Starting a business in Dubai needs good planning and knowing the local rules. A key step is to get a Professional License if you want to provide professional services like medical, legal, or engineering. This license is given by the Dubai Department of Economic Development (DED). It makes running a business easier for professionals by letting them own 100% of their business and not needing a local sponsor.
What is a DED Professional License in Dubai?
Professional License is for individuals and companies that provide specialized services based on their skills and qualifications. It is perfect for services that use intellectual or artistic talents, not just buying and selling goods. This license allows these professionals to be officially recognized and authorized to work in their specific field in Dubai.
Why do you need a Professional Trade License In Dubai?
A professional license is used to check and confirm the skills and qualifications of professionals working in a competitive market. This license is important because it makes sure that professionals like business consultants, engineers, healthcare workers, accountants, and teachers meet the required standards in their work. By setting these standards, the professional license ensures that these professionals offer high-quality and reliable services, which is crucial for the safety and efficiency of the industries they work in.
Benefits of Professional License in Dubai
Can a Professional Company get 100% Ownership?
Yes. Dubai’s DED professional license is the only license that will grant professional company full ownership. The other business types will have to be partnered by a UAE national, who can buy 51% of the company. A professional license would therefore give the foreign owner full control over his business.
However, UAE law still requires a local service agent to be appointed for any dealings with the government. This agent doesn’t have any share or authority in the company—they simply assist with legal and administrative processes, making sure the company meets all necessary regulations. This structure allows the owner to maintain 100% of the business ownership while staying compliant with local laws.
Who needs a Professional License in Dubai?
The Professional License in Dubai is designed for professionals who want to work independently or start their own service-based business. This license is perfect for those who use intellectual and artistic skills, instead of being involved in trading or manufacturing.
Here are some types of services you can offer with this license in Dubai:
- Consultancy Services: Provide expert advice in areas like IT, business management, and finance.
- Medical and Health Services: Run private clinics or work as freelance medical providers.
- Engineering and Technical Services: Offer engineering advice across various disciplines.
- Legal Advisory Services: Provide legal advice and representation.
- Information Technology Services: Develop software and manage IT systems.
- Design and Creative Services: Work in interior and graphic design.
- Education and Training Services: Start educational institutions or offer training.
- Artisanship and Carpentry: Create and sell custom products.
- Beauty Salons and Spa Services: Run beauty and spa facilities.
- Repair and Maintenance Services: Fix and maintain electronics and appliances.
Difference Between Professional License and Commercial License in Dubai
Professional vs Commercial License
| Aspect | Professional License | Commercial License |
|---|---|---|
| Type of Activity | Service-oriented activities, relying on personal skills or intellectual abilities (e.g., consulting, IT services, education). | Trading activities such as buying, selling, or exchanging goods (e.g., retailers, wholesalers, traders). |
| Ownership | 100% foreign ownership allowed without a local partner (local service agent required, no equity). | Up to 49% foreign ownership; 51% must be owned by a UAE national (some activities allow 100% foreign ownership). |
| Share Capital | Lower minimum share capital of AED 150,000, not always required to be deposited. | Higher minimum share capital of AED 300,000, mainly for documentation purposes. |
| Government License Fees | Lower fees (approx. AED 9,000 to AED 11,000), suitable for small businesses and freelancers. | Higher fees (approx. AED 12,000 to AED 17,000), reflecting broader commercial activities. |
| Liability | Typically unlimited liability (business owner personally liable for debts unless opting for a structure like LLC). | Limited liability, protecting shareholders’ personal assets (liability restricted to share capital). |
How to Obtain a Professional License in Dubai?
To obtain a professional license in Dubai, submit a BR1 form, trade name, Ejari certificate, and tenancy contract to the DED. These documents are essential for processing the license. The DED offers services to assist with the application if needed. Here is a simple step-by-step guide to get your license while following all local laws.
Step 1: Define Your Business Activity
Step 2: Choose a Company Name
Step 3: Apply for Initial Approval
Step 4: Draft a Local Service Agreement
Step 5: Submit Required Documents
Step 6: Pay Fees and Collect Your License
Define Your Business Activity
First, you need to decide what professional services your business will provide. Choose from a list of activities approved by the government. It’s important to pick accurately because different services have different rules.
Choose a Company Name
Pick a company name that follows UAE rules and doesn’t offend public morals. Include the company type in the name, like “FZE” or “LLC,” and get it approved by the DED.
Apply for Initial Approval
Apply to the DED for initial approval by detailing your business affairs and who owns it. This approval means the government agrees to your business plan but you can’t start business operations yet.
Draft a Local Service Agreement
If you’re a foreign entrepreneur, fill the local service agreement form with the UAE national from a local translator and get the form attested from a public notary service. This agent helps with paperwork but doesn’t own part of the company.
Submit Required Documents
To apply for a Professional License, you need to provide these necessary documents to the DED:
- Completed license application form.
- Clear passport copies of all owners or partners.
- UAE visa copies for all foreign partners.
- Emirates ID copies for partners who are UAE residents.
- A copy of the local agent’s UAE national ID.
- NOC from the current employer if needed.
- Attested copies of relevant professional degrees.
- Initial approval from the Department of Economic Department.
- Tenancy contract and Ejari registration.
- Additional approvals depending on your business type.
Pay Fees and Collect Your License
After your documents are approved, pay the professional license fees (which depend on your business type). Once you pay, the DED will issue your Professional License, and you can start your business.
Additional Steps for Special Activities
Some jobs, like medical or educational services, might need extra approvals from specific ministries. This could mean more paperwork and inspections.
Renewal and Maintenance
Renew your Professional License every year by updating your tenancy contract, paying a renewal fee, and confirming that your business activities or ownership haven’t changed. Regular checks and following UAE’s rules are key to keeping your license.
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How to Get a Professional License Renewal for Business in Dubai?
Renewing a Professional License in Dubai is important to keep your business running smoothly. This renewal process happens after the initial one-year license period and extends the license for another five years. Here’s an easy guide to renewing your license.
Gather Required Documents
Collect all necessary documents: Copy of your original professional license, office lease contract, approvals from required authorities, and details for employees’ accommodation (if needed).
Submit all Documents
Submit all documents to the business licensing department in Dubai, either online through the official portal or in person.
Pay the Renewal Fee
Pay the renewal fee, which varies based on your business type and specific licensing requirements.
Receive Your Renewed License
Once documents are submitted and fees are paid, your license will be renewed for another five years, allowing you to continue operating legally in Dubai.
Professional License Dubai Activities List
Following is the list of individuals who are required to possess a professional license in Dubai:
- Accountants, Auditors and Financial Advisors
- Advertising professionals and Entertainment Artists
- 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 Design Services
- Beauty Salons
- Accounting and Auditing Companies
- Information Technology Services
- Management Consultancy
- Health and Medical Services
Business activities under Professional license
- Medical services
- Beauty salons
- Printing & publishing
- Document clearing
- Computer graphic design
- Consultancy
- Artisanship
- Security services
- Other noncommercial activities
What Documents Are Required for a Tenancy Contract?
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How Riz & Mona Consultancy Can Help?
Riz & Mona Consultancy is renowned as one of the top business setup consultants in Dubai, with over 15 years of experience facilitating a wide range of businesses throughout the UAE. Our deep connections with government officials and key authorities, combined with our extensive expertise in consultancy, streamline the process of establishing your business in Dubai. Additionally, we offer comprehensive financial, legal, and corporate services to support our clients throughout their business endeavors.
We are here to provide comprehensive support in obtaining your Professional License in Dubai, from preparing your documents to completing the process. Connect with us now to begin your journey with a FREE consultation!
FAQS
What is the process for transferring a Professional License to a new owner in Dubai?
Prepare and notarize the Share Transfer Agreement and amended Memorandum of Association, then submit them to the DED.
Are there any specific insurance requirements for businesses with a Professional License in Dubai?
Professional indemnity insurance is typically required, especially for healthcare, legal, and consultancy sectors.
What are the penalties for not renewing a Professional License on time in Dubai?
Penalties include fines, possible suspension of business operations, and legal issues for unauthorized activities.
Can a business with a Professional License expand its services to other Emirates in the UAE?
Yes, but additional approvals or licenses from the relevant authorities in each Emirate may be required.
How does a Professional License differ from a Freelance Permit in Dubai?
A Professional License allows forming a company and employing staff, while a Freelance Permit is for individuals working independently.