Due to the attractive tax system, Dubai is a perfect place for any businessman to set up a company. But, for business setup in Dubai one needs to have a valid license. Dubai provides 3 different types of licenses for different businesses:
- Commercial license, issued to a company engaged in trading activities
- Industrial license, issued to a company engaged in manufacturing activities
- Professional license, issued to service providers, artisans and/or craftsmen
In this article, we are going to discuss how to get a professional license in Dubai. As mentioned above, a professional license is issued to an individual or a company to practice any profession in which he/she relies on talent and intellectual abilities. But if the owner is more than one person in such a business, then it is called a civil company.
The activities covered under professional license are:
- Consultancy services
- Medical services
- Printing and publishing
- Beauty salons
- Computer graphic design service
- Repair services
- Security services
- Document clearing, etc.
About Professional License in Dubai
Unlike industrial and commercial licenses, a professional license allows 100% ownership for foreign investors, permitting them the advantages of a sole proprietorship. However, it is mandatory to appoint a UAE national as a local service agent to complete the judicial formalities. The agent does not have any direct involvement in the company, apart from charging a fixed annual fee for the service offered. They will have no equity and are also not liable to pay for the liabilities of the company. One has to approach the Department of Economic Development (DED) to get a professional license as it handles all the activities related to licenses in Dubai.
How to Get a Professional License in Dubai?
The first and foremost step while applying for a professional license is to make a clear description of the activities undertaken in one’s business. The next step would be to appoint a local service agent who would look after all the legal formalities in order to obtain the professional license in Dubai. After the appointment, get an initial approval from the DED. Apart from this, you have to reserve a name for the business (pay a fee for the same) and then submit all the necessary documents to the DED for approval.
Documents Required to Get 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 expat 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 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 Required to Submit Tenancy Contract with Dubai Municipality
- A prescribed application form (BR1 form)
- The name reservation certificate
- Initial approval from the DED
- Rental contract
- Ejari registration
A partner in a professional license (civil) company is required to pay AED 20,000 as a security deposit. And a person applying for a professional license without a partner has to pay AED 10,000 as a deposit.
Procedure to Get a Professional License in Dubai
- Fill the local service agreement form with the UAE national from a local translator and get the form attested from a public notary service
- Legal translator seal has not required if the agreement is in Arabic
- Make a Memorandum of Association (MOA) with the sponsor
- Mention the sponsor’s early fee in the agreement
- If you are getting a license for a civil company then you need to fill one more application form and get it attested
- All the partners/owners have to attend the notary to sign the court agreement
- Get approval from the municipality for the tenancy contract
- Submit all the forms with attestation (one original copy each)
- Submit passport copies of owner/partners and NOC for expatriate owner/partners (if any), at any branch of the DED
- Make payment at the counter and get the license; a payment voucher would be issued at the same time
The professional license cost in Dubai is approximately AED 10,310 which includes:
- 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.
If your license is approaching its expiry date, you can renew the license from the concerned authorities. Also, since the professional license is certifying some skills, the government will require a proof or an external certification for it. Having a professional license in Dubai comes with many advantages like it will help in getting a corporate bank account, you can apply for visas, licenses, labor quotas, etc. Therefore, if you intend to start a service-based company in Dubai, having a valid professional license is a must. Do contact us if you need a professional license in Dubai; we'd be happy to help.