Setting up a business is indeed an exciting experience that comes with the thrill of exploring an entirely new aspect of life and the anticipation of achieving more significant milestones along the way. This joy also comes with the responsibility to have the essentials in place before setting out on this journey.
Starting a business on the Dubai mainland involves specific mandatory requirements, which are ultimately linked to rules and regulations set down by the Dubai Department of Economic Development (DED).
What is a DED License?
The DED License is a fundamental document for your company setup. It’s a legal permit issued by the Department of Economic Development (DED) that allows your business to operate and validates it as a legal entity.
There are two classifications of DED Licenses: professional and commercial.
DED-Licensed Company Setup
Setting up a company in Dubai requires acquiring the essential DED License, professional or commercial, depending on your business. In this article, you’ll find all the steps and required documents.
To simplify things even further, it is recommended to avail of the services of an expert business center in Dubai, which will provide dedicated assistance throughout the entire process until the business is up and running.
Select The Right DED License: Business Classification
The first step in obtaining the DED license is identifying the correct classification for your business. This permit falls under two classifications: professional and commercial. It is imperative to identify the appropriate license for the business as everything rests on this aspect.
Professional License
A professional license is available to companies offering a service – an intangible product as opposed to offering tangible ones that are physical goods. Marketing consultancies and fitness centers are just some examples of ventures that need professional licensure.
Commercial License
On the other hand, a commercial license is for companies that trade physical or tangible products. General trading companies dealing with products like foodstuff or retail are examples of companies that would fall in the latter category.
Deciding on the right license will help plan the way forward.
Required Documents for the Application Process
The next step in the company setup process is to get all the documents ready to begin the DED application process. Most of the paperwork and requirements are directly related to various processes that must be completed beforehand.:
Based on guidelines, the necessary documentation to get the DED License includes:
1. A valid Trade Name Certificate
2. A valid Initial Approval Certificate
3. Emirates ID, Passport, and VISA of all the Partners
4. A Tenancy Contract approved by Dubai Municipality and attested by RERA
5. The Signed Memorandum of Association (MOA)
This is applicable to LLCs, One-Person Companies, Private Shareholding Companies (Private Joint Stock Companies), Public Shareholding Companies, Simple Limited Partnerships, Partnership Companies, and Civil Companies.
6. A Local Service Agent Agreement
Applicable when a UAE national represents the business with regard to licensing and compliance.
7. Approvals from Government bodies
Applicable on certain business types such as NOCs.
However, requirements and documents change depending on the business type, and the detailed and up-to-date list is available on the dedicated page on the DED website.
How to Apply Online for the DED License
The DED website offers an online platform where businesses can directly apply for a Dubai trade License. Once you’ve got all the required documents, log in from the home page and follow the procedure to access DED online services.
How much does the DED License cost?
The cost of a DED licence is determined by your business activity and the region where you’re setting up your business. A DED professional License costs between AED 7,000 and AED 15,000, while a commercial DED License costs between AED 11,000 and AED 35,000 because it allows for additional business operations.
In addition to the above, the DED website offers an online platform where businesses can directly apply for a Dubai trade license without having to register a trading name or having to provide a legal tenancy contract.
Set Up The Office Address
The documentation stage also involves the important step of deciding on the >office space in Dubai. In most circumstances, it is mandatory to have the business linked to a physical address.
In such situations, options such as serviced office spaces or co-working spaces are smart choices to consider. All of them include a comprehensive price that covers interior design, infrastructure, fit-outs, and facilities that reduce the time and expenses to plan and set up an office.
The Virtual Office Option
Virtual offices are also another option desirable for entrepreneurs that goes further to offer access to a premium workspace as and when required while working remotely for the remainder of the time.
A virtual office presents the opportunity to register the company at a prestigious location along with facilities like phone and management services without the usual high costs associated with such a setup. The flexible workspace also provides state-of-the-art meeting facilities and the option to accommodate a growing team as and when the need arises.
The business services at myOffice help you begin your entrepreneurial journey in Dubai as quickly and efficiently as possible.
Our team of professionals is always ready to help you meet your business objectives. Additionally, our experts can handle all the procedures to ensure you get your DED License in a short time. Contact us today for a hassle-free experience in setting up your business.
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