Dubai is an ideal location for any businessman to establish a company due to its favorable tax system. However, to start a business in Dubai, you must have a valid license. For various companies, Dubai offers three different types of licenses:
A commercial license is given to a business that engages in trade.
An industrial license is granted to a business that engages in manufacturing.
Service providers, artisans, and/or craftsmen are granted a professional license.
A professional license allows a person or a corporation to engage in any career that requires creativity and intellectual abilities. However, if the owner of such a corporation is more than one individual, it is referred to as a civil company.
The following practices are protected by 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.
Unlike industrial and commercial licenses, a professional license enables foreign investors to own 100 percent of the company, giving them the benefits of a sole proprietorship. To complete the judicial formalities, it is necessary to appoint a UAE national as a local service agent. Apart from charging a fixed annual fee for the service provided, the agent has no direct involvement in the business. They will have no equity and will not be responsible for the company's liabilities. To obtain a professional license, one must contact the Department of Economic Development (DED), which is responsible for all license-related activities in Dubai.
DOCUMENTS REQUIRED FOR PROFESSIONAL LICENSE
Filled application form to get a professional license
Copies of the passports of owners or partners
Copy of local partner’s naturalization book (Jinsiya)
If the ex-pat is already on an employment visa, the sponsors must have a No-Objection Certificate (NOC) for international partners. If the shareholder is on a visit visa, he or she must have his or her UID number.
A copy of the foreign partners' visit, visitor, or transit visa must be sent.
Depending on the type of operation to be performed, initial approval from the relevant authorities is required (e.g., the Municipality, RTA, National Media Council, etc.)
DOCUMENTS REQUIRED TO SUBMIT TENANCY CONTRACT WITH DUBAI MUNICIPALITY
A prescribed application form (BR1 form)
The name reservation certificate
Initial approval from the DED
Rental contract
Ejari registration
PROCEDURE
Fill out the local service agreement form with the help of a local interpreter and get it attested by a notary public.
A legal translator seal has not required if the agreement is in Arabic
Make a Memorandum of Association (MOA) with the sponsor
In the agreement, mention the sponsor's early fee.
If you're applying for a civil company license, you'll need to fill out another registration form to get it attested.
To sign the court agreement, both partners/owners must appear in front of the notary.
Obtain local consent for the tenancy contract.
All forms must be submitted with attestation (one original copy each)
Owner/partners' passport copies and NOC for expatriate owner/partners (if any) should be sent to any DED branch.
Make a payment and pick up your license at the counter; a payment voucher will be given at the same time.
If your license is about to expire, you may request a renewal from the appropriate authorities. Furthermore, since the professional license certifies those qualifications, the government will demand evidence or external certification. Having a professional license in Dubai has several benefits, including the ability to open a corporate bank account and apply for visas, permits, and labor quotas. As a result, if you want to start a service-based business in Dubai, you'll need a valid professional license.
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