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What Is a DED License? Meaning, Types & Process in Dubai

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What Is a DED License? Meaning, Types & Process in Dubai
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A DED license is the official approval needed to run a business legally in the Dubai mainland. It is issued by the Dubai Department of Economy and Tourism, also known as DED Dubai, and confirms that your company’s activity, name, and structure meet government rules. Whether you want to open a shop, offer services, or trade locally, getting this DED trade license is the first step toward completing your business setup.

This guide covers everything you need to know — what a DED license is, how to obtain it, and how to choose the right one.

A DED license is a government-approved trade license that permits running a business in Dubai.

Without a trade license Dubai DED, a company cannot legally operate in the local market.

Why Is a DED Trade License Important?

A DED trade license is important for several reasons:

  • DED Trade License makes your business legal in the Dubai mainland
  • It allows you to work with the UAE.
  • DED Trade License helps you open corporate bank accounts.
  • Enables visa processing for owners and employees.
  • Builds trust with suppliers and clients

For anyone who is planning business setup in Dubai mainland, this license approval is the first important step.

Types of DED License in Dubai

Your company activity will choose the DED License Activities and the DED license you need. Depending on your business type, the following licensing options apply:

  1. Commercial License: For trading businesses like retail, import/export, and general trading.
  2. Professional License: This license is suitable for consulting, design, IT services, and freelance activities.
  3. Industrial License: For manufacturing or production businesses.

Each type is issued by DED Dubai based on your approved activity list.

Steps to Get a DED License

The process for getting a trade license in Dubai DED included:

  1. Choose your business activity – Select the exact activity your company will perform.
  2. Reserve your company name – Submit name options and get approval.
  3. Decide the legal structure – Choose whether your company will be an LLC, sole proprietorship, or another structure.
  4. Apply for initial approval – This confirms the authority has no objection to your business.
  5. Prepare documents and office lease – Submit legal paperwork and proof of business address.
  6. Pay fees and receive the license – Once the authority approves your application, it will issue your DED license.

After this, your business setup is complete, and you can start operations legally.

Additional Information: How to Apply for a DED License in Dubai?

Who Needs a DED License?

Generally, you need a DED license only when:

  • Open a physical shop or office in Dubai.
  • Provide services directly to customers in the UAE.
  • Trade in the local Dubai market.
  • You want to operate a mainland company instead of setting up in a free zone.

If your goal is full access to the UAE market, then a trade license from DED is required.

Final Thoughts

The DED License is the official mainland trade license issued by DED Dubai. It allows you to run a legal business in Dubai. In any case, whether you want to trade, offer services, or open a store, this license serves as the foundation of a mainland company.

Understanding what is DED license is in Dubai helps you choose the right setup and avoid delays when starting your business.

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Joel Dsouza

About the Author

Joel Dsouza

Joel Dsouza is a Chartered Accountant and compliance specialist with extensive experience advising over 1,000 startups and SMEs on company registration, tax structuring, and regulatory compliance. As a member of ICAI and Co-Founder of Safe Ledger, Joel combines his deep financial expertise with a global perspective to help entrepreneurs navigate complex business environments. Focused on the UAE market, he is dedicated to empowering international and local business owners with clear, practical guidance on company setup, tax optimization, and ongoing compliance making him a trusted advisor for businesses aiming to succeed in the dynamic UAE economy.

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