8 Special Business Licenses for Mainland Company Formation in Dubai
The Dubai Department of Economic Development (DED) serves as the regulatory body for business licensing and governance in mainland Dubai. In order to foster trade and entrepreneurship, DED offers a range of business license categories that enable investors to engage in diverse business activities within Dubai and the UAE.
Let’s take a closer look at the special business license categories issued by DED to foreign investors, enabling them to establish and operate their businesses successfully in the UAE.
Different Types of Special Business Licenses in Mainland Dubai
1. Instant License from DED
The Department of Economic Development (DED) has issued 1882 instant licenses through its Business Registration and Licensing (BRL) sector by the end of 2018. The majority, accounting for 87% of the total licenses issued, are for commercial purposes, while the remaining 13% are categorized as professional licenses.
Effortless and Swift License Issuance in Dubai
The instant license is issued within 5 minutes, streamlining the process into a single step. No lease contract or physical office location is required for the first year. Additionally, the instant license provides the option of an electronic contract, in addition to the physical license, and facilitates entry into the DED’s commercial registry. Furthermore, the licensee gains instant membership in the Dubai Chamber, along with establishment cards from the Ministry of Human Resources & Emiratization and the General Directorate of Residency & Foreign Affairs. Four legal forms of businesses can be established: Limited Liability Company, One Person LLC, Sole Proprietorship, and Civil Company.
Characteristics of Instant License from DED
Investors should take note of the key characteristics of the Instant License issued by the DED. The Instant License needs to be renewed annually, and after the first year, it is important for the owner to ensure that the company complies with the general requirements of a mainland company.
Characteristics of the Instant License for the first year of business include:
- – No Memorandum of Association (MOA) is required in the first year.
- – Trade name reservation is not necessary as an automatic name will be generated.
- – A No Objection Certificate (NOC) from the current sponsor and a copy of UAE Residency are required.
- – A signed lease contract is not required for the first year.
The DED Instant License allows the formation of various company types, excluding Public and Private Joint-Stock Companies.
The necessary documents are required.
- Copy of passport of the shareholders
- Copy of your residence visa and a letter of no objection from your sponsor to the foreign parties involved.
The instant license is designed to foster sustainable economic development in Dubai by streamlining the process for investors to initiate business operations in the region.
2. Consultancy Licenses from DED
The DED issues the Consultancy License for a range of business activities. However, there are certain prerequisites for obtaining the Consultancy License in Dubai. Let’s ensure the writing quality is improved while maintaining the original meaning, optimizing word choice, structure, readability, and eloquence.
Choosing the Right Company Structure for Your Consultancy License
Business activities conducted under the Consultancy License cannot be carried out by a Limited Liability Company as a legal entity. Instead, they can opt for either a Sole Proprietorship or a Civil Work Company. Additionally, it is mandatory for the business owner or director to participate in a training program offered by the American University of Dubai to qualify as directors in the consultancy domain.
3. Dubai Municipality-related Engineering Activities
This license exclusively allows for the inclusion of engineering-related activities. The company is restricted from forming an LLC, but it can operate as a sole proprietorship or a Civil Works Company. Furthermore, shareholders, owners, and partners are required to possess a university degree or equivalent experience in their respective fields of expertise.
4. Legal Consultation Activities
To establish a Legal Consultancy, the owner must first obtain approval from the Legal Affairs Department before acquiring the initial approval and trade name from the DED. There is no obligation to appoint a corporate agent for branch openings.
5. Freelance Permit from DED
The Dubai Economic Department offers a diverse range of over 100 activities for the freelance license. Individuals can choose from a wide array of options, including mobile repairing, marketing services, document storage, social media management, website design, data entry, and more when applying for the freelance permit.
6. E-Trader License from Dubai Economy (DED)
UAE and GCC nationals residing in Dubai can engage in social media business activities through various platforms. The E-Trader is registered under an individual’s name, not a company. However, they are not authorized to open a physical store, issue visas, or employ staff members.
7. E-Commerce License
Online companies engaged in selling and purchasing goods are required to obtain an E-Commerce License from the Department of Economic Development (DED) before commencing any service delivery. Acquiring an eCommerce License from the DED is a straightforward and uncomplicated procedure.
Benefits of Obtaining an E-Commerce License in Dubai
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An eCommerce license offers a significant advantage: the absence of a mandatory requirement for a physical office space in Dubai. Additionally, there is no need for paid-up share capital when starting an eCommerce venture. The obligation for a physical office only arises when expanding the business and hiring staff. Dubai’s robust digital and technological infrastructure, combined with its diverse audience demographics, make it an ideal location to commence and effortlessly scale an eCommerce enterprise.
8. Social Media License
The use of social media as a platform for business promotion and trading is gaining popularity. According to data from the Department of Economic Development in Dubai (DED), over 3000 licenses have been issued since 2017 for social media trading.
Scope of Social Media License in Dubai
The Department of Economic Development (DED) offers e-Trader licenses for UAE Nationals and GCC Nationals. For expats and foreign investors, they can apply for a social media license. Additionally, social media influencers can apply for a social media license from the DED and obtain a permit from the National Media Council.
Entrepreneurs operating in the social media trading space in the UAE must adhere to regulations and possess the necessary business licenses. Engaging in special media trading and promotional activities without the appropriate licenses may result in heavy fines.
To learn more about specific license types and the streamlined process of applying for a business license in the UAE, feel free to consult our experts today!