28 Sep Steps for Incorporating DED License in Dubai
The Department of Economic Development is the backbone of commercial, professional, and Tourism businesses in Dubai. The DED professional license in Dubai is a one-stop solution for business aspirants looking to offer their services in the UAE. You can offer financial consultancy, legal advisory, healthcare services, or open a beauty salon, printing firm, etc.
The process to secure a professional license from the DED is straightforward if you have apt knowledge about the procedure. However, you don’t have to worry about any of it when you get in touch with the legal advisors at Shuraa Business Setup. We handle all the legalities and take care of the paperwork so you can focus on other growth-related activities.
What is a DED License?
The DED license is your legal permit to carry out all the business activities mentioned in the license. The license is issued directly by the Department of Economic Development post successful evaluation of your application.
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.
How to Secure a DED Professional License in the UAE?
Follow the steps mentioned below to get a professional license from the DED and kickstart your business activities:
1. Determine the type of legal entity
A professional license empowers you to set up your service agency or sole proprietorship in Dubai with 100% foreign ownership. All you need to do is list down all the activities you wish to carry out and submit the list to the DED. They’ll get back to you in case there’s an issue with your activity approval list.
2. 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.
3. Hire a Local Service Agent
A local service agent (LSA) helps you secure the DED license in Dubai without having equity in your company. They provide adequate assistance with documentation, licensing, and translation work but don’t have any legal ownership in your business. You can partner with Shuraa Business Setup, and we’ll become your business setup agent at a nominal cost.
4. Apply for a 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.
5. 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.
What is the Cost of a DED License?
The cost of the DED license depends on your business activities and the region of company formation. A DED professional license in Dubai costs around AED 7,000 to AED 15,000. This includes the fees paid for the DED license, trade name, administrative services, and many more.
The cost of a commercial DED license in Dubai is more since you need approval for more business activities. Moreover, the number of visa applications also differs in these licenses. Therefore, you can expect anything between AED 11,000 to AED 35,000 for DED Dubai company formation. The best part is that you can enjoy complete business ownership with both of these licenses.
How to Renew 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.
Benefits of DED License in Dubai
Dubai’s lucrative marketplace and advanced infrastructure offer multifold business benefits. Listed below are a few of them:
- Access to the Local Market: the best part about having a DED Dubai company formation is the access to Dubai’s local market. You can trade freely within Dubai and across the UAE when you have the DED license.
- 100% Ownership: the best part about launching your business in Dubai is 100% foreign ownership. Be it in the mainland or any of the free zones – all you need is the assistance of an LSA. He’ll help you procure the business license without any legal participation in your venture.
- Diverse Business Opportunities: the DED maintains a list of more than 2,000 permissible business activities that you can carry out in Dubai. You’re free to choose the ones you wish to carry out in the UAE. Moreover, you can also obtain external approvals for activities not mentioned in your license.
What Paperwork Goes Into Obtaining a DED License in Dubai?
Here’s a curated list of all the documents and approvals you need to get a DED professional 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 color, etc.)
- Initial approval receipt and documents submitted previously
- External approval certificates (if any)
- Emirates ID of your local service agent (LSA)
- Consent from the Municipality and the Road and Transport Authority (if applicable)
Time to Apply for your DED License!
A DED license empowers you to establish, sustain, and expand your business venture in Dubai. The best part is that you’re always in direct contact with the department that removes any scope of miscommunication. All you need to do now is connect with the business consultants at Shuraa to launch your venture in the Emirates. We provide cost-effective business setup services to help you form your dream company in Dubai.