If you are planning to Business Setup in Dubai, letting the Government know about your intended business and getting their approval on the same is the first and foremost requirement. That’s what we know as initial approval in Dubai! Getting a trade licence is an obligatory requirement to be able to carry out the intended business activities in Dubai. And obtaining an Initial Approval on the same is no less mandatory!
What is Initial Approval in Dubai?
If not for an initial approval, you can’t proceed with the application for your trade licence, which is the key requirement to Business Setup in Dubai. You may understand it as aNo Objection Certificate (NOC) provided by the relevant authority giving a go ahead to your idea ofbusiness formation in Dubai, which is used as a supporting document while processing your request for the trade licence. Validity of the certificate is usually 6 months.
How can I apply for the Initial Approval for my business setup in Dubai?
Initial Approval in Dubai can be requested through the online portal of DED right after the trade name reservation. You are required to attach some documents along with your application asthe Government has to determine several things about your business proposal including the legal form of the company, the economic activities and the licence parties (partners). The process is pretty simple! You just have to:
- Go to the Business Dashboard page, under “My Transactions” and then click “Issue Initial Approval”.Adding license information
- Specify business activities
- Identify owners and partners to be added to the licence
- Attach the required documents
- Submit your request
This should be noted that you may apply for one Initial approval at a time.
Why do I need an Initial Approval, when I am applying for the trade licence already?
Initial Approval and Trade Licence are two different documents. The former is necessary to acquire the latter. To elaborate, obtaining an Initial Approval is the part of the licencing process because the certificate enables youto proceed with the next steps in setting up a business such as signing up a commercial site lease contract, reserving the trade name and attainingspecial approvals from external parties related to economic activities that require additional consent from the competent authorities. For instance, to start a pest control company in Dubai, you need to have approval from Dubai Municipality, to enter the healthcare sector you must have the NOC from the Health Authority, to open a driving school you have to get RTA’s consent, and to start a school in Dubai, you require KHDA’s approval.
Who can apply for the Initial Approval in Dubai?
You may apply for the Initial Approval if you are:
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- Someone from business community looking to start a business in Dubai
- A PRO (Public Relations Officer), hired by an individual interested in setting up a company in Dubai
- A company setup advisor, outsourced by a client for business formation in Dubai
What are the service structures and types of Initial Approval?
You may go either of two types:
How long does it take to issue an Initial Approval for business corporation in Dubai?
In a regular scenario, DED takes around 10 minutes to grant an Initial Approval. The expected wait time is approx. 7 minutes.
What is the cost of obtaining an Initial Approval in Dubai?
At present, the service fee charged for the issuance of the Initial Approval in Dubai is AED 120. Here’s the break-up:
- AED 100:Fee for a fresh issuance or amendments
- AED 10: Knowledge Dirham fee
- AED 10: Innovation Dirham fee
Where can I apply for the Initial Approval for company formation in Dubai?
Initial approval can be requested either of the three ways mentioned below:
- Invest in Dubai
- Authorised Service Centers such as Adam Global
What are the requirements for Initial Approval Issuance in Dubai?
The applicant must be ready with the following to acquire an Initial Approval:
- Unified number or ID number
- The parent company’s board resolution to open a branch in Dubai, appoint the manager and list the company’s activities
How can I apply for the Initial Approval for company establishment in Dubai?
Applicants must go through a series of steps to get an Initial Approval from DED:
Via Authorised Service Centers
- Approach any licenced service centre in Dubai
- Send the requirements through the centre’s e-mail
- Pay using any of the available payment methods
- Receive theInitial Approval certificate, once issued
Via Invest in Dubai portal
- Login to https://invest.dubai.ae as a user
- Choose the primary activity along with additional activities
- Add the licence parties and their nationalities
- Select the company’s legal form
- Select the type of licence you want (normal licence, instant licence, DED trader licence)
- Provide the licence details
- Furnish the required details of partners, managers and local service agent (if any) such as their address, contact information, identification number (Emirates ID number, passport or unified number), and position in the company and ownership shares
- Add Ultimate Beneficiary owners
- Confirm all the details furnished by you
- Make the payment using any available payment methods
- Send the request for the Initial Approval issuance