How to get a DED License in Dubai? 

You’ve finally made it to the heartland of the UAE, and now you’re all set to get your business off the ground. So, what’s next? The next step to your business journey is to obtain a trade license. For businesses specifically looking to setup in mainland Dubai, this process involves approaching the Department of Economic Development (DED). Getting familiar with the DED and the process of obtaining a license is your golden ticket to tap into the UAE’s booming economy.   

In 2024 alone the government issued over 16,574 new business licenses. While the government has simplified the process of obtaining a license, many business owners still find the process challenging. To be fair, understanding the license types, required documentation, associated costs and other requirements can all seem overwhelming. 

This comprehensive guide addresses these exact pain points, providing you with clear, actionable insights on securing your DED license in Dubai and transforming your business vision into reality. 

What is a DED License in Dubai? 

A DED license in Dubai, issued by the Department of economic Development, is the official approval needed for businesses to operate legally within the emirate. It acts as a legal document specifying the business activities you are authorized to perform.  

This license type is essential for companies aiming to establish operations in Dubai’s mainland and participate in commercial, professional, industrial, or tourism-related activities while gaining access to the UAE market. 

Note: DED licenses require annual renewal to maintain legal compliance and ensure uninterrupted business operations.  

Types of DED or Trade Licenses in Dubai 

There are five main types of DED or trade licenses in Dubai, each suitable for specific DED business activities: 

Commercial License	For trading businesses like retail and import/export. Ideal for shops and distributors.
Professional License	For service providers like consultants and doctors. Perfect for individuals offering expertise.
Industrial License	Pertains to manufacturing and industrial processes involved in producing goods, such as factories and assembly lines.
Tourism License	Designed for travel agencies, tour operators, and hospitality businesses, this targets Dubai’s tourism industry.
Instant License	Allows quick online setup for pre-approved activities by skipping traditional steps, making it perfect for startups

The DED also offers additional specialized licenses for specific activities, such as for educational institutions, healthcare facilities, and restaurants. 

Note: Choosing the correct DED license in Dubai depends on your business activity. For example, a consulting firm needs a professional license, whereas a manufacturing company requires an industrial license. Make sure to choose the correct license to operate legally in Dubai. 

Who can apply for a DED License? 

Any individual or entity meeting the requirements can apply for a DED license in Dubai. This includes: 

• Entrepreneurs: Individuals aiming to start a business in Dubai, whether they are locals or foreigners. 

• Companies: Both local and international corporations seeking mainland operations. 

• Startups: New businesses that are just starting and want to formalize their operations and break into the Dubai market. 

• Professionals: Individuals providing professional services like consultancy, healthcare, legal assistance, and similar fields. 

• Investors: Individuals or entities investing in Dubai businesses who need to secure the required permits and licenses for their operations. 

• Small and Medium-sized Enterprises (SMEs): Small and medium-sized businesses aim to establish a presence in Dubai to serve local and regional markets. 

Benefits of DED License in Dubai 

A DED license in Dubai offers several advantages for businesses looking to establish themselves in the Emirate: 

• Market Access: A DED license provides complete access to Dubai and UAE markets, enabling you to reach customers throughout the region and participate in local trading activities. 

• Operational Flexibility: You can choose your business location freely within Dubai and participate in government tenders. Access to nearly 2,000 permitted business activities gives you extensive operational scope. 

• Simplified Setup: The licensing process is streamlined with potentially lower initial costs compared to Free Zone alternatives. 

• 100% Foreign Ownership: Foreign investors can own 100% of their business without requiring a local partner. You can appoint a Local Service Agent (LSA) for administrative support without giving up ownership stakes. 

• Visa Sponsorship: DED license in Dubai enables you to sponsor visas for your employees, facilitating the recruitment of international talent. 

How to Apply for a DED License in Dubai, UAE? 

Obtaining a DED license in Dubai involves a simple process outlined by these steps: 

1. Select your business activity and legal structure 

Start by identifying the specific business activities you intend to carry out, as this will determine the appropriate DED license type, whether it is commercial, professional, industrial, or tourism.  

Next, choose your legal structure, such as a sole proprietorship, a limited liability company (LLC), or a branch of a foreign company. 

2. Reserve your trade name 

Choose a unique and appropriate trade name that complies with DED naming regulations. You can reserve your preferred name online through the DED e-service portal. 

3. Apply for initial approval 

Submit your initial online application via the DED portal or any authorized service centre. It should include your business activity, legal structure, and proposed trade name. After approval, you’ll obtain an Initial Approval Certificate. 

4. Secure a physical office space 

Lease a commercial office in Dubai and register the tenancy contract through Ejari (the official rental agreement registration system). An attested Ejari certificate is mandatory for the license application. 

5. Collect the necessary documents 

Collect all necessary documents, including Trade Name Certificate, Initial Approval Certificate, tenancy contract, passport copies, and documents specific to your business structure. 

6. Complete the legal agreements, if necessary 

If your chosen legal structure requires a Memorandum of Association (MoA) or a Local Service Agent (LSA) Agreement, ensure these documents are legally drafted and notarized. 

Note: Some business activities may also require additional approvals from government departments (e.g., Dubai Municipality, RTA, or health authorities). 

7. Remit license fees 

After ensuring all documents are complete, pay the license fees for your selected DED license type and business activity. 

8. Collect your DED license 

After completing all formalities and payments, the DED will issue your business license, officially authorizing you to operate in Dubai. 

Document Required for UAE DED License in Dubai 

The documents needed for a DED license in Dubai may vary slightly depending on your business type and activities. However, here is a common list of the most frequently required documents: 

• Valid Trade Name Certificate 

• Original Initial Approval Certificate 

• Emirates IDs of all Partners (if applicable) 

• Passport and Visa copies of all Partners (if applicable) 

• Tenancy Contract attested by RERA Dubai and approved by Dubai Municipality 

• Completed DED License Application Form 

• Memorandum of Association (MoA) for LLCs and One Person Companies 

• Local Service Agent Agreement if you appoint a UAE national representative 

• Approvals from relevant Government Bodies (if your business requires specific permits) 

Cost of DED License in Dubai 

The cost of a DED license varies based on the business activity. A DED license in Dubai usually costs between AED 15,000 to AED 50,000, inclusive of all additional expenses.  

The cost of a DED license in Dubai includes various components. These are: 

• Licence registration fee: AED 600 

• General trading activity fees: AED 15,000 

• Investment activity fees: AED 15,000 

• Real estate activities fees: AED 5000 to AED 25,000 

• Building contracting activities fees: AED 10,000 

• DED trade Licence: AED 1,070 + AED 300 Dubai Chamber fees 

• Trade name advertisements: AED 350 

• Service request form: AED 50 

• Foreign trade name fees: AED 1000 to AED 3000 

• Business centre fees: AED 25,000 

Note: Fees may change. Confirm current rates with the relevant authorities for updates. 

You can contact Stratrich Consulting experts, and we’ll make sure you don’t overspend at any point during the process of obtaining a DED license in the UAE. 

Conclusion 

Obtaining a DED license in Dubai is a crucial step for those looking to establish a business locally. It grants access to numerous opportunities, such as operating within Dubai’s core areas, securing government contracts, and benefiting from the city’s tax incentives. 

By following the outlined steps and preparing all necessary documents for a DED license in Dubai, you can ensure a smooth application process and position your business to take advantage of abundant opportunities. 

At Stratrich, we simplify the DED licensing process by handling all paperwork, approvals, and legal formalities. We also provide tailored solutions, including office space and sponsorship assistance, to ensure your business launches seamlessly. 

Ready to start your Dubai business journey? Get your DED license in Dubai and begin operations in Dubai Mainland with Stratrich Consulting.