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Technical Services license in Dubai | Cost and Activities

To get a service license in the UAE, the steps include selecting an activity (e.g., consulting, IT services, or healthcare), picking a jurisdiction (mainland, free zone, or offshore), choosing a trade name, filing paperwork (such as passport copies and lease contracts), and paying AED 1,000–50,000+ in fees. The period varies between the emirate or authority from 3 to 30 days. If so, then continue reading as this is a no-fluff step-by-step beginner’s guide to aperture and depth of field.

What Does a Service License Mean in the UAE?

A service license in the UAE is also known as a professional license. It permits you to offer services such as management consultancy, IT solutions, educational services or legal advisory, but is not involved in buying or selling of physical goods or manufacturing of products. It’s a portal for entrepreneurs, freelancers and foreign investors to participate in the UAE’s vibrant business community, in line with its Economic Vision 2030 of economic diversity.

When I facilitated the launch of a friend’s marketing consultancy in Dubai, she was amazed that the service license enabled her to blend similar activities such as media consultancy and branding services under a single license. Dit is voor flexibiliteit een grote trekpleister voor professionals die toetreden tot het ondernemersgerichte klimaat van de VAE.

  • What It Covers: Services such as IT consulting, logistics services, health care consulting and tutoring.
  • Who It’s For: SME owners, including consultants & professionals who are starting a business in Dubai, Abu Dhabi & Sharjah.
  • Why It Matters: It’s a way for the UAE to attract foreign investment by making business registration more efficient.

Benefits of a UAE Service License for Your Business

Service License Service License is the best option for a UAE business setup. Here’s why it stands out:

  • Setup costs are low: There are no warehouses, and it is very profitable. Starting from AED 5,000 per annum, you can lease a flexi-desk in a free zone like UAQ FTZ.
  • Fast and Remote Alternatives: If you are using remote registration through Basher or the DED sites, remote registration may only take around 15 minutes for minor configurations.
  • Tax Benefits: Companies with annual profits of up to AED 375,000 are not taxed, which is ideal for small business owners and freelancers.
  • Activity Flexibility: Most free zones allow you to have 6–7 different businesses (hr consultancy, software design, etc.) under one license.
  • Global Presence: Free zone licenses allow 100% foreign ownership and 100% repatriation of capital for foreign entrepreneurs.

Which Service License Type Suits Your Needs?

There are a few different service licenses to choose from, depending on the types of business you conduct and your goals. Here are the key types:

  • Mainland Professional License: Licensed by the DED (e.g., Dubai Economy, Sharjah DED), for services such as technical services (e.g., plumbing, air-conditioning) or consultancy. May require a local sponsor.
  • Free Zone Service License | IT Consultancy, Media Services, Logistics Consultancy: Offered in JAFZA, DIFC, ADGM or UAQ FTZ for activities such as IT consultancy, media services, logistics consultancy, etc. Offers 100% ownership.
  • Premium Service License: Provided by UAQ FTZ for specific activities such as aviation consultancy and realty consultancy. Limited to one activity.
  • CSP (Certification Service Provider) – granted by TDRA to be used for electronic certification services such as e-commerce signatures.
  • Trust Service Provider (TSP/QTSP): Electronic signature and authentication, valid for 2 years.
  • Freelancer License: Those who provide services such as lifestyle coaching or tutoring in free zones.
  • E-Commerce License: Ideal for online service businesses that are common in Dubai and Sharjah.

Essential Requirements for a Service License

To get a service license, there are certain requirements that you will need to fulfil, as directed by the DED, free zone authorities, or the offshore regulators. Here’s what’s needed:

  • Trade Name: Select a trade name that best describes your business (Ex, IT Solutions LLC). It has to follow rules: no swearing, it is a legal form, and it isn’t already taken.
  • Core Documents:
  • Passport copies for all shareholders.
  • Emirates ID (if applicable).
  • Lease agreement or Ejari for mainland installations.
  • LLC or partnership pursuant to the Memorandum of Association.
  • Plans for regulated areas of focus (e.g. medical, legal consulting).
  • Financial statement (e.g. AED 5,000,000 for TSP/QTSP licenses).
  • First Approval: Gain approval from the DED or the authority of the free zone (such as JAFZA, UAQ FTZ). Foreign investors may require GDRFA permission.
  • Special Licences: Operations related to telecommunications or law should be cleared by TDRA or the Ministry of Justice.
  • Facility Requirement: Virtual office/flexi desk/premium office free zones or leased office for the mainland.
  • Chamber of Commerce: Over here, if you need to register with the Dubai Chamber, Abu Dhabi Chamber, or any other chamber.

When I assisted a client with an IT consultancy license in JAFZA, we ensured the trade name was unique via the free zone portal, avoiding delays. Always verify requirements with the relevant authority.

How to Apply: A Clear Step-by-Step Process

Here’s a straightforward guide for newbies to apply for a service license in the UAE, based on my experience in assisting my clients:

Step 1: Select Your Business Activity:

Select from over 2,000 activities (e.g. management consultancy, software design). Utilise lists from DED or free zones.

Step 2: Choose Jurisdiction:

Think about what type of company you need: would you want to have a mainland company, a free zone company (e.g., in DIFC or UAQ FTZ), or an offshore company?

Step 3: Register with Your Trade Name:

You can do this through DED websites, smart applications or free zone portals such as the Rukhsati app. Ensure it’s unique and compliant.

Step 4: Get Preliminary Approval:

Submit passport copies and activity details to the DED or free zone authority. GDRFA clearance options are applicable to foreign investors.

Step 5: Obtain Licences (if required by law):

Get approvals for services such as: medical (Health Authority) or Legal consultancy (Ministry of Justice).

Step 6: Draft Legal Paper:

Draft a Memorandum of Association (For LLC and partnership formations), get it under a notary.

Step 7: Get a Space:

Lease the mainland or choose a Flexi-desk in free zones.

Step 8: Licensing Fees:

Spend AED 1,000-50,000+ within 30 days to prevent your account from being cancelled.

Step 9: Pick Up Your License:

DED service centres, TDRA portal and free zone apps issue the permit.

Step 10: Get into the Chamber of Commerce:

Register with the Sharjah Chamber or any other so that you are compliant.

I guided a client through this process for a logistics consultancy in UAQ FTZ. The remote registration via their portal was a game-changer, saving us travel time.

Understanding Costs and Fees for a Service License(Approx)

Service license costs in the UAE type and jurisdiction are different. Here’s a clear breakdown:

Mainland:

  • Filing Fees: AED 1,000–5,000 (e.g., Dubai DED).
  • License Cost: AED 5,000–15,000 (for example, technical service license costing AED 9,950).
  • Ejari/Lease Costs: AED 1,000–5,000.
  • Local Sponsor: AED 5,000-20,000/year (if required).

Free Zone:

  • Charges and Fees: AED 5,000 – AED 10,000, for example, JAFZA, UAQ FTZ.
  • License Costs: AED 10,000 – 50,000 (e.g. AED 20,000 for CSP, and AED 75,000 for 5 years CSP).
  • Facility Costs: You can choose either a Flexi-desk (DEWA included, AED 5,000/year) or a premium office (from AED 15,000 / year).

Specialised Licenses:

  • TSP/QTSP: AED 10,000 application, AED 12,000-15,000 per service.
  • Freelancer License: AED 7,500–15,000.
  • E-commerce License: AED 10,000–20,000.

Other Costs:

  • Investor Visa Fee: AED 3,000 – 5,000 per visa.
  • Notary Charges For memorandum of association: AED 500 – 2,000.
  • Opening a bank account: Usually free, sometimes with a minimum balance.

One of my clients allocated AED 15,000 for a mainland technical services license in Dubai, and this incorporates DED fees, Ejari, as well as an investor visa. Take into account any additional costs, such as license renewal (1,000-10,000AED)

How Long Will Your License Take to Process?

This varies depending on your location:

  • Mainland: 5–15 days delivery time to Dubai, Abu Dhabi or Sharjah.
  • Free Zone: 3-10 days in JAFZA, DIFC, UAQ FTZ. Remote registration speeds it up.
  • Specialty Licenses: CSP: ~14 days, TSP/QTSP: up to 30 days (due to TDRA)
  • Online Sites: Basher service can process confidence + licenses in 15 minutes for general cases.

Delays occur if documents submitted are not complete or remain to be approved (eg, by the Ministry of Interior for security services). I was even able to get a client license done in ADGM, a financial advisory license, in 8 days, all documents submitted in the beginning.

Choosing the Right Jurisdiction: Mainland, Free Zone, or Offshore

To address the question of “best emirate for service license” or “mainland vs. free zone comparison”, here is info-box-full-breakdown. To enable quest” breakdown:

Jurisdiction Benefits / Pros Drawbacks / Cons Best For
Mainland – Can work anywhere in the UAE- Access to government tenders- Freedom to choose office location – May require local sponsor- Setup costs generally higher (AED 15,000+) Technical service providers (carpenters, painters), local-focused businesses
Free Zone – 100% foreign ownership- Tax-free environment- Remote-working allowed- Flexi-desk available – Limited to operating within the free zone- Need local agent for UAE market access IT consultants, e-commerce stores, freelancers
Offshore – Very low setup cost- No need for office space- Ideal for international businesses – Cannot trade within the UAE mainland or free zones Overseas investors, asset holders, global entrepreneurs

One friend went with a DIFC licence for her financial consultancy because of the tax incentives and the cachet. Compare Dubai vs. Abu Dhabi, or ADGM vs. JAFZA, according to your industry.

Overcoming Common Hurdles in the Licensing Process

Here are some typical problems and fixes:

  • Document Reported: Incompletely copied passport copy or business plan delays.
  • Solution: Go for PRO services for document checks.
  • Trade Name Conflicts: A Copied or unauthorised trade name becomes disqualified.
  • Solution: Check availability on the DED or Rukhsati app.
  • Regulatory Red Tape: Certain activities, such as telecommunications, require additional
  • Solution: Contact TDRA or the Ministry of Justice as soon as possible.
  • Cost Surprises: Costs you did not expect (notaries to attest) do add up. Solution:
  • Solution: Allocate between AED 2,000 and 5,000 for extras.
  • Language: Forms are difficult for those who are not English speakers. Solution:
  • Solution: Translate via a business setup consultant .

I encountered a delay on an Abu Dhabi client’s healthcare consultancy license because there was no Health Authority approval. Early coordination fixed it quickly.

Answers to Your Top Questions About Service Licenses

Q1: What is a service license in the UAE?

A service license allows professionals to offer services like consulting, IT, or education without trading goods, issued by DED or free zone authorities.

Q2: What documents are needed for a service license?

You’ll need passport copies, Emirates ID, lease contract, Memorandum of Association, and a business plan for regulated activities.

Q3: How much does a service license cost in 2025?

Costs range from AED 1,000–50,000+, including application fees, license fees, and facility costs.

Q4: Can foreigners get a service license?

Yes, especially in free zones with 100% ownership. The Mainland may require a local sponsor.

Q5: What’s the difference between a service and a commercial license?

A service license is for professional services; a commercial license is for trading goods.

Final Thoughts: Launch Your UAE Business with Confidence

Securing a service license in the UAE is your ticket to joining a thriving business environment in Dubai, Abu Dhabi, or free zones like JAFZA or UAQ FTZ. With cost-efficient options, tax benefits, and remote registration, it’s easier than ever for entrepreneurs and professionals to start in 2025. Follow the steps, prepare your documents, and choose the right jurisdiction to launch in 3–30 days.

Ready to begin? Visit DED websites, TDRA, or connect with a business setup consultant for a smooth process. Your UAE business awaits!

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Thinking of starting a company in Dubai? You’re not alone! According to the Department of Economic Development (DED), over 90% of new ventures in Dubai benefit from streamlined e-services. Dubai’s thriving economy, zero personal income tax, and global reputation make it a magnet for entrepreneurs. Whether you want an LLC company formation in Dubai or a free zone company formation, we’ve got you covered with a hassle-free process that gets you up and running fast.

Thinking of starting a company in Dubai? You’re not alone! According to the Department of Economic Development (DED), over 90% of new ventures in Dubai benefit from streamlined e-services. Dubai’s thriving economy, zero personal income tax, and global reputation make it a magnet for entrepreneurs. Whether you want an LLC company formation in Dubai or a free zone company formation, we’ve got you covered with a hassle-free process that gets you up and running fast.

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