Acquiring a Professional License in Dubai
The Emirate of Dubai has long been known for its pro-business environment and efforts to attract foreign investments by allowing individuals to establish commercial activities in the UAE. As a result, Dubai has become a popular destination for entrepreneurs and business executives who want to sell goods and services outside of their home country.
One of the primary aspects that makes Dubai a desirable business location is its favourable tax system, which gives enterprises a competitive advantage over competitors in other locations. To start a business in Dubai, however, one needs obtain a valid licence that is specific to their type of business.
What is a Free Zone in Dubai?
An investor can have a specific tax fee status and trade rules such that any investor can manufacture items without having to pay customs fees while importing or exporting in a free zone company in Dubai. In order to enable investors to expand their trading prospects, free zones have been developed in Dubai near transit hubs like seaports and airports. In Dubai, free zones have been established in a number of areas, with every free zone accessible for a certain type of commercial activity.
Types of Business Licenses in Dubai
Commercial, industrial, and professional licenses are available in Dubai. Businesses that engage in commerce are granted a commercial licence, whereas those that engage in production are granted an industrial licence. Service providers, artisans, and craftsmen are granted a professional license, allowing them to deliver specialized services to the general public.
You must choose the business activity or activities that your organization will pursue after selecting the free zone. This involves making a choice on the precise goods or services that your business will offer. It is crucial to confirm if the chosen commercial activity is allowed and unrestricted by the free zone authorities.
To get a professional licence in Dubai, the applicant must submit a detailed business plan outlining the proposed business's objectives and scope. This strategy must be produced in compliance with the Dubai Department of Economic Development (DED) requirements. In addition, the applicant must produce a copy of their valid passport, a residence visa, and verification of their educational qualifications.
The DED will analyse the proposed business plan and perform a thorough assessment to ensure that it complies with all regulations and requirements after the application is submitted. If the application is approved, the DED will issue a one-year professional licence that can be renewed annually thereafter.
Firm owners in Dubai must obtain additional permissions and approvals, depending on the type of their firm, in addition to the professional licence. Those wishing to engage in commercial activities, for example, must obtain a trade licence, whereas those wishing to operate a restaurant or café must obtain a food permit.
The business scene in Dubai is dynamic, with several opportunities for entrepreneurs and business executives to create and grow their enterprises. Business owners can achieve long-term success by taking advantage of Dubai's favourable tax structure, access to global markets, and pro-business laws with the proper licences, permits, and permissions in place.
Benefits of Professional License
- In Dubai, a professional licence permits individuals to do business autonomously while adhering to government norms and requirements.
- Unlike industrial and commercial licences, professional licences allow international investors to hold 100% of their company without the need for a local partner.
- Individuals with a professional licence are permitted to work for or provide services to any client, customer, or employer in the UAE, opening up a plethora of business opportunities.
- A professional licence assures clients that the service provider has the appropriate skills and expertise to perform the services they require.
- Dubai's government agencies are in charge of creating industry standards, enforcing legislation, maintaining health and safety, and ensuring that only registered professionals engage in commercial activities, thereby protecting the interests of clients and the general public.
- Individuals who wish to provide services such as consultancy, design, medical services, and other services that require talent and knowledge must obtain a professional licence, ensuring that only qualified professionals are engaged in providing these services.
- Obtaining and maintaining a professional licence displays a dedication to professionalism because it compels persons to achieve particular educational and professional criteria.
- The process of getting a professional licence entail working with the Department of Economic Development, which gives assistance and support to individuals throughout the process.
Importance of Professional License in Dubai
- Dubai is a business powerhouse, and one of the most profitable industries is professional services.
- Individuals who want to provide professional services such as consulting, design, medical, and other services that require talent and knowledge must obtain a professional licence.
- To lawfully conduct business in Dubai, you must have a professional licence.
- It guarantees that the individual has the requisite qualifications and expertise to give services to clients.
- Professional services necessitate the ability to accomplish tasks or projects autonomously while assuring quality and conforming to Dubai government agencies' and authorities' criteria.
- Government agencies in Dubai control industry standards by sector, enforcing legislation, maintaining health and safety, and ensuring that business is performed exclusively by registered experts who adhere to the laws, regulations, and compliances established by the Ministry.
- Professional licences allow foreign investors to hold 100 percent of a company and enjoy the benefits of a sole proprietorship.
- To complete judicial requirements, a UAE national must be appointed as a local service agent. The agent has no direct involvement in the firm, no equity, and is not liable for the company's liabilities.
- Individuals interested in obtaining a professional licence should contact the Department of Economic Development (DED), which is in charge of all license-related activities in Dubai.
- A professional licence entitles the holder to work for or give services to any customer, client, or employer in the United Arab Emirates, as long as the actions are consistent with their qualifications and area of expertise.
Requirements for Professional License
- In Dubai, professional licences are issued by the Department of Economic Development (DED).
- A person must submit the relevant documentation to receive a professional licence.
- To lawfully conduct business in Dubai, you must have a professional licence.
- Passport copies, visa copies, residency permit copies, and other documentation proving the person's skills and expertise are also required.
- Before granting the professional licence, the DED evaluates the application and ensures that the applicant fits the standards.
Professional licence fees in Dubai
In Dubai, the professional licence costs around AED 15,310 and covers the following
- Fees for professional licences
- Fees for service agents.
- Company name fees.
- Market fees (depending on the length of the lease amount).
- Fees for administrative services.
- Cultural taxes levied by the government.
- Fees for local services, etc.
Documents for professional license
To obtain a professional license in Dubai, applicants must provide several documents to the Department of Economic Development (DED)
- Passport Copies of owners or partners as applicable.
- Naturalisation book of a local partner. (Jinsiya)
- A No-Objection Certificate (NOC) is required for expatriates who already possess an employment visa in Dubai.
- Foreign partners must provide a copy of their visit, tourist, or transit visa.
- Depending on the sort of activity, the competent authorities (e.g., the Municipality, RTA, National Media Council, etc.) must first approve it.
Documents Required for Submission of Tenancy Contract to Dubai Municipality
- A mandated application form (BR1).
- The certificate of name reservation.
- Initial DED approval.
- Rental contract.
- Ejari registration.
Responsibilities of Professional License Holders
Adherence to Dubai's Rules and Regulations
Professional licence holders are accountable for adhering to the Dubai government's laws and regulations. They must ensure that all legal requirements, such as registration, licencing, taxation, and any other applicable legislation that relate to their respective sectors, are met.
Quality Services
Professional licence holders are obliged to provide their clients with high-quality services. They must uphold the highest professional standards, such as ethical behaviour, competency, and secrecy. They must ensure that their services meet or surpass their clients' expectations.
Compliance with Ministry Requirements
Professional licence holders must ensure that the services they provide match the requirements established by their respective ministries and government bodies. Medical practitioners, for example, must follow Dubai Health Authority laws, whilst consultants must follow Dubai Municipality regulations.
Industry Standards
Professional licence holders are in charge of managing industry standards in their particular sectors. They must ensure that their services fulfil the highest quality, safety, and professionalism standards. To maintain their competitive edge, they must also keep up with the latest advancements and best practises in their sectors.
Legislation Enforcement
Professional licence holders must follow all necessary legislation and regulations in their respective disciplines. They must also be aware of their legal responsibilities and ensure that the services they provide satisfy the required standards. Furthermore, they must work with government agencies and authorities to ensure that the legislation is enforced.
Health and Safety
Professional licence holders are responsible for protecting the health and safety of those working in their industries. They shall take all necessary efforts to avoid any dangers or hazards associated with their services. They must also follow the Dubai government's health and safety laws to safeguard the safety of their clients and the general public.