What is a professional license, and who needs one?
A professional license is required for service based businesses that earn revenue from expertise. Invest in Dubai gives consulting firms, administrative services and educational institutions as examples.
Sharjah's Economic Development Department defines it as a license for services based on experience and qualifications. In Abu Dhabi, professional activities are licensed under the same commercial economic license service on TAMM.
A freelancer permit is a different product. Abu Dhabi's Freelancer License and Dubai's E-Trader license are separate from the professional license.
Do you need a local service agent for a professional license?
It depends on the legal form and the emirate, and the role has not been abolished for every legal form.
The sole establishment and the civil company are not among the five company forms in the Commercial Companies Law, so the law's foreign ownership provisions for companies do not automatically govern them. The Ministry of Economy and Tourism says the requirement for a national agent still exists for sole establishments, subject to the legislation of local authorities.
The UAE Government portal lists an attested service agent contract among the license documents for civil establishments and companies that are 100% owned by nationals of countries outside the GCC. A local service agent agreement must be attested by the notary public or the court.
Good to knowNo DET or Invest in Dubai page we checked states the current Dubai rule for professional licenses. We confirm the position for your activity and legal form with the authority before you apply.
How do the rules differ by emirate?
Each emirate's authority publishes its own position. The table sets out what each one says.
Professional activities in Dubai, Abu Dhabi, Sharjah and Ajman| Emirate | How professional activities are licensed | What the authority publishes on agents |
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| Dubai | Professional license, for service based businesses | The application asks for details of partners, local service agents or managers |
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| Abu Dhabi | Under the commercial economic license service on TAMM | ADRA's setup steps mention a local service agent agreement as needed |
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| Sharjah | Professional license, for services based on experience and qualifications | A sole proprietorship (service agent) form exists for a foreign national with a citizen agent |
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| Ajman | Civil business company for a professional activity | If any partner is not a GCC citizen, a UAE citizen must be appointed as agent or made a partner at any percentage |
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Does your profession need approval from a regulator?
The UAE Government portal states that financial consultation activities need approval from the Securities and Commodities Authority, and that other regulated professions need approval from their sector regulator.
A company must obtain all the approvals its activity requires before it starts that activity, under Article 11 of the Commercial Companies Law. We confirm the position for your activity with the authority before you apply.
Good to knowThe regulator decides whether to approve. We prepare and submit the application and cannot promise the outcome.
Does an individual with a professional license pay corporate tax?
The Ministry of Finance lists natural persons conducting business activities in the UAE among the persons subject to corporate tax.
The Federal Tax Authority says that resident natural persons, as well as juridical persons, can elect Small Business Relief if revenue is AED 3 million or less. We did not find, on a primary source, the level of turnover at which an individual comes within corporate tax.
Good to knowThis page states what the official sources say. It is not tax or legal advice.