Technical Services Company License Cost in Dubai, UAE: An In-Depth Guide
Dubai's dynamic economy and ongoing infrastructure development have made it a global hub for technical services—from electrical and plumbing to IT support, maintenance, and specialized contracting. If you're considering launching a technical services company in Dubai, understanding the license costs, setup process, and compliance requirements is essential for a smooth and profitable start.
As One Desk Solution, we are recognized as a top tax, VAT, and bookkeeping expert services provider in Dubai and the UAE. Our expertise ensures your technical services business is not only compliant but also financially optimized from day one.
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Call Us: +971-52 797 1228 WhatsApp UsTable of Contents
- What Is a Technical Services License in Dubai?
- Types of Activities Covered
- Mainland vs. Free Zone: Choosing the Right Jurisdiction
- Technical Services License Cost Breakdown
- Step-by-Step Process to Obtain a Technical Services License
- Required Documents
- Ongoing Compliance and Financial Management
- How One Desk Solution Can Help
- FAQs
What Is a Technical Services License in Dubai?
A technical services license is a commercial permit that allows companies to legally provide a wide range of specialized technical services in Dubai. This license is mandatory for businesses operating in sectors such as:
- Electrical and plumbing works
- Air conditioning installation and maintenance
- Carpentry and flooring
- Painting and cladding
- Building cleaning services
- IT support and maintenance
- Mechanical and electromechanical contracting
The license ensures your business operates within Dubai's legal framework, meeting all regulatory and safety standards.
Types of Activities Covered
A technical services license in Dubai covers a broad range of activities, including but not limited to:
| Activity Type | Examples |
|---|---|
| Maintenance & Repair | Electrical, plumbing, HVAC, mechanical repairs |
| Installation Services | Air conditioning, satellite, electrochemical equipment |
| Construction-Related | Painting, cladding, plastering, flooring, tiling |
| Cleaning & Facility Management | Building cleaning, façade cleaning |
| IT & Technical Support | IT infrastructure setup, hardware maintenance |
| Decor & Fit-Out | Carpentry, ceiling, partition, interior decoration |
Mainland vs. Free Zone: Choosing the Right Jurisdiction
One of the first decisions is whether to set up your technical services company on the mainland or in a free zone. Here's a comparison:
| Aspect | Mainland | Free Zone |
|---|---|---|
| Market Access | Anywhere in UAE and internationally | Inside free zone & internationally only |
| Ownership | Up to 100% foreign ownership (recent reforms) | 100% foreign ownership |
| Office Requirement | Mandatory physical office | Flexi-desk/virtual office often allowed |
| Cost Structure | Moderate to high (varies by location) | Can be lower for small setups |
| Visa Eligibility | Multiple visas allowed | Limited by office size |
| Government Contracts | Eligible | Not eligible |
Tip: Mainland is ideal for businesses targeting the wider UAE market, while free zones are suitable for export-oriented or smaller-scale operations.
Technical Services License Cost Breakdown
The cost of a technical services license in Dubai depends on several factors, including jurisdiction, office size, number of visas, and the services you offer.
Typical Cost Components
| Cost Component | Mainland (AED) | Free Zone (AED) |
|---|---|---|
| Company Registration | 10,000 – 15,000 | 8,000 – 12,000 |
| Trade Name Reservation | 620 – 720 | Included/Similar |
| Initial Approval | 120 – 245 | Included/Similar |
| MOA Drafting & Notarization | 1,000 – 1,500 | Included/Similar |
| Local Service Agent Fees | 4,000 – 25,000 | N/A |
| Office Space Rental | 20,000 – 100,000+ | 10,000 – 50,000 |
| License Issuance/Renewal | 10,000 – 20,000 | 8,000 – 15,000 |
| Visa Costs (per person) | 4,000 – 10,000 | 3,000 – 7,000 |
| Admin/Government Fees | 5,000 – 10,000 | 3,000 – 8,000 |
| Marketing/Advertising | 5,000 – 15,000 | Optional |
| Total (Approximate) | 60,000 – 150,000 | 30,000 – 80,000 |
Note: Costs can vary significantly based on business size, office location, and number of visas required. Always consult with a specialist for precise estimates.
Example: Cost Summary Table
| Setup Item | Estimated Cost (AED) |
|---|---|
| Registration & Licensing | 10,000 – 20,000 |
| Office Rent | 20,000 – 100,000 |
| MOA & Legal | 1,000 – 1,500 |
| Trade Name Reservation | 620 – 720 |
| Local Sponsor (if needed) | 4,000 – 25,000 |
| Visas (Owner/Employee) | 4,000 – 10,000 each |
| Miscellaneous/Admin | 5,000 – 10,000 |
| Total | 60,000 – 150,000 |
Step-by-Step Process to Obtain a Technical Services License
- Choose Business Activity - Define the specific technical services you will offer.
- Select Jurisdiction - Decide between mainland or free zone setup.
- Register Trade Name - Reserve a unique business name with the Department of Economic Development (DED) or relevant free zone authority.
- Prepare Documentation - Gather all required documents (see next section).
- Submit Initial Approval Application - Apply to DED or free zone authority for initial approval.
- Draft and Notarize MOA (for LLCs) - Prepare the Memorandum of Association and notarize with all partners.
- Secure Office Space - Obtain a tenancy contract (Ejari) for your office or workspace.
- Final Submission and Payment - Submit all documents, pay the required fees, and receive your technical services license.
- Apply for Visas - Process residence visas for owners and employees as needed.
- Open a Corporate Bank Account - Choose a suitable bank (see our guide on best banks for UAE startups).
Required Documents
| Document | Purpose/Notes |
|---|---|
| Passport copies of shareholders/partners | Identification |
| UAE residence visa & Emirates ID (if any) | For resident partners |
| Trade name reservation certificate | Proof of unique name |
| Initial approval certificate | DED/free zone approval to proceed |
| Memorandum of Association (MOA) | Company structure and ownership |
| Tenancy contract (Ejari) | Proof of office space |
| NOC from sponsor (if applicable) | For UAE residents under sponsorship |
| Business plan (sometimes required) | Outlines business activities and projections |
| Passport-size photos | For license and visa processing |
Additional documents may be required depending on business activity and jurisdiction.
Ongoing Compliance and Financial Management
Operating a technical services company in Dubai requires robust financial management and compliance:
- VAT Registration & Filing: If your turnover exceeds the mandatory threshold, VAT registration is compulsory.
- Bookkeeping & Accounting: Maintain accurate and up-to-date records for audits and tax purposes.
- Payroll & Vendor Management: Ensure timely payments, salary processing, and vendor relations.
- Annual License Renewal: Renew your trade license every year to avoid penalties.
- Financial Reporting: Prepare regular reports for stakeholders and regulatory authorities.
One Desk Solution offers expert support in tax, VAT, and bookkeeping, ensuring your technical services business stays compliant and financially healthy.
How One Desk Solution Can Help
As a leader in tax, VAT, and bookkeeping services in Dubai and the UAE, One Desk Solution provides:
- Accurate Financial Record-Keeping: Precise recording and categorization of transactions for audit readiness.
- VAT & Tax Compliance: Expert guidance on VAT registration, filing, and tax-saving strategies.
- QuickBooks Online Setup & Training: Streamlined digital accounting solutions for efficiency.
- Vendor & Cash Flow Management: Optimize payments and maintain strong business relationships.
- Custom Financial Reports: Actionable insights to support decision-making and growth.
- Error-Free Reconciliation: Ensure financial integrity and eliminate discrepancies.
"Maximize tax savings and ensure compliance with expert tax planning, accurate preparation, and strategic guidance from certified professionals."
FAQs
What is the minimum cost to start a technical services company in Dubai?
Costs can start from AED 10,000–20,000 for basic licensing, but total setup (including office, visas, and admin) typically ranges from AED 60,000–150,000 depending on your business scale and location.
Do I need a local sponsor for a technical services company?
For mainland setups, a local service agent may be required, but recent reforms allow up to 100% foreign ownership for many professional activities. Free zones do not require a local sponsor.
How long does the process take?
With all documents in order, you can expect the process to take 2–4 weeks.
Is VAT registration mandatory?
Yes, if your annual turnover exceeds the UAE's VAT threshold, registration and regular filing are required. Learn more about VAT services in Dubai.
What are the ongoing costs after setup?
Annual license renewal, office rent, employee visas, and compliance-related costs (VAT, bookkeeping, etc.).
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