Dubai’s booming economy and strategic location make it an ideal hub for professional services. Whether you are an individual consultant, a small firm, or a multinational corporation looking to offer professional services in sectors like healthcare, engineering, or legal consultancy, obtaining a Professional Service License is a crucial step. This article delves into the details of Professional Service Licenses in Dubai, offering insights into their features, advantages, and the application process.
What is a Professional Service License?
A Professional Service License allows individuals or companies to provide professional or artisanal services in the United Arab Emirates (UAE). This license is particularly suitable for service-oriented businesses where the primary asset is the skill or talent of the owner or employees, such as consultancies, healthcare providers, or legal services.
Key Features
Ownership Structure
For businesses operating in Dubai’s mainland, a local sponsor is typically required, who holds 51% of the shares in the company. However, it’s worth noting that the profit and loss distribution can be different from the shareholding pattern. In Free Zones, 100% foreign ownership is usually allowed.
Range of Activities
The Professional Service License covers a broad spectrum of activities like consulting, healthcare, teaching, legal advisory, and more. However, some services, like legal and medical services, may require additional approvals from specific governmental bodies.
No Capital Requirement
In most cases, there are no minimum capital requirements for obtaining a Professional Service License, making it easier for startups and SMEs to enter the market.
Business Operations
Unlike commercial or industrial licenses, a Professional Service License allows you to offer specific services only and does not permit any sort of trading or manufacturing activities.
Eligibility and Documentation
The documentation required for a Professional Service License usually includes:
- Application form
- Business plan
- Owner’s passport copy
- Owner’s resume or professional credentials
- No-Objection Certificate (NOC) from the owner’s current UAE residence sponsor, if applicable
Some activities may require additional documents, such as educational certificates, professional accreditation, or special approvals from governmental bodies.
Steps to Obtain a Professional Service License
- Initial Approval: Obtain initial approval for your business activity and company name from the Dubai Department of Economic Development (DED) or the respective Free Zone authority.
- Select Location: Choose a business location that aligns with your target customer base and complies with the regulations for professional service providers.
- Compile Documents: Prepare all necessary documentation, which may include notarized copies of certain documents.
- Submit Application: Submit the application form along with the required documents and fees to the appropriate governmental authority.
- Obtain License: After verification and approval, you will be issued the Professional Service License, allowing you to commence operations.
Regulatory Compliance
Holding a Professional Service License requires adherence to various regulations, including regular renewal of the license, maintaining accurate business records, and fulfilling any additional compliance measures dictated by the nature of the professional services being offered.