DED License in Dubai: Types, Costs, & Application Process (2025)

Dubai continues to stand out as one of the world’s most attractive business destinations. Its strong regulatory framework and investor-friendly environment make it easier to launch and grow new ventures. One of the most important steps in this journey? Securing a DED license.

This blog provides a simple guide to understanding what a DED license is in Dubai, including its types, cost, and application process

What is a DED License in UAE?

A Department of Economic Development (DED) license in Dubai is an official permit required to legally start and operate a business within the UAE Mainland. It is issued by the Department  of Economic Development, which is the government body responsible for regulating and promoting economic activities in the country. 

The DED license in Dubai categorises businesses into different types primarily based on their range of activities conducted, such as commercial, industrial, and professional. 

To obtain a DED license in Dubai, businesses must meet specific regulatory requirements and comply with established frameworks. This includes submitting required documentation, obtaining local sponsorship for certain specified types of businesses, and, most importantly, adhering to the emirate's legal and commercial regulations. 

Types of DED Licenses 

There are many DED licenses in the UAE, each catering to a specific business activity. The most common types include: 

• Commercial License

The most popular DED license in Dubai is ideal for businesses involved in trading activities, such as buying and selling goods. This can include supermarkets, retail stores, and import/export businesses.

• Professional License

The type of DED license required for individuals or companies providing professional services such as legal advice, consultancy, engineering, IT services, and more.

• Industrial License

A mandatory DED license for businesses involved in manufacturing goods in Dubai. This can include assembly plants, factories, production units, and similar ventures.

• Tourism License

The type of DED license in Dubai required for businesses engaging in and conducting business activities in the tourism sector. This includes industries such as hotels, resorts, travel agencies, restaurants catering to tourists, and more.

UAE has been ranked number one globally for the fourth consecutive year by the Global Entrepreneurship Monitor (GEM) report for the year 2024-2025, surpassing many advanced economies. 

On this occasion, H.E. Alia Bint Abdulla Al Mazrouei, Minister of State for Entrepreneurship, said, “Thanks to the support and directives of the UAE’s wise leadership, our country has built a comprehensive and forward-thinking entrepreneurial ecosystem, driving its advancement as a global leader in entrepreneurship. This is reflected in the UAE’s top global ranking for the fourth consecutive year as the world’s best environment for entrepreneurship and the preferred destination for start-ups.”

DED Trader License Activities in UAE

The DED is a key government body responsible for regulating and accelerating the emirate's economic growth. One of its key functions is issuing business licenses.

Below is a detailed list of the type of business activities allowed under each DED Trader License: 

1. Commercial Licence

Commercial licences cover businesses focused on trading, retail, and service provision. Key activity groups include:

Trading and Retail

• Supermarkets & stores

• Motor vehicles & motorcycles

• Trading & distribution of various products

• Perfumery & packaging services

Services and Rentals

• Postal services

• Cleaning & surveillance services

• Rental services (including office spaces & electronic equipment)

• Facility management

Media and Communications

• Communications & broadcasting

• Video & audio recordings

• Theatres & cinemas

Financial and Investment Activities

• Brokerage services

• Insurance services

• Property investment

• Investment activities

2. Industrial Licence

Industrial licences are designed for manufacturing and production. Key activity groups include:

General Manufacturing

• General manufacturing

• Machines & appliances

• Steel fabrication

• Woodworking & wood products

Food and Consumables

• Food processing

• Garment & rug production

• Textile & product fabrication

• Leather products manufacturing

Chemicals, Materials, and Energy

• Chemical manufacturing

• Plastics manufacturing

• Glass repair & lens cutting

• Electricity generation & transmission

• Petroleum products production

Specialised Production

• Ship construction

• Eyeglasses production

• Gold & precious stone cutting

• Motorcycles & replacement parts

• Waste collection & disposal

3. Professional Licence

Professional licences focus on consultancy, advisory, and specialised services. Key activity groups include:

Business and Advisory Services

• Management consultancy

• Accounting & finance consultancy

• Marketing & information services

• Business forums & advisory councils

• Representative offices

Legal, Translation and Social Services

• Legal assistance

• Translation & typing services

• Social clubs & social work activities

• Animal welfare societies

Healthcare and Personal Services

• Hospitals & rehabilitation facilities

• Insurance consultancy

• Beauty salons

• Agriculture & soil consultancy

Understanding the permitted activities under each DED license allows you to choose the most suitable option for your business startup in Dubai and its legal establishment.

Eligible Candidates for A DED License in Dubai 

A DED license in Dubai is open to a wide range of applicants, from solo entrepreneurs to established companies. This inclusivity is one of the key reasons the emirate attracts global investment. Here is a list of candidates who are eligible for a DED license in Dubai. 

• Professionals: Individuals offering professional services such as legal services, consultancy, healthcare, etc.

• Entrepreneurs: Individuals who want to establish a business in Dubai. This can be both locals and foreigners in Dubai. 

• Startups: Businesses that are newly established who aim to formalise their operations and enter the Dubai market. 

• Companies: Both local and foreign companies that want to operate within the mainland of Dubai and the general UAE market. 

• Investors: Individuals or entities investing in businesses within Dubai and looking to obtain the necessary permits and licenses for their operations

• SMEs (Small and Medium-sized Enterprises): Small and medium-sized businesses that aim to establish a presence in Dubai and cater to local or regional markets.

How to Obtain a DED License in Dubai? Step-by-Step Process

Obtaining a DED license in Dubai can be streamlined into a simple and efficient process with the following steps: 

1. Choose Your Business Activity and Legal Structure

Start by identifying the type of business activity you want to conduct. This will help narrow down the most suitable type of DED license. Then you will have to decide the legal structure, whether you are opting for a sole proprietorship, a limited liability company (LLC), or a branch of a foreign company.

2. Reserve Your Trade Name

Choose a unique and suitable name for your business that complies with the DED naming regulations. You can reserve your chosen trade name online through the DED website.

3. Apply for Initial Approval

Next, submit the initial application electronically on the DED website. This requires details about the business activity, proposed trade name, and legal structure. After the application is approved, you will receive an Initial Approval Certificate. 

4. Secure a Physical Office Space

Then, lease a commercial space in Dubai and register your tenancy contract with Ejari, the rental tenancy regulatory system. You’ll need a verified copy of this contract to include with your license application.

5. Gather Required Documents

The documents required to obtain a DED license in Dubai can vary slightly depending on the type of business industry and activities conducted. Here is a general list of documents that you will have to compile and submit to process the license approval. 

Documents required for DED License in Dubai

• Emirates ID of all partners (if applicable)

• Passport and visa copies of all partners (if applicable)

• Valid trade name certificate

• Original initial approval certificate

• Memorandum of Association (MoA) (for companies like LLCs, One Person Companies)

• Local service agent agreement (if you appoint a UAE national representative)

• Approvals from relevant government bodies (if your business requires specific permits)

• Tenancy contract attested by RERA Dubai and approved by Dubai municipality 

• Completed DED license application form

6. Finalise Legal Agreements (if applicable)

If your chosen business activity or legal structure requires a Memorandum of Association (MoA) outlining ownership and governance, you will have to get it drafted by a legal professional. If you have appointed a local service agent for sponsorship purposes, you will have to finalise the service agreement as well. 

7. Obtain Additional Approvals (if necessary) 

Depending on the chosen industry of business, you may sometimes need special permits from specified government bodies. Ensure you identify such requirements and obtain the necessary approvals before proceeding with the application process. 

8. Pay License Fees

Once all the documents are ready and in order, you will have to pay the DED license fee depending on the chosen DED license type and business activity.

9. Collect Your DED License

After successfully completing the process and settling the fees, you will receive an official DED License, giving you the legal authorisation to operate your business in Dubai. 

DED License Cost in Dubai

The cost of a DED license in Dubai varies based on many factors. They include the type of business activity, size of the business, location, and the number of partners or shareholders involved. 

There can also be additional costs involved in getting a DED license. This mostly comes in the form of required approvals, sponsorship fees for foreign entrepreneurs, and other specific trade name reservations. Besides this, the DED license cost can be influenced by the fees associated with initial registration, annual renewals, and potential legal consulting services. 

In general, the cost of a DED license in Dubai can range anywhere from around AED 15,000 to AED 50,000 after including all other costs. 

Simplify Your Business Setup in Dubai with TEC

Getting a DED license in Dubai is an essential step for starting your mainland business, but navigating the process can be complex without proper support. This is where The Executive Centre can be of help. 

As one of the leading providers of flexible workspace solutions in the world, we make sure all our services cater to the evolving needs of modern business. Our professional business setup services help businesses streamline all the processes associated with getting a DED license in Dubai. 

With professionals handling all the legal formalities and paperwork, businesses can enjoy the freedom of focusing on areas of growth and keep pace with today’s competitive markets. 

For more details get in touch with us at +971 4 526 4777. 

Key Takeaways 

• A DED licence lets your business operate confidently and legally in Dubai Mainland.

• Choose from Commercial, Professional, Industrial, or Tourism licences suited to your activities.

• Available to entrepreneurs, professionals, startups, SMEs, investors, and established companies.

• The process involves selecting activities, reserving a name, obtaining approvals, and finalising agreements.

• Required documents include trade name certificate, tenancy contract, Memorandum of Association, and IDs.

• Fees, ranging from AED 15,000–50,000, represent an investment in credibility and market access.

• A DED licence provides growth opportunities, operational flexibility, and eligibility for 100% foreign ownership.