Thinking about starting a technical services business in Dubai? Well you are making a very big decision! With Dubai being the metropolis that it is, there is a rising demand for labour and maintenance services. So this clearly is a lucrative opportunity for an entrepreneur to cash in. By starting a technical services company, you could specialize in electrical work, plumbing, carpentry, or general maintenance. Regardless of your area of focus, the first step is to get a Technical Services License in Dubai to operate legally.
In this guide brought to you by SetHub, we will walk you through the whole process of securing a Technical Services License in Dubai, covering costs, requirements, and benefits.
What Is a Technical Services License?
By holding a Technical Services License in Dubai, your business will be allowed to provide skilled trade services, including:
- Electrical work
- Plumbing contracting
- Carpentry
- Air conditioning services
- Painting
Dubai is home to a booming real estate and infrastructure segment which has increased the need for such services. This makes it an ideal market if you are interested in starting your own technical services company.
Steps to Obtain a Technical Services License in Dubai
Step 1: Choose Your Business Jurisdiction
In Dubai, you choose from a mainland or free zone company set up. With Mainland, you can work with clients all over the UAE. In a free zone set up, you will be limited to doing business only inside the free zone. It is ideal if you go with the mainland option as you will be able to serve the widest customer base without any red tape.
Step 2: Choose a Business Name
Your business name must be inline with the naming conventions of Dubai. Make sure it does not include any religious, political or offensive terms. Also take special care to make sure it reflects the nature of your business. After you have decided on a name, register it with the Department of Economic Development (DED).
Step 3: Submit Your License Application
Submit your license application to the Department of Economic Development (DED). As a part of this application, you will have to include the following:
- Passport copies
- Visa copies
- Business plan
Step 4: Obtain External Approvals (If Required)
You will have to consult with Dubai Municipality, Dubai Electricity and Water Authority (DEWA), and Dubai Civil Defense (for fire safety-related activities) to see if you need any more approvals.
Step 5: Secure a Business Location
Your technical services company is going to need a physical office. This space must be in line with the DED’s requirements.
Step 6: Pay the License Fees
Once your documents are approved, you will need to pay the license fees. The Technical Services License in Dubai costs typically range from AED 10,000 to AED 15,000,
Step 7: Obtain Your Trade License
Once the payment is processed, you will receive your Technical Services License in Dubai.
Benefits of Getting a Technical Services License in Dubai
There are several advantages to setting up a technical services company in Dubai:
1. High Demand for Technical Services
Dubai’s construction, real estate, and corporate sectors are constantly expanding, increasing the need for skilled tradespeople. This makes it a profitable sector with steady business opportunities.
2. 100% Foreign Ownership
As of recent changes, foreign investors can own 100% of a technical services company in the mainland without requiring a local sponsor.
3. Ability to Sponsor Employees
With a Technical Services License in Dubai, you can sponsor visas for employees, allowing you to scale your business efficiently.
4. No Corporate Tax
Dubai does not impose corporate taxes on technical services businesses operating in the mainland, allowing entrepreneurs to retain more profits.
5. Ability to Operate Across the UAE
Unlike free zone businesses, a technical services company with a mainland license can provide services across Dubai and the UAE without restrictions.
Can I Start a Technical Services Business Without an Office?
Yes! Some technical services companies can operate with a virtual office, especially if they do not require storage or workshop space. However, having a small office may add credibility to your business and make visa processing easier.
Do I Need a Local Sponsor for a Technical Services License?
Previously, mainland businesses needed a UAE national as a local sponsor, but recent changes allow full foreign ownership for many business activities, including technical services.
If you’re setting up in a free zone, you retain 100% ownership automatically.
In Conclusion,
Starting a technical services company in Dubai is a great opportunity for entrepreneurs looking to enter a high-demand industry. You can legally provide skilled trade services and build a profitable business by obtaining a Technical Services License in Dubai.
To simplify the process, many entrepreneurs work with business setup consultants who handle paperwork, approvals, and registration on their behalf. If you’re ready to start your technical services business, reach out to a professional consultant like SetHub today and take the first step toward success in Dubai!
