The UAE, in a Bid to Support Businesses, has Issued a Cancellation of Fines for Business Licenses
The UAE recently declared a cancellation of all business license fines where such licenses have been delayed or terminated. Small and Middle Enterprises can now rest assured that upon late renewal or expiration of their business licenses, they will not have to pay a fee for their oversight. The same applies to companies within the country also.
Why the Business Licenses Fines Exist
The UAE has recently stated that it will be canceling the fines for the termination or late renewal of business licenses. Running a business within the UAE requires that a person obtain an employment visa. The visa allows for obtaining a business license without which a person cannot conduct business within the country. Where such a license expires, it is necessary to renew it promptly, without which fines can be issued. Annual license renewal is usually required for small and middle business enterprises. In addition to imposition of fines on such countries, the country may also choose to restrict the defaulting business from expanding within its territory.
Where a company conducts business without a valid license, it is also liable to a specific fine, in addition to extra fines where such permits are expired and unrenewed. The country has previously attempted to implement measures that offer legal and financial assistance to companies stranded in 2018. However, the country finally hit the nail on the head a few days ago when it officially announced Resolution No. 5, establishing the cancellation of fines for delayed or terminated business licenses.
Sheikh Saud bin Rashid Al Mu’alla, the ruler of Umm Al Quwain, issued the resolution to cancel termination and delay of business license fines imposed by the Department of Economic Development. The country’s goal is to provide adequate support for business within its territory.
What are the Benefits of the Cancellation of Business Licenses Fines?
The benefits of the business license fine cancellation are visible and easy to note. For one, the cancellation eradicates the imposition of sometimes unfair fines on businesses with reasonable excuses for late renewal or temporary non-renewal. Cancellation of administrative penalties also aids the country in its realization of its goal of providing appropriate support to businesses following relevant competencies. This single strategic step on the UAE’s part is sure to attract businesses and foreign investment. Thus, leading to increased employment and economic growth in the country. Resolution No. 5 is said to be valid through December 31 of this year after it has been published in the official Gazette.
Conclusion
It is evident from this recent endeavor that the UAE is on a roll to ensure economic growth, support, and stability. The country is making sure to cover all grounds and sectors, one of which is to promote the ease of doing business there. Indeed, investors and persons who have or are looking to establish a business in the country will show palpable eagerness and interest.
Last Updated on 9 months by News Editor
