The favorable business environment and support from the government call for starting a new business in Dubai, UAE. It is indeed one of the most sought-after locations for commercial projects due to the huge demand for goods, ease of doing business as well as proximity to emerging markets. However, you need to obtain a valid trade license from the Department of Economic Development (DED) to start your venture in Dubai. The DED is a government agency that supervises and regulates Dubai’s economic agenda as well as develops and accelerates Dubai’s economic growth by creating strategic plans and policies. Nonetheless, there are certain rules and guidelines laid by the DED that every company that comes for registration has to follow. For instance, the DED activity list which covers all the permissible activities investors can choose from while starting a company in Dubai.
Similarly, you need to consider all the other aspects of the DED trade license while launching your business in the UAE. While let’s discuss what this organization does and what activities it approves.
Dubai economic department trade license activity list
The DED activity list includes the following:
Commercial license
A commercial license covers all trading activities and is issued to companies involved in trading practices. Therefore, every general trading firm and other retail business needs to secure a commercial license in order to operate their business in Dubai.
Some of the trading activities of the DED activity list for the commercial license include the following –
- Aircraft, train, and auto spare parts
- Animal skin production
- Bags, paper, and other packaging materials
- Banks, finance, and credit services
- Beauty and baby care products
- Communication and broadcasting
- Building materials – construction and maintenance
- Transportation
- Car rental services
- Chemicals
- Movies and entertainment
- Cleaning supplies
- Business Brokerage
- Consumer stores
- Cooperative societies
- Gas distribution
- Electrical equipment
- Fish farming
- Facility administration
- Flour mills
- Plants
- Fodders and animal feed
- Food products
- Fuel and petroleum products
- Furniture and home appliances
- Insurance
- Jewelry
- Livestock
- Investment
- Machinery and equipment – sale and rental
- Mechanical and engineering equipment
- Pharmaceuticals, medical equipment, and services
- Metals and their byproducts
- Packing services
- Perfumery
- Nursery
- Pets
- Postal services
- Poultry
- Ready-made garments
- Real estate investments
- Stationery and books
- Sports items – sale as well as on rent
- Ships and boats
- Surveillance services
- Tents and tarpaulins
- Tobacco
- Motor vehicles
- Vending machines
Also read the post: Overview: Abu Dhabi Free Zone License
Industrial license
An industrial license covers manufacturing activities such as converting raw materials into finished goods. Hence, DED issues these licenses to all the manufacturing companies. However, these companies also require certain approval to acquire this license, such as approval from the Ministry of Economy, Dubai Municipality, DEWA, Ministry of Interior, etc.
The DED activity list for the industrial license includes manufacturing of below products –
- Machines and electronic appliances
- Blocks and building stones
- Carpets and mats
- Bread
- Charcoal & petroleum products
- Steel and iron casting
- Coatings, insulations, and seals
- Protection materials
- Cotton, metal nets, and also ropes
- Machinery and engines
- Fodder and fertilizers
- Food processing, refining as well as packaging
- Glass and chinaware
- Aircraft – manufacturing as well as maintenance
- Glass repair and also lens cutting
- Lighting equipment and batteries
- Eyeglasses
- Gold and precious stones
- Mat and rug
- Medicines
- Automobiles and their spare parts
- Bags, shoes, and other leather products
- Meat and fish processing
- Garments
- Tobacco and cigarettes
- Paper as well as paper products
- Furniture and wood products
- Metal containers and also other home appliances
- Ovens and stoves
- Pipes and wires
- Plastic as well as products made of plastic
- Ship – construction and repair
- Stationery products
- Steel & structural steel – production, and fabrication
- Waste collection and also disposal
- Electricity – generation as well as transmission
- Bottled water
- Textile products
Professional license
A professional license is issued to those individuals who possess professional knowledge and skills and want to deliver services that depend upon these skills. Businesses like consultancy firms, auditing firms, accounting firms, etc. require professional services for their operations. Besides, these firms need to hire a Local Service Agent (LSA) but are allowed 100% foreign ownership as well.
The Dubai economic department trade license activity list for a professional license includes the following services and activities –
- Agricultural
- Animal welfare
- Business advisory
- Applied research
- Accountancy
- Vehicle registration and transfer
- Charity
- Cleaning
- Engineering consultancy
- Management consultancy
- Marketing information
- Event planning
- Document storage as well as destruction
- Finance consultancy
- Fish farming
- Salon
- Tailoring and design
- Exhibition
- Handicrafts
- Hospitals
- Rehab facilities
- Education
- Insurance consultancy
- Stamp making
- Key duplicates
- Laboratories/medical research
- Legal consultancy
- Driving schools
- Vehicle repairing
- Nursery
- Print and publishing
- Sewage cleaning
- Translation and typing
- Veterinary services
- Professional workshops
- Sports club
- Social club
- Technical consultancy and workshop
Procedure to get the DED license
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Determine the business activity
The most crucial step in acquiring a DED license is identifying the right business activity. While initiating the process of business setup in Dubai, investors must ensure to abide by the DED activity list of permissible activities. The Dubai economic department trade license activity list comprises more than 2,000 business activities associated with the relevant business license. Furthermore, the investor must also ensure to specify all the activities while applying for a license. If in any situation, the company is found carrying out any activity which is not covered in the license, they might have to pay a hefty penalty.
Therefore, it is recommended to consult the business setup service providers of Shuraa who can help you with this step and also safeguard you from any legal consequences.
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Choose a company name
A company name is very crucial, and hence, the investor must decide on it right after determining the legal structure. However, they must abide by the strict trade name guidelines of the UAE government. Moreover, the selected name should be associated with the chosen business activity as well as the legal structure of the company. A unique trading name helps consumers to identify the brand and services offered by the company in the market.
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Get the initial approval
An initial approval certificate from the DED ensures a smooth business setup process in Dubai. This certifies that the DED has no objection against the investor or entrepreneur setting up a company in Dubai. Hence, the investor must submit proper documentation and supplication while seeking initial approval from the authorities.
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Establish the legal structure of the business
The legal structure of the business means the type of business you want to establish in Dubai. This decision entirely depends on the location of the business, business activity, the number of owners, and ownership options. Since DED issues licenses for mainland companies, the investor can choose the suitable company structure from the various options available for mainland company formation. For example, Limited Liability Company(LLC), partnership, Branch, Representative office, etc. Thus, the investor must conduct meticulous study and research before determining the legal structure.
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Rent an office space
A license application demands the physical address of the company. Foreign entrepreneurs, thus need to find an affordable office space suitable for their business and rent or lease it out to fulfill the license application requirement. Furthermore, the investor would need it while applying for a residence visa.
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Get the license from DED
The last step of the DED license application process is the submission of documents along with the approval certificates to the DED. Additionally, the applicant also needs to pay a nominal fee amount to get the license. After proper verification and examination, DED will issue the license with which you can start your business operation legally in Dubai.
The investor needs to submit the following documents while applying for the license
- License application, correctly filled and duly signed by the company managers/legal representatives
- Memorandum of Associoation
- Company name approval letter
- Copy of passport of the managing partners
Benefits of acquiring a trading license from DED
- Trading provisions, both nationally and internationally
- No compulsion on auditing
- Tax-free status
- Hassle-free legal procedures
- Covers a broad range of banking services
- Easy access to employee visas
- No restrictions on foreign currency
- Allows repatriation of capital and profits
- Low trade taxes
- Credibility
- Promotes simple setup
Want to know more about the DED activity list? Do not hesitate to look for expert help at Shuraa Business Setup. With over two decades in the market, we are the best associates in your business ventures. In addition, we will provide you with all the tools and value-added services you need to succeed in your business project.
So, we request you to take a step further and contact us! Connect with us at +971 44081900 or info@gmail.com. For more information on DED services, visit www.shuraa.com.
