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.

Table of Contents

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
Consultancy
Artisanship
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
Cost-effective
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?

1. Paperwork

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)
Others

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