As a thriving business hub, the United Arab Emirates is attracting foreign entrepreneurs and investors. The main reasons are the strategic location, tax benefits, world-class infrastructure, and pro-business policies of Dubai and Abu Dhabi. They can incorporate a professional services company to safeguard the intellectual rights and corporate growth efforts of their partners.
Their major clientele includes law firms, IT companies, accountancy firms, educational institutes, administrative businesses, and management organizations. The UAE has explicit norms guiding the conduct of the professional companies. It requires service providers to hold business permits and trade licenses to imbibe professionalism.
Some professional licenses need specific qualifications and examinations according to the sensitivity of the chosen fields. Professional licensing in Dubai for a service provider involves the fulfillment of the key steps and requirements. So, keep reading this guide to dive deeper, and get hold of the necessary information.
Major types of professional companies in Dubai
The UAE offers several company setup options to Emirati nationals and expatriate investors. These corporate business incorporation prospects cater to various needs and objectives in Abu Dhabi and Dubai. The most common kinds of professional companies in Dubai are the following.
- Professional Service Companies
- Mainland/Freezone Companies
- Professional LLC Firms
- Branch Offices / Subsidiary Companies
Next, we briefly look into these suitable classifications of corporate entities for the professional sector in Dubai.
Professional Service Companies
Dubai permits the formation of professional service companies for individuals or businesses. Foreign entrepreneurs/investors can hold 100% ownership of a professional services company. Although it is not a requirement, they can appoint Emirati nationals as local agents for sponsorship or regulatory compliance.
Mainland/Freezone Companies
Expat investors can register businesses in the UAE mainland with complete ownership and revenue/profits repatriation. On top of these benefits, Dubai’s free trade zones provide tax exemption, and customs duty incentives. Free zone companies are ideal for entrepreneurs operating outside the UAE, such as trading, logistics, and manufacturing.
Professional LLC Firms
Limited liability company (LLC) is a popular choice for two or more professionals in the UAE. An LLC requires a minimum of two shareholders, who can be foreign nationals. However, they can onboard Emirati national(s) for easier regulatory dealings.
Branch Offices / Subsidiary Companies
Foreign companies can establish a Dubai branch office for conducting business activities in the UAE. Moreover, they can open a subsidiary company in Dubai for better control of the corporate operations in the UAE. Nevertheless, they can appoint a local service agent to act as a liaison with the government authorities.
Considerations for getting professional license in Dubai
A professional license in the UAE allows experts having skills in various fields to own their companies. For example, accounting/auditing, architecture, art, beautification, business consulting, furniture making, document clearing, education, media, healthcare, publishing, entertainment, financial advisory, immigration. IT services, fashion designing, legal advisory, management consulting, construction, property consulting, and technical services are in-demand sectors in Dubai also.
The UAE’s civil/professional company legislation allows individuals of any nationality to engage in professional activities. Nonetheless, the trade name must have consistency with the company’s commercial activities in Dubai. Any individual or a company can sell or buy a professional company in Dubai and across the UAE.
Owners of professional business can change the legal structure in compliance with DED or the applicable free zone authority. Professional companies in Dubai can have numerous branches, which can perform the responsibilities laid down in the primary business license. Consult with expert business advisors before starting a professional company, as it is a serious decision that requires prudence.
Dubai offers a vibrant business climate, 100% ownership, low operating costs, and full repatriation of profits. Incentives like no personal income/capital gain tax, and low corporate tax making Dubai an ideal choice for a professional company. Availability of sufficient infrastructure, energy, and workforce make Dubai ideal for professionals like doctors, contractors, engineers, builders, technicians, mechanics, etc.
Professional services company formation process in Dubai
The procedure of the professional company incorporation in Dubai includes the following essential steps.
- To start a professional services company, determine the nature of your business activity and choose the appropriate license category.
- Pick a unique company name, complying with the naming conventions of the UAE.
- Obtain initial approval from the Department of Economic Development (DED) or the regulatory authority overseeing the free trade zone.
- Submit necessary legal documents, including passport/visa copies, business plan, MOA, and Articles of Association (AOA).
- Lease an appropriate office space in Dubai for the professional firm, and attach the Ejari agreement with the legal paperwork.
- Pay the license fees, and other regulatory dues.
- Acquire the additional permits from other official departments of the UAE (if applicable).
- After approval, you will receive your trade license, and can start the professional company operations.
Necessary documents to register professional firm in Dubai
These are some of the compulsory documents for professional firm registration in Dubai.
- Copy of the passport of the owners/shareholders
- A valid Emirates ID
- Proof of residency in the UAE (if applicable)
- NOC from DED or the free zone authority
- Memorandum of Association (MOA)
- Trade name reservation certificate
- Articles of Association (AOA), if necessary
- Tenancy contract
- Naturalization book (in the case of the need)
- Local service agreement (if compulsory)
Shareholders of the professional services company must submit individual documents.Also, the subsidiary/branch office of a foreign professional service provider must file the documents of the parent company. Translate the paperwork of the parent professional company into Arabic and English, if it is in another language.
Conclusion
The UAE’s growing global business reputation entices foreign entrepreneurs seeking to establish companies in the MENA region. With diverse corporate opportunities, Dubai offers a favorable environment for investors to flourish. Understanding the procedure, entity types, and advantages of professional services company formation in Dubai is essential.
This knowledge can effectively drive the newbie business owners to embark on their professional service provider journey. Efficiently navigate the booming economy of the UAE, while meeting all legal formalities. Maximize the UAE’s corporate opportunities for professional companies, with the help of a business consultancy like KWS Middle East.