DED Instant License in Dubai

Dubai is one of the best places to establish a business due to its strategic location, better infrastructure, and business-friendly environment. A trade license is necessary to set up a Dubai Business, typically taking at least four weeks. However, investors who want to set up quickly can opt for the DED Instant License issued by the UAE government. To apply for a DED license, your company must operate in the commercial or professional sectors and choose a suitable business structure. This article helps you to learn about the DED instant license in Dubai, its benefits, document requirements, and how to obtain it online.

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What is a DED Instant License?

A DED Instant License is a business permit issued by the Dubai Department of Economic Development (DED) specifically designed for quick and easy business setup. It allows entrepreneurs to obtain a DED license for commercial or professional activities within minutes. This is ideal for startups who want to explore Dubai's market. The license comes with a virtual address for the first year and an electronic Memorandum of Association (MOA). It's a cost-effective way to launch your business in Dubai and assess its growth potential before committing to a physical office space.

Benefits of a DED Instant License in Dubai

The DED Instant License in Dubai offers several advantages for entrepreneurs and businesses, particularly those new to the market. Here are the several main benefits:

• Fast and Efficient Setup: The DED Instant License streamlines the business setup process, granting professional or commercial licenses within minutes compared to the standard procedure that can take days.
• Immediate Business Operations: Upon receiving the DED instant license, businesses can legally commence operations immediately.
• Reduced Startup Costs: The Instant License eliminates the need for physical office space and related costs like rent agreements for the first year. Additionally, it offers flexibility regarding trade name registration and Memorandum of Association (MOA) for the initial period.
• Virtual Address: The DED Instant trade license provides a virtual address for the first year, initially allowing businesses to operate without a physical office.
• Market Testing: The Instant License is ideal for businesses looking to test the Dubai market and assess its viability before committing significant resources.
• Flexibility and Scalability: This license allows businesses to start small and scale up at their own pace, offering adaptability in the initial stages.

Eligibility Criteria to apply for DED Instant License

To apply for a DED Instant license, companies must be operated in the commercial or professional sectors. And if your business activity requires government or government-approved agencies approval, you're not eligible for the DED instant trade license. The following business structures can apply for a DED Instant trade license.

• One Person LLC: This structure allows you to operate as a single owner with limited liability protection.
• Limited Liability Company (LLC): This is the most popular option for businesses with multiple owners, offering flexibility and liability protection.
• Sole Proprietorship: Ideal for single owners with complete control over the business but without limited liability protection.
• Civil Company: This structure suits professional activities requiring a license but not commercial trading.

Documents required for DED Instant License

The documents required for DED Instant license are followed by, 

• Passport Copies: Provide copies of the passports for all legal applicants and shareholders involved in the company.
• Residency/Visa Proof:
• For residents: Present copies of your valid UAE Residency Visa and Emirates ID.
• For non-residents: If you're applying with a tourist visa, provide a copy of the visa.
• Passport-Sized Photographs: Submit recent passport-sized photographs for each legal applicant and shareholder.

Note: While the above documents are the primary requirement, further documents may be needed depending on your specific business activity or chosen legal structure.

How to Get a DED Instant License Online?

To get a DED instant license online, you need to choose your business activity, confirm the jurisdiction, select a legal structure, decide on a company name, submit the application, open a corporate account, and apply for necessary visas. Let's see each step in detail below:

Step 1: Choose your Business Activity

Your business activities determine your eligibility for an instant license. The Department of Economic Development (DED) has a comprehensive list of thousands of approved activities. Based on your business requirements and suitability, you can select one or more activities. Ensuring your chosen activities are permissible is crucial to proceeding with the application.

Step 2: Decide on your Jurisdiction

Deciding on the jurisdiction is an important step. DED license is exclusively applicable to Dubai Mainland companies. Mainland companies allow you to trade within local and international markets and take on government contracts. This flexibility can be advantageous depending on your business strategy.

Step 3: Select your Legal Structure

You can choose from limited legal structures such as a Limited Liability Company (LLC), Civil Company, or Sole Proprietorship for an instant license. When selecting a structure, consider the share capital and shareholding order, as these factors will influence your business operations and compliance requirements.

Step 4: Pick a Company Name

Deciding on a company name must comply with the UAE's naming conventions. Avoid initials or religious references in the name, and prepare at least three options to ensure availability. 

Step 5: Apply for a License Application

Applying for the instant license involves several considerations, such as jurisdiction, relevant documentation, and the chosen activities. Complying with the legal formalities and ensuring that all important documents are submitted correctly and promptly are necessary.

Step 6: Open a Corporate Account

With your license, you can now set up a business bank account. A corporate account is essential for separating professional transactions from personal expenses. You have various options, including national and international banks within your jurisdiction.

Step 7: Apply for Visas

To work in the UAE, you need a residency visa. After obtaining your instant license, you can apply for the necessary employee and family visas.

Learn more: How to check the DED License details?

Cost of DED Instant License

While the DED instant license offers a faster and more streamlined approach than traditional methods, investors must understand the associated fees. The total DED License cost can vary depending on trade name registration, initial approval processes, visa applications, virtual office rental, and the license itself. Carefully evaluating these factors alongside the benefits of an instant license is essential to determine if it's the most cost-effective option for your business needs.

Conclusion

In conclusion, the DED Instant License in Dubai offers a fast and cost-effective way to set up your Dubai Business, particularly for those looking to test the market. With streamlined online application, virtual address benefits, and the flexibility to scale up later, this license is ideal for startups and entrepreneurs seeking a quick and efficient business launchpad in Dubai. However, it's crucial to consider eligibility criteria, document requirements, and associated costs to ensure this option aligns with your specific business needs.

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