Before starting a business in Dubai mainland, getting an appropriate license is mandatory for businesses. There are three types of business licenses provided by the government of Dubai. Commercial license (for trading activities) and industrial license (for manufacturing activities) are generally for companies. Apart from that, Dubai also allows professionals to start a business here through a professional license.
A professional license is different from other types of licenses. The holders of a professional license can only do business in selective types of industries. These professionals are not required to take the services of local sponsors. Instead, they will hire a local service agent to assist their business.
What is a Professional License?
This type of license is given to individual entrepreneurs who provide professional license activities i.e. services of any kind. These can be business service providers, designers, artists, etc. However, the enterprise needs to be owned by a single person to obtain a professional license in Dubai. If the ownership rests with more than one person, then the organization will be considered a civil corporation.
Pros of the License over other Types
The professional license is the only kind that allows expatriates to have 100% ownership of an organization in the Emirates. However, there is one condition; you need to have an Emirati citizen as your service agent also known as Wakeel e Khidmat. This agent will not have any direct interference in the business. His role would be to offer assistance in obtaining a license and handling other legal activities. The agent will, however, not be liable for any of the organization’s debts.
Professional License Activities
Every individual who plans to run a commercial or business activity in Dubai is required to have a license for the following. The Department of Economic Development (DED) in Dubai has put up an administrative system that separates various sectors into categories of licensing, which provides a better opportunity at constructive and regulatory facilities. Hence, to set up a company in Dubai, you need to choose the right license for your type of business. A Professional company set up in Dubai requires a professional license. The term professional refers to any individual or company with trained skills.
Following is the list of individuals who are required to possess a professional license in Dubai:
- Accountants, Auditors and Financial Advisors
- Advertising professionals and Entertainment Artists
- Architectural Consultants
- Teachers and Educational Professors
- Business Consultants
- Lawyers and Legal Advisors
- Medical Representatives
- Carpentry and Artisan Activities
- Technical Services
- Consultancy Services
- Printing and Publishing
- Internet and Web Desing Services
- Beauty Salons
- Accounting and Auditing Companies
- Information Technology Services
- Management Consultancy
- Health and Medical Services
This list only describes the common professional activities which require a professional license in Dubai. If you are willing to see the full list of activities that require a professional license, it can be picked up from the website or office of the Department of Economic Development (DED). Although, the best option is to consult a business setup company or a business consultant in Dubai to get all the information that you need to accurately decide which business license will best suit your nature of business.
Business activities under Professional license
- Medical services
- Beauty salons
- Printing & publishing
- Document clearing
- Computer graphic design
- Security services
- Other noncommercial activities
100% Ownership for a Professional Company
A professional company set up in Dubai requires a professional license. Furthermore, the biggest advantage of possessing a professional license in Dubai is 100% ownership of the company. Besides this, a professional license offers a lot of other perks to the license holder as well. In the case of trading companies, the owner requires to partner with a UAE national and is bound to offer a share of 51% or more to the partner. Whereas, this is not the case with professional companies. Professional companies offer 100% ownership with an agreement with a local service agent.
Advantages & Benefits of a Professional License
- 100% foreign ownership
- Wide range of activities to choose from
- Flexible market
- Wide range of client to engage with
- No additional income tax or corporate taxes on your profit
- Renewal of professional license is done at an affordable cost
- Protected business engagements with the Department of Economic Development
- Wide range of choices for choosing the type of company you want to establish
How to Get a Professional License?
Paperwork is the most initial and important thing for getting a professional license in Dubai. Determining and preparing the right paperwork before the process begins could prove to time-saving. The amount of paperwork required to register for a professional license depends on the nature of the business.
However, we can list some of the common paperwork that is required for licensing. Which are as follows:
- Application form
- Passport copy for a tourist visa
- UID number
- Jinsiyya or Muwatana copy of the local partner
- NOC in case of sponsor for an expat
- Additional approval listed by the DED
- Approvals of the RTA and municipality (if applicable)
2. Department of Economic Development
A professional license in Dubai is issued to an individual or company by the Department of Economic Development (DED). Therefore, the process of obtaining a professional license in Dubai required daily dealing with the DED. Getting a professional in Dubai is rather an easy task, however, it requires an organized procedure to be followed. The DED requires a BR1 form, name registration certificate, EJARI registration certificate, and a tenancy contract to be submitted. The best option out of all would be to consult a professional or a business consultant to sort out the paperwork with the Department of Economic Development. As consulting an expert can speed up the process for you and proves to be more effective on the cost.
Documents required for Professional license
- Passport copies of owners and partners
- Copy of (visit, transit or tourist) visa of foreign partners
- UID number of shareholder if he/she is on visit visa. In case of employment visa, an NOC (no objection certificate) from sponsors of foreign partners
- Naturalization book’s (Jinsiya) copy of local partner
- Initial approval from relevant authorities (DED, DM, RTA and others)
- Ejari registration
- Rental contract
- Name reservation certificate
How much Professional License Cost
The cost for a professional license comes out to be approximately AED 10310.
The total cost of acquiring a professional license depends on different types of the fee required to be paid by a license holder.
- Professional license fee
- Trade name fees
- Service agent fee
- Market fee (according to tenancy amount)
- Security deposit (different for individual license holder and civil company)
Renewal of Professional License
Once your license expires, you can get it renewed by the authorities. You might also need certification as evidence that you are trained in the particular skill that you plan on giving to your clients.
As mentioned before, there are tons of advantages of getting a professional license. So if you are looking to kick start your career as an entrepreneur, this is the right time to register.
Also if you are looking for assistance with registering your professional license activities, feel free to contact us and we’ll be at your service!
What We Can Do
We manage the whole process of establishing your professional firms. It includes strategic inputs and consolidates business plan:
- Getting approvals and permissions from concern departments
- Preparing Partnership agreements and MOA
- Identify a trusted and qualified local service agent
- Assistance in opening the bank accounts
- Assisting to find suitable office premises
- Handle other documentation formalities