Business Setup UAE: Step-by-Step Process to Obtain a Professional License in Dubai
For aspiring entrepreneurs eyeing the dynamic UAE market, the first crucial step is navigating the business setup UAE landscape. Dubai, in particular, offers robust infrastructure, impressive growth potential, and a simplified licensing regime to support professional entrepreneurs. Whether you’re planning to work as a consultant, designer, or IT expert, obtaining a professional license in Dubai is instrumental to launching your career the right way.
What is a Professional License in Dubai?
A professional license in Dubai is issued to individuals or businesses offering expertise-driven services. These include sectors like marketing consultancy, accounting, IT services, legal advisory, and design. It enables sole proprietors and civil companies to legally operate in the UAE.
Key Benefits of Business Setup UAE
- 100% foreign ownership for certain activities
- Zero corporate tax (conditions apply)
- Simplified visa and immigration processes
- Strategic global location
- Wide access to regional and international markets
Step-by-Step Process to Obtain a Professional License in Dubai
This section breaks down the essential steps involved in acquiring your professional license within the broader scope of business setup UAE.
Step 1: Choose Your Business Activity
Select a specific profession or service aligned with your expertise. It’s important this activity is approved by the Department of Economic Development (DED) in Dubai. Examples include:
- IT consultancy
- Legal advisory
- Management consultancy
- Design services
Confirm that your chosen activity doesn’t fall outside the DED-approved professional category.
Step 2: Decide on Company Structure
In a professional license setup, you can choose between:
- Sole Proprietorship (100% expat ownership possible but needs a local service agent)
- Civil Company (for two or more professionals providing the same or related service)
Step 3: Select a Trade Name
Pick a unique trade name that complies with UAE’s naming regulations. Avoid offensive language, religious connotations, and names already registered by existing businesses. Submit for approval through the DED portal.
Step 4: Apply for Initial Approval
The initial approval is a no-objection certificate (NOC) from the DED, enabling you to move forward with the legal documentation process. This approval secures your intent to start a company in UAE.
Step 5: Draft the Local Service Agent Agreement
A local service agent (LSA) is required for expats acquiring professional licenses. This UAE national doesn’t hold ownership but acts as a liaison with government bodies. A notarized LSA Agreement must be submitted with your application.
Step 6: Lease Office Space
A tenancy contract (Ejari) is mandatory for license issuance. Depending on your setup, it can range from shared co-working spaces to fully-equipped offices. The contract must be registered with Ejari.
Step 7: Submit Required Documents
Gather original and notarized copies of the following documents:
- Passport copies of all partners
- Visa and Emirates ID (if applicable)
- NOC from current sponsor (for residents)
- Proof of academic and professional qualifications (where applicable)
- LSA Agreement
- Tenancy contract
Learn more about what’s needed in our guide to required documents for registering a business in Dubai.
Step 8: Pay License Fees and Collect License
Pay the licensing fees after issuance of the payment voucher by DED. Costs depend on the company structure, office lease, and chosen activity. Upon payment, you will receive your professional license and can start operations legally in Dubai.
Free Zone vs Mainland for Professional License
You can obtain a professional license in either the mainland or a free zone. Here’s a comparison to help you decide:
| Criteria | Mainland | Free Zone |
|---|---|---|
| Ownership | 100% expat ownership (with LSA) | 100% foreign ownership |
| Market Access | Local and international | Limited to free zones and exports unless an agent is hired |
| Cost | Medium to High | Low to Medium |
| Visa Quota | Flexible | Restricted by package |
If you’re unsure about where to establish your company, visit this guide comparing mainland vs free zone in Dubai.
Timeline for Professional License in Dubai
The process duration varies based on business activity, documentation, and approvals. Generally, it takes:
- 3–5 working days for name reservation & initial approval
- 5–7 working days for document processing
- 2–3 days after payment for license issuance
Efficient documentation helps speed up the process, especially in free zones.
Cost of Obtaining a Professional License in Dubai
The cost for a professional license in Dubai typically ranges from AED 10,000 to AED 18,000. This amount includes:
- Trade name registration
- Initial approval
- Service agent fees
- License issuance
- Ejari/office lease
Other company-related costs may apply. Check our full cost breakdown for setting up a company in Dubai.
Final Thoughts on Business Setup UAE
Getting a professional license is one of the most straightforward paths to business setup UAE for service-based entrepreneurs. With the right guidance and documentation, the process is efficient and stress-free. Dubai’s regulatory framework supports rapid business growth by offering flexibility in ownership and access to global markets.
For official updates, visit the UAE Government Portal.
