Definition

A professional licence is a category of trade licence issued by UAE government authorities that authorises individuals and companies to conduct professional, service-based, and consultancy activities. Unlike commercial licences (which cover trading and import-export operations) and industrial licences (which permit manufacturing), professional licences are designed for practitioners who deliver services based on personal expertise, professional qualifications, or specialised skills. Common activities covered include management consulting, legal advisory, accounting and auditing, engineering design, architecture, IT services, marketing, media production, healthcare practice, and educational tutoring. Professional licences can be issued by mainland authorities (the Department of Economic Development in each emirate) or by free zone authorities under their respective regulatory frameworks.

UAE Context

The professional licence is the most common licence type for entrepreneurs, freelancers, and small-to-medium service firms entering the UAE market. On the mainland, a professional licence historically required a UAE national local service agent (LSA) — a sponsorship arrangement in which the agent received an annual fee but held no ownership stake in the business. Recent reforms under the amended Commercial Companies Law now allow 100 percent foreign ownership for most professional licence activities on the mainland, eliminating the LSA requirement and significantly reducing barriers to market entry. In free zones, professional licences have always permitted full foreign ownership, making zones like DIFC, DMCC, Dubai Media City, and Abu Dhabi Global Market popular destinations for professional services firms. The UAE’s freelancer visa programmes in Dubai, Abu Dhabi, and other emirates are essentially streamlined professional licences issued to individual practitioners, enabling independent consultants, creative professionals, and gig economy workers to operate legally as sole establishments.

Key Data

• Issuing authorities: Emirate DEDs (mainland), individual free zone authorities
• Common activities: Consulting, IT services, legal advisory, accounting, design, marketing, healthcare, education
• Ownership: 100 percent foreign ownership permitted on mainland (post-reform) and in free zones
• LSA requirement: Eliminated for most activities under 2020–2021 Commercial Companies Law amendments
• Validity: Typically one year, renewable annually
• Cost range: AED 10,000–50,000+ depending on activity, jurisdiction, and visa requirements
• Freelancer option: Simplified professional licence for individual practitioners
• Digital processing: Available through DED Trader, Invest in Dubai, TAMM, and free zone portals

Significance for Vision 2031

Professional licence reform is a cornerstone of the UAE’s ease-of-doing-business strategy under Vision 2031. By eliminating the local service agent requirement, enabling full foreign ownership, and introducing digital same-day licensing, the UAE has dramatically reduced the time, cost, and complexity of establishing a professional services business. These reforms directly support the target of attracting 400 new multinational headquarters to Dubai under the D33 Agenda and positioning the UAE among the world’s top five most competitive economies. The growth of freelancer and virtual working licences expands the professional licence framework to accommodate the global shift toward remote work and the gig economy, enabling the UAE to attract digital nomads, independent consultants, and international talent who contribute to knowledge-economy growth without requiring traditional employment sponsorship.

Related Terms

• Trade License — The overarching licence category that includes professional, commercial, and industrial permits
• Free Zone — Jurisdictions offering streamlined professional licensing with full foreign ownership
• Freelancer Visa — A visa category linked to simplified professional licensing for individuals
• Onshore Company — Mainland entity formation requiring a DED-issued professional or commercial licence