Department of Economic Development DED in Dubai – Everything you Need to Know
Dubai is an Emirate with high chances of success for those who obtain a DED license for investors or professionals. Furthermore, the processes consist of simple steps, although you must comply with some important formalities. However, by getting this document, you can be almost guaranteed the benefits of doing business in the UAE.
In this article, we will show you what this license consists of and what benefits you get from it. Likewise, you will learn the process you must follow to obtain it and thus start your business in the country.
What is a DED License in Dubai, UAE?
A DED license allows a company or individual to carry out the commercial activities mentioned therein. In this case, the Department of Economic Development (DED) is the government entity in charge of issuing said license. Therefore, if you are planning to set up a business in the UAE, you must obtain a professional or commercial license as the case may be.
Obtaining one of these licenses involves submitting certain documentation and choosing the business structure. However, the obtaining process can be arduous if you do not have the necessary knowledge about the rules and regulations.
Goals and Objectives of Dubai Economic Development (DED)
The Department of Economic Development is the body responsible for regulating and supervising economic activities in Dubai. However, this government entity is not exclusive to Dubai, as each emirate has its own DED. Therefore, in each of the Emirates that make up the nation, you will find this entity where you must apply for a license.
In addition, the Department of this entity has specific divisions to achieve its objectives in the Emirate of Dubai. Specifically, the Department of Economic Development has 4 different divisions, which are the following:
- · Dubai Export. This entity began operations in 2007 and has the purpose of facilitating trade from Dubai. In this case, it has support services for commercial entities and other organizations so that they can achieve expansion to foreign markets.
- · Dubai Investment Development Agency. This division is responsible for promoting and providing support to foreign direct investments (FDI) that collaborate with the local economy.
- · Small and Medium Enterprise Development or Dubai SME. It is an agency that has been helping small and medium-sized businesses, as well as emerging ones, since 2002.
- · Dubai Economy. Also known as the Dubai Competitiveness Office, it is in charge of developing competitive strategies. In addition, the entity ensures the coordination of business work by both local and international businesses.
In this case, all DED policies, strategies, and plans seek to achieve various objectives for the economic improvement of the Emirate. Next, we will show you what the specific objectives of the Department of Economic Development are:
Economy growth
Its main objective is to achieve the economic growth of the Emirate by supporting various commercial entities. That is, by supporting Small and Medium Enterprises (SMEs), supporting FDI, promoting and developing exports, and more. Additionally, the DED proposes that development in this sense must be based on knowledge for sustained growth.
Advance DED
To maintain a high-quality standard, one of its objectives is the advancement of the same department in various areas. For example, it has made progress in issuing a DED license Dubai more easily through technology. In this way, it seeks its advancement to increasingly provide better support to the rich economy of the Emirate.
Economy competitiveness
One of the outstanding aspects of this organization is that it generates a favorable environment for business. In this way, it has managed to create a competitive environment, which has attracted foreign and local investment.
Finance sustainability
As the supervisory body of the economy, the DED also seeks to achieve a financially sustainable environment for various companies. To do this, it implements initiatives in the economic area and better policies to achieve this sustainability.
Economic foresight and planning
This department also creates programs, strategies, plans, and projects to support economic innovation through appropriate practices. In addition, it supports your success in this goal through Human Resources, cutting-edge technology, and international experience.
Business community happiness
The Department of Economic Development also seeks to create a creative and relaxed business environment. In this case, it offers simpler processes (such as the DED license), regulation of activities, as well as advancement in policies and regulations.
Services offered by the Development Department _ Economic
Apart from the aspects that the DED is responsible for, this entity also offers specialized services for commercial actors. For example, it issues, modifies, and manages commercial licenses in various areas, among other services. The DED license activities list currently covers just over 2,100.
Commercial activities cover 4 different categories, which are industrial, commercial, professional, and tourism. Additionally, on the DED web portal, you can find a wide variety of electronic services in 5 categories. Next, we will show you each of these categories and the services included in each of them:
DED License Services
- · Instant license
- · Terms and conditions of licensing activities
- · Trade name reservation
- · Renew the business name
- · Initial approval issuance
- · approval of the issuance branch
- · Printing license
- · Manage contact license
- · DED License Renewal
- · Payment of inspection fines
- · Mobile phone number update
- · Issuance of legal contract for license
- · Approval and printing of legal contract
Reports
- · Partner licenses
Consultation section
- · Transaction or payment status
- · Search commercial activities
- · license information
- · Search business names
- · Search sales and promotions
Public electronic forms
- · Business Permit Form
- · Registration and License Application Form
How to Apply for a DED License in UAE?
To apply for a DED license, you will need to systematically complete a series of steps. Next, you will be able to learn how to carry out this process in a simple way:
Stage 1. Establish the type of legal entity
You can establish your business through licensing and with 100% foreign ownership with a professional license in Dubai. To do this, you must send the DED a list of the commercial activities you wish to carry out. Additionally, if there are issues with any of the activities on the list, the department will contact you.
Stage 2. Choose the commercial name of your business
One of the essential requirements for establishing your business is creating a name for it. However, you must follow the guidelines established by the authorities for this purpose, as there are very specific rules. In this case, you must not use derogatory or offensive names for groups or religions, among other rules.
Stage 3. Seek assistance from a local service agent
Local Service Agents, or LSAs, can facilitate the process of obtaining a DED license through their experience. This way, without legal involvement in your company, they can assist you with documentation, processes, or translation work.
Stage 4. License application
Then, you will need to send all the documentation, which we will show you later, including certain certificates. Additionally, the DED will contact you if you have any problems or discrepancies with your documents.
Stage 5. Opening a bank account
You must open a corporate account so that you can transact your business in the UAE. However, you have a large number of banking agencies to choose from, so you must choose the most appropriate one. To do this, analyze the business model you want and the volume of transactions you are likely to make.
DED License Application Online
After you have all the necessary documents for the license application, you can complete the process online. To carry out the process, you just have to follow the steps listed below:
1. Start by visiting the official website of the Department of Economic Development and go to the OUR SERVICES section.
2. You will then need to log in with a UAE Pass, with a Dubai ID, or as a guest. However, to request the license you must use one of the first 2 options.
3. Finally, you will be able to access the various DED services once you have completed the login. In this case, you will find at the top of the services drop-down menu, the Instant License option.
In addition to this process, you can do the DED license verification if you are processing it.
Legal Entities for DED Instant License
Once you have opted into any of the DED license activities, you will be able to choose the legal entity for an instant license. However, there are only 4 possible options for this type of license, which we detail below:
· Limited Liability Company or LLC. To use this type of legal entity, you must have at least 2 shareholders, with at least 1 Emirati national. Furthermore, 51% ownership of the company must belong to the UAE citizen. Furthermore, it cannot offer shares to the public.
· LLC sole proprietor. In this case, only UAE citizens have the right to establish this type of LLC.
· Sole proprietorship. This type of legal entity must also be owned by a UAE or GCC national for a commercial or industrial license. However, non-nationals can establish this entity if they have a professional license. However, you will necessarily need a Local Service Agent (LSA) and provide evidence of qualification for the selected activity.
· Civil society. In this case, it consists of a commercial company of professionals such as lawyers, doctors, and engineers. However, as in the previous case, foreigners require an LSA.
How to renew DED license online
The DED license renewal online is very simple, thanks to the facilities established by the Department. To complete the process, you must follow the steps that we will show you next:
1. To get started, log in to the DED website.
2. Then, you will need to select ELECTRONIC SERVICES.
3. Next, you will need to select RENEW LICENSE.
4. Then you must enter your license number.
5. Lastly, click RENEW and pay the DED license renewal fees.
Documents to renew DED license
To complete the business license renewal process, you will need to have the following documents:
- · License you want to renew
- · Current Ejari
- · Leasing contract
- · Signed and Attested MOA
- · RTA approval
Required Documents to Get a DED License in UAE
To obtain a DED license, you will need to submit a series of documents, including those establishing the company. Next, we will show you what documents you need for this purpose:
- · Original initial approval certificate
- · Original business name certificate
- · The Emirates ID of each partner
- · Copy of the passport and visa of each partner
- · The lease agreement witnessed by RERA Dubai and approved by the municipality
- · Local Service Agent Agreement
- · Approval from government agencies (if applicable)
- · Valid Memorandum of Association (MOA)
Benefits of the DED License in Dubai
Through a business license issued by the Department of Economic Development, companies will obtain multiple benefits. Therefore, investors, entrepreneurs, and professionals will be able to enjoy the following benefits:
· 100% ownership. In some cases, you can get 100% ownership of your company, especially in Free Zones.
· Access to a dynamic market. Of course, with a DED license Dubai, you will be able to access the benefits of the local market. This gives it access to a large market, in which the expansion options are also high.
· Multiple business opportunities. The DED has a wide list of activities that it can carry out with complete freedom after approval. Additionally, you can pursue other activities if you obtain approvals not stated in your license.
How much does the DED license cost?
The DED license cost varies depending on the type of commercial activity you wish to carry out and can be between AED 15,000 and AED 50,000. We offer a list of the possible fees that you will have to pay, although you should consider that the costs may vary:
- · License registration AED 600
- · Knowledge fee AED 10
- · Innovation Fee AED 10
- · General business activity AED 15,000
- · Investment activity AED 15,000
- · Real estate activity fees between AED 5000 and AED 25000
- · Building Contracting Activities AED 10000
- · Dubai Chamber Fee
- · Trade Name Ads AED 350
- · AED 50 Service Request Form
- · Foreign trade name fees between AED 1000 and AED 3000
- · Business Center Fees AED 25000
- · License Intelaq AED 1,070
Likewise, you will need to pay certain DED license cancellation fees if you must close your business.
Final Thoughts
The DED license is a document that every business must have in Dubai to be able to carry out the economic activities included in it. Therefore, you need to go through the process we have mentioned to obtain the permit that will allow you to do business in the UAE. However, if you wish to obtain legal information on this or other topics, do not hesitate to contact us.
