In the United Arab Emirates (UAE), the business landscape is constantly evolving, and the government has taken several initiatives to promote entrepreneurship and attract foreign investment. One such initiative is the introduction of the 8 Number License, which has gained popularity among small businesses and startups. This article aims to provide a comprehensive overview of the License, its benefits, eligibility criteria, the process of obtaining it, associated costs, and more.
What is an 8 Number License?
An 8 Number License, also known as a “Commercial License,” is a type of license issued by the Department of Economic Development (DED) in the UAE. It allows businesses to conduct commercial activities within the designated emirate. The license is suitable for small businesses, including retail stores, trading companies, and service providers.
Benefits of the 8 Number License
It offers several advantages to entrepreneurs looking to establish their businesses in the UAE. Let’s explore some of these benefits:
Easy Setup and Registration Process
Obtaining an 8 Number License is a relatively straightforward process compared to other types of licenses. The DEAD has simplified the registration procedure to encourage small business owners to set up their operations quickly and efficiently.
Cost-Effective Solution for Small Businesses
It is a cost-effective solution for small businesses and startups. The license fees and associated costs are relatively lower compared to other licenses, making it an attractive option for entrepreneurs with limited financial resources.
Allows Business Expansion
With a License, businesses have the flexibility to expand their operations within the designated emirate. Entrepreneurs can open multiple branches or engage in different business activities under a single license, providing them with the opportunity for growth and diversification.
Flexibility in Business Operations
It offers flexibility in terms of business activities. Entrepreneurs can engage in various commercial activities permitted under the license, such as retail, trading, consultancy, and general trading, depending on their business needs.
Eligibility Criteria for Obtaining an 8 Number License
To obtain an 8 Number License, certain eligibility criteria must be met. These include:
Business Activities Covered
It covers a wide range of business activities, such as retail, trading, general trading, consultancy, and more. It is essential to ensure that the desired business activity is included in the list approved by the Department of Economic Development (DED) for the specific emirate.
- To apply License , you will typically need the following documents:
- Passport copies of the business owner(s)
- Visa copies of the business owner(s)
- No Objection Certificate (NOC) from the sponsor (for expatriate business owners)
- Proposed trade name for the business
- Tenancy contract for the office premises
- Layout plan of the office premises
- A business plan outlining the nature of the business, target market, and growth projections
While there is no specific minimum capital requirement for it, it is important to demonstrate sufficient financial resources to support the proposed business activities. The DED may request bank statements or other financial documents as part of the application process.
Process of Obtaining an 8 Number License
The process of obtaining an 8 Number License involves several steps. Here is an overview of the typical process:
The first step is to apply for initial approval to the DED. This includes providing the necessary documents and obtaining approval for the proposed business activities and trade name.
Trade Name Registration
Once the initial approval is obtained, the next step is to register the trade name with the DED. This ensures that the chosen name is unique and compliant with the regulations.
Obtaining Initial Approval Certificate
After registering the trade name, you will receive the Initial Approval Certificate from the DED. This certificate confirms your eligibility to proceed with the license application.
Preparing Legal Documents
At this stage, you will need to prepare the legal documents required for the license application. This may include drafting and notarizing the Memorandum of Association (MOA), selecting a local service agent (if applicable), and preparing other supporting documents as per the DED’s requirements.
Renting Office Space
To obtain an 8 Number License, you are required to have a physical office space in the designated emirate. You will need to provide a tenancy contract and layout plan of the office premises during the application process.
Final Submission and License Issuance
Once all the necessary documents are prepared, they need to be submitted to the DED along with the required fees. The DED will review the application, conduct any necessary inspections, and upon successful completion.
Cost of Obtaining an 8 Number License
When considering the cost of obtaining an License, it is essential to take into account various factors. These include:
The fees for an 8 Number License vary depending on the emirate and the type of business activity. The fees usually include the initial approval fee, trade name registration fee, license issuance fee, and other applicable charges.
In addition to the license fees, there are other costs to consider, such as office rent, sponsor/local service agent fees (if applicable), visa fees for employees, insurance costs, and any professional fees associated with legal or accounting services.
Renewal and Cancellation of an 8 Number License
To continue operating your business, it is important to renew your License before its expiry. The renewal process typically involves
Renewal and Cancellation of an 8 Number License
To continue operating your business, it is important to renew your License before its expiry. The renewal process typically involves the following steps:
Submit a renewal application to the Department of Economic Development (DED) within the specified timeframe, usually before the license expiration date.
Pay the required renewal fees and any applicable fines or penalties.
Provide updated documentation if there have been any changes to the business, such as a new tenancy contract or updated trade license.
The DED will review the application, conduct any necessary inspections, and upon successful completion, issue the renewed 8 Number License.
If you decide to cease your business operations or no longer require the License, you can initiate the license cancellation process. The steps involved in canceling the License typically include:
Inform the DED about your intention to cancel the license.
Settle any outstanding financial obligations, such as fines, fees, or penalties.
Return the original license and any other relevant documents to the DED.
The DED will review the cancellation request and, upon approval, issue the necessary documents confirming the license cancellation.
Frequently Asked Questions (FAQs)
The 8 Number License in the UAE provides a cost-effective and flexible solution for small businesses and startups. Its streamlined setup process, lower costs, and the ability to conduct various commercial activities make it an attractive option for entrepreneurs. By understanding the eligibility criteria, the process of obtaining the license, associated costs, and the renewal or cancellation procedures, entrepreneurs can make informed decisions about establishing and managing their businesses in the UAE.
I am Saif. I am the founder and chief writer for his own website called KSA Expat Guide and a freelance writer and web developer for many other websites. I live in Saudi Arabia as an ex-pat. Love to research all about KSA. I use my spare time to learn new things, travel, and write about them, especially when it comes to technology and things from the past.