In the fast-paced world of Dubai business, time is often your most valuable currency. If you have a business idea and want to execute it immediately without getting bogged down in weeks of paperwork, the Dubai Instant License is your answer.
Launched by the Dubai Department of Economic Development (Dubai Economy/DED), this initiative allows entrepreneurs to secure a commercial or professional license in as little as five minutes.
Unlike traditional setups that require a lease agreement (Ejari) and finalized legal documents regarding the company formation before issuance, the Instant License allows you to start trading first and sort out the physical logistics later.
In this guide, we will break down the costs, the unique “virtual” benefits, and the digital process of obtaining your Dubai Instant License.
A Dubai Instant License is a permit issued by the DED that enables individuals and companies to start conducting business immediately. The key differentiator is that no lease agreement (Ejari) or physical office location is required for the first year.
Who is it for?
It is designed for entrepreneurs who need to legally invoice clients, secure a residency visa, or open a bank account urgently, without waiting to find a physical office space.
Key Differences:
The Instant License covers a vast majority of activities regulated by the DED. However, it is important to note the categories:
Permitted Categories:
Restricted Activities:
Activities that require external approvals from other government bodies (such as the Dubai Health Authority for clinics or the RTA for transport) generally cannot be formed under an Instant License initially. These usually require the standard process.
Why are so many startups choosing this route?
1. No Office Rent Required (Year 1)
This is the biggest financial benefit. You do not need to present a tenancy contract (Ejari) for the first year. This saves you roughly AED 20,000 – AED 50,000 in upfront rent costs.
2. Speed of Issuance
The entire process is digital. If all requirements are met, the license is generated in minutes.
3. Minimal Documentation
For many applicants, the only document required is a valid passport (and Emirates ID if you are already a resident).
4. 100% Ownership Options
Just like standard mainland licenses, foreign nationals can own 100% of the company for most commercial and professional activities.
The cost of an Instant License is competitive, but it varies depending on the structure (Sole Establishment vs. LLC) and the trade name fees.
Estimated Cost Breakdown:
Total Estimated Range: AED 13,000 – AED 18,000 for the first year.
Note: In the second year, when you renew, you must rent an office, so your costs will increase to include rent and standard market fees.
The application is processed through the “Invest in Dubai” platform or authorized Service Centers.
Step 1: Choose Your Trade Name
Select a name for your business. It must not be currently in use.
Step 2: Select Legal Form & Activity
Decide if you are opening a Civil Company, LLC, or Sole Establishment, and select your activities from the DED list.
Step 3: Add Partners/Shareholders
Input the details of all owners. If you are already in the UAE, this is done via UAE Pass. If you are abroad, passport details are required.
Step 4: Payment & Issuance
A “payment voucher” is generated. Once paid online, the license is issued immediately in a digital format.
Step 5: Visa Application
Once the license is in hand, you can immediately apply for your immigration card and investor visas.
It is vital to understand that the Instant License structure changes upon renewal.
Failing to secure an office by the time the first year expires will prevent you from renewing the license.
The Dubai Instant License is arguably the most efficient way to enter the UAE market. It removes the two biggest barriers for new startups: the need for immediate office space and the time spent on paperwork.
By allowing you to test the market for one year before committing to a physical premises, it offers a “lean startup” approach to doing business in Dubai.
Whether you are a freelancer scaling up or an international trader, the Instant License gets you operational today so you can focus on profit tomorrow.
Q1: Can I issue visas under a Dubai Instant License?
Yes, you can apply for an establishment card and issue visas for yourself and employees immediately after receiving the license.
Q2: Do I need a Local Sponsor for an Instant License?
For most professional and commercial activities, 100% foreign ownership is allowed. However, depending on the activity, you may still require a Local Service Agent (LSA) for administrative purposes, though this is becoming less common.
Q3: Can I open a bank account with an Instant License?
Yes, UAE banks recognize the Instant License. However, some banks may request a “physical contact address” or have stricter compliance checks since there is no physical office.
Q4: Is the Instant License valid for Free Zones?
No. The Instant License is a Mainland product issued by the Dubai DED. It allows you to trade anywhere in the UAE and internationally.