Dubai is a perfect place to set up a business be it of any kind due to major benefits being received to the business owners. These benefits include the social and political stability in the country, the tax incentives, ease in intellectual property rights etc. But for setting up a business in Dubai one needs to obtain a license which will make the business legal in the eyes of Law.
Types of License
Basically there are three types of license prevailing In Dubai, these are,
- Commercial license,
- Industrial license,
- Professional license.
Commercial licenses are those which are issued to a company which is engaged in trading activities, an industrial license is issued to a company engaged under manufacturing or trading activates whereas, a professional license is issued to service providers.
- Professional license in Dubai is compulsory to obtain for the smooth running of the business. For the purpose of setting up a professional company in Dubai, 100% foreign ownership and sole proprietorship are permitted. Firms like these can engage themselves in artisan activities or consultancy.
- For the purpose of Business setup in Dubai related to professional activities, it is necessary to appoint a local agent or a Wakeel Khidmaat. Such person although will not be having any direct involvement in the business but will be paid a lump sum amount per year. Such local agent shall be assisting the business owner in getting a license, labour card or visa and such other necessary things.
- Businesses like trading and tourism are allowed forming an LLC or sole proprietorship with UAE national having 100% ownership. Although expat investors or business owners cannot take 100% ownership but in Professional licenses, 100% ownership is permitted.
- Wherein, the business owner is involved in more than one professional activity, the company will be referred to as a Dubai Civil company.
Types of Activities Under Professional License
The professional Licenses in Dubai includes the following above mentioned activities,
- - artisan activities,
- - carpentry,
- - technical services,
- - consultancy services,
- - printing,
- - publishing,
- - internet and web design services,
- - medical services,
- - beauty salons.
Steps to Registering a Professional Service Company
- For the purpose of registering a professional service company in Dubai, the very first step is to make a clear description of those activities which the owner required to undertake in the said business.
- The second step is to appoint a local service agent, such agent will be helping with the required legal formalities which are required to be undertaken in such a business.
- After the appointment of such agent, the next step is reserving a name for the said business, wherein the owner will be required to pay a fee for the same, and also will be required to submit the necessary documents required for the approval of DED.
Documents Required for Getting a Professional License.
The following are the important documents required in getting or registering a professional license for a company, these are –
- A prescribed form
- Passport copies of partners
- Copy of Local partner’s naturalization book (Jinsiyya).
- NOC letter from sponsors for expatriate partners.
- A copy of the visit of foreign partners; tourist or transit visa.
- Initial approval of various relevant authorities in the relation of various activities.
Documents Required for Getting Approval For Tenancy Contract.
Apart from these, the business owners are also required to get a tenancy contract from the municipality, these documents includes,
- (BR1) form,
- The name reservation Certificate
- Initial approval form DED
- Tenancy contract
- EJARI Registration Certificate
Apart from these initial documents a partner in a civil professional license company is required to pay AES 20,000 as a security deposit and a person who is applying for a professional license without a partner has to pay AED 10,000 as a security deposit.
Procedure for Getting a Professional License
- Fill the Local service agent agreement form with a UAE national as a service agent from a legal translator and attest the said from a public notary service.
- Legal translator seal is not required if the agreement is in Arabic.
- Prepare a Memorandum of Association (MOA) with the said sponsor.
- Clearly mention the early fee required by your Sponsor.
- For a license under a civil company, another form needs to be filled and get it attested.
- Partners are required to attend the notary to sign the court agreement.
- For the purpose of the tenancy contract, approval from the municipality is to be obtained.
- All the forms needed to be submitted with proper attestation requiring one original copy each.
- Submit the Passport copies pf partners and NOC for expatriate partners.
- Payment to be made at the counter and get the license. A payment voucher would then be issued thereon.
Cost and Fees
The process of registering a professional license requires various fees and related cost which is required to be met with. The cost of getting a professional license would involve , a cost approx. to AED 10,310 . such cost would include,
- Professional license fees
- Service agent fees
- Market fees as prescribed upon the tenancy agreement
- Administrative service fees
- Government charges and fees
- Local fees, etc.
You can apply for a professional Trade license with Business setup. Under our firm you can get certain added services and other support facilities provided below,
- Paperwork from relevant departments
- Approvals from different institutions and departments
- Opening of corporate bank accounts.
- Transparent process.
- Minimal charges.
Do contact us if you need a professional license in Dubai; we’d be happy to help.
Who issues the professional license in Dubai?
The Department of Economic Development is liable for issuing a professional license in Dubai.
List a few individuals required to possess a professional license in Dubai?
A few individuals required to possess a professional license in Dubai are,
Accountants, Auditors and Finance advisors
Advertising professionals and Entertainment artists
Teachers and educational professors
Printing and Publishing
What are the uses of getting a professional license in Dubai?
The uses of getting a professional license in Dubai are,
100% foreign ownership
Exempted corporate and income tax
Protected business engagements
Wide range of clients to engage with
Is a legal translator seal required if the agreement is in Arabic?
No, it is not essential to have a legal translator seal if the agreement is Arabic.
Does it require renewing the professional license once it gets expires?
Yes, it is necessary to renew the professional license once it expires.