Dubai is one of the world’s most attractive business hubs, offering entrepreneurs and investors unmatched opportunities. To operate legally on the mainland, companies must obtain a DED Licence in Dubai issued by the Department of Economic Development (DED). This licence allows businesses to trade freely across the UAE, bid for government projects, and expand without restrictions. With recent reforms granting 100% foreign ownership in many sectors, the DED licence has become the most sought-after option for startups, SMEs, and international corporations planning to establish a presence in Dubai.
What is the DED License in Dubai?
A DED license in Dubai is a legal document that permits a business to operate within the Dubai mainland. It ensures companies comply with local laws and provides official recognition by government authorities. Without it, businesses cannot carry out commercial, industrial, or professional activities in Dubai.
Role of the Department of Economic Development
The Department of Economic Development (DED) manages business licensing, registration, and regulation in Dubai. Its goal is to streamline company formation, encourage foreign investment, and create a transparent business environment. Obtaining a DED license demonstrates compliance and enhances a company’s credibility.
Benefits of DED License in Dubai
A DED license in Dubai allows entrepreneurs to access the entire UAE mainland market, bid for government projects, and operate without trade restrictions. It enhances credibility, supports multiple business activities, and now permits 100% foreign ownership in most sectors, making it one of the most powerful licenses available.
Access to Mainland Market
With a DED trade license, companies can operate freely across the UAE mainland without restrictions. This allows them to serve government contracts and private clients directly, unlike free zone businesses which face limitations.
100% Foreign Ownership
Recent reforms permit 100% foreign ownership in many sectors, making Dubai highly attractive to international entrepreneurs. Investors can now maintain full control of their business while benefiting from a favourable tax regime.
Wide Range of Business Activities
The DED license in Dubai supports thousands of activities, from trading and manufacturing to consultancy and technology services. Entrepreneurs can diversify their operations without needing multiple licences.
Types of DED or Trade Licenses in Dubai
The DED license covers four main categories: commercial, professional, industrial, and tourism. Each license supports specific activities, from trading and consultancy to manufacturing and hospitality. Selecting the right license type ensures compliance with regulations while providing flexibility to diversify operations across multiple industries in the mainland market.
Commercial License
A commercial license is issued for companies engaged in trading goods or services. It’s the most common license, suitable for retailers, wholesalers, logistics firms, and general trading companies.
Professional License
The professional license is designed for individuals or firms offering services based on expertise, such as consultancy, healthcare, or IT services. It allows skilled professionals to establish businesses with fewer restrictions.
Industrial License
An industrial license in Dubai is required for businesses involved in manufacturing, production, or industrial activities. This includes factories, food processing, and equipment assembly companies.
Tourism License
For businesses in travel, tours, and hospitality, a tourism license is mandatory. It covers tour operators, travel agencies, and hotel businesses catering to Dubai’s booming tourism industry.
Who Can Apply for a DED License?
A DED license can be obtained by foreign investors, UAE nationals, or multinational corporations expanding into Dubai. Entrepreneurs across industries—consultancy, trading, healthcare, or technology—can apply. Recent reforms granting 100% foreign ownership in many activities have further encouraged global investors to register their companies under the DED system.
Foreign Investors
International entrepreneurs can apply for a DED license in Dubai if their chosen business activity is permitted under mainland regulations. They benefit from ownership reforms and a supportive ecosystem.
Local Entrepreneurs
UAE nationals often apply for DED licenses to start commercial or professional ventures. Many partner with foreign investors, combining local knowledge with international expertise.
Corporates and Branches
Existing companies can set up a branch office under the DED to expand operations into Dubai. This allows them to legally conduct business activities and target UAE customers.
Documents Required for DED License in Dubai
Applying for a DED license requires essential documents such as passport copies of shareholders, visa details, and Emirates IDs. Additional paperwork includes trade name reservation, initial DED approval, tenancy contract (Ejari), and a notarised Memorandum of Association. Industry-specific activities may also need external approvals from relevant authorities.
Mandatory Documents
Applicants must submit:
- Passport copies of shareholders
- Passport-size photographs
- Visa copies (if applicable)
- Emirates ID (for residents)
Business-Specific Papers
Depending on the activity, companies may need:
- Trade name reservation certificate
- Memorandum of Association (MoA)
- Initial approval from DED
- Ejari tenancy contract for office premises
Approvals from Authorities
Certain industries, such as healthcare or finance, may require approvals from specialised government bodies in addition to the DED.
Steps to Obtain a DED License in Dubai
The process to secure a DED license includes selecting the right activity, reserving a trade name, and getting initial approval. Investors must prepare documents, draft a Memorandum of Association, secure office space with Ejari, and pay licensing fees. The final license is issued after all approvals.
Step 1: Choose Business Activity
Select from over 2,000 activities listed by the DED to ensure your business falls within legal categories.
Step 2: Reserve Trade Name
Register your business name through the DED’s portal. The name should reflect your activity and comply with naming regulations.
Step 3: Get Initial Approval
Submit documents for DED initial approval, confirming your business activity and eligibility.
Step 4: Draft and Sign MoA
Draft a Memorandum of Association with details of shareholders, capital, and scope of operations. This document must be notarised.
Step 5: Secure Office Space
Provide a tenancy contract registered through Ejari, as a physical office is mandatory for a DED license.
Step 6: Submit Final Documents and Pay Fees
Complete the application by submitting all paperwork, receiving final approval, and paying the required license fee.
Cost for DED License in Dubai
The cost of a DED license ranges from AED 10,000 to AED 25,000 depending on activity, number of visas, and office rental. Additional fees may apply for external approvals and annual renewals. Investors should budget for setup and ongoing expenses to ensure smooth business operations.
Average Cost Range
The cost of a DED license in Dubai typically ranges between AED 10,000 to AED 25,000, depending on the activity, number of visas, and location.
Factors Influencing Cost
- Type of license (commercial, professional, industrial, or tourism)
- Number of business activities under the license
- Approvals from external authorities
- Office space rental fees
Renewal Costs
Annual renewal fees are also required, with costs starting from AED 8,000 onwards. Keeping licenses updated ensures compliance and prevents penalties.
Conclusion
A DED license in Dubai is the gateway to operating a successful business in the UAE mainland. With benefits like full market access, foreign ownership reforms, and a wide choice of activities, it provides entrepreneurs with growth opportunities. By preparing documents carefully and following the steps, investors can establish their company smoothly.
FAQs
How much does a DED license cost in Dubai?
It usually costs between AED 10,000 and AED 25,000 depending on business activity, approvals, and office space.
What is a DED permit?
It is a legal authorisation from the Department of Economic Development allowing businesses to operate in the Dubai mainland.
How much money do I need to start a small business in Dubai?
You may need as little as AED 15,000 to AED 20,000 to start a small business, depending on license type and office rent.
Which trade license is best in Dubai?
The best trade license depends on your activity. Commercial licenses are most popular, but professional licenses suit service providers, while industrial licenses benefit manufacturers.
How long does it take to get a trade license in Dubai?
On average, it takes 5 to 10 working days, provided documents and approvals are in order.
Which license is best in the UAE?
The best license depends on business goals. For full mainland access, a DED license is ideal, while free zone licenses are suitable for international trade with fewer costs.
