How to Apply for a DED License in Dubai?

DED License in Dubai

Businesses cannot be established with just a snap of the fingers. You need a proper plan, a sufficient budget, and comprehensive guidance to move forward. However, to get legal recognition for your business in UAE, you would require a valid license. A DED License in Dubai is a fundamental requirement for anyone looking to start a business in the region.

However, the route to obtaining this license involves a certain process with a series of steps and tons of paperwork. Therefore, UAE Expansion assures you to carry through this process and help you get your Dubai trade license without any hassles. Now, let’s get into this article and learn a bit about business setup in Dubai and how to procure a license methodically.

DED trade license

The Department of Economic Development (DED) is the regulatory authority that facilitates registration and licensing formalities for businesses. It acts as a one-window service center for potential investors.

Objectives of DED:-

DED aims at creating the right infrastructure, technology, and regulatory framework for both local and foreign investors as well as small and medium enterprises, that encourage them to set up companies in Dubai. In addition, its goal is inspired by six strategic pillars –

  • Economic Growth
  • Economic competitiveness
  • Business community happiness
  • Economic foresight and planning
  • Advanced DED
  • Financial sustainability

Hence, individuals or firms looking to start their new business in UAE must acquire a DED trade license to operate legally in the approved jurisdiction. And to start with the procedure of company formation in Dubai, one must familiarize themselves with the policies and procedures set by the DED. UAE Expansion consultants are well-versed with these policies and thus can assist you in the procedure with their full expertise and commitment.

Benefits of having a DED Trade License in Dubai

DED License in Dubai comes with a lot of benefits, which include –

Expansion of local and international trade

A DED trade license enables manufacturers to produce or import goods, thereby allowing them to tap into the thriving Dubai market. Moreover, by exporting goods overseas, they get to explore international opportunities, participate in global trade and gain profits.

Improves credibility

Businesses that adhere to legal requirements and possess a valid trade license tend to earn the trust of customers, which eventually enhances business credibility in the market.

Tax incentives

The tax incentives in UAE attract investors. Besides, Dubai also imposes nominal taxes compared to other jurisdictions. As a result, business owners are able to save money on income, sales, and manufacturing taxes and further allocate them for operational purposes.

Minimal trade restrictions

Along with a business-friendly environment, Dubai facilitates lesser trade restrictions due to which registered companies with trade licenses are able to operate smoothly.

Streamlined process

Obtaining a DED trade license is faster compared to other licenses in UAE. if you have the right documentation in hand and proper knowledge of the guidelines, then you can complete the process quickly and efficiently.

Types of trade licenses issued by DED

The business activities approved by DED fall under three categories of license, namely –

  • Commercial license – It allows companies to involve in goods buying and selling activities. It may also cover activities like trading, importing, and exporting products, rental activities, brokerage activities, etc.
  • Professional license – This license focuses on individuals that are engaged in selling their services to other individuals or businesses. For example, auditing, healthcare services, consultancy services, digital marketing services, etc. Moreover, with a professional license in Dubai Mainland, you can sell your services to the government and even sign up for lucrative government contracts.
  • Industrial license – It allows businesses to manufacture products inside the country. It may also include importing and processing raw materials, packing and selling the finished products, exporting the finished products, etc. However, it mandates the requirement of physical office space.

The DED has also introduced an E trader license in Dubai that allows its holders to conduct as well as promote their business through online mediums. This license is mostly issued for home-based businesses in Dubai.

Procedure to apply for a DED License in Dubai

The DED basically issues licenses for Mainland companies. So, once you choose a Mainland location, the next thing to do is work towards getting a permit to conduct the intended activities. UAE Expansion professionals will walk you through this process and even carry out each step fairly as implemented by the authorities.

The steps to the DED trade license application include the following –

Select your activities

Determine the activity that you want to conduct in your Mainland company. DED approves up to 2000 business activities in its Dubai trade license activities list. You can get this list from the company formation specialists at UAE Expansion and also discuss with them your business idea and the choice of activities you intend to perform.

Finalize your company name

Next, select a company name that goes in line with the selected trade activities and most importantly with the UAE trade name guidelines. Once you reserve a name, get it registered with the relevant officials and receive a trade name certificate for further use.

Select the legal structure for your business

DED allows the below structures for company formation in Dubai Mainland region –

  • Sole Proprietorship
  • Partnership Company
  • Limited Liability Company
  • Private Share Holding Company
  • Public Share Holding Company
  • Branch
  • Representative Office
  • Civil Company

Your choice of business activity, number of shareholders and their nationality, and ownership preferences will influence your decision for legal structure. Consult with UAE Expansion experts to know more.

Get the initial approval from DED

The initial approval is basically legal consent from the authorities to go ahead with the business setup procedure. Thus, to get this approval, you would be required to furnish a few documents and details –

  • List of activities
  • Trade name registration certificate
  • Basic details such as an address, contact details, ID details, etc. of your business partners, manager, and Local Service Agent (if applicable)
  • Board resolution of the parent company (if planning to open a Branch)

The initial approval is vital as it will help the applicant in completing other formalities that are essential for the DED trade license application.

Rent out a commercial space

Find a space that is suitable for your commercial needs. Also, remember to get a tenancy contract including Ejari for the official procedure.

Complete the paperwork

Fill out the application form with the requested information and submit it to the DED with all the supportive documents.

  • Initial approval certificate
  • Trade name registration letter
  • Tenancy contract approved and attested by Dubai Municipality and RERA
  • Memorandum of Association
  • Local Service Agent Agreement (if applicable)
  • Mandatory approvals from the government bodies and ministries, as required

Once the above-listed steps are completed effectively, the DED will approve your application and issue you your trade license accordingly.

Dubai trade license cost

Every entrepreneur willing to start a new business in Dubai has their own set of requirements and budget. Hence, it might be impossible to quote an exact price for the license. Nevertheless, the initial approval charges, document attestation fees, office rent, and many other factors affect the DED license cost. Hence, it can be concluded that the overall cost of a DED License in Dubai would depend on the choices you make and the additional costs it incurs.

Looking for an easier way to get your DED License in Dubai?

Work with one of the best business setup advisors in UAE, UAE Expansion, to get your DED trade license quickly, effortlessly, and in the most cost-effective manner. Besides, you can also book a consultation session with the UAE Expansion advisor free of cost.

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