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Establishing a business in Dubai means applying for the correct license. Issued by the Department of Economic Development (DED), these industry-specific licenses vary according to the activities each one permits.
A commercial license would be issued to a company that engages in any kind of trading activity, while an industrial license would be issued to a company that engages in manufacturing or industrial activity.
The third type of license available is the professional service license. Sometimes referred to simply as a professional license, this type of license is issued to service providers, professionals, artisans and craftspeople.
Examples of professions recognised within the professional service license could include doctors, lawyers, engineers and accountants.
Unlike a limited liability company structure, which requires a local partner to hold a 51% stake in the business, a professional service license allows the foreign investor to retain 100% ownership in their new company in Dubai.
Also known as a sponsor, this local service agent has no direct involvement in the business, but takes care of all communication with government departments. This may mean obtaining relevant visas and applying for necessary licenses.
With a professional service license, the business is free to practise its given professional services anywhere within the UAE, including in the free zones. There are no restrictions on where the business buys or rents office space, and there is no minimum capital requirements.
Professional Service License Essential Info
To obtain a professional service license, an office space is required, as the DED does not generally recognise virtual offices. Also, the business owner is personally liable for business debts and any other financial obligations.
It’s also worth pointing out that if there is more than one owner within the professional service license, the structure becomes a civil company. If a civil company specialises in engineering, the business must have a 51% local partner that is also an engineer within the same field.
Setting up a business in an unfamiliar country can seem daunting. There are regulations and processes that likely don’t exist at home, which can make it difficult to know exactly what needs to be done – and in what order.
This is where Fusion Middle East excels. Confident and dynamic, our team uses its local skills and expertise to ensure your business is set up correctly, following all processes and procedures as set out by UAE law.
We will handle all necessary paperwork, obtaining licenses and visas as required, ensuring all boxes are ticked, so you can concentrate on the day-to-day running of your business, while retaining full control.
For a trustworthy and transparent service, that offers all the support and guidance you need to succeed in your new business in Dubai, contact Fusion Middle East today on 00 971 4381 7333. Arrange your free, no-obligation consultation and find out exactly what we can do for you.