It is its attractive tax system that makes Dubai is one of the most favourites amongst investors and skilled professional from all over the world to set up a company. However, to establish a company or to start any profession in Dubai, one first needs a valid license. Dubai and other emirates of UAE provide 3 different types of licenses for 3 different types of business activities:
- The commercial license issued for all types of trading activities
- The industrial license issued for manufacturing activities
- The professional license issued to skilled professionals like artisans, architects, designers, and/or craftsmen
Here, we will try to find out how to obtain a professional license in Dubai. As mentioned above, a professional license is issued to professionally skilled individuals or companies to engage in professions on the basis of professional and intellectual abilities.
Who Can Obtain a Profesional License in Dubai?
Below are some of the activities covered under a professional license:
- Artisanship
- Advocates
- Accountants, Auditors, Financial consultancy services
- Beauty salons
- Business Consultants
- Computer graphic design service
- Carpentry
- Consultancy services
- Designers
- Document clearing, etc.
- Legal services
- Medical services
- Printing and publishing
- Repair services
- Security services
- Teaching and Training services
- And more
What is a Professional License in Dubai?
A professional license gives 100% ownership to foreign investors, allowing them the advantages of a sole proprietorship. But, it is compulsory to recruit a local UAE national as a service agent for the legal formalities. However, this local agent does not interfere directly/indirectly with the company. He/she gets their share of fixed charges as an annual fee for the service they offer. They are not entitled to any equity, nor do they have any responsibility to pay for the liabilities of the company. To obtain a trade license in Dubai UAE, one has to approach the Department of Economic Development (DED) as it is responsible for all the activities associated with licenses in Dubai.
How to Obtain a Professional License in Dubai?
Before applying for a professional license, the very first thing that you will need to doBusiness is make a clear account of the activities that you plan to undertake in your business. Then you will have to appoint a local service agent who will assist you in the procedures of legal formalities in order to acquire a professional license in Dubai. After you have appointed a local service agent, obtain initial approval from the Department of Economic Development (DED). Moreover, you will also have to decide on a name for the business, also pay a fee for the same, and then after you have all the necessary documents at once place, submit them to the DED for approval.
Documents Required to Get a Professional License in Dubai
- Application form filled with the necessary information to get a professional license
- Copies of the passports of owners or partners
- Copy of local partner’s naturalisation book (Jinsiya)
- A No-Objection Certificate (NOC) from sponsors for foreign partners if the expatriate is already on an employment visa. If the shareholder is on a visit visa, then his/her UID number is needed
- The foreign business partners have to submit a copy of the visit, tourist or transit visa
- Initial approval from the relevant bodies or 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
What is the Process to Obtain 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
- A legal translator seal 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 cost of a professional license in Dubai is about 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.
Some Important Factors
Before your license is expired, ensure you have renewed from the concerned authorities. Also, You will need to provide proof and external certification to obtain a professional license. A professional license also comes with many benefits. Once you obtain a professional license in Dubai, you can easily get a corporate bank account. Additionally, you can apply for visas, licenses, labour quotas, etc. Therefore, if you are determined to establish a service-based company in Dubai, you are advised to obtain a valid professional license.