Dubai government’s strategy to help companies set their house in order by reducing the burden of government fees for renewal or cancellation of permits.
This facility is valid only for six months and companies will pay the full fine after June 10, 2010, he said. This exemption will also help businessmen who might want to cancel their licences after the expiry of renewal date.
“It will benefit many small and medium businesses,” he said. “If a businessman wants to move from one sector to another, he will also get exemption.”
Business consultants and businessmen welcomed the exemption and said this was the time when such measures would create goodwill among businessmen.
Manish Gupta, Manager-Business Advisory Services, Jitendra Business Consultants, said, “The new decree is a good move for small and medium enterprises. SMEs are the backbone of any economy and Dubai has always acknowledged this fact. Like other businesses, SMEs are undergoing tremendous stress to cope up with their businesses in the current economic scenario.”
SMEs account for over 90 per cent of the total businesscin the emirate. It will also help those planning to move from one sector to other specially from real estate sector.
Imran Yasin, a Canadian national who started his construction machinery rental business in Dubai two years ago, welcomed the move. “After investing all my fortune, I am out of business since last ten months, as construction activities have come to a halt. The construction companies are offering terms that are economically unviable,” Yasin said.
He suggested a wavier in various regulatory fees and charges for the companies facing series financial crisis, to give them a lease of life.
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