If you want to form a company in the United Arab Emirates, the first thing you must acquire is a license to operate in the country. The UAE offers a wide variety of licenses, each one specifically created for a different productive activity. Among the licenses, you can find the tourism license, industrial license, and more. In the following lines, we will know in depth about the Instant License in Dubai.
In this article, you will get information on how to acquire an Instant License, what are the necessary documents to get one of these licenses, what is the cost of an Instant License and how we can help you obtain this license for your company.
- What is an Instant License in Dubai?
- How to acquire an Instant License in Dubai?
- Detailed process to obtain an Instant License
- Who is eligible to acquire an Instant License?
- Required documents to apply for an Instant License
- What is the cost of an Instant License in Dubai?
- Advantages of obtaining an Instant License
- How can we help you with the application process for an Instant License in Dubai?
1. What is an Instant License in Dubai?
Dubai is popular for its role as the business hub in the Middle East and for its ease of doing business procedures. Entrepreneurs around the world see this as an opportunity to do business easily and efficiently.
The creation of initiatives such as the Instant License (sponsored by the Business Registration and Licensing (BRL) in the Department of Economic Development in Dubai) has made it quicker for investors to start their businesses
The Instant License in Dubai is, basically, an express form to acquire a commercial or professional license without the need for the usual approvals or a large amount of documentation. The Department of Economic Development (DED) is the authority in charge of issuing regular licenses and Instant licenses.
The main difference between an Instant License in Dubai and a regular license is that when applying for an Instant License you will not need to register a trade name, make a Memorandum of Association or take out a tenancy contract.
The process to apply for this license is very straightforward. In fact, in just five minutes you can have the entire process completed online.
2. How to acquire an Instant License in Dubai?
As shown above, the process of obtaining the Instant License is one of the fastest and most straightforward that exists. Just by completing a series of steps and submitting certain minimum requirements, you can acquire this license.
The steps necessary to carry out the application process for an Instant License are the following:
2.1 Select the business activity
The first step you must take when forming a company in Dubai is to decide the productive activity that you are going to dedicate yourself to. Note that this activity must belong to the list of activities accepted by the Department of Economic Development.
The Instant License in Dubai covers more than two thousand activities set out by the DED. It covers every industry imaginable so you will likely find one that suits you.
2.2 Choosing your company name
The next step, before making your application, is to choose a company name. There are certain things that you must take into account in this process, and many of them do not apply anywhere else in the world.
When starting the process of forming a company in the UAE, you must submit to a strict set of naming conventions. In other words, you should avoid any kind of offensive or blasphemous language. You should avoid using names that bear resemblance to large organizations, and if you are naming your company after yourself, remember that you cannot use abbreviations. For example, Jake Long Consulting, instead of J Long Consulting. Also, you must make sure that the chosen name is available to register.
2.3 Making your license application
Once you have decided on the name of your company and the productive activity, it is time to apply for your license. This can be done online via the e-channel portal or by visiting a service centre.
The process is extremely fast. In fact, it should take no longer than five minutes. And you will only need to submit some minimal documents.
As part of the application, you must provide the following information:
- Partners and managers
- Commercial registry
- Name of the company
2.4 Making your visa application
To work in the United Arab Emirates you must have a valid residence visa. Just like every employee who works in your company.
With the right guidance, your visa application process can be incredibly straightforward. Connect Zone is the ideal business setup agency to accompany you in this process, as well with your license application.
By obtaining a UAE business license, you have the benefit of being able to sponsor other people for their visas too. These people can be parents, spouses, or children. Or, they can even be a domestic worker, such as a housekeeper.
The maximum number of visas you can purchase will depend on the size of your company, your chosen setup, and for dependent visas, your personal earnings.
3. Detailed process to obtain an Instant license
A more detailed look at the process of obtaining this license is the following:
- Select the legal type (business structure) LLC, sole proprietorship, or civil company.
- Select the business activity from the list of available activities.
- Choose the shareholding structure of your company
- Select the trade name options
- Decide that share capital of your company
- Complete the required application forms
- You will review a payment voucher
- Make the payment
- Receive the instant license
Once you receive the license, automatically you:
- Instantly become a member of the Dubai Chamber (if your business conducts some commercial activity)
- Receive an establishment card from the General Directorate of Residency & Foreigners Affairs (GDRFA), for an additional fee.
- Get three work permits from the Ministry of Human Resources and Emiratisation.
4. Who is eligible to acquire an Instant License?
All productive activities that do not require additional approvals or clearances from external departments and agencies can apply for an Instant License.
Companies that need approval from Dubai Municipality, the ministries, or any other government department cannot apply for this license.
Sole proprietorship, Civil Company and Limited Liability Company (LLC) operating in certain productive activities are eligible for an Instant License. If you want to know more about the eligibility criteria, you can contact us and we will gladly assist you.
5. Required documents to apply for an Instant License
The documents required to acquire this license differ depending on the channel through which you apply for the license.
If you make the application through the DED’s E-service platform, the documents will be the following:
- Emirates ID to create an account and get a UAE Pass ID (for those individuals who do not have an account)
- No additional documents required
If you make the application through the service centers, smart lounge, happiness lounge, the required documents will be the following:
- Passport copies of all managers and partners (all partners or at least one must be present at the service center to apply for the license)
- No objection letter from the current sponsor of residence visa-holding partners
- Emirates ID and Passport copy of the local sponsor
- UAE visit visa copy of foreign partners (if you do not have a residence visa)
- Emirates ID and UAE residence visa copy of foreign partners.
Note that the no objection letter from a sponsor is not necessary if you are applying for a general trading license.
6. What is the cost of an Instant License in Dubai?
Once you have completed the application process for your Instant License, the DED will give you a payment voucher. This voucher will include the fees for the trade name, reservation, iHnitial approval, and the issuance of the license.
The cost of the license will vary depending on the productive activity of your company. However, a fixed market fee of AED 3,000 will apply for all types of productive activities.
To support and motivate entrepreneurs during the Covid-19 pandemic, the government of the United Arab Emirates has reduced the market fee to AED 250. This amount applies during the first year. From the second year, the renewal fee will be 2.5% of the rent of your commercial space.
6.1 Sponsorship fee
If you decide to establish your company on the Mainland, then you must have a local sponsor. The amount of the sponsorship fee will be based on mutual agreement between you and your local sponsor.
7. Advantages of obtaining an Instant License
The process to acquire any trade license in the United Arab Emirates is lengthy. It can last between one and three months or more, depending on the productive activity, the preparation of the documents, and the time and the specific requirements of the company. In addition to this, it is necessary to carry out an Ejari/Tenancy contract for the license to be issued.
This is when the advantages of the Instant License in Dubai can appear. This license does not require a tenancy contract for twelve months. This allows entrepreneurs to enter the market at a lower price and allows them to check the business markets before making larger investments.
The initial license will have “Dubai Municipality” registered as the office address. When the license is renewed after twelve months, a registered commercial lease agreement must be presented and delivered to the corresponding authorities.
The instant license also removes the trade name and initial approval prior to license issuance for certain activities. Once the Instant License in Dubai is issued, the companies are legally authorized to operate their activities with a twelve-month grace period to run the company without the need for a commercial space agreement. Besides, it will not be necessary to obtain the fully notarized constitutional documents for the company. For example, the Memorandum of Association (for twelve months).
7.1 Important long-term aspects
Note that, in order to the company to employ people, the company will need commercial space. The Ministry of Labor is the entity in charge of ensuring that the company has sufficient space to obtain the Labor Quota.
Also, after the period of twelve months, the company will need to obtain the notarized Memorandum of Association (MoA) to convey powers to the general manager and be able to open a corporate bank account. In addition to this, you will need the MoA to open additional documents with the Ministry of Labour, Immigration, and any other government departments that may be required for additional regulatory steps.
In summary, some of the benefits you get when you purchase an Instant License in Dubai are the following:
- Issued very quickly (5-10 minutes)
- The registration for the trade name is not needed for the first year
- Obtained on the same day
- Memorandum of Association not needed (for the first twelve months)
- Online or in-person application
- A rent contract is not a requirement for the first year
- Start business operations immediately.
- Cost-effective business setup formalities
- Simple and easy online application
8. How can we help you with the application process for an Instant License in Dubai?
Each company in the United Arab Emirates has a different objective and productive activity. However, in order to operate legally in the country, no matter what activity you carry out, it is necessary to have a license.
Connect Zone is the ideal business setup agency to accompany you and advise you at every step of the process of setting up your company. We take care of carrying out all the procedures related to the Instant License in Dubai, we will take the position of a local agent if you need it, and we will also comply with each step to obtain the visa of your preference.
Do you want to know more about how to obtain an Instant License in Dubai? You can contact us by calling us at +971 43 316 688 or at the following email firstname.lastname@example.org where one of our advisors will answer all your questions.
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