Dubai is known for its impressive infrastructure and tremendously developing business structures. The great grand economy of Dubai attracts almost every investing businessman to try his luck there. The UAE government has allowed a wide range of business opportunities and trade options in Mainland Dubai. One major requirement to set up a business in Dubai is to register it with DED Dubai.
Business owners need to get specific business license approvals from the DED. That is why, before setting up a company in Dubai, you should know about the DED regulations and the business licenses required. The UAE government also provides tax benefits and investment perks to business owners and thus encourages more start-ups every year.
In this article, we will discuss the importance of the Department of Economic Development in business formation in Dubai. You will introduce yourself
What does DED do?
The Department of Economic Development (DED) is a government-entrusted unit that issues commercial and professional licenses to corporate individuals or teams for business start-ups in Mainland Dubai. This government body makes economic plans and strategies, gives required services to domestic and foreign firms, etc. Their dedication to economic growth in Dubai has made business start-ups way easier and more convenient in the mainland region.
Benefits of starting a DED-licensed company
The UAE government has reduced the traditional restrictions on businesses and thus UAE allows 100% foreign ownership to the ex-pats. This has encouraged people to opt for a DED license, also called the Mainland or Onshore license. The major benefits of starting a DED-approved business are:
1) An easy business setup:
The entire procedure of setting up a business in Dubai is very easy and convenient because of fewer restrictions and numerous benefits of DED. From approval processes and regulatory tasks to early timelines, the Department of Economic Development has made everything hassle-free for a business setup.
2) Different licenses:
After deciding about the office space, the Department of Economic Development offers numerous licenses that a businessman can apply for in Mainland Dubai. You would face almost no restrictions on commercial as well as professional licenses.
3) Easy visa allocation:
A DED license can allow you to have as many visas as you need for employees. Depending upon the size of your office, you can apply for employee visas accordingly. More prominent offices would get many employee visas easily.
4) Freedom to choose the office address:
A DED-registered business can have its office anywhere in Mainland Dubai. There is full freedom to choose where to work from. Moreover, the Department of Economic Development also encourages the efficient growth of a business. Thus the trader can also open up different branches at distant places for his business growth.
5) Large scope of adding new business activities
DED supports nearly 2100 business activities and is flexible in adding new business activities to the list to encourage more trades to start-ups in Dubai. If your business type is already enlisted, you can directly apply for approval certificates. But if not, DED is ready to add up new business activities to its list.
6) Reduced restrictions on nationality:
The UAE government has reduced nationality restrictions for setting up a business in Dubai to encourage more business activities in the mainland region. Unlike other jurisdictions, there are fewer limitations imposed on visa allocations and nationalities. Now, a large number of foreigners can become business owners in Dubai.
7) No minimum capital:
DED has reduced the investment restrictions imposed on businesses and their owners. The primary benefit lies in the fact that there is no minimum capital required for the start-up. You have complete freedom to choose the type of business structure and the investment you can afford at the beginning.
8) Affordable rental and lease plans for offices:
DED has made available a large number of office spaces, out of which you can choose a place that suits you the most. Depending on the space required and the type of business, affordable rental and lease plans are available for different businesses’ needs.
DED Steps To Start A Company in Dubai
DED has offered tremendous benefits for business owners in the Mainland region. The key motive of DED is to make the business start-up process very convenient and quick so that time-consuming administrative processes can be avoided. For this, it has described the following steps for business setup in Dubai.
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Choose the business type:
You can start- up from more than 2100 business activities in Mainland Dubai. Firstly, choose the type of business that you want to start.
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Fill out the legal form:
Every business start-up begins with selecting a suitable legal form. The number of owners, their nationality, the type of business, etc., need to be filled in the legal form.
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Select a trading name:
DED has issued specific guidelines for selecting trade names for the businesses. Make sure to follow those guidelines while choosing a trading name. After choosing, apply for the same through the registered service centers or online portals.
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Apply to get an initial approval certificate:
The initial approval certificate is just like a NOC from the Dubai government and DED. This states that they don’t have any objection to the start-up of this business.
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MOA and LSA approvals:
Depending upon the business structure, sometimes you require certificates like Memorandum of Association (MOA) and Local Service Agent (LSA). If needed, you should get these certificates approved.
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Select a business location:
DED gives complete freedom to choose your office address anywhere in the Mainland. You just need to sign a contract with the landowner. And then register that contract with the Real Estate Regulatory Agency for your start-up.
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Apply for license approvals:
The next step is to apply for the required business license. Every business type requires different licenses from different departments of the government.
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Submission of business licenses:
After successfully finishing all the steps, you must collect all the approved business licenses. Then submit them to the DED via online portals or at their service centers.
Having finished all the above steps, you can now start- up your business activities with a thumbs-up from the DED.
Various license options of the DED:
First, you need to register yourself with the DED for company formation in Dubai mainland. DED has issued different policies and procedures covering nearly 2100 business activities for issuing trade licenses. All these business activities fall under six major categories. For all these categories, you have to apply for trade licenses before heading on towards your start-up.
- Commercial license: issued for commercial trading activity. With a commercial license, ex-pats can now have 100% ownership of their business.
- Industrial license: industrial or manufacturing activities. The UAE government and the business owner also have 51% and 49% shares, respectively.
- Professional license: issued for providing services like consulting. However, a business license offers 100% ownership to the owner but restricts the appointment of a UAE national as a Local Service Agent.
- Occupational or craftsman’s license: issued to persons who use their craft talents or artwork as their profession. Carpenters, blacksmiths, Printing experts, etc., apply for this license.
- Tourism license: for owners of tourist activity-related businesses like hotels, resorts, and travel agencies.
- Agricultural license: Farmers who own their arable land can apply for this business license. This license allows them to grow crops and other livestock for various purposes.
Conclusion
The UAE government has created a separate entity called DED to govern its economic growth. Its main agenda is to facilitate new business start-ups in the Mainland region. Besides reducing the restrictions on business activities, DED provides a large number of benefits to its investors. After learning about the benefits and various licenses that DED provides, just plan to start- your own business in Dubai.
If you are planning to set up a business in Dubai, UAE, and want to understand the process of DED, you can get in touch with Business Link. The Complete solution for all your business setup needs.
