Dubai and the UAE are the lands of opportunities for entrepreneurs and investors. In addition, they are witnessing a massive influx of foreign nationals searching for jobs and setting up companies. That is to say, everyone can set up a business in their favorite industry. Therefore, the first step is to obtain technical services license in Dubai, UAE.
In this article, we will make sure you understand this new technical license and its importance in the country. Similarly, with this license, any business in the UAE can allow you to get access to a better quality of life. On the other hand, you will understand the step-by-step process of how to obtain the license. Let’s observe:
- The Technical Services License in Dubai
- Benefits of setting up a technical services business in the UAE
- What is the process to obtain a technical services license in Dubai, UAE?
- How can Connect Free Zone assist you to obtain a technical service license?
1. The Technical Services License in Dubai
The new technical services license in Dubai, UAE is commercial licensed focused specifically on company activities such as painting, plumbing, concrete works, etc. In the same vein, Dubai’s central position in the world connects itself to Asian, African, and European markets; making it a perfect location to start a technical service company.
Similarly, in order to set up this type of business in Dubai mainland, there are some things you must consider. For instance, the first and perhaps one of the most important is to look for a local sponsor in the city. That is to say, this new law establishes you need a local sponsor; a local UAE national owning 51% of shares in the organization.
On the other hand, the remaining 49% goes to you. Similarly, you also must register your business as an LLC (Limited Liability Company) in Dubai Mainland to enter the technical service industry.
2. Benefits of setting up a technical services business in the UAE
Certainly, Dubai is rapidly growing and sustaining its economic standards by maximizing its support to growing and new companies in the city. Similarly, as it continues to work for a diversified economic environment. In addition, the city sees great importance in building a gifted and intellectual community with special expertise to attract foreign investment.
For this reason, there is an increase in the popularity of technical services in the city. They are also offering highly technical and specialized services. On the other hand, they are taking advantage of the following benefits:
- Business management and setup are kept at a minimum. This gives you more spare time to focus on more important tasks of your organization.
- Prepared and solid workers available to help the growth of your technical services business.
- Access to both international and local markets. However, it depends on your setup.
- The robust economy of the country provides a wide clientele and network.
- World-class and innovative facilities to assist your offered services.
- Allows foreign ownership in the free zones.
- No personal tax and corporate tax are required.
3. What is the process to obtain a technical services license in Dubai, UAE?
To start working in the technical services field, you must obtain a technical services license in Dubai, UAE. In addition, the DED (Department of Economic Development) in Dubai is the government body entity in charge of issuing these trade licenses. That is to say, the department has a streamlined process in the applicants must follow.
However, you can simplify the processes if you partner up with the best business partners in Dubai; therefore, we will guide you through every stage of this tedious process.
3.1. Choose a Business Activity
The Department of Economic Development has a list of more than 2,000 services that are within the scope of all licenses. However, you can contact us if you want to know how your business activity is defined by the DED under this technical services license.
3.2. Settle the legal structure of your technical services business
The following step in the process of the technical service organization in the UAE is deciding the legal structure of your business. That is to say, there are various types of legal structures approved by the DED. However, it depends on the number of shareholders such as Limited Liability Company (LLC), Sole Proprietorship, Civil Company, etc.
On the other hand, as we mentioned earlier, the LLC Is one of the most popular ways of setting up a business in the UAE and Dubai mainland. Similarly, it requires a local sponsor, UAE national, holding at least 51% of your business shares.
But since the technical services’ license is a professional type; you can enjoy full ownership if you appoint an LSA (Local Service Agent). In the same vein, the LSA does not hold a share in your organization, but you must pay an annual fee.
3.3. Select and reserve a name for your technical services company
After you identify the most suitable business activity mentioned through the technical license in Dubai. You must come up with a solid name for your business. However, you must follow the guidelines established by the UAE government while naming your company:
- For instance, the name must not contain words that convey obscenity or obscenities.
- In addition, it must not be offensive to the general public.
- The trade name must not include “God”, Allah’s name, or his divine attributes, for example (al alee, al wader).
- It must not contain the name of any government entity or any country.
- Translations are not allowed; you must write names literally.
- The name must reflect the activity. For example, ‘Pioneer Gate Business Center’, or ‘Carac Café LLC’.
- It must not include any punctuation marks.
- It should not include names of religious organizations, political organizations, or any globally restricted names.
3.4. Apply for the initial approval
Obtaining the initial approval from the DED is the next step for obtaining the technical service license. In the same vein, this initial approval certificate is proof that the Department of Economic Development, has no objection against your business incorporation proposal in the UAE.
Further, if you want rapid approvals for your documents, you must draft them properly. However, this requires professional assistance from the best business partners in Dubai. In Connect Free Zone, we take care of the business setup process from beginning to end; this way you can set up easily in Dubai or the UAE.
3.5. Drafting the LSA agreement
This type of technical service license is a professional one. Similarly, you can start your business if you appoint an LSA. That is to say, you must draft an LSA agreement and submit it to the Department of Economic Development. In other words, this type of document must be taken care of professionally; otherwise, the company incorporation process will be delayed.
Most importantly, our team of experts will guarantee the best drafting for these documents. In addition, you can choose our solutions to eliminate time-wasting delays.
3.6. Rent an office space for your business
Unlike Free Zone companies in Dubai; you must lease or rent an office space according to the Department of Economic Development laws. That is to say, the DED establishes that all organizations must have a physical address in the city. However, if you are a foreign national, you cannot own real estate properties in the country.
Therefore, you must rent an office space and sign a contract with the landlord to register it with Ejari.
3.7. Obtain external approvals (If required)
There are some company activities that require special approvals from the Ministry department in charge. In the same vein, check the following business activities to make sure if your business falls in the special category. Thus, if this is the case, you must obtain approval from the ministry:
- Engineering
- Insurance
- Legal
- Tourism
- Audit
- Banking
- Oil & Gas
- Transportation
3.8. Issuance of technical services license in Dubai, UAE
This is the last step of the process of technical services business incorporation in the UAE. Subsequently, the DED will check all the provided documents for final approval. Similarly, you must submit the mandatory government fee. After that, the DED will issue the technical service license.
4. How can Connect Free Zone assist you to obtain a technical service license?
In Connect Free Zone, we want you to thrive and be successful in this beautiful country. That is to say, when you work with us you will obtain packages, the best pricing, and discounts if you want to start a business in any of Dubai’s free trade zones or Mainland. In the same vein, we also can sponsor your organization so you can establish your Business in Mainland Dubai.
We understand that setting up a business in a new market is a complex procedure. Therefore, we are here to allow you to successfully establish in the most popular and best free zones in the UAE.
Certainly, we have more than 2 decades of experience working with all-sized businesses all across the UAE and assisting individuals to reach their objectives and start their technical service businesses. That helped us obtain the experience we need to advise you to achieve your goals and start your business easily in Dubai.
Here, we will make you find the best business destination for your organization. In the same vein, we will ensure you benefit from all the advantages these jurisdictions will offer you. Thus, we compare free zones’ regulations, locations, prices, rules, and perks regarding your business PRO services and objectives.
Would you like Connect Free zone to assist you to obtain a technical services license in Dubai, UAE?
If you want us to start working as soon as possible to assist your technical services business; or if you have additional inquiries. You can call us at +971 4331 6688 whenever you feel like it. Or you can send us an email via contact@connectfz.com.
On the other hand, if you want to submit your resume to us; please go to thetalentpoint.com. Similarly, we do not store any CVs or resumes you send us to contact@thetalentpoint.com.
Frequently asked questions about the license of technical services in Dubai
What is the cost of acquiring this type of license in Dubai?
The cost of the technical services license in Dubai, UAE depends completely on where you obtain the license. In addition, you have two options, if it is a Mainland or a Free Zone technical services license. Its prices can range from AED 9,000 to AED 25,000.
What are the business activities that come under the technical service license in Dubai?
- Air-conditioning
- False Ceilings and Partitions contracting
- Ornamentation and Engraving work
- Air filtration and Ventilation systems
- Sanitary contracting and plumbing
- Carpentry & Flooring Contracting
- Maintenance and installation
- Cladding and Plasterwork
- Wall tiling and Floor works
- Insulation contracting
- Painting Contracting
- Wall Paper Fixing
What is the validity period for a Dubai technical services license?
The Department of Economic Development issues this type of license and it has a validity period of 1 year. However, the technical service license from Dubai Free Zones has 1, 2, or 3 years of validity.
Do I have to live in Dubai to open a company?
In short, no. Now is possible 100% of foreign ownership in the Free Zone area and for onshore UAE-based organizations.
How long does it take to get a technical service license?
When you work with us; it usually takes hours to form a business, it does not matter if it is in Mainland or a Free Zone. Similarly, it depends on what type of license you have applied for, if it is an LLC or a Free Zone business. In addition, it also varies depending on which free zone you are in; or if the organization has a corporate or individual shareholder.
Do I need office space in Dubai?
Yes, the law mandates that you have a physical address in the UAE. In the same vein, to qualify for this type of license; you must have a valid lease for a warehouse or an office space.
