DED Dubai: The Complete Guide to Issuing Your License in 5 Minutes
Posted on: JULY 01, 2019
Table of Contents
This article will cover all you need to know in one spot to get your business up and running and provide useful info fast on how DED Dubai can help.
A quick look into DED and what you can expect from them.
DED is the government body that's tasked with improving Dubai’s business environment and accelerating Dubai’s economic growth.
It’s the “engine behind Dubai’s economy”.
And is made up of 4 agencies:
Clarifying these points will set expectations and lay the ground work for accountability from both sides.
If the agreed communication process is not met, then at least you both know where you stand and quick, data driven decisions can be taken regarding whether the relationship proceeds or ends.
All in all, DED Dubai has 3 main goals:
In addition, DED Dubai is also the government body responsible for regulating economic activity of all businesses in the mainland i.e. Outside of Freezones.
This includes business registration sector, corporate strategy sector, commercial compliance and consumer protection.
Now let’s get into the nuts and bolts of all you need to know to get your business setup in the mainland.
First things first:
License activities are broken down into 3 categories: Commercial, Industrial and Professional.
And there are 16 types of Legal entities that can be started:
For startups in Dubai, understanding your Legal entity is essential for your Cap Tables and Share Distribution especially if you are considering raising funding in the future.
There are 4 options of legal forms when using the DED Instant License application:
With that covered, lets jump into the actual process to get your DED license issued online.
In the navigation bar of the DED homepage click on "Our Services".
Hit Login to enter.
For the video we used a Guest Login but you’ll need to create a DubaiID to issue your license.
If you want to test the Guest login, click OTP (one time password) and you’ll get a text message with a password.
Enter the password.
Once you’re in, there’s a huge number of e-services that you can use online from the convenience of your device without having to visit DED premises in person.
Take a look below:
Next is to figure out license costs to decide whether this is feasible for your business.
Use the DED cost simulator to get an estimate of license costs.
Click on the Enquiries tab and open “Estimated Cost to Issue License”.
Follow the instructions, enter business activity and partner info to get an idea of the fees to issue your license.
Costs will vary based on license activity but to be on the safe side you can estimate in the region of AED 15K - 20K excluding other costs such as Labor cards and visas.
The market fee is 2.5% of the office rental amount whereas for the DED Dubai instant licenses it's fixed at AED 3000.
Below is a video running through how to do this:
If the numbers work for you then it's time to issue your license online.
License issuance used to be a difficult, time consuming process.
Now this can be done online in 5 minutes flat and doesn’t require a registered office address or a Memorandum of Association (MOA) for the first year.
Note: you'll need to provide these documents when renewing the license for the second year. Also, uploading the MOA or Local Service Agent Agreement at the time of renewal will be more expensive than producing these documents from the start.
Check out this quick demo for getting started with your instant license:
You can either check which activity your business falls under as shown in the video.
Use this list of all 2000+ activities with their activity number to make things simpler.
Also, some license activities have further requirements.
Certain Consultancy licenses require an exam to be taken with AUD.
In such cases the system prompts you for this requirement before you can proceed with having the license issued.
The documents you need depend on the type of Legal Entity you're starting.
To support with getting started quickly, Instant Licenses do not need any documents.
However, you will have to provide proper business documentation down the line.
Here’s a list of all the documents needed categorized per legal entity.
No more back and forth confusion on what’s required
In general, these are the minimum requirements:
Some business activities require approvals from other authorities too.
A healthcare related business may require approval from Dubai Health Authority (DHA) along with DED.
Such authorities have their own documentation and fee requirements as well.
Payment is the final step before receiving your license.
After verifying your application, you’ll receive a payment voucher.
If you decide to pay later:
You have 30 days to complete the payment through any of the available payment options here.
It's a simple and straightforward process:
These are documents you’ll need:
DED Dubai have also introduced an SMS Auto renewal system.
Send an SMS to 6969 with your license number.
If all the above documents are in order, the renewal fees will be auto generated and the payment invoice will be sent to the registered mobile and email of the license to proceed with payment via any of the available channels.
Applications for License amendments must be done in DED offices or at an authorized service provider such as Tas-Heel.
Amendments include changes to:
Then follow the same steps as above:
Typically, costs for amendments range between AED 1000 - 3000.
Not a pleasant thought but still it's information that I wish I'd known when we had to shut down one of our trading businesses a few years ago.
The reason is that closing a business involves unforeseen costs and time constraints.
So better safe than sorry.
Know that you can freeze your business license for up to 3 years for around AED 2000.
To do this, you’ll need the following when applying to freeze the license:
> Letter from owner/manager stating request for freezing the license and reason for it
> Proof of cancellation of staff Labor Cards from Ministry of Labor
Then follow the same steps as above:
Appoint a registered auditor to liquidate the company.
This starts with a letter from partners or board members stating that the company is to be liquidated and state the name of the appointed liquidator company.
With this letter, the Liquidator can act on your behalf.
From here, cancellation is broken down to 2 stages.
The following needs to be done:
Note: the last 3 points also include fees to be paid.
Once all the above is resolved, the liquidators provide their Final Declaration Report.
Which is their report stating that all required elements for cancellation are complete.
They return to the DED Offices, submit all the documents, pay remaining deregistration fees of AED 3,020 to DED and obtain a Certificate of Deregistration confirming that the license has been canceled.
You can use the following channels to file complaints:
If you visit the DED office in Business Village, you'll find the Instant License office as soon as you enter Block A.
You can also visit official DED service providers if you prefer.
To do so, here’s the list of approved vendors that can help you out.
Anything missed or further information you’d like to know regarding the DED?
Let me know in the comments.
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