Professional License in Dubai: A Complete Guide for 2024

What is a professional license in Dubai?

A professional license in Dubai is issued for businesses that provide specialized services. Unlike commercial licenses, which focus on trading goods, professional licenses cater to service-oriented activities based on the expertise or skills of the business owner. This license type is ideal for individuals or companies offering consultancy, education, IT services, and other professional services.

Key differences from other license types include the focus on service provision rather than trading activities and the potential for unlimited liability unless the business is registered as a Limited Liability Company (LLC). Also, if registered as solo entrepreneurship, a company with the professional license may need a local service agent which is explained in more detail later.

If you're unsure about the type of license your business needs in Dubai, start by reading our article on the differences between commercial and professional licenses. For a customized business setup solution in the UAE, approach a business consultant in Dubai.

Choosing the right type of license and business activity is crucial, as mistakes can disrupt your business journey in the UAE. These errors may hinder your ability to grow and expand your business or cause complications during the bank account opening process.

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

A professional license in the UAE, issued by the Dubai Economic Department (DED), is tailored for businesses in the service sector. 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, business owners have unlimited liability for debts unless the company operates as a Limited Liability Company (LLC).
• Ownership: Full foreign ownership is allowed. Sole establishments 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. 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.
3. Reserve a trade name with DED: Choose a unique business name and register it with the Dubai Economic Department (DED).
4. Prepare a Memorandum of Association (MoA): Draft the MoA, outlining the company’s structure and activities.
5. Submit the application to DED: File the necessary documents with DED for initial approval.
6. Finalize tenancy and Ejari registration: Secure an office space and complete the Ejari (tenancy contract) registration if applicable.
7. Obtain initial approval and complete final registration: After DED’s approval, finalize the registration and receive your professional license.

Required documents for a Dubai professional license

• Completed application form.
• Passport copies of the owner and partners.
• Proof of trade name reservation.
• MoA.
• Ejari registration (if required).
• Specific documents for regulated activities, such as educational certificates for certain professions.

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 office requirements. 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 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.

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.