Do you want to share your expertise with the world without being restricted by the Dubai market? Thanks to the DED license, it is now possible. Those interested in taking the opportunities this emirate offers can obtain it from the Dubai Department of Economic Development.
In this article, you will learn how obtaining the DED license will allow you to work in Dubai without needing a local sponsor. In this way, you will only need a local representative agent who will own most of your company.
1. What is a DED license?
A DED license is necessary for any individual who wants to work as an agent in Dubai. These activities are created thanks to the Department of Economic Development.
This department is responsible for regulating and licensing businesses. Besides, it offers other services such as trade facilitations for those who are interested.
2. How to get this license?
To get a DED license in the UAE, applicants must have a valid residence visa or residency permit. Also, they need to be at least 18 years old. This process is not as complicated as it may seem.
However, to make this process even easier, it is important that you follow a few steps. First, you need to find the right business partner.
Researching a company and reading reviews is crucial before starting your commercial activities. Second, you must submit the required documents. Keep in mind that those documents can vary depending on the business activity you plan to create.
3. What activities are allowed with a DED license in the UAE?
Any business activity you perform in this country requires a DED license. The Ministry of Economic Development has a new system to simplify the process by splitting it into different categories. If you are looking to start a company in the UAE, make sure you select a category that aligns your activity. Here are some DED license activities:
3.1 Artisanship
A DED License for Artisanship is a new commercial license to help artisans start their businesses in the nation. It offers many benefits, such as the freedom of working from home.
In the same way, this license is an excellent opportunity for those who want to start their own business. This license offers the opportunity to get started in the creative industry. For most creators, starting out without this license can become a problem in the future.
3.2 Carpentry
This will category of DED licenses will help regulate and organize the carpentry sector in Dubai. Also, it will follow the Dubai Municipality’s strategy to manage and develop the sector. In order to do this, the local government is actively looking for more people willing to engage in this activity.
On the other hand, it is also important to know that carpentry in Dubai is growing steadily. This new license will ensure that carpentry services meet the highest standards. The Dubai Municipality is now developing a training program for future professionals in this sector.
3.3 Consultancy services
A DED License is necessary for companies that wish to provide consultancy services in the UAE. However, there are two important aspects to know.
The first one, is that the company must have a minimum of two partners, and one of them must be a UAE national. Second, the company must also have a physical office in the country. Additionally, all employees must hold a valid resident visa to work in the company.
The organization must also have a trade license once they have a DED in Dubai. This will allow business owners to do their activities without facing legal consequences from the government.
3.4 Beauty salons
The government will now issue a DED license for all beauty salons in the Emirates. This new regulation is necessary to give better protection to consumers, provide safe premises, and help ensure hygiene standards.
Those who have a DED in Dubai can open beauty salon licensing center to process applications for new licenses. This will be useful for people to create their companies.
3.5 Security services
The DED has three types of licenses for security providers; general, guarding, and cash handling. It also has a special committee dedicated to reviewing applications. Keep in mind that the DED license renewal must be done after one year in effect. Thus, be sure to always ask about the duration of your license.
3.6 Medical services
The DED Medical Services License aims to boost medical tourism in Dubai. In this way, the government intends to make it easier for medical professionals to set up their clinics and hospitals.
This is part of a strategy to make the city a leading destination for medical services in the region. Additionally, the DED is also working on a new electronic system that will allow patients to book appointments online.
3.7 Repair services
It is necessary for repairing any electrical or electronic equipment. Likewise, the holder of this license is allowed to repair all kinds of electrical and electronic equipment.
Those who apply for the DED in Dubai should have proper knowledge about repairing electrical and electronic equipment. To apply for this license, the applicant must be at least 18 years old.
3.8 Printing and publishing
The DED announced the launching of a new license for printing and publishing. With this license, businesses can publish books, magazines, and newspapers in both Arabic and English.
This are excellent news as it will offer UAE businesses a way to generate more content without worrying about additional licensing. Also, this decision is likely to promote creativity and innovation, which are essential in this industry.
4. How to apply for it in the Emirates?
To obtain a DED license in the UAE, you will need to meet specific requirements. Knowing each step of this procedure is useful to ensure the success of the process and follow all the local rules and regulations. However, there are other things you need to consider:
4.1 Choose between the Free Zone and Mainland
If you are an entrepreneur looking to run your company in the UAE, you first have to determine whether you want to operate on the Mainland or in a Free Zone. Each of these zones offers different benefits and regulations.
At the same time, you need to do proper research on the DED license cost in both areas. This is because there can be different fees that you must pay according to where you establish your company.
4.2 Decide the business type
On the other hand, you have to think about what kind of business you want to create. There are many different structures that you can adopt:
- Sole Proprietorship
- One Person Company
- Civil Company
- LLC
- Private Share Holding Company
- Public Share Holding Company
- Simple Limited Partnership
4.3 Prepare your documents for the application
As soon as you have chosen your structure, you should prepare the paperwork needed to apply for a Dubai DED license. Some of the documents you must provide are the following:
- Certificate of validity for the company
- Certificate of initial approval
- Memorandum of association
- Government approval.
5. What is the cost of a DED license?
It is essential to understand the DED license cost in Dubai to avoid any last-minute issues. Generally, prices can range from AED 15,000 to AED 50,000. However, this can change depending on what you want to sell. Some types of businesses might need special approval by the UAE government first.
The cost for this license also depends on factors like the amount of staff and relationships with local partners. However, if you want to do it from the comfort of your home, you can do your DED license renewal online by following the same steps.
6. How long does this process take?
In the first step of your process, the Ministry of Labor and Social Affairs will issue the first approval, which will take about a week.
Once you have obtained it, the second step is to receive the Ministry of Economy’s approval, which can take around two weeks.
Finally, you will receive the approval of the Ministry of Health and Prevention, which is likely to take about three weeks.
In the last step, you must wait for a few weeks for your license to be processed by the DED. Note that you can do the DED license renewal online after one year of the application, so you must be aware of the deadline date.
7. What happens if you do not have a DED license?
If you do not obtain a DED license in the UAE, you are going to face troubles once you try to set up your company in the territory. However, with these permits and the DED license verification, you can trade your goods in the UAE and do business in specific industries.
You will not have an ownership stake, but it is enough to trade your goods. You will also be limited in the number of employees you can have. Besides, this also affects the type of businesses you can create.
8. How to renew your DED?
The process for the DED license renewal is essentially the same if you are in the Mainland or Free Zone area. However, you need to go to a different government agency for a renewal.
A license renewal is applied to Dubai Mainland businesses. However, if you are established in a Free Zone, you must renew it with your Free Zone Authority and pay the corresponding fees.
8.1 What is the cost of the DED renewal?
The cost of your DED license renewal can vary based on different factors. For example, setup type and the size of your company. Nonetheless, you can expect to pay between AED 8,000 to AED 15,000.
8.2 Do you need the Ejari for a trade license renewal?
As a matter of fact, the Ejari is a mandatory part of the DED license renewal process. A Real Estate Regulatory Authority must attest to your tenancy contract. However, if you show up without the Ejari’s documentation, you cannot continue the process.
9. How can we help you with the obtention of your DED license?
The best way to know how the DED license process works is by reaching out to the professionals who can help you. Connect Middle East is a team of experts with more than 20 years in the UAE market. We are available to assist you through these legal processes and help you achieve success.
Would you like to contact us to know more about our services? If you have any questions, call us at our phone number +971 433 16 688 or write us an email at contact@c-uae.com. One of our representatives will be ready to guide you.
