DED License Options to Set Up a Business in Dubai

Before applying for a DED license in Dubai, as a business proprietor, you must first determine where you want to conduct your business—whether on the Mainland Dubai or in a Free Zone. If you’re setting up your firm in Mainland Dubai, you will need to register with the Dubai Department of Economic Development (DED). 

Understanding the policies and procedures set out by DED Dubai is essential. Currently, there are 2,100 business operations for which DED Dubai may issue a trade license. These activities fall into several categories, including manufacturing, commercial, technical (or occupational) crafts, agricultural, and tourism activities. Here are the various DED license options based on these categories:

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Industrial Licenses

Industrial licenses are issued to companies engaged in industrial operations or any type of production activity. These businesses convert natural materials or resources into finished goods for profit. Under industrial licenses, 51% of the company shares must be owned by a UAE national (local partner), while 49% can be owned by an expatriate owner.

Commercial Licenses

Commercial licenses are given to companies engaged in commercial trade operations or offering physical facilities, such as general trading, specialized trading, leasing, real estate, transportation, healthcare, and more. In Dubai, a commercial license for companies with foreign ownership is issued to a Limited Liability Company (LLC), the most common legal entity. 

The partners are liable only to the extent of their share capital when signing the Memorandum of Agreement (MOA) in the LLC undertaking, serving as a safety net. Under commercial licenses, 51% of the company’s shares are owned by a UAE national (local partner), and 49% by a foreign investor.

Professional Licenses

Professional licenses are obtained for non-physical services, such as consulting. These licenses are issued to individuals or consultancies offering professional services that rely on the knowledge, experience, mental and intellectual abilities, academic achievement, and scientific talents of the individuals conducting the business. 

This includes advisors, prosecutors, auditors, and more. Businesses with professional licenses can currently be 100% foreign-owned. However, a UAE national must be named a ‘Local Service Representative’ or a ‘Local Sponsor’.

Craftsmanship (or Occupational) Licenses

Craftsmanship licenses are issued to individuals who produce crafts and other artisanal works for profit independently. These artisans rely on their physical effort or the use of instruments and equipment. Practices under craftsmanship licenses include carpentry, blacksmithing, printing, and more.

Agricultural Licenses

Agricultural licenses are issued to the owners of arable land for growing crops, livestock farms, and fisheries.

Tourism Licenses

Tourism licenses are issued to owners of tourism-related facilities, such as tourism companies, hotels and resorts, restaurants, cruise ship rentals, tourist camps, and more. The DED issues three key categories of travel agency licenses: inbound tourism operators, outbound tourism operators, and travel agents.

Unicorn Global Solutions for a DED License

If you want to learn more about regulations, market structure, and post-company growth processes, our team at Unicorn Global Solutions can help. We offer consultancy and advisory services to prepare paperwork and guide you through the process, ensuring everything is done correctly.

Our professional business setup consultants can assist you in selecting the right DED license option for your business in Dubai. Contact us today to speak with one of our Business Setup Advisors and kickstart your business journey! Text us on WhatsApp or call us today.

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