Licensing & Legal Information

🧾 Licensing & Legal Information

1. What Are Qualifying Activities for 0% Tax in 2025?

Per Ministerial Decision No. 229, activities like commodities trading and holding company management qualify for UAE Free Zone tax exemptions.

2. What Is a Dual License in UAE Free Zones?

A dual license allows Free Zone companies to operate in UAE mainland markets with DED approval.

3. Can I Get a Temporary License in Free Zones?

Some Free Zones offer short-term licenses for projects, ideal for temporary UAE business setups.

4. Can One License Cover Multiple Free Zones?

No, licenses are Free Zone-specific, but you can hold multiple licenses for UAE business expansion.

5. What Are Penalties for Free Zone Non-Compliance?

Fines up to AED 20,000, license suspension, or closure for violating UAE Free Zone rules.

6. Do Free Zone Companies Register with the UAE Chamber of Commerce?

No, they register with their Free Zone Authority for UAE business compliance.

7. Can I Operate Without a Trade License in a Free Zone?

No, a valid trade license is mandatory for legal UAE business operations.

8. Are Free Zone Licenses Transferable to Other Emirates?

No, but you can set up branches in other emirates with new registrations for UAE business growth.

9. What Is a Professional Service License in Free Zones?

It’s for consultants, advisors, or professionals like accountants, ideal for UAE service businesses.

10. Do Free Zones Comply with AML Regulations?

Yes, KYC and reporting are mandatory under UAE AML laws for Free Zone businesses.