How to Start a Technical Services Company in Dubai Step-by-Step Guide 2026
Dubai builds non-stop. Skyscrapers, malls, and smart homes need plumbers, electricians, and AC experts every day. A technical services company in Dubai fills this huge gap. Demand grows 15% yearly with the UAE Vision 2031 projects.
This complete guide shows how to start technical services business in Dubai. Our business setup experts helped hundreds get a technical services license Dubai fast. We cover the cost of technical services licenses in Dubai, the mainland vs. free zone technical services company choice, the DED technical services activities list, steps, docs, visas, taxes, and growth tips.
Why Dubai is a Hotspot for Technical Services Companies
Dubai invests AED 200 billion in infrastructure by 2031. Construction grows 8% yearly. Over 50,000 new buildings need maintenance. Building maintenance company Dubai services boom.
Key drivers:
- Dubai Plan 2040 adds 1 million homes.
- Smart city projects demand HVAC and solar work.
- Expo legacy sites need constant repairs.
- SMEs (such as technical services companies in Dubai) account for 60% of the UAE’s GDP.
The Department of Economic Development (DED) issued 3,500+ trade licenses to Dubai Technical Services last year. Recession-proof – buildings always need fixes.
What is a Technical Services License in Dubai?
Technical services license Dubai is a professional license Dubai from DED (mainland) or a free zone authority. It lets you legally do hands-on technical work. Covers repairs, installs, and upkeep – not full construction.
- Allowed: Plumbing and electrical contracting Dubai, HVAC installation license Dubai, solar panels.
- Not Allowed: Selling materials (needs a trading license), big building projects (Dubai technical contracting license).
- Why Codes Matter: DED uses exact 8-digit activity codes. Wrong code blocks bank account and visas.
Comprehensive Technical Services Activities List
The DED technical services activities list has 50+ options. Pick 3-5 max. Here are the top categories with codes:
Upkeep of Buildings:
Services for plumbing (43210567)
Repairs for electrical systems (43230145)
Masonry and painting (43300112)
Electrical and mechanical:
Dubai license for HVAC installation (43220123)
Maintenance for generators (43240189)
Maintenance of the lift (43250134)
The electromechanical
Alarms for fires (43290234; requires civil defense)
Systems of control (43280156)
Sustainable Energy:
Installation of solar panels (permission from DEWA 43280192)
Support for Fit-Out:
Technology for smart homes (43270178)
Infrastructure for office technology (43260123)
Check codes on the DED site. Dubai business setup consultants are a fantastic fit for your idea.
Verification Procedure for DED Activity Codes
How to Check DED Codes Exactly Before Applying
Go to “eServices” → “Activity List Search” at ded.ae.
Sort by: “Professional License” → “Technical Services.”
Copy the eight-digit code (for example, plumbing installation, 43210567).
Verify the limits column (civil defense is required for fire and gas).
Get the PDF version, updated monthly.
Pro Check: Dial 800 4444, the DED helpdesk. Verify the code and approval requirements. Incorrect code = 30 days delay + AED 5,000 refilling.
Mainland vs Free Zone – In-Depth Comparison
Mainland vs freezone technical services company choice changes everything.
| Feature | Mainland (DED) | Free Zone |
| Ownership | 100% with LSA | 100% foreign |
| Market Access | Full UAE + gov tenders | Free zone only |
| Government Projects | Yes (municipality approval Dubai) | No |
| Office | 200 sq ft min + Ejari requirement for mainland company | Flexi-desk OK |
| Visa Quota | 6+ skilled labor visa UAE | 2-4 |
| Cost | AED 25k+ | AED 15k |
Choose Mainland: Big clients, tenders, scale.
Choose Free Zone: Fast start, low cost, testing market.
How to Apply for a Technical Services License in Dubai in Detail (2026)
Here’s the exact process for creating a UAE corporation to launch a technical services company in Dubai. Follow this order to avoid delays. Overall timeline: 14–28 days on the mainland, 5–10 days in the free zone.
Phase 1: Pre-Application Days 1–3
Step 1: Choose Activities and Jurisdiction
Mainland = customers across the United Arab Emirates + government bids
Free zone = fast setup, zone clients exclusively
From the list of DED technical services activities, pick three to five tasks (e.g., HVAC 43220123, plumbing 43210567).
Time: 1 day | Cost: Free
Step 2: Trade Name Reservation
“Name Reservation” → ded.ae is the DED gateway.
No government names, no “best,” and no more than three words
It is optional to use an Arabic name (+AED 620).
Price: AED 735; Duration: 1 day
Step 3: Initial permission from DED
Passports for shareholders, activities, and names must be filed.
Activity code compatibility is examined by DED.
Cost: AED 235; Duration: 2–3 days
Phase 2: Setup of the Office and Law (Days 4–12)
Step 4: Hire a Local Service Agent (Only on the Mainland)
A UAE national signs a MOA (no ownership).
Contract: AED 5,000–15,000 per year for a minimum of one year.
One-day duration; average cost: AED 7,500
Step 5: Ejari Requirement + Office Lease
At least 200 square feet (industrial Al Quoz/Deira)
Get the Ejari requirements for the mainland company from the typing center and sign a lease.
Get the Ejari requirements for the mainland company from the typing center and sign a lease.
Required Landlord NOC
Duration: 5–7 days | Price: AED 2,200 Ejari + AED 25–50k rent annually
Step 6: External Government Approvals
| Activity | Authority | Time |
| HVAC | Civil Defense | 7 days |
| Electrical | Municipality approval Dubai | 5 days |
| Solar | DEWA | 10 days |
Time: 7-14 days | Cost: AED 8k-15k
Phase 3: Final Licensing (Days 13-21)
Step 7: Association Memorandum (MOA)
Share structure prepared by a lawyer (AED 1,000)
Signs of LSA (mainland)
Notarize at the typing center
Duration: two days; Price: 1,500 AED
Step 8: Issue a license and pay the required fees
Dubai Technical Services issued a trade license.
Creation card issued by the Ministry of Labor
Duration: 3 days | Price: AED 10,500 for the license
Phase 4: Compliance Following Licensing (Days 22–28)
Step 9: Bank Account for the Company
Emirates NBD/Mashreq with Ejari and a license
AED 50,000 is the minimum balance required for a technical services company’s UAE bank account.
Duration: 7–14 days; Price: Free setup
Step 10: Labor Setup & Visas
Three-year investor visa
UAE skilled labor visa for a minimum of three technicians
Emirates ID plus medical examinations
Duration: 7 days; Price: AED 4,000 each
Step 11: Launch of Operations
Automobiles with a trade license copy displayed
Purchased safety gear
Active insurance policies
Setting up Google My Business
Total: AED 25–40k, with a maximum of 21 days.
Do You Need an LSA?
Local Service Agent (LSA) required for mainland technical services company in Dubai. UAE national only signs papers – no ownership or control.
LSA Costs: AED 5,000-15,000/year.
Duties: Attend DED meetings, sign MOA.
Contract Must Include:
- 1-year minimum
- Cancellation notice (60 days)
- No profit share clause
Risk: Bad LSA delays renewals. Use vetted agents.
When Are Additional Government Approvals Required?
Certain activities trigger mandatory stamps:
| Activity | Authority | Cost AED | Time |
| HVAC installation license Dubai | Civil Defense | 2,500 | 7 days |
| Plumbing and electrical contracting Dubai | Municipality approval Dubai | 2,000 | 5 days |
| Solar systems | DEWA | 3,000 | 10 days |
| Fire systems | Civil Defense | 4,000 | 7 days |
| Security | SIRA | 5,000 | 15 days |
Total Impact: +15 days, AED 12k average. Skip = AED 50k fines.
How Much Does It Cost to Get a Technical Services License
Cost of technical services license in Dubai breakdown (mainland):
Government Fees:
- Name reservation: AED 735
- Initial approval from DED: AED 235
- License fee: AED 10,500
- Ejari: AED 2,200
- Establishment card: AED 1,000
External:
- LSA: AED 7,500
- Municipality/Civil Defense: AED 8,000
Office: AED 25,000-50,000/year (200 sq ft)
Visas: AED 4,000 each (skilled labor visa UAE)
Total Year 1: AED 35,000-55,000. Free zone: AED 18k-25k.
Step-by-Step Civil Defence Approval (HVAC/Fire/Gas)
- Submit license + office layout to dcd.gov.ae
- Inspector visits (7 days): checks ventilation, exits, extinguishers
- Fire Risk Assessment report (AED 2,500)
- Certificate issued (valid 1 year)
- Renewal: Re-inspection every January
Without this, no HVAC installation license in Dubai is allowed.
Complete Documentation Required
Individual Owner:
- Passport copy (all pages)
- UAE visa + Emirates ID
- 2 passport photos
- NOC from current sponsor
- CV with experience
Corporate Shareholder:
- MOA + AOA
- Board resolution
- Good standing certificate
- Incumbency certificate
Office:
- Tenancy contract
- Ejari certificate
- Landlord NOC
LSA:
- Emirates ID
- Signature specimen
- LSA contract
All passports attested if from abroad.
How to Open a Business Bank Account
A bank account for a technical services company UAE needs a license first. Top choices:
Documents:
- Trade license + MOA
- All shareholders passports
- Office lease + Ejari
- 6-month personal bank statements
Banks:
- Emirates NBD: AED 50k minimum balance
- Mashreq: AED 100k, faster AML
- ADCB: Technical services specialist
Timeline: 7-21 days. AML checks verify fund sources.
UAE Tax Framework (Updated 2026) for Technical Services Companies
Every technical services company in Dubai must comply with the UAE’s 2026 tax rules. These apply after your technical services license is issued in Dubai. Non-compliance costs AED 20k+ in fines yearly.
VAT (Value Added Tax) at 5% kicks in when yearly service revenue hits AED 375,000. You charge 5% on plumbing jobs, HVAC installs, and electrical work. File returns quarterly through the Federal Tax Authority (FTA) portal. Late filing adds a base fine of AED 20,000, plus a 25% penalty on the owed tax. Most building maintenance companies in Dwill hit the VAT threshold in 6-9 months.
Corporate Tax at 9% applies to profits over AED 375,000 annually. First AED 375k stays tax-free. Calculate the net profit after deducting office rent, technician salaries, and equipment costs. Annual filing due 9 months after the financial year-end. A small technical services company in Dubai often stays under the threshold. Year 1 (AED 1M in revenue typically means AED 250k in profit).
The Economic Substance Regulations (ESR) require annual proof that you do real work in the UAE. Submit technician timesheets, service contracts, and office Ejari to show “substance.” Technical services pass easily with skilled labor visa UAE techs and municipality approval for Dubai jobs. Miss ESR filed and paid a fine of AED 25,000.
Ultimate Beneficial Owner (UBO) Declaration lists all shareholders (even indirect ones). File annually through the DED portal. UAE nationals as LSA don’t count as UBOs. Non-filing penalty hits AED 15,000.
Emirates Sustainability Responsibility (ESR) tax takes 0.5% of total employee salaries. Plumber at AED 5,000/month + HVAC tech at AED 8,000 = AED 13,000 x 0.5% = AED 65/month contribution. File half-yearly.
How to Recruit Technicians
Technician Categories:
- Plumbers: AED 4k-6k/month
- Electricians: AED 5k-8k
- HVAC techs: AED 6k-10k
Requirements:
- Trade test certificate
- 3+ years of experience
- Safety training
- Health insurance mandatory
WPS: Salary auto-pay system required.
Technician Certification Requirements
Which Certificates Your Techs MUST Have
- Plumbers: Dubai Municipality Grade 1 Certificate
- Electricians: DEWA Approved Electrician Card
- HVAC Techs: Civil Defense Fire Safety Training
- Welders: Dubai Gas Company Certification
- All: First Aid + Height Work Safety (3 years valid)
Visa Reject Reason #1: No trade test proof. Cost: AED 2k recertification.
Practical Business Launch Checklist
Week 1:
- License framed in the office
- Vehicles branded (trade license copy on window)
- Safety gear purchased
- Insurance policies active
Week 2:
- Website + Google My Business
- Maintenance contracts pitched
- Tenders registered
Penalties for Non-Compliance
| Violation | Penalty AED |
| Work without municipality approval Dubai | 50,000 |
| Uninsured workers | 25,000/employee |
| Illegal activity code | 20,000 + reapply |
| No Ejari | License cancel |
| Tax late filing | 20k+25%/year |
What DED Inspectors Check at Your Technical Services Office
Minimum 200 sq ft (measured)
Separate reception + work area
Safety exits marked
Technical storage (tools locked)
License displayed on the wall
Ejari validity (not expired)
LSA signature specimen framed
NO home office, shared space, or virtual
Fail = 45-day license delay. Pass rate: 92% with preparation.
Growth Strategies
Scale Your Technical Services Company:
- Add Dubai technical contracting license G+1 classification
- Bid gov tenders (eSupply portal)
- Branch to Abu Dhabi (AED 30k)
- Maintenance app for repeat jobs
- Hire 10 techs (quota upgrade AED 5k)
Year 3 Target: AED 5M revenue, 4 branches.
Additional Resources & Tools
Download:
- DED Activity Code List
- LSA Contract Template
- External Approval Checklist
- Cost Calculator Excel
Government Links:
- DED Portal: ded.ae
- Dubai Municipality: dm.gov.ae
- Civil Defense: dcd.gov.ae
Our licensed PRO Services in Dubai experts are ready to help you out. They are professional business setup consultants in Dubai with over 12+ years of experience, providing PRO Services Dubai.
FAQs
Q1: How much is the cost of technical services license in Dubai?
Mainland setup costs AED 25,000-40,000 total. Includes DED fees (AED 10,500 license), office Ejari (AED 2,200), LSA (AED 7,500), and approvals (AED 8,000). Free zone is cheaper at AED 15,000-25,000.
Q2: Do I need a local sponsor for technical services license Dubai?
No ownership sponsor needed. Mainland requires a Local Service Agent (LSA) – UAE national for paperwork only. Costs AED 5,000-15,000 yearly, no profit share or control.
Q3: Can I operate a technical services company from home?
No. Ejari’s requirement for a mainland company is a minimum of 200 sq ft of physical office space. DED inspects storage space and safety exits. Free zone allows flexi-desk but limits clients to the zone only.
Q4: Is Civil Defense approval mandatory for HVAC work?
Yes, for HVAC installation license, Dubai, fire systems, and gas piping. Adds 7-10 days and AED 2,500-5,000. Municipality approval Dubai is needed for plumbing/electrical. Skip = AED 50,000 fine + license suspension.
Q5: How long does the full UAE company formation process take?
Mainland: 14-28 days total. Free zone: 5-10 days. Delays are due to external approvals (Civil Defense, DEWA) and bank account opening (7-14 days). Use business setup consultants in Dubai to hit the 14-day target.
Conclusion – Launch Your Technical Services Company in Dubai Today
Dubai’s AED 200 billion construction boom needs your skills now. A technical services company in Dubai with a proper technical services license Dubai unlocks government tenders, recurring maintenance contracts, and 30-40% profit margins.
You’ve got the complete roadmap: DED technical services activities list, mainland vs freezone technical services company comparison, cost of technical services license in Dubai (AED 35k-55k), step-by-step UAE company formation process, LSA rules, municipality approval Dubai requirements, skilled labor visa UAE quotas, and 2026 tax compliance.
Contact PRO Services in Dubai for more help!
