Technical Service License – How To Get It?

Since Dubai is an iconic place where constructions and real estate sector keeps flourishing, the demand for technical service providers is pretty high. Painting, plumbing, air conditioning, flooring, apartment partition related works are available in abundance. There is always a requirement of quality technical service in efficient price which brings in huge opportunity for those who are planning to setup technical service business in Dubai. Before starting the company you need to do the market research and prepare the terms of marketing and branding accordingly. Need to check out from where you can hire the skilled staff and find out ways to reach the customers and get work contracts.

To setup your technical service business in Dubai, first shortlist the kind of work orders you will be taking and accordingly you will have to select the activities for the license. It’s recommended to hire professionals for setting up the business so that you can concentrate completely on getting the contracts and effective execution of the business plan. Technical Service License can also be made as a Professional license as well as in LLC structure.

Difference between Professional and LLC license

Professional License

• 100% shares are with the expat partner and in case you want to change it to LLC later, it is possible
• Still there remains the requirement of an UAE National. The UAE National will be mentioned as a Local Agent in the license
• No visa limitation like are there. The number of employees you can hire depends on the size of your office and contacts in hand
• Investor visas are valid for 3 years and employment visas are valid for 2 years
• In a professional license, the liability of the company is the personal liability of the shareholders

Limited Liability Company - LLC

• The shareholding Structure will be like UAE National will hold 51% of shares and Expat Partner will hold 49% of the shares
• But in order to safeguard the rights of the expat there is a side agreement prepared
• Here the liabilities of the shareholder are limited to the shares owned by the shareholder in the company
• No visa limitation like are there. The number of employees you can hire depends on the size of your office and contacts in hand
• Investor visas are valid for 3 years and employment visas are valid for 2 years

There are certain activities that come under a technical service license:-

1. Painting contracting
2. Plumbing & sanitary contracting
3. Air- conditioning ventilations & Air Filtration systems installation & Maintenance
4. Floor and wall tiling work
5. Carpentry & Flooring Contracting
6. False Ceiling & Light Partitions Installation
7. Swimming Pools Maintenance
8. Interior Decoration
9. Wall Paper Fixing
10. Electromechanical works contracting (Some of these activities require an approval during the license renewal from DM and should have an engineer for the same, also if there will be any projects related to the same then it has go under DM approval)

Process of getting technical service license in Dubai

1. Tradename Reservation
2. Initial Approval
3. Dubai Municipality Approval (if applicable)
4. DED Signing (MOA/LSA)
5. Submission of all the documents including Ejari / Desk Contract
6. Issuance of Payment Voucher
7. License issuance
8. Get the Immigration card
9. Get Company Stamp
10. Labour card
11. Apply for Employment Visas

Technical services company is always in demand for both commercial and residential purposes. Your expertise, along with your marketing and quality of service, will play a huge role in the success of your business. This blog is written by Ms. Smita Thomas, Business Advisor at Flyingcolour Business Setup, VAT and Accounting Services, Dubai. If you have any query related to getting a technical service license in Dubai or anywhere across the UAE or need any kind of business related consultation then feel free to call +971 4 4542366 today for a quality consultation or please send inquiry to info@flyingcolour.com.

*Please Note: This article was published on 01st October, 2020. The information provided in the article is based on the policies and rules applicable at the time of writing it. Talk to one of our consultants for any recent update or change.