Before starting a business in Dubai Mainland (i.e. Not in a Free Zone), getting an appropriate license is mandatory for businesses. There are three types of business licenses provided by the Department of Economic Development, Government of Dubai. The said three types of licenses in Dubai are Commercial license (for trading activities), an Industrial license (for manufacturing activities) and the last one is a Professional License (for professional activities).
A Professional license is different from other two types of licenses. Professional license holders can only do business in selective industries. These professionals are not required to take on board a UAE National as 51% owner. Instead, they are required to hire a Local Service Agent to assist their business. Local Service Agent is appointed against payment of a fixed annual fee and does not have a say in the operations of business nor does have any share in the Equity. Which means Professional Licenses can be owned 100% by the Foreigners / Expatriates.
What is a Professional License in Dubai?
This type of license is appropriate for individual entrepreneurs who intend to provide professional activities such i.e. services of any kind. These can be corporate service providers, accountants, lawyers, architects etc.
However, since the fate of that business is completely dependent upon that professional competence of that Individual, the business entity must be owned by a single person to obtain a professional license in Dubai. If the ownership rests with more than one person, then the organization will be considered a Civil Corporation. However, even then the requirement to share the 51% Ownership with a UAE National is not applicable.
Activities covered under a Professional License in Dubai
Anyone who intends to conduct a commercial or business activity in Dubai is required to have a valid license to do so. The Department of Economic Development (DED) in Dubai has devised a methodology that separates various sectors into categories of licensing.
Hence to establish a business in Dubai, you need to choose the right kind of license to conduct that business activity. A professional company setup in Dubai requires a professional license in Dubai. Professional in general means an individual with knowledge, experience, and skills in a specific field.
Following is the list of professionals who need a professional license in Dubai to conduct their business:
- Advertising professionals and Entertainment Artists
- Accountants, Auditors and Financial Advisors
- Architectural Consultants
- Teachers and Educational Professors
- Business Consultants
- Lawyers and Legal Advisors
- Medical Representatives
- Carpentry and Artisan Activities
- Technical Services
- Consultancy Services
- Printing and Publishing
- Internet and Web Designing Services
- Beauty Salons
- Information Technology Services
- Management Consultancy
- Health and Medical Services
The above list is only a compilation of Professionals who need a Professional license in Dubai to conduct the business activities in relation to their profession. If you wish to see the complete list of activities which can be conducted with a Professional License in Dubai, you can refer the website of Department of Economic Development. The best course of action, however, is to take the services of a Professional Business Advisory Firm to get all the information that you need to get a professional license in Dubai.
- 100% Foreign Ownership is allowed
- Cheaper than Commercial or Industrial Licenses
- Wide range of activities to choose from
- Big Markets to exploit
- License Renewal is cheaper.
- Can cater to both Mainland and Free Zone Businesses
- Full authority of business operations
- 100% Tax Free Profits
- Passport copies of owners and partners
- VISA Copy
- Naturalization Books of Local Service Agent (Jinsiya)
- Initial Approval from relevant Authorities (RTA, Dubai Municipality, DED, Ministry of Finance etc.)
- Tenancy Contract (EJARI)
- Name Registration Certificate
COST OF PROFESSIONAL LICENSE
Basic License cost with including all the fixed government fees adds up to AED 10,300 (appx).
Total cost of acquiring a professional license however depends on certain other variables including:
- Local Service Agent Fee
- 5% Market Fee (5% of Annual Rent is Payable as Market Fee)
- Security Deposit
- Number of VISAs required
We can help you get a Professional License in Dubai and can take responsibility of the entire process from end to end i.e. from collecting all the documents required to delivering the copy of License to you. The process includes
- Getting relevant approvals
- Preparing the Incorporation documents such as Memorandum & Articles
- Provide a Trusted Local Service Agent
- Assistance in Opening a Bank Account
- Assistance in Finding suitable office spaces
- Handle all other PRO works required to get the license.