Business Licenses

Setting up a business in the UAE is an exciting opportunity thanks to its strategic location, business-friendly environment, and efficient digital government systems. Whether you're opening a physical store, launching an online brand, or setting up a consultancy, obtaining the correct business license is mandatory to operate legally.

Below is a comprehensive overview of the types of licenses, legal structures, and key steps to help you get started.

Types of Business Licenses in the UAE

1. Normal License

  • Suitable for traditional businesses with a physical location
  • Requires a lease agreement and a memorandum of association (MoA)
  • Application processed through service centres or online via the DED portal

 

2. Instant License

Issued within 5-10 minutes for businesses that do not need external approvals

No lease contract required for the first year (virtual office is allowed)

Includes:

  • Dubai Chamber membership
  • Establishment card from GDRFA
  • MOHRE card (to hire up to 3 employees)
  • Available for: LLC, LLC-SO, Sole Establishment, and Civil Company

 

3. eTrader License

  • Designed for home-based online businesses in Dubai
  • Issued as a sole establishment license
  • Apply via the Invest in Dubai portal
  • Fees: AED 1070 + AED 300 (Dubai Chamber)

 

Required Documents

The documents vary depending on the license type:

For a Normal License:

  • Emirates ID and passport copy
  • Initial approval certificate
  • Trade name reservation
  • MoA (signed electronically or manually)
  • Lease contract (Ejari for Dubai)
  • Approvals from other authorities (if required)

 

For an Instant License:

  • Emirates ID or Unified Number
  • No lease agreement required (virtual office acceptable)
  • Trade name reservation

 

For an eTrader License:

  • Emirates ID
  • UAE residency
  • Registered trade name

 

Legal Forms to Consider

Your business structure must match your activity type. Common legal forms include:

  • Sole Proprietorship
  • Limited Liability Company (LLC)
  • Civil Company
  • Private or Public Joint Stock Company
  • Branch of a foreign company

Each form comes with different legal obligations, ownership rights, and setup procedures.

Key Steps to Get Your License

1. Identify your business activity

Choose from over 2,000 listed activities across various sectors (commercial, industrial, professional, etc.)

2. Choose a legal structure

Based on the number of owners and the nature of the business

3. Reserve and register a trade name

Must be unique, relevant, and approved by the DED

4. Get initial approval

Indicates the government’s no objection to starting your business (not a permit to operate)

5. Prepare MoA (if required)

Required for LLCs, partnerships, and joint stock companies

6. Secure office space

The lease agreement is registered and compliant with the municipality's zoning rules

7. Get external approvals (if needed)

For regulated sectors (healthcare, legal, education, etc.)

8. Submit final documents and pay fees

Finalise your application and receive your commercial license

Business License Fees in the UAE

  • Fees vary depending on:
  • Type of license
  • Business activity
  • Emirate of registration
  • Required government approvals

 

For updated fee details, visit the official DED or the relevant emirate’s economic department portal.

How Long Does It Take?

  • Instant License: ~5 minutes
  • Normal License: ~1–3 business days (after approvals)
  • eTrader License: ~3–5 business days
  • Full company setup(with external approvals) up to several weeks

 

Where to Apply

You can apply via:

  • Official DED portals for other emirates
  • Authorised service centres across the UAE

 

Call DRE on +971 52 754 3243 or email us at sales@drehomes.com

Our consultants are ready to assist you.