How to Get a Service License in the UAE

Choose your activity and jurisdiction, apply for a trade name, submit documents, and pay fees A step-by-step guide” – Decide what business activity you’re setting up for (e.g., consulting, IT or education), determine your jurisdiction (mainland, free zone or offshore), register your trade name with the DED or free zone authority, submit documents (e.g., copy of passport, lease contract), and pay fees (AED 1,000 — 50,000+). It takes 3-30 days, depending on the emirate and the type of license. For the full instructions, keep reading to get the tutorial.

What Is a Service License in the UAE?

With a service license in the UAE, also referred to as a professional license, it becomes possible to provide services such as consulting, marketing, IT, healthcare, or education, not involving the exchange of physical goods or production. For consulting, freelancing, or any small business considering something like Dubai, Abu Dhabi or other emirates, this is an excellent option.

I recall helping a friend establish her management consultancy in Dubai. She was excited to find that she could carry out multiple activities, such as HR consultancy and marketing consultancy, under a single license. So, this versatility makes the service license an excellent option for any entrepreneur looking to access the flourishing business environment in the UAE.

• Key Activities: IT services, legal consultancy, educational consultancy, media consultancy, logistics services, etc.
• Locations: Onshore, Offshore (such as JAFZA, DIFC or UAQ FTZ) or Freezones. Types.
• Who Needs It?: Business owners, foreign investors, entrepreneurs, SME or start-up business owners and professionals who are forming a company in the UAE.

This licence dovetails with the UAE Economic Vision 2030, which aims to encourage foreign investment and drive economic diversification by streamlining business setup laws.

Why Choose a Service License for Your UAE Business?

What is a service license in the UAE? A service license in the UAE has its perks, and thus, it is a lucrative attraction to set up business in the UAE. Here’s why it’s a good idea:

• It is Cost-Effective – No Warehousing/Unnecessary Inventory to Buy! Controlling costs, A flexi-desk or virtual office in a free zone like we’re in, UAQ FTZ, keeps costs down.
• Quick and Remote-Friendly: Plenty of jurisdictions, including Dubai and Abu Dhabi, have the option to register remotely, typically in 3–15 days.
• Tax advantages: Small businesses earning annual taxable income up to AED 375,000 enjoy a 0% corporate tax rate – perfect for consultants and freelancers.
• Flexibility: Up to 6-7 activities (like Computer Consultancy, Software Designing) can be added in one license as per the freezone authority.
• International Appeal: Great for overseas investors in taking their slice of the UAE’s business-friendly pie.

A colleague, for instance, established an IT consultancy in JAFZA and saved tens of thousands by choosing a virtual office instead of a real one. The tax breaks also allowed her to reinvest profits in her business.

Types of Service Licenses in the UAE

Knowing the types of service licenses out there can help you make the right choice for your UAE business. Here are the main options:

• Professional License (Mainland): Licenses provided by DED (e.g., Dubai Economy, AD DED) for businesses in the form of consulting, legal services, or technical services. Requires a local sponsor in certain cases.
• Free Zone License: Free zones, such as JAFZA, DIFC, ADGM, or UAQ FTZ, provide this. Perfect for IT services, media consultancy, or educational consultancy with 100% ownership for foreigners.
• Premium Service License: Can be obtained in UAQ FTZ for professional services such as logistics services, aviation consultancy, or real estate consultancy. Only available for one activity per license.
• Certification Service Provider (CSP): Granted by the TDRA for electronic certification services, e.g. e-commerce signatures.
• Trust Service Provider (TSP/QTSP): Issuing the electronic identification for a period of at least 2 years with costs that start at AED 10,000.
• Freelancer License – For people who are freelancing (tutoring, lifestyle coaching, etc.) at free zones.
• E-commerce License: This is for online service-based companies, as part of the business is conducted online, this license is steadily growing in popularity in Dubai & Sharjah.

Each type is right for different business activities and jurisdictions, so decide based on your goals. For example, a free zone license in DIFC is fantastic for financial advisory, while a mainland license is perfect for technical services such as plumbing or carpentry.

Requirements for Obtaining a Service License

In order to get a service license in the UAE, you must adhere to certain requirements. Here’s what you need:

• Trade Name Approval: Reserve an exclusive trade name with the DED or the free zone authority, such as Dubai Economy  UAQ FTZ. Make sure that it reflects your business purpose and complies with regulations (e.g. no vulgar words, includes a legal form such as LLC).
• Core Documents:
• Passport copy for all shareholders.
• Emirates ID (if applicable).
• Lease agreement or Ejari registration for mainland-based businesses.
• Articles of Association (in case of partnership, LLC, or joint stock company).
• Business plan for regulated use cases (such as legal consultancy, healthcare).
• Financial data publication (eg AED 5,000,000 for TSP/QTSP licenses).
• Preliminary Approval: Make sure to get preliminary approval from the DED or free zone authority. Foreign investors may require GDRFA approval.
• Government Permissions: Certain actions (such as in the case of legal services and telecommunications) may require permissions from entities such as the MoJ or TDRA.
• Facility: A flexi-desk, virtual office, as well as a premium office in the free zone or a leased office in mainland setups.
• Chamber of Commerce Registration: Indispensable in a few emirates (e.g., Dubai Chamber, Abu Dhabi Chamber).

Step-by-Step Process to Get a Service License

This is how you can apply for a service license in the UAE, according to my experience helping my clients through it:

Step 1: Define Your Trade:

Go for categories such as IT consultancy, marketing consultancy or educational services. Look at the DED or free zone list of more than 2,000 activities.

Step 2: Choose a Location:

Choose from mainland, free zone (e.g. JAFZA, UAQ FTZ) or offshore. They each have specific advantages, such as tax breaks in free zones.

Step 3: 1- Register a Trade Name:

Apply for your trade name on the DED website/smart app/free zones’ portal. See that it’s readily available and that it meets with regulations.

Step 4: Initial Approval:

File your application with the DED or free zone authority. Provide photocopies of passports and itinerary information. GDRFA approval might be required for foreign investors.

Step 5; Obtain More Permissions:

For activities that are subject to regulations (eg, legal advice, healthcare), obtain consents/permissions from entities such as the Ministry of Interior or Health Authority.

Step 6: Memorandum of Association:

It’s compulsory to sign in cases of LLC, company, partnership, or joint-stock company formations. Get it notarised if needed.

Step 7: Rent a Place:

Either present a copy of the rental agreement or a copy of Ejari for mainland companies, or use a flexi-desk in case of free zones.

Step 8: Make a Payment:

Price is anywhere between AED 1,000–50,000+, depending upon the type of license and emirate. Please submit payment within 30 days to prevent cancellation.

Step 9: Obtain Your License:

Pick up your service permit at DED branches, smart apps, or free zone websites such as TDRA for CSP licenses.

Step 10: Chamber of commerce registration:

Be a part of the Dubai Chamber of Commerce or the emirate chambers to adhere to the law.

I had no problem with the above process when I helped a media consulting services start-up in DIFC. The remote registration is a time saver; it saved us weeks!

Service License Costs and Fees in the UAE (Approx)

Service licence fees in the UAE Service licence fees in the UAE tend to depend on the jurisdiction and the type of activity. Here’s a breakdown:

Mainland License:

• DED Fees: AED 1,000 – 15,000 for application and issuance.
• Ejari Registration: AED 1,000–5,000 (for lease contracts).
• Local Sponsor Fee: Varies; typically AED 5,000–20,000 per year.
• Example: The cost of a technical services license in Dubai mainland is approximately 9,950 AED, including DED fees and Chamber of Commerce registration.

Free Zone License:

• Fees to Apply: AED 5,000–10,000 (e.g., UAQ FTZ, JAFZA).
• License Costs: AED 10,000 – 50,000 (e.g. AED 20,000 for a CSP, AED 75,000 for 5 5-year CSP).
• Acvatas Facilities: Flexi-desk AED 5,000/year or a premium office (AED 15,000+/year).
• Specialised Licenses:
• TSP/QTSP License: AED 10,000 application, AED 12,000-15,000 per service.
• Freelancer License: AED 7,500 – 15,000 in a free zone.

Additional Costs:

• Visa Charges: AED 3,000–5,000 for each investor visa.
• Bank Account Opening: Free with a few banks, but a minimum balance may be needed.
• Notary Charges AED 500–2,000 for the memorandum of association.

When I assisted a client in obtaining a freelancer license in Sharjah, we planned for AED 12,000, including the license and virtual office, to save as much as we could. Be aware of all hidden fees, such as the price of renewing a licence!

How Long Does It Take to Get a Service License?

The time of processing of a service license in the UAE depends on the jurisdiction and the type of license:

• Mainland: 5-15 working days depending on the emirate (e.g., Dubai, Abu Dhabi).
• Free Zone: 3–10 days for JAFZA, UAQ FTZ or DIFC. Remote registration speeds things up.
• Professional Licenses CSP ~ 14 days, TSP/QTSP can take up to 30 days because they are review by TDRA .
• Online Setup: Licenses from the Basher service can be available within 15 minutes for basic tasks.

Should documents be incomplete or require application for approval (such as legal consultancy from the Ministry of Justice), some delays may occur. My ADGM client received her financial advisory license within 7 days by having all documents prepared in advance.

Mainland vs. Free Zone vs. Offshore: Which Is Best?

It is very important that you select the appropriate jurisdiction under which your service license will be operated. Here’s a comparison to help you answer “best emirate for service license” or “mainland vs. free zone”:

A friend of mine, for instance, opted for a UAQ FTZ license for her education consulting because of the 100% repatriation and flexibility for the virtual office. Consider comparing Dubai vs. Abu Dhabi or DIFC vs ADGM based on your industry and budget.

Common Challenges and How to Overcome Them

However, establishing a service license can be problematic. Here’s how to tackle them:

• Heavy Paperwork: Truasimated passport copies or rent agreements can hold up approval. Solution: Rely on PRO services to expedite paperwork.
• Trade Name Rejections: If the trade name has already been taken or violates regulations, it’s rejected. Fix: Use DED or free zone portals instead, if available.
• Regulatory Approvals: Some activities, such as legal consultancy, require additional clearances. Solution: Get the Ministry of Justice involved early.
• Language Barriers: If you don’t speak English, you may have a hard time completing forms. Solution: Consult and translate with a business setup specialist.
• Where The Fees Go: It’s possible to be surprised by hidden fees – these (such as notary attestation) add up! Solution: Allocate another AED 1,000-5,000 to account for potential miscellaneous charges.

I ran into a trade name problem when I was assisting a client in Sharjah. We fixed it by looking at the Rukhsati app to see if it was available, saving days of back-and-forth.

FAQs About Service Licenses in the UAE

Here are answers to common:

Q1: What documents are required for a service license in the UAE?

You need a passport copy, Emirates ID, lease contract or Ejari, memorandum of association, and a business plan for regulated activities. Check with the DED or free zone authority for specifics.

Q2: How much does a service license cost in the UAE?

Costs range from AED 1,000–50,000+, including application fees (AED 1,000–10,000), license fees (AED 10,000–75,000), and facility costs (AED 5,000–15,000).

Q3: How long does service license processing take?

Mainland licenses take 5–15 days, free zone licenses 3–10 days, and specialised licenses like CSP or TSP up to 30 days.

Q4: Can foreigners get a service license in the UAE?

Yes, foreign investors can get a service license, especially in free zones with 100% ownership. The Mainland may require a local sponsor.

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

A service license covers professional services (e.g., consulting, IT), while a commercial license is for trading goods. Free zones offer both.

Conclusion: Start Your UAE Business Journey

Getting a service license in the UAE is a straightforward way to launch your business setup in Dubai, Abu Dhabi, or a free zone like JAFZA or UAQ FTZ. Whether you’re a consultant, freelancer, or foreign investor, this license offers cost-efficient, tax-favourable, and flexible options to thrive in the UAE’s business ecosystem. By following the steps above, preparing the right documents, and choosing the best jurisdiction, you can start your business in as little as 3–15 days.

Ready to apply for a service license? Visit the DED website, TDRA portal, or contact a business setup consultant to make the process seamless. Your UAE business journey starts now!