Starting a business in Dubai? The Department of Economic Development (DED) is your go-to authority for getting started. The DED is the main organization that supports and regulates businesses in Dubai Mainland, ensuring they operate smoothly and legally
Did you know that Dubai ranks among the top global cities for ease of doing business? In 2023, the UAE was ranked 16th globally in the World Bank’s Ease of Doing Business Index. This is just one of the many reasons why so many entrepreneurs choose Dubai as their business hub.
Getting a DED license isn’t just a legal step; it’s a golden ticket to tap into Dubai’s booming economy. A DED license in Dubai allows you to trade freely across the UAE, reach local customers, and take advantage of Dubai’s tax-free profits and world-class infrastructure. Whether you want to open a retail shop, launch a service business, or start a trading company, a DED license is the key to making it happen.
So, let’s understand everything you need to know about getting your DED license, from the types of licenses available to the step-by-step process, helping you kick-start your business journey in Dubai with ease.
What is a DED License?
The DED license in Dubai is an official authorization required to operate a business in Dubai Mainland. The license is issued directly by the Department of Economic Development after successfully evaluating your application. It serves as a permit that legally allows businesses to carry out their chosen activities within the jurisdiction of Dubai.
You can apply for a commercial license or a DED professional license in Dubai based on your business requirements. However, you don’t need to worry about the type of license or the steps to obtain if you collaborate with Shuraa Business Setup. We help you secure your desired license by doing all the heavy lifting for you.
Benefits of Obtaining a DED License in Dubai, UAE
Obtaining a DED license in Dubai provides many advantages for entrepreneurs and business owners. Here are some key benefits:
1. Access to Dubai Mainland Market
A DED license allows businesses to operate in the heart of Dubai Mainland, providing direct access to the city’s bustling commercial and residential markets.
2. Greater Business Flexibility
With a DED license, businesses can operate across a wide range of activities, such as retail, professional services, and industrial activities.
3. 100% Foreign Ownership
DED licenses allow for 100% foreign ownership of businesses, providing complete control and flexibility to foreign investors
4. Opportunities for International Business
A DED license enables foreign investors and business owners to operate within Dubai and gain access to the larger Middle East, Africa, and South Asia (MEASA) region.
5. Tax Benefits
Dubai offers a favourable tax environment with no personal income tax, corporate tax exemptions (for a certain limit), and no capital gains tax. This makes it an attractive location for business owners seeking to maximize profits and reduce operational costs.
6. Easier Visa Processing
One of the primary advantages of holding a DED license is the ability to apply for UAE residence visas. This is crucial for both business owners and employees who need to work and reside in Dubai.
7. Credibility and Trustworthiness
A DED license is recognized by both government and private sector entities, adding credibility to your business. Clients, partners, and suppliers will trust a licensed business more than an unlicensed one, improving the overall reputation of your company in the market.
Types of DED Licenses in Dubai
The Department of Economic Development (DED) in Dubai offers several types of licenses, each tailored to specific business activities. Here are the main types of DED licenses in Dubai:
1. Commercial License
A Commercial License in Dubai is ideal for businesses that are involved in trading activities, such as the buying and selling of goods and commodities. This license is one of the most sought-after in Dubai due to its versatility.
Examples:- General trading companies (dealing with multiple product categories).
- Retail stores and wholesale outlets.
- Import/export businesses handling goods like electronics, food items, or textiles.
2. Professional License
A Professional License is designed for businesses that provide specialized services based on expertise, knowledge, or skill. It is especially suited for individuals or firms offering consultancy or professional services.
Examples:- Management consultancies and IT service providers.
- Accountants, auditors, and legal advisors.
- Artists, designers, and freelance professionals like writers or photographers.
3. Industrial License
An Industrial License is issued to businesses engaged in manufacturing or production activities, where raw materials are processed into finished products. This license is critical for industrial setups in Dubai.
Examples:- Factories produce goods like furniture, electronics, or food products.
- Plants involved in assembling machinery or vehicles.
4. Tourism License
A Tourism License in Dubai caters to businesses that operate in the travel and tourism industry, a vital sector of Dubai's economy. This license supports companies involved in promoting Dubai as a global tourist destination.
Examples:- Travel agencies organizing inbound and outbound tours.
- Tour operators offering city tours, desert safaris, and cultural experiences.
- Hotel management companies.
DED Dubai License Activity List
Here are some key business activity categories available under DED licenses:- General Trading
- Specific Trading (e.g., electronics, textiles, food)
- Retail and Wholesale Trade
- Import and Export
- Communications and Broadcasting
- Passenger Transportation and Car Rental
- Brokerage Services
- Trading and Distribution of Various Products
- Facility Management
- Rental Services (including office spaces & electronic equipment)
- Livestock Trading
- Investment Activities
- Insurance Services
- Perfumery & Packaging Services
- Property Investment
- Motor Vehicle and Motorcycle Trading
- Cleaning and Surveillance Services
- Supermarket and Stores
- Consultancy Services (e.g., management, financial, legal)
- Engineering Services
- IT Services
- Medical and Healthcare Services
- Educational Services
- Beauty and Wellness Services
- Accounting and Auditing
- Architecture and Interior Design
- Marketing and Advertising
- Translation and Interpretation
- Manufacturing (general)
- Machines and Appliances
- Food Processing
- Electricity Generation & Transmission
- Textile & Product Fabrication
- Petroleum Products Production
- Motorcycles & Replacement Parts
- Chemical Manufacturing
- Gold & Precious Stone Cutting
- Garment and Rug Production
- Ship Construction
- Waste Collection & Disposal
- Plastics Manufacturing
- Eyeglasses Production
- Paper Products Manufacturing
Check with the official DED channel or consult a business setup specialist to discuss your business activity for Dubai mainland business setup.
Who Can Apply for a DED License?
The following individuals and entities can apply for a DED (Department of Economic Development) license in Dubai:
- Entrepreneurs, both local and foreign, looking to start a new business.
- Professionals who want to establish a business offering specific services (e.g., consultants, doctors, lawyers).
- Local companies expanding their operations.
- Foreign companies setting up a branch or subsidiary in Dubai.
Document Required for DED License in Dubai
Here’s the list of all the documents and approvals you need to get a DED license in Dubai:- Duly filled license application form
- Passport copy of the shareholders
- Entry stamp or visa page
- Passport-size photograph as per the protocols (size, background colour, etc.)
- Trade Name Approval
- Tenancy Contract (Ejari)
- External approval certificates (if any)
- Emirates ID copies of UAE residents involved in the business
- Consent from the Municipality and the Road and Transport Authority (if applicable)
How to Apply for a DED License in Dubai?
Getting a DED license in Dubai involves a straightforward process, provided you follow the necessary steps. Here's a detailed guide to help you:
1. Determine Your Business Activity
Choose the type of business activity you want to undertake. Ensure the activity is allowed in Dubai Mainland and aligns with the DED’s approved list of business activities.
2. Decide on the Legal Structure
Choose the legal structure of your business, such as:- Sole proprietorship.
- Limited Liability Company (LLC).
- Civil company.
- Branch of a foreign company.
3. Choose a Trade Name
The next step is to reserve a legal trading name for your venture in the UAE. Applicants must follow all the naming convention guidelines before finalizing the list of desired business names. Ensure that you don’t use any derogatory terms or words that hurt the sentiments of a community or religion.
4. Draft and Notarize the Memorandum of Association (MOA)
Prepare an MOA, which outlines ownership shares and operational rules. If applicable, draft a Local Service Agent Agreement for professional licenses. Notarize these documents at a public notary.
5. Secure a Business Location
Rent an office space and obtain a tenancy contract. Register the tenancy contract with Ejari, Dubai’s online rental registration system.
6. Apply for a DED Business License
You can proceed with the DED mainland license setup procedure once you’re done with all the above steps. Ensure that you submit all the required documents and certificates to the DED for evaluation. The economic body will contact you in case they find any discrepancy in your business license application.
7. Pay the License Fees
Pay the DED licensing fees, which vary based on your business activity and location. Obtain your payment receipt.
8. Open a Bank Account
Opening a corporate bank account is critical for managing all your monetary transactions. Always choose a reliable bank that offers long-term benefits and high-class banking services. The business experts at Shuraa Business Setup suggest the best banks for you after analyzing your business model and transactional frequency.
9. Receive Your DED License
Once the application is approved and fees are paid, the DED issues your business license. After receiving the license, you can legally start your business operations in Dubai Mainland.
Note: For a hassle-free experience, you can also consult professional business setup services, such as Shuraa Business Setup, to handle the process on your behalf.
DED License Cost in Dubai
The cost of a DED license in Dubai varies based on your business activities and the location of your company. A DED license cost typically starts from AED 12,500 to AED 25,000, covering fees for the DED license, trade name registration, and administrative services.
The DED license fee is one of the major costs and varies based on factors like:- Type of business (commercial, professional, or industrial).
- Number of partners or shareholders.
- Type of legal structure (LLC, sole proprietorship, etc.).
- The nature of the business activity.
For instance, a commercial DED license is more expensive than a professional license, ranging from AED 11,000 to AED 35,000, due to additional approval requirements and varying visa applications. Both licenses offer the advantage of complete business ownership, making them attractive options for entrepreneurs in Dubai.
For an accurate and more detailed cost breakdown, get in touch with Shuraa experts today.
How to Renew a DED License in the UAE?
Business owners must renew their DED license in UAE from time to time to maintain its validity. The UAE’s government has the authority to penalize your business or blacklist your company if you’re caught having an invalid license. Trade license renewal is a straightforward process.
All you need to do is renew your tenancy contract, fill the BR/1 form, and submit these alongside a copy of your old license. You’ll get the license renewal for one year after which you’ll need to repeat the same process.
Why Choose Shuraa for Your DED License?
Getting a DED license in Dubai is an important step for anyone wanting to start a business in the city. It opens doors to countless opportunities, allowing you to operate in the heart of Dubai, access government contracts, and enjoy the city’s tax benefits.
At Shuraa Business Setup, we have over 23+ years of experience in helping businesses get started in Dubai. We make the process easy by taking care of all the paperwork, approvals, and legal requirements. Plus, we offer customized solutions, including office space and sponsorship support, to make sure everything is in place for your business to grow smoothly.
Let Shuraa’s team help you get your DED license and set up your business with ease. Contact us today, and we’ll guide you through every step of the process.
