A license is a permit provided by the UAE government to ensure that business activities are operated within the framework of laws, rules, and regulations. Before starting any business, it is important to have information about the nature of the industry and what types of activities are involved, as licenses are specific to particular business activities.
In Dubai, three common types of licenses are available for investors based on their business activities: Commercial, Industrial, and Professional licenses. A commercial license is for those who invest in a business that is involved in trading goods.
If your company is related to manufacturing activities, then the industrial license is most appropriate. However, if you provide professional services based on your skills and talent, you should obtain a professional license in Dubai.
This article will highlight the important information related to professional license in Dubai and the detailed process of obtaining a professional license. Give it a read for a complete understanding.
Steps to Obtain a Professional License
By following these simple steps, you can acquire a professional license to operate legally in Dubai.
Choose Activity
The first step is to figure out which services you want to provide or what activities fall in your business. After that, you need to approach the Department of Economic Development (DED), which decides and allows permits to investors.
Select Legal Structure
The next step is to choose a legal structure that is suitable for your business. It can be an LLC that requires a minimum of two shareholders. If a company runs into financial trouble, it would be the equal responsibility of the shareholders. If you prefer to run your business individually, then you can select sole proprietorship.
Secure Local Sponsor
In UAE, it is mandatory to hire a local sponsor to get pre-approval from the DED. Local Service Agents are not actively involved in business activities but charge yearly for the services they provide.
Make sure you hire a professional local service agent, as it will be helpful in navigating the legal work of the company. However, if a company fails to succeed, it is not their responsibility.
Reserve Business Name
The next step is to reserve a business name that complies with the guidelines provided by the authority of the UAE. Investors are free to choose any name, but if it contains any offensive word, it will be rejected.
The name should be unique and reflect professionalism. However, you can also register a business under your own name. You can submit up to three different names to the registry office for finalization.
Prepare Memorandum of Association (MOA)
If the legal structure of your company is LLC instead of a sole proprietorship, then it is crucial to make a memorandum of association. Mention the necessary details about the agreement, objective, early fee, company name, and information related to shareholders.
Apply For Initial Approval
Although initial approval is not as authentic and authorized as the professional license in Dubai is, it is an approval by the Department of Economic Development for a limited duration. It is provided when the company meets all the requirements, and there is no objection from the DED.
Apply for a Professional License
After obtaining the pre-approval, investors can apply for a professional license by providing all the documents required by the relevant departments.
You have to pay the fee before legal services are provided in Dubai. After reviewing your application for a professional license, the government will provide a license within two weeks.
Documents Required for Professional License
The following documents are required for a professional license in Dubai. Ensure that you haven’t missed any of the documents mentioned; otherwise, the application will be canceled.
- Application form (Complete)
- Initial approval from DED
- Photocopy of professional degree
- Memorandum of Association
- Authorities’ approval
- UID number of shareholders (visit visa holders)
- Copies of passport
- Photographs of shareholders
Activities Allowed with a Professional License
In Dubai, professionals can only provide services to locals after getting initial approval or a license. It is important to understand which activities and professions require a professional license in Dubai and what activities are allowed under a professional license.
The license ensures that individuals are capable, skilled and experienced in their profession according to the requirements set by the UAE government and relevant authorities. The following services can be delivered if you have a professional license.
- Healthcare services
- Carpentry
- Advisory Services
- Makeup services
- IT services
- Graphic Designing
- Safety Services
- Document clearing
Cost of Professional License
Several factors impact the professional license cost; generally, it can be obtained from AED 10,000 to AED 50,000. The total amount varies depending on the number of variables; it includes
- Regulatory Fee
- Service Agent fee
- Tenancy contract
- License fee
- Management service fee
- Local fee
- Leasing cost
Moreover, along with these charges, investors must also pay security charges up to AED 10,310. With time, the cost may increase with the increase of service charges. Meydan Free Zone provides the most affordable professional license.
Benefits of a Professional License
The professional license in Dubai provides several benefits to investors. These include:
Legitimacy
A professional license confirms that you are qualified, have skills, and your company is registered. It enhances clients’ credibility, reputation, and trust regarding your services.
Access to Services
If you have a professional license, you are eligible for government projects and access to services that can help you gain success.
Ability to Sponsor
Another benefit that attracts professionals to Start a Business in Dubai is that they can sponsor their family members and house help with a professional license.
Open Bank Account
Professional license holders are eligible to open an account in any bank in Dubai. It will help achieve financial goals and manage funds.
Tax Relaxation
Dubai is tax-free, and holding a professional license provides several tax benefits and incentives, resulting in more profit.
Complete Ownership
A professional license provides 100% control over the business without external help. It helps enhance your earnings as it is all in your control. However, the option of choosing a partner is always available if you ever want to.
Conclusion
We hope you now understand the benefits of a professional license in Dubai and how you can apply for it. Dubai is a perfect place for talented professionals, and the government provides several benefits to them.
Any professional with skills is eligible to provide services to customers in Dubai if they hold a license. This approach helps both the professionals and the economy of Dubai. Get your professional license and start thriving in the Dubai business market.
