Professional License in Dubai: a 2022 Guide to Foreign Investors

Professional License in Dubai A 2022 Guide to Foreign Investors

The regulations of business setup in Dubai mandate every entrepreneur to obtain a trade license before practising any profession or commercial activity in the emirate. However, foreign investors need not bother about the procedures of obtaining a trade license as business setup consultants in Dubai can simplify the process for them with their expertise and experience. Depending on the nature of activities, trade licenses in Dubai mainland are categorised as Commercial, Professional, Industrial and Tourism licenses.

In this article, we will equip you with relevant information on the features of a Professional License in Dubai mainland and the requirements to obtain it in 2022. You will also learn about the key activities covered under a Professional License by reading ahead.

Professional License in Dubai: Who Issues It?

All trade licenses in Dubai mainland, including the Professional License, are issued by the Department of Economic Development (DED). Foreign investors need to abide by the steps and requirements set out by the DED to obtain a Professional License in Dubai. Furthermore, you will be required to properly prepare and submit all the relevant documents to speed up the process of getting a Professional License in Dubai. Business setup consultants in Dubai can guide you on the steps and other aspects of the trade license.

What is a DED Professional License?

A Professional License in Dubai mainland allows you to practice any DED-permitted profession that hinges on an individual’s intellectual or creative skills. A Professional License permits the holder to conduct business in specific areas such as consultancy, salons, printing & publishing, repair services, carpentry and artisanship etc. It is advisable to get in-depth knowledge about the license from company setup consultants in Dubai before drafting the application.

What are the Key Features of a Professional License in Dubai?

A Professional License issued by the DED is highly ideal for single-ownership firms planning to conduct service-related activities in Dubai mainland. The license allows foreign investors to have 100% ownership over their company. However, the foreign investors need to sign an agreement with a Local Service Agent (LSA) to meet the DED requirements.

The LSA is a UAE national who will sign the agreement for a predetermined yearly fee for the services provided. However, the LSA will not have any further involvement in the company. The LSA is not entitled to any shares or ownership in the company. Moreover, the LSA is not liable for any of the company’s debts.

What Could Be the Ideal Legal Structure of a Professional Company?

Most companies operating with a Professional License in Dubai are structured as a Sole Establishment or a Sole Proprietorship. If the company has multiple owners, it will be registered as a Civil Company on the Dubai mainland. If selecting a legal structure is complex for you, then consult with business setup consultants in Dubai. Consultants can save you from registering a company in Dubai under the wrong legal form.

Activities Permitted in a Professional License in Dubai

By obtaining a Professional License, you can carry out some of the following business activities in Dubai mainland:

  • Artisanship including arts, painting, sculpting and similar skills
  • Accounting & Auditing services
  • Management consultancies
  • Business services such as business process development, document clearing services
  • Carpentry
  • Cleaning services
  • Consulting services
  • Computer graphics
  • Design services
  • Digital marketing
  • Educational training services
  • Entertainment artists, including singers, musicians, and similar artists
  • Engineering design services
  • Electronics repair services for digital cameras, laptops, smartphones and watches
  • Electrical equipment repair and maintenance
  • Hairdressing, salon and spa
  • Information technology services
  • Legal advisory services
  • Medical services
  • Printing and publishing
  • Repair services of appliances, vehicles and other equipment (household or industrial)

How to Get a Professional License in Dubai?

Getting a Professional License in Dubai mainland is not a complex process. However, foreign investors may struggle with dealing with the DED and other government departments. Also, some activities (Special Activities) such as accounting, auditing, legal services etc. require approval from relevant ministries. Foreign entrepreneurs can navigate such challenges by consulting with business setup consultants in Dubai. The below steps detail the process of getting a Professional License in Dubai:

  • Clearly describe the business activities
  • Choose a name for the company
  • Select an appropriate legal structure
  • Appoint an LSA and sign the LSA agreement
  • Obtain DED initial approval
  • Rent an office space and obtain a tenancy contract (Ejari)
  • Get external approvals for special activities
  • Submit documents, pay the fee and collect the license

Apply for a License through Business Setup Consultants in Dubai

Applying for a Professional License through business setup consultants in Dubai is the best way to reduce bureaucratic red tape and avoid inaccuracies in the documentation. The process of business setup in Dubai may appear to be complex for foreign investors who are unaware of the local laws and regulations. Company formation specialists such as Jitendra Business Consultants (JBC) have a team of highly qualified professionals who are well-versed in the UAE Immigration Laws and Labour Laws.

JBC can guide you on the business activities, license costs, legal forms, and mandatory documents. We have a dedicated team offering customised business setup services in Dubai to help you meet key requirements such as visa processing, Emirates ID approval, bank account opening etc. Consult with our business formation specialists today to receive personalised advice to set up your dream business in Dubai.

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