By Dubai, a cosmopolitan city, is throbbing with the active presence of locals and an ex-pat population that opens lucrative opportunities for opening a business like technical services. By setting up a technical service business in Dubai, you will be able to cater to a highly diverse population ad turn your company into profits.
You can open your technical service business either in Dubai Mainland or any of the Dubai Free Zones. Here, we will be discussing particularly on setting up your business in Dubai Mainland.
You will have to register your business under a Limited Liability Company, and the Department of Economic Development acts as a regulatory authority for your business setup procedures. The local sponsor will own 51% of shares in the business while you will hold the remaining percentage.
Benefits of Opening a Technical Service Business in Dubai Mainland
- No personal or corporate tax available
- With the technical service license, you can apply for the government projects
- No capital required for local mainland license
- You can carry out your business in Dubai local market
- No limit on getting a visa
- Free to select office space in any part of Dubai
- No currency restrictions
- Hassle-free legal procedure
- No audit requirement
Activities Permitted under Technical Service Business in Dubai
Many commercial activities are permitted under the technical services license. These include:
- Air conditioning, ventilation and air filtration services
- Carpentry and flooring
- Concrete works
- Corporate cleaning services
- Electrical fitting and fixtures services
- False ceiling and light partition installation
- Floor and wall tiling works
- Installation and maintenance
- Insulation contracting
- Plaster and cladding works
- Plumbing and sanitary contracting
- Solar energy systems installation
- Technical services contracting
How to Obtain a Technical Service License in Dubai?
The steps to obtain your technical service license is simple. And with our experienced consultants at Commitbiz, we can make the procedure hassle-free. Right from business incorporation to office space, we cover it all.
The steps are –
1. Choose a Business Activity
The Dubai DED has mentioned a list of more than 2,000 activities that come within the scope of every license. You will have to check the DED website to know how the DED defines your business activity under the technical service license, or you can also refer to the list provided above.
2. Determine the Legal Structure
You will need to set up an LLC for your business setup in Dubai Mainland. LLC is the most popular form of corporate structure in the UAE. Hence we suggest opening an LLC for your business.
3. Reserve a Company Name
After identifying the particular business activity mentioned under the technical service license, you need to come up with a firm name for your organization. You must follow the trade name guidelines issued by the UAE while naming your company. Avoid terms of purely religious.
4. Apply for an Initial Approval
The initial approval certificate is your proof that the DED has no objection against your proposed business formation in Dubai.
5. Drafting of LSA Agreement
The technical service license is a professional license, and you can start your business by appointing an LSA. Under this procedure, you need to draft an LSA agreement and submit it to the Economic Department. Drafting of documents must be handled professionally; or else, the process of company formation in Dubai will get delayed. The reputed business setup consultants like Commitbiz in Dubai are pioneers in drafting such documents, and you can hire their services to eliminate unnecessary delays.
6. Apply for Technical Service License
While making an application, you will need to provide the following documents –
- Completed application form
- Passport copy of the proposed owner or owners
- Two colour passport size photos
- NOC from current employer (if applicable)
- Memorandum of Association (MOA)
It is essential to note that the MOA must be notarized in person at a Dubai, public notary. This process usually takes around two hours.
7. Rent an Office Space
In mainland Dubai, you need to rent or lease an office space as per the DED regulations. The DED mandates that all the businesses should have a physical address in Dubai. Being a foreign business person, you are not permitted to own real estate properties in the UAE, and you have to rent an office space. Sign a tenancy contract with the landlord to register it with the Ejari.
The DED will verify all the documents for final approval. You will need to submit a mandatory government fee under this step. Upon approval, the DED will issue the technical service license.
