What is a professional license?

A professional license is issued for professionals and companies that deal with service-oriented activities.
It is mandatory to have a professional license in UAE to establish a professional firm providing service to clients. The license will entitle to carry out the said activities officially. Such a firm will be included in the documents of the authority and it will be helpful in case of any legal complications or disputes.
When it comes to the ownership rights of a foreign investor, Professional License has a clear advantage over a Commercial and Industrial License. A foreign investor can enjoy 100% Ownership of the business and this makes one entitled to a sole proprietorship.
The investor enjoys 100% ownership rights, getting a local service agent is an option to fulfill the legal formalities. The local service agent has no claims or rights regarding the equity or functioning of the company. The investor is liable to pay the annual service charge for availing of the services of the agent.
If the ownership is shared by more than one individual, the company is selected as a Civil Company.