Initial approval

A confirmation from the licensing authority that it has no objection to you, personally, owning a business carrying out your proposed activity. It is a stage in the process rather than a licence, and it does not permit you to trade, sign a lease or hire anyone.

Where it comes up

Initial approval is the authority confirming it has no objection to you owning this business doing this activity. It sits between name reservation and licence issuance, and it is routinely mistaken for the licence itself.

What it costs

A modest fee, and it is time-limited — if the rest of the file stalls, the approval lapses and the fee is spent.

Who it applies to

Every company formation, mainland and free zone, though the terminology varies by authority.

How it actually goes

1. Submit the activity listThe proposed activities, shareholders, and the manager's details.
2. Wait for the no-objectionThe authority confirms it has no objection in principle. Regulated activities go out to a second regulator at this point.
3. Use the windowThe approval is time-limited — typically six months. Name reservation, notarisation and premises all happen inside it.
4. Do not tradeInitial approval is permission to continue the process, not permission to invoice.

Where an activity needs external approval, the initial approval stage is where that becomes visible. Finding out at this point costs weeks; finding out after signing a lease costs considerably more.

In short

• Confirms no objection to the owner and the activity
• Time-limited — the file must progress before it lapses
• Not a licence, and confers no right to operate

Where this leads

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