Dubai is a global business hub, and many entrepreneurs have made their way to Dubai to expand and grow their businesses. Starting a business in Dubai can be exciting, but it also requires individuals to follow some legal protocols that can be overwhelming for new entrepreneurs. One of the most crucial steps for starting your business in Dubai is obtaining a business license. However, with the recent development and regulatory framework, it has been made easy for businessmen to get a business license. In this blog, we will discuss in detail How Do I Get A Business License in 5 simple steps. Read the complete blog to learn more.
Step 1: Business Activities
How Do I Get A Business License first and foremost step is to specify your business activities before applying for a business license is necessary. Uae offers a wide range of business activities throughout different sectors that include, trading, manufacturing, etc. You need to specify the business activities you are engaged in to obtain your business license accordingly.
Step 2: Select A Business Structure
The next step is to select the legal structure of the business. Uae recognizes the following types of businesses, which are explained below.
- Sole Proprietorship
- Limited Liability Company (LLC)
- Partnership
- Branch Office
Sole Proprietorship
A sole proprietorship is a type of business that is owned and controlled by a single person.
Limited Liability Company (LLC)
It is the type of company that requires at least one partner for business, which limits the amount invested.
Partnership
The partnership involves two or more business partners to share profits and losses.
Branch Office
A foreign company can establish a branch in the UAE.
Choosing the right business structure will help you make informed decisions regarding your business.
Step 3: Reserve A Trade Name
The next step is choosing a trade name for your business. Remember, the name of your business must comply with the regulations of the UAE government. It should not contain offensive language or references to religious figures. Save your time by choosing at least three names for your business. This will increase your chances of approval and save you a lot of time.
Step 4: Gather Required Documents
The second last step includes gathering all the necessary documents. Some of the commonly required documents include:
- A completed application form
- Copies of passports and visas for all partners
- A Memorandum of Association (MOA) if applicable
- A tenancy contract or lease agreement for your business location
- A no-objection letter from your sponsor (if applicable)
- Any additional documents based on specific business activities
Organizing these documents efficiently will expedite the application process
Step 5: Submission Of Application And Fee
he final step includes submitting the application and fee with all the necessary documents to the right authorities, whether it is the Department of Economic Development (DED), Mainland businesses, or another free zone authority if you are willing to set up your business in a free zone. Talking about the fee. It can vary anywhere between 10,000 AED to AED 50,000.
Other Considerations
While focusing on the five steps mentioned above, you may need to consider some other considerations, which are also discussed below in detail.
- Location
The business’s requirements differ between the mainland and the free zone, so it depends on your choice of location. Some locations, such as free zones, may offer benefits, including tax exemption and full ownership, but they restrict activities outside the specified area.
- Initial approval
Before completing your application, you may need to obtain initial approval from the authorities to confirm that there is no objection to your proposed business.
- Government approval
Depending upon the type of your business industry, government approval may be required.
What happens if my application is rejected?
If your application is rejected, you will receive feedback on why it was not approved. You can then make the necessary changes and reapply.
Do I need any special permits for certain businesses?
Yes, some businesses require additional permits or approvals from specific government authorities (like health or safety departments). Make sure to check if your type of business needs any extra licenses.
Can I change my business activity after getting a license?
Yes, you can change your business activity after obtaining a license, but you must apply for an amendment to your existing license. This process may involve submitting additional documents and paying a fee. It’s important to ensure that the new activity aligns with the regulations set by the local authorities. Always check with the relevant government department for specific requirements related to your situation.
Conclusion
Setting up your business in Dubai by obtaining a business license with Easy Gateway must not be an overwhelming task. By following the five simple steps, you can easily navigate the complex process smoothly. With the right planning, you can easily establish a successful business in the world’s dynamic market. But with so many obtain available in the market, it can be difficult to navigate the best consultant for your business, which is why, at Easy Gateway, we provide business license services to our customers, saving them from the hassle of sole management of the procedure and also providing services in the affordable prices. Get in touch with us to obtain the type of business license you require.