The first step in operating a successful business is to clearly understand your target market, identify the problems your company intends to address, and determine how you plan to address them. If you intend to setup a service-related business in the UAE and GCC region, starting a business in Dubai can be a rewarding experience.
Undeniably, the business ecosystem in Dubai offers many attractive incentives, such as no personal income tax, a low/no corporate tax rate, and 100% foreign ownership for entrepreneurs and businesses of all sizes.
In our 17+ years of experience as a reputable and well-established business setup firm in Dubai owned by Emiratis, one of the biggest challenges faced by newcomers to the UAE market, particularly by those who wish to open service-oriented businesses, is selecting and obtaining the appropriate trade license in Dubai that meets the long-term needs of their company.
Our goal in this article is to provide you with a step-by-step guide on how to apply for a professional license in Dubai. Additionally, our dedicated team of business advisors in Dubai is available for a free online consultation to provide a customized plan to set up a company in Dubai based on your requirements.
What is a Professional License in Dubai?
In simple terms, a professional license in Dubai is a type of business license issued by the Dubai Department of Economy and Tourism (DET) to certified skilled individuals with expertise in a particular field who wish to establish and operate service-related businesses in Dubai.
Let’s assume you are an expert in marketing and wish to establish a marketing consulting firm in Dubai. To do so, you will need a business license. As a result, it is essential to understand which license type you may need since there are four main types of trade licenses in Dubai, each tailored to a particular industry.
In the example above, obtaining a professional trade license in Dubai with marketing consulting services as your primary business activity will be the best choice. Having said that, you might be wondering what other types of professional service activities are also covered by a professional license in Dubai. Some professions eligible for a professional trade license in Dubai include consultancy services such as:
- Legal, accounting, and management consulting
- Technical services like IT support, electrical, plumbing, and architectural services.
- Educational and training services
- Medical and healthcare services
- Artists or entertainment services
Choosing Between a Mainland or Freezone Company Formation in Dubai
No matter what type of business you intend to operate in Dubai, the UAE, setting up a company in a freezone or on the Dubai mainland is an important decision to be carefully considered by any entrepreneur or business owner.
In light of this, you will need to choose between either of these options based on your business goals and budget, as each offers its own set of advantages and disadvantages.
- With a mainland company formation in Dubai, businesses can operate freely across the entire UAE market, providing access to a much broader customer base. Also, it enables companies to take on government contracts, which can be a significant advantage for growth and reputation.
Additionally, mainland companies do not face a limit on the number of visas they can obtain, allowing for greater flexibility in recruiting and expanding their workforce.
- A company set up in a Dubai freezone offers several advantages, including the ability to own 100% of the company as a foreigner, which eliminates the need for a local partner. Companies in the Dubai freezone are also exempt from paying corporate income taxes, which makes them an affordable option.
In addition, freezone companies benefit from the ease of setting up their business and their proximity to international ports and airports, making trade and logistics easier.
How to Apply for a Professional Trade License in Dubai
Having determined who your target customers are, what your solution entails, as well as what type of business activities you intend to engage in, as well as whether you plan on setting up a free zone or Mainland service-oriented business in Dubai, you are now ready to begin the process of applying for your Dubai trade license.
If you want to obtain a professional trade license in Dubai, here is a list of steps you will need to follow. Our expert business consultants in Dubai can assist you at every stage of the process to ensure that your business setup process goes smoothly and without errors.
- Decide on your company structure, whether you want to setup a single-owner company in Dubai or partner with one or more shareholders.
- Next is to select a unique trade name and get it approved by the DET.
- The next step is to prepare all the required documentation, such as your business plan, a copy of your passport, and any necessary approvals from the relevant authorities.
- The next step is to submit your application for a trade license to the DET (for mainland setup) or a freezone authority of choice (for freezone setup) for initial approvals.
- Upon receiving approvals, you will now be required to pay the associated fees and wait for the trade license to be issued, allowing you to operate your business legally in the Emirates.
Now, all you will need to do to prevent your business operation from violating UAE law is take the following steps. Using your newly acquired business license, you must apply for UAE residency visas for yourself and your employees. In addition, you will need to open an account for your business where all your financial transactions will occur.
Get A Free Consultation from our Experts at CBS
The process of setting up a company in Dubai is a straightforward and smooth one and working with a business setup consultant can make it a lot easier and more error-free.
With Corporate Business Services (CBS), you can rely on us to handle everything from company registrations and licensing to visa applications and other PRO services in Dubai and ensure your business complies with local regulations.
Feel free to contact our team now for a free consultation. We are here to guide you through the entire process.