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Legal Breakthrough: Dubai Cassation Court Approves Business License Revocation and Transfer

Overview of Dubai Cassation Court Decision

A significant development has unfolded in Dubai, signalling a shift in the UAE business landscape. Resolution No. (1) for the year 2024, issued by the esteemed General Authority of the Dubai Cassation Court, has introduced a groundbreaking change. Now, under certain conditions, it is legally allowed to revoke a company’s business license – a move that was previously prohibited by law.

Historically, a notion existed implying that commercial licenses are treated as holding little tangible value and being immune to legal restraint. This perception hindered business transactions and constrained companies from seeing business licenses as assets. Moreover, the inability to transfer or sell business licenses posed a challenge for business owners looking to adapt or transition their ventures.

The recent resolution from the Dubai Cassation Court challenges this conventional belief by acknowledging the material value inherent in business licenses. It clarifies that these licenses are not merely regulatory permits but integral components of a company’s intangible wealth. This shift in perspective opens up new avenues for businesses, allowing them to capitalize on their licenses by facilitating sales or transfers, subject to official approvals and fee settlements.

Impact of the decision

With this resolution, the Court demonstrates its commitment to adapting to the evolving dynamics of the business world. By recognizing the tangible worth of business licenses and easing restrictions on their transferability, the Court fosters a more dynamic and adaptable business environment in the UAE. Crucially, the court underlines that federal and local regulations within the United Arab Emirates do not impose a blanket prohibition on the sale of commercial licenses.

This decision marks a significant milestone towards a more flexible and adaptable regulation of business license trading in the UAE. Businesses are encouraged to explore the newfound opportunities and consider leveraging their licenses to optimize their operations or pursue new ventures.

How we can assist you

If you encounter any issues regarding commercial licenses, such as concerns about licensing procedures, compliance, or the desire to sell or transfer licenses, you can seek expert legal guidance and support from Lawbridge. With our extensive experience and expertise in UAE business law, Lawbridge stands ready to assist you in navigating these changes and ensuring your compliance with regulations. Do not hesitate to book your free consultation here!


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