Get a Professional License in Dubai
Dubai, known for its thriving business environment and strategic location, offers numerous opportunities for entrepreneurs. If you are looking to offer professional services in Dubai, obtaining a professional license is essential. This blog provides a comprehensive guide on how to get a professional license in Dubai and the associated costs, along with how Infibiz can help streamline the process.
Read More: Mainland Company Setup
Understanding Professional License
What is a Professional License?
A professional license in Dubai allows individuals and businesses to offer services based on their expertise. This includes consultancy, IT services, marketing, education, and more. This type of license is ideal for those who provide non-physical services.
Professional License vs Commercial License in Dubai
When establishing a business in Dubai, it’s crucial to choose the right type of license that aligns with your business activities. Two popular options are the Professional License and the Commercial License. A Professional License is designed for individuals and companies providing specialized services. On the other hand, a Commercial License is meant for businesses involved in trading activities. This includes the buying and selling of goods, general trading, and retail.
| Feature | Professional License | Commercial License |
|---|---|---|
| Purpose | For specialized service-oriented businesses | For businesses involved in trading activities |
| Ownership | 100% foreign ownership allowed | Often requires 51% local sponsorship |
| Activities | Consultancy, legal services, IT services, education, etc. | General trading, buying and selling of goods, retail |
| Cost | Generally lower setup costs. Starting from AED 10,405* | Can be higher due to additional sponsorship requirements. Starting from AED 14,905* |
| Visa Sponsorship | Can sponsor visas for employees and family | Can sponsor visas for employees and family |
| Office Requirement | Requires physical or virtual office space | Requires physical office space |
| Legal Framework | Simpler legal framework with fewer complexities | More legal requirements and documentation |
| Market Access | Direct access to the local market | Direct access to the local market |
| Flexibility | High flexibility in business operations | Moderate flexibility depending on sponsorship agreements |
| Minimum Capital Requirement | No minimum capital requirement | May have minimum capital requirements |
| Ideal For | Consultants, professionals, and service providers | Traders, retailers, and import-export businesses |
Understanding these differences helps in making an informed decision tailored to your business needs. Infibiz can assist you in navigating the process, ensuring a smooth setup for your professional or commercial business in Dubai.
Read More: Types of Mainland License
Benefits of a Professional License
Obtaining a professional license in Dubai offers numerous advantages for entrepreneurs and businesses. Here are some key benefits of securing a professional license in this thriving emirate:
1. 100% Foreign Ownership
One of the most significant benefits of a professional license in Dubai is that it allows for 100% foreign ownership. Unlike other business structures that require a local sponsor or partner, professional license holders can fully own and control their business, providing greater autonomy and flexibility.
2. Flexible Business Structure
A professional license accommodates various business structures, including sole proprietorships, partnerships, and civil companies.
3. Access to Local Market
Businesses with a professional license can operate directly in the Dubai mainland, giving them access to the local market. This enables them to offer their services to a broad customer base within Dubai and the wider UAE, enhancing their growth potential and market reach.
4. Ease of Sponsoring Family and Employees
With a professional license, business owners can sponsor visas for their family members, employees, and domestic staff. This benefit simplifies the process of bringing skilled professionals and loved ones to Dubai, making it easier to build a reliable and capable team.
5. Simple Legal Framework
The process of obtaining a professional license is straightforward, involving fewer legal complexities compared to other business licenses. The streamlined procedures and clear guidelines provided by the Department of Economic Development (DED) make the setup process efficient and hassle-free.
6. Cost-Effective Setup
Setting up a business with a professional license is generally more cost-effective compared to other types of licenses. The lower setup and operational costs make it an attractive option for entrepreneurs looking to establish a business in Dubai without significant upfront investment.
7. Wide Range of Business Activities
These can include consultancy, IT services, marketing, legal services, educational training, and more. This versatility enables entrepreneurs to explore various service-oriented business opportunities.
8. Credibility and Reputation
Clients and partners often view licensed professionals as more reliable and trustworthy, which can lead to increased business opportunities and partnerships.
9. No Minimum Capital Requirement
This benefit reduces the financial burden on entrepreneurs, allowing them to allocate their resources more effectively towards business operations and growth.
10. Potential for Future Expansion
As your business grows, you can easily scale up your operations, hire more employees, and even diversify your service offerings to cater to a larger market.
Steps to Get a Professional License in Dubai
Step 1: Define Your Business Activities
The first step is to clearly outline the professional services you intend to offer. Dubai’s Department of Economic Development (DED) has a list of over 2,000 activities. Ensure your chosen activities are listed under professional services.
Step 2: Choose a Business Name
Select a unique and appropriate name for your business. The name should reflect your professional services and adhere to the naming guidelines set by the DED. Ensure the name is not offensive or blasphemous and does not replicate existing business names.
Step 3: Submit Initial Approval Application
You need to submit an application for initial approval to the DED. This includes:
- A completed application form
- Copies of passports and visas of shareholders
- A no-objection certificate (NOC) from the current sponsor (if applicable)
Step 4: Draft and Notarize the Memorandum of Association (MOA)
For a professional license, the MOA must be drafted and notarized. The MOA outlines the business activities, capital investment, and profit-sharing ratio among partners.
Step 5: Lease Office Space
Leasing office space is mandatory for obtaining a professional license. You can choose a physical office or a virtual office depending on your business needs. Ensure you have a tenancy contract and EJARI registration.
Step 6: Finalize the License Application
Submit the final application along with all required documents to the DED. This includes:
- Initial approval receipt
- MOA
- Tenancy contract and EJARI registration
- Passport copies and photos of shareholders
- Trade name reservation certificate
Cost of a Professional License in Dubai
The cost of obtaining a professional license in Dubai can vary based on several factors. Starting price of Professional License in Dubai is AED 10,405*.
Here are the key costs involved to setup business in Dubai:
- Initial Approval Fee: AED 1,000 – AED 3,000
- Trade Name Reservation Fee: AED 620 (additional fees for foreign names)
- Drafting and Notarizing MOA: AED 2,000 – AED 4,000
- License Issuance Fee: AED 10,000 – AED 15,000
- Office Space Lease: AED 20,000 – AED 50,000 (depending on location and size)
- Visa Fees: AED 3,000 – AED 5,000 per visa
Overall, the cost of starting a professional business in Dubai can range from AED 35,000* to AED 80,000* depending on various factors.
Calculate your business setup cost.
How Infibiz Can Help You Get a Professional License
Infibiz offers expert guidance and support throughout the process of obtaining a professional license in Dubai. Our services include:
- Business Activity Consultation: Helping you choose the right activities.
- Name Reservation Assistance: Ensuring your business name meets regulatory standards.
- Document Preparation and Submission: Handling all paperwork and submissions to the DED.
- MOA Drafting and Notarization: Assisting with the drafting and notarizing of your MOA.
- Office Space Solutions: Finding and securing the perfect office space for your business.
- Visa Processing: Managing visa applications for you and your employees.
Conclusion
Securing a professional license in Dubai is a strategic move for entrepreneurs looking to tap into the city’s dynamic market. Understanding the process and associated costs is crucial for a smooth setup. Infibiz is here to make your journey easier by providing comprehensive support and expertise in business setup in Dubai. Contact us today to get started on your professional license application and take the first step towards establishing your business in one of the world’s most vibrant cities.
Book Free Consultation with Infibiz’s Experts.
*License & costs can vary depending on multiple factors including business activities, company size, and additional approvals required.
