The business environment of Dubai is one that attracts entrepreneurs from all over the world, and it is no surprise that with each hopeful business mind that comes to Dubai, along comes a plethora of ideas. Every one of these potential ideas represents a project that needs careful planning to execute and implement before revenue generation.
Alongside Dubai’s growth as a hub for commerce and trade, another sector that has played a major role in this growth is the area of project management. From construction to IT, project management is essential for the developments in the region. If you’re considering offering project management services in Dubai, you’ll need a project management license. Here’s a step-by-step guide on how to obtain this license and the advantages it offers.
What is a Project Management Licence?
A project management license gives the holder the rights to manage the many projects spread across a gamut of industries in Dubai. As a license holder, you or your business will face no red tape when it comes to offering your sought after services which may include consultancy and other project-based services. If this is your focus area, then a project management license in Dubai is essential for your success.
Step-by-Step Process to Obtain a Project Management License in Dubai
1. Select the Appropriate Business Structure
The first step in applying for a project management license in Dubai is to decide on your company’s legal structure. When it comes to this, you have two choices. You can choose from either a mainland business or a free zone business. We have seen that the Dubai Multi Commodities Centre (DMCC) is a popular choice among project management ventures in Dubai.
- Choose Your Company Name
Dubai has regulations in place for naming companies. You must take note of the same and name your company accordingly. Some things to avoid in the name are offensive language, references to religion/politics and abbreviations of your name. Once you’ve decided on the name, you can move on to the project management license application process.
3. Submit Your Documents
Documents in relation to your application need to be submitted to the Department of Economic Development (DED) if you want to register as a mainland business. If you’re going down the free zone route, the relevant free zone authority will process your application. Some of the documents that you should have on hand before initiating this process are:
- Passport copies of the shareholders
- Proof of residence
- Business plan (for certain free zones)
- Notarized Memorandum of Association (MoA)
For most free zone entities, associated costs do not differ too much. However if a mainland business is what you want to go for, the project management license in Dubai cost will vary depending on your business activity and size.
4. Choose Your Business Activities
You will need to list out and mention the project management license activities your business will conduct when applying for the license. Activities can include:
- Consultancy
- Supervision
- Execution of various types of projects such as construction, IT, or finance.
Choose activities that align with you business plan as your business license will be granted on the activities you choose.
5. Lease an Office Space
Whether you are a free zone or mainland business, leasing an office space for your operations is required by law. If you are a free zone business, you’ll be able to use co worling spaces or hot desks for a start. However, a mainland company will call for a permanent physical office space.
6. Obtain Approvals and Pay Fees
Once all documents are submitted, the relevant authority will review your application and request additional approvals if necessary. After receiving approvals, you’ll be required to pay the licensing fees. The project management license cost in Dubai can vary, but expect to pay between AED 15,000 to AED 50,000 depending on your setup.
7. Receive Your License
Once all approvals are in place and fees are paid, you’ll receive your project management license. You are now legally allowed to offer project management services in Dubai.
The Cost of a Project Management License in Dubai
The project management license in Dubai cost depends on several factors, such as whether you’re setting up on the mainland or in a free zone, the size of your company, and the type of projects you will be managing. For a small to medium-sized business, expect to pay between AED 15,000 to AED 50,000. This fee includes the registration, office space rental, and other government fees.
While the initial project management license cost in Dubai might seem high, the potential for business growth and the tax advantages offered in certain free zones make this investment worthwhile.
Advantages of Holding a Project Management License in Dubai
1. Access to a Thriving Business Environment
Holding a project management license in Dubai opens up the possibility of working with both local and international clients. Dubai’s robust infrastructure, strategic location, and government support for business development make it an ideal place for project management professionals.
2. Flexibility in Business Operations
A project management services license in Dubai allows companies to work across various industries, including construction, IT, healthcare, and more. You can manage large-scale projects, from initiating to completing them, providing a wide array of services under the same license.
3. 100% Ownership in Free Zones
Setting up your project management company in a Dubai free zone allows you to enjoy full ownership of your business. This is particularly beneficial for foreign entrepreneurs, as you won’t need a local sponsor for your operations.
4. Financial and Tax Benefits
Dubai offers some of the most business-friendly tax policies in the world. With zero income tax and low VAT, businesses can enjoy a higher profit margin. Additionally, companies established in free zones often benefit from customs duty exemptions on imports and exports.
5. Visa Eligibility for Employees
Having a project management license allows you to sponsor visas for your employees. This is especially crucial for expanding businesses that need skilled workers to manage large-scale projects.
Challenges to Consider
While there are many advantages, obtaining a project management license in Dubai does come with its challenges. The high project management license cost in Dubai might be a hurdle for startups. Additionally, complying with local laws and regulations can be complex, especially for foreign investors. However, with the right guidance, these challenges can be navigated effectively.
How can SetHub help?
Obtaining a project management license in Dubai is a strategic move for businesses looking to tap into Dubai’s thriving market. The process might seem daunting, but the long-term benefits far outweigh the initial costs. From legal rights to flexibility and tax advantages, holding a project management license can open doors to vast business opportunities in Dubai.
If you’re looking to obtain a project management services license in Dubai, SetHub is here to help. We specialize in business setup services, ensuring a smooth and hassle-free experience from start to finish. Contact SetHub today to learn more about how we can assist you in obtaining your license and start growing your project management business in Dubai.