Dubai is known for its ability to cut through red tape. Thanks to a streamlined process and an ambition to be a leading global business hub, the emirate has cemented itself as an attractive place for entrepreneurs. One major initiative that underscores Dubai’s pro-business outlook is the Instant Licence Dubai.
Why Dubai Introduced the Instant Licence
The Instant Licence was launched to reduce the time and paperwork typically required to start a business. Rather than assembling various documents, finding an office, or seeking official pre-approvals, the Instant Licence allows entrepreneurs to complete everything in a few minutes through one online portal. The entire experience reflects Dubai’s commitment to an ease of doing business that rivals the best in the world.
What the Instant Licence Means for Aspiring Entrepreneurs
An Instant Licence gives individuals or companies immediate official status so they can start operating without waiting for the usual prerequisites. Rather than arranging an office lease or having a Memorandum of Association notarised, these requirements are deferred for up to 12 months. This approach caters to those who need to get going straight away, serving as a welcome change for innovators wanting to seize market opportunities quickly.
By the end of the first year, all remaining documentation should be provided to Dubai’s Department of Economy and Tourism (DET). If entrepreneurs fail to meet these requirements, the business will not be able to renew its licence. This ensures that short-term flexibility does not compromise the long-term credibility of companies operating in the emirate.
Who Qualifies for the Instant Licence
The best part? You can use the Instant Licence for almost every type of business. Exceptions mainly apply to public or private shareholding companies, which follow different regulations. Those who want to set up a branch of an existing local or foreign entity will also have to apply for a standard licence, as the Instant route does not cover branch registrations.
Meanwhile, there are four types of legal structures accepted:
These structures let a broad range of entrepreneurs qualify, from solo freelancers to larger groups looking to form an LLC.
The Changing Ownership Landscape
In the past, businesses in Dubai often needed a local partner holding a 51% share in commercial entities. Now, with changes to the Commercial Companies Law, many activities allow for 100% foreign ownership. Professional licences still require a local service agent, but that agent is only a representative – they do not hold a stake in the business. For many entrepreneurs, this ownership flexibility has turned Dubai into an even more attractive destination.
Which Activities the Instant Licence Covers
The Instant Licence is available for a wide range of activities, including (but not limited to) commercial, industrial, professional, and tourism. Under this scheme, Dubai has opened up over 2,000 business activities.
For those wanting to open shops, consultancies, e-commerce ventures, or trading establishments, the Instant Licence fits the bill perfectly. More regulated activities, such as medical centres, may require further approvals from authorities like Dubai Health Authority after you obtain the licence. It is important to remember that the licence gives you a head start, but it does not exempt anyone from eventually meeting the necessary standards or approvals.
Applying for the Instant Licence
Entrepreneurs can apply for an Instant Licence online through the Invest in Dubai portal or in person at approved service centres. The online application requires a UAE Pass or Emirates ID login. To process in person, a passport copy (plus a valid UAE visa or Emirates ID if relevant) is usually sufficient. The authorities may request a No Objection Certificate (NOC) from the existing sponsor if the applicant is on someone else’s visa.
A significant advantage is that no office lease or MOA is required during the initial application. The Department of Economy and Tourism uses a virtual site instead. If you need a Memorandum of Association for an LLC, you can generate an electronic one. This is optional when first setting up; some choose to do it immediately, while others wait.
Fees and Costs
For many startups, the cost of renting a physical office in Dubai represents a major outlay. The Instant Licence lets you postpone that expense for up to a year. Below is an overview of expected fees:
| Item | Approximate Cost |
|---|---|
| Licence issuance fee | AED 600–1,000 (varies by activity) |
| Trade name reservation | ~AED 620 (could be higher for foreign names) |
| Dubai Chamber membership | ~AED 300 |
| Market fee (municipal fee) | USD 70 (AED 250) (first year for Instant Licence) |
| Knowledge & innovation fees | USD 5.45 (AED 20 total) (AED 10 + AED 10) |
| Typing centre service (if used) | Several hundred dirhams (varies) |
This table shows that the overall government cost to launch a company with an Instant Licence often hovers around USD 410-840 (AED 1,500–3,000). These figures exclude optional fees such as a local service agent’s annual charge (if you have a professional licence), visa costs, or separate approvals. In the second year, the company will need a tenancy contract, and the market fee (2.5% of your office rent) can increase accordingly.
Renewal and the Requirements for Year Two
Your Instant Licence is valid for 12 months. After that, you are expected to supply all missing documents to renew. That includes:
- A tenancy contract (Ejari)
- A Memorandum of Association (if applicable)
- Any regulatory approvals not obtained yet
If these are not ready, the licence cannot be renewed. Companies should plan carefully, because although it is convenient to skip these steps initially, it is not a permanent exemption.
Advantages of the Instant Licence
Quicker Launch
The biggest draw is speed. Instead of dealing with tedious multi-step registration, the Instant Licence allows you to start operations the same day. General trading, consultancy, and many other low-regulation businesses benefit the most.
Less Upfront Expense
By delaying the need for an office, entrepreneurs save a significant amount in their first year. That money can be reinvested into marketing, product development, or hiring.
Minimal Paperwork
Entrepreneurs avoid immediate notarisation, Ejari registration, and various attestations. All that can come later, giving you breathing space to focus on your business rather than formalities.
Integrated Services
Companies get an establishment card from the immigration authority, membership with the Dubai Chamber, and initial work permit quotas without separate applications. It’s a neat one-stop-shop format that reduces admin.
Potential Drawbacks
Postponed, Not Eliminated
One year goes by quickly, and you will eventually need a lease and complete approvals. If you need to open a corporate bank account, some banks might prefer to see a physical address, which can create complications if you have no premises.
Approval Challenges
In regulated sectors (e.g., healthcare, finance), you still have to secure mandatory permits from the relevant authorities. Failure to do so on time could result in a non-renewable licence. The Instant Licence is not a free pass to operate in a restricted sector.
Not for Branches or Public Companies
If your aim is to open a branch of an existing business, the Instant route is not available. Similarly, public shareholding companies have a more complex process and do not qualify.
How it Stacks Up Against Other Licence Types
Instant Licence vs. Standard Mainland Licence
- Speed: A standard mainland licence often takes days or weeks because you need to finalise paperwork, secure a lease, and draft a Memorandum of Association. By contrast, an Instant Licence can be obtained in minutes.
- Paperwork: With the standard route, documents such as a tenancy contract and notarised MOA are required upfront. The Instant Licence defers these until renewal, making the initial setup far simpler.
- Cost: Traditional mainland licensing involves paying rent for an office from day one. The Instant Licence allows you to postpone office-related expenses for a year, potentially saving thousands in the early stages of your business.
Instant Licence vs. Free Zone Licence
- Processing Time: Many free zones can set up a company in less than a week, which is still relatively fast. Even so, the Instant Licence procedure is typically quicker, finalising almost immediately.
- Office Requirements: Free zone establishments usually require at least a shared desk lease within the zone. Meanwhile, the Instant Licence does not require any physical office in the first year.
- Local Market Access: Free zone businesses often face restrictions when trading directly on the UAE mainland and may need a local distributor. The Instant Licence provides mainland market access from day one.
Tax Considerations
- Mainland Corporate Tax: Mainland entities, including Instant Licence companies, are subject to the UAE’s 9% federal corporate tax if their profits exceed the specified threshold.
- Free Zone Exemptions: Some free zones offer tax exemptions, provided the business does not generate income in the mainland. However, for small to medium companies that value local market access, the ability to trade freely in the UAE can be more important than a potential tax benefit.
Keeping Abreast of Updates
As of May 2025, the Department of Economy and Tourism has continued to refine the Instant Licence programme. When the initiative first started, the market fee alone was USD 820 (AED 3,000). That figure dropped to just USD 70 (AED 250), a move that made the scheme even more attractive. Statistics from 2022 showed that over 7,000 Instant Licences were issued in one quarter alone, marking a significant boost in small business formation.
This streamlined approach goes hand in hand with the increased uptake of Invest in Dubai, an official portal designed to consolidate business setup steps, from licensing to labour and immigration. This means the process is largely digital. Dubai authorities remain keen to retain and potentially expand these incentives, ensuring the emirate remains a leading hub.
A Real Opportunity for Entrepreneurs
Considering that year two is when all normal requirements come into play, it is wise to set aside the time and budget to handle them well before the renewal date. Despite this extra layer of planning, the Instant Licence offers a major advantage: entrepreneurs can test ideas or launch new ventures without committing to a costly lease from day one.
It is also wise to remain aware of any external approvals. For instance, if your business calls for special industry permissions, do not leave that until month 11. Start the process early, so you have time to resolve unforeseen obstacles.
A Handy Recap
Here is a quick rundown of the essentials:
- You can get your Dubai business licence in minutes.
- No upfront MOA, no tenancy contract, and minimal documents.
- Nearly every activity is covered, except shareholding companies and branches.
- The first-year licence is fully valid, but you must supply any pending documents by renewal.
- Government fees for the first year typically range from USD 410-820 (AED 1,500–3,000).
- After year one, regular mainland requirements kick in.
If your business model works without a physical address and your chosen activity does not demand prior external approvals, this setup can unlock a fast and affordable route to the UAE market.
Start Your Business Today
For many people with a new business idea—especially if it can be run online or does not require a large office—Dubai’s Instant Licence is a compelling choice. It slashes initial costs and cuts out typical bureaucratic pain points, giving your venture a genuine head start.
And with the city’s strong international reputation, supported by a wealth of banking and logistics infrastructure, you can scale up rapidly once you are established. If you are considering a business in the UAE, the Instant Licence should be near the top of your list.
At Virtuzone, we have witnessed how the Instant Licence accelerates growth for thousands of entrepreneurs and small firms. By capitalising on a quick launch and then following up with the necessary documents, you can set yourself on the path to commercial success in one of the most dynamic environments in the world. Contact us today for more information.
