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Apply for an Instant License in Dubai in 2023

May 18, 2022by Kate Williams0

Many investors and entrepreneurs keep looking for ways to make smart investments in the UAE. In this regard, they need to obtain a license to run their operations in the country. Since the UAE Authority aims to encourage business set up, introduced the Instant License in Dubai. This document is very important for establishing your company in no time and being able to carry out your tasks smoothly.

In this article, you are going to learn everything about the DED Instant License. You will understand its benefits, eligibility, and how to apply for it. Let us observe:

1. What is the Instant License in Dubai?

As you probably know, to establish your business in the UAE you need to get a trade license. There are several categories, but the main ones are commercial, professional, tourism, and industrial license.

The license should be related to the activities you are going to perform in the UAE with your company. Thus, you have to select carefully the type of license. Moreover, you have to submit documents and go through a process to obtain these documents.

Although it is a pretty straightforward process and you can obtain your license in less than 4 weeks, some investors may require to set up their businesses as fast as they can. For this reason, the UAE Government established the new Instant License in Dubai.

With the instant license, you can obtain your trade license in just minutes. The whole process is done online and it offers many benefits. Such as eliminating the paperwork and legal formalities you have to go through to obtain the document.

However, it is important to understand the eligibility and the process to know if you can apply for it.

2. What are the benefits of applying for an Instant License in Dubai?

The Instant License in Dubai has some differences from the traditional application process for a Trade License. It has many benefits for investors and entrepreneurs, and for this reason, it is gaining more popularity.

The advantages it offers are the following:

  • Easy application process
  • Fast issuance since it only takes minutes to apply
  • No need for going through complicated processes like obtaining a tenancy contract or Ejari.
  • You do not need to lease office space to apply for the first year of operation
  • You are allowed to run your business from a virtual office for the first year
  • Minimal documentation
  • No need for external approvals
  • It is not mandatory to register your trade name
  • It is a cost-effective business setup process
  • You do not need to prepare the company’s statutory documents

3. Which documents do you need for an Instant License?

Once you understand all the benefits that the instant license can give you, it is also important to know what documents you will need to apply. But, keep in mind that you also have to check the Instant License in Dubai activities, to confirm that you are eligible to apply.

When it comes to the documentation needed, it depends on the channel you are going to use to apply. This is because you can apply online or in person. Here we have the documents you will need for each case:

3.1 Documents for the Instant license applying online

The DED has an e-Service platform from which you can carry out several activities without needing to attend the site in person. In case you are considering getting the e-Trader License in Dubai you will need the following document:

  • Original Emirates ID

This is the only document you will need to start your application. With the Emirates ID, you will create an account and after that, you will receive a UAE Pass. This is in case you do not have an existing account. If you already have an account you can skip this process and start the application.

3.2 Documents for the Instant License Applying in person

Although one of the advantages of the Instant License is that it gives you the option to apply online, you can also do it in person. Perhaps you want to get assistance in the process, and the best part is that you have many options.

You could go to Service Centers, Happiness Loungers, or Smart Lounge, to start your application. At least one of the partners must be present to apply for the license. In this regard, the documents you will need are the following:

  • Passport copy for each shareholder and manager
  • Copy of UAE Residency Visa for foreign partners
  • Emirates ID of foreign partners
  • UAE Visit Visa copy for foreign partners if they do not have residency
  • NOC (if applies)
  • The local sponsor should present his/her passport copy and Emirates ID

In case you are going to apply for General Trading, you do not need to submit the NOC.

4. How can you apply for the Instant License?

Applying for an Instant License is a very simple process. It is even more straightforward than the traditional process.

4.1 Business activity

The first thing you have to do is check the DED Instant License activities. If your type of company and business activity is eligible for application, then you can start. It is important to check this first so you do not start the process and later realize you are not eligible.

4.2 Select the legal structure

Determine the type of legal entity you want to incorporate in the UAE. Keep in mind that you could only select an LLC, LLC-SO, Civil Company, or Sole Proprietorship to apply for this license.

During this step, you also have to consider the share capital of your company and the shareholding structure.

4.3 Trade name

Select at least three trade name options for your business. Make sure to follow the guidelines established by the UAE, so you cannot include initials or religious references in your company’s name.

4.4 Complete the application

Provide the required information in the application and complete it carefully before submitting it. You also have to submit the required documentation.

4.5 Make the payments

After submitting everything, you will receive a payment voucher with the cost of the instant license. You will have to make the payment, and after that, you can receive your instant license.

4.6 Additional steps

Once you get your instant license, if you engage in a commercial activity, you become a member of the Dubai Chamber. You can also receive an establishment card issued by the GDRFA, but you have to pay an additional fee.

You can also receive three work permits from the MoHRE so you can start hiring employees for your business. In case you want to manage the finances of your business you can also consider the Instant License in your Dubai bank account. You can open a corporate account easily with any of the UAE banks that are available.

Another important aspect you have to consider is that after a year you need to rent a physical office for your business. You will have to provide the company’s statutory documents and rent contract when you renew your business license.

5. Who can apply for the Instant License?

Companies that work in the commercial or professional sector are the only ones allowed to apply for the instant license issued by the DED Dubai.

Nevertheless, even if you operate with a commercial or professional license, you cannot apply if you need external approvals. When we refer to external approvals we mean additional approvals issued by the government or government-approved agencies.

For example, if you are going to set up a business, but you need approval from the Dubai Municipality, from any of the ministries of the UAE, or any other department, then you cannot apply.

Moreover, only the following types of companies can apply for this license:

  • Limited Liability Company: this legal structure has at least two shareholders and a maximum of 50.
  • One Person LLC: as its name implies, it is an LLC formed by just one person.
  • Civil Company: this type of entity has 2 or more shareholders and it operates under the professional license:
  • Sole Proprietorship: any individual that wants to offer his or her services with a Professional License can have 100% ownership of his or her business by incorporating a Sole Proprietorship. It is a professional company incorporated by a single person.

5.1 What are the activities allowed with the Instant License?

It is important to know which business can apply for this document. To know this, you have to consider the Instant License in Dubai activities so you can determine if you are eligible to apply.

In this regard, the activities under this type of license are those that do not require external approval. You have to check if your business activity is included in the list of the DED Instant License activities.

Businesses that carry out commercial or professional activities are the ones that can obtain this type of license in minutes. However, not all of them can apply. First, you have to check if you need any additional approvals. If you do, then you cannot apply for the Instant License.

6. What is the cost of an Instant License?

When it comes to the DED Instant License cost, it is important to know how much you will need to pay. Investors know that this is a cost-effective option to the traditional process, but it is crucial to know the Instant License in Dubai fees to determine if it is worth applying.

In this regard, the Instant License Dubai fees are summed up in a single payment. This means that for a single fee you will pay everything so you can get your license.

The DED Instant License cost is AED 3,000. This cost is included the trade name registration, the initial approval, and the issuance of the license. Nevertheless, you have to include the cost of the visa application and the rental of the virtual office.

Moreover, you also have to take into consideration the sponsorship fee. In case you are considering establishing a Mainland business, you need to find a local sponsor and agree on the fee amount.

7. How can Connect Middle East help you obtain your Instant License in Dubai?

Here in Connect Middle East, we want to help you obtain everything you need for your business. Our team of specialists can help you with your application for the DED Instant License. We can advise you on the criteria for applying and determine if you are eligible.

Our goal is to assist you to incorporate a successful company in the UAE. With our wide range of Business Licensing Services and Corporate Sponsorship Services, you can be sure you are going to get an excellent result.

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Are you interested in setting up a business fast in the UAE? Do you need assistance with the DED Dubai? We can solve all of your needs and requirements so you can obtain the license and documentation to run your business. Feel free to contact us at +971 43 316 688 and our team will gladly answer your doubts. If you feel more comfortable sending an email, you can write us at contact@c-uae.com.

Kate Williams

Kate is the Global Strategy Director at Connect Group. She is specialized in business setup in dubai , international business expansion and employee relocation. She studied in Southampton (United Kingdom) and moved to the UAE in 2014.

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