New licensing system will avoid duplication of names

Dubai: A new unified commercial licensing system is expected to change the way companies receive trade licences and renew them.

The Ministry of Economy Wednesday discussed the new trade licensing system with the Ajman Chamber of Commerce and Industry and means of its implementation.

The system, which is to be adopted across the country, will enable local departments, municipalities, chambers of commerce and industry and tourism development departments to smoothly monitor and follow up on the issuance of commercial licences while avoiding duplication of commercial names.

Trade licences are usually issued by the relevant licencing authorities such as the Department of Economic Development and the free zone authorities in the seven emirates.

However, licensing procedures vary from state to state and from free zone to free zone.

By introducing this system the ministry aims to attract investments and trading groups to different parts of the country.

Aiming for the best

The integration of this strategy is in line with the ministry's goals to improve growth and quality in the national economy by introducing global competitiveness standards. It also aims to provide the best services to both local and foreign investors, which enhance the country's investment environment.

The previous system allowed businesses to register only in their emirate of operation, which approved the duplication of company names.

This would also sometimes lead to the copying of foreign trade names in the local market, which can damage a company's reputation and violate its trademark.

Dr Mohammad Al Asoomi, a UAE-based economist, said that this was a positive step forward for the UAE. "This is a very good step forward in the right direction. The introduction of this system is only because it is in line with many developments that occurred in the country for the past few years," he told Gulf News.

The UAE is home to more than 450,000 companies, including 140,000 registered in Dubai.

Mohammad Al Hamrani, Director-General of the Ajman Chamber of Commerce and Industry, said that the Chamber had determined the necessary human resources and technicalities in order to carry out the project.