If you’re planning to start a business in the UAE, understanding the DED License Activities List in UAE is crucial. The Department of Economic Development (DED) categorises various business activities, ensuring compliance with local regulations.
Whether starting a retail store, a consultancy firm, or a manufacturing unit, selecting the right business activity determines your licensing requirements. In this guide, we’ll explore the complete DED License Activities List in UAE, helping you choose the right one for your venture.
What is a DED License in UAE?
A DED License in the UAE refers to a business license issued by the Department of Economic Development (DED) in each emirate. It is required for companies operating on the mainland, allowing them to conduct business within the UAE and internationally.
The DED License is categorised into different types, including Commercial, Professional, and Industrial licenses, depending on the nature of the business activity. It ensures legal compliance, facilitates business operations, and grants access to the local market without restrictions on trading within the UAE.
Benefits of a DED License in the UAE
A DED (Department of Economy and Tourism) License is a requirement for businesses operating in the mainland UAE. It allows companies to conduct commercial, professional, and industrial activities nationwide freely. Below are the key benefits of obtaining a DED license:
1. 100% Foreign Ownership
Previously, foreign investors needed a local Emirati sponsor (owning 51% of the business). However, recent reforms allow 100% foreign ownership for most business activities, making it easier for expatriates to start and run businesses.
2. No Restrictions on Business Activities
Unlike free zones, where businesses are limited to specific industries, a DED license allows a broader range of activities. You can engage in retail, trading, manufacturing, consulting, and more without geographical restrictions.
3. Ability to Trade Anywhere in the UAE
With a DED license, businesses can trade and provide services across the UAE without needing a local distributor. This flexibility gives mainland businesses access to a larger market than free zone companies.
4. Access to Government Contracts
Only mainland companies with a DED license can apply for highly lucrative government tenders and contracts. Free zone businesses cannot directly bid for these projects.
5. Flexible Office Setup
DED-licensed businesses can set up offices anywhere in the UAE, unlike free zone businesses that must operate within designated areas. This allows companies to establish their headquarters in prime locations.
6. No Minimum Capital Requirement
Most DED licenses do not require a minimum capital investment, making it more affordable for startups and small businesses to enter the market.
7. Unlimited Visa Quotas
The number of visas a mainland business can obtain depends on office space, but there are no fixed limits like in free zones. This makes it easier to scale your workforce as the company grows.
8. Favorable Corporate Tax Structure
The UAE has introduced a 9% corporate tax on profits exceeding AED 375,000, which remains among the lowest globally. Additionally, many business activities are VAT-exempt or subject to zero-rated VAT, depending on the industry.
9. Increased Business Credibility
A DED license enhances credibility and trust in the UAE market. It allows businesses to attract more clients, investors, and financial support, as mainland companies are seen as more established than free zone entities.
10. Freedom to Expand and Open Branches
With a DED license, businesses can expand internationally across the UAE without restrictions. On the other hand, free zone companies need a local agent to operate on the mainland.
Types of DED Licenses in UAE
In the UAE, the Department of Economic Development (DED) issues various types of licenses based on the nature of the business. The main types of DED licenses are:
1. Commercial License
A Commercial License is issued to businesses engaged in trading activities, such as buying and selling goods or providing services. This license is ideal for retail stores, wholesalers, and import/export businesses, allowing them to operate legally within the UAE.
The commercial license is one of the country’s most common types of licenses, as it covers a wide range of industries involved in commercial transactions.
2. Industrial License
An Industrial License is required for manufacturing, processing, or production businesses. This includes industries such as factories, assembly plants, and food production companies.
The industrial license allows businesses to legally engage in activities that involve creating or transforming raw materials into finished products, contributing to the UAE’s industrial growth.
3. Professional License
A Professional License is designed for businesses offering professional services, such as consultancy, technical services, or educational programs.
This license suits individuals or companies with expertise in legal, IT, and consultancy services. The professional license ensures that businesses operate within the legal framework required for their services.
4. Tourism License
A Tourism License is essential for businesses operating in the tourism sector. It is issued to travel agencies, tour operators, and companies offering hospitality services, such as hotels and resorts.
The tourism license allows these businesses to cater to international and domestic tourists, contributing to the UAE’s thriving tourism industry.
5. E-Commerce License
The E-Commerce License is meant for businesses that operate through online platforms. Whether it’s an online store, a digital marketplace, or a service-based platform, this license is crucial for any business conducting e-commerce activities.
The license allows companies to legally sell products or services online while complying with the UAE’s regulations set for digital operations.
DED License Activities List in UAE
The DED License Activities List in UAE refers to a comprehensive list of business activities authorised under the UAE’s Department of Economic Development (DED).
This list is crucial for entrepreneurs and business owners to identify the specific nature of their business when applying for a trade license in the UAE. The activities vary across different sectors, including but not limited to:
1. Commercial Activities
Includes the trade and distribution of goods across various industries, both locally and internationally.
- Retail sales of electronics, household appliances, and furniture
- Wholesale distribution of food and beverages
- Import/export of textiles, clothing, and fashion accessories
- Wholesale and retail of vehicles and automotive parts
- Sale of construction materials, tools, and equipment
- Online retail stores (e-commerce)
- Wholesale and retail of cosmetics and beauty products
- Furniture manufacturing and retail
2. Industrial Activities
It includes producing and manufacturing goods in diverse sectors like food, chemicals, and construction.
- Manufacturing of food products, beverages, and tobacco
- Production of chemicals, fertilisers, and plastics
- Textile manufacturing (fabric, apparel)
- Wood, paper, and packaging material manufacturing
- Construction and building materials manufacturing (cement, steel)
- Fabrication of metal products (e.g., steel structures, machinery)
- Oil and gas equipment manufacturing
- Electronics and electrical components production
- Recycling and waste management services
3. Professional Activities
Covers various service-based industries, offering specialised knowledge and consulting in law, marketing, and IT fields.
- Management consulting services (business and strategy)
- Legal services (law firms, notaries, legal advisors)
- Marketing and advertising agencies
- Event planning and management services
- Graphic design and branding agencies
- Accounting and auditing services
- Engineering and architectural consultancy
- IT consulting and software development
- Educational services (tutoring, training, online education platforms)
- Research and development (R&D) services
4. Tourism Activities
Focuses on services related to travel, tourism, hospitality, and leisure activities in the UAE.
- Travel agencies (domestic and international)
- Tour operators (designed tours for specific interest groups)
- Event management companies (corporate, entertainment, and exhibitions)
- Hotel and resort management services
- Car rental and chauffeur services
- Theme park and recreational facility management
- Holiday home and vacation rental services
- Cruise operators and yacht rental services
- Adventure tourism (desert safaris, mountain trekking, diving)
- Hospitality management services
5. Transport Activities
Covers all aspects of transportation, from logistics and freight to passenger services.
- Freight forwarding and logistics services
- Shipping and maritime transport services
- Taxi and limousine services
- Aircraft and drone services
- Public transportation services (bus, metro)
- Courier and delivery services
- Storage and warehousing services
- Vehicle leasing and fleet management
- Construction machinery rental services
- Moving and relocation services
6. IT and Communication
Includes services related to information technology, communication, and digital solutions.
- Software development (custom applications, mobile apps, etc.)
- IT infrastructure solutions (networking, cloud services)
- Web development and design services
- Digital marketing and SEO services
- Cybersecurity services and solutions
- Telecommunications services (internet, mobile, satellite)
- Artificial intelligence and machine learning consulting
- Data analytics and business intelligence services
- E-commerce platform development
- Virtual reality (VR) and augmented reality (AR) services
7. Health and Medical
It comprises healthcare, medical services, pharmaceuticals, and wellness solutions.
- Hospitals, clinics, and specialised medical centers
- Dental services (clinics, orthodontics, prosthodontics)
- Diagnostic and laboratory testing services
- Pharmaceutical manufacturing and distribution
- Medical equipment sales and servicing
- Health and wellness spas and centres
- Physiotherapy and rehabilitation centres
- Home care and medical support services
- Medical research and development
- Health insurance services
8. Real Estate and Property
Encompasses all property management, development, sales, and leasing activities.
- Real estate brokerage and consultancy services
- Property development and construction companies
- Property management and maintenance services
- Commercial and residential leasing services
- Real estate investment and asset management services
- Property valuation and appraisal services
- Mortgage and home loan consultancy
- Land surveying and planning services
- Interior design and furniture retail
- Building and facility maintenance services
How to get a DED License in Dubai?
To obtain a DED License in Dubai, follow these steps:
Step 1: Choose Your Business Activity
Refer to the DED License Activities List in UAE to ensure the activity you wish to undertake is included in the list of activities approved by the Dubai Department of Economic Development (DED). The list contains various sectors such as trade, manufacturing, and services.
Step 2: Select a Business Name
Choose a unique and compliant name for your business according to DED’s guidelines. Make sure it aligns with the type of business you plan to establish.
Step 3: Register Your Trade Name
Apply for a trade name reservation with the DED. This will reserve your business name for a specific period.
Step 4: Prepare Required Documents
The necessary documents include:
- Copy of passport for the owner(s)
- Proof of residence (for UAE nationals)
- A copy of the tenancy agreement for office space
- NOC from the current sponsor (if applicable)
Step 5: Submit the Application
Submit your application to the DED along with the necessary documentation for approval. This can be done online or in person through the DED’s website.
Step 6: Pay Fees
Pay the required license fee as per the DED’s fee structure. The fee varies depending on the business activity and the type of license.
Step 7: Obtain Your License
Once your application is approved and all fees are settled, the DED will issue your license, and your business will be legally registered.
For more detailed information, consult with Shuraa business setup consultants to ensure you meet all the requirements as per the DED License Activities List in UAE.
Documents required to get a DED license in UAE
To obtain a Department of Economic Development (DED) license in Dubai, the following documents are typically required:
- Passport copies
- Emirates ID copies
- Residence visa copies
- Passport-size photographs
- No Objection Certificate (NOC)
- Business name approval
- Tenancy contract
- Trade name reservation
- Shareholder or partnership agreement (for specific business types).
- Proof of relevant qualifications and professional certifications
- Business plan
These documents may vary depending on the type of business (e.g., professional, commercial, industrial) and any additional permits or approvals needed. Always check with the DED for the most specific requirements.
What is the DED license cost in Dubai?
The cost of a DED license in Dubai starts from AED 12,900*. However, the final price may vary depending on various factors, such as the business type, location, and additional requirements.
For an accurate and personalised quote, contact Shuraa UK.
Simplifying Your Business Setup with Shuraa UK!
Starting a business in the UAE can be simple once you understand the DED License Activities List in UAE. Whether you’re opening a retail store, consultancy, or manufacturing unit, selecting the right business activity is key to getting the correct license.
Shuraa UK is here to help you through the entire process. From choosing your business activity to securing the necessary permits, we provide expert guidance to make sure your business is set up smoothly and in compliance with UAE regulations. Let us help you turn your business idea into reality with ease.
