Are you a foreigner who just moved into Dubai and wants to get a business license to start up your business? Then worry no more.
We have got you covered, just read through to find out answers to all your questions about getting a small business license in Dubai. Stick around as you learn more.
Research has it that the United Arab Emirates is one of the best locations for starting a business.
Dubai has been a hub for international, medium, and small businesses, with high demand for goods hence leading to why many investors from multiple regions hurry to set up their businesses in the country.
But before you open any type of business in Dubai, you must have a business license that will grant you access to operate your business legally.
So getting your small business license with a local business setup agency is the first and required step to follow if you wish to start up any kind of business in Dubai.
Sometimes the process takes more time for foreigners like you because of your limited experience with Dubai routes, but to avoid such delays business consultant experts from one of the best business set-up companies in the UAE, like Masar AI Ameen can help you make the entire process of getting your business license easy. Well, let’s discuss this further as you learn more.
What is a small business license?
A small business license is a document issued by the Department of Economics Development in Dubai to foreign investors who wish to open a business in the Emirates to help them have a legal operation.
It is one of the important items needed to set up all new businesses. Whether Multinational, Medium, or small businesses, you will be ordered by the DED to license your business to enable you to run a smooth legal business in the Emirates.
5 incredible tips on how to get a small business license in Dubai?
To obtain a small business license in Dubai is not a hard task when you follow the right steps. Here are some guidelines to follow if you want to get or apply for a small business license.
1. Choose your Business activities
This is the first thing you need to do if you are applying for a business license in Dubai.
Here all you have to do is, draft or list out all your business activities. That includes all the services your business plan is going to render, the number of your business partners, etc.
2. Select a Business name
Think and settle on a good business name that relates and will make sense to the kind of service you are going to render. However, there are some requirements you need to meet before the DED approves your proposed chosen business name. The requirements are as follows:
- Make sure your chosen business name has never been once registered by another investor.
- The name must not fail to observe the public law of the Emirates.
- The business name must be followed by the legal form of the company.
- Your business name must agree with the required type of activity and legal business allowed to run in the country.
3. Choose a Business Location
After you must have selected a suitable business name, the next step is to decide on and confirm a business location good for your kind of business.
The chosen business location could be in the mainland setup, free zone, or offshore, you have to make your choice of business location depending on what you have in mind.
4. Arrange the required documents
Get the appropriate documents needed to start up your company or business.
Documents to provide are listed below:
- Your business plan.
- Memorandum and Articles of Association (MOA).
- Copy signature of the business’s shareholder/s and the appointed Manager.
- Certificate of reference from a personal bank of the individual shareholder.
- Copy of existing business or company registration certificate (if any).
- Scanned passport copies of the appointed Directors for the new business.
- Completed application form.
5. Apply for a Small Business license
By the time you have made available all the documents needed, the final step is to start your business license application process. The lease agreements will be issued by the right authorities capable to handle that. And after getting initial approval for your small business license process – you have to pay registration fees and license fees.
Then your small business license will be issued to you within 10 days or more. I know you must be wondering how much it costs to get a business license in Dubai. Well, read down to know the cost.
How much does a small business license in Dubai cost?
Well, without wasting much of your time. The amount to get a small business license in Dubai is about AED 8,000. Though the license itself may cost a minimum of AED 8,000, you can also pay for extra dues (like the registration of Visa, etc.) which can make it up to a total of AED 20,000 or less. However, other factors may increase or determine how much you spend on getting a small business license in Dubai.
Such factors include:
- The location you choose for your business: This is one of the things that determine how much your business license costs. Understand that it will cost higher when your business set up is on the Mainland than when it is set up in a free zone or offshore.
- The number of your business partners: it will cost lower when you run the business alone than when you have two or more other registered business partners.
- The kind of your business activities: You have to pay less or more money depending on the type of business services you plan to render.
- The renting space for your business: Of course, the renting space chosen for your business is another factor that will bolster how much you pay to get a small business license in Dubai.
- Government involvement in the approval of your business: As earlier stated above, while the cost of the license itself will be AED 8,000, the cost of other stuff like the registration of Visa, etc. could raise the total fee you have to pay at the end.
5 great benefits of having a small business in Dubai
There are bunches of benefits that come with having or obtaining a small business license in Dubai.
Below are some of the benefits:
- When you get a business license to legally operate any type of business in the Emirates, you will have access to both local and international markets through the middle east, Africa, and the whole of Europe at large.
- You will have opportunities to explore different business sectors.
- Dubai government has made it easy for financial transactions for both online and offline businesses.
- You will have tax-free jurisdiction.
- You can operate multiple businesses in different industries with one legal business license.
Dubai has been a hub for international, medium, and small businesses with high demand for goods hence leading to why many investors from multiple regions often dream to set up their businesses there. Now, small businesses are increasing in number because the Dubai government made the business environment friendly, easy to start, and also straightforward to get a business license.
Read more about the Top 10 business ideas in Dubai.
However, before you can legally operate in any buying and selling in the Emirates – you must have a business license. Obtaining a small business license in Dubai is not hard if you follow our guide above but if you need strong support to get your business license fast – you can count on professional consultants from Masar AI Ameen. They’ll make getting a small business license easy and faster for you.
Good luck to you.
Remember to navigate through our website if you have any more questions bothering you about business operations in Dubai.
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