With the mandate to boost entrepreneurship, the Abu Dhabi Business Centre (ADBC) has announced a one-year exemption from the lease contract for a total of 1200 economic activities. This step is directed to strengthen business infrastructure and improve the ease of doing business. In this news article, we will discuss the key highlights of this initiative with the help of our best lawyers of Dubai.
One-year exemption from the statutory requirement
In the opinion of our top lawyers in UAE, the new law has relaxed the requirement of having a lease contract, which was a mandatory condition earlier. Interestingly, this exemption is extended to approximately 1200 economic activities performed in the Emirate. It is expected that this will not only simplify the tedious registration procedures but also offer some much-needed time to the investors to find a suitable location for their business.
It is pointed out by our top lawyers of UAE that presently 4062 activities are performed in the Emirate and more than 30% of activities are provided an exception under this new initiative. To regulate the economic activities, the exemption shall be granted upon the renewal of a license or even before that.
It is important to note that ADBC has launched many such initiatives in the last few years, including slashing business setup and renewal fees by over 94% and reducing the cost of business set up by 71%. It is coordinating with 26 local and other Federal government entities. These strategic initiatives are welcomed by the business community that witnessed an overall spike of 22% in the granting of new licenses from the last year.
Our top lawyers of Dubai have suggested that this measure will assist a speedy recovery from the severe economic effect of the Covid-19 pandemic. Though it started getting back on track, some strategic moves are still needed to restore normalcy.
Conclusion
In a nutshell, it can be said that the relaxation of the lease contract will solidify the existing ecosystem by catering to the needs of growing businesses. It can be looked at as a pre-emptive measure considering the current demand of the market. The exempted activities are selected based on their nature, statutory requirements, and other relevant factors. To know further about this initiative, contact our best lawyers of UAE.
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