What is Instant License in Dubai?
In July 2017, the UAE Government announced the facility of Instant license in Dubai to enable businessmen in obtaining a Trade license (Commercial or professional) in just one step within five minutes.
The Business Registration & Licensing (BRL) division in Department of Economic Development (DED) in Dubai come up with the option to set up a business in Dubai in just 5 minutes using instant licensing service, curtailing 3 main requirements to make it easy and quick for the investors to register a company in Dubai & start their own business.
Now you can go for business setup in Dubai, UAE in just one step without the need of following three traditional requirements:
- Without Contract/MOA
- Without Trade Name Registering
- Without Rent Contract/ Tenancy Contract
Traditionally, getting a trade license in Dubai may take one to three months or even longer depend on the activity and requirement set by the Dubai Economic Department. Most time taking requirement to meet in forming a company in Dubai is to have a tenancy/Rent agreement for the office space. From choosing a perfect location to finding economical space to run business operations, making it a lengthy procedure. It can be increased by the further time needed to get the approvals from DED to obtain a business license.
Why Should You Go for Instant License Dubai?
- Less Paper Work
- Opportunity to Explore Market
- Award-Winning Service
Until the end of 2018, the Department of Economic Development has issued 1,882 instance licenses in Dubai. All of them were issued in just 5 minutes. Among these 1882 instant licenses in Dubai, 87 per cent (1641) was for commercial categories and rest 13 per cent (241) fall in the category of a professional services company.
The instant license Dubai is introduced by DED to help investors in obtaining a trade license in just 5 minutes, making it easy to invest in Dubai and attracts the investors by offering a one year grace period to do the business without lease agreement and Memorandum of association. Business setup in Dubai provides access to the international market and brilliantly planned infrastructure. This instance license option is offered in line with the vision of making Dubai a business hub of the world.
Terms & Requirements for Getting an Instant License in Dubai
Following are the terms & requirements for businessmen to get an instant license Dubai:
For Online Applications
There are no documents required for online applications.
Other application channels would require the following documents:
UAE National or Expats
The investor(s) must be a UAE national or expats and must have a valid UAE Visa.
All the investors, partners, shareholders or at least one of the partner in the company must be present at the time of applying for an instant trade license in Dubai.
- Passport copies of all the investors, partners, shareholders and managers are required based on the business activity
- For international investors or foreigners, the NOC from the sponsor of the company would be required
- Foreigner will have to provide the copies of their UAE visit visa
Procedure/Steps to Follow to Obtain an Instant License in Dubai
Choose the Legal Form
The very first step information of a company with instant license is to choose the legal form of the business. You may choose among Sole Proprietorship, Limited Liability Company, One person LLC and Civil Company
Choose the Activity
Choose the activity of the company as per the list provided by the Dubai Economic Department
Shareholding Structure of the Company
Specify the partners share in the capital and distribute the partner’s ratio in the profit & loss in the company
Choose a Trade Name
If you have already reserved the trade name for your company, provide it. Else, you can use the automatically generated trade name that will be appeared as a number
Total Value of the Capital
While doing it online, you just need to add the value of the total capital of the company. Rest of the columns will be filled automatically
Once all the above procedure is been done, the payment voucher will be issued in the next step
Pay the Fees
Now proceed with payment. Once it is done successfully, instant license Dubai will be issued
Instant License Dubai Cost
Below find the breakup of Dubai instant license fees:
The initial cost is fixed to AED 3,000 that include trade name reservation, initial approval of business and Dubai instant license fee
Update: On April 26 2020, Dubai Economy revised the Market fees for Instant Licence from AED3000 to AED250.
There is no rental cost of the office space with Dubai instant license. The first year is free of this cost
This fee depends on the legal structure, size and most importantly the type of your business activity
How to Apply for Dubai Instant License Using E-Services
- Use your smart ID or Dubai ID account to access this services using DED portal, new account be can created if you don’t have.
- Choose the instant license option
- Follow the steps and instant license Dubai will be issued in just 5 minutes
Legal Structure of the Company under Instant license Dubai
Currently, all form of legal entities is allowed for business setup in Dubai with instant license option.
Important Things to Remember Before Applying for Instant License Dubai
- Once you are issued an instant license, you will be free to do trade and perform business activities. However, after completion of one year, you will have to submit all the required documents as per DED standard requirements at the time of renewal
- In the case of general trading activity of your business, you can only apply through e-services and choose as LLC company as a legal form.
Still Unsure How to Do? We Can Help You!
There are three channels to get an instant license in Dubai to start a business:
- DED E-services
- Service Centers
- Business Setup Consultants
If you want to know more about legalities, company structure and post company formation procedures, get our help. Jitendra business consultants have experienced business setup advisors for company formation in Dubai & all over UAE. We provide consultancy & advisory services in preparing documents and guidance throughout the process, making sure you are doing everything right.