Fri. Aug 12th, 2022
Everything You Want To Be Aware Of About DED (Department Of Economic Development)

DED Dubai is an entity that allows businesses to operate in the UAE. The purpose of a DED is to provide a favorable business environment for companies that want to grow and diversify. With the DED, a company can own 100% of certain business activities. In many cases, this will allow a company to open the UAE economy and expand its business. The DED allows 100% foreign ownership of the particular business activity.

Business registration

A company registered with the DED in the UAE enjoys several benefits. This license allows a company to do business in the entire country, not just in free zones. A DED company is not restricted from operating within a free zone, so it has no limitations on where and how it can operate. The DED also grants special provisions for the first year of a company’s operation.

Profit-sharing arrangement

The Department of Economic Development (DED) has recently signed a Memorandum of Understanding (MoU) with Dubai World Trade Centre (DWTC). Senior executives from both companies attended the signing ceremony. The MoU establishes a profit-sharing arrangement for both entities. The new MOU aims to improve the quality of services in the UAE and the ease of business here.

Formalities

The first step in establishing your company in the UAE is to obtain a DED license. The license varies depending on the type of business you want to conduct. The initial fees for this licensed range from 2,050 Dhs to 30,000 AED, depending on the type of business and the region you choose. You can use your Dubai ID, UAE Pass, or name and address from your economy account to log into the DED website. These credentials will only be valid for three months. Then, you will have to pay a fee for attestation.

Guide to applying for a DED

A DED (Dubai Economic Development) license gives the foreign investor full control of the business. He pays a fixed annual fee to his sponsor and retains 100% ownership of the business. This way, the local sponsor will not be involved in business activities or profit-sharing. The benefits of a DED license are numerous. There are few nationality restrictions, which makes the license advantageous to foreign investors. Additionally, a DED company can do business in any free zone in the UAE.

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