New Law for Setting-up Government Companies in Dubai
The continuous development of the emirate’s legislative framework is an indispensable factor in accomplishing the Dubai’s strategic objectives. Considered as a significant component, the development of the legal framework contributes to the growth prospects of different sectors. These things were given emphasis by Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai and Chairman of the Dubai Executive Council.
Oftentimes, there is a business rivalry between the government sector and the private sector. Nevertheless, the government of Dubai aims to destroy the wall and restrain the competition between these two sectors with new rules, terms and conditions under which state entities can frame new organizations.
Sheikh Hamdan clearly stated that the private sector is not a competitor, in fact, they are playing a very vital role in building and developing the future of the national economy. Never that they imagined building competition with the private sector, in point of fact, they wanted to complement with them.
Setting up A Business in Dubai
Sheikh Hamdan bin Mohammed, Crown Prince of Dubai and Chairman of the Emirates had issued the Executive Council Resolution No. (23) of 2020 on Sunday, August 30.
The resolution gives emphasis on the regulation of the procedures for the government-owned companies set-up and ensures that they have strong governance. Government entities will be allowed to set-up companies if the main activities that they will be conducted are aligned with the international best practices. Also, they should contribute to the sustainable development plans of the marketing strategy in Dubai and should offer the said products and services. Economics of strategy is a developing area of economic consulting in which it involves the application of the economic principles and methods which basically helps the clients to foresee the solutions to a specific problem, likewise, it gives the clients the ways to enhance the business’ long-term performance.
For setting up a government-owned business, it should coordinate with the Dubai Department of Finance to prepare a feasibility study for a new enterprise and observe the articles of the UAE Federal Law No. (2) of 2015 on Commercial Companies. Likewise, a competitor analysis must be administered before the submission of the recommendation to the Executive Council.
The principles of fair competition must be upheld by the newly established companies. They will also be restricted to ask for any assistance, specifically financial assistance, from the government. All the taxes and fees, charges and rates under the Federal and Local Laws which they are liable in compensating should be paid by them.
Business Set-up Services in Dubai
In the event that you are thinking of doing a business setup in the UAE, having a business setup consultant is a good way to start your business. Do not worry, for AMCA is here to work for you. We do offer a company formation in Dubai and the rest of the UAE. You can rely on our expertise and experience to take care of the company’s technical and tedious task which requires a lot of documentation and clearances. We will do the paper works, so that, you can focus on innovation & improving your product.
AMCA offers the following: