Professional license in Dubai, UAE
The Emirate of Dubai is very keen on attracting international investments in the area by enabling foreign individuals to set up their business operations in the United Arab Emirates.
Dubai is an excellent place to start a business as an entrepreneur or business leader who has the drive to sell goods and services outside borders. Dubai is an ideal location for any businessman to establish a company due to its favorable tax system. However, in order to start a business in Dubai, you must have a valid license. For various companies.
Dubai offers three different types of licenses.
- A commercial license is given to a business that engages in trade.
- An industrial license is given to a business that engages in manufacturing.
- Service providers, artisans, and/or craftsmen are granted a professional license.
A professional license is given to a person or a corporation to practice any career that relies on talent and intellectual ability, as previously described. However, if the owner of such a corporation is more than one individual, it is referred to as a civil company.
Activities allowed under professional license in Dubai
Individuals who wish to provide professional services in Dubai, such as consulting, auditing and accounting, design, tourism advice, study, and other professional services based on ability, talent, or experience, must first obtain a professional license from the DED.
As a holder of a professional license, you are legally permitted to work for or provide your services to any customer, client, or employer in the United Arab Emirates, and you are permitted to engage in activities that are consistent with your qualifications and area of expertise.
Professional services in Dubai necessitate talent, knowledge, analytical ability, and experience in order to complete tasks or projects independently while ensuring quality and adhering to Dubai government agencies’ and authorities’ requirements.
Government agencies in Dubai are responsible for managing industry standards by sector, enforcing legislation, ensuring health and safety, and ensuring that business is conducted only by registered professionals who follow the laws, regulations, and compliances set forth by the respective Ministry.
- Consultancy services
- Medical services
- Printing and publishing
- Beauty salons
- Computer graphic design service
- Repair services
- Security services
- Document clearing, etc
- Inventive engineering (i.e., The engineering design services include mechanical, manufacturing, electrical, HVAC, chemical, systems, civil, structural, architecture designing including simulation, analysis, rendering, testing, and support of the same)
- Services in Information Technology (i.e., Web designing, networking, cybersecurity, application development, server administration, Tech support; Data storage, management, processing, and analysis, Maintaining IT infrastructure, API, Information security, and Internet of Things)
Unlike industrial and commercial licenses, a professional license enables foreign investors to own 100 percent of the business, granting them the privileges of a sole proprietorship. To complete the judicial formalities, it is necessary to appoint a UAE national as a local service agent. Apart from charging a fixed annual fee for the service, the agent has no direct involvement in the business.
They will have no equity and will not be responsible for the company’s liabilities. To obtain a professional license, one must contact the Department of Economic Development (DED), which is responsible for all license-related activities in Dubai.
Procedure for obtaining a professional license
When applying for a professional license, the first and most important step is to provide a detailed overview of the activities carried out in one’s company. The next move is to hire a local service agent to handle all of the legal paperwork needed to obtain a professional license in Dubai.
Obtain initial approval from the DED following the appointment. Apart from that, you must reserve a business name (for which there is a fee) and then send all necessary documents to the DED for approval.
- Fill out the local service agreement form with the help of a local interpreter and get it notarized by a public notary.
- If the agreement is in Arabic, a legal translator seal is not needed.
- Make an agreement with the sponsor in the form of a Memorandum of Association (MOA).
- In the agreement, discuss the sponsor’s early fee.
- If you’re applying for a civil company license, you’ll need to fill out another registration form to get it attested.
- To sign the court agreement, all partners/owners must appear in front of the registrar.
- Obtain local consent for the tenancy contract.
- All forms must be submitted with attestation (one original copy each)
- Owner/partners’ passport copies and NOC for expatriate owner/partners (if any) should be sent to any DED branch.
- Make a payment and collect your license at the counter; a payment voucher will be given at the same time.
Cost of professional license in Dubai
The professional license in Dubai costs around AED 15,310 and includes the following:
- Professional license fees
- Service agent fees
- Trade name fees
- Market fees (depending upon the tenancy amount)
- Administrative service fees
- Government cultural fees
- Local fees, etc.
Documents required getting a professional license in Dubai
- Filled application form to get a professional license
- Copies of the passports of owners or partners
- Copy of local partner’s naturalization book (Jinsiya)
- A No-Objection Certificate (NOC) from sponsors for foreign partners if the ex-pat is already on an employment visa. If the shareholder is on a visit visa, then his/her UID number is required
- The foreign partners have to submit a copy of the visit, tourist or transit visa
- Initial approval from the relevant authorities, depending on the type of activity to be undertaken (e.g., the Municipality, RTA, National Media Council, etc.)
Documents Needed for Tenancy Contract Submission to Dubai Municipality
- A prescribed application form (BR1 form)
- The name reservation certificate
- Initial approval from the DED
- Rental contract
- Ejari registration
The cost of a professional license in Dubai will fluctuate over time. Various service charges are included in the overall cost, and they are as follows:
- License Fees
- Administrative service charge
- Agent fees
- Trade name fees
- Market fee based on tenancy
- Government cultural fees, etc