Professional license in Dubai, UAE [2024 Guide]

Professional License in Dubai

Table of Contents

A professional license in Dubai suits service provider businesses. In Dubai, Businesses have categories of different license types by Dubai Economic Development (DED). For example, all service-oriented businesses fall under professional licenses. Trading businesses fall under commercial licenses and general trading licenses.

Moreover, manufacturing businesses fall under industrial licenses. Likewise, freelancing, warehousing, and blockchain-related licenses are available in Dubai. Your business activity determines your type of license.

What is a professional license in Dubai?

A professional business designs and offers services to the end user without physical products. Examples of such businesses include an IT company designing and selling software, cleaning services, and a doctor offering services to patients. A limited liability company setup has the benefit of limited liabilities for shareholders. All of them require this license to operate in Dubai.

Benefits of Dubai Professional License

This license type is the best option for business owners dreaming of running a professional activity in Dubai.

Let’s explore the main advantages of having this license in Dubai UAE:

  • 100% business ownership
  • Low operational costs
  • Allows a wide range of business activities
  • Enables to engage with multiple clients and markets
  • Access to a corporate bank account
  • Allows to apply for visas, licenses, and labor quotas.

What are the Requirements for a Professional License in Dubai?

Professional license is the main category of a services activity list and under professional license, there are a number of business categories. Each Category is specific and different than others, Let’s segregate these categories into two licenses.

1. Professional license with external approval

The applicant for the license must be qualified to get approval from the Dubai government authority. For example, a doctor wanting to open a clinic must be qualified to get approval from the Dubai Health Authority. Then, they can get their license.

Investors who wish to open a rental car company must obtain approval from the Road and Transportation Authority (RTA). Food-related businesses need approval from the food control authority to get their license. Approval may require passport copies and a tenancy contract.

2. Professional license without external approval

In this category, the applicant does not need approval from a government body to get a license. These professions include IT, software development, accounting, and many more.

Consult with the RFZ Corporate Service Provider team to briefly explain your business license before choosing an activity to register your license in Dubai.

How to get a Professional License in Dubai?

RFZ has made the license registration process easy. First, decide on a trade name and submit it to the RFZ team. They will get the necessary approvals from the relevant authority.

Once the name is registered, the RFZ team will apply for initial approval of license registration. If there is no need for external approval, the RFZ team will immediately obtain the license.

Dubai Professional License Registration Process:

How to get professional license in Dubai

 

  1. Name Approval
  2. Initial Approval
  3. License Issuance

Timeline of the professional license in Dubai

The timeline of this license varies according to free zones and the mainland. However, the average time is 2 to 3 days without external approval. However, getting this license in mainland Dubai takes only one day without external approval.

What is the cost of a professional license in Dubai?

There are various business activities under the Department of Economic Development. The cost of each activity is different. Many factors determine the professional license cost, including:

  1. Type of business activity Second
  2. Authority for External Approval
  3. Local Service Agent Fee
  4. Physical office

These four factors can help you evaluate the cost of a license. Still, it is better to consult with experts such as RFZ CSP. They can give you the exact cost of your license in Dubai.

FAQ’s

1. Is a professional license mandatory to offer Services in Dubai?

Getting this license in Dubai is mandatory before starting a business that offers services within Dubai. Otherwise, it is illegal and can lead to a penalty or legal action by the concerned authority.

2. What is the difference between commercial and business licenses in Dubai?

Any physical product trade-related activities are licensed commercially, and any service-related business in the UAE is licensed professionally.

3. Is it possible to add more than one business under a professional license?

If the activities are in a similar group, we can add them under the same business license. However, you cannot add activities under one business license if activities are from a different group. Some free zone authorities have made a few exceptions. We always recommend dealing with our expert team to streamline the license registration process in Dubai.

4. Where a professional license can be registered?

A Professional license can be registered in the free zone of Dubai or Dubai Mainland. Understanding the business structure before choosing between the free zone and the mainland is essential. Therefore, it is always advisable to consult with our expert team to decide on the right place to register for a license in Dubai.

5. How often would you actually need to Renew Professional License in Dubai?

You must renew your license annually in Dubai to maintain everything related to it. For example, immigration, banking, employees, and office space. A nonrenewal of the license may cause a penalty from the government.

6. What is a Local Service Agent?

The local service agent is a UAE national holding a UAE passport. A local service agent is mandatory to get a license for professional activities.

7. What are the obligations of the Local Service Agent?

The local service agent does not make decisions for a company in Dubai holding a professional license. The expat investor has complete ownership of the business and total control over management. The local service agent is only a silent partner, and the business owner can replace them if necessary. The local service agent is entitled to receive agreed-upon compensation every year, which is mentioned in the service agent agreement.

8. Which documents do you require to apply for a professional license in Dubai?

To get your professional license, you need application form, passport copies of the partners and external approval if required.

Conclusion:

A free zone authority or the Department of Economic Development issues a professional license according to the specific business activity. It is a service-based license. Therefore, each activity is particular to each business.

Choosing a business activity and the right area for business setup is a complex matter. Professional advice is necessary to navigate the challenges of license registration in Dubai.

Schedule a consultation with RFZ CSP. Our specialist business setup consultants will guide you through the process and make your journey of success in the Dubai market seamless.

For a free consultation, contact us at +971 4 589 0815. You can also send us a WhatsApp message at +971 4 589 0815 or email your questions to info@rfz.ae. We are here to assist you!

 

Imran Dar
Imran Dar

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