Benefits of Setting Up a DED Company - Creative Zone

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Benefits of Setting Up a DED Company

The Department of Economic Development (DED) is the apex body responsible for new company setups in Mainland Dubai. It is the license issuing authority and regulates all the legal activities related to establishing a business in Dubai. Business owners will need to register with DED Dubai only if they choose to set up their company in Mainland Dubai. 

The DED License is also known as a Mainland license, LLC, or Onshore license. It has become increasingly popular ever since the traditional regulations have been lowered, allowing 100% ownership by the ex-pats. There are a lot of benefits of setting up a DED company. Let us explore.

  1. Ease of Business Setup:
  • The DED encourages and eases the process of setting up a new business in Mainland Dubai.
  • The administrative and legal process for registering a DED company is easy and hassle-free.
  • The DED imposes fewer restrictions and offers more opportunities for business setup and growth.
  • The flexible regulatory procedures, easy approval processes, affordable options, and quick timelines have made the DED License a preferred choice for many investors. 
  1. Multiple Licenses
  • You can apply for as many licenses as you need, provided you have the office space. 
  • There are no restrictions on the scope of the business in the case of commercial and professional licenses.
  • No Limitation on Visas: There is no limitation on the number of Visas you can obtain on a DED license. However, the eligibility to obtain Visas depends on office space. The bigger the office space, the more the number of Visas you can get. The equation is one Visa per 100 square feet of office space.
  1. Choice of Location for Office Premises:
  • A DED company can choose its office location anywhere in Dubai or have an office anywhere in the UAE. This choice allows the company to trade with the local market and open up multiple branches to build a strong presence in the UAE. 
  1. Flexibility in Business Activities:
  • The DED covers a wide range of business activities in its list. But if a particular activity isn’t listed already, then the DED authorities can still work to get the new activities added to the list so that their clients are covered.
  • A DED company has no limitation of business activities, and it can open up to the vast UAE economy. 
  • A DED company has a better scope of moving forward with diversified ventures and undertaking various business activities.
  • Currently, a DED company needs to have a local partner/sponsor with 51% shareholding. But soon, the DED is set to change this law to provide 100% foreign ownership to specific business activities. 
  • For profit-sharing between the foreign investor and the local sponsor, the DED offers a flexible legal arrangement. In this option, the investor pays the sponsor a fixed annual fee, which allows him to retain 100% control of his business. The local sponsor (sleeping partner) will not have any involvement in business activities or profit-sharing. 
  1. Fewer Nationality Restrictions
  • There are fewer nationality restrictions in ownership and visas as compared to other jurisdictions. In other words, more foreign nationalities can hold business ownerships and Visas than other alternatives. 
  1. Greater Flexibility in Doing Business:
  • DED companies can trade with other mainland companies in Dubai or the UAE. 
  • They can do business anywhere in the UAE and outside the UAE. They are also allowed to do business inside any free zone in the UAE.
  • This flexibility is unavailable to free zone companies as they are restricted from operating their business within their respective free zone.
  • DED companies can also do business with local and government offices. They can opt for tender bids that would allow them to trade or provide services through governmental contracts.
  1. No Minimum Capital Requirement: 
  • There are limited restrictions and no minimum capital requirement to form a DED Mainland Company. 
  1. Easy Recruitment Process:
  • There are no limitations on recruitment. 
  • The recruitment process is hassle-free with no limit on employment visas. 
  1. Office Space Options:
  • Office spaces are available with affordable and flexible rental and lease plans for setting up your office anywhere. 
  1. Possibility of Business Expansion:
  • A DED company has the flexibility to expand its business in terms of branches. If one of the goals of setting up a business in Dubai is opening branches, then a DED license is necessary. 
  1. Other Benefits:
  • No corporate or personal tax
  • Low import duty
  • No annual audits
  • No currency restrictions 
  • 100% repatriation of capital and profits
  • Easy procedures to set up a corporate bank account
  • Enjoy better reputation and status locally or internationally

Conclusion:

Setting up a DED company in Dubai mainland means an excellent opportunity for profiting, but it also requires specific conditions, regulations, and rules to be fulfilled. Therefore, it is always best to seek professional help from business setup experts to avoid wasting time and effort. 

If you are dreaming of having your own DED company, this could be your ideal time! Contact Creative Zone or call us at 800 LICENSE (5423673) to consult one of our business setup advisors today!


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