The ultimate guide to obtaining a technical services license in Dubai, UAE

July 8, 2022by Kate Williams

The United Arab Emirates is the land of opportunities for entrepreneurs, and Dubai is one of the most developed Emirates thanks to the influx of ex-pats searching for jobs and establishing their business entities. You can set up your company in the field of your preference and start working towards riches. If you are planning to provide technical services in Dubai, getting a technical services license will be necessary by connect services middle east.

In this article, you will find information about the process of getting a technical services license, the activities covered under this document, the advantages of obtaining this license, and how we can help you with your application process.

  1. What is a technical services license?
  2. How to obtain a technical services license in Dubai?
  3. What activities are covered under this license?
  4. How much will it cost you to get a technical services license?
  5. Benefits you can get with this license
  6. Why is it important to obtain your technical services license?
  7. The renewal process for a technical services license in Dubai
  8. Get your technical services license with Connect ME

1. What is a technical services license?

One of the first decisions you need to make before starting a business in Dubai is choosing the right license for you. This will depend on your business activities. For example, if you are carrying out professional services like marketing, you will need a professional license. In the same way, manufacturing companies will require an industrial license, and trading businesses will need a commercial license.

However, there are some specific licenses for other professions. The technical services license, for example, is a type of commercial license specifically made for certain business activities, such as carpentry, flooring and tiling, painting, plumbing, concrete works, installation, and maintenance, among others.

As with most licenses, obtaining a services license in Dubai and the UAE is incredibly straightforward. And if you start the process with the assistance of a company formation specialist, like Connect Services Middle East, you can complete this process in just a few simple steps.

2. How to obtain a technical service license in Dubai?

The first move you must make before starting the establishment of your company is to engage with a business setup in dubai firm that can manage every administrative and legal process on your behalf. This will give you total peace of mind that your company setup process is in safe hands and will be carried out as quickly as possible.

Once you have done this, you can obtain your technical services license in just a few steps:

2.1 Free zones or Mainland

When you are setting up a company, one of the most important decisions is whether to set up in a free zone or on the mainland. There are many advantages linked to both locations. For example, the Mainland location offers you services across the whole UAE, as well as the opportunity to work on government contracts.

On the other hand, free zones offer a different range of benefits. For example, an easy and quick incorporation process, zero currency restrictions, and tax exemptions.

The right location for you will depend on the nature of your business. Our professionals can help you make this decision, advising on the best option for your specific requirements.

2.2 Choosing your company name

The following step is to select your company name. For this process, you must take into account some strict, yet easy-to-follow, set of naming conventions. Once again, the specialists of Connect Services Middle East can help you with this step, so contact us!

In short, you must avoid any blasphemous or offensive language. Avoid any abbreviations if you are naming your company after yourself (for example, Jason Alvin Consulting, rather than J Alvin Consulting). Also, your company cannot have the same name as a well-known organization and you must ensure that the chosen name is available.

2.3 Document preparation and submission

The following step is to make your technical services license application. If you establish your company on the mainland, you can apply directly to the Department of Economic Development. If you decide to establish your business in a free zone then you can apply directly to the local authorities. 

In both cases, our specialists can carry out this process for you.

To start your application, you need to submit the following documents:

  • Two color passport size photos
  • Memorandum of Association (MoA)
  • Completed application form
  • Passport copy of the proposed owner or owners
  • NOC from current employer (if applicable)

Please note that the MOA must be notarized in person at the Dubai public notary. This process usually lasts two hours.

2.4 Clearance and fee payments

Once the authorities review the application and give clearance to the documents submitted, you will have to pay the required fee in order to obtain your technical license.

2.5 Technical services license and company documents

Obtaining this license from the respective authorities means that your technical services company can start operating legally in the UAE and gain new business and contracts.

Connect Services Middle East will help in coordinating the process of company formation seamlessly in Dubai at the lowest cost.

3. What activities are covered under this license?

Several technical services categories are allowed under this license. Some are the following:

  • Corporate cleaning services
  • Ventilation, air conditioning, and filtration services
  • Concrete works
  • Carpentry and flooring
  • Floor and wall tiling works
  • Insulation contracting
  • False ceiling and light partition installation
  • Solar energy systems installation
  • Plumbing and sanitary contracting
  • Electrical fitting and fixture services
  • Plaster and cladding works
  • Technical services contracting
  • Installation and maintenance

The requirements for technical services are high due to the rise in the number of real estate and commercial spaces. Becoming a trusted actor in the technical services sector will help the company to attract new clients and gain prospective business contracts.

4. How much will it cost to get a technical services license?

Before getting this license, there are many aspects of the cost that you must take into account. If you are establishing your company on the mainland, you will need to account for additional approval in the Department of Economic Development, as well as a license registration fee and potentially a local sponsor fee if it is required.

The technical services license cost in Ajman Mainland, Dubai, or any other Emirate is, generally, AED 25,000-30,000. Also, you must take into account the cost of premises, visas, and other overheads.

Alternatively, you can establish yourself in a free zone, which is, generally, the most cost-effective way to start a technical service company in the United Arab Emirates.

Some free zones, such as Sharjah Media City, offer a wide range of affordable license packages with no paid-up share capital requirement, no annual audit, and an easy incorporation process. Another advantage of the free zones is that you do not need to be present in the UAE to establish your new business.

A technical services license for sale in Sharjah, including the use of the free zone’s co-working facility costs and the visa application, is around AED 24,775.

5. Benefits you can get with this license

The advantages of obtaining a technical services license may vary whether your company is established on the mainland or in a free zone.

5.1 Mainland

Setting up a business in this location brings multiple benefits. For example:

  • The ability to expand the company by adding more branches easily
  • A wide range of business activities is available under the mainland technical sector.
  • Get more warehouses, offices, and visas easily by being in Dubai Mainland.
  • 100% ex-pat ownership and full control of the company.
  • No personal or corporate tax
  • Get government contracts and large private sector contracts.
  • Full profit repatriation to home country

5.2 Free zones

Some advantages of establishing your business in a free zone are the following:

  • Access to cost-effective free zone business packages
  • 100% foreign ownership and full profit repatriation
  • Access to world-class office infrastructure and warehouse facilities. 
  • Quick process of obtaining company documents and UAE residence visa
  • Long list of business activities to choose from under the technical services category.

6. Why is it important to obtain a technical services license?

Firstly, you must understand that a UAE company license is a crucial document for every legal business in the country. Each onshore and offshore business in Dubai must be licensed, whether it is in a free zone or a major territory.

Once your company gets a license, at the same time, it gets an identity. A technical services license is a document that certifies a company’s legal status. The relevant authorities give business licenses to provide responsibility for their operations in the region. It also organizes and categorizes the company’s legal cases.

Obtaining a license for technical services is of utmost importance if you wish to trade lawfully as a company. This document will ensure that the business is managed in line with the UAE’s Commercial Firms Act. Furthermore, getting a technical license in Dubai helps you to do business in accordance with the regulatory authorities’ laws, as well as provides you with several advantages.

7. The renewal process for a technical services license in Dubai

If you obtain your license through the Department of Economic Development (DED), you must renew it every year. The process to do so is the following:

7.1 Authorization

To renew a technical license in Dubai, you will need authorizations and approvals from the concerned governmental bodies. For most licenses, it depends on the nature of the business. For example, a restaurant needs approval from the food safety department and municipality, likewise, a taxi service company needs consent from the Road and Transport Authority of Dubai.

As a recommendation, it is better if you get the authorization letter before applying for a license renewal.

7.2 Documentation

Some documentation needed for the renewal of the license are the following:

  • Attested Ejari
  • Approvals
  • Tenancy contract
  • Renewal form
  • Photograph of all the business partners
  • Payment voucher/transaction number (given by the DED)

7.3 Tenancy contract

Your tenancy contract must be valid for at least three months from the application date. Make sure to check your tenancy contract and then apply for the renewal along with an attested Ejari.

8. Get your technical services license with Connect ME

If you partner with the right company and you acquire the right knowledge, getting a technical services license in Dubai will not be a difficult process. However, it is necessary to have a certain level of expertise in the process. This is why it is important to note that this procedure will only be straightforward if your license application is complete and free from errors at the time of submission.

To ensure this is the case, it is a good idea to work with a company formation specialist such as Connect Services Middle East when establishing a new business in the United Arab Emirates.

8.1 Who we are

We are a team of capable and diligent professionals who are passionate about bringing to life the dreams of aspiring entrepreneurs and startups. As well as handling your technical services contracting process, our specialists can provide you with solutions such as:

Our experts will handle any administrative and legal process involved in the establishment of your company, leaving you free to get on with running your business. So if you are looking to work with a diligent and trustworthy team, do not hesitate and give us a call. You can always count on our professionals to guide you through every step of the journey.

You can always contact our team to ask any questions you may have regarding the company formation process in the UAE. Give us a call at +971 43 316 688 and receive all the answers you need from our agents. Email our team at any time at info@connectme.ae, there will always be an available representative ready to assist your needs.

If you are searching for a new job, you can always try looking on thetalentpoint.com, the best job search platform you can find in the UAE. On The Talent Point, you will have the opportunity to connect with the best enterprises in the region and work side-by-side with the best professionals. Additionally, you can send your CV to contact@thetalentpoint.com.

Kate Williams

Kate is the Global Strategy Director at Connect Group. She is specialized in company formation, international business expansion and employee relocation. She studied in Southampton (United Kingdom) and moved to the UAE in 2014.