In this race of development and economic growth many governments are vying to make their country pre-eminent in the world. Therefore, it is very important for each government to promote liberal policies for an effective globalization and economic growth. Dubai has always proven itself to be competent in this race because of its progressive approach and policies. Besides their fast paced technological advancement has led to rapid development.
One such initiative was the introduction of instant license in Dubai. It was launched as a part of the Hamdan Bin Mohammed Program for the Smart Government 2019. This innovative program is an easier and quicker process for commercial license procurement. Moreover the program focuses on inviting investors to set up business easily for an overall economic development, The following provides a broader analysis of obtaining instant license in Dubai:
Instant License And Its Benefits:
It has always been a hefty task when it comes to obtaining license and business commencement in Dubai. To avoid such problems, the Government initiated the instant license which provides the license in just 5 minutes. The process provides an electronic Memorandum of Association (MOA) along with,
- a membership in Dubai Chamber.
- an establishment card of the General Directorate of Residency and Foreign Affairs.
- three work permits for employees from the Ministry of Human Resources and Emiratization.
Benefits of Applying Instant License in Dubai
- Speedy Process: The application process requires only five minutes which saves time and results in the fast commencement of business activities.
- Rental Contract: The fast-paced licensing system eliminates the need for a rental contract. A company gets a deferment of 12 months to submit a lease agreement after the renewal of the license. Besides the company experiences lower expenditure while setting up the business and also gets time to acknowledge other incurring expenses.
- Trade name and Commercial Space: A Memorandum of Association (MOA) is a document describing a company’s trade name, physical address as well as the name of shareholders and their shares. This MOA is optional to get from the DED but it is usually required for the investor visa process and bank account. The address mentioned in the license is Dubai Municipality.
- The registration of ‘native’ workers in the Ministry of Human Resources and Emiratization is already added while issuing an instant license as a step to stimulate the participation of UAE nationals in the private sector.
Requirements and Procedure:
- While applying through Dubai e-services the only requirement is original Dubai id for making account in Dubai Smart Press.
- Applying through Smart Lounge or Happiness Lounge, one requires the following documents:
- the copies of passport and residency visa of partners, shareholders, foreign investors etc.
- the presence of at least one business partner.
- A NOC from the sponsor of Foreign Investors.
- The following procedure provides a brief of the application process
- Select the legal entity of your company.
- Decide the business activity and the structure of shareholders,
- Chose three trade name options
- Submit required documentations
- Generate payment voucher and make payment
- Finally collect your instant license.
Eligibility Criteria for Instant license in Dubai:
The business should fall these four legal forms to be eligible for the instant license i.e.,
- Limited Liability Company.
- Single Owner Limited Liability Company.
- Sole Proprietorship.
- Civil Company.
The Dubai Government has reduced the market fee by 90% from AED 3000 to AED250 and it will remain same throughout the renewal process in lieu of the ongoing pandemic.
Thus this initiative of instant license have contributed in economic development and upliftment of Dubai in the global race.