Being a cosmopolitan city, Dubai offers plenty of opportunities for businesses delivering technical service activities. Activities under a technical service license in Dubai such as cleaning services, plumbing, carpentry etc. are highly lucrative as the emirate is composed of wealthy citizens and residents from nearly 200 nationalities. However, before applying for a technical service license, investors should know about its features, requirements and benefits. Business setup consultants in Dubai can help investors understand the requirements associated with a mainland technical service license.
Technical services License is a type of professional license and is eligible for 100% foreign ownership. However, investors need to appoint a Local Service Agent (LSA) for obtaining total ownership. Read ahead to know further about the Dubai mainland technical services license.
Activities Permitted Under Technical Services License in Dubai
As per the rules of business setup in Dubai, entrepreneurs must select the right activity before applying for a trade license. The Department of Economic Development (DED) is the competent authority issuing technical service licenses in Dubai mainland. The DED permits the following activities under a technical service license:
- Air conditioning, ventilation, and air filtration services
- Carpentry and flooring
- Concrete works
- Corporate cleaning services
- Electrical fitting and fixtures services
- False ceiling and light partition installation
- Floor and wall tiling works
- Installation and maintenance
- Insulation contracting
- Plaster and cladding works
- Plumbing and sanitary contracting
- Solar energy systems installation
- Technical services contracting
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Process of Getting a Technical Services License in Dubai
Entrepreneurs need to strictly follow the steps designed by the DED to obtain a trade license in Dubai mainland. Some of the rules of business setup in Dubai are complex, while some are simple. Applying through business setup consultants in Dubai is the best way to navigate such steps. The following steps must be executed to get a technical service license in Dubai:
1. Choose a Business Activity
First of all, applicants need to select the right activity that matches their business plan. Investors can browse through DED’s list of permitted business activities in Dubai mainland before preparing the application. Business setup consultants in Dubai can help entrepreneurs execute this crucial requirement.
2. Determine the Legal Structure
The next step in the process of a technical service business setup in Dubai identifying the right legal structure for the proposed company. The legal structure is determined based on the number of shareholders in the company. Sole Proprietorship, Limited Liability Company (LLC), Civil Company, etc are some of the popular types of legal structures in Dubai.
3. Choose a Name for the Company
Once the appropriate legal structure is identified, entrepreneurs should come up with a name for their proposed company. The company’s proposed name should not violate the rules for trade names in Dubai. Blasphemous names or names that violate social or moral order must be avoided at any cost. Business set-up consultants in Dubai can help the investors assess the validity of the trade name.
4. Apply for Initial Approval
In the next step of business setup in Dubai, entrepreneurs must secure an initial approval from the DED. DED’s initial approval certificate is proof that the authority has no objection to the registration of the proposed company. Investors aiming for fast approval must draft the documents properly for which they can seek assistance from business setup consultants in Dubai.
5. Drafting of LSA Agreement
Since the technical service licence is a professional license, an LSA must be appointed as per the regulations of business setup in Dubai mainland. The LSA must be UAE national, but he is not entitled to any ownership in the company. Investors can consult with business setup advisers in Dubai before drafting the LSA agreement. A properly drafted LSA agreement is essential to obtain a technical services license in Dubai without any hassle.
6. Rent an Office Space in Dubai
Unlike the free zone business setup in Dubai, mainland companies are required to rent a physical office. Investors must rent an office space, sign the tenancy contract and get it registered with Ejari. The assistance of company formation specialists in Dubai will come in handy for entrepreneurs to choose an office space.
7. Obtain External Approvals If Applicable
Certain business activities need special approvals from the concerned Ministry for setting up a business in Dubai. Such activities are called special activities considering the risks associated with them. The best business setup advisers in Dubai can assist the investors in obtaining external approvals.
8. Issuance of Technical Service License in Dubai
In the last stage of the process of technical services company formation in Dubai, the DED will verify all the documents for final approval. Investors need to submit the mandatory government fee to the DED in this step. Upon approval, the DED will issue the mainland technical services license.
Hire the Best Business Setup Consultants in Dubai
Obtaining a technical services license in Dubai will let the foreign investors access the plethora of business opportunities in the emirate. The technical services license falls in the professional category that offers the benefit of setting up a business in Dubai mainland with 100% ownership. However, foreign investors may be naïve about the UAE’s local laws and regulations and it may cause delays in the issuance of licenses while dealing with the licensing authorities. This is where the assistance of leading business setup consultants in Dubai such as Jitendra Business Consultants (JBC) comes in handy for entrepreneurs.
JBC has years of experience in helping foreign investors incorporate companies in Dubai, UAE. JBC has a team of highly qualified business setup consultants who are experienced in dealing with the authorities. Our business setup consultants in Dubai are well-versed in labour laws and immigration laws which will simplify the company incorporation process. Our services include drafting of Memorandum of Article (MoA) and LSA agreement, processing of visas, business centre services, etc. With JBC’s able assistance foreign investors can peacefully establish their dream company in Dubai mainland or anywhere in the UAE. Consult with our advisers today to get hold of bespoke business setup services in Dubai.