Umm Al Quwain trade licence: process and fees

The Umm Al Quwain DED's page on practising economic activity says any industrial, commercial or professional activity in the emirate needs a DED licence. Approvals from the relevant ministries, authorities and government bodies are also needed where the activity requires them. No one may carry on a profit-making activity without a licence.

The DED sets three conditions for the licence holder:

1. the applicant must be at least 21 years old;
2. the applicant must not hold licences that expired more than one month ago;
3. the applicant must meet the specific conditions of the activity.

General conditions follow. They include complying with UAE laws, not acting against public security, following Islamic Sharia, and a ban on gambling and on activities against public morals. The DED also says licence holders must follow any future law issued by the relevant authorities.

The DED's trade name service card adds a route for under-21s: a letter from the court permitting the person to practise the activity. If you are under 21, raise this with the DED first.

The trade name is the first step. The DED lists these name rules: no duplicate names, no political meaning, nothing against Sharia, customs or traditions, and no names or attributes of God (compound names are excepted). A name must not breach federal or local rules or be misleading, and it must not appear on the UAE flag or any other flag or sacred symbol. Arabic names that describe the activity are preferred, and the DED may refuse or change a proposed name.

On fees, the DED page says the name is reserved for one year after payment, at AED 300 for three months, renewable four times for one year. This text appears on the DED's Arabic page as archived on 22 May 2022. By September 2024 the page had been replaced by a licensing guide that gives no fee, so confirm the current charge.

The trade name service card asks for:

• original ID, passport copy, email and phone for a UAE or GCC licence holder;
• for an expatriate director-in-charge, original ID, passport copy, residence visa, email and phone;
• a sponsor NOC certified by the Chamber of Commerce or free zone where the director-in-charge is resident outside the emirate (for branches with a different manager);
• a power of attorney if the person concerned is absent;
• three proposed names describing the activity, in Arabic with English translation, and a printout of the activities.

See also our guide to UAE trade name rules.

The DED's service card for issuing a limited liability company licence describes the service as giving the customer a licence to start a business. It says a new licence is issued for one year from the date the licence fee is paid. The requirements listed are:

• initial approval issued by the DED;
• security approval;
• external approvals, depending on the activity;
• lease contract details;
• membership registration with the Umm Al Quwain Chamber of Commerce and Industry;
• registration in the security surveillance system;
• the signboard;
• an attested memorandum of association.

The card also requires registration of the real beneficiary (beneficial owner) through the DED's e-services site, ded-e.uaq.ae.

The English page of the same card covers a business company licence. It lists the same items, but with a services agent contract and a business company contract in place of the memorandum. The DED's licensing guide also has a card for a service agent licence. Which card applies depends on your legal form and the partners' nationality, so confirm the form with the DED before drafting documents.

Umm Al Quwain also checks the premises. The DED's conditions page sets out four tests for the 'technical evaluation of the work site':

• Organisation: no new business may open, or an existing one move, next to a business in the same activity without DED approval. The location must also fit the approved distribution of activities across areas and main roads.
• Appearance: neighbouring shops are considered, including how well their activities and size fit with existing licences.
• Health: premises whose activities may affect human health and safety. The DED refers applicants to its inspection section.
• Safety: premises handling flammable or hazardous materials. The DED refers applicants to the Civil Defence representative at the department.

In practical terms, do not sign a long lease before the DED has accepted the location for your activity. A lease that fails the organisation test can delay the licence or force a move. A 2015 DED news item described offices of Civil Defence, the Chamber of Commerce, the residency department and the post office inside the DED building, to reduce visits to other counters. Ask whether those desks are still on site.

Apart from the trade name charge, we found no published Umm Al Quwain DED fee schedule. That covers licence issue and renewal fees, initial approval fees and activity surcharges. The DED's licensing guide and service cards list requirements, not amounts. We do not quote third-party cost figures, because they are not official.

To get the real cost, contact the DED. Its service cards give:

• phone +971 6 706 4000;
• P.O. Box 1333, Umm Al Quwain;
• e-services at ded-e.uaq.ae.

Ask for an itemised estimate for your activity, legal form and premises. Ask it to separate DED fees from other bodies' charges, such as the Chamber of Commerce membership the licence requires.

Once licensed, the business must deal with federal tax. That means corporate tax registration with the FTA, and VAT registration once taxable supplies pass AED 375,000 in twelve months. If you are weighing Umm Al Quwain against a neighbouring emirate, compare Ajman's DED licence and Sharjah SEDD fees. TaxAdvisors can prepare the estimate request and check the tax set-up with you.