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Advertising company in Dubai: licence and 6 activities

Advertising company in Dubai: a licence with the 6 activities of the Advertising group — agency, consultancy, design, merchandising and promotional gifts.

Marina Ramirez Lorca
by Marina Ramirez Lorca Founder and Managing Director of LorcaBase

Published on
5 min read

Advertising is one of the few sectors where Dubai is both the client and the shop window: brands from half the world buy their campaigns for the region here, and the city itself — billboards, screens, events — is one continuous advertising medium. For the professional in the sector who wants to set up their company, the official list does not offer a generic “advertising” sheet, but a complete group that separates the trades: the agency, the consultant, the designer, the merchandiser and the media supplier.

The group is Media & Marketing / Advertising in the DMCC activity list, with six activities — five under a Service licence and one under a Trading licence —, all admitting any type of space and with no territorial restriction. This guide breaks them down one by one, points out the condition one of them carries in writing and closes with taxation and the steps.

The activity group: general map

CodeActivityLicence type
7430-04Advertising AgencyService
7430-01Advertising Researches & ConsultanciesService
2222-04Design & Artwork ServicesService
5110-08Merchandising servicesService
7430-03Promotional Gifts PreparingService
5139-08Advertising Requisites TradingTrading

The way to read the group is through its licence type: five sheets sell services — creativity, strategy, execution — and one sells product — the physical media of advertising. The usual approach is to combine in the same structure the sheets that describe the real business: the agency with the consultancy, the gift personaliser with the media seller.

The activities by families

Strategy and media

The Advertising Agency (7430-04) is the central sheet of the group: presenting the client’s products and services to the public by creating and placing advertising in the various media — magazines, press and periodicals, outdoor advertising on billboards, panels and car and bus livery, radio and television, internet and mobile telephony. It is accompanied by Advertising Researches & Consultancies (7430-01): advising advertising organisations on creating campaigns and placing them in the media to steer consumer behaviour, plus the research methodologies that improve the effectiveness of the advert — with a condition written into the sheet itself: field questionnaires require the prior approval of the competent authority, the same criterion that governs other consultancies on the list.

Creativity and production

Design & Artwork Services (2222-04) covers design and artwork for printing and publishing: books, magazine covers, stamps, greeting cards and brochures, from traditional to modern techniques. And Promotional Gifts Preparing (7430-03) covers the promotional gift workshop: engraving and printing names, drawings, photos and brands on pens, watches, stationery and similar items.

Point of sale and media

Merchandising services (5110-08) covers the display and presentation of products in supermarkets and shops to maximise sales — including promotional wrapping with gifts, images or cards. And Advertising Requisites Trading (5139-08) — the group’s only trading sheet — covers the resale of advertising media for indoor and outdoor use: panels, electric and non-electric signs, and promotional gifts.

Taxes on the advertising company

The framework is that of any services company — with a trading leg if you add the Trading sheet. On VAT, services and sales to local clients are taxed at 5% and supplying clients outside the country can qualify for the 0% rate under the conditions of the regulations — the natural case of the agency producing regional campaigns for international advertisers. VAT registration is mandatory once you exceed AED 375,000 of annual taxable turnover. On profits, Corporate Tax at 9% above AED 375,000. For a structure that mixes agency fees, production and media inventory, the accounting that classifies each flow from the first invoice avoids the problem where it usually starts. And if your business is digital native — SEO, social media, performance —, the digital marketing agency route in a free zone has its own guide: digital marketing company in Dubai.

Steps to set up the company

  1. Activities and scope: choose from the group the sheets that describe your real business — agency, consultancy, design, merchandising, gifts, media — and combine them on the same licence.
  2. Structure: a company in the free zone with the activities incorporated — Service, plus the Trading one if you sell product.
  3. File: shareholders’ KYC and a description of the model — clients, media and, if there is field research, the prior approval circuit.
  4. Incorporation and space — from flexi desk to studio or office, depending on the team.
  5. Visas for the founder and the creative and sales team.
  6. VAT and accounting from the start, with the 5%/0% classification defined before the first invoice.

Conclusion

The Advertising group is an agency org chart turned into an official list: the account, the strategy, the studio, the point of sale and the supplier, each with its own sheet, code and licence type — and no territorial restriction for any of them. Setting up the company means mapping your real business onto that org chart: the services sheets for what you create and advise on, the trading one for what you sell, and the prior approval in your pocket before taking the survey out onto the street. In the region’s advertising capital, the rest — clients, media and shop window — is already waiting.

References

Sources and references

References used to contextualise this page and its main data points.

DMCC — Dubai Multi Commodities Centre (portal oficial)

https://dmcc.ae/

Federal Tax Authority: VAT

https://tax.gov.ae/en/taxes/vat.aspx

Federal Decree-Law No. 47 of 2022 on Corporate Tax

https://mof.gov.ae/wp-content/uploads/2022/12/Federal-Decree-Law-No.-47-of-2022-EN.pdf

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FAQ

Frequently asked questions

Which activities does the Advertising group include?
Six sheets from the Media & Marketing / Advertising group: Advertising Agency (7430-04), Advertising Researches & Consultancies (7430-01), Design & Artwork Services (2222-04), Merchandising services (5110-08), Promotional Gifts Preparing (7430-03) and Advertising Requisites Trading (5139-08). Five carry a Service licence and one — the sale of advertising media — a Trading licence; all admit any type of space and have no territorial restriction.
What is the difference between the agency and advertising consultancy?
The agency (7430-04) creates and places the client's advertising in the media — press, outdoor, radio and television, internet and mobile. The consultancy (7430-01) advises advertising organisations on creating campaigns and placing them, and applies research methodologies to improve the effectiveness of the advert. One executes; the other advises and researches — and many structures combine both sheets.
Can I run field questionnaires for advertising research?
With prior approval: the Advertising Researches & Consultancies sheet establishes that these firms may not carry out field questionnaires without first obtaining the approval of the competent authority. Analysis and advice are unrestricted; structured fieldwork is authorised before it is carried out.
Can I sell billboards, signs and promotional gifts?
Yes, with the Advertising Requisites Trading sheet (5139-08), the only Trading-licence one in the group: it covers the resale of indoor and outdoor advertising media — panels, electric and non-electric signs — and promotional gifts. If your business is personalising them — engraving or printing names, brands and photos on pens, watches or stationery —, the sheet is Promotional Gifts Preparing (7430-03), a services one.
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