Obtaining a business license is necessary for company formation in Dubai. It acts as a gateway to entering the vibrant Emirate market. The traditional method of obtaining a license in Dubai involves undertaking many bureaucratic procedures that often take time. Recognising this, the Dubai administration has introduced a groundbreaking revolution in the form of instant licence.
In this article, we will explore the nuances of obtaining an instant business license, which can help speed up the process of company formation in Dubai.
What is an Instant License in Dubai?
An instant license helps cut the incorporation process and form a company by following minimal steps. In other words, this license allows entrepreneurs like you to obtain it within minutes. You have the option to start your entities in Dubai by issuing an electronic Memorandum of Association (MoA) and through an online website for the first five years.
Benefits of Obtaining an Instant License in Dubai
For obtaining an instant license, you get access to many benefits like –
- Minimum paperwork needs to be submitted.
- You can receive your license within a matter of minutes.
- The application process is simple and easy to follow.
- Minimum fees payable for registration.
- No certifications and approvals are required.
- You receive your insurance policy in hours.
- No rent is payable for the first year as you are allowed to work from virtual offices.
- A trade name and documents like MoA are not required for the first year.
Who can Apply for an Instant License in Dubai?
The business entities that are eligible to apply for Dubai instant license are as follows –
a) Civil Company.
b) One Person LLC.
c) Sole Proprietorship.
d) Limited Liability Company.
However, business activities that do not require additional and external government approvals to operate, can apply for an instant license in Dubai. These companies must obtain approvals from the Dubai Municipality.
Documents Required to Apply for an Instant License
The following documents are required to be submitted while applying for an instant license in Dubai –
- Passport copies of the partners and business owners.
- Copy of the UAE residence visa.
- Emirates ID of foreign partners.
- No Objection Certificate (NOC) from the current sponsor of the residence visa and holding partners.
- Passport and Emirates ID of the local sponsor.
How to Apply for the Instant License in Dubai?
The process of acquiring an instant license is simple and straightforward. They can be completed by applying to the Dubai Economy and Tourism (DET). The steps are as follows –
1. Create an ID
You need to create a Dubai smart pass ID and log onto the account. The Emirates ID must be used for this.
2. Choose Appropriate Legal Structure
You must choose the right business entity whether it is an LLC, civil company, joint venture, etc. It must depend on the nature, choice of business activity, and legal regulations, among others.
3. Choose Business Activity
Select your choice of business activity from the list of activities permitted by DED.
4. Pick a Trade Name
You need to choose a trade name for your company by adhering to regulations laid down by the authorities.
5. Apply for License
You need to apply for the instant license by filling out the application form and attaching the necessary documents.
6. Open Bank Account
You need to open a bank account to help maintain business transactions and facilitate transactions in different currencies.
7. Apply for Visas
The management needs to apply for residency visas of the employees. It is easier to file applications for visas after having the license.
An instant license in Dubai offers various benefits like empowering you to grow your organisation and contribute to Dubai’s economy. If you want to avail the instant license then connect with Commitbiz. We will explain the regulatory framework and enable you to avail of the license by following the necessary process put in place by the authorities. We can also guide you through business setup in Dubai. Reach out to us, and we will be there for you.
Can foreign nationals or non-residents apply for instant license?
Yes, foreign nationals and non-residents are eligible to apply for instant licensing in Dubai. However, depending on the nature of their business activity, they may need to fulfil certain criteria.
Can I operate my business from a virtual office with an instant license?
Yes, an instant license allows businesses to operate from virtual offices in Dubai. However, certain business activities may require a physical presence as per regulatory requirements.
Is there a limit to the number of business activities I can operate for having an instant license?
Instant license allows you to include multiple business activities under a single license, subject to approval from the Department of Economic Development (DED).
Can I transfer my instant license to another individual or entity?
Yes, instant licenses in Dubai are transferable, allowing you to sell or transfer ownership of the business to another individual or entity.