Training institutes are increasingly becoming relevant in the UAE as people are looking to acquire new skills to boost their career prospects. In this respect, setting up a training institute in Dubai presents lucrative business opportunities for foreign investors. Moreover, the process of business setup in Dubai is conducive for foreigners owing to factors such as strategic location, modern infrastructure, ease of doing business, low taxation etc.
However, obtaining a training institute license in Dubai may become tough if you are unaware of the laws and regulations. We suggest you apply for a trade license through the best business setup consultants in Dubai to easily navigate such roadblocks. The following article is a guide to the standard procedures related to opening a training institute on the Dubai mainland.
Procedures by the Department of Economic Development
As per the regulations of business setup in Dubai, you are required to obtain a trade license to carry out any business activities. Performing any business activities without a trade license in the UAE is a punishable offence. To start a training institute in Dubai, you must first obtain a trade license approval from the Department of Economic Development (DED). Business setup consultants in Dubai can help you to obtain a business license quickly. The key steps for obtaining a training institute license in Dubai are listed below:
- Choose a name for your institute
- Select an appropriate activity from the DED list
- Choose a legal structure as per the number of shareholders
- Obtain initial approval from DED
- Obtain external approval from authorities including the Knowledge and Human Development Authority (KHDA)
- Rent a business premise and submit the tenancy contract to DED
- Submit all the company incorporation documents to DED
- Collect the business license
Phase 1 of Procedures by the Knowledge and Human Development Authority
Obtaining a KHDA permit for a training institute in Dubai involves a series of paperwork and document submission. Accurate documentation can be challenging for entrepreneurs but the assistance of business setup consultants in Dubai may come in handy for them. The process of KHDA approval involves two phases. In the first step, you need to submit the following documents:
- Reserve the trade name with the DED (present a copy of the license for the existing company)
- Initial approval for adding Training activity to the existing license from the DED
- Application form (all fields should be typed)
- Registration Plan (elements attached)
- Colour Passport copies of all shareholders of the proposed training institute
- Colour Passport copy of Director/Manager of institute
- Notary public signature for all Shareholders and the Manager
- CV of Director/Manager
- Certificate Qualification of Manager – Attested by Ministry of Foreign Affairs.
- Undertaking from the Manager that he will manage the training institute including the proposed working hours full-time.
- In case one of the shareholders is corporate then submit a Board resolution from Mother Company and a Certificate of good standing
Phase 2 of Procedures by the Knowledge and Human Development Authority
Phase 1 of KHDA approval in Dubai ends once you submit all the mandatory documents. Consult with business setup consultants in Dubai to accurately prepare the relevant documents. You need to submit the following documents in phase 2 of the KHDA approval process:
- Trade licence copy
- Tenancy contract
- Environment Health & Safety Certificate from Civil Defence
- Collect your Educational Services Permit from KHDA
Time to obtain an Educational Services Permit from KHDA
Getting KHDA approval is a mandatory part of the process of business setup in Dubai for educational service providers. A training institute will not be allowed to operate in Dubai without obtaining approval from the KHDA. Even though the process involves extensive documentation, approval can be obtained within 15 days. However, the approval may get delayed if the documents are inadequate or prepared inaccurately. Business setup consultants in Dubai can assist you with the necessary documentation so that you can obtain approvals on time.
Why Should You Set Up a Training Institute in Dubai?
According to a 2021 World Economic Forum report, the UAE experience a big skills gap amidst an underdeveloped private sector. The report says the UAE can create an additional 43,000 jobs by 2030 by closing the skills gap. Moreover, with the growth of technologies such as blockchain and Artificial Intelligence individuals are forced to learn new skills to survive in an evolving job market. Training institutes can earn a profit by enabling the UAE’s workforce to develop transferable skills that allow for reskilling.
Consult with the Best Business Setup Consultants in Dubai
Opening a training institute in Dubai involves mandatory steps such as obtaining approval from the KHDA. A new entrepreneur may struggle with obtaining timely approvals and clearances but business setup consultants in Dubai such as Jitendra Business Consultants can make it easier for you. Our consultants are well-versed in all the regulations of business set up in Dubai including DED and KHDA rules. Avail of our business setup services in Dubai to jumpstart your business without any hassle.