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Exploring the Professional License in Dubai, UAE
Obtaining the appropriate license tailored to your business activities is crucial when launching a business in Dubai. A valid license serves as a fundamental requirement for commencing operations in the city. Dubai offers four main categories of licenses based on the type of business:
1. Professional License
2. Commercial License
3. Industrial License
4. Tourism License
If you’re considering starting a business in Dubai, a professional license is a prerequisite.
A professional license enables professionals to establish businesses in the Emirates, granting them permission to operate in specific industries such as carpentry, artisanal work, consultancy services, printing and publishing, beauty salons, repair services, and more. Unlike other trade licenses, the professional license is tailored to professions that rely on intellectual or artistic talent.
This type of license can be obtained by individuals or single-ownership companies engaging in professions that deliver services based on their intellectual or artistic abilities. However, if the business has multiple owners, it is categorized as a civil company.
What Constitutes a Professional License?
A professional license is issued to individuals and companies engaged in professional or service-oriented activities.
In the UAE, obtaining a professional license is essential for establishing a professional firm that offers services to customers. This license grants eligibility to conduct the specified activities officially. Additionally, having a licensed professional firm registered with the relevant authority ensures documentation of the business, which can be invaluable in navigating legal complexities or resolving disputes.
What Are the Key Facts About a Professional License?
When considering ownership rights for foreign investors, the Professional License holds a distinct advantage over Commercial and Industrial Licenses. Foreign investors can attain 100% ownership of their business, enabling them to operate as a sole proprietorship. Professional Licenses in the UAE are granted based on the educational qualifications and expertise of the applicant.
However, despite enjoying full ownership rights, foreign investors are required to appoint a local service agent to fulfill legal requirements. The local service agent does not hold any claims or rights regarding the equity or operations of the company; their role primarily involves facilitating legal procedures. The investor is responsible for paying the annual service charge for utilizing the agent’s services.
The Department of Economic Development (DED) oversees the processing and issuance of Professional Licenses in Dubai and the UAE.
How to Obtain Initial Approval for a Professional License
To obtain initial approval for a professional license in Dubai from the Department of Economic Development (DED), you must submit a detailed report outlining the business activities you intend to undertake with this license. Additionally, select a relevant trade name for your business and register it. DED will grant approval for the license after verifying the submitted documents.
It’s important to adhere to strict naming rules when finalizing your trade name:
– Avoid using the name of an already established entity.
– Refrain from using offensive or blasphemous language.
– Avoid using abbreviations.
What Documents Are Required to Obtain a Professional License in Dubai?
The necessary documents for obtaining a professional license are outlined below:
1. Completed application form
2. Passport copy of the owner/partner
3. Copy of the partner’s naturalization book
4. No Objection Certificate (NOC) from sponsor for expatriate partners
Upon submission of the application to the Department of Economic Development (DED), you must also provide certificates and documents verifying your professional qualifications and experience. DED officials will review these certificates and documents before issuing the professional license.
What is the Fee Structure for a Professional License in Dubai?
The total cost associated with acquiring a Professional License in Dubai is approximately AED 12,200. This total cost encompasses various service charges, including:
– License Fees
– Administrative service charge
– Agent fees
– Trade name fees
– Market fee based on tenancy
– Government cultural fees, etc.
Please note that the actual cost of a professional license in Dubai may vary over time. The provided figure serves as an approximation.
Obtaining a Professional License in Dubai may entail some complexity and time investment. However, seeking assistance from an experienced business consultancy can streamline these procedures. Bizvise is a seasoned professional business consultancy that has supported numerous organizations in obtaining Professional licenses in Dubai. We are dedicated to assisting you in acquiring licenses tailored to your business requirements. For further inquiries, please reach out to us.
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