- An Oversight in Due Diligence
- Incomplete or Incorrect Paperwork
- Insufficient Proof of Finances
- Mismatch of Signatures
- Absence of Third-Party Approvals
- Trade Name Violations
- Non-Compliance with Office-Space Regulations
- Misalignment with Approved Business Activities
- How Zone10x helps you overcome licensing challenges
Setting up a business in Dubai can be one of the most rewarding experiences from an entrepreneurial perspective. The city’s strategic location and investor-friendly ecosystem are two of the reasons it retains its position as one of the top destinations for business setup. But despite the city’s pro-business policies, many applicants continue to face unexpected setbacks in their business setup experience. One of the most common barriers is the rejection of a Dubai trade license application.
While this can be disappointing, understanding the legal framework can help you reduce the risk of trade license rejections. The Zone10x experts have put together a list of common reasons for Dubai trade license rejections and what you can do to ensure that your trade license application gets approved.
1. An Oversight in Due Diligence:
Every business applying for a Dubai trade license or a Dubai free zone license undergoes due diligence checks by the relevant authorities. Rejections often occur when shareholders or company structures do not pass the required verifications in place.
2. Incomplete or Incorrect Paperwork:
Missing, invalid, and mismatched documents are among the top reasons for Dubai trade license rejections. Common mistakes include submission of a passport where the date of expiry is within six months or applying without a tenancy contract or a No Objection Certificate (NOC), when these documents are mandatory.
3. Insufficient Proof of Finances:
Applicants must demonstrate sufficient financial credibility and stability while applying for a trade license. Failure to provide valid bank statements or proof of minimum share capital requirements (wherever applicable) may result in rejection of trade license applications.
4. Mismatch of Signatures:
Dubai’s regulatory bodies have the strictest verification protocols to stop fraud and document forgery. Even a minor mismatch in a signature can result in application rejection.
5. Absence of Third-Party Approvals:
Certain activities related to health, finance, and education require additional approvals by their respective governing bodies, like the Dubai Health Authority or the Dubai Municipality. Failing to secure these permissions or pass the inspections may result in rejection of the trade license.
6. Trade Name Violations:
A trade name that violates UAE naming conventions, like containing religious or political references or duplication of an existing business, will be rejected.
7. Non-Compliance with Office-Space Regulations:
A valid office-space lease is an essential prerequisite for many mainland Dubai business license types. In some cases, rejections may arise due to discrepancies in the Ejari registrations.
8. Misalignment with Approved Business Activities:
Applications may sometimes be rejected if the activity you have chosen is restricted or does not adhere to the approved list of business activities that are permitted within a particular free zone. For mainland businesses, all business activities need to be a part of approved activities under the DET
How Zone10x helps you overcome licensing challenges
A Dubai trade license rejection may slow down your entrepreneurial momentum. However, that does not have to be the case. At Zone10x, we simplify the process of setting up a business in Dubai Here’s how we provide expert assistance for your Dubai trade license requirements:
1. Expert Guidance and Document Audit:
Zone10x goes the extra mile to ensure your documents meet all Dubai Department of Economy and Tourism (DET) and free zone requirements, by virtue of a pre-submission audit.
2. Quality PRO Services:
Right from visa processing to notarization, the Zone10x team handles every aspect, minimizing the risks of delay and rejection.
3. Effective Licensing:
Zone10x maintains established relationships across leading free zones and government departments that help you secure your Dubai business license in an efficient manner.
Our focus at Zone10x is to make setting up a business in Dubai smarter and fully compliant. From auditing your documents to liaising with government entities on your behalf, we handle all business license-related matters so you can go ahead and launch your business in a confident manner. Consult our team to get an estimate on your Dubai license cost.
