How to Obtain a Technical Service License in Dubai

by Zaara 22, Dec 2021

Dubai, a cosmopolitan city, is throbbing with the active presence of locals and an ex-pat population that opens lucrative business opportunities like technical services. By getting a technical service license in Dubai, you can cater to a highly diverse population ad turn your company into profits.

You can open your technical service business in Dubai Mainland or any Dubai Free Zones. Here, we will discuss setting up your business in Dubai Mainland.

You must register your business under a Limited Liability Company, and the Department of Economic Development acts as a regulatory authority for your business setup procedures. The local sponsor will own 51% of the shares in the business, while you will hold the remaining percentage.

Benefits of Opening a Technical Service Business in Dubai

Below mentioned are the benefits of opening a technical service business in Dubai;

  • No personal or corporate tax is available.
  • With the technical service license, you can apply for government projects.
  • A local mainland license does not require any investment.
  • You can carry out your business in Dubai's local market.
  • No limit on getting a visa.
  • Free to select office space in any part of Dubai.
  • No currency restrictions.
  • Hassle-free legal procedure.
  • No audit requirement.

Activities Permitted under Technical Service License in Dubai

The technical services license in Dubai allows for a wide range of commercial operations. These are some examples:

  • Air conditioning, ventilation, and air filtration services.
  • Carpentry and Flooring.
  • Concrete works.
  • Corporate cleaning services.
  • Electrical fitting and fixtures services.
  • False ceiling and light partition installation.
  • Floor and wall tiling works.
  • Installation and maintenance.
  • Insulation contracting.
  • Plaster and cladding works.
  • Plumbing and sanitary contracting.
  • Solar energy systems installation.
  • Technical services are contracting.

How to Obtain a Technical Service License in Dubai?

The steps to obtain your technical service license is simple. And with our experienced consultants at Commitbiz, we can make the procedure hassle-free. Right from business incorporation to office space, we cover it all.

The steps are as follows -

  • Choose a Business Activity

The Dubai DED has mentioned a list of more than 2,000 activities that come within the scope of every license. You will have to check the DED website to know how the DED defines your business activity under the technical service license, or you can also refer to the list provided above.

  • Determine the Legal Structure

You must set up an LLC for your business setup in Dubai Mainland. LLC is the most popular form of corporate structure in the UAE. Hence we suggest opening an LLC for your business.

  • Reserve a Company Name

After identifying the business activity mentioned under the technical service license, you need to develop a firm name for your organization. You must follow the trade name guidelines issued by the UAE while naming your company. Avoid terms purely religious.

  • Apply for an Initial Approval

The initial approval certificate proves that the DED has no objection to your proposed business formation in Dubai.

  • Drafting of LSA Agreement

The technical service license is a professional license, and you can start your business by appointing an LSA. Under this procedure, you must draft and submit an LSA agreement to the Economic Department. 

The drafting of documents must be handled professionally, or else the company formation process in Dubai will get delayed. Reputed business setup consultants like Commitbiz in Dubai are pioneers in drafting such documents, and you can hire their services to eliminate unnecessary delays.

Apply for Technical Service License in Dubai 

You must provide the following documents while making an application.

  • Completed application form
  • Passport copy of the proposed owner or owners
  • Two color passport-size photos
  • NOC from current employer (if applicable)
  • Memorandum of Association (MOA) - It must be noted that the MOA must be notarized in person at a Dubai public notary. This process usually takes around two hours.
  • Rent an Office Space

You must rent or lease office space in mainland Dubai per the DED regulations. The DED mandates that all businesses have a physical address in Dubai. Being a foreign business person, you are not permitted to own real estate properties in the UAE and must rent an office space. Sign a tenancy contract with the landlord to register it with the Ejari.

The DED will verify all the documents for final approval. You will need to submit a mandatory government fee under this step. Upon approval, the DED will issue the technical service license.

How can we help you?

Obtaining a technical services license in Dubai will allow foreign investors access to the plethora of business opportunities in the UAE. But, as a foreign investor, you will need to be made aware of the local rules and regulations, which may cause delays in issuing a license while dealing with the licensing authorities.
It is where we come into the picture. Our business setup consultants can help you out. Contact us today for more information.


Does the zero-currency restriction provided on setting up a free zone business in Dubai?

Yes, the zero-currency restriction is for a free zone company in Dubai.

Can the trade name in Dubai contain an abbreviation of our own name?

No, it must contain your full name.

Which authority’s approval do we require if the company set up is in Dubai mainland?

The authority is the Department of Economic Development, Dubai.

What is the technical service license cost in Dubai?

 The price roughly starts from AED 25,000.

Do we get tax exemptions in the free zones of Dubai?

Yes, financial incentives like tax exemptions are provided in a Dubai-free zone.