Are you interested in becoming an entrepreneur in Dubai by combining your professional skills and business knowledge? The UAE is a perfect destination for starting a successful business, with a high demand for professional services. With a professional license, foreign investors can enjoy full ownership of their companies without any local sponsorship in Dubai.
The Department of Economic Development (DED) in Dubai issues a professional license for various professional services in Dubai. This article explains professional licenses along with their benefits, required documents, and activities included under their criteria. We describe the professional license requirements and complete procedure to obtain a professional license, and in order to make it simple, the business setup experts at Now Consultant will help you at every step.
What Is a Professional License In Dubai?
A professional license permits individuals or companies to offer professional services within the UAE. Unlike commercial and industrial licenses, the professional license is designed by DED for service providers in Dubai. This includes a range of professions, from medical and IT services to consulting and artisans offering handcrafted products.
If you are an individual or a company looking to offer professional services in Dubai, this license is best for you in lower administrative and operational costs. To qualify for a professional license, you must possess a professional degree, provide proof of your education, and have relevant industry experience.
Benefits of Getting a Professional License In Dubai
1. Full Ownership For Foreign Investors
A significant benefit of obtaining a professional license in Dubai is that it assigns full foreign ownership. This means that foreign nationals can fully own their businesses without needing a local partner, which is not the case with other types of licenses.
2. No Need For a Local Sponsor:
With a professional license in Dubai, there is no need for a local sponsor or Local Service Agent (LSA). This significant change streamlines the business setup process, making it quicker and more straightforward, with reduced paperwork and fewer stakeholders involved.
3. Lower Administrative and Operational Costs:
With no local sponsor or LSA involvement, financial transactions and profit distributions become more straightforward and transparent. Entrepreneurs gain clear visibility of all financial inflows and outflows, and operational costs are significantly reduced.
Other advantages include:
- Diverse options for business activities
- Straightforward approach to a broad spectrum of clients and markets
- Access to corporate banking services
- Apply for visas, licenses, labor quotas, and other necessary permits
Who Needs a Professional License In Dubai?
Any individual or company possessing specialized skills, as given below, needs to get a professional license in Dubai:
- Accountants, Auditors, and Financial Advisors
- Advertising Professionals
- Entertainment Artists
- Architectural Consultants
- Teachers and Educational Professionals
- Business Consultants
- Lawyers and Legal Advisors
- Medical Representatives
- Carpentry and Artisanal Activities
- Technical Services
- Consultancies
- Printing and Publishing
- Internet and Web Design Services
- Beauty Salons
- Accounting and Auditing Companies
- Information Technology Services
- Management Consultancies
- Healthcare and Medical Services
Requirements For Professional License In Dubai?
To obtain a professional license in Dubai, you must submit specific documents to the relevant authorities to ensure compliance with legal and regulatory standards. The required documents are:
- Passport copies and passport photos of shareholders and company directors
- Completed license application form
- Initial approval certificate
- Certificate of business name reservation
- Memorandum of Association (MOA)
- Educational and professional qualifications
- Approvals from relevant industry authorities
How To Apply For a Professional License in Dubai?
Here is the step-by-step process to apply for a professional license in Dubai:
Step 1: Choose Business Activities:
In step one, you choose the business activities for your professional license that best meets your business. You are only permitted to conduct the specific activities listed on your license application. Failing to include all intended business activities can lead to penalties.
With over 2,000 options available, it is recommended to collaborate with a business setup expert such as Now Consultant to ensure your license application accurately reflects your intended operations.
Step 2: Select a Legal Structure:
In the second step, you select a legal structure for your professional license in Dubai. You have two main types of legal structures to choose from for your professional business: sole proprietorships and limited liability companies (LLCs).
Step 3: Reserve Business Name:
All businesses in the UAE must reserve a name with the Registry Office, adhering to strict regulations. The name must not include offensive language or references to any religion. Submit three names in order of preference for availability and compliance checks. Professionals at Now Consultant assist you with choosing and registering your company name.
Step 4: Application For Initial Approval:
Before submitting your professional license application, you must obtain initial approval from the DED. This approval represents that the DED has no objections to your business and that it meets the requirements of government departments. However, there is no authorization yet to start trading.
Step 5: Apply For Professional License:
After getting initial approval from the DED, you can submit your professional license application along with the required documents. Once your application is reviewed and the license is issued, you will need to pay for a professional license. After this, you will be permitted to offer your specialized professional services in Dubai.
How Much Does a Professional License Cost?
The average estimated cost for a professional license in Dubai is about AED 15,310. The prices may vary depending on your chosen activities and business structure. This amount includes professional license fees, trade name fees, service agent fees, market fees, government cultural fees, administrative service fees, and local fees.
Professional License Renewal In Dubai:
Your initial professional license is valid for one year, after which you must apply for a renewal. Upon approval, this renewal extends your license for five years.
Here is the documentation needed for a license renewal:
- A copy of the original professional license
- A copy of the office lease contract
- Approval from the necessary authorities
- Details for employees’ accommodation
How Can We Help You?
Starting a professional business in Dubai has numerous advantages, but it also has some complexities in applying and adhering to government regulations. A small mistake can make a huge loss in the form of fines and penalties. With Now Consultant, obtaining a professional license has become very simple, avoiding any risk of mistakes and violations of government instructions.
Our business setup experts at Now Consultant help you achieve the benefits of a professional license. We help you throughout the application procedure, from choosing suitable business activities and assisting with every step, from naming your business to completing your application. Furthermore, Now Consultant offers a transparent cost structure that meets your business requirements.
FAQs:
What Is The Difference Between Professional And Commercial License In Dubai?
A commercial license in Dubai permits foreign investors to own up to 49% of the business, with an Emirati national or local service agent holding at least 51%. Conversely, a professional license allows the holder to own 100% of the company’s shares and be the sole owner.
How Long Does It Take To Obtain a Professional License In Dubai?
The approval process for a professional license in Dubai typically takes a few weeks. Once approved, you can start conducting your business.
Can I Change The Activity Or Scope Of My Professional License?
Yes, you can change the activity or scope of your professional license. To do this, you need to apply to the Department of Economic Development (DED) for initial approval. Once granted, you can proceed with the changes to your business license.
