Starting a business in Dubai can be a lucrative endeavor, but navigating the licensing requirements can be complex. One of the key licenses you’ll need to obtain is a Professional License, which allows individuals and companies to legally provide their specialized services in Dubai. In this comprehensive guide, we will walk you through everything you need to know about obtaining a professional license in Dubai, from the types of services that require a license to the application process and the benefits of holding a professional license.
Table of Contents
- What is a Professional License in Dubai?
- Industries and Services Requiring a Professional License
- Ownership and Share Capital
- Application Process for a Professional License
- Required Documents for a Dubai Professional License
- Cost of a Professional License in Dubai
- Benefits of Having a Professional License
- Frequently Asked Questions about Professional Licenses in Dubai
- How Adam Global Can Assist You
- Conclusion
1. What is a Professional License in Dubai?
A professional license, also known as a business license, is a legal document issued by the Department of Economic Development (DED) in Dubai. It allows individuals and companies to provide specialized services in their respective industries. The professional license is specific to service-oriented professions and is granted based on the applicant’s educational qualifications and expertise in their field.
Obtaining a professional license is essential if you plan to offer professional services in Dubai. It not only validates your credentials and expertise but also ensures that you comply with the industry standards and regulations set by the UAE government.
2. Industries and Services Requiring a Professional License
A wide range of industries and services require a professional license in Dubai. These include, but are not limited to:
- Accountants and Auditing Firms
- Advertising and Marketing Businesses
- Artisanship
- Architectural Consultants
- Banking and Financial Advisors
- Beauty Salons
- Business Consultants
- Carpentry and Furniture Manufacturing
- Cleaning Services
- Educational Professionals
- Entertainment Artists
- Healthcare and Medical Services
- IT and Web Design Services
- Lawyers and Legal Advisors
- Management Consultancies
- Printing and Publishing
- Security Services
These are just a few examples of the industries and services that require a professional license in Dubai. It is important to consult the Department of Economic Development or a business setup consultant to determine if your specific profession or service falls under the purview of a professional license.
3. Ownership and Share Capital
One of the key benefits of obtaining a professional license in Dubai is the ability to have 100% ownership of your business. Unlike other business structures in the UAE, such as commercial licenses, which require a local partner with at least 51% ownership, a professional license allows foreign investors to enjoy full ownership rights.
Additionally, the share capital required to set up a business under a professional license is lower compared to a commercial license. The minimum share capital for a professional license is AED 150,000, whereas a commercial license requires AED 300,000.
4. Application Process for a Professional License
The application process for a professional license in Dubai involves several steps. Here is a step-by-step guide to help you navigate the process:
- Determine Your Business Activity(s): Firstly, you need to identify the specific business activity or activities that you plan to undertake under your professional license. This will help you determine the relevant licensing requirements and regulations.
- Choose a Trading Name: Next, you need to select a unique trading name for your business. It is important to ensure that the name adheres to the UAE business naming rules and regulations.
- Prepare Required Documents: Gather all the necessary documents for your professional license application. These typically include a completed application form, copies of passports for all owners/partners, Emirates ID and visa copies, and a tenancy contract or Ejari.
- Submit Your Application: Submit your completed application form and supporting documents to the Department of Economic Development (DED). The DED will review your application and conduct any necessary approvals from other regulatory authorities.
- Pay the Fees: Once your application is approved, you will need to pay the relevant fees for your professional license. The fees typically include professional license fees, trade name fees, market fees, administrative service fees, and government cultural fees.
- Receive Your Professional License: After completing the payment, you will receive your professional license, which authorizes you to legally operate your business in Dubai.
5. Required Documents for a Dubai Professional License
When applying for a professional license in Dubai, you will need to submit several documents to the Department of Economic Development. The specific documents required may vary depending on your business activity, but generally include:
- Completed professional license application form (BR1 form)
- Trade name reservation certificate
- Copies of passports for all owners or partners
- Emirates ID and visa copies
- No Objection Certificates (NOCs) from sponsors for foreign partners
- Tenancy contract or Ejari
- Initial approval from relevant authorities for specific activities
It is important to ensure that all the documents are accurate, up-to-date, and comply with the requirements set by the DED.
6. Cost of a Professional License in Dubai
The cost of obtaining a professional license in Dubai can vary depending on several factors, including the type of business activity, the size of the business, and the location. On average, you can expect to pay around AED 10,310 for a professional license. This fee includes various charges such as professional license fees, trade name fees, market fees, administrative service fees, and government cultural fees.
It is important to note that these fees are subject to change, and it is recommended to consult with the Department of Economic Development or a business setup consultant for the most up-to-date information.
7. Benefits of Having a Professional License
Obtaining a professional license in Dubai comes with several benefits for individuals and companies. Here are some of the key advantages:
7.1 100% Ownership Rights & Tax Benefits
One of the primary benefits of a professional license is the ability to have 100% ownership of your business. Unlike other business structures in the UAE, which require a local partner, a professional license allows foreign investors to enjoy full ownership rights. This gives you more control over your business operations and decision-making processes.
Additionally, holding a professional license can provide tax benefits. Dubai has a favorable tax system, with zero personal or corporate income tax. This can significantly reduce your tax liability and increase your profitability.
7.2 High Professional Standards
A professional license is only granted to individuals who possess the necessary educational qualifications and expertise in their field. This helps maintain high professional standards and ensures that businesses operating under a professional license adhere to industry regulations and best practices. It also instills confidence in clients and customers, as they know they are dealing with professionals who meet the required standards.
7.3 Additional Opportunities
Having a professional license opens up a range of opportunities for your business. With a professional license, you can participate in government tenders, apply for loans from financial institutions, and access a wider customer base. Holding a professional license also allows you to sponsor employees, apply for visas for your dependents, and enjoy other privileges while living and working in Dubai.
8. Frequently Asked Questions about Professional Licenses in Dubai
8.1 How do I get a professional license in Dubai?
To obtain a professional license in Dubai, you need to follow the application process outlined by the Department of Economic Development (DED). This involves selecting your business activity, choosing a trading name, preparing the required documents, submitting your application, paying the fees, and receiving your professional license.
8.2 What is the professional license (BR1 form)?
The professional license application form, also known as the BR1 form, is the official document you need to complete when applying for a professional license in Dubai. This form collects information about your business, including the trading name, business activity, location, and contact details. It is important to provide accurate and up-to-date information to avoid any delays or rejections.
8.3 What are the three types of licenses available for Dubai businesses?
Dubai offers three main types of licenses for businesses: professional licenses, commercial licenses, and industrial licenses. Professional licenses are for service-oriented professions, commercial licenses are for trading activities, and industrial licenses are for manufacturing activities.
8.4 What advantages are there to obtaining a professional business license in Dubai?
Obtaining a professional license in Dubai allows you to have 100% ownership of your business, enjoy tax benefits, and maintain high professional standards. It also opens up additional opportunities for your business, such as participating in government tenders and accessing a wider customer base.
8.5 What is the cost of a professional license in Dubai?
The cost of a professional license in Dubai can vary depending on various factors, such as the type of business activity and the size of the business. On average, you can expect to pay around AED 10,310 for a professional license. It is recommended to consult with the Department of Economic Development or a business setup consultant for the most accurate and up-to-date cost information.
9. How CIG Business Setup Can Assist You
Setting up a business and obtaining a professional license in Dubai can be a complex process. That’s where CIG comes in. As experienced business setup consultants, we can guide you through every step of the process, from selecting the right license to completing the necessary paperwork and securing approvals. We have a team of experts who specialize in business formation and can provide you with the support and guidance you need to start your business in Dubai successfully.
10. Conclusion
Obtaining a professional license in Dubai is a critical step for individuals and companies looking to provide specialized services in the city. It not only validates your credentials and expertise but also provides you with the legal framework to operate your business. By following the application process outlined by the Department of Economic Development and seeking assistance from experts like Adam Global, you can navigate the licensing requirements with ease and start your business in Dubai with confidence. So, take the first step towards your entrepreneurial journey and unlock the opportunities that Dubai has to offer with a professional license.
Photo bysatheeshsankaran on Pixabay
The post Professional license in Dubai appeared first on Capital International Group.
This post first appeared on Professional Business Setup Services In Dubai, please read the originial post: here
