What is a Dubai Municipality license?

The prime location and strong infrastructure of Dubai make it an excellent place to start a business. However, starting a business here requires registration with the Dubai Municipality. Every business, big or small, requires a license from Dubai Municipality to operate legally within the city. However, there are certain aspects associated with it. Hence, business owners must be aware of the overall process of company registration in Dubai Municipality, the primary documents required, the Dubai Municipality license, the rules and regulations, and other accompanying legal steps.

Let’s find out how you can go about the process.

Dubai Municipality License

A Dubai Municipality license is a legal document that authorizes an entity to set up, carry out, and practice a particular business within the Emirate. The DED (Department of Economic Development) is the prime authority that issues this license after carefully reviewing and assessing the business plan.

List of activities that require Dubai Municipality approval

The below activities require approval from Dubai Municipality:-

Construction project
Medical Clinic
Food or beverage establishment
Retail store
Manufacturing or selling goods
Getting a trade license
Events
Nightclub or entertainment venue
Waste transportation
Expansion and renovation of a building
Storage of dangerous goods
Import-export of food products

Licenses issued by Dubai Municipality

The Dubai Municipality issues licenses in various categories –

Commercial license – Covers a wide range of commercial activities, such as retail stores, restaurants, cafes, supermarkets, trading companies, and more.
Industrial license – Covers activities related to manufacturing, processing, or assembling goods within Dubai.
Professional license – Issued to professionals in various fields, such as doctors, engineers, consultants, accountants, lawyers, and other service-based professions.
Healthcare license – Issued to healthcare facilities, clinics, hospitals, pharmacies, medical laboratories, and other healthcare-related businesses.
Educational license – Issued to schools, colleges, training centers, and educational institutions.
Tourism license – Covers tourism and the hospitality sector, such as hotels, travel agencies, and tour operators.
Construction license – Covers construction and contracting activities, such as contractors, builders, and engineering firms.
Food establishment license – Issued to businesses engaged in food preparation and delivery activities, such as restaurants, cafes, bakeries, and catering services.
Transportation license – Issued to businesses in the transportation sector, such as logistics companies, freight forwarders, and transportation service providers.
Cleaning and maintenance license – Covers cleaning services, facility management, pest control, landscaping, and maintenance activities.
Advertising license – Issued to advertising agencies, media production companies, marketing firms, and outdoor advertising providers.
Entertainment license – Issued to businesses in the entertainment and leisure sector, such as amusement parks, cinemas, theaters, sports clubs, and recreational facilities.

This is not the complete list and there might be other categories depending on specific business activities. It is advisable to consult with a business setup consultant at Shuraa to determine the specific license applicable to your business.

Steps to Company Registration in Dubai Municipality

There’s a series of steps involved in registering a company with Dubai Municipality. Following these steps ensures the company’s compliance with regulatory requirements and establishes its legal presence in the emirate.

Determine the business activity

Identify the business activities you want to engage in your Dubai company. This is a crucial step in the registration process. Dubai Municipality classifies businesses based on the activities they perform in the emirate.

Choose a business structure

There are various options of legal structures available in Dubai for business setup. For instance, sole proprietorship, partnership, limited liability company (LLC), etc. The business owner needs to choose one based on their requirements, after assessing the perks and drawbacks of each structure.

Trade name reservation

A unique trade name will help the business stand out from the crowd. Hence, the owners must find a name that is suitable to the company based on its primary activities and aligns with the guidelines of the Dubai Municipality. Then submit the selected name to the DED (Department of Economic Development) and get approval.

Prepare the MOA

The Memorandum of Association (MOA)is a key document of a company that outlines the objectives, structure, and details of the shareholders associated with the company. The business owners must, thus, ensure to prepare a well-structured MOA and get it notarized by the relevant officials.

Submit the initial approval

Before confirming company registration in Dubai Municipality, the business owners must seek initial approval from the DED. They need to provide details about the business, shareholders, and the proposed location and receive an initial approval certificate.

Choose a suitable location

The physical location you choose for your company setup must comply with the regulations of the respective jurisdiction. Hence, make sure that the premises are suitable for your selected business activities.

Draft the local service agent agreement

Foreign investors who are setting up business in Dubai might have to draft an agreement with a local service agent, a UAE national, or a UAE-based company.

Notarize documents

The MOA and other key documents must be notarized by a notary public in Dubai in order to legalize the company’s documentation.

Submit documents to Dubai Municipality

Finally, submit the documents including the trade name certificate, initial approval certificate, MOA, passport copies of shareholders, and other relevant paperwork to Dubai Municipality for review.

Documents required for the Dubai Municipality License:-

Business activity registration certificate
No-objection certificate (NOC) from the relevant authorities
The lease agreement for the office space
Trade name registration certificate
MOA and AOA
Passport copies of the shareholders and managers
Visa copies of the employees

Fees for company registration in Dubai Municipality

The journey of company registration in Dubai Municipality involves a comprehensive understanding of the related costs, which encompasses various elements such as initial approvals, trade name reservations, licensing, and additional permits based on the nature of the business activity. Such detailed assessments allow companies to anticipate costs accurately and ensure a smooth financial transition into legal operation within the framework.

Essential tips for getting Dubai Municipality registration

There are certain points that you need to remember before getting approval from the Dubai Municipalities –

Make sure to keep all the documents handy before submitting the application. in case of any additions, the time for approval might be extended.
The business owners must be prepared to encounter the questions of Dubai Municipality regarding the company registration application. They must be clear and precise about their business activities and should be able to explain why they want approval for it.
Most importantly, be confident and patient about your business registration and the legal formalities related to it.

Registration with FIRS System

After completing the registration, email the Dubai Food Trade Commission to activate your FIRS services. You might require the following documents for this step:-

IRS Application form (signed and stamped)
UAE Trade License Copy
Company’s Authorization Letter to the Dubai Municipality Food Safety Department affirming the details of the individual handling the matters related to the food trade control section.
Company representative’s Emirates ID

Let Shuraa help you

Company registration in Dubai Municipality can be challenging. This guide will, thus, give you an idea about the process and get you well-versed in the concept of Dubai Municipality Registration. The team of company registration specialists at Shuraa Business Setup possesses a deep understanding of the Dubai Municipality approval process and thus, can save you time and hassle by handling this process for you.

If you have any further questions, contact Shuraa experts at +97144081900, WhatsApp at +971507775554, or email info@shuraa.com for prompt assistance.