The Department of Economic Development (DED) is the authorized government body for issuing all business licenses for enterprises or individuals who wish to establish their business in mainland Dubai outside the free trade zones. Companies that obtain business licenses from DED are usually local companies. DED acts as a window to all licensing service centres for all local companies that intend to start their business in Dubai and other UAE emirates.
For small and medium enterprises, availing of a local license in Dubai is the most preferred option, as it allows them to open an office in a place of their choice in the city. There are some business activities in which you will have no option but to start a locally licensed company. However, in Mainland Dubai, you cannot possess 100% ownership of the company, unlike free trade zones. Moreover, you will also need a local sponsor (UAE National) or local service agent based on the business activity you opt for when choosing to register your company for mainland Dubai.
DED Dubai Company Formation
If you are new in Dubai and not aware of the process of DED company formation, you can hire a professional for all the leg work and processing of papers. It helps businesses focus on their business activities, future plans, and strategies and also prepare for challenges that might come unexpectedly.
Professionals also take away the stress and the hassle of running from one place to another to process applications and ease government bodies’ payments. You will only have to choose which of the three licenses your business will fit closely and get your application processed:
- Industrial – issued for industrial activity or manufacturing
- Commercial – given to engage in trading of any sort
- Professional – given to individuals with skills in professional service, like designing, financial consultant, layers, and more
How do I apply for a DED license?
According to the Department of Economic Development in Dubai, anybody desirous of opening a business in Dubai or any UAE emirates has to choose a place to start their business, whether in Dubai mainland or available free zones as per their business need. Companies must know, each location might have specific rules and regulations and business conditions. Additionally, the business structure is another essential factor that companies need to choose while applying for a DED license. If your business is registered in Dubai or any UAE Emirates, below are some necessary documents that you will need to prepare:
- The Memorandum of Association of the company in Dubai
- The tenancy agreement approved by the Municipality in Dubai
- A valid Initial Approval Certificate
- Specific approvals issued by Government bodies in Dubai
If all the documents are submitted and approved, the DED license is issued. Business owners must clear several steps and formalities before the issuance of the DED license. It becomes very confusing and tiring for people who are new in Dubai or the business. Company formation specialists in Dubai become very helpful in such situations.
