Complex Made Simple

Mohammed bin Rashid issues Law on practicing economic activities in Dubai

The new Law amended Articles No. (4), (6), (19) and (31) of the Original Law.

In his capacity as Ruler of Dubai, Vice President and Prime Minister of the United Arab Emirates His Highness Sheikh Mohammed bin Rashid Al Maktoum has issued Law No (14) of 2015 partially amending Law No (13) of 2011 on the organization and regulation of economic activities in Dubai and referred to hereafter as the Original Law.

The new Law amended Articles No. (4), (6), (19) and (31) of the Original Law which include the authorities and responsibilities of Dubai’s Department of Economic Development, licensing, establishment’s obligations and settlements by conciliation.

The new Law defined the authorities and responsibilities of Dubai’s Department of Economic Development to include: establishing the rules and regulations for licensing, registering and listing businesses in the commercial register, organizing and regulating economic activities in Dubai including retail sector.

Further, Dubai’s Department of Economic Development is responsible for describing and classifying economic activities according to the world’s most advanced systems, issuing commercial permits for advertising and marketing activities, regulating working hours for businesses and attestation of companies’ article of association and their amendments, duly.

The Law also authorizes Dubai’s Department of Economic Development to establish, operate, oversee and enforce an electronic system to measure sales volume. Dubai’s Department of Economic Development is also competent to inspect violation of intellectual property rights, combat commercial fraud, manage trademarks and protection of trademarks, consumer protection and monitor and inspect commercial entities including retail outlets to insure abidance to applied laws and licensing terms and conditions.

Article (6) of the Law stipulates that no natural or moral person may practice economic activity in the emirate of Dubai unless though a duly registered establishment and after obtaining a license from Dubai’s Department of Economic Development and the Department.

The Law also prescribed the commercial establishment’s obligations to include: abidance to all laws, rules, regulations and resolutions applied in the emirate of Dubai, informing the Department within ten days about any change, update or amendment occurs in the establishment’s information or legal documents submitted upon registration, using the commercial name approved on the establishment’s license in all business transactions and enabling the Department’s employees to enter the establishment’s facilities, review its records and perform his legal duties.

The Law also obliges the establishments to submit any data, information and/or statistics to Dubai’s Department of Economic Development upon request, declare and register its selective country of origin and abide to the Department’s decisions on violations within the period of time granted.

Pursuant to Article (31) of the Law, Dubai’s Department of Economic Development may enter settlements by conciliation with the violating establishment conditionally the establishment submits a request for settlement within six months from the date of violation, discharges 50% of the fine due and enjoys a one-year clear record of similar violations starting from the date committing the violation subject to the settlement. The establishment must abide to the settlement’s terms and conditions within the period specified by Dubai’s Department of Economic Development otherwise the settlement is considered null.

This Law annuls any other legislation that contradicts or challenges its provisions. The Law is to be published in the Official gazette and considered valid from the date of publication.