Doing business in Dubai is definitely a fantastic opportunity for entrepreneurs and international investors. But there are several types of business activities in Dubai that need additional permissions before the trade license is issued. This permission is known as external approvals.

Unfortunately, many investors miss this important point at the initial stage of their company setup process. Hence, it is vital to know what external approvals are needed for your business activity and why.

What Are External Approvals in Dubai?

External approvals refer to special permits issued by particular UAE governmental authorities based on the type of the activity.

Whereas the trade license is issued by the licensing body (the free zone or the licensing authority), some business activities require obtaining additional permissions before the company can officially commence its operations.

Why External Approvals Are Important

External approvals are a very important part of the UAE company setup process since they help to confirm that the selected activity is allowed under all regulations.

If your company does not obtain the required approval, then:

You will not be able to get a trade license

Your activities will be limited

Visa issuance will be complicated

Banking procedures will be hard to complete

Your company will be subject to compliance violations

Hence, it is really important to select the right activity in order to understand what approvals you should obtain.

Types of Businesses That Need External Approvals

There are lots of different activities in Dubai that need approvals from specialized authorities.

Restaurant and Food Businesses

The food trading business, for example, restaurants, cafes, cloud kitchens, and so on, would require the following licenses:

• Dubai Municipality

• Food Safety Department

Medical & Healthcare Businesses

The healthcare business, which includes clinics, medical centers, pharmacies, healthcare consulting firms, and many more, requires the following licenses:

• Dubai Health Authority

Educational Activities

Training institutes, courses, and other educational institutions would generally require the following licenses:

• Knowledge and Human Development Authority

Tourism Companies

The tourism business, such as travel agencies, tour operating companies, and so on, will require the following licenses:

• Dubai Department of Economy and Tourism

Maritime Businesses

The shipping and maritime business, including logistics firms, shipping companies, and many more, would require the following licenses:

• Dubai Maritime City Authority

Crypto and Blockchain Businesses

Crypto-related activities like digital asset management companies, virtual assets management companies, etc., may require the following approval:

• Virtual Assets Regulatory Authority

• These business activities are highly regulated in the UAE.

• Most Common Problems of Investors

One of the main mistakes that investors do when setting up a business in Dubai is choosing the activity and then finding out about approval requirements.

As a result, they can experience problems such as:

• License issuance delays

• Unexpected government fees

• Office requirement changes

• Compliance violations

• Resubmission of documents

In some cases, investors may even need to change the activity that they chose at the initial stage.

Documents Needed to Obtain External Approvals

The exact list of documents depends on the type of activity. But here are the most common documents used in Dubai:

• Passport copies

• Emirates ID copies

• Business plan

• Tenancy agreement

• Certificates

• Technical documents

• Application forms for regulatory bodies

• But some types of regulated activities may require the following additional documents:

• Experience certificates

• Membership certificates

• Safety inspection reports

• Technical drawings

Why You Should Get Help of Experts

It may be quite complicated to get all the external approvals because different government authorities have different requirements.

But with the help of professional business setup consultants, you will be able to:

• Select the right business activity

• Identify approval requirements

• Prepare necessary documents

• Coordinate with government authorities

• for better compliance with regulations

• Get fast processing of documents

• Final Words

There are many opportunities in Dubai for entrepreneurs and foreign investors, but appropriate preparation is necessary before embarking on business operations.

Getting external approvals is extremely important in sectors like healthcare, food trade, tourism, maritime services, education, crypto businesses, etc.

so that we make sure your business will run smoothly without any problems while forming your company.

However if you need any support for setting up your business or any question related any approval our expert team can guide you.