Professional License

Who needs a professional license in Dubai?

A professional license is essential for individuals and businesses engaged in specialized, service-based activities. Common examples include:

• Consultants: Management, IT, legal, and marketing professionals.
• Freelancers: Content creators, designers, and software developers.
• Educators and trainers: Offering specialized training programs or academic courses.
• Creative professionals: Artists, photographers, and event planners.

This license is ideal for skilled professionals aiming to establish a reputation in their field. For a complete list of professional license activities in Dubai, please refer to the Dubai Economic Department (DED) website.

Basic info about the professional license in UAE

Professional licenses can be issued by both the mainland and freezone jurisdictions. In Dubai, this is overseen by the Dubai Economic Department. 

Key aspects include:

• Permitted activities: Includes consultancy, IT services, education, legal and management services, and training.
• Qualifications: Usually, no proof of qualifications is necessary, but specific premium activities might require educational credentials.
• Fees: Comparable to commercial licenses; however, premium services could incur additional costs, such as office facility requirements.
• Liability: Typically, companies in the UAE operate as a Limited Liability Company (LLC).
• Ownership: Full foreign ownership is allowed. Companies on the mainland may need a local service agent, who doesn’t hold an ownership stake.
• Share capital: Minimum share capital requirements align with those for trade licenses and often do not require upfront payment.

How to obtain a professional license in Dubai

Steps to get a professional license

1. Decide on the business activity: Clearly define the services you intend to offer.
2. Decide on the jurisdiction where the license will be registered. If it is mainland, then you should check whether a local service agent is required. 
3. Appoint a local service agent (if required): For businesses registered as sole establishments, a local service agent may be necessary. The role of a LSA in a business is administrative and regulatory. They assist with obtaining licenses, permits, and government approvals required to operate in the UAE. However, they do not have ownership, profit-sharing, or decision-making authority in the business.
4. Provide options for a trade name: In the freezone, you send all the options for the company name at the time of the registration and the available option will be selected.
5. Sign a Memorandum of Association (MoA): The authority where the company is registered provides the MoA that guides its activity.
6. Submit the application: File the necessary documents for approval.
7. Obtain approval and complete final registration: After approval, finalize the registration and receive your professional license.

Required documents for a Dubai professional license

• Shareholders passports 
• Photos 
• Shareholders details including emails, address, mobile number 
• Degree/and or portfolio where required 
• Company name options 
• Activities to be registered on the license

Cost of a professional license in Dubai

The cost of obtaining a UAE professional license can vary based on factors such as business activity and the jurisdiction. Typical expenses include:

• License fee: Generally similar to commercial licenses.
• Local service agent fee: Varies based on the agreement.
• Tenancy and registration costs: Applicable if office space is required.
• Additional fees: For premium activities or specific approvals.

To calculate the cost of your professional license, contact a business setup expert in Dubai. They will analyze your specific case, help you choose the right type of license and registering authority, and guide you through the costs and necessary approvals.

Professional license vs professional services in the UAE

In the UAE, both freelancers and professional license holders provide professional services, but it is crucial to distinguish between the two. Freelancers operate under a freelance license (also referred to as a freelance permit), while businesses or individuals with a professional company license enjoy broader opportunities. The primary difference lies in the scope and scale of operations. Freelancing allows for flexibility without the structure of a business, whereas a professional license provides a foundation for growth and expansion.

Freelancing and professional licenses: Key differences

• Scope of services: Both freelance permits and professional licenses cover professional activities such as consultancy, IT services, and design. However, a professional license enables you to scale operations, hire employees, and establish a more structured business entity.
• Ownership: Freelancers hold full ownership of their activities, similar to professional license holders. However, a professional license also offers the option to form a Limited Liability Company (LLC), providing additional legal protection.
• Market position: A professional license signifies credibility and a formal business structure, often viewed as more trustworthy by clients and partners. Freelancers, while flexible, may face limitations in building a substantial market presence.
• Bank account: A freelancer can open a bank account in personal name and does all business transactions in personal name, while as a company you are able to open a corporate bank account.

Whether you're starting small as a freelancer or envisioning growth with a professional license, understanding your business goals will help you choose the right path. For expert guidance, contact Emirabiz to explore your options.

Benefits of professional licenses in Dubai

Dubai offers numerous benefits for professional license holders, including:

• Lower set-up costs: Ideal for small businesses and solo entrepreneurships.
• Employee visas: Ability to sponsor visas for staff.
• Market opportunities: Access to a thriving, service-oriented economy.
• 100% ownership: Full control over your business operations.
• Focus on quality and expertise: Perfect for professionals aiming to build a strong reputation and specialize in high-quality services rather than focusing on scale.

With its business-friendly environment and robust infrastructure, Dubai is an excellent choice for professionals aiming to establish or expand their service-based ventures.

By obtaining a professional license, you unlock opportunities to thrive in one of the world’s most dynamic economies. For expert assistance in the application process, reach out to Emirabiz today.