The Department of Economic Development (DED) provides different types of licenses for different businesses in Dubai. For trading activities, it is commercial license; for manufacturing activities, it is industrial license; and for professional activities, a professional license is issued to the companies. However, in this article, we will concentrate on everything that you need to know about DED professional license in Dubai.
What is a DED professional license?
Businesses in Dubai that seek to carry out service-related operations must get a professional license. Only the Department of Economic Development can issue the license (DED). Only individuals who have a professional degree and a lot of expertise in a certain field are eligible for this license.
Entrepreneurs in Dubai frequently hesitate between requesting a commercial license and a professional license. In Dubai, there are several company ventures that could be eligible for both professional and commercial license’s.
Who needs a DED professional license in Dubai?
Every commercial or business activity only requires a trade license in Dubai to operate. The DED has designed an administrative system that segregates the diverse sectors into different licensing options. Hence, providing better regulatory and constructive facilitates. But it is important that you choose the right trade license for your company setup in Dubai.
Besides, any company or individual with trained skills can be termed as a professional. Individuals and companies that require a DED professional license in Dubai include the following:
- Accountants, Auditors, and Financial Advisors
- Advertising Professionals
- 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
- Management Consultancies
- Healthcare and Medical Services
This is the most common list describing the activities for which a professional license is required. Moreover, the long list of activities under a professional license can be picked up from any Department of Economic Development website or office. Furthermore, to make things easier, it is best to consult a business setup company that helps you decide accurately which business license in Dubai would best suit the nature of your business.
How to Get a Professional License in Dubai?
Obtaining a professional license in Dubai involves several steps. Here’s a step-by-step guide:
1. Identify Your Professional Activity
Choose the specific professional activity you intend to offer in Dubai. This could range from consulting services, legal or accounting services, medical services, IT services, etc.
2. Verify Licensing Requirements
Ensure that the activity you choose requires a professional license. Check with the Department of Economic Development (DED) or a business setup expert at Shuraa for any specific requirements.
3. Select a Business Name
Choose a trade name that adheres to Dubai’s naming conventions. It must reflect the nature of your business and avoid any offensive or religious terms. Submit your chosen name to the DED for approval and reservation.
4. Gather Required Documents
Prepare the necessary documents before you apply for a license, this may include:
- Passport copies
- Visa copies
- Emirates ID (if applicable)
- Degree certificates, diplomas, or certifications
- Business plan
- Financial documents
- No Objection Certificate (NOC), if required
- Valid tenancy contract (Ejari)
5. Apply for a Professional License
Submit the completed application form along with all required documents to the DED or a relevant free zone authority. The DED will review your application, and additional approvals may be needed from external authorities, depending on your professional activity.
6. Pay the License Fees
Pay the required fees to the DED or relevant authority. This includes the license fee, trade name registration fee, and other administrative charges.
7. Professional License Issuance
Upon successful review and approval, the regulatory authority will issue your professional license. You will receive a physical license card or a digital certificate.
8. Renew the License Annually
A professional license in Dubai is valid for one year and must be renewed annually. Ensure that all relevant documents and fees are submitted on time to avoid penalties.
Department of Economic Development (DED)
The Department of Economic Development issues the professional licenses in Dubai. Hence, dealing with the Dubai DED on a regular basis is essential. Though getting a professional license in Dubai with the DED is easy, this is the process one has to follow. The DED will charge a fee and a security deposit may be required under certain circumstances. Also, the BR1 form, name reservation certificate, tenancy contract, and EJARI registration certificate need to be submitted to the DED. A more efficient way to handle the paperwork and DED formalities is to get them done by professionals or a business setup company. Since, this speeds the licensing process and works out to be more cost-effective.
Cost of a Professional License in UAE
The cost of obtaining a professional license in Dubai ranges from AED 15,310* to AED 28,500*, which includes various fees such as:
- Professional license fees
- Trade name fees
- Service agent fees
- Market fees (depending on tenancy)
- Government cultural fees
- Administrative service fees
- Local fees
These fees may vary based on the nature of your business, location, and specific requirements. For the most accurate breakdown, it’s essential to consult with a Shuraa business setup expert.
Can a Professional Company have 100% Ownership?
The most advantageous aspect of a DED professional license is that it allows you 100% ownership of your business in Dubai. Companies with trade licenses other than a professional license are to partner with a UAE national. As per UAE law, the UAE national will hold 51% shares in the business while the foreign partner will hold the remaining 49%.
With a professional license, you will only need an agreement with a local service agent to whom you have to pay an agreed fee annually. But the ownership remains with you alone. Companies holding a professional license in Dubai need a local agent for all government-related proceedings. However, with Shuraa Business Setup, we will act as your local service agent, creating an agreement that will safeguard your investment and ownership.
If you want to know how to ensure the security of your business in Dubai so that you can operate with complete autonomy, contact Shuraa Business Setup. You can also book your free business setup consultation today! Call us on +97144081900 or WhatsApp us at +971507775554. You may also email us at [email protected] or visit www.shuraa.com to learn more about our product portfolio.
