What is the difference between DED and Free Zone licenses in Dubai?

In Dubai, there are two main types of business licenses: Department of Economic Development (DED) licenses and Free Zone licenses. Here is a brief overview of the differences between the two:

DED License

A DED license allows a company to conduct business within the Dubai mainland. DED licenses are regulated by the Department of Economic Development and are suitable for companies that plan to do business with the local market.

Free Zone License

A Free Zone license allows a company to operate within one of Dubai’s designated free trade zones. These zones offer tax exemptions, 100% foreign ownership, and a range of other benefits to companies operating within them. Free Zone licenses are regulated by the individual free zones and are suitable for companies that plan to trade internationally.

Key Takeaway

So, when deciding between a DED license and a Free Zone license, it’s important to consider factors such as your business model, target market, and future growth plans. Both types of licenses have their own advantages and disadvantages, so it’s important to choose the one that best fits your business needs. Thus, for companies that are looking for a concise and comprehensive advise on how to choose the type of business, it is vital to partner with the best business setup consultant in UAE. This way, investors will gain an army of knowledgable professionals that will guide you in your company formation journey. If you have any questions, send us a live chat message now or email us at info@skwergroup.com.