In recent years, Dubai has developed into an international business hub that has attracted investors and entrepreneurs from around the world. The Department of Economic Development (DED), also known as the Department of Economy & Tourism is the governmental body responsible for overseeing and encouraging economic activity within the emirate. However, in case you are planning to establish a mainland business in Dubai, it is imperative that you learn about the function of the DED. This blog will look closer at the functioning of the DED, the licensing and legal requirements it has laid down, and the types of business activities that it regulates.
The Role of the Department of Economic Development in Business Setup
Mainland business setup in Dubai is overseen by the Department of Economic Development. It is the legal body for licensing, regulation, and oversight of trade practices and commercial enterprises. The chief aim of the DED is to provide the necessary conditions that would inspire people to invest, develop, innovate, and achieve long-term economic success.
The only way to establish a business in the Dubai mainland is to obtain a DED license to trade locally within the market and directly with the consumer. This is different from free zone licenses in Dubai.
Types of Licenses Issued by Department of Economic Development
The DED issues a number of licenses which can be divided as per the kind of business activities they permit. These licenses are broadly categorized into three main types:
Commercial License
This is the most frequently acquired trade license in Dubai among all the licenses provided by the DED. It is necessary for those organizations involved in the buying and selling of products, import and export, and other merchant-like operations. Whether you are going to open a boutique, an electronics store, or a trading company, a commercial license is of paramount importance.
Professional License
If you intend to engage in the production and distribution of services, you must possess a professional license. This license is particularly suitable for consultants, lawyers, accountants, educators, marketers, and anyone dealing with service provision.
Industrial License
This license is necessary for any company that is involved in manufacturing, processing, or industrial production. Any firm or company that manufactures products, assembles or fabricates products, or operates factories must have an industrial license.
Business Activities Permitted by the Department of Economic Development
The Department of Economic Development divides commercial activities into various sectors, to ensure that commercial activities conform to the economic vision of the emirate. Some of the key sectors include:
Trading: This includes fashion retail and wholesale, technological equipment and gadgets, food items, and construction materials among others.
Manufacturing: It basically involves factories that participate in the manufacturing and refining of commodities for sales and includes those in sectors like textile, machinery, or chemical industries.
Professional Services: Services such as consultancy, legal services, education and training, healthcare and insurance, marketing, and public relations fall under the service industry.
Real Estate: Business activities involved in property development and real estate agency and management need to obtain a DED license.
Tourism and Hospitality: The tourism sector has seen increased growth and new prospects are active for enterprises in the areas of travel agencies, hotel business, tourism, and event management in Dubai.
Regulatory Framework and Compliance
The DED provides licenses and enacts the standard through which various businesses are conducted within the city of Dubai. It entails the need to safeguard customer rights as well as sustain the emirate’s corporate governance standards by enforcing consumer laws, fair trade, and business integrity standards. The DED always reviews its regulations according to the current trends and technologies that exist in the international market to make Dubai a more competitive investment destination.
Mainland company formation in Dubai should be as per the regulatory frameworks set by the Department of Economic Development. Noncompliance with these laws is punishable by fines, penalties, or in the most severe cases, cancellation of the license to operate the business.
Conclusion
The Department of Economic Development is a central entity involved in shaping the economy and business landscape in Dubai. Consulting business setup consultants like InZone could provide important guidance to help you maneuver seamlessly through the dynamic business environment of Dubai. Whether you’re planning to start a trading business, professional service, or a manufacturing company, InZone has an adequate understanding of the regulations laid down by the Department of Economic Development (DED) and can provide all the assistance any entrepreneur needs to start and conduct business in this highly competitive market.
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