Many investors are looking forward to starting their venture in the United Arab Emirates. Dubai is known as the business hub in the Middle-East, with ease of regulations, taxation policies and ease of doing business. Businesspersons from around the world are looking for jurisdictions which provides them with the ease to do business and with the initiative of Instant License from Business Registration and Licensing (BRL) in DED Dubai it made it easier and quicker.
Let’s quickly go through what an Instant License is in Dubai.
What is an Instant License?
The Dubai Department of Economic Development (DED) launched the initiative of Instant License in the year 2018 to help boost the UAE’s economy by attracting new investors into the market and making it easier and quicker to set up a commercial license in the UAE mainlands. An instant license is processed almost immediately through a digital portal, allowing for business licenses to be issued in 5 to 10 minutes.
Key Benefits of Obtaining an Instant License
The first advantage is you can obtain an Instant License in no time. Usually, the procedure of obtaining a trade license in the mainland UAE is lengthy and can take from one and three months or more, based on the business activities, document preparation time and specific requirements of the business.
A tenancy contract/Ejari is compulsory for the trade license. But an Instant License does not require a tenancy contract for twelve months, which allows the investors to enter the market at a lower cost and enables them to review the business market before committing to a more significant expense. The initial license will have ‘Dubai Municipality’ listed as the office address; once the license is renewed after the twelve months, a registered commercial lease agreement must be presented.
Once to get the instant license, the businesses are legally permitted to begin conducting business activities immediately with a 12-month grace period to run the business without a commercial space agreement and without gaining the fully notarised constitutional documents for the company.
Are You Eligible for Obtaining an Instant License?
Anyone apart from private/public shareholding entities can apply for an Instant License including general trading firms. Instant licenses offer the following legal structures –
Obtaining an instant license is only possible for individual shareholders, they cannot be received for companies that have corporate stakeholders, so in the case of a Limited Liability Company the 51% local sponsor must be an individual UAE national, and the 49% must be an individual. The LLC can be formed using individuals initially and then corporate shareholder can be transferred besides, instant licenses only apply for activities which do not need any external approvals.
Only foreign stockholders with a legal UAE residence visa and Emirates ID can apply for an Instant license and will need to apply for a UAE Smart Pass to be able to complete the online application process.
Procedure to Obtain an Instant License in Dubai
There are a few steps that must be initiated to get an instant license. They are –
- Choose a corporate entity form from the types mentioned above
- Choose a business activity from the list of the available activities in DED
- Select the structure of shareholding of the company, including a company manager
- Choose a trading name
- Determine the total share capital of the firm
- Complete filling necessary application forms
- Submit the required documents
- A payment voucher will be generated
- Pay the fees
- An instant license will be issued
All the shareholders must be present while applying for the license
The documents required as mentioned in step 7 are as follows –
- Passport copies of all the shareholders
- Residence visa copy and an Emirates ID
- NOC from current sponsor/employer (if required for foreign shareholder)
- Passport copy and Emirates ID of Local Sponsor
- Individuals applying for a General Trading license in Dubai will need to apply for DED e-services and obtain a Dubai Smart Pass ID
How can we help?
We at Commitbiz Management Consultants are a platform to help you incorporate a business in the UAE. We can also assist you to obtain your instant license in Dubai and can recommend the best method and the right activities for your particular incorporation. Commitbiz experts can also act as your secure local sponsor for the instant license to ensure that you fully own and control the business. For more information, contact us today.