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How to Secure Your Business License in Dubai

Jul 28, 2023

Securing a business license in Dubai involves several steps and considerations. Dubai offers various types of licenses depending on the nature of your business activity. Here’s a general overview of the process to help you get started. Please note that specific requirements may vary, so it’s essential to consult with the relevant authorities or a business setup consultant for the most up-to-date and accurate information:

Table of Contents

  • Determine your business activity:
  • Choose a legal structure:
  • Trade Name Reservation:
  • Prepare the necessary documents:
  • Submit the application:
  • Obtain necessary approvals:
  • Pay the fees:
  • Obtain your business license:
  • Comply with ongoing requirements:
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Determine your business activity:

Before applying for a license, you must decide on the type of business activity you want to undertake. Dubai offers licenses for commercial, industrial, professional, and tourism activities, among others.

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Choose a legal structure:

Select a legal structure for your business. Common options include:

a. Mainland: Allows you to do business anywhere in the city but may require a local partner (UAE national) or a service agent depending on the business activity.

b. Free Zone: Allows full foreign ownership but restricts business activities to within the free zone and sometimes has specific industry focuses.

c. Offshore: Applicable for international businesses and offers various benefits like tax exemptions but doesn’t permit local business operations.

Trade Name Reservation:

Choose a unique trade name for your business and have it approved by the Department of Economic Development (DED) in Dubai. This ensures that no other company can use the same name.

Prepare the necessary documents:

The required documents may vary depending on the type of business and legal structure. Generally, you will need:
Passport copies of shareholders and managers.
No Objection Certificate (NOC) from the local sponsor or partner (mainland companies).
Memorandum of Association (MOA) for mainland companies.
Tenancy contract for a physical office (mainland companies) or proof of address (free zone companies).
Business plan outlining your proposed activities and financial projections.

Submit the application:

Submit your completed application and required documents to the relevant authority. If you’re setting up in a free zone, you’ll apply directly to the respective free zone authority. For mainland businesses, you’ll apply to the DED or specific economic departments.

Obtain necessary approvals:

Depending on your business activity, you might need approvals from other government entities or regulatory bodies. For example, healthcare-related businesses might need approval from the Dubai Health Authority (DHA).

Pay the fees:

There will be fees associated with the license application and issuance process. The cost will vary depending on the type of license and the location.

Obtain your business license:

Once your application is approved, you’ll receive your business license, allowing you to legally operate in Dubai.

Comply with ongoing requirements:

After obtaining the license, ensure that you comply with all local regulations and renew your license annually.

It’s important to note that the process can be complex, especially for mainland businesses that require a local sponsor or partner. Engaging the services of a professional business setup consultant or legal expert can be beneficial to navigate the process smoothly and ensure compliance with all regulations.

 

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