Professional License in Dubai, UAE
Dubai is a global business hub, consisting of diverse sectors. Considering the diverse business and civil dynamics, professional services are always in demand. If you’re an expert in a certain field, starting your business through a professional license could be very beneficial in Dubai. A professional license allows field experts to begin offering their services in the market as a business.
Why get a professional license in the Emirate of Dubai?
- Legally operate a specific business activity
- Build trust with clients and authorities
- Access government contracts and tenders
- Open corporate bank accounts easily
- Sponsor visas for employees
This license is regulated by the Department of Economic Development (DED) and can be acquired through a structured process. The total cost can be around AED 10,000 to 15,000, depending on several variables.
This guide walks you through everything you should know about professional licenses in the UAE before setting out to start the process of acquisition. It will help you avoid any challenges and complications along the way.
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Trade Name Reservation in Dubai and Other Emirates
In Dubai, the Department of Economy and Tourism (DET) is in charge of trade name reservation. You can apply online through the website or visit a service center. The name must follow certain rules. It can’t be too similar to another business or include certain restricted words. Once approved, your trade name will be reserved for 6 months.
Abu Dhabi’s Department of Economic Development (ADDED) manages trade name reservations through the TAMM platform. You can check if your desired name is available and reserve it online. The process is fast and simple. After your name is approved, it will be held for 6 months, giving you time to finish the business setup steps.
In Sharjah, the Economic Development Department (SEDD) is responsible for trade name reservations. You can do it online or go to one of their offices. The system checks if the name is unique and follows Sharjah’s business naming rules. Once approved, your name will be reserved, usually for 6 months, and you must complete your license within that time.
Ajman’s Department of Economic Development (Ajman DED) handles the trade name process. You can reserve a name online or in person. Their system checks if the name is already taken and if it follows Ajman’s naming guidelines. Once approved, the name is held for 6 months, and you can renew it if you need more time to start your business.
In Fujairah, the Department of Industry and Economy manages trade name registrations. You can check if your chosen name is available and apply either online or at their service centers. Once your name is approved, it will be reserved for a limited period, usually up to 6 months, so you can continue with licensing.
RAK’s Department of Economic Development (RAK DED) offers an online system to reserve trade names. It allows you to search and apply for available business names quickly. If your name is approved, it will be reserved for 6 months, and you’ll need to complete your license application during that time.
The Department of Economic Development in Umm Al Quwain provides both online and in-person trade name registrations. The name you choose must follow their rules and not match any existing businesses. Once approved, the name will be held for a few months, giving you enough time to complete your business registration.
Steps to Get a Professional License in Dubai
The Department of Economic Development has a list of approved activities you can choose from. Choose the ones relevant to your plans and see whether those activities require a professional trade license or not.
There are different legal structures you can go for depending on your business goals and ownership preferences. Most common structures include limited liability company (LLC) and sole proprietorship.
Reserve a trade name for your business that you like. You have to be mindful of the norms and culture of the country. Besides, it should be unique to avoid stirring confusion with any other establishment.
Submit your plans along with the required documents and information for initial approval. This ensures that the UAE government doesn’t have any issues with your company formation.
Explore different locations available for your setup. Select the most suitable to your business operations and plans. Finalize the lease agreement and make the payment.
A local service agent (LSA) is an Emirati national who deals with the government processes on your behalf in exchange for an annual fee. Find a reliable LSA and finalize an agreement
Some sectors or activities may require extra approvals from different institutions or authorities. Check if your business plan needs any additional approvals and get those if necessary.
Submit the final set of documents. Ensure all the documents are valid and complete. Also, submit the required fee on time. Making a mistake in this step can cause many delays or even rejection of the application.
The DED will review your application. If it is accepted, you will receive your trade license in Dubai, allowing you to successfully start your business operations.
Who Needs a Professional License?
Other common types of licenses include industrial license, commercial license, and industrial license. You have to choose the relevant one while starting a business in Dubai.
Common Mistakes and Solutions
Name Already Taken
Mistake: Picking and being fixated on a that is already taken.
Solution: Always search for the name first using your emirate’s official business portal. Have backup names ready.
Using Restricted Words
Mistake: Adding terms related to religion, politics, or government.
Solution: Stick to neutral, business-appropriate words. Avoid anything controversial or misleading.
Initials or Abbreviations
Mistake: Trying to use names like “A.M. Group” or “M.K. Trading.”
Solution: Use full words or names. Initials are not allowed unless they are part of a registered brand.
Name Doesn’t Match Activity
Mistake: Choosing a name that doesn’t match what your business does.
Solution: If the authority requires it, your name should reflect your main activity (e.g., “Bright Tech Solutions” for an IT company).
Poor Arabic Translation
Mistake: Using incorrect or unclear translations.
Solution: Make sure any non-Arabic names are translated properly. You can use professional help if needed.
Delaying the License Process
Mistake: Reserving a name but not starting the licensing in time.
Solution: Use the 6-month reservation period wisely. If needed, apply for a renewal before it expires.
Benefits of a Professional License in Dubai
100% ownership
Visa sponsorship
Easy bank setup
Tax advantages
Government tenders
Office rentals
Legal protection
Business credibility
Low setup cost
Wide activity range
Eligibility Requirements to Obtain a Professional License
- Relevant degree or diploma in the chosen field
- Professional experience in the intended activity
- Clean criminal record (Good Conduct Certificate)
- Proficiency in required languages for the profession
- Selection of a business operation approved by DED
- Compliance with additional approvals for specific sectors
Required Documents for Business Setup in the UAE
- Copy of valid passport
- UAE residence visa copy
- Recent passport-size photo
- Emirates ID copy (if any)
- Attested academic degree
- Business location tenancy
- Ejari registration paper
- Trade name approval slip
- Initial DED approval form
- MOA for partnerships (if any)
- Local Service Agent (LSA) contract
- External authority clearance
- Filled license application form
Regulatory Details about Professional Companies in Dubai
Cost Structure
The total cost may be somewhere around AED 10,000 to 15,000, depending on several variables. The major expenses include the initial license fee, the LSA fee, name reservation, tenancy contract, and visas. The costs may change over time. Initially, you will have to allocate extra on marketing too.
Renewal
The license is renewed annually in the United Arab Emirates. You have to apply before the expiry along with the required documents, information, and fees. If the date of expiry has passed and you’re late in applying, you will face penalty charges.
Cancellation
You can cancel your license anytime by applying with the required documents, information, and processing fees. Cancellation can be due to many causes. You can choose to change your operations too, by getting a new license if switching sectors.
Get Your Professional License in 4 Simple Steps
Book a Free Consultation
Speak with our experts to assess your business needs and license eligibility.
Leave the Paperwork to Us
We collect, prepare, and organize all your documents with precision.
We Submit the Application
Our consultants fast-track your process through strong links with UAE authorities.
Receive Your License
Get your license and visa delivered. you’re set to launch your business in the UAE!
Why Contact IBG Consultancy for Getting a Trade License in the UAE
IBG Consultancy offers it all and more, including suitable packages for a wide range of preferences. Our years of experience and networks with the authorities help us get you the best packages and processing time. Contact us today to get your professional license smoothly!
Frequently Asked Questions
What is the difference between professional and commercial types for starting a business?
A professional category is for service-based work, while a commercial one suits trading firms.
Can a foreign investor fully control their setup in the UAE?
Yes, full ownership is allowed under certain types of registrations, especially in service sectors.
Is it mandatory to work with a UAE national for certain registrations?
For some formats, yes. A local may be required to fulfill formalities, even without ownership.
How do free zone options compare with mainland registrations?
Free zones offer benefits like 100% ownership and tax perks, but have location restrictions.
What’s the role of business setup consultants in Dubai?
They help with paperwork, approvals, and choosing the right format based on your needs.
Does the Dubai Department of Economic Development handle all approvals?
For mainland businesses, yes. Free zones have their own regulatory bodies.
What factors affect trade license fees in Dubai?
Costs vary based on activity type, location, and extra approvals needed for your operation.
When is a commercial license in the Emirate of Dubai more suitable than a service one?
If your business operations involves selling goods or tangible items, this is the better option.
Can the license be owned by a UAE national and operated by an expat?
Yes, many formats allow shared roles, ownership by locals and daily operations by expats.
Why do many choose to work with consultants in Dubai for registration?
Experts streamline the process, prevent mistakes, and save time when setting up operations.
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