Key Insights about DED Every Investor must know before Setting up a business in Dubai

Every Investor Must Know DED Before Setting Up a Business in Dubai

The Department of Economic Development (DED) is the competent Government body for issuing all licenses for corporate entities or individuals who desire to carry out a business in the mainland of Dubai. The DED and its agencies develop economic plans and strategies, identify and support strategic sectors, and offer various other services to both domestic and foreign investors. Foreign investors most often enlist the aid of Business set-up consultants in Dubai to ease the DED licensing procedures. Here’s a look at the Agencies of the DED and services offered by them for Business set-up in Dubai.

Agencies of Department of Economic Development

The DED has the following agencies, whose fundamental function is to create a conducive environment for business setup in Dubai.

Dubai SME

Dubai SME, an agency of the DED established to promote an entrepreneurial culture and to emerge a competitive SME sector in Dubai. The major strategy of Dubai SMEs is to advocate a pro-business environment for entrepreneurship along with providing assistance to seed innovative startups and groom SMEs.

Dubai Exports

Dubai Exports, which commenced its operations in 2007, aims in facilitating trade from Dubai and brand the emirate as the best export hub in the world. Dubai Exports has established a wide range of value-added services for UAE-based businesses firms that export through Dubai, for the expansion of their businesses in foreign markets.

Dubai FDI

The core objective of Dubai FDI is to develop, promote, and support Foreign Direct Investment (FDI) opportunities in Dubai. The agency facilitates investors’ success, growth, and expansion in Dubai, the UAE, and international markets.

Major Dubai Economic Development Services

Effectively dealing with the DED and its highly streamlined processes are critical to the success of the business setup in Dubai mainland. Newbie entrepreneurs often navigate this critical hurdle with the help of business setup consultants in Dubai. Even when you have expert assistance on your side, it is imperative to know the types of services offered by the DED to facilitate the process of business setup in Dubai. The key services are:

  1. Instant License
  2. Reservation of trade name
  3. Issue Initial approvals
  4. Issuance of trade license
  5. Amendment of trade license
  6. Renewal of trade license
  7. Cancellation of trade license
  8. Issuance of Commercial permit

Types of Business Licenses Issued 

Most entrepreneurs start their association with the DED in connection with obtaining a business license in Dubai. They have to know the different categories of licenses issued by the DED based on the business activities. The DED issues the following categories of licenses to facilitate Business set-up in the Dubai mainland: –

  1. Professional License
  2. Commercial License
  3. Industrial License
  4. Tourism License

Types Business Entities and the Legal Structure.

The business’s legal structure depends mainly on the business requirements and is the basis for identifying the applicable laws and regulations for the Business setup. The following are the form of entities recognized in Dubai.

  1. General partnership
  2. Limited partnership
  3. Limited liability company (LLC)
  4. Public joint-stock company (PJSC)
  5. Private joint-stock company (PrJSC)
  6. Civil company
  7. Local company branch
  8. GCC company branch
  9. Foreign company branch
  10. Free zone company branch
  11. Sole establishment
  12. Holding companies

Legal Contracts and Documents 

Usually, it takes around one or three weeks to issue the license from the initial approval date. The time for license issuance in Dubai mainland depends on the business activities (special activities which may need external approval) and the documentation required. If the documents are not adequate or improperly drafted, clearance from DED may take time.

Here is a general list of the documents that the DED may demand to issue business licenses in Dubai:

  1. Trade name registration approval from DED
  2. Memorandum of Association
  3. Local Service Agent Agreement
  4. Passport copies of partners & NOC for partners (if any)
  5. Initial approval from the DED
  6. Ejari Tenancy contract
  7. Prior approvals from other Government bodies (if required)
  8. Dubai Chamber of Commerce registration

This is not a conclusive list as more documents and other external approvals will be required depending on the activities and legal structure of the proposed business. Investors can seek the advice of the business setup consultants in Dubai for drafting the documents appropriately.

Let Jitendra Business Consultants Guide you

Understanding how the DED works will help every entrepreneur navigate the complexities associated with the business setup process in Dubai. An entrepreneur looking to explore opportunities in Dubai mainland must be well-versed about the DED procedures and requirements. However, it doesn’t mean all investors must chase the DED officials to get approvals.

The entrepreneurs can go the easiest route: setting up a company through the best business setup consultants in Dubai such as Jitendra Business Consultants (JBC). JBC knows the requirements of the investors better than anyone because we have a team of highly qualified and experienced consultants who respond to queries any time of the day. An investor with a sound business plan can leave complex matters such as visas, drafting of documents, office space, etc. to JBC and focus on their core competencies.

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