Understanding Business Setup for Advertising sector in Dubai mainland

The advertising sector is one of the common fields for business setup in the UAE. The growing economy and competitive market have made advertisements and marketing an essential part of developing and maintaining market position for different brands, multinational companies, and SMEs’ in the region. The government seeks to encourage company setup in Dubai for activities related to the advertising sector, in order to promote growth for other organizations operating in the UAE.

Also Read: 7 Investment Opportunities in Dubai that You Should Consider

Types of Activities for Commercial License Allowed by the DED under the Advertising Sector

Activity Name	Activity Description	License Type
Advertising Requisites Trading	Includes the following: ·        reselling of indoor and outdoor advertising necessities such as boards, electric and non-electric signs, also any promotional gifts or similar products.	Commercial
Advertising Agency	Includes the following: ·        introducing the products and services of the clients to the public through creating and placing advertisements in different media, such as, newspapers, published magazines, periodicals, outdoor advertising in panels, billboards, and car and bus carding. Also advertising through radio and television, the internet and mobile phones.	Commercial
Distribution of Advertising Materials & Samples	Includes the following: ·        distribution of promotional materials such as catalogs, pamphlets, posters and gifts, and distributing samples of the products that the company produces for promotion.	Commercial
Newspaper Advertisements	Includes the following: ·        creating and placing advertisements in different published newspapers, magazines, periodicals.	Commercial
Billboards Advertising	Includes the following: ·        creating and placing advertisements in the outdoor advertising structure found in high-traffic areas such as alongside busy roads and on the roof of buildings, aimed at attracting passing pedestrians and drivers.	Commercial
Advertising Services via Websites	Includes the following: ·        advertising services for marketing and promoting different products through their accounts in social media or via the Internet.	Commercial

Types of Activities for Professional License Allowed by the DED under the Advertising Sector

Activity Name	Activity Description	License Type
Press Materials Editing & Distributing	Includes the following: ·        press interviews and reports, work out reports, research, studies and archive materials needed by newspapers and magazines and distribute said materials to said press firms according to their needs.	Professional
Aerial Advertising Services	Includes the following: ·        Any artworks, messages, pictures, that are designed on banners flown through airplane on short trips at routes and altitudes permitted by the concerned authorities in charge of air traffic. All airplanes should meet the safety requirements set by the authorities. A firm can only practice this activity after acquiring the approvals from the Civil Aviation Department and General Aviation Authorities.	Professional
Advertisement Designing & Producing	Includes the following: ·        designing, creating commercial advertising to display in a printed medium such as a newspaper, magazine, periodicals and also placing in radio, television, the Internet and other media	Professional
Promotional Gifts Preparing	Includes the following: ·        engraving and printing of names, drawings or stick photos and trademarks on promotional gifts, such as pens, watches, stationery, etc.	Professional
Calligraphers & Painters	Includes the following: ·        activities related to the art of writing through hand lettering to produce different forms of artistic writings such as certificates, invitations, envelopes, business branding, and logos, it involves different paintings using different materials on different surfaces including graffiti.	Professional

Types of Activities for Industrial License Allowed by the DED under the Advertising Sector

Activity Name	Activity Description	License Type
Neon Signs Manufacturing	Includes the following: ·        fabricating neon tube signs by the craft of bending plastic and glass tubing into shapes and is filled with neon gas.	Industrial

Difference between Commercial, Professional, and Industrial License Issued by the Dubai Economic Department (DED)

Purpose of the License

• Commercial – A commercial license is one of the most common forms of license business owners acquire from the Dubai Economic Department (DED). This license allows the license holder to operate trading and commercial businesses in the region such as Advertising Requisites Trading and Billboards Advertising.
• Professional – A professional license is offered to applicants for specific activities under a sector. These applicants shall be qualified practitioners of that particular field. This license is provided for activities such as Calligraphers & Painters and Aerial Advertising Services.
• Industrial – An industrial license is offered for companies that have business activities that involve production, industrial and manufacturing activities within the UAE. The license allows activities such as Neon Signs Manufacturing.

Ownership of the Business

• Commercial – A commercial license will require a local sponsor for the registration of a limited liability company (LLC). The local sponsor shall hold 51% of the shares in the business.
• Professional – A professional license allows for 100% foreign ownership, provided with the assistance of a local service agent. However, the local service agent may not have a direct influence on the business and will be paid annually for the service.
• Industrial – An industrial license will require a local sponsor for the registration of a limited liability company (LLC). The local sponsor shall hold 51% of the shares in the business.

Requirements of an office space

• Commercial – A commercial license will require a registered office space; however, this requirement may not be needed for a duration of one year from the date of license issuance.
• Professional – A professional license will require a registered office space.
• Industrial – An industrial license may require the license holder to have an office and a registered warehouse in the UAE. However, the license holder may opt to have the office within the warehouse.

Instant License Facility

• Commercial – The instant license facility is offered for commercial licenses
• Professional – The instant license facility is not offered for professional licenses
• Industrial – The instant license facility is not offered for industrial licenses

Business Setup Consultants in Dubai

Setting up businesses in the advertising sector can be a challenging task especially if you do not know the process of business setup in Dubai mainland. Far Consulting Middle East has consultants specialized in the business setup that can assist in the process of starting a business in the UAE.