How to get a technical services licence in Dubai
In Dubai, a technical services licence is an essential requirement for businesses operating across a wide variety of technical domains, including IT solutions, engineering consultancy, HVAC maintenance, and specialised trades like plumbing, electrical work and carpentry. The licence, mandated by Dubai’s Department of Economic Development (DED), legitimises your business to offer technical services within the emirate, aligning with its regulatory frameworks and high service standards.
With Dubai’s economy increasingly focused on technological innovation and infrastructure expansion, the demand for specialised service providers is on the rise. This licence not only aligns your business with legal requisites but also opens doors to a market eagerly seeking quality technical expertise. For entities keen on engaging in Dubai’s dynamic technical sector, acquiring this licence is the crucial first step.
This article looks at the scope of activities which require the technical services licence and the process for obtaining it.
What is a technical services licence?
A technical services licence in Dubai is a mandatory requirement for any companies engaged in technical and professional fields. This can range from small IT support firms and independent engineering consultants to large-scale construction project management companies and specialised repair services. The scope of services it encompasses includes but is not limited to:
- Air Conditioning, Ventilation, and Air Filtration Services
- Carpentry and Flooring
- Concrete Works
- Corporate Cleaning Services
- Electrical Fitting and Fixtures Services
- Floor and Wall Tiling Works
- Installation and Maintenance
- Insulation Contracting
- Solar Energy Systems Installation
- Technical Services Contracting
- Installation Works for False Ceilings and Light Partitions
- Glass and Aluminium Works
- Plumbing and Sanitary
- Metal Parts Construction and Installation
- Plaster, Insulation, and Other Technical Works
Businesses engaging in any of these services in Dubai are required to obtain the appropriate technical services licence, either from the Dubai Department of Economic Development (DED) for mainland registered companies or the relevant authority in a free zone.
How to obtain a technical services licence
The following is a general outline of the steps involved:
- Choose your business activity: Begin by accurately identifying the business activity that aligns with your services from the list provided by the Department of Economic Development (DED) or the relevant free zone authority. This step is crucial as it determines the regulatory framework and specific requirements your business will need to follow. Consulting with business setup advisors can provide clarity and ensure that your chosen activity aligns perfectly with your business plan.
- Determine the legal structure: Deciding on the appropriate legal structure for your business is next. This could range from a sole proprietorship for individual business owners to a Limited Liability Company (LLC) or Civil Company if there are multiple shareholders. The chosen structure will affect various aspects of your business, from liability to tax implications and the need for local sponsorship.
- Secure initial approval: Obtain initial approval from Dubai’s DED or the relevant free zone authority where your business will be located. This involves submitting a comprehensive application that includes your business plan, proposed company name, and details about the shareholders.
- Prepare documentation and application submission: Compile and submit the required documentation, which typically includes passport copies of shareholders, NOC from the current sponsor if applicable, and your business plan. Depending on your business activity, you may also need approvals from specific government departments.
- Office space requirements: You must secure a physical office space or commercial premises as part of the licensing requirements. This can be within a free zone or on the mainland, based on your business location preference. Proof of office space, such as a lease agreement, is necessary for the licence application.
- Final submission and payment of fees: With all documents in hand and office space secured, complete the final submission of your application and pay the necessary fees. The cost will vary based on your business activity and chosen jurisdiction. This stage may also require additional approvals for specific technical activities.
- Receiving your licence: Upon successful application and fee payment, the licensing authority will issue your technical services licence. This process can vary in duration but is the final step in officially starting your business operations in Dubai. Be prepared to meet any further regulatory or industry-specific requirements post-licence issuance.
Choosing the right jurisdiction: Mainland vs Free Zone
When selecting the ideal jurisdiction for a technical services license in Dubai, businesses are faced with two primary options: mainland or free zone. Each comes with its distinct set of advantages and operational differences.
Mainland companies in the UAE enjoy unrestricted access to the entire UAE market, allowing direct trade without needing a local distributor. However, this broad market access is balanced by stricter regulatory compliance and the need for external government approvals, which can lengthen the setup process.
Additionally, the visa allocation for mainland companies is directly tied to the office space size they lease, potentially adding to operational costs and limiting the capacity to hire a large workforce without corresponding expansion in physical premises.
On the other hand, free zones offer a more straightforward setup with minimal external approvals, enabling faster market entry. Free zones also provide cost-effective and flexible office solutions and straightforward visa allocations, often without the need for a physical office. They’re also well set up for networking and collaboration since they cluster businesses from similar industries together, facilitating easier access to shared resources and industry-specific expertise.
However, the main drawback with free zone companies is that they are limited to operating within their zone or internationally, needing a local distributor for direct trading in the UAE market. This can restrict direct market interactions and increase reliance on intermediaries for mainland operations.
The decision between the two should be carefully evaluated based on your business model, market access requirements, and growth objectives.
How can Global Link help?
Global Link has over 16 years’ experience working with local and global businesses, providing bespoke consultancy services for company incorporation in Dubai and the wider UAE.
We can assist you with obtaining a technical services licence in Dubai. From offering tailored advice which aligns with your business model and goals to streamlining the application process, navigating all regulatory requirements, and expediting approval.
If you need advice on the technical services licence in Dubai or any other aspect of company incorporation or visa acquisition, please get in touch with us on +971 4 553 9901 or email us at [email protected] and we will be happy to assist you.