Are you wondering how to start your own business in Dubai? Well, Dubai is known as the "Golden City" as it is a hub of business. For decades, the investors have been willing to set up business in Dubai. Businessmen are also attracted to businesses set up in Dubai due to its attractive tax system But for a company formation in Dubai, one needs to gather a valid license. Dubai provides three kinds of licenses to businessmen who want to set up business in Dubai.
What are the kinds of License Provided to set up business in Dubai?
The types of Licenses provided to set up a company in Dubai are:
- Commercial licenses are issued to a company that is engaged in trading activities.
- Industrial licenses are issued to a company that is engaged in manufacturing activities.
- Professional licenses are issued to service providers, artisans, or craftsmen.
What is a Professional License?
These types of licenses are given to Sole proprietorship businesses, partnerships, Joint ventures, or any business that wants to set up business in Dubai. This license is also given to the service providers, artisans, designers, etc. But there is a criterion, that the business has to be owned by a single person to obtain the professional License in Dubai. The organization will be considered a civil corporation if the business is owned by two or more persons.
Activities are done under Professional License
Every entrepreneur or businessman who wants to set up a business in Dubai can do these activities after getting a professional license:
- Artisanship
- Carpentry
- Consultancy services
- Medical services
- Printing and publishing
- Beauty salons
- Computer graphic design service
- Repair services
- Security services
- Document clearing, etc.
All About Professional License to set up business in Dubai
A professional License allows 100% ownership for foreign investors who want to start a Sole proprietorship business. This benefit is only present in professional Licenses, unlike commercial and industrial licenses. A UAE national is mandatory as they will work as a local agent for completing the judicial formalities.
There is no direct connection between the agent with the company, but it charges a fixed annual salary for the services offered. The agents do not have the right to equity neither they are liable to pay off the liabilities of the company. As the Department of Economic Development (DED) handles all the activities related to the license, therefore the investor has to approach the DED for getting the license.
Key Steps to Get a Professional License in Dubai
Here are the steps to getting the Professional License to set up a business in Dubai :
- To make a clear description of the activities undertaken in a business.
- A local service agent has to be appointed to look after all the legal formalities to obtain a professional license in Dubai.
- Initial approval from the DED is required.
- Reserve a name for the business.
- Lastly, all the required documents are to be submitted to the DED for approval.
What is the procedure to get a Professional License to set up a business in Dubai?
The procedure to get a professional license in Dubai are:
- The local service agreement form has to be filled with the UAE national from a local translator and get the form attested from a public notary service.
- A legal translator seal has not required if the agreement is in Arabic.
- The Memorandum of Association (MOA) has to be made with the sponsor.
- The sponsor’s early fee in the agreement has to be mentioned.
- If the investor is getting a license for a civil company then that person needs to fill one more application form and get it attested.
- All the partners are required to attend the notary to sign the court agreement.
- Get approval from the municipality for the tenancy contract.
- Submit all the original forms with attestation.
- The passport copies of the partners and NOC for expatriate partners have to be submitted at any branch of the DED.
- The payment has to be done at the counter and get the license.
- A payment voucher would be issued at the same time.
What are the Benefits of a Professional License in Dubai?
The benefits of a Professional License are:
- It is cost-effective.
- It has 100% ownership.
- It has a wide range of activities to choose from.
- It has a flexible market.
- A wide range of clients is available to engage with.
- There is no additional income tax or corporate tax for profit.
- The renewal of the License is done at a low cost.
- The business engagements are protected by DED.
- There is a wide range of choices on what business the investor wants to choose.
Documents Required for Professional License
The documents required to get the Professional License are:
- A filled out the application form to get the professional license.
- Copies of the passports of owners or partners are required.
- A Copy of the local partner’s naturalization book is required.
- A No-Objection Certificate (NOC) from sponsors for foreign partners is required.
- The foreign partners have to submit a copy of the visit, and initial approval from the relevant authorities, depending on the type of activity to be undertaken.
What is the cost of a Professional License?
The cost of a Professional License is approximately AED 10310 and The cost of the license depends on the different types of License holders.
- Professional License Fee
- Administrative service charge
- Agent fees
- Trade name fees
- Market fee based on tenancy
- Government cultural fees, etc
Conclusion
Danburite Corporate has been assisting businessmen to get a Professional license and set up business in Dubai. Therefore, if you want to start up your company in Dubai, then a valid professional license is mandatory. For more queries contact us if you need a professional license in Dubai. We will be glad to assist you!
FAQs
1. Which authority issues a professional license in Dubai?
The Department of Economy and Tourism (DET), formerly known as the Department of Economic Development (DED), is responsible for issuing professional licenses in Dubai.
2. Is a Local Service Agent mandatory for a professional license in Dubai?
In many professional activities, foreign investors may need to appoint a Local Service Agent (LSA) to complete government-related formalities, although the investor can still retain full ownership of the business.
3. Can freelancers and consultants apply for a professional license in Dubai?
Yes, freelancers, consultants, artisans, and service professionals can apply for a professional license in Dubai, depending on the nature of their business activity.
4. How long does it take to obtain a professional license in Dubai?
The timeline for obtaining a professional license in Dubai depends on the business activity, approvals, and document verification process, but it can often be completed within a few working days if all documents are in order.
