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Get to Know about the Concept of Dual Trade License in UAE.

By Sakshi Srivastava - 26 May 2022 Last Updated: 26 May 2022
Get to Know about the Concept of Dual Trade License in UAE.

Table of Contents 

  1. 1. What gave rise to the Concept of Dual Licensing?
  2. 2. Dual Licensing: A Breakdown
  3. 3. What are the Benefits of Having a Dual License?
  4. 4. Conclusion

Dubai has become one of the most desirable locations in the UAE due to its growing GDP, stable economy, and strategic geographic location. A license is required to start a business in Dubai, whether on the mainland or in one of the free zones. Obtaining a dual license in Dubai is becoming increasingly popular, and it is in high demand among businesspeople and entrepreneurs.

Previously, the Department of Economic Development (DED) in Dubai had prohibited the acquisition of more than one company license. You can now obtain a dual license by registering a company with the Dubai Airport Free Zone Authority (DAFZA) or the Dubai International Financial Center (DIFC) and then applying for a business license with the Dubai Economic Department (DED).

Thus in today's blog, Dhanguard will extensively discuss the concept of dual licensing in UAE. So without any further ado, let's learn!

What gave rise to the Concept of Dual Licensing?

To promote and run businesses in Dubai, a Memorandum of Understanding was signed between DAFZA and the DIFC (MOU). They were able to do business across Dubai because of this deal. The Department of Economic Development (DED) has the authority to change any exercise relevant to corporate licensing, according to the Memorandum of Understanding (MOU).

  • The Department of Economic Development will follow the incorporation of the company connected to dual-license and free zone (DED)

  • The Memorandum of Understanding (MOU) cements Dubai's position as a world-class commercial destination by encouraging and fostering an investment-friendly environment.

Read More: Ras Al Khaimah: Best Region for Offshore Company Formation! Read Why

Dual Licensing: A Breakdown

Companies in free zones have long wanted dual licensing in order to operate numerous businesses and expand their reach in the UAE market. Prior to the approval of the dual license, these companies could only function within the boundaries of the free zone in which they were registered. They missed out on several opportunities to trade in one of the Middle East's fastest growing markets. With the DED's approval, the authorities would be able to assure improved governance and rules. The DED will have the authority to change or expand the enterprise's current activity.

What are the Benefits of Having a Dual License?

The following are some of the potential advantages of having a dual license:

  1. Cost savings include not having to rent office space on the mainland and the extremely competitive prices of establishing the new business.

  2. Establishing an onshore branch of a free zone corporation normally takes less time than forming a new entity.

  3. Improved business development capabilities, especially in cases where an onshore license is necessary to engage with specific government bodies.

  4. Onshore contracting risk reduction.

  5. The presence of an onshore entity in the UAE may help you to get more visas.

The process of establishing a dual license entity is identical to that of establishing a foreign firm branch, in that you must appoint a local National Service Agent (NSA). The NSA will not be a stakeholder in the onshore branch, but it will act as the company's representative in administrative and labor and immigration problems.


Holding a dual license for your company might be a cost effective method to get an onshore as well as freezone trade license while keeping your free zone entity and all of the perks that come with it. Thus, we hope this blog provided you with insightful information. For more information on other related aspects, feel free to check out our website as well or get in touch with our Experts by visiting our Branch Office.

Dhanguard provides the business setup and company formation services in Dubai, UAE with the guidance of our professional team of consultants. Faster and hassle-free company setup in Mainland and Freezone in UAE.

Dhanguard provides faster and hassle-free Trade License with minimum paper work. With the guidance of our professional team of consultants you will get General trading license, Freelance license, Etrader license, Event Management License, Travel Agency license in Mainland and Freezone in UAE.

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