How to Apply for a DED License in Dubai?

Dubai’s vibrant economy and strategic location make it a top choice for entrepreneurs and investors worldwide. The city offers a business-friendly environment and world-class infrastructure. But to operate on the mainland, you must get a DED license. This is not just a legal requirement; it’s your key to accessing the full Dubai market. This guide provides a clear, step-by-step process for applying for a DED license.

This blog will cover everything from what a DED license is to its cost and common mistakes to avoid. This information is crucial for startups, foreign investors, and consultants who want to set up a business in Dubai.

A DED license is your official permit to conduct or set up business in Dubai’s mainland. The Department of Economic Development (DED), now part of the Department of Economy and Tourism (DET), issues this license. It allows your business to operate freely across the emirate, engage in local trade, and enter government contracts.

Entrepreneurs must understand the difference between a DED license and a Free Zone license. Free Zone companies operate within designated economic zones and enjoy certain benefits like 100% foreign ownership and tax exemptions. However, they face restrictions on doing business directly with the mainland market. A DED license, on the other hand, gives you full access to the entire UAE market.

There are three main types of DED licenses. Your business activity determines which license you need:

• Commercial License: This license is for businesses that buy, sell, or trade goods. It covers a wide range of activities, including general trading, retail, and e-commerce.
• Professional License: You need a professional license if you offer services or use your professional skills. This includes consultants, designers, accountants, and freelancers.
• Industrial License: Businesses that manufacture, process, or produce goods need an industrial license. This license is for factories, food producers, and other industrial operations.

Note: The DET also issues Tourism Licenses (through its tourism wing) and Specialized Licenses for specific activities, such as freelancers or branch offices.

Getting a DED license gives your business significant advantages. They give you the flexibility and reach you need to succeed in Dubai’s competitive market.

• Access To The Dubai Mainland Market: You can trade directly with customers and companies anywhere in Dubai and across the UAE. This is the biggest benefit of a DED license.
• 100% Foreign Ownership: The UAE introduced a game-changing reform in 2021. Now, foreigners can own 100% of their mainland companies in most sectors. This change eliminated the need for a local Emirati sponsor for many activities, giving you full control over your business.
• Visa Sponsorship For Employees: A DED license allows you to sponsor residency visas for yourself and your employees. This is essential for building your team.
• Eligibility for Government Tenders: Many government projects and contracts require a mainland license. A DED license makes your business eligible for these lucrative opportunities.
• Business Flexibility: You can set up your office anywhere on the mainland. This gives you flexibility in choosing a location that suits your business and budget.

Applying for a DED license involves several important steps. You can simplify the process by following a clear, structured approach. This checklist helps you stay on track.

Step 1: Choose Your Business Activity

First, you must define your business activity. The DED maintains an extensive list of over 2,000 commercial, professional, and industrial activities. You must select the activity or activities that accurately describe your business. This choice directly impacts your license type and any special approvals you may need. For instance, a health clinic needs approval from the Dubai Health Authority (DHA).

Step 2: Select Your Legal Structure

You must choose a legal structure for your company. The most common options include:

• Sole Proprietorship: One individual owns this type of business. A Sole Proprietorship is ideal for service-based businesses with a single owner.
• Limited Liability Company: An LLC is the most popular choice for most business types. It protects your personal assets from business liabilities. You can now have 100% foreign ownership in an LLC.
• Branch of a Foreign Company: This structure is for foreign companies that want to open a branch in Dubai.
• Civil Company: Designed for licensed professionals like doctors, lawyers, engineers, or consultants. Civil companies require professional licenses, and in some cases, a local service agent may still be needed.
• Public & Private Joint Stock Companies: These options suit larger businesses with higher capital requirements. They are often chosen by companies planning to raise investment or expand on a larger scale.

Step 3: Reserve Your Trade Name

You must reserve a unique trade name for your business. The DED has specific rules for naming. Your name cannot contain offensive language, religious references, or names of governing bodies. You can check the availability of your preferred name and reserve it through the DET portal.

Step 4: Get Initial Approval

The initial approval is a crucial step. It confirms that the DED has no objection to you starting your business. You must submit your application, passport copies, and other relevant documents online. The DED issues an initial approval certificate. This certificate lets you move on to the next steps, like securing an office space and getting external approvals from other government departments.

Step 5: Lease Office Space & Register Ejari

All businesses on the Dubai mainland must have a physical office address. You need a tenancy contract for your chosen office space. You must register this contract with the Real Estate Regulatory Agency (RERA). This registration is called Ejari. It proves you have a legitimate business address. Ejari registration is a legal requirement, and you cannot get your DED license without it.

Step 6: Submit Final Documents

After getting your initial approval and Ejari certificate, you must prepare and submit your final documents. These include:

• The initial approval certificate
• The Memorandum of Association (MOA) for LLCs
• The tenancy contract (Ejari certificate)
• Passport and visa copies of all partners
• A copy of the trade name certificate
• Any external approvals from other government bodies

Step 7: Pay The Fees And Receive Your DED License

The final step is to pay the license fees in Dubai. The DED issues a payment voucher. You can pay for this voucher through several channels, including the DED website, the Dubai Now app, or an authorized service center. After you pay, the DED issues your official DED license. You will receive an electronic copy first, and you can start your business operations immediately.

Note: DED licenses are valid for 1 year and need to be renewed every year. Renewal requires an updated Ejari certificate, payment of the annual license fee, and, in some cases, re-approval from relevant authorities.

The cost of a DED license is not fixed. It depends on several factors, including your business activity, legal structure, and visa requirements. Here is a general breakdown of the estimated costs.

Many new business owners make small errors that cause significant delays. You can avoid these problems by paying close attention to details.

• Choosing the Wrong Activity Code: Incorrectly defining your business activity can lead to fines and legal issues later. Always verify your chosen activity with the DED’s list.
• Incomplete Documentation: Missing or expired documents are a common reason for application rejection. Ensure you have all the required paperwork, and it is valid.
• Misunderstanding Ownership Rules: While 100% foreign ownership is now widely available, some strategic sectors still require a local partner or service agent. You must confirm the rules for your specific activity.
• Assuming 100% Ownership Applies to All Activities: Many applicants wrongly believe full ownership applies universally. Review the DED activity list carefully to confirm eligibility for your business sector.
• Delays in Ejari Registration: You cannot complete your license application without a valid Ejari certificate. Secure your office space and register your lease as soon as you can.
• Picking a Trade Name Not Aligned with DED Rules: Trade names must comply with DED’s guidelines. Avoid offensive words, religious references, or names of authorities to prevent rejection.
• Not Budgeting for Visa and Ejari Costs: Many new business owners plan only for the license fee but overlook visa charges and Ejari expenses. Include these in your budget to avoid financial surprises.

Read more: DED License Activities List in UAE

Getting a DED license is a clear path to starting your business on the Dubai mainland. While the process has many steps, it is manageable and transparent. The UAE government continues to improve its business environment. In fact, a recent report from the Dubai Department of Economy and Tourism (DET) showed new business licenses in Dubai increased by 20% in the first quarter of 2025 compared to the same period in 2024.

This growth demonstrates the city’s enduring appeal. By following this guide, you can successfully apply for your license and position your business for success in this dynamic city.