How to Start a Technical Services Company in Dubai

Dreaming of Cashing in on Dubai’s Construction Boom?  

Dubai builds skyscrapers, malls, and smart cities nonstop. The demand for technical services company in Dubai is exploding with UAE Vision 2031 projects. Think plumbing, AC fixes, and electrical work for new towers and old villas.

Launch your technical service company in Dubai now. Our business setup experts in Dubai with 12+ years of experience helped 500+ entrepreneurs get a technical services license Dubai fast. This guide covers the cost of a technical services license in Dubai, mainland vs. free zone technical services companies, steps, docs, bank accounts, taxes, and mistakes to avoid. Get ready to win UAE contracts!

Why the Technical Services Sector Booms in Dubai  

Dubai’s construction hits AED 100 billion yearly. Real estate grows 8% in 2026. Smart city plans need building maintenance company Dubai services.   

Technical services license Dubai firms thrive on:  

• Expo 2020 legacy sites upkeep.  

• 50,000+ new homes per year with plumbing/electrical needs.  

• Infrastructure like roads, solar farms.  

• Recession-proof: Maintenance never stops.  

SMEs drive 60% UAE GDP. The technical services companies in Dubai reported margins of 25-40% for repeat clients. Perfect for how to start a technical services business in Dubai now.  

What is a Technical Services Company in Dubai?  

A technical services company Dubai holds a professional trade license Dubai technical service from DED. It covers hands-on work such as repairs, installations, and maintenance. Not full contracting – support role.  

Key Scope:  

• Fix and install technical gear.  

• Serve homes, offices, and factories.  

• No big builds – that’s general contracting.  

Vs Others:  

• Dubai technical contracting license: Full projects over AED 5M.  

• Professional license Dubai: Design/consult only.  

• Maintenance services: Narrow, like AC alone.  

Approved Activities Under Technical Services License (DED List)  

The DED technical services activities list packs 50+ options. Pick 3-5 max. DED technical services activities list from 2026:  

Building Maintenance:  

• Plumbing repairs.  

• Electrical fittings contracting.

• Carpentry, masonry.  

• Painting, gypsum work.  

HVAC & Cooling:  

• HVAC installation license Dubai.

• AC duct cleaning.  

• Ventilation systems.  

Electromechanical:  

• Wiring, panels.  

• Lift maintenance.  

• Fire systems (needs approvals).  

Specialized:  

• Solar panel installation.

• Plumbing and electrical contracting Dubai.  

• Renovation support.  

• Elevator tech.  

External Needs:  

• Municipality approval Dubai for building work.

• Civil defense for fire/safety.

• Dubai technical contracting license G+1 class for heights.  

Municipality Contractor Classification 

Do You Need Contractor Classification in Dubai?  

YES if projects over AED 1M or buildings with a G+1 height.  

G+1 Classification:  

• G (Ground): Villas, shops < AED 1M  

• G+1: Apartments, offices < AED 5M  

• G+5: High-rise (needs engineer stamp)  

  

Process:  

1. Submit license + 3 projects proof.  

1. Engineer evaluation.  

1. Municipality approval Dubai (AED 5k-15k).  

1. Valid 3 years.  

No classification = No tenders, no strata title work.  

License Activity Code Mapping   

Technical Services Activity Codes Under DED  

DED assigns exact codes to each technical services license in Dubai. Wrong code = instant reject or 30-day delay.  

How Codes Work:  

• 8-digit format (e.g., 43210567 = “Plumbing Installation & Maintenance”).

• Pick primary code (main revenue) + 3 secondary max.

• All under the Professional License category.  

Key Codes 2026:  

• HVAC Installation: 43220123 (HVAC installation license Dubai)  

• Plumbing Services: 43210567 (Plumbing and electrical contracting Dubai)  

• Electrical Fittings: 43230145  

• Solar Panel Installation: 43280192  

• Building Maintenance: 43300112 (building maintenance company Dubai)  

• Security Systems: 43290234 (needs SIRA)  

  

Verify Codes: DED portal → “Activity List” → Filter “Technical Services”. Business setup consultants in Dubai check compatibility.  

Mainland vs Free Zone vs Offshore for Technical Services  

Mainland vs. free zone technical services: company choice matters a lot.  

Mainland (DED): UAE-wide clients, gov tenders. Needs office, Ejari. Full ownership OK. Best for a technical services company in Dubai’s growth.

Free Zone (e.g., Meydan, IFZA): Fast setup, no LSA. Limited to zone clients. The flexi desk is cheap. Good start.  

Offshore: No trade in the UAE. Paper company only. 

Factor	Mainland	Free Zone	Offshore
Market	UAE-wide	Zone only	No UAE
Gov Contracts	Yes	No	No
Office	Real (Ejari)	Flexi	None
Visa	3-6 easy	2-4	No
Approvals	Municipality, Civil Defence	Few	N/A
Tenders	G+1 classification	No	No
SIRA (security)	Yes if needed	Rare	No

Mainland wins for the technical services license on the Dubai scale.

Office Space Requirements  

Office & Warehouse Requirements for Technical Services Companies  

Ejari’s requirement for a mainland company demands physical proof.  

Office:  

• Minimum 200 sq ft (Deira/Al Quoz).  

• Premium areas (Business Bay): 300+ sq ft.  

• Rent AED 25k-60k/year.  

Warehouse (if equipment heavy):  

• 500-1,000 sq ft Al Quoz/Jebel Ali.  

• Separate Ejari is needed.  

• AED 80k-150k/year.  

Free Zone: Flexi-desk OK (AED 8k/year). No mainland clients, though.  

Inspections: DED checks storage and safety exits. No home office. Trade license Dubai technical services inspection fails = 45-day delay.  

How to Start Technical Services Business in Dubai – Step-by-Step Process (Updated 2026) 

UAE company formation process takes 7-14 days on the mainland. Follow the steps to start technical services business in Dubai:

Step 1: Choose Spot: Mainland for big play.  

Step 2: Pick Activities: From the DED technical services activities list.

Step 3: Reserve Name: DED portal, AED 735. Arabic optional +620.  

Step 4: Initial Approval from DED: AED 235, 1 day.  

Step 5: MOA Draft: AED 1,000, lawyer OKs.  

Step 6: Local Service Agent (Mainland): AED 5k-10k yearly.  

Step 7: Lease Office + Ejari: 200 sq ft min, AED 20k-50k/year. Ejari requirement for mainland company.

Step 8: External Approvals: Municipality, Civil Defense.  

Step 9: License Fees: Pay AED 10k+.  

Step 10: Establishment Card: Labor Ministry.  

Step 11: Visas: Skilled labor visa for techs in the UAE.  

Total: 7-14 days mainland, 3-7 free zone.  

Cost of Technical Services License in Dubai 2026 

The cost of a technical services license in Dubai starts at AED 16,000 for the mainland. Breakdown:  

• Name reserve: AED 735.

• Initial approval from DED: AED 235.

• License fee: AED 6,690-10,500.

• MOA: AED 1,000.

• LSA (mainland): AED 5,000-10,000.

• Ejari: AED 2,000.  

• Investor visa: AED 3,000 (test 400, bio 400).  

• Municipality: AED 2,000-5,000.  

Total low: AED 16k-25k. Premium: AED 40k+ visas/office. Free zone: AED 12k-20k. Renewal AED 10k-15k.  

Hidden: Business setup consultants in Dubai, AED 6k-15k. Visas per tech AED 4k.  

Tools & Equipment Required to Start  

A technical services company Dubai needs gear before the license issue.  

Basic Package (AED 50k):  

HVAC tools (gauges, vacuum pump): AED 15k  

Plumbing kit (pipe cutters, welders): AED 10k  

Electrical testers/meters: AED 8k  

Safety gear (harnesses, helmets): AED 5k  

Ladder/scaffolding: AED 12k  

Vehicles:  

• Toyota Land Cruiser pickup mandatory.  

• A copy of the trade license was displayed in the window.  

• Branding: Company logo + contact.  

• AED 120k-180k new.  

Storage: Secure yard for cylinders and panels. Civil Defense inspects.  

Documents Required to Start a Technical Service Business in Dubai 

Individual Owner:  

• Passport + visa copies.  

• Emirates ID.  

• NOC from the sponsor.  

• Photo, resume.  

Corporate:  

• MOA, incorporation cert.  

• Board resolution.  

• Good standing cert.  

All attest to being foreign.   

How to Open Bank Account for Technical Services Company UAE  

A bank account for a technical services company UAE needs a license first. Top banks: Emirates NBD, Mashreq.  

Docs:  

• License, MOA, Ejari.  

• Passports shareholders.  

• 6-month UAE bank statements.  

Min balance: AED 50k-100k. Timeline: 3-7 days post-approval. AML checks are strict – show fund sources. VAT link post-setup.   

Corporate Tax & VAT for Technical Services Companies  

9% corporate tax if profits are over AED 375k. 5% VAT on services – register if turnover AED 375k+.

ESR 0.5% salaries. UBO declares yearly. Penalties: AED 20k+ late. Bookkeeping pro needed. A technical services company in Dubai must comply or face fines.   

Hiring Technicians & Labor Rules  

Skilled labor visa UAE for plumbers and electricians. Need:  

• Labor contracts.  

• WPS salary pay.  

• Health insurance.  

• Tech certs (Dubai Civil Defense).  

3 visas min mainland. Quota by office size.   

Insurance Requirements (Place AFTER “Hiring Technicians”)  

Mandatory Insurance for Technical Services Companies  

UAE law demands 4 policies:  

1. Public Liability: AED 1M coverage. Client damage protection. AED 3k-7k/year.
2. Worker Compensation: MANDATORY. AED 2k/employee.
3. Professional Indemnity: Design errors. AED 4k/year.
4. Equipment All Risk: Tools breakdown. AED 1.5k/year.

Total first year: AED 15k-25k. Renewal drops 20%. Brokers verify that coverage matches the technical services license Dubai scope.  

Common Mistakes to Avoid  

• Wrong activity code – no HVAC installation license in Dubai.

• Tiny office – fails Ejari requirement for mainland company.

• Skip municipality approval Dubai.

• No LSA mainland.  

• Underbudget approvals.  

Profitability & ROI  

A technical services company is expected to hit break-even in 3-6 months. Monthly revenue averages AED 150k-500k after year 1 with HVAC installation license Dubai and maintenance contracts.

Key Numbers:  

• Gross margins: 25-40% (plumbing/electrical highest).  

• Setup cost recovery: AED 85k investment → AED 1.8M year 1 revenue.  

• Recurring revenue: 70% from annual villa/office maintenance.  

• ROI: 80-120% year 1, scales to 200%+ year 3.  

Government Projects for Technical Services 

Yes, a technical services company in Dubai with a mainland technical services license Dubai can bid on government projects. Free zone firms cannot. Focus on maintenance, repairs, and support services – not main contracting.   

Key Requirements  

Mainland DED license is mandatory. Add these:  

Contractor Classification:  

• G+1 classification from Dubai Municipality (AED 5k-15k).  

• Proves capability for buildings up to 5 floors.  

• Submit 3 past projects + engineer report.  

Tender Registration:  

• Dubai eSupply portal (free).  

• Municipality approval, Dubai + civil defense clearance.  

• Annual good standing certificate.  

Benefits of Starting a Technical Services Company in Dubai  

In 2026, a technical services firm in Dubai will provide incomparable benefits.   

The building boom in Dubai guarantees steady work for those with technical services licenses.   

The Top 8 Benefits:   

1. 100% Foreign Ownership: Total control; no local partner on the mainland is needed. Keep all of your earnings.   
2. High Demand: Plumbing, HVAC, and electrical services are in high demand daily in the AED 100B+ building industry.   
3. Tax perks include 0% personal income tax and 9% company tax only on profits over AED 375k. There is a 5% VAT rebate.   
4. Government Tenders: Licenses from the mainland unlock contracts with RTA, DEWA, and Dubai Health (40% margins).   
5. Recurring Revenue: Maintenance contracts with offices and villas account for 70% of steady revenue.   
6. Technician skilled labor visa quota in the UAE: 3-6. Also, sponsor your family.   
7. Strategic Location: Serve the UAE and export to the GCC from the hub in Dubai.   
8. Fast ROI: AED 85k setup > AED 720k profit in year one (85% ROI).  

Market Advantage: Dubai’s building repair business never stops. Recession-proof. Mainland vs freezone technical services company? Mainland wins for scale. The cost of the technical services license in Dubai is recovered in 4 months.  

Our top professionals from Business setup experts in Dubai can streamline the process for you. They are licensed Business setup consultants in Dubai, ready to help in your business setup in Dubai.  

FAQs – Technical Service Business Setup in Dubai 

Q1: How much is the cost of technical services license in Dubai?  

AED 16,000-25,000 mainland setup. Includes DED fees, Ejari, LSA, and municipality approvals. Free zone is cheaper at AED 12k.   

Q2: Do I need a local sponsor for a technical services license in Dubai?  

No local sponsor. Mainland needs a Local Service Agent (AED 5k-10k/year) for paperwork only. 100% foreign ownership allowed.   

Q3: Can I start a technical services company from home?  

No. Ejari requires a minimum of 200 sq ft of office space for mainland companies. Free zone flexi-desk works but limits clients.   

Q4: Is civil defence approval mandatory for HVAC installation license Dubai?  

Yes, for AC, fire systems, and gas. Municipality approval Dubai is needed for plumbing/electrical. Adds 5-10 days, AED 2k-5k.   

Q5: How long does it take to get a technical services license in Dubai?  

Mainland: 7-14 working days. Free zone: 3-7 days. Delays due to incorrect DED technical services activity codes or missing Ejari.  

Conclusion – Start Your Technical Services Company in Dubai Now  

Dubai needs your skills. Technical services companies in Dubai = fast ROI. Contact our business setup consultants in Dubai for a technical services license Dubai today. Secure mainland spot before boom peaks!

Contact Business setup experts in Dubai for a hassle-free technical service business setup in Dubai!