Dubai Ded License Cost

How to Setup a Business in the Dubai DED and its Costs

The Department of Economic Development (DED) Dubai has fixed a set of rules and regulations that entrepreneurs need to familiarize themselves with before running a business. DED offers some services, which can be very useful for entrepreneurs to know about. Aside from being a government body, they try to facilitate starting a business in Dubai for investors and businessmen and strive to make Dubai a pivotal, global business hub. Sami Al Qamzi is the current Director-General of the DED. 

DED has provided a suitable infrastructure, technology, and legal framework for foreign and national entrepreneurs to encourage them to conduct business in Dubai. To this aim, they have six strategic pillars that cover most of the issues related to starting and running a business in Dubai:

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

 

Plus, there are four divisions under DED that support various sectors of Dubai’s economy:

  • Dubai Exports
  • Dubai FDI
  • Dubai SME
  • Dubai Economy

Currently, there are over 2,000 business activities that DED can issue licenses for, mainly classified as: industrial, commercial, professional, and tourism activities. These services on the DED’s website, categorically, are:

  • Instant Licence
  • Reserve Trade Name
  • Renew Trade Name
  • Renew license
  • Issue Initial Approval
  • Issue Branch Initial Approval
  • Print license
  • License Activities’ Terms And Conditions
  • Manage License Contact
  • Pay Inspection Fines
  • Update Mobile Number

 

Besides, they issue some contract-related licenses or offer some services related to this category:

  • Issue Legal Contract for License
  • Approve Legal Contract
  • Print Legal Contract

 

Applying for a DED license in Dubai

To apply for a DED license in Dubai, you need to take some steps:

  1. Decide on your business activities
  2. Choose an appropriate legal form for your business
  3. Register your chosen trade name
  4. Apply for an initial approval
  5. Drafting a Memorandum of Association if applicable
  6. Local service agent agreement drafting
  7. Choose an office location for your business
  8. Get additional government approvals
  9. Submit documents and pay the fees

 

Defining the company’s legal form:

There are sixteen legal forms defined by DED:

  1. Sole Proprietorship
  2. One Person Company (LLC)
  3. Civil Company
  4. Limited Liability Company
  5. Private Share Holding Company
  6. Public Share Holding Company
  7. Simple Limited Partnership
  8. Partnership Company
  9. Branch of a Foreign Company
  10. Representative Office
  11. Branch of a Dubai-based Company
  12. Branch of a UAE-based Company
  13. Branch of a GCC-based Company
  14. Branch of a Free zone Company
  15. Intelaq (Home-based business for UAE Nationals)
  16. SME Licence

 

Generally, the ownership options, type of business activities, number and nationality of owners are the most decisive factors determining a company’s legal form.

Registering a Trade Name:

The trade name should reflect the nature and business activity of your company. You can easily apply for a trading name through the Dubai DED business center or online.

The trade name should not contain any words related to religion, governing authority, or any external bodies’ logos. It should not also have previously been registered. Lastly, it should not contain anything that pertains to violation of public morals or public order of the country.

Providing the required documents:

The list of the required documents for obtaining a DED license are as follows:

  1. Valid trade name certificate
  2. Valid Initial Approval Certificate
  3. Tenancy contract approved by Dubai Municipality and attested by RERA (Ejari)
  4. Memorandum of Association (Applicable for LLCs, One Person Company, Private Shareholding Company (Private Joint Stock Co), Public Shareholding Company, Simple Limited Partnership, Partnership Company and Civil Company)
  5. Local Service Agent Agreement (Applicable when a UAE national represents your business regarding licensing and compliance.)
  6. Approvals from Government bodies (Applicable to certain business types)

 

Among the above, the Trade Name Certificate and Initial Approval Certificate can be directly requested from the e-services platform available on the DED website. On the other hand, DED Legal Affairs or Notary Public must draft the Memorandum of Association (MoA). It is also noteworthy that the tenancy contract has to be registered with Ejari for attestation. The relevant government bodies or offices can issue the other necessary documents. 

 

Instant License Option 

An instant license is a new option provided by DED, which does not urge entrepreneurs to register a trading name or issue a legal contract or Ejari. Thus, businessmen can now directly apply for a trade license in Dubai through this option within a few minutes. 

License Costs 

Many factors affect the license costs, such as business activities, but typically, it ranges between AED 8,000-50,000. There are many costs included in this amount, for example, the initial trade license certificate issuance, which can cost businessmen anywhere between AED 620-2,000, depending on the characteristics of the trade name.

You can always go to one of Dubai DED’s service centers to apply for a Dubai Mainland trade license. Note that, the whole process can be done by yourself without the assistance of any business setup agents. The process is pretty much very simple. You can apply for a trade license online as well.

Dubai DED Service Centers

Dubai DED E-Services

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