The choice of one’s business license is integral for the seamless functioning of the company. Therefore, based on their business activities, entrepreneurs can choose to acquire a professional license (for professional service activities like marketing), an industrial license (for manufacturing processes), or a commercial license (for trading activities). The technical services license in Dubai is highly useful because it covers specific business activities.
These broad categories further have different licenses suited to more niche services. One such bracket is the technical services license in Dubai, which is a commercial license. In this blog, you will learn more about technical services in Dubai.
What is a Technical License in Dubai?
A Technical Services License in Dubai allows businesses to legally provide a range of maintenance, repair, and installation services, such as plumbing, electrical work, HVAC, and carpentry. This license is essential for businesses operating in Dubai’s construction, property maintenance, and related sectors. The license is issued by either the Department of Economic Development (DED) for mainland businesses or the respective free zone authority for those in free zones.
Services Provided by a Technical Service Company in Dubai
A technical service company handles equipment and installations used in production, focusing on optimisation, maintenance, and repair. Below are the services provided by a technical service company in Dubai:
- Plumbing: Installing and repairing pipes, faucets, and drainage systems.
- Electrical Work: Setting up and maintaining electrical systems and wiring.
- Air Conditioning: Installing and servicing AC units.
- Painting: Interior and exterior painting of buildings.
- Carpentry: Building and fixing wooden structures and furniture.
- Flooring and Tiling: Laying and repairing tiles and flooring materials.
- Home Maintenance: General repair and upkeep of residential properties.
- Installation: Setting up various equipment and machinery.
List of Permitted Activities for Technical Services
Technical services are a huge area of business. Consequently, numerous activities fall under its sphere. Business owners can opt for the activity best suited to their needs. The technical services license permits the following activities:
- Plumbing & sanitary contracting
- Electrochemical equipment installation
- Painting contracting & apparatus installation
- Insulation contracting & electricity transmission
- Plaster & cladding works
- Building cleaning services
- Floor & wall tiling works
- Air-conditioning & ventilation
- Carpentry & floor contracting
- Engraving & ornamentation works
- Air filtration system installation & maintenance
- Satellite equipment installation & maintenance
- Electrical fittings
- Partition & ceiling contracting
Please note that even more activities fall under the scope of a technical license.
Benefits of Technical Services License in Dubai
A Technical Services license in Dubai offers numerous advantages for businesses in the technical sector, here’s a more detailed look at the benefits:
1. Legal Authorization and Credibility:
- Legal Authorization: The license provides the necessary authorization to operate legally within Dubai’s technical services sector, ensuring compliance with local laws and regulations.
- Enhanced Credibility: Holding a Technical Services License boosts the business’s reputation and trustworthiness, making them more appealing to clients and partners.
2. Business Expansion and Opportunities:
- Diverse Service Offerings: The license allows businesses to offer a wide range of technical services, including electrical work, plumbing, air conditioning maintenance, and more.
- Access to a Wider Client Base: With the license, businesses can attract a broader range of clients, including residential, commercial, and industrial customers.
- Opportunities for Government Contracts: In some cases, a technical services license can open doors to opportunities to work with government entities and secure high-value contracts.
3. Flexibility and Cost-Effectiveness:
- Flexibility to Operate: Depending on the type of license (mainland or free zone), businesses can operate in various locations and with different types of clients.
- Potential Tax Benefits: Some free zones offer tax advantages and exemptions for businesses operating under a technical services license.
- Simplified Incorporation: Setting up a business with a technical services license can be a straightforward process.
4. Growth and Scalability:
- Unlimited Contract Values: Mainland technical services licenses allow for the pursuit of large-scale projects without restrictions on contract values.
- Potential for Expansion: The UAE’s focus on infrastructure development and smart cities creates a strong market for technical services, offering long-term growth potential.
How to Start a Technical Services Company in Dubai?
Obtaining a technical services license in Dubai is easy with the help of experienced company formation consultants such as Shuraa Business Setup. Follow these steps to get your commercial license quickly.
Step 1. Choose a Business Activity and Jurisdiction:
- Identify your core services: Determine the specific technical services you’ll offer (e.g., electrical, plumbing, HVAC, etc.).
- Select a jurisdiction: Decide between setting up on the Dubai mainland (Department of Dubai Economic Development (DED)) or a free zone (specific free zone authority). Mainland offers broader market access, while free zones may offer certain benefits like tax advantages.
Step 2. Select a Legal Structure and Trade Name:
- Choose a legal structure: Consider options like a sole establishment, limited liability company (LLC), or branch of a foreign company, depending on the number of owners and your business goals.
- Register a trade name: Ensure the name complies with UAE regulations and is approved by the relevant authorities.
Step 3. Secure Office Space and Obtain Initial Approval:
- Lease office space: Renting a physical office is mandatory for mainland companies and often required for free zone companies.
- Obtain initial approval: Apply for initial approval from the DED (for mainland) or the free zone authority.
Step 4. Prepare and Submit Documents:
- Gather necessary documents: This typically includes passport copies, photos, Memorandum of Association (MOA), and potentially a No Objection Certificate (NOC) from your current employer.
- Submit the application: Submit your application along with the required documents and fees to the relevant authority.
Step 5. Finalize and Obtain the License:
- Pay the license fee: Pay the required fees, depending on your specific setup.
- Receive your license: Once approved, the authority will issue your technical services license, allowing you to legally operate your business.
Step 6. Additional Considerations:
- Partner with Shuraa Business Setup: We can provide expert guidance and support throughout the process, ensuring compliance with all regulations and requirements.
Cost of a Technical Services License in the UAE
A technical services license in Dubai can range in cost from AED 11,900 to AED 30,000, depending on location and specific activities. Mainland licenses tend to be on the higher end (starting around AED 18,500) while free zone licenses can be lower (starting around AED 11,900). Additional costs for visas and office space can add another AED 5,000-10,000.
Here’s a more detailed breakdown:
Factors Affecting Cost:
Location: Mainland licenses generally have higher fees than free zone licenses.
Company Size: Larger companies or those requiring more visas may incur higher costs.
Business Activities: The specific technical services you intend to offer can impact the license cost.
Additional Services: Visa applications, office space rental (Ejari), and other related fees will add to the overall cost.
Cost Breakdown (General Estimates):
Mainland License: AED 12,500 + AED 15,000 (including DED Special Activity fees)
Free Zone License: AED 11,900 – AED 18,000
Visa Costs: AED 3,000 – AED 5,000 per visa
Office Space (Ejari): AED 5,000 – AED 20,000 per year depending on location and size
Additional Costs to Consider:
Trade Name Reservation:
Legal Documentation (MOA):
Medical Tests and Emirates ID:
Dubai Municipality Approvals (if required):
Annual Renewal Fees: AED 12,000 – AED 14,000
Recommendation:
It is advisable to consult with a business setup expert or company formation specialist for a tailored cost estimate based on your specific business needs and activities. They can provide a detailed breakdown of all potential costs involved in obtaining your technical services license.
How Can We Assist you for Getting Technical Services License!
There is no better time for someone looking to start a technical services business in Dubai. Shuraa Business Setup offers affordable company formation packages & expert services. We are dedicated to building your enterprise from the ground up.
If you want to reach our expert business consultants, call us at +97144081900. You can also drop a WhatsApp message at +971507775554 for a chat query. You can also email us at [email protected].
Frequently Asked Questions (FAQs)
1. How to Open Technical Services Company in Dubai?
To start a technical services company in Dubai, you’ll need to follow a structured process, including choosing a business activity, selecting a legal structure, registering a trade name, obtaining initial approval, securing office space, and applying for the trade license.
It’s recommended to partner with a business formation specialist for guidance throughout the process.
2. What are the Benefits of Technical Services License in Dubai?
A Technical Services license in Dubai offers numerous benefits for businesses in the technical sector, including legal authorization to operate, increased credibility, access to a wider client base, and opportunities for business expansion. It allows for diversification of services, enhanced professionalism, and can lead to greater profitability.
3. What is the cost of a technical service license in Dubai?
The cost of a technical services license in Dubai can range from AED 11,900 to AED 30,000 or more, depending on several factors including the chosen location (mainland or free zone), the specific activities included in the license, and the size of the company. Additional costs may include visa fees, office space rental, and other operational expenses.
Disclaimer: The information provided in this blog post is for general guidance purposes only and may be subject to change based on updates in government policies, regulations, or licensing requirements. For the most accurate and up-to-date information, it is recommended to consult with a professional business setup consultant or the relevant authorities.
