Dubai is a vibrant business hub that attracts entrepreneurs and professionals from across the globe. Those intending to give specialized services in consultancy, legal, medical, or technical professions must obtain a Professional License. This guide shall help you in various aspects of obtaining a professional license in Dubai, its actual advantages, and the procedure involved.
What is a Professional License?
A Professional License in Dubai is a type of business license issued to individuals or companies providing specialized services based on expertise, skill, or educational qualifications. Unlike commercial or industrial licenses, a professional license is given to service providers, and almost never to traders or manufacturers.
Who Needs a Professional License?
A professional license is required for individuals and businesses operating in service-oriented sectors such as:
- Management and business consultancy
- Legal advisory services
- Accounting and auditing firms
- Engineering and architecture firms
- IT and software development services
- Marketing and advertising agencies
- Medical and healthcare professionals
- Educational and training services
Benefits of a Professional License
100% Foreign Ownership- Professionals can own 100% of their business without the need for a local partner. However, a UAE partner (Local Service Agent) is required to carry out all government-related affairs.
Affortable Set-up Cost- Set-up costs for professional licenses are less as compared to commercial and industrial licenses that impose fewer capital requirements.
Flexibility in Conducting Business- Business operations under professional licenses may be conducted through freelance work as individual entities, or they may also involve partnerships with other professionals.
Reputation and Credibility- Well, we all know that a professional license will add credibility to your business as it means that you comply with Dubai’s regulatory standards.
How to Obtain a Professional License in Dubai
The professional license application in Dubai is a series of steps consisting of the following:
Step 1: Choose Your Business Activity
Identify the kind of service to be offered under the professional license. Such service should correlate with your qualifications and expertise.
Step 2: Select a Trade Name
Choose a unique name that explains your business activity. The name should comply with Dubai naming regulations and must not contain any offensive or religious terms.
Step 3: Apply for Initial Approval
Submit an application with activities to the Department of Economic Development (DED) in order to secure an initial approval for your professional license, which indicates that your business activity is permitted.
Step 4: Get External Approvals
Depending on the nature of your service, you might need to get other approvals from relevant authorities, such as Dubai Health Authority (DHA) for medical professionals or Real Estate Regulatory Agency (RERA) for property consultants.
Step 5: Drafting and Notarization of the Local Service Agent Agreement
A Local Service Agent Agreement has to be signed with a UAE national who would act as an interface with the government. The LSA has no ownership rights in the business.
Step 6: Lease Office Space
Obtain a valid tenancy contract for your office premises since this is a mandatory requirement for license approval.
Step 7: Submit Documents and Make Payment
Submit relevant documents, including:
- Passport copies of owners/partners
- Visa and Emirates ID (if applicable)
- Educational certificates (if required)
- No Objection Certificate (NOC) from a sponsor (if applicable)
Make the payment of the licensing fees once the documents are verified.
Step 8: Receive Your Professional License
After the successful completion of the above steps, the DED shall issue your professional license, granting you the legal authority to conduct business in Dubai.
Cost of a Professional License in Dubai
The professional license cost differs based on the activities, government fees, and other services required for it. In general, the total cost ranges from AED 10,000 to AED 25,000, including fees for registration, local service agent, and office rent.
Why Madmun Consultancy for Setting Up a Business?
Setting up a business in Dubai may find it very difficult because of the approvals and regulatory requirement. We at Madmun Consultancy assist you from end to end for the professional license, paperwork, and smooth registration process. Call us now to get guidance to set up your professional service business in Dubai!
