Dubai is a fantastic place to establish your business if you’re an aspiring entrepreneur or businessperson looking forward to broadening your company’s reach globally. Dubai is a fantastic option for any entrepreneur wishing to launch a business for many reasons, and one of the main reasons behind it is its tax system, which benefits businesses and increases profit margins. While the process of starting a business in Dubai is fairly easy as compared to other nations, a valid license is necessary before you can start your business.
You must obtain a proper professional license in Dubai if you want to work in the country. There are various types of business licenses in Dubai that you may acquire; each type is dependent on the nature of your business and other important aspects of it. That is why hiring business setup consultants in Dubai helps you quickly process your visa application.
In this blog, Infolinks Business Consultants will give you a step-by-step guide to getting a professional license in Dubai.
Don’t forget to read our guide on the new visa rules in the UAE: everything we know so far. The article will keep you updated with the new visa rules and changing policies. You can also directly contact Team Infolinks Business Consultants for the latest updates and information.
Understanding the Types of Professional Licenses
Before we take a look at professional licenses, let us first see the different types of licenses that can be applied for in Dubai. Before you begin your business setup in Dubai, talking to an experienced business consultant will clear your doubts and help you apply for the right type of license.
Professional License
This license is for individuals who provide professional services like doctors, lawyers, engineers, and consultants.
Commercial License
This license is for businesses engaged in trading activities such as grocery shops, spare parts distribution, and similar jobs.
Industrial License
This license is for companies that are involved in manufacturing and industrial activities.
Tourism License
For businesses in the tourism and travel industries.
Freelancer Permit
For individuals who want to work as freelancers in Dubai.
Step-by-Step Guide to Getting a Professional License
Step 1
Research and Plan
Any major step, such as business setup in the UAE, should be backed up with proper research and planning. All your further steps depend on the amount of research you do. You should be clear about which field you want to establish your business or career in Dubai. Later on, you cannot change the nature of your business in the UAE. If you want to change your business, you will have to go through all the licensing procedures from scratch. At this stage, you can hire one of the best business setup consultants in Dubai and make your research work easy.
Do read our guide on how to get an e-version of your Emirates ID in the UAE.
Step 2
Choose the Legal Structure of Your Business
Dubai offers several legal structures for businesses, which are listed below. If you are confused and unsure about which legal structure is best for your business setup in Dubai, then we suggest you hire experts and, with their assistance, choose the option that works best in your favor.
Sole Proprietorship
This structure gives you 100% ownership, but it comes with certain restrictions. If you turn over less and the number of employees is smaller, then this can be best suited for you. All you have to do is hire experienced business setup consultants in Dubai, such as Infolinks, and start your license procedure.
Limited Liability Company (LLC)
This structure allows foreign ownership but requires a local Emirati partner who holds a majority share.
Free Zone Establishment (FZE)
This structure allows 100% foreign ownership but requires setting up in a specific free zone. Free zones have many other added advantages. Learn the difference between the free zone and the mainland in our updates section.
Professional Company
This structure is ideal for individual professionals, allowing 100% foreign ownership and flexibility in working in the UAE.
Step 3
Choose a Company Name
In the UAE, you cannot randomly change the name of your business, which is why in the earlier stages you must choose a name carefully and then, based on it, proceed further with your license application.
Step 4
Finding a Local Partner (only for some business types)
If you choose an LLC legal structure, you will need to find a local Emirati partner. For other legal structures, this step isn’t mandatory. If you already have an Emirati partner, then it will be a smooth process for you. But if you don’t have a partner and need one, a business setup consultant in Dubai can help you with it. This partner will hold a minimum of 51% ownership in the company, though profit-sharing arrangements can be negotiated in the partnership agreement.
Step 5
Apply for Initial Approval
Before you begin the main application process for a business license in Dubai, you will need to obtain initial approvals from various government departments, such as the DED, Dubai Municipality, and the Dubai Health Authority (if applicable to your profession). These approvals ensure that your business complies with local regulations and zoning requirements. When you have all the approvals from local bodies, you can swiftly apply for further licenses and permits.
Step 6
Get an Office Space
To secure your professional license, you must have a physical office space in Dubai. This space should match the specifications provided by the DED. Before you proceed with the license application, you must ensure that you lease a commercial space, obtain a tenancy contract, and ensure it’s approved by the Ejari system. Infolinks can help you get an office space and also help you with the Ejari approval. You can find more information about it on our services page.
Step 7
Pay Fees
Paying the right fees ensures that you get your license in time without any delays or rework. Calculating and paying the right amount can be a bit tricky, which is why working with one of the business setup companies in Dubai can be beneficial to you.
Step 8
Final Step
After the above procedures are compiled, you can then proceed with the final license application process. Get the license within the period given by the authorities, and then start with your business activities.
