Establishing your business in Dubai will prove to be a money-spinning venture considering its strategic location, vibrant economy, and law friendly to business. But a prerequisite for setting up a business in this thriving market involves getting a business license. Acquire the insights and answers to some of the Frequently Asked Questions as you read, which will make it easier on how best to get a Dubai business license
1. Why is a Dubai Business License Important?
A business license in Dubai is important for the following reasons:
- Legitimacy: Legal operation and gaining credibility with clients and suppliers.
- Compliance: Adherence to local laws and regulations, which is very instrumental in carrying out business.
- Access to Opportunities: The license also helps in getting government contracts and taking part in local tenders
2. Types of Business Licenses in Dubai
Before initiating the process of registration, there is a need to understand the type of licenses a business can get in Dubai:
- Commercial License: This license is for trading and retail businesses.
- Professional License: Covers all service-based businesses and freelancers.
- Industrial License: Meant for manufacturing and industrial activities.
- Tourism License: For those businesses dealing with tourism and hospitality
3. Steps to Obtain a Dubai Business License
Here is a detailed step-by-step guide to obtaining your business license in Dubai:
Step 1: Determine Your Business Activity
Determine your license type as per your business activity. For the complete list of activities, please contact the Department of Economic Development, DED.
Step 2: Select a Business Name
Select a unique and appropriate business name that complies with Dubai’s naming conventions. The name must reflect the nature of the business operation and be unique.
Step 3: Initial Approval from DED
Seek an initial approval from DED. This entails the following: Completing an application form Submitting all the needed documents-a copy of your passport, a proposed name for the business, among others.
Step 4: Draft a Memorandum of Association
The Memorandum of Association should outline the kind of business and how it will be conducted. The document is very important, particularly for LLCs
Step 5: Find a Place of Operation to Rent
Get a physical office or business location in Dubai. You need a tenancy contract, which is actually a pre-requisite for the license application.
Step 6: Obtain Approvals
Depending on your type of business, you may still have to get an additional approval from relevant authorities. For instance, if you open a restaurant, you may need approvals from the Dubai Health Authority DHA.
Step 7: Get Your Business License
Once all documents and approvals are in place, submit your application for a business license with the DED. You shall: Pay the due fees, Submit the application, duly completed, with all supporting documents.
Step 8: Get Your Business License
Once approved, you shall get your business license. Congratulations, you can now start your business in Dubai!
4. Questions/Answers – Getting a Dubai Business License
Passport copy.
A proposed business name.
No-objection certificate regarding initial approval
MOA, if applicable.
Tenancy contract.
The time period ranges from some days to weeks; it depends upon the type of business you are dealing with and the approvals required
The cost, on average, ranges from AED 10,000 to AED 15 000, but this would depend on the type of license, the nature of your business, and your location
5. Tips for Success
Seek the Advice of a Business Advisor: Licensing could be too complicated to handle on your own. Getting the services of a local business advisor will make the process easier and faster and will ensure that the venture follows all the regulations.
Be Knowledgeable: Be prepared to acquaint yourself with any change in business laws and regulations of Dubai.