Temporary license freeze, installment facility on fees and fines for businesses in Dubai

The Department of Economic Development (DED) in Dubai has launched a package to make it further easier for businesses to clear fines and renew their licenses. The package will allow businesses to pay their fees and fines in easy installments, freeze their trade license for a year and seek an amicable settlement with DED on commercial violations as reported by WAM (Emirates News Agency).

The service package is part of enabling businesses to overcome obstacles and benefit from a credit facility that would allow them to maintain their competitiveness. DED had recently exempted companies and business establishments in Dubai from all fines imposed on them and granted them time till end of 2018 to renew their licenses.

The new package allows for the payment of license renewal fees and accumulated fines through convenient instalments within 12 months. DED is extending the facility in co-operation with its strategic partner aafaq Islamic Finance and a number of local banks. Business owners can approach any of the DED service centres located throughout Dubai or visit the DED website www.dubaided.gov.ae for more details on the facility.

The licensee can benefit from the installment if fines and fees have been accumulated for more than a year. Investors can apply for the fees not to be paid and avoid fines in case they wish to temporarily freeze doing business while retaining their license. The waiver applies to fines issued before 14/04/2018 and for fines issued after this date license holders can take advantage of the offer of amicable settlement and payment in instalments.

The licensee who requests amicable settlement must not have benefitted from any other exemptions following the first fine issued after 14/04/2018. As such license holders are entitled to a 50 percent reduction in the basic value of penalties issued for the first violation.