The Department of Economic Development (DED) provides different types of licenses for different businesses in Dubai. For trading activities, it is commercial license; for manufacturing activities, it is industrial license; and for professional activities, a professional license is issued to the companies
A professional licence is one of the of types of trade licences available to prospective business persons that are looking to set up a company in Dubai
It is a requirement for anyone who wants to provide Professional Service in the UAE, since it establishes that the person or business is qualified and legally authorised to provide services in a given profession. All professionals, specialists, craftsmen and artisans must first secure a professional trade licence if they want to legally offer their services to clients.
In addition, a professional licence allows foreign entrepreneurs and international companies to have 100% ownership of their company, even though they are operating outside a free zone. Based on their activities, they can choose between these two legal structures: Sole Establishment and Civil Company.
A sole establishment, which is also known as sole proprietorship, refers to a company owned and operated by a single owner. This individual shareholder will have full control of the sole establishment’s operations and profits, but will also be 100% liable for its debts and financial obligations. A civil company is similar to a sole establishment, but with more than one shareholder.
While a professional licence allows for 100% foreign ownership and 100% capital repatriation, the business must appoint a local service agent [LSA] who is a UAE / Emirati national to complete the legal formation formalities, but does not hold any liability or authority over the business.
Holders of a professional licence are allowed to do business or offer their services in specific industries, such as:
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