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Benefit of Setting up a DED Company

By Ananya - 24 Jan 2022 Last Updated: 04 May 2022
Benefit of Setting up a DED Company

Table of Contents 

  1. 1. What is Department of Economic Development?
  2. 2. Advantages of Starting a DED Company
  3. 3. The Department of Economic Development has outlined the steps to Starting a Business in Dubai.
  4. 4. Conclusion

It is critical to comprehend Dubai DED before establishing a firm there because Dubai is well-known for its world-class infrastructure and rapidly growing corporate structures. Almost every investment businessman wants to try his luck in Dubai's enormous grand economy. The UAE government has opened up Mainland Dubai to a wide range of commercial and trade opportunities. One of the most important requirements for starting a business in Dubai is to register it with the Dubai Economic Department (DED).

Every business owner must apply for and receive permission from the DED for specialized business permits. As a result, before forming a company in Dubai, you should be well-versed in the DED legislation as well as the necessary business permits. The UAE government also offers tax perks and investment opportunities to business owners, resulting in an increase in the number of startups each year.

What is Department of Economic Development?

The Department of Economic Development (DED) is a government-run agency that awards commercial and professional licenses to individuals or groups for the purpose of starting a business in Mainland Dubai. This government agency develops economic goals and strategies, as well as providing necessary services to domestic and foreign businesses. Their commitment to Dubai's economic growth has made business start-ups in the mainland region far easier and more convenient.

Advantages of Starting a DED Company

The Department of Economic Development (DED) is the governing agency in charge of new business establishments on the mainland of Dubai. It is the agency in charge of providing licenses and overseeing the legal aspects of starting a business in Dubai. Only Mainland Dubai-based businesses will be required to register with DED Dubai.

A Mainland license, LLC, or Onshore license is also known as a DED License. It has grown in popularity when customary laws were relaxed, allowing ex-pats to hold 100 percent of the property.

There are numerous advantages to forming a DED firm.

Ease of Starting a Business

The DED promotes and facilitates the process of starting a new business in Mainland Dubai.

The administrative and legal procedures for forming a DED corporation are simple and straightforward.

The DED places fewer constraints on businesses and provides more chances for them to start and flourish.

Many investors like the DED License because of its flexible regulatory procedures, simple approval processes, affordable options, and short timescales.

Multiple Licenses are available

If you have enough office space, you can apply for as many licenses as you need. In the case of commercial and professional licenses, there are no constraints on the scope of the business.

Visas are not Restricted

A DED license does not have a limit on the number of Visas that can be obtained. However, the ability to obtain Visas is contingent on the availability of office space. The more office space you have, the more Visas you may obtain. One Visa for 100 square feet of office space is the formula.

Choice of Office Premises

A DED company can choose any location in Dubai for its office or have an office anywhere in the UAE. This decision permits the corporation to trade with the local market and develops many branches in the UAE, allowing it to establish a significant presence.

Flexibility in Business Operations

The DED's list includes a diverse range of business activities. However, if a certain activity isn't already included, DED officials can strive to have it added to the list so that their clients are protected.

A DED company has no restrictions on the kind of businesses it can engage in, and it can tap into the huge UAE economy.

A DED company has a greater opportunity to diversify its efforts and engage in a variety of economic activities.

A DED corporation now requires a local partner/sponsor with a 51 percent stake. However, the DED is expected to alter this regulation soon, allowing foreign ownership in specific business activities to be 100 percent.

The DED offers a flexible legal mechanism for profit-sharing between the foreign investor and the local sponsor. In this case, the investor pays a predetermined annual fee to the sponsor, allowing him to keep complete control of his business. The local sponsor (sleeping partner) will be excluded from any business operations or profit-sharing arrangements.

Read more :-Geographical Benefits of Starting Business in UAE

Fewer Nationality Limits

When compared to other countries, there are fewer nationality restrictions in terms of ownership and visas. In other words, foreign nationals are allowed to operate businesses and obtain visas in greater numbers than in other countries.

Greater Business Flexibility

DED enterprises can trade with mainland companies in Dubai or the United Arab Emirates.

They can conduct business both within and outside the UAE. They are also permitted to conduct business in any UAE free zone.

Free zone companies do not have this flexibility because they are barred from operating their businesses within their particular free zones.

Local and government offices can also do business with DED firms. They can choose to participate in tender bids that will allow them to trade or supply services under government contracts.

No Minimum Capital Required: To incorporate a DED Mainland Company, there are only a few regulations and no minimum capital requirement.

Recruitment is simple

There are no restrictions on who can be hired.

The hiring process is simple, and there are no restrictions on employment visas.

Office Space Options

For establishing up your office anyplace, office spaces are available with reasonable and flexible leasing and lease agreements.

Business Expansion

A DED company has the ability to grow in terms of branch locations. A DED license is required if one of the objectives of establishing a business in Dubai is to open branches.

Additional advantages Include

  • There is no tax on businesses or individuals.
  • Import taxes are minimal.
  • Audits aren't done every year.
  • There are no limitations on currency.
  • Capital and profits are fully repatriated.
  • Establishing a business bank account is simple.
  • Improve your local or international reputation and position

The Department of Economic Development has outlined the steps to Starting a Business in Dubai.

The Department of Economic Development has provided enormous benefits to Mainland business owners. DED's main goal is to make the business start-up process as simple and quick as possible, avoiding time-consuming administrative procedures.

The outlined steps for establishing a business in Dubai below.

Select the Type of Business

In Mainland Dubai, there are around 2100 business activities from which to choose. To begin, decide what type of business you want to create.

Complete the Legal Form

Every company venture begins with the selection of an appropriate legal structure. The legal form must be filled out with information such as the number of owners, their nationality, the type of business, and so on.

Choose a Trading Name

The Department of Commerce has provided precise criteria for choosing trade names for enterprises. When picking a trade name, make sure to stick to the rules. Then, once you've made your decision, apply for it at one of the licensed service locations or online portals.

To obtain an Initial Approval Certificate, submit an application

The initial permission certificate functions similarly to a NOC from the Dubai government and the Department of Economic Development. This states that they have no objections to the business's start-up, as well as the MOA and LSA approvals (if required) .Certificates such as Memorandum of Association (MOA) and Local Service Agent may be required depending on the business structure (LSA). You should get these credentials validated if necessary.

Choose a Location for your Company

DED allows you to choose your office address from anywhere on the mainland. All you have to do now is sign a contract with the property owner. Then, for your startup, register that contract with the Real Estate Regulatory Agency.

Submit an Application for a License

The next step is to submit an application for the necessary business license. Different government entities require different permits for different types of businesses. Business licenses must be submitted.

After you've completed all of the stages, you'll need to gather all of the approved business licenses.


The UAE government has established a distinct body called DED to oversee the country's economic development. Its main goal is to make it easier for new businesses to start on the Mainland. DED offers a wide range of incentives to its investors in addition to lowering business limitations. Just intend to create your own business in Dubai after learning about the benefits and numerous licenses that DED offers.

Dhanguard can assist you if you are looking to open a business in Dubai, UAE, and would like to learn more about the DED process. The all-in-one solution for all of your business setup requirements.

Dhanguard provides the business setup and company formation services in Dubai, UAE with the guidance of our professional team of consultants. Faster and hassle-free company setup in Mainland and Freezone in UAE.

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