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What is a Professional License and What are its Benefits in Dubai

by Business-Setup.ae


Posted on 02-October-2019



A Professional License can be defined as a granted permission from the DED or Department of Economic Development in Dubai, for providing various kinds of services to the people. The use of Professional License falls under various categories like entertainment performances, business support services, sport training services, artistic services, and so on. With the help of such license, 100 percent foreign-owned companies can also perform their regular business operations without requiring any local shareholding in Dubai. An LSA or Local Service Agent (national citizen of UAE) is required for sponsoring the company’s residential visas.

Advantages of Obtaining Professional License in Dubai

Cost-Effective

Obtaining a Professional License will help you save money in the long run because you’ll be able to establish your company’s office anywhere in Dubai’s onshore area. This will ensure that your company is not tied to any leases with other special authorities and can enjoy freedom like an LLC.

Most of the companies which are just starting, plan to use co-working spaces or even serviced offices so that they can get enough time to obtain their licenses. This will allow them to have an easily accessible working area while also reducing the overhead costs of running the business. The current market fee is 2.5 percent and it further makes this option more economical.

Support for A Wide Range of Activities

Professional License is not solely provided to a selected group of businesses or companies, but for a wide range of activities. The current list of eligible activities is increasing regularly and therefore, obtaining a license for your business service activities is easier. If you're someone who is planning to start a business, the chances are high that your proposed business idea is already supported by the authority providing Professional Licenses.

It should be kept in mind that even though an activity might be supported, you are still required to pass the approval process. For example, if you’re planning to provide training services, then your business should have sufficient classroom area along with relevant materials to support the training process, like whiteboards, projectors, screens, and so on.

Involvement of Foreign Companies and Experiencing an Adaptable Market

As discussed earlier, the Professional License will allow up to 100 percent foreign-invested companies to do their business in Dubai. Easily maintain your daily business operations without the need for a local shareholding party, which is mostly fulfilled and sponsored by UAE national citizens. Moreover, with the help of your license, you'll be open to engaging with various markets and clients - all at your fingertips. You can service your clients and make relevant contracts with other companies too. These also include agencies tied to the government of Dubai and other educational institutions.