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Advantages of setting up a DED company.

The Department of Economic Development (DED) is top in the hierarchy responsible for new company formations in Mainland Dubai. It is the sole license issuing authority and overseeing all the legal activities related to establishing a company in Dubai. Those entrepreneurs intending to start a business will need to register with DED Dubai if they wish to setup a company in Mainland Dubai.

The DED License is known also as a Mainland license, LLC, or Onshore license and has become increasingly popular ever since the government decided to allow 100% ownership by the ex-pats. Let us explore some of the benefits of setting up a DED company.

Relative ease in setting up a Business:

The DED encourages new entrepreneurs by easing up the process of setting up a new business in Mainland Dubai. Fewer restrictions are imposed by the DED, thereby offering more opportunities for business setup and growth. The quick timelines, easy approval process, affordable choices, and the flexible regulatory procedures have made the DED license a preferred choice for many budding investors. The administrative and legal process involved registering a DED company is very easy and hassle-free.

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 Visa Limitation:

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.

More 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.

More Flexibility in Business Activities:

  • The DED covers an extensive range of business activities in its list. However, if a particular activity hasn’t been listed already, then the DED authorities can still work towards in getting new activities added to the list so that their clients are covered.
  • A DED company does not have any limitation of business activities, and is allowed to open up to the thriving UAE economy.
  • A DED company is in a better position to move forward through diversified ventures and undertaking of various business activities.
  • DED now allows 100% foreign ownership to specific business activities.
  • The DED offers a flexible legal arrangement for profit-sharing between the foreign investor and the local sponsor. Under this option, the investor will have to pay the sponsor a fixed annual fee, which allows him to retain 100% control of his business. The local sponsor (sleeping partner) will not be involved in business activities or profit-sharing.

Fewer Restrictions in Nationality:

Under DED, there are fewer nationality restrictions in ownership and visas as in comparison to other jurisdictions. In simple terms, more foreign nationalities are able to hold business ownerships and Visas than other alternatives.

Flexibility in Doing Business:

DED companies are allowed to trade with other mainland companies in Dubai or the UAE.

They are allowed to do business anywhere in the UAE and outside the UAE. They are also permitted to do business inside any free zone in the UAE.

This flexibility offered is unavailable to free zone companies as they are completely restricted from running their business within their respective free zone.

DED companies are also allowed to do business with local and government offices. They are eligible to opt for tender bids that would enable them to trade or render services through contracts from the government

Minimum Capital Requirement isn’t applicable:

There is no minimum capital requirement to form a DED Mainland Company. And the restrictions placed are limited.

Recruitment Process made easy:

The recruitment process comes with no limitations on employment visas.

Options for Office Space:

Office spaces are made available with very affordable and flexible rental and lease plans, allowing you to setup office anywhere

Expansion of your Business:

A company based in DED has the flexibility to expand its business through setting up of branches. A DED license is an absolute must if one of your business goals is to set up a branch in Dubai.

Conclusion:

A mainland DED company setup is an excellent opportunity for an entrepreneur to profit. But in order to do so, certain specific conditions, regulations and rules have to be met. Hence it is always better to see professional advice from a company formation specialist to avoid any pitfalls or wasting time and effort. Reach out to Profound or call us 800 DUBIZ (36247) to consult with one of our company formation specialists today!

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