Dubai DED Licensing Process A Complete Guide

Table of Contents

1. Introduction
2. What is the DED License in Dubai?
3. The advantages of having a DED License in Dubai
4. Types of DED or Trade Licences in Dubai
5. Who Can Apply for a DED License?
6. Documents for the DED License in Dubai
7. Procedure for Getting a DED License in Dubai
8. Prices of DED License in Dubai
9. Conclusion

A DED or trade license is a legal authorization that enables an individual to conduct business in the Dubai Mainland and indulge in trade and specified activities mentioned in the license. It is issued by the Department of Economy and Tourism (DET), which combines the Department of Economic Development and the Department of Tourism to make business setup in the Emirate much easier. Acquisition of a DED license in Dubai involves obtaining a type of License, obtaining approvals, registering a company, and satisfying DED requirements. It provides business flexibility, access to the local market, and broader business scope. 

In this article, we will provide a clear description and/or information related to the DED License in Dubai.

What is the DED License in Dubai?

A DED License in Dubai, issued by the Department of Economic Development (DED), is the official License granted to businesses for legal operation in the Emirate. It is a legal document that outlines the business activities your company is permitted to conduct. However, it is an essential stage for any business activity in the Dubai Mainland to get a DED License for legitimacy and full access to the local market. This license type is crucial for businesses seeking to operate on Dubai’s mainland and undertake various commercial, professional, industrial, or tourism-based operations.

The advantages of having a DED License in Dubai

A DED License in Dubai is beneficial in many ways for setting up businesses in the Emirate.

Market Access: Unlike the Free Zone licenses, a DED permit gives you access to the Dubai and UAE markets, which will help you access larger customers. You can also carry out trade within Dubai and outside the UAE.

Business Flexibility: DED licenses make Dubai’s operations flexible. You have a free choice of business location and can participate in government tenders, which can contribute to your business’s growth. You may also choose from the almost 2000 allowed business activities. 

100% Ownership: Most DED licenses provide for full foreign ownership of your company, which doesn’t require the use of a local partner in most cases.

Visa Sponsorship: The DED allows you to sponsor your employees’ visas, making it easier to hire international talent.

Types of DED or Trade Licences in Dubai

The four (4) primary types of Dubai or trade licenses of DED, which are suitable for particular DED business activities, are:

Commercial License: This is the most common licensing type, suitable for businesses involved in trading activities, such as import, export, wholesale, and retail. It facilitates the trading of goods and commodities in Dubai and the United Arab Emirates (UAE).

Professional License: This License is required for businesses and individuals offering professional services, including consultancy (financial, legal, management), IT services, educational services, medical services, beauty care services, and many others.

Industrial License: This License is mandatory for businesses that conduct industrial activities in Dubai, such as manufacturing, production, or assembly of goods.

Tourism License: Introduced by DTCM and DED, this License is compulsory for businesses operating in the tourism sector, including travel agencies, tour operators, and tourism service providers.

The DED offers additional specialized licenses for specific endeavours, including educational establishments, medical facilities, and restaurants.

Your business activity determines the selection of the appropriate DED License. For example, a consulting firm requires a professional license, while a company conducting industrial works needs an industrial license. Ensure you select the correct operating license to comply with the law in Dubai.

Who Can Apply for a DED License?

Any person or entitycan apply for a DED (Department of Economic Development) license in Dubai. This includes:

Entrepreneurs: Those individuals who aim to establish a business in Dubai, whether locals or foreigners.

Companies: Both local and foreign companies that want to operate in Dubai’s mainland and the UAE market.

Startups: New companies that want to formalize their operations and enter the Dubai market.

Professionals: People who provide consultancy, healthcare, and legal services.

Investors: Individuals or entities that invest in businesses in Dubai and need to acquire the proper permits and licenses for their operations

SMEs (Small and Medium-sized Enterprises): These businesses aim to establish branch offices in Dubai, serving the local or regional market.

Documents for the DED License in Dubai

The documents needed for a DED License in Dubai are slightly different based on the type of your business structure and activities. Here is the general list of the most frequently demanded documents:

• Trade Name
• Initial Approval
• All Partners’ (if applicable) Emirates ID.
• Passport and Visa Copies of all Partners (if applicable)
• Ejari contract. 
• Memorandum of Association (MoA)
• Approval from relevant Government Bodies (when your business requires specific permits)

Procedure for Getting a DED License in Dubai

A DED License in Dubai can be made easier to obtain when streamlined into a distinct process with the following steps:

1. Select Business Operations and Legal Framework: First, determine the individual business activities you’ll pursue. This will determine the most appropriate type of DED license (commercial, professional, industrial, or tourism). Next, decide on your legal form, such as sole proprietorship, limited liability company (LLC), or branch of a foreign company.
2. Reserve Your Trade Name: Choose an original and suitable trade name that meets DED naming regulations. You can make a reservation under your preferred name on the DED website.
3. Apply for Initial Approval: apply for the initial approval.
4. Secure a Physical Office Space: Rent a commercial property in Dubai and register your contract with Ejari, the rental tenancy regulatory system.
5. Finalize Legal Agreements (if applicable): If your chosen legal structure requires you to submit a Memorandum of Association (MoA) specifying ownership and governance, have it drafted by a legal practitioner.
6. Obtain Additional Approvals (if necessary): Depending on the type of business that you are running, you may require permits from specific government departments. Find any such prerequisites and get the relevant approvals before taking action.
7. Pay License Fees: After arranging all the documents, settle the fees related to the DED license type you choose and your business activity.
8. Collect Your DED License: Once you have completed the process and paid the fees, you will receive your official DED License, which allows you to conduct business in Dubai.

Prices of DED License in Dubai

The price one must pay in Dubai to acquire a DED license is not a fixed amount but varies based on several factors. These include the kind of business activity you are about to engage in, your company’s form, and your business’s location. Other costs incurred during the application process include the expenses of setting up a business and potential fees for obtaining approvals from various government departments.

Conclusion

A DED license in Dubai is essential in setting up a business in this Emirate. Under the guidance of the Department of Economy and Tourism, this process involves selecting the license type, obtaining the required approvals, registering, and fulfilling special requirements. The advantages of holding a DED license include full access to the local market, operational flexibility, and the opportunity for 100% foreign ownership. Moreover, adhering to the stipulated steps and ensuring that all necessary documents are ready can help simplify the application process, enabling businesses to capitalize on the numerous opportunities in Dubai.

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