Thinking about starting a business in Dubai? You’re in good company! The city is a top spot for UK entrepreneurs because of its stable economy and friendly business environment. But if you’re new to the process, it can feel like a lot to take in at once.
Don’t worry, we’re here to help you navigate the journey, starting with the most important piece of the puzzle: the DED Activity List. Think of this as your personal roadmap to a smooth and successful business launch.
What is the DED Activity List, Really?
First things first: the DED. This is the government body that handles business licenses in Dubai, now part of the Department of Economy and Tourism. Their DED Activity List is essentially an official menu of all the business types you’re allowed to start.
Picking the right item from this menu is the most important step you’ll take, as it determines your license type and any extra paperwork you might need.
You can explore this list on the DED’s official websites, which contain over 2,000 unique business activities. Choosing the wrong one could lead to legal headaches and unnecessary delays, so it’s vital to get it right from the beginning.
Professional vs. Commercial: How to Choose Your Path
For many UK entrepreneurs, the choice comes down to two main license types: a Professional License or a Commercial License. The best one for you depends entirely on what your business does.
Are you a consultant, an accountant, or a programmer? If your business is about services—what you know and can do
you’ll likely need a Professional License. The great news? You can own 100% of your company, meaning no local partner is required to hold shares.
While you’ll need a Local Service Agent to handle legal paperwork, they have no control over your business or its profits.
On the other hand, if you’re a trader selling physical goods like electronics or clothing you’ll need a Commercial License.
While this used to require a local partner, a major law change in 2021 now allows 100% foreign ownership for many commercial activities, a fantastic benefit for UK investors.
Here’s a quick comparison to help you choose:
| Criteria | Professional License | Commercial License |
| Business Activities | Services based on skills (e.g., consultancy, IT, accounting). | Buying, selling, or trading goods (e.g., retail, import/export). |
| Ownership | 100% foreign ownership is allowed. | 100% foreign ownership is now allowed for many activities. |
| Local Partner | Requires a Local Service Agent who handles paperwork. | For many activities, no local partner is needed. |
| Liability | Unlimited liability, unless you form an LLC. | Limited liability is standard. |
The Choice: Mainland or Free Zone?
Next up: where to set up shop. You have two main options: Mainland or a Free Zone.
Think of it this way: a Mainland company is for total freedom. You can do business with anyone, anywhere in the UAE, including local customers and government bodies.
It’s the perfect choice if you want to sell to the entire country.
A Free Zone company is a bit different. It’s perfect if you plan to do business mainly within that zone or with international clients. Free zones can be quicker and more cost-effective to set up, but they limit your access to the broader UAE market unless you work through a local agent.
Your Simple Roadmap to a Dubai License
Ready to get started? Here’s a simple, step-by-step roadmap to follow:
- Pick Your Activity: What will your business do? Find the right match on the DED list.
- Choose Your Home Base: Decide if a mainland or free zone company is better for your goals.
- Name Your Business: Choose a unique name and get it approved by the DED.
- Get Initial Approval: The DED gives you a green light to move forward with your plan.
- Find a Place to Work: Get a physical office and the required paperwork.
- Submit Everything: Hand in all your documents to get your license.
- Open a Bank Account: A crucial step for managing your business finances.
- Apply for Visas: Get the visas for yourself and your team.
You should also be aware of the UK-UAE double taxation treaty, which prevents individuals and businesses from being taxed on the same income in both countries.
A common mistake is to try and do everything yourself. This can lead to delays, legal errors, and choosing a structure that limits long-term growth.
We offer business setup and consulting services in Dubai and the UAE, providing personalized guidance to help you navigate this process.
With the right support, your journey to launching a successful business can be simple, quick, and stress-free. It’s all about having the right partner to help you turn your business dream into a reality.
