Technical Services License in Dubai – Steps & Costs

A key aspect of setting up a business in Dubai is understanding the licensing requirements, especially for technical service companies. The Technical Services License is crucial for businesses offering specialized services that require technical expertise. Whether you are an engineer, IT consultant, or any other professional offering technical services, obtaining this license is an essential step to operate legally in the city.

This blog will walk you through what a technical services license in Dubai is, the benefits it offers, the steps to obtain one, and, most importantly, the Technical Services License Cost in Dubai.

What is a Technical License in Dubai?

A Technical Services License is a legal authorization issued by the Department of Economic Development (DED) in Dubai. This license is required for companies or individuals who wish to offer technical expertise, which includes services in engineering, IT, technology solutions, and other specialized fields. With this license, businesses can legally operate in Dubai, offering their professional and technical services to clients across the city and beyond.

The Technical Services License Cost in Dubai can vary depending on the specific activities you wish to engage in and the setup requirements. It's important to calculate these costs early on to ensure a smooth business setup process.

Services Provided by a Technical Service Company in Dubai

A wide range of services fall under the umbrella of technical services in Dubai. Here are some examples:

1. Engineering Services

• Civil engineering
• Mechanical and electrical engineering
• Structural and architectural consulting

2. IT and Software Solutions

• Website and mobile application development
• IT support and consultancy
• Cloud services and network management

3. Maintenance Services

• Equipment maintenance
• Facility management
• HVAC system installation and repair

4. Consulting Services

• Business IT strategy
• Technical research and development
• Quality assurance and technical audits

5. Training and Development

• Technical skills training for employees
• Certifications in engineering and IT fields
• Workshops for specific technical skills

These are just a few examples of the services that can be offered under a Technical Services License in Dubai. Businesses must ensure that the services they provide align with the approved activities under their license.

Permitted Activities in Technical Services

Under the Technical Services License, businesses can engage in a variety of activities that are directly related to their technical expertise. Some common permitted activities include:

• Installation and repair services for electrical systems
• Providing technical consultancy for construction projects
• Offering network security solutions
• Providing technical training to employees and organizations
• Supplying and installing computer systems and hardware
• Offering software development and support services

The permitted activities are clearly defined, and businesses should ensure that the activities they plan to conduct are within the scope of their license to avoid legal complications.

Benefits of Technical Services License in Dubai

There are several advantages to obtaining a Technical Services License in Dubai. These benefits are key to the growth and success of your business:

1. Access to a Growing Market

Dubai is a hub for global trade and business. By obtaining a technical services license, you gain access to a vast market for your specialized services, from local businesses to multinational corporations.

2. Legal Operation

With a valid technical services license, you are authorized to operate legally in Dubai. This ensures that you comply with the city's laws and regulations, avoiding any fines or penalties.

3. Opportunities for Networking

Dubai is home to numerous trade events, conferences, and business networking opportunities. With a technical services license, you can attend these events and expand your business network.

4. Competitive Advantage

Having the proper licensing can give you a competitive edge in the market. Clients often prefer working with licensed companies because it adds credibility and reliability to your services.

5. Tax Benefits

Dubai offers several tax advantages, including a tax-free environment for most businesses. This is especially beneficial for technical service companies, as it allows for higher profit margins.

How to Start a Technical Services Company in Dubai

Setting up a technical services company in Dubai involves a few key steps. Here’s a breakdown of the process:

1. Choosing a Place

First, decide where you want to set up your business in Dubai. You can choose to establish your business in a free zone or on the mainland. Free zones offer advantages such as 100% foreign ownership, while mainland setups provide more flexibility in terms of customer base and local business operations.

2. Select a Company Name

Your company name should be unique and reflect your technical services. The name must also adhere to Dubai’s naming conventions, which prohibit the use of offensive or inappropriate words.

3. Select a Legal Structure

Choose the legal structure for your business. Options include a limited liability company (LLC), a sole proprietorship, or a branch of a foreign company. The structure you choose will determine your liability, ownership, and other operational factors.

4. Rent an Office

Renting an office is a mandatory step in the process. The size and location of the office depend on your business needs. For mainland businesses, the office must be in a commercial space. Free zone businesses often have ready-made office solutions.

5. License Application and Documentation

You’ll need to submit an application for the technical services license with the required documents. These typically include:

• A copy of the company’s passport
• Proof of address
• Copies of the legal structure
• Business plan

6. Get Your Technical Services License

Once your application is approved and the necessary fees are paid, you will receive your Technical Services License in Dubai. This license allows you to start operations legally within the country.

Technical Services License Cost in Dubai, UAE

The Technical Services License Cost in Dubai varies depending on several factors, including the legal structure of your business, the location of your office, and the type of services you plan to offer. Here are some key cost components to consider:

1. License Fee

The cost of the technical services license itself can range from AED 10,000 to AED 30,000 depending on the type of activities and where you plan to set up your business. Costs are generally higher for businesses that require more complex operations.

2. Office Rent

Office rental prices in Dubai can vary widely depending on the location. A typical office rental can cost between AED 15,000 and AED 100,000 annually, depending on the size and location of the office.

3. Visa Costs

You will need to apply for employee and investor visas. The visa cost depends on the number of visas required. Typically, a visa can cost anywhere between AED 3,000 to AED 7,000 per visa, depending on the type.

4. Sponsorship Fees

For mainland businesses, you will need a local sponsor. The local sponsor’s fees typically range from AED 5,000 to AED 20,000 per year.

5. Other Costs

Other costs to consider include registration fees, legal fees, and documentation fees, which can add to the overall Technical Services License Cost in Dubai.

The total cost for setting up a technical services company can range from AED 30,000 to AED 150,000, depending on your specific requirements.

Conclusion

The Technical Services License Cost in Dubai is an essential consideration for anyone looking to start a technical services business in the UAE. Understanding the costs involved, along with the steps required to obtain the license, will help you plan your business setup more effectively. While the costs can vary, the benefits of operating in Dubai’s thriving business environment far outweigh the initial investment. By following the steps outlined above, you can successfully set up your technical services business in Dubai and start offering your expertise to clients across the region.