Is Professional Services License Worthy in Dubai

Dubai professional services license is specifically required for businesses offering professional services, such as those provided by consultants, engineers, or architects. This license, issued by the Dubai Economic Department, is based on your educational qualifications and area of expertise and allows for 100% ownership for individual professionals.

While single-ownership is most common, businesses with multiple owners can operate as civil companies.

The Department offers diverse license types based on different activities and factors. For example, a commercial trade license is required for trading, while an industrial license is necessary for manufacturing.

Khidmath Corporate Services has extensive experience assisting clients with obtaining both trade licenses and navigating tax consultancy in Dubai.

What is the DED professional license in Dubai?

The DED professional license in Dubai is a specific business license issued by the Department of Economic Development (DED) that allows individuals and businesses to offer professional services within the emirate. These services are typically based on intellectual or creative skills and require a high level of expertise.

Here are some key characteristics of the DED professional license:

• Eligibility: It is primarily requirement for individuals who have a professional degree or certification in their field, along with relevant experience. Some professions may have additional requirements, such as membership in a professional association.
• Ownership: Unlike a commercial license, which requires a local sponsor to hold a 51% stake, a DED professional license allows 100% foreign ownership. This makes it a particularly attractive option for professionals who want to operate their business independently.
• Activities: The specific activities permitted under a DED professional license will vary depending on the profession. However, some common examples include consultancy services, legal services, medical services, engineering services, and design services.
• Benefits: Obtaining a DED professional license offers several advantages, including the ability to work independently, sponsor visas for employees, and access government support programs.

Who needs a DED professional license in Dubai?

A professional license in Dubai is required for individuals and businesses that offer services based on intellectual or creative skills. This includes a wide range of professions, from doctors and lawyers to architects and consultants.

Here are some of the specific types of professionals who need a Dubai professional services license:

• Accountants, auditors, and financial advisors
• Advertising professionals and entertainment artists
• Architectural consultants
• Teachers and educational professionals
• Business consultants
• Lawyers and legal advisors
• Medical representatives
• Carpentry and artisanal activities
• Technical services
• Consultancies
• Printing and publishing
• Internet and web design services
• Beauty salons
• Accounting and auditing companies
• Information technology services

If you are unsure whether or not you need a professional license, it is always best to consult with a business setup specialist in Dubai. They can help you determine the type of license you need and guide you through the application process.

How to get a Dubai professional services license?

Obtaining a professional license in Dubai involves assembling specific documents and completing various application forms. Here’s a rundown of the key elements:

Department of Economic Development (DED)

• The DED is the primary authority responsible for issuing professional licenses for Dubai. You’ll submit your application and supporting documents through their online portal or a designated service center.

Documents Required

• Completed DED application form: This form gathers basic information about your business activity, legal structure, and shareholders.
• Passports and Emirates IDs: Copies of passports for all shareholders and directors of your company, and Emirates IDs if applicable.
• Professional qualifications: Certified copies of your academic certificates, licenses, and any relevant professional certifications.
• Memorandum of Association (MOA): A document outlining the company structure, ownership, and share capital.
• Business plan: A concise overview of your proposed business operations, target market, and financial projections.
• Tenancy contract (Ejari): Proof of your office lease or rental agreement, meeting DED requirements.
• Additional approvals: Depending on your profession, you may need approvals from other authorities like the Dubai Health Authority (DHA) or the Roads and Transport Authority (RTA).

Other Paperwork

• Business name reservation certificate, confirming your chosen business name is available.
• No Objection Certificate (NOC) from your current employer, if applicable.
• Passport-size photographs of all shareholders and directors.
• Bank statements or financial guarantees showcasing your financial stability.
• Legal service agreements, if applicable, like power of attorney or local service agent contracts.

Things to remember

The exact list of required documents may vary depending on your specific profession and chosen legal structure. Ensure all documents are translated into Arabic and attested by the UAE Ministry of Foreign Affairs.

Provide clear, complete, and up-to-date information in all application forms and documents. Seek guidance from a qualified business setup consultant to ensure you have all the necessary documents and comply with all DED regulations.

By meticulously preparing your paperwork and ensuring you have all the required documents, you can streamline the process of obtaining your Dubai professional services license and set the stage for successful business operations.

Cost of Dubai professional services license

The cost of a professional license in Dubai can vary depending on several factors, including the specific type of license you need, the free zone you choose to operate in, and the size of your office space.

However, as a general estimate, you can expect to pay between AED 10,000 and AED 50,000. Here is a breakdown of some of the costs involved in obtaining a professional license in Dubai:

• License fees: The Department of Economic Development (DED) charges a fee for each type of professional license. For example, the fee for a consultant’s license is AED 15,000, while the fee for a doctor’s license is AED 25,000.
• Service agent fees: You are required to appoint a local service agent who will act as your sponsor and handle all of the paperwork involved in obtaining your license. Service agent fees typically range from AED 5,000 to AED 10,000 per year.
• Visa fees: You will need to obtain a residence visa for yourself and any employees you bring with you. The cost of a residence visa starts from AED 3,250 per year.
• Office space: You will need to rent office space in a mainland or free zone. The cost of office space will vary depending on the size and location of your office.

Can a professional license company have 100% ownership?

Yes, under certain conditions, a professional license company can have 100% foreign ownership in Dubai. This policy was implemented in June 2021 as part of the UAE’s Commercial Companies Law amendments.

Here’s what you need to know:

100% ownership is allowed

• Foreign investors and professionals can now own 100% of shares in a professional license company, without requiring a local Emirati partner.
• This applies to most professional activities, including consultancy, engineering, design, and many more.

Local service agent (LSA) required:

• While there’s no Emirati shareholding requirement, you will need to appoint a Local Service Agent (LSA).
• The LSA acts as a liaison between your company and the government, assisting with paperwork and procedures.
• They do not hold any shares or have any decision-making power in the company.

Specific activities may have limitations:

• Some sensitive professional activities like legal services, accounting, and auditing might still require a minimum local partnership percentage.
• It’s important to check the specific activity you want to operate under and its associated regulations.

Professional license verification in Dubai

Professional license verification is an essential process for individuals and companies operating in Dubai. It is a mandatory requirement to ensure that professionals practicing in the city have the necessary qualifications and skills to perform their jobs.

In this section, we will discuss the process of professional license verification in Dubai and the importance of conducting regular checks.

Understanding the process

The first step in professional license verification is to understand what it entails. In simple terms, it is a process of verifying the authenticity and validity of a professional’s license issued by the relevant regulatory authority.

In Dubai, there are various regulatory bodies responsible for issuing licenses based on the profession, such as healthcare, engineering, legal services, etc. These authorities set specific criteria that applicants must meet to obtain a valid license.

Protecting consumers from fraud

One of the main reasons why professional license verification is crucial in Dubai is to protect consumers from potential fraud or malpractice.

With rapid economic growth and increasing demand for skilled professionals, there has been a rise in fake documents and forged licenses being used by unqualified individuals.

This can pose a significant risk not only to consumers but also to the reputation of businesses hiring these individuals.

Legal compliance for businesses

Moreover, conducting regular checks on employees’ or partners’ licenses can help companies avoid legal complications and penalties imposed by authorities if they hire unlicensed workers.

The UAE government has strict regulations in place for businesses that employ workers without valid permits or licenses.

It could result in fines up to AED 50,000 per unlicensed worker and even cancellation of business permits.

Methods of verification

To conduct a professional license check in Dubai, one can either go through government portals or use third-party service providers who specialize in this area.

The government portals provide access to databases where one can search for an individual’s name or company registration number to verify their license status.

However, using third-party services offers more convenience as they provide comprehensive reports with detailed information about the validity of licenses along with any disciplinary actions taken against the licensee.

Maintaining quality and integrity

Professional license verification is a crucial process in Dubai that helps maintain the quality and integrity of services provided by professionals. It also ensures transparency and accountability in the workforce, benefiting both consumers and businesses.

As the city continues to grow, it is essential to conduct regular checks and stay updated with any changes in license status to avoid any legal or reputational consequences.

Conclusion

Obtaining a professional license in Dubai may seem like a complex undertaking, but with proper preparation and knowledge, it can be a smooth and rewarding experience.

By understanding the types of licenses, general requirements, and specific profession-related needs, you can navigate the process efficiently and set yourself up for success in your Dubai professional journey.

For further inquiries or to initiate the process, please contact us via email at ask@khidmath.ae or call us at +971-582-955227. We look forward to the opportunity to assist you in achieving your business goals.