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For decades, Dubai has been attracting entrepreneurs and investors from all over the world to be a part of its vibrant economy. However, to start a business in this city, particularly in the Mainland region, they need to secure a license from the Department of Economic Development (DED), which offers diverse business licenses for specific business activities. To choose a suitable license and ensure a smooth setup process, the business owners need to familiarize themselves with the DED license activities list in Dubai.
The DED activity list Dubai covers various sectors, including trading, manufacturing, and professional services. Hence, to make an apt selection, it is crucial to understand the license framework. In this article, we will walk you through the DED Dubai license activities list to help you understand the available choices and some essential tips to choose the right license for your business.
The Department of Economic Development, the governmental authority that regulates and promotes economic activity, issues an official permit to businesses, known as the DED business license, that allows them to operate legally in the Mainland. Securing this license ensures that the business meets the regulatory requirements of the authority and complies with the legal and commercial regulations of the emirate.
The DED categorise business licenses into different types, based on the specific activities undertaken by the business.
Different licenses in Dubai cater to specific business activities. The common ones are as follows:
The Department of Economic Development (DED) plays a crucial role in accelerating the economic growth of Dubai. They regulate and oversee the issuance of business licenses in the Emirate. In this segment, we will delve into the specific DED license activities covered under each license.
Issued to businesses involved in trading activities, granting permission for a wide range of operations. The DED trader license activities list includes:
Typically issued to businesses engaged in manufacturing activities. The DED activity list for an Industrial License includes the following:
Generally required for individuals or companies providing professional services. The DED professional license activities list includes the following:
Thus, by understanding the DED license activities list, you can choose the most suitable license for your business in Dubai.
While the DED license activities list provides the scope of the business, the regulatory considerations clarify the conditions under which you can pursue a particular activity. Hence, understanding these regulatory requirements can ensure a smooth business setup.
Your license category is primarily determined by the specific business activity that you choose to undertake in Dubai. Therefore, it is crucial to understand the nature of your activities and apply for the correct license type. Operating outside the scope of your licensed activity can lead to dire outcomes. For instance, engaging in trading activities with a professional license.
Many activities itemized in the DED activity list Dubai are regulated by external authorities. Hence, to obtain a business license, you need to secure the necessary No Objection Certificates (NOCs) or approvals from the relevant regulatory bodies. For example
Due to the changes made in the UAE company law in 2021, most commercial and industrial activities allow for 100% foreign ownership. Over 1,000 activities in the DED license activities list do not require Emirati partners. However, certain regulated sectors are restricted from this freedom, such as oil exploration and production, defense and security-related activities, telecommunications, banking and insurance, and certain transportation activities.
Before finalizing an activity, it is advisable to confirm the current foreign ownership rules with the experts at Dubiz.
The Department of Economy and Tourism allows businesses to combine multiple (typically up to 10) activities under a single license, provided they fall within the same general category. For example, Mobile phone trading and electronic appliances trading are both commercial activities, and hence can be combined within a license. On the contrary, combining a trading activity with a professional activity under a single license is restricted due to conflicting regulatory oversight.
The rules regarding the same can be different in freezones. If you want to navigate these boundaries with ease and identify the best framework for your business, Dubiz is here to guide and support.
A physical office space is mandatory for all mainland businesses. Moreover, the size and type of the selected space must match the chosen business activity. For instance, a factory or warehouse for industrial activities, kitchen-equipped premises for food establishments, a standard office for consultancy firms, etc.
The E-Trader license is an exception to this requirement. UAE nationals and select residents who own home-based businesses or online activities can operate without office space, provided they are low-risk business types.
The DED and other regulatory bodies conduct inspections to ensure strict adherence to the licensed activity. For instance, if a consultancy firm is caught selling products, it may be penalised for unlicensed trading. Likewise, industrial companies must strictly adhere to environmental and safety regulations.
For license renewals, the authorities may require proof of continued compliance, such as updated approvals or valid insurance.
When professionals like Dubiz handle your renewals, approvals, and documentation, compliance becomes much easier.
The DED license activities list is periodically updated by the DED to demonstrate market trends and emerging sectors. For example, “Artificial Intelligence Consultancy” or “Space Technology R&D” are now included in the list. However, if any existing activity does not fit your business model, the DED may suggest and approve a close alternative.
To stay informed with official updates and announcements, partner with Dubiz.
A DED license is mandatory to set up a business in the Dubai Mainland. The license acquisition process is straightforward; however, it involves a series of steps.
The first step is to decide the activity you want to carry out in the UAE. There are over 2,000 permissible business activities covered under different DED licenses. Choose one that aligns with your business goals and make sure to secure approvals from other government entities if needed.
The legal structure of the company determines the ownership rules, liability, and operational scope. The common options available in the Mainland are as follows:-
The trade name you choose for your Mainland company must be unique, relevant, and not contain offensive or religious terms. Most importantly, it should be available for registration with the concerned department.
After finalizing the business activity, legal structure, and trade name, apply for initial approval from the DED as confirmation from the government to proceed with your business setup plan.
A physical office or workspace is mandatory for all DED-licensed businesses. As a business owner, you can either rent or buy an office space, depending on your business activity. If you plan to lease the office, prepare a tenancy contract and submit it with your license application.
Once you submit your license application, documents, and fees, the DED will verify its authenticity and issue your business license accordingly.
With your DED license, apply for required visas, an establishment card, and a corporate bank account.
The cost of the DED license in Dubai is significantly impacted by the specifics and requirements of the business. While a professional license starts from AED 17,900, the price of a commercial license will be AED 24,500.
We recommend contacting our experts at Dubiz to determine the approximate price so that you can plan your budget and finances in advance.
Choosing the right license is a crucial step in the business setup process. To make an informed selection, you need to understand the specific activities in the DED activity list Dubai and their strategic classification under each type of license. This awareness ensures that your business complies with the regulatory standards and local economic policies and is effectively positioned within the dynamic market of Dubai.
Whether you’re an aspiring entrepreneur or a seasoned investor, getting expert help is an ideal approach. Dubiz can assure a quick and hassle-free business setup experience by offering complete assistance in choosing the right activity, handling approvals, documentation, and licensing. Our business specialists, with their expert guidance, will help you launch your venture confidently in the UAE’s growing market.
Simplify your Business Journey with Dubiz!
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The DED license activities list in UAE is a series of approved business activities that companies can choose from while applying for a license in the Mainland.
The DED license is mainly categorized into three types: Commercial license for trading activities, Professional license for service-based activities, and Industrial license for manufacturing and production activities.
Make sure the activity you choose aligns with your business goals and legal requirements. The business consultants at Dubiz can help you make the right selection.
No. Only some activities, such as healthcare, education, food trading, etc., require approvals from specific departments.
No, the DED business activities list is specifically for Mainland businesses. However, free zones have their own individual list of permissible business activities.
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