Starting a business in Dubai is becoming quicker and easier than ever.
In this article we are going to give you the step-by-step procedure on how to start a business in Dubai.
Department of Economic Development-DED is the concerned authority for licensing a business in Dubai.
Broadly, there are two jurisdictions in Dubai for conducting business: Dubai 'mainland' and more than 20 economic free zones like Jebel Ali Free Zone, Dubai Airport Free Zone.
Mainland and free zones offer different advantages depending on your business type and activities.
If you choose to conduct business in Dubai mainland, you will need to register with DED, which will issue you a business license.
The first step in the process of issuing a license is determining the activity type which identifies legal form options and parties associated with that activity. There are more than 2,100 business activities available in Dubai, which fall into different classes and groups: industrial, commercial, professional and tourism activities.
The license type is associated with the activity type, thus if the activity type of the license is professional, then the license should be professional as well. When the license combines several activities, the largest activity which is the industrial activity is taken into consideration followed by the commercial activity and then the professional one. For example, if a license contained both commercial and professional activities, the type of the license should be commercial since it’s the larger activity (not applicable for tourism activities).
Please note that some of the business activities require approvals from government bodies other than Dubai DED.
Consultations (include three types):
DED-related activities:
Business activities of firms that can’t take a limited liability company as a legal form.
Business activities of firms that can take either a sole proprietorship or a civil works company as legal form.
Business owner or director must join AUD program for qualifying directors in consultancy domain.
For the foreign companies interested in the consultations activity, the director must join AUD program for qualifying directors in consultancy domain.
Dubai Municipality-related engineering activities:
Include engineering activities only.
Business activities of firms that can’t take a limited liability company as a legal form.
Business activities of firms that can take either a sole proprietorship or a civil works company as legal form.
Business activities of firms whose parties (owners/ partners/ managers) should be holding a university degree or having an equivalent experience in the required consultation activity.
A local service agent agreement is not required for the engineering activities.
The foreign engineering consultancy offices can open branches without having to appoint a corporate agent.
Legal consultations activities:
Should receive an approval from Legal Affairs Department before obtaining the initial approval and the trade name from DED.
The foreign legal consultation offices can open branches without having to appoint a corporate agent.
Remarks:
There are other consultancy activities that are subject to the approval of governmental bodies.
The consultancy activities can have any legal form but only after the approval of the bodies governing the activity.
General Trading:
Through this activity, all kinds of commercial activities that does not require approval of other bodies can be done in the same place. It doesn’t include activities that require approvals from external bodies unless an NOC is obtained, examples of these activities are: jewelry, magazines and newspapers trade.
The general trading activity can include all kinds of direct commercial activities if approved by the concerned bodies. For instance, it can include telecommunications trade activity if approved by the Telecommunications Regulatory Authority.
AED 15,000 fees are charged in the following cases:
License issuance.
Changing the activity into a general trade activity.
Upon the license renewal, AED 3,000 are charged per year.
Investment:
The company can’t have the sole proprietorship legal form.
Branches of different kinds of licenses (professional, commercial, and industrial) can be opened only if they are branches of the parent company.
Any economic activity can’t be performed through this activity; however, other companies’ shares can be owned and branches can be opened.
The term “group” or “holding” can be used in the trade name for this activity.
AED 15,000 fees are charged for the investment activity in its different kinds in the following cases:
License issuance.
Changing the activity into any kind of investment activity.
Upon the license renewal, AED 3,000 are charged per year.
Companies and Institutions Management:
This activity authorizes the management of any company or institution related to one individual only as long as the licenses are not less than 3.
It is not authorized to manage companies and institutions belonging to others.
The term “group” can be used in the trade name such as: “BNB Group”.
Only UAE citizens can practice this particular activity.
Call us for your business set-up requirements:
First Gate Business Service
Dubai, Qusais (Al Nahda-2) Near Zulekha Hospital:
Tel. 009714-239 1302
Mob: 00971-55 273 2295, 055-345 7829
Mail: visaprocess.ae@gmail.com
www.visaprocess.ae
How to register your Trade name in Dubai?
The trade name should be related to the license type so that clients can't be confused.
You can apply for a trade name online or through Business in Dubai App (iOS, Android). You may also visit authorised service centers, Happiness Lounge, or law firms. Please note that to access online services, you need a user account.
You can make the payment online or by cash.
Remember:
Trade name reservation costs
A trade name certificate is valid for 6 months and can be renewed with the same fee.
DED has the right to cancel or change a business name if an existing trade name has been found similar to another name.
The name should not be the same name of one of the brands active in UAE or government projects or brand names.
Family names, tribes' names and other persons' names should not be used as a trade name unless the name belongs to the licensee concerned.
The name should not be the same as used by any of the active brands in the Emirate of Dubai or government projects, or those names used by any of the international brands.
Names should be written literally and not translated, for example: If the Arabic name is السماء العالية it must be written as "Al Samaa Al Aalya"; and if Arabic name is هاي سكاي it must be written as "High Sky").
The name should not include the name of a country or government unless an approval is obtained from the country's respective embassy.
Trademarks:
Trademarks cannot be registered by DED. The Trade Marks Department in the Ministry of the Economy is responsible for receiving, studying and deciding requests of registration of the trade marks. When the client submits a complaint of infringement of a trademark, the intellectual property rights unit at DED will first ensure that the registration certificate of the trademark at the Ministry of Economy is available then take legal action.
A company is entitled to use the trade name of another company granted a franchise after submitting a franchise agreement to DED.
How to get Initial Approval for your Business in Dubai?
Documents Required for the Initial Approval of all Legal Forms:
- Business registration and licensing form.
- Copy of the licensee's passport/ ID.
- Copy of the applicant's residence permit/ visa (for non- GCC nationals).
- No Objection Certificate from the applicant's sponsor (for non-GCC nationals) to practice a business activity (Not applicable for partner or investor).
- Feasibility study of the project (if the company's activity is industrial or manufacturing).
- The parent company's board resolution to open a branch in Dubai.
- Letter of authorisation of the managing director.
- Copy of the parent company's commercial registration certificate.
- Copy of the parent company's memorandum of association (MOA).
- Copy of the parent company's license.
- eServices - to access eservices you need a user account.
- Business in Dubai App (iOS, Android)
- Service centers like Tas'heel
- Happiness Lounge under DED
- Law firms
Remember:
You must have an Initial Approval Certificate and Initial Approval Form to obtain a license.
The Initial Approval Certificate records partners, legal type and activities of the license.
It is valid for six months and renewable with a cost of
To apply for an initial approval, external approvals of bodies governing the following activities are required:
Legal Department-related activities:
Legal Consultants:
License Type: professional
Legal Translation:
License Type: professional.
Estidama/Sustainability Contract.
Department of Economic Development has started issuing Licenses without office space. So instead of getting a permanent office space which takes a big junk from your budget, you can get an Estidama / Sustainability Contract which is like a virtual office. You get a Lease Agreement for the company which enables you to get up to 4 employment visas.
This is applicable for new companies and for existing companies who want to reduce their Lease cost.
If you want a physical office, the tenancy contract should be registered through EJARI system under RERA.
You can add a new trade license to the same location taking into account the following conditions:
- The local party of the new license should be the same owner, partner or LSA in the existing license of the desired location.
- The space of location allocated for each license should not be less than 100 sq. ft.
- Entities governing certain activities require specific area for the business location like Contracting, General trading....
How to get Final Approval for your business license in Dubai?
Some business activities require special licensing approvals
First Gate Business Service
Dubai, Qusais (Al Nahda-2) Near Zulekha Hospital:
Tel. 009714-239 1302
Mob: 00971-55 273 2295, 055-345 7829
Mail: visaprocess.ae@gmail.com
www.visaprocess.ae
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