A Professional License permits individuals or entities to provide services based on their expertise.
Issued by the Department of Economic Development (DED) for mainland businesses and respective Free Zone authorities, it covers a broad range of service-oriented activities.
Unlike commercial licenses, which focus on trading goods, professional licenses cater to service providers
A Professional License in the UAE is essential for individuals and businesses offering specialized, service-based expertise. This license is designed for professionals whose services rely on intellectual skill rather than tangible goods.
Document | Description |
Passport Copies | For all shareholders and partners |
Visa Copies | If applicable |
Emirates ID | For UAE residents |
Educational Certificates | Proof of qualifications relevant to the business |
No Objection Certificate (NOC) | From current sponsor, if under employment visa |
Tenancy Contract (Ejari) | Proof of business premises |
Trade Name Reservation Certificate | Approved by the DED or relevant authority |
Initial Approval Certificate | From the DED or Free Zone authority |
Setting up a service-based business in the UAE begins with acquiring a professional license. Here’s a step-by-step overview of the process,for clarity and easy application process.
The first step is to clearly define the professional services you intend to offer. Your activity must align with the approved list issued by the DED (for mainland) or respective free zone.Some activities may require prior qualifications, approvals, or certifications (e.g., education, healthcare, consulting).
Choose between setting up in the mainland (DED) or a free zone (like DMCC, IFZA, or Dubai Media City). Your choice impacts ownership, visa eligibility, office type, and target markets. Mainland setups allow direct access to the UAE market, while free zones offer 100% foreign ownership and simplified regulation.
Apply for trade name reservation through the relevant authority. The name must follow UAE guidelines: no religious or political references, no abbreviations (unless fully spelled), and must be available and appropriate for the activity.
Once your name is reserved and business activity selected, apply for initial approval. This is a pre-approval indicating that the government has no objection to your proposed business and structure. It is valid for six months and is required before proceeding with tenancy and documentation.
Draft and notarize the necessary legal paperwork, such as the Memorandum of Association (MoA) for LLC setups or a Local Service Agent Agreement (if applicable). These documents outline shareholding, responsibilities, and business scope.
For the mainland, you must lease a physical office and register it with Ejari. Free zone setups may allow more cost-effective options like flexi-desks or shared offices. The premises must match the scale and type of your business activity.
With all approvals, documents, and tenancy contract ready, submit your complete application package to the authority. This includes identity proofs, trade name certificate, initial approval, lease agreement, and legal documents.
Once the documents are verified and fees are paid, your professional license will be issued. The timeline varies but typically ranges between 5 to 10 business days. After issuance, you can apply for visas, open a corporate bank account, and begin operations legally.
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Cost Component | Estimated Cost (AED) | Details |
Trade Name Reservation | 600 – 1,000 | Paid during the name registration process |
Initial Approval Certificate | 1,000 – 1,500 | Issued by DED or Free Zone Authority |
License Issuance Fee | 8,000 – 12,000 | Varies by activity and jurisdiction |
Memorandum of Association (MoA) Drafting | 1,000 – 2,000 | Required for mainland setups |
Office Space (Ejari or Flexi-desk) | 12,000 – 25,000 | Depends on location and size |
Local Service Agent Fee (if applicable) | 5,000 – 7,000 | Required for certain mainland setups |
Immigration Card & Establishment Setup | 1,000 – 2,000 | For visa eligibility and labour registration |
Total Estimated Cost: AED 20,000 – 45,000+ depending on setup complexity and optional services like visa allocation or premium offices
Aspect | Mainland | Free Zone |
Ownership | 100% foreign ownership allowed | 100% foreign ownership |
Market Access | Local and international | Primarily international; limited local |
Office Requirements | Physical office mandatory | Flexi-desk options available |
Visa Eligibility | Eligible to sponsor employees | Limited based on package |
Regulatory Authority | Department of Economic Development (DED) | Respective Free Zone Authority |
Both Mainland and Free Zone setups offer distinct advantages depending on your business model, target market, and budget:
Renewal Process
Professional licenses are typically valid for one year and must be renewed annually. Steps include:
Timely renewal is crucial to avoid penalties.
In conclusion, the UAE offers a wide range of business licenses tailored to suit every profession, trade, and entrepreneurial goal. No matter if you’re a consultant, trader, creative, or freelancer, choosing the right license is key to operating legally and successfully.
Each license,be it professional, commercial, or freelance, it unlocks unique benefits such as 100% ownership, visa eligibility, and market access.
By understanding your business model and aligning it with the appropriate license type, you pave the way for sustainable growth, legal compliance, and long-term success in the UAE’s growing economy.
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