Hidden Costs to Watch for When Applying for a Technical Services License in Dubai

Applying for a Technical Services License in Dubai opens the door to many profitable business opportunities. Whether youre starting a plumbing company, electrical maintenance business, or a fit-out contracting firm, Dubai offers a strong market with high demand for technical services. However, the process of getting licensed involves more than just the government fee.

Many first-time investors and entrepreneurs underestimate the hidden costs that can quickly add up during the licensing and setup phase. These unexpected expenses can affect your cash flow, business timeline, and even delay your launch.

This article explains all the possible hidden costs that may arise when applying for a Technical Services License in Dubai so you can budget wisely and start your business with clarity and confidence.

What Is a Technical Services License?

A Technical Services License in Dubai allows individuals or companies to offer various physical, hands-on services such as:

• Air conditioning and ventilation maintenance

• Electrical fittings and installations

• Plumbing services

• Carpentry and flooring

• Painting and interior works

• Building cleaning services

• Satellite installation

• Tiling and flooring

This license is typically issued by the Dubai Department of Economy and Tourism (DET) for mainland businesses. In free zones, the license comes from the respective free zone authority.

Primary Licensing Cost Breakdown

Most people plan their budgets based on the obvious costs:

• Trade name reservation

• Initial approval fees

• License issuance

• Local service agent (if required)

• Immigration card

• Establishment card

These basic costs are relatively transparent. But there are many other charges that may not be mentioned upfront unless you ask the right questionsor work with an experienced setup consultant.

Hidden Costs to Watch For

Lets now look at the actual hidden costs that often catch new business owners off guard when applying for a Technical Services License in Dubai.

1. Ejari Registration and Office Rent

One of the most common hidden costs is Ejari registration, which is mandatory for mainland license issuance.

Youll also need to:

• Rent a physical office (flexi desks are not allowed for technical licenses)

• Pay for Ejari registration (approx. AED 200+)

• Cover DEWA setup charges (security deposit, connection fees)

Tip: Office rent in commercial or industrial zones ranges between AED 20,000 to AED 80,000 annually, depending on size and location.

2. Security Deposit for License

Some free zones and government departments may ask for a refundable security deposit during license issuance, especially for high-risk or technical activities. This could range from AED 2,000 to AED 10,000.

3. Third-Party Approvals

Depending on your activity, you may need external approvals from:

• Dubai Municipality

• Civil Defence

• Dubai Electricity and Water Authority (DEWA)

• Health and Safety Authorities

These approvals often require additional fees for inspections, NOCs, or documentation reviews.

4. Visa Quota and Processing Charges

After getting your Technical Services License in Dubai, you may want to hire employees. But before that:

• You need to apply for a visa quota

• You may have to upgrade your office size

• Youll pay for employee visa application, medical tests, Emirates ID, etc.

Cost estimate per employee visa: AED 3,500 to AED 6,000.

5. Local Service Agent Fees (Mainland)

If you're a foreign investor setting up in the mainland, you must appoint a local service agent (LSA) for a technical license.

While there is no legal ownership transfer, the LSA typically charges an annual fee ranging from AED 5,000 to AED 15,000 depending on the agreement.

6. Legal Translations and Attestation

All important documents, especially if sourced from outside the UAE, must be:

• Translated into Arabic

• Legally attested by the Ministry of Foreign Affairs (MOFA)

• Possibly notarized

This can cost AED 500AED 1,500 per document, depending on the origin.

7. Company Stamp, MOA Typing, and Notarization

Even basic admin items like:

• Company stamp (AED 100AED 300)

• Memorandum of Association (MoA) typing (AED 600AED 1,000)

• Notarization (AED 500+)
  are often excluded in initial estimates provided by agencies or portals.

8. Insurance Requirements

Depending on the nature of your technical services, some activities may require:

• Public liability insurance

• Workmens compensation

• Third-party coverage

While not always mandatory during license issuance, these may be needed to secure contracts later.

9. Marketing, Signboard, and Website

Once youre licensed, youll need visibility to attract clients. Some costs to expect include:

• Signboard approval and installation (if applicable)

• Website development

• Business cards and branding

• Online advertising or local listings

Pro tip: These are not government charges, but they are practical must-haves for any technical company.

10. Bank Account Minimum Balance

To open a corporate bank account, most banks in the UAE require:

• A minimum monthly average balance (AED 25,000 to AED 50,000)

• In some cases, upfront deposits

Failing to maintain this balance can lead to monthly penalties.

Optional but Useful Add-ons

Some businesses opt for additional services that may improve compliance and operations but come at extra cost:

• PRO services for government paperwork

• Accounting and VAT registration

• Document renewal reminders and handling

• Corporate tax compliance

• Tenancy contract renewals

These may be offered as packages by Business Setup Consultants in Dubai or charged on a per-task basis.

How to Avoid or Minimize Hidden Costs

The best way to avoid budget shocks is to work with a transparent, reliable consultant who provides a clear cost breakdown before starting.

Heres what you can do:

?? Ask for a full quote with all third-party costs

Make sure everything is listedEjari, visas, insurance, office rent, and documentation.

?? Choose office space that meets licensing requirements

Dont pay extra for unnecessary upgrades or locations. Consultants can help you pick wisely.

?? Limit services to actual needs during startup

Start with the basics, then expand as your revenue grows.

?? Read your contract with the local service agent carefully

Ensure you understand what the LSA offers and whats included in the fee.

Summary Table: Visible vs Hidden Costs

Budget with Clarity, Not Assumptions

Getting a Technical Services License in Dubai is a smart move for many entrepreneurs. The market is rich with opportunities, especially in construction, facility management, and property maintenance. But success starts with financial clarity.

Many businesses fail to launch simply because they underestimated the full cost of setup. By understanding these hidden costs upfront, you can make informed decisions, avoid delays, and set your business up for long-term success.

If you're unsure where to begin, its worth partnering with experienced Business Setup Consultants in Dubai who can map the entire cost structure and guide you every step of the way.