How to Secure Business Permits in UAE With Minimal Paperwork

 

Dubai facilitates innovation and creates commercial synergy by establishing an environment that requires companies to function across various industries. For example, an advertising agency may sell software, or an entrepreneur may be an engineer managing real estate. Establishing a multi-activity business within Dubai is both permissible and often encouraged to achieve an efficient business model; this allows organizations to maximize their profit potential.

Establishing a multi-activity business in Dubai legally can be achieved through having an in-depth knowledge of the licensing structure, particularly if you decide to establish a Mainland Company Set-up with a business license in UAE. Let's take a look at the straightforward methods available to combine various activities into one legal entity, provide insights into the necessary costs associated, and address the criteria for obtaining your Investor Visa in Dubai.

Choosing and Combining Business Activities on Your License

To begin any business in Dubai, you first need to obtain a Business License in UAE. The Department of Economy and Tourism (DET) has created the Business Licensing Framework, which defines what you can do under your licensing authority.

1. Identifying Your Activities

First, you should identify your company's activities. The DET maintains a list of over 2,000 permitted Economic Activities. To properly represent yourself and your business, you need to accurately show the services or products that your business will offer.

• Allowed Combination – The next item is to combine business activities into one license. All licensing authorities in Dubai permit businesses to include multiple activities on one Business License. In general, you can include up to five, eight, or more activities, based on your jurisdiction and licensing category.

• The Golden Rule (Same Category) – The Golden Rule to follow when obtaining a multi-activity license is that all selected activities necessarily fall under the same type of license.

2. The Commercial vs. Professional Conflict

CMBs (Multiple Activity) can have difficulty when trying to get a combined Commercial/Professional Business License from the mainland; the biggest obstacle being mixing the two different license types, as they represent two distinct types of activities.

The Commercial License is for companies that deal with physical products, and the Professional License is for companies that provide services based on expertise.

According to the Department of Economic Development (DED), a company must choose its primary category. Companies that primarily deal with trading and selling physical products should have Commercial Licenses, and companies that primarily provide services based on expertise should have Professional Licenses. Mixing a major trade with a major service on the same license type may be difficult and even prohibited by the DED.

The Solution –

• Free Zone Flexibility – Multiple Free Zones are far more adaptable and explicitly permit mixing both Commercial and Professional activities under one business license, making them a favored option for hybrid businesses.

• Mainland Strategic Choice – For Mainland Company Setup in Dubai, select the license classification that protects your highest-revenue activity. For instance, an IT company that mostly consults but does little hardware sales might be given a Professional License with a minor trading activity included, but this needs masterful consultation.

Cost Factors and Mainland Company Setup in Dubai

Establishing a Multi-Activity Mainland Company Setup in Dubai is a smart move that allows you unrestricted access to doing business anywhere in the United Arab Emirates (UAE).

Understanding the Dubai Mainland Company Formation Cost

The cost to set up your business in Dubai will be primarily determined by the number of activities you wish to conduct, as well as the size and location of your office.

1. Trade License Fee – There will be a Trade License Fee that you pay to the Department of Economic Development (DED) as a primary cost of opening the business.

• Adding Activities to Your License – Depending on the number of activities you wish to conduct, you can pay a small additional fee per activity beyond the base number. Typically, this extra fee is significantly lower than establishing a separate company for each of your activities.

• Commercial vs Professional License – The fees for a Commercial License or Professional License may vary due to differences in the licensing structure and government fees associated with each type of license.

Office Space and Ejari – Mainland Company Setup in Dubai

A company wishing to set up a Dubai Mainland Company must have a physical location and an Ejari (official proof of rental contract). The cost of office space is typically the greatest fixed annual expense and is determined based on both the company’s proposed activities and the requirements for obtaining visas for employees.

1. Initial Approvals – Companies wishing to conduct certain high-risk or highly regulated activities are required to seek additional approvals through various No Objection Certificates (NOC) from the relevant government authority prior to engaging in the listed activity. Companies may be required to pay additional fees associated with these approvals.

2. Trade Name Reservation – A small fixed fee is required for reserving the trade name of the company.

3. Memorandum of Association (MoA) – A fee is also charged for drafting and notary of the company’s founding legal document, known as the Memorandum of Association (MoA).

Mainland Company Formation Cost in Dubai is usually not significantly higher for multiple activity licenses, so businesses that wish to diversify their activities should use a multi-activity license for maximum cost effectiveness.

Securing the Investor Visa in Dubai

When you obtain your Multi-Activity Business License in UAE, you can apply for a residency visa.

Eligibility for the Investor Visa –

To qualify for an Investor Visa in Dubai, at the time of application, you must be an owner and/or partner of a licensed company registered in Dubai. Therefore, your eligibility is based on your legal ability to engage with the company under Dubai law.

1. Company Investment – To receive a Standard 2 Year Investor Visa, the only requirement is to show that you hold shares in a business with a minimum share capital; however, companies that only provide professional services are generally excluded from having to demonstrate any minimum share capital.

2. Document Checklist: In order to apply for an Investor Visa in Dubai, you will be required to submit the following documentation –

• A copy of your current, valid passport

• A current, valid commercial trade license for your business, including a list of all services you provide

• The establishment card (immigration) issued for your company

• A copy of the Memorandum of Association showing your ownership in the business.

Benefits of the Investor Visa –

The visa is a key advantage of Mainland Company Setup in Dubai –

• Residency – It gives you a renewable residency permit, permitting you to lawfully reside in the country.

• Sponsorship – It permits you to sponsor your spouse, kids, and potentially parents for their own conditional residency visas.

• Operational Freedom – The visa's validity is connected to the active status of your multi-activity trade license, delivering a safe, long-term base for your complicated business functions.

Strategic Setup for Growth

When starting a new business in the UAE, it is essential to provide specific details about what you intend to do. This will make it easier to avoid having to make a lot of changes to your business later on, ultimately saving you time and money.

You'll need to choose the right business license in UAE. Depending on which business activity is your main source of income, you can apply for either a commercial or professional business license in the UAE. Once you've obtained your business license in the UAE, you'll have everything you need to establish your mainland company setup in Dubai. With one business license in the UAE, all of your services will be covered, ensuring you operate within the law, and consequently keeping the cost of forming your Dubai Mainland Company reasonable. Obtaining a business license in the UAE also allows you and your family members to be eligible for an Investor Visa in Dubai and to have a diversified success in the UAE market.