Whether you’re hoping to run a 100-strong marketing agency, set up alone as a consultant, or sell handmade jewellery – if you’re doing it in the UAE, you’ll need a license.
That’s why one of the first things to do before setting up out here is to get to know the country’s licensing types and processes. The type of activity you undertake will determine the license that you need. For example, if you are going to manufacture goods, you’ll need a manufacturing license. If you are going to sell goods, you’ll need a commercial license, and so on.
Then there are more specific types of license, which brings us to the one I’m going to cover today. The technical services license is only suitable for certain commercial activities such as plumbing, maintenance work, and similar.
But while it is a specialised license, there is no specialised application process. With the help of a UAE company formation expert, you can obtain your license and be ready to trade within days.
Activities in technical services
First things first, let’s check whether a technical services license is the most suited to your business activity.
If you carry out any of the following trades and services, then this is the correct license for you:
- Air-conditioning and ventilation
- Building cleaning services
- Carpentry
- Concrete works
- Electrical fittings
- Engraving
- Flooring and tiling
- Insulation works
- Painting and decorating
- Plumbing and sanitary works
- Satellite equipment installation and maintenance
- Solar equipment installation
There are many more activities that also require a technical service license. The best way to find out what type of license you require is to work with a company formation specialist. At Worldwide Formations, we’ll take the time to get to know your business before advising on the most appropriate license and setup.
How to get a technical services license in Dubai, UAE
Once we’re happy that you require a technical services license, we can manage the entire application process on your behalf. This usually takes just five simple steps.
Step 1: Choose your business activity
Every business in Dubai must list a business activity, or activities, on its business license. And it’s important that you list every activity that applies to your business when making your application. Failure to do so can lead to fines or even license revocation.
Step 2: Choosing your company name
A step of the business incorporation process that takes on more importance here in Dubai is choosing your company name. That’s because as well as the need for a name that’s catchy and captures the essence of your business, you’ll also need to stick to the UAE’s clearly defined naming conventions.
In short, UAE company names must not contain any blasphemous or offensive language, any references to well-known institutions or any abbreviations of your name – though your full name is acceptable.
Your name should also have a legal entity attached to it, such as FZE or LLC. It must also relate to your business activity, not resemble the name of any other company and be available to register.
Step 3: Choosing where to set up
When you do business in the UAE, you can choose to set up in a free zone or in the mainland.
If you choose to set up in the mainland, you can trade directly with the local market without the need for a distributor or local agent.
However, if you set up in a free zone, you benefit from customs tax exemptions and other financial incentives such as the ability to repatriate all capital and profits to your country of origin.
Step 4: Applying for your license
With the early administration taken care of, you can now apply for your technical services license.
If you’re setting up in the mainland, you can make your license application directly to the Department of Economic Development (DED). If you’ve chosen a mainland setup, you should apply directly to the managing authority of your chosen free zone.
In both cases, you are usually required to submit several documents along with your application form, including:
- A copy of your passport – and that of any other shareholders
- Your business plan
- A copy of your signature
- A No Objection Certificate from your current employer (if applicable)
Step 5: Applying for your visa
You’ll also need to apply for a visa to operate any kind of technical services company in the UAE.
This is a four-stage process that includes a medical fitness test and biometric capturing. In all, it usually takes less than a week. You can also sponsor others such as children, a spouse or domestic staff for their visas, too, providing you meet the eligibility criteria.
Technical services license cost in Dubai
The cost of your technical services license will depend on numerous factors. It is usually more cost-effective to set up in a free zone than in the mainland, for example.
Whether you have employees, the number of visas you apply for, and whether you require additional approval from industry bodies will also impact the total price to pay.
As a guide, you should expect to pay in the region of AED 15,000 for a free zone license, rising to AED 40,000+ if applying for a mainland license.
Starting your technical services business in Dubai
By following the steps above, it is possible to obtain your trade license and establish your business in Dubai.
However, it is always advisable to undertake the steps with the assistance of a registered company formations agent to eliminate any potential hassles that might arise.
With more than 15 years of experience in company incorporation, Worldwide Formations can help you get your business up and running within a week or two. We’ll manage your license and visa application and correspond with all relevant authorities for you. All you need to do is wait for the green light to start trading.
