Dubai is well-known for its ease of doing the business procedure and a business hub in the Middle East. Businesspersons around the globe are looking for jurisdictions which provide them with the ease to do business. With the initiative like Instant License from Business Registration and Licensing (BRL) in the Department of Economic Development (DED) Dubai, it has made it quicker for investors to open their businesses in Dubai.
What is an Instant License?
The DED Instant License in Dubai was launched in the year 2018 to help boost the UAE’s economy by attracting investors into the market and making it easier and quicker to set up the commercial license in the Mainland UAE. An instant license is processed almost immediately through a digital portal, allowing for commercial licenses to be issued in five to ten minutes. It is a one-step procedure that does not necessitate having either the Memorandum of Association (MOA) or the rent contract for the first year. These documents must be submitted only upon the renewal of the license.
Who can apply for an Instant License in Dubai?
Only a few legal entities can apply for this license, namely-
Note that the Instant License is also given to those businesses which do not need external approval.
Benefits of Obtaining the Dubai Instant License
The procedure of obtaining any trade license in Dubai, UAE, is lengthy. It can take from one to three months or more, depending upon the business activities, document preparation, and time and specific requirements of the business. Apart from this, a tenancy contract/Ejari is also mandatory for a license to be issued.
That is where one can see the advantages of obtaining an Instant License. An Instant License does not require a tenancy contract for twelve months, which allows investors to enter the market at a lower cost and enables them to review the business market before committing to more significant expenses. The initial license will have ‘Dubai Municipality’ listed as the office address, and once the license is renewed after twelve months, a registered commercial lease agreement must be presented.
The instant license also does away with the Trade Name and Initial Approval stage before issuance of the license for certain activities.
Once an Instant License is issued, companies are legally permitted to begin conducting business activities immediately with a twelve-month grace period to run the company without a commercial space agreement and without obtaining the fully notarized constitutional documents for the company – Memorandum of Association (MOA).
It is vital to note that, in order for the company to employ people, it will need commercial space, which the Ministry of Labor must ensure that the company has sufficient space in order to obtain a Labor Quota. The company will also need to obtain the notarized MOA to convey powers to the General Manager to open the business bank account, and to open additional files with Immigration, Ministry of Labor and other government departments that may be required for additional regulatory steps.
In short, the benefits of obtaining an Instant Trade License Dubai includes –
- Issued in a very less time (5-10 minutes)
- Obtained on the same day
- Start business operations immediately
- Trade name registration is not needed for the initial year
- MOA not needed for the initial year
- No rent contract required for the first year
- Online or in-person application
How to Obtain an Instant License in Dubai?
One can apply for this license through different ways. Like,
- Applying via e-services. Here the process does not require any additional documents. the only requirement is personal attendance with original ID to create account on Dubai ID SmartPass
- Applying via service centres like Happiness Lounge, or Smart Lounge. Here, all the business partners or one of them must be present at the service centres to apply for the license. the documents to be provided includes passport copies of all the license parties (partners and managers), copy of residence visa and NOC issued by the sponsor for foreign parties and copy of visit visa to foreign parties
- Taking help from the business setup consultants in Dubai like Commitbiz. Under this, one doesn’t have to worry about anything, the consultants will take care of the registration process while the license party can concentrate on the business operations.
Procedure of Obtaining an Instant License in Dubai?
The process to obtain Instant license is straightforward and easy, and includes –
- Choose your legal entity form: LLC, Civil Company or Sole Proprietorship
- Select your business activity from the list of the available Instant Licence DED activities
- Determine the structure of shareholding of the company, including a company manager
- Choose three trade name options
- Determine the total share capital of the company
- Complete all necessary application forms
- Submit required documentation
- A payment voucher will be generated
- Make payment
- The instant license will be issued
What is the Cost of Instant License in Dubai?
The instant license Dubai cost will include a single payment voucher fees for initial approval, trade name reservation, and issuance of the license. The cost of the instant license will differ depending on the activity of your company. However, a fixed Market Fee of AED 3,000 applies to all types of business activities.
How can Commitbiz help you?
Our consultants at Commitbiz are well-versed with the legal process and can make the license registration hassle-free. We have 13+ years of experience in this field and can advise the best approach and the right activities for your particular company formation in the UAE. Contact us today for more information.