How to get initial approval for a Dubai trade license?

It can be exciting to start a business in Dubai, but you need to secure your initial approval for your Dubai trade license before you can register your business name or rent an officeThis early approval from the UAE government means that your business activity and ownership structure are allowed to proceed in Dubai. Without it, no company can move forward with registration.

In this guide, we’ll break down what initial approval really means, the documents required, application process, fees, and how professional consultants like Black Swan Business Setup Service simplify every step.

What Is Initial Approval in Dubai Business Licensing?

Initial approval is the initial official permit from the Department of Economy and Tourism (DET) or the appropriate free zone authority that approves a foreign or local investor to launch a business in Dubai.
It does not signify that your company is licensed at this time, but it does suggest that your business idea fits with the rules and regulations in the UAE.

Why It Matters

• It confirms your business activity (e.g., trading, consultancy, manufacturing) is allowed.
• It approves your ownership structure, including foreign shareholders.
• It enables you to reserve a trade name and move ahead with document notarisation, tenancy contracts, and final licensing. Get details on Business Setup in Dubai.

Steps to Get Initial Approval for a Dubai Trade License

Step 1: Choose the Right Business Activity

Before anything else, determine the exact activity you’ll conduct—commercial, industrial, professional, or tourism.
The DET has over 2,000 approved business activities, and your category dictates which license you’ll need later.

Step 2: Decide on Jurisdiction — Mainland vs. Free Zone

You must select where to set up your business:

Your chosen jurisdiction determines which authority issues initial approval.

Step 3: Reserve a Trade Name

Next, reserve a unique trade name. Dubai requires that your business name:

• Reflects your activity,
• Avoids religious or political terms,
• Doesn’t duplicate an existing company name.

Once approved, the trade name reservation certificate is attached to your initial approval request. Obtaining an General Trading License in Dubai.

Step 4: Prepare the Required Documents

To get your first approval, you need:

Step 5: Submit the Application

Applications are made online via the DED e-services portal, Invest in Dubai, or your free zone authority’s platform.
You can also file it in person through authorised service centres.

After submission, the authority reviews:

• The nature of your business activity
• The shareholders’ nationality and legal form
• Compliance with naming conventions and public decency laws

If everything is in order, you’ll get the Initial Approval Certificate—usually within 1–2 working days. Looking for a Business Setup Consultant in Dubai?

Government Fees and Processing Time

Note:Some activities need additional external approvals such as those controlled by media, health, or education authorities which can extend the processing time by a week or more weeks.

What Happens After Initial Approval?

After get initial approval, you can do:

1. Prepare the Memorandum of Association (MoA) or Local Service Agent Agreement (if suitable).
2. Secure office premises and submit the Ejari tenancy contract.
3. Apply for final trade license issuance from DET or the free zone authority.
4. Obtain additional approvals (if your business is in healthcare, transport, food, etc.).

Basically, the initial approval serves as your green signal to begin the physical and legal steps of business setup. Get details on Trade License Amendment Service in UAE.

Common Reasons for Initial Approval Rejection

Even small mistakes can delay or reject your application. Common errors include:

• Incomplete documents (missing shareholder passports or NOCs).
• Inconsistent trade name (not matching activity type).
• Prohibited activities (those requiring special clearance).
• Incorrect jurisdiction choice (trying to operate a mainland activity in a free zone).

How Black Swan Business Setup Service Can Help

At Black Swan Business Setup Service, we handle every detail—so you don’t have to worry about rejected forms or long government queues.

Our consultants:

• Analyse your business model and suggest the ideal license type and jurisdiction.
• Prepare and submit your initial approval documents electronically.
• Liaise with DET and free zone authorities for faster approval.
• Secure trade name reservation, external permits, and even office space if needed.

We’ve helped hundreds of startups, SMEs, and international investors obtain their Dubai trade licenses without delays or hidden costs. Obtaining an Professional License in Dubai.

Tips to Speed Up Your Approval Process

• Make sure consistent spelling of names across all documents.
• Choose a clear, simple business name to avoid rejection.
• Attach attested copies if documents are from outside the UAE.
• Always cross-check your activity code in the DET directory.
• Seek help from a registered business consultant like Black Swan.

Quick Summary Table

Related Articles:

» How to Renew Trade license in Dubai?

» How to get Instant Trade License in Dubai?

» What is the Procedure to get Trade License in Dubai?

» Different Types of Trade Licenses in Dubai

» What is the Process for Registering a Trade License in Dubai?

Getting Initial Approval for a Dubai Trade License

It’s not very tough to get initial approval for a Dubai trade license yet it is a significant step. It indicates your business idea is in compliance with Dubai’s business rules and that you’re ready to proceed on to the next step that is getting your full trade license.

You can through the red tape and start your company confidently, fully compliant, and ready to trade in the UAE market with the help of Black Swan Business Setup Service.

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