Dubai's advantageous location, business-friendly regulations, and tax benefits make it one of the most alluring locations for entrepreneurs and companies. If you’re planning to start a service-based business in Dubai, obtaining a professional license is essential.Everything you need to know about obtaining a professional license in Dubai will be covered in this blog, including the prerequisites, different kinds of licenses, and procedures.
What is a Professional License in Dubai?
Businesses offering services in a variety of industries, such as consulting, education, healthcare, law, and IT, are granted professional licenses in Dubai. Professional licenses are usually granted to people who provide knowledge or services, as opposed to commercial licenses, which are granted to companies that trade and sell items.
For companies that rely on offering a service or skill rather than a tangible good, this licence is essential. A professional license is generally obtained through the Department of Economic Development (DED) in Dubai.
Types of Professional Licenses in Dubai
Freelance Professional License: Freelancing is becoming more and more popular in Dubai. For people who wish to work as independent contractors or consultants in a variety of fields, like media, marketing, or technology, the freelance professional licence is ideal.
Steps to Obtain a Professional License in Dubai
- Choose Your Business Activity - Determining the services you will offer is the first step in acquiring a professional licence. The kind of licence you need will depend on whether the activity is included in Dubai's list of permitted business activities. To determine whether your company qualifies, look through the DED's list of permitted business activities.
- Choose a Business Name - You should use a name for your company that complies with UAE naming conventions. It must not be similar to any company names that already exist in Dubai, be pertinent to your business activity, and refrain from using any derogatory terminology. For the registration of your business, this step is essential.
- Select a Business Location - You must choose a place whether you are opening an office, consulting business, or providing your services remotely. Depending on the nature of your company, a real office space can be necessary, particularly if you operate in industries like consulting or education. For some business kinds, a virtual office can be adequate when working remotely.
- Apply for a Professional License - You can apply for your professional licence with Dubai's Department of Economic Development (DED) after deciding on your company activity and location. You must provide the following documents with the application:
A completed application form
Proof of identity (passport copy)
A local sponsor or service agent agreement (if applicable)
Tenancy agreement (for office space, if required)
Your business plan or professional qualifications
Key Benefits of a Professional License in Dubai
- 100% Ownership: Professionals in Dubai, particularly those in IT or consulting, are able to own their entire company. A local service agent might be required, however unlike other licence categories, a professional licence does not require a UAE national partner.
- Tax Benefits: Dubai provides businesses with tax breaks, such as no withholding tax, no capital gains tax, and no income tax. Because of this, Dubai is a desirable place to establish a business.
- Access to a Growing Market: Dubai is a major international business and commerce hub that draws businesspeople from all over the world. You can reach the expanding market of foreign clients, entrepreneurs, and expatriates by obtaining a professional license.
- Reputation and Credibility: In Dubai's cutthroat economy, a professional licence from the DED is a sign of legitimacy. It gives your services legitimacy and trust, which makes it simpler to draw in customers.