When you intend to open a professional firm in Dubai, you need to acquire a professional license for your business. Professional license is the provision of non-physical services such as consultancy, web designing etc. It is issued to individual(s) or Limited Liability Company (LLC) to practice any profession in which the business relies on physical talent or intellectual abilities and not on monetary investments alone.
Professional companies may be 100% foreign owned which gives them the advantage of sole proprietorship. They have complete control over their operations and profits. However, it is necessary to appoint a UAE National as a Local Service Agent (Wakeel Khidmat) to complete judicial formalities. Local service agent will not have direct involvement in the business and will be paid a lump sum sponsorship fees per year. He will not have any equity or entitlement towards company’s liabilities. The role of LSA is only limited to assist in obtaining license, visa, labor card etc.
If the owner is more than one in Professional License Dubai, such company is called a Civil Company. It can only conduct professional activities and all the partners involved in this venture must possess a professional degree in their specific field.
Salient Characteristics of a Professional Company in Dubai
- UAE Civil Code entities (an Individual Establishment or Civil Works Company) are formed under UAE Civil Code which restricts them to perform only “non-commercial” or civil activities.
- Non-commercial activities include promotion of services, skills & expertise of the individual(s) conducting the business and other related practices that requires the usage of intellectual faculties.
- 100% foreign ownership
- Any trade-related activity is not allowed under professional trade license Dubai.
- Depending on the business activity, professional firm can be a LLC (Limited Liability Company) if 51% ownership is given to a UAE National or Company. In that case, the shareholders of the UAE Company must meet the same criteria as the expat partner/s.
- A foreign company can become a partner in Civil Company if it reflects the same business activity as the parent company.
Professional Business License Activities
Professional Business Activities include but not limited;
UAE economic departments such as Department of Economic development (DED), Dubai Municipality (DM) as well as other authoritative bodies have provided vast list of activities under which you can obtain professional trade license Dubai. Furthermore, they keep on offering more number of activities to boost professional entrepreneurship in UAE.
What We Do
We offer our company formation and business support services to our esteemed clients for starting their new business setup in Dubai. In order to obtain professional trade license, we provide the following services,
- Paperwork and approvals from relevant authorities
- Identify a trusted and qualified local service agent
- Preparing Partnership agreements and MOA
- Acquiring professional license and establish UAE Company in a timely manner
- Visa application, obtaining labor quota, translation services
- Assistance in the opening of corporate bank account
- Assistance in finding suitable office premises
- Transparency in our dealing with clients
- Ensure realistic timelines enabling effective process
To find out more about trade licenses in Dubai or to obtain/renew your professional trade license in Dubai or across UAE, Contact KWS Middle East Business Setup Consultants.