Are you looking to start a business in Dubai? One of the first steps you need to take is obtaining a business license. In this article, we will guide you through the process of getting a business license in Dubai and provide you with some important information.
Determine the type of business license you need
Before you start the application process, you need to determine what type of business license you require. Dubai offers several options, including:
- Commercial license
- Professional license
- Industrial license
- Tourism license
- Trade license
Each license type has specific requirements and regulations, so it’s important to choose the right one for your business activities.
Choose a business activity
Once you have decided on the type of license you need, you must choose a business activity. Dubai has various activities to choose from, ranging from retail and consultancy services to manufacturing and tourism.
Choose a business name
Your business name must be unique and relevant to your business activity. It’s essential to check the Dubai Department of Economic Development’s (DED) guidelines to ensure your chosen name is compliant.
Find a local sponsor
As a foreign investor, you need to have a local sponsor or partner who will hold the majority share (51%) in your business. This local sponsor can be an individual or a company and will act as your local agent. It is advisable to seek legal advice to draft a proper agreement to protect your interests.
Prepare the required documentation
For the business license application process, you will need to prepare the following documents:
- Completed application form
- Passport copies of shareholders and sponsors
- Copy of the local sponsor’s national ID
- Copy of the UAE residency visa for all shareholders and sponsors
- No objection certificate (NOC) from the sponsor’s sponsor, if applicable
- Memorandum of Association (MOA) and Article of Association (AOA)
- Lease agreement or Ejari certificate for the office space
Submit the application
Once you have gathered all the required documents, you can submit your application to the DED. It’s recommended to hire a local business setup consultant who can assist you with the application process and ensure all the paperwork is in order.
Pay the necessary fees
Upon submission of your application, you will be required to pay the necessary license fees. These fees vary depending on the license type and business activity.
Obtain necessary approvals
After reviewing your application, the DED will conduct any necessary inspections or approvals. This process may involve other government authorities depending on your business activity.
Receive your business license
Once your application is approved and all the necessary approvals are obtained, you will receive your business license. This license will allow you to legally conduct your business activities in Dubai.
Renew your business license annually
It’s important to note that your business license needs to be renewed annually. Failure to renew your license may result in fines or legal complications. Make sure to keep track of the renewal date and begin the process early.
By following these steps and complying with the regulations, you can successfully obtain a business license in Dubai. Remember to seek professional advice and guidance to ensure a smooth and hassle-free process!