How to Get an Instant Business License in Dubai?

Dubai is one of the most loved business hubs in the world. If we take a closer look, we will find, it has continuously introduced policies that can make the life of investors easier in Dubai. The instant license in Dubai and other emirates of UAE is one such initiative by the government to help entrepreneurs acquire business licenses within a few minutes. This initiative eliminates the complicated process of company formation that takes no less than a week or even more in some cases. The investors eligible to obtain an instant license can avail of it without delay and immediately start their business activities.

Here in this blog, we will elaborate on the details concerning the issuance and benefits of an instant license in Dubai UAE.

What is an Instant License?

The Instant License is a trade license that can be obtained within minutes. It is available to businesses that seek to carry out commercial or professional business activities in the United Arab Emirates. To avail of the instant License, you will not require to submit the following documents to the Department of Economic Development, Dubai (DED):-

• Memorandum of Association
• Office Tenancy Contract
• Registration of trading name

It is a very attractive opportunity given by the government to the investors in Dubai that allows them one year grace period to conduct business.

What are the Benefits of an Instant License?

Usually, the process of acquiring a UAE mainland business license is comparatively long, depending on the business activities, time of document preparation, etc. Additionally, a tenancy contract / Ejari is essential for a license with routine procedures to be issued.

Here are the numerous benefits that businesses get with the Instant License:-

• License Issued within few minutes
• You can perform business activities and engage in trading immediately
• Lesser paperwork
• First-year of business is cost-effective
• This one year is an excellent opportunity to explore the Dubai market
• Memorandum of Association not needed for the first year
• Tenancy / Ejari is not required for the first year
• Registration of trade name is not essential in the first year
• You can apply offline or online

Once you have completed the process and submitted all the necessary documents, the concerned authority will issue you the instant License. After this, you are eligible to commence your business as per your license permissions.

Who is Eligible for an Instant License?

Any investor or entrepreneur whose business activities do not necessarily need additional approvals or clearance from external authorities and departments are eligible for an Instant License. 

The companies that may need approvals are not eligible. Many trading companies into special activities may require additional approval from specific departments and government bodies (like Dubai Municipality, the ministries, or other departments), and cannot apply for an instant license.

Instant Licenses are available for the following legal structures:-

• Limited Liability Company
• One Person LLC
• Sole Proprietorship
• Civil Company

IMPORTANT: Investors who have to clear CID permission due to sanctions/restrictions in the UAE cannot apply for the Instant License.

What are the Necessary Documents and Information Required for Application?

Investors and business owners applying through outsourced service centres should have a look at the below list:-

• Passport copies of all partners. Make sure all partners are present during the official application process.
• Residence visa copy and Emirates ID
• No Objection Certificate (NOC) from present sponsor/employer (if needed for foreign shareholder)
• Passport copy and Emirates ID of the Local Sponsor
• Individuals applying for a General Trading licence in Dubai should apply for DED e-services and get a Dubai Smart Pass ID.
• Trade name, business activities, Commercial registry, Partners, and managers details too should be submitted.

Investors applying through E-Service will need:-

• There is no need for any additional documents in the online process.
• Those with no existing account can create an account on Dubai ID Smart Pass in-person attendance with original ID
• Details of the trade name, business activities, Commercial registry, Partners and managers are necessary.

What is the cost of an Instant License?

You will get an idea of the cost of an instant license from the below two points:-

Payment Voucher: The payment voucher includes the application fees, reservation of trade name fees, initial approval fees, and fees for license issuance. The cost may vary depending on the business activities, but the minimum cost is about AED 9,000.

Sponsorship Fees: You must have a local sponsor (a Local Service Agent for Civil/Construction Business or Sole Enterprises or a 51% local partner for Limited Liability Companies) for any mainland license in the UAE. The fees of the local sponsor depend on your individual contract with your sponsor.

IMPORTANT

To immigrate to Dubai, an investor can request an establishment card. Once they acquire the card, they can apply for a residence visa.

Instant License is an ideal license option for investors who seek to start a business in Dubai (UAE) with just a license and visa in the first year. They do not need to open a bank account, submit MOA or register a trading name in the first year. However, if they wish to continue their business in Dubai, they will be required to possess all documents after completing one year. Therefore, this one year can be turn out to be very useful for investors to explore the market and business opportunities.

How Can a Business Setup Company Assist You?

Any professional business setup or trade licensing consultant can assist you in obtaining your Instant License in Dubai and advise the best way and the appropriate activities for your company formation. To know more about Instant License setup and other details about company formations, reach out to us –  dubai.burjgate@obkbc.com