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How to Procure Business License in the UAE?

Obtaining a business license in the UAE is one of those steps in the process of company formation. Without completing this step it won’t be possible for you to conduct any business activities in the UAE. Today, getting a business license is not at all a tough task. With the help of the facilities provided by the government, obtaining a business license in the UAE is easier than ever before.

To set up a company in the UAE, you must be aware of the process to obtain a business license, the documents required and the cost involved. As you read further, you will find all the important information related to a business license in the UAE.

What are The Types of Licenses Offered by The UAE Government?

The UAE government offers mainly 3 types of licenses:

Commercial License

If you plan to sell or buy commodities in the UAE, a commercial license is a must to do so. To have a commercial license is mandatory to conduct any type of trading activities within and outside the Emirates. A few prominent business activities that make use of commercial license are trading of goods and commodities, import-export, logistics, real estate business, etc. The license is issued by the DED. 

Industrial License

As the name suggests, this license is essential for all the businesses who want to conduct industrial or manufacturing activities in the UAE. A few major businesses that require an industrial license are oil and petroleum manufacturing, manufacturing of metals, chemical production, etc. 

Professional License

If you’re skilled in one particular profession or activity and wish to sell your services, you will need a professional license. A professional license is mandatory for all the service providers such as consultancy firms, professionals like doctors, teachers, lawyers, carpenters, cleaning service companies, etc. 

Tourism License

The UAE government also provides a separate license for tourism businesses. The reason being, the country is known for rich and attractive tourism annually. It is always crowded and ample people from across the seas come to visit the country every month. In such times, the country sees a huge rise in demand for staying, tour guiding, and hospitality services. This is why the government of the UAE offers a special tourism license for conducting any business under the tourism sector. Businesses like hotels, restaurants, travel agents require a tourism license to provide quality services. 

What are the Steps to Obtain a Business License in the UAE?

To acquire your business license, you must follow the given steps below:

1.) Outline Your Business Activities

The first step is to list out the business activities you want to conduct in the UAE. You need to choose from the list of activities provided by DED. The business activities you choose will determine the cost involved in the business setup. Note that you won’t be allowed to conduct any of the activities apart from those selected by you. You can get in touch with business consultants in the UAE to help you figure out suitable business activities for your company.

2.) Choose Company Name

The next step is to decide on a company name. In the UAE, there are certain rules every company must adhere to while selecting a name for their company. The name must not include any foul or controversial words. The name you choose should not be hurtful or mention anything about any religion or cast. Remember to use the full name of the person if you wish to name your company after that person. Once done, submit the required documents with DED for name approval. 

3.) Fill Out the Business License Application Form

Now that you have decided on your activities and selected your trade name, you can apply for a business license in the UAE. You can directly apply for a business license with the DED or submit required documents and applications with concerned free zone authorities of the location you choose to set up your business. Once you submit the application form with the required documents attached, you will get the initial approval.

4.) Choose a Location 

Decide on a location to set up your business in the UAE. You can either set up your business in the mainland region or a free zone. Accordingly, you can rent an office space in the region and apply for a tenancy contract with Ejari. Don’t forget to generate your unique Ejari number which will be using for future references. Without a tenancy contract and Ejari number, you won’t be provided a business license. 

5.) Submit Final Documents

Now you have to submit the final and pending documents. Once they’ve been inspect, the DED will send you a confirmation email to the address you provide. Make sure to double-check all the documents before submitting them to the DED. 

6.) Get Your License

Once all your documents are approve, you can receive your business license from the DED. You need to pay the required fee for the license. You need to initiate payment through the payment voucher shared with you in the mail. Make sure to complete the payment within 24 hours of collecting your business license. 

What is the List of Documents to be Submitted?

The list of documents you need to submit to get a business license in the UAE is as follows:

  1. An application form, properly filled and signed by all the business partners.
  2. A Memorandum of Association signed by all the shareholders.
  3. Company name approval letter from the DED.
  4. Passport and Visa copies of all the partners and employees.
  5. Copy of tenancy contract.

The Commercial Registry Authority will inspect all the documents. Your company name if approve will be added to the commercial registry. If all is in place, the DED will issue you a business license. It is valid for one year, and to get it to renewing, you need approval from the concerned authorities. 

What is the Cost of a Business License in the UAE?

A business license in the UAE can cost you around AED 30,000 to 40,000. This cost can vary depending upon several factors like the location you choose and your business activities. 

Connect With Shuraa

If you too wish to set up a company in the UAE, you don’t have to sweat over it anymore. With super flexible and top-class facilities by the UAE government and with help of a business consultant, you can easily set up a company in the UAE. Expert business consultants at Shuraa Business Setup can help you with the company formation process in the UAE. We can lend you a helping hand to arrange all the necessary documents. All you have to do is call us and leave it to us. We will take care of it all and acquire your business license in the UAE at the minimum possible rates. 

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