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Instant License in Dubai

Applying for Instant License in Dubai and UAE

Once as an investor you decide to set up a business activity in Dubai, a due process must be followed as per the company law of the country which will detail out all the important steps that need to be followed in order to set up a business and get it running.

The investor must also decide the type of license that will suit his requirements and also determine the nature of the business activity that is going to be started. Dubai has on offer different types of licenses and the investor has to choose as per the nature of his business activity.

Obtaining a business license is one of the most important steps once the nature of the business activity has been determined. As Dubai has a number of licenses for various types of business, the department of economic development started the process of issuing an instant license in 2018 in order to boost the market within the country.

The main idea behind this step was to attract new investors and make the process easier and simpler for the investors to set up the business within Dubai and UAE.

Instant business licenses in Dubai can be processed through a digital portal that has been set up by the government and instant business licenses can be issued within 5-10 minutes.

Advantages of having an instant business license in Dubai

Applying for a license while intending to set up a business in mainland Dubai is a long process and can take a few months before the whole process can be completed in every sense.

The time period to obtain a business license in Dubai can vary as per the different processes like documentation, company activities, and other requirements of the business.

A general business license also requires tenancy contacts which isn’t the case with instant license as it has been omitted from the requirement of having a tenancy contract of 12 months. This way the investor makes sure that market entry is made possible in a short period of time and also comes at very low rates.

At the same time, the instant license comes with the advantage of enabling an investor to review the market before planning on making bigger expanses.

Initially, when applying for an instant license, it will bear the name of the Dubai municipality as the office address and when reviewed after 12 months a business agreement must be made available to get the business name registered.

An instant license also comes with an advantage to the investor as the naming and approvals are not necessary for starting some initial business activities.

However, while applying for an instant license an investor must make sure that commercial space has been made available and a notarised memorandum of association has been obtained which will eventually confer powers to the manager for opening of bank account and obtain other documents from labor ministry and other departments as may be necessary.

Documents required applying for a business license

  • 1. Passport of every partner and everyone needs to be present while filling for the application form.
  • 2. Copy of residence visa.
  • 3. NOC from the current employer.
  • 4. Passport copy of local sponsor along with emirates ID

Procedure for apply for instant license

  • 1. The first step in the process of obtaining an instant business license in Dubai is to choose the legal entity be it LLC, civil company, or sole proprietorship.
  • 2. Once the legal entity has been chosen, it is time to choose the legal activity for which instant business license can be obtained.
  • 3. Once the activity has been chosen the investor must determine the shareholding of the company.
  • 4. While applying for an instant business license in Dubai and UAE an investor has to choose at least three names.
  • 5. The next step would be to determine the total share capital of the company.
  • 6. Fill in all the application forms.
  • 7. Then submit all the required documents to the concerned department.
  • 8. Once the documents are submitted a payment voucher will be generated.
  • 9. Once the voucher has been generated successfully, complete the payment.
  • 10. After a successful payment has been made, the investor will be provided an instant business license.

The instant business license in Dubai can be obtained only after complete payment has been made in this regard to the concerned authorities.

Instant business licenses in Dubai usually cost around AED 5000 which will include a number of other charges such as application fees, approval fees, trade name reservation fees, and license issuance cost as well.

Applying for an instant general trading license will come at an additional cost of around AED 2000. At the same time, the investor must keep in mind that instant licenses can only be given to individual shareholders while the companies that have corporate shareholders cannot obtain an instant business license.

As in the case of LLC, a local sponsor is a necessity but applying for an instant license can be done if the LLC has been formed using individuals only while later on the corporate shareholders can be transferred due to the necessary condition of having a local sponsor. Further, the instant licenses in Dubai can be obtained for the activities which don’t require any kind of external approvals.

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