How To Start Technical Services Business in Dubai?

Dubai is considered to be the most business-friendly place in the world. With that picture, there are many people across the globe setting up businesses in Dubai.

During the process of setting up, there are different aspects involved, like location, rental space, interior design, required gadgets to work, and other resources. These requirements change into necessity; therefore, according to your expertise, you pick and choose to solve these problems, which then slowly turns out to be a service business.

One such thought process led to starting a technical service business in Dubai. There are a lot of business owners and entrepreneurs looking for related services as it plays a major role in elevating their business. So what exactly can you refer to as ‘Technical Services’? This follows Plumbing, flooring, pipeline fixing, electrician, and HVAC (Heating, ventilation, and air conditioning) service.

This article will provide you with a deep understanding of how to execute your technical services business in Dubai.

Understanding Technical Services Business in Dubai

The term ‘Technical services’ might be a little confusing when it comes to understanding what exactly these services offer. The majority of the crowd relates to these services as software and technology, which is incorrect.

Technical services are connected with concrete works, everything related to wiring, insulation, and electrical fitting. They also cover carpentry, flooring, titling, corporate cleaning, HAVC, etc. On a larger scale, these services include solar energy systems installation, sanitary contracting, and more.

This concept is not only focused on the business locations but is also suitable for the general residents living in individual houses and apartments. This way, the profit margin is wider when the execution part is excellent. This can be achieved with proper strategy, getting all the permissions beforehand, and abiding by the rule of local government.

Pro Tip: Concepts like Uber home services are still NOT in existence in Dubai. Therefore, now that people have adopted the ‘Quick Commerce solution,’ bringing them solutions to these technical issues instantly will be an excellent way to start setting up technical services business in Dubai. This idea might require intense work like launching the application and back-end services. Never a harm to give it a try!

Types of Technical Services Businesses

The technical services can be diversified, but putting them in a nutshell, they can be classified into two: 1. Electrical & Energy Installations 2. Concrete and Construction works. Among these two, there are several different bifrications:

Electrical & Energy Installations

Most business organizations will require these kinds of services, especially when they’re looking for new offices. This involved wiring, copper tape installations, computer table fixing, air conditioning, ethernet connectivity, and more. Here, there is a combination of tech-related and technical services.

If the focus is now shifted to housing services, many people will look for power fixation in their homes and apartments. If the residents are moving in, they would require solar energy systems to be installed, followed by a little interior design and lighting, which again turns back to an electrician.

Concrete & Construction Works

This doesn’t involve the complete civil work but a few processes down like flooring, PPC wall installation, false ceiling, minimal architecture, and more. Majorly this services will be required by business people who are launching their new office. To give the best impression of the office designs, looks, and more.

These services can be done in two aspects: Specialization and general technical services. Where specilaized package can focus on both the above mentioned services and sign-in for a contract to look after the same for long-term. On the other hand, general technical services can include to-the-point services and commission-based services.

Benefits of Setting Up a Technical Services Business in Dubai

1. Strategic Business Location

Technical services businesses in Dubai are in high demand. Yes! Since it is considered as the strategic business location, people from across the globe have been launched there business here. Therefore, providing them with top-notch business services is a priority. If you choose to have them with your technical services business, then nothing is more strategic than starting it now.

2. Ease of Business Setup

Technical services business setup in Dubai is easy when you approach the right person and seek the best advice. Here, Arnifi comes to your rescue. We handle everything from registration, licensing, and tax compliance to accounting services. With us, setting up a business is easy and hassle-free.

3. Tax-Free Business Environment

Another aspect of why Dubai is considered the best place to set up a business is its business-friendly tax policies. The low corporate tax and 0% income tax the business profits are maximized and used to further improve the business & services.

4. Growing Construction & Maintenance Industry:

Since many people have moved to Dubai for business and reside here for a few years, there is immense growth in the construction and real estate industries. These demand requires the launch of technical services business.

Access to a Large Client Base:
There is no deficiency of clients who cannot require is service! Many people look for the best technical services in Dubai; if you crack the code, then you win! The only part you need to look at is to provide excellent service and bring awareness of your business, i.e., market in a unique way.

Types of Business Jurisdictions & Structures

The decision between mainland and free zones depends on factors like business objectives, target market, and long-term growth plans. Mainland offers broader market access but often with higher costs, while free zones provide tax benefits and easier setup with limited local market access.

Mainland vs. Free Zone Business Setup

Mainland Setup:
As discussed in the previous context, the UAE splits the country into the mainland and free zone to provide offers based on the type of business that entrepreneurs are willing to set.

The mainland offers a direct connection with diverse markets, allowing them to network and engage in trade aspects and more. This is more convenient for large-scale businesses like trade, import/exports, tech, and fintech industries. Along with this, they have friendly policies similar to free zones.

Free Zone Setup:
This particular jurisdiction focuses on leading hand for developing and small scale business like digital services, technical services, office setup and more which don’t require cross market access. Along with these, they have the freedom to have 100% ownership of, low corporate tax, and 0% income tax policies. Here, the registration process is easy and simple with minimal governance.

Therefore, choosing between mainland and free zone setups completely depends on the nature of the business, operational requirements, and long-term growth strategy.

Business Structures Available

1. Sole Proprietorship

If you’re an individual who is looking to set up a business and handle everything on your own, then the company is set to be a sole proprietorship. Here, the risks and liability might increase because a single person is responsible for handling all the legal and domestic aspects of the business. This is mostly suitable for freelancers, consultancies, and small businesses.

2. Limited Liability Company (LLC)

An LLC requires at least two and up to fifty shareholders, with each being liable only for their share of investment. This is the most popular business structure in the UAE as it provides more protection to the stakeholders. This type of business setup will give a wider space to operate in commercial markets.

3. Branch of a Foreign Company

This is the most restricted type of business where the company is already in existence and wants to launch another business in Dubai. While the freedom of expansion and decision-making are still with the parent company.

Step-by-Step Process to Set Up a Technical Services Business

Step 1: Select Your Business Activities: Narrow down what type of service you want to provide. If it is technical services, then decide the specific type as discussed above – Types of technical services business.

Step 2: Choose Your Business Jurisdiction: There are two types – Mainland and freezone each have it’s advantage. It is better to choose the jurisdictions wisely depending on the type of business and the budget you have to start a technical services business.

Step 3: Register a Trade Name: This is a pre-requrement for a business setup in Dubai. name the business and register the same. The name should abide by the rules of DED and requires attestation before starting any other procedure.

Step 4: Apply for the Technical Services License: Prepare all the necessary documents, like the business registered name from DED, and choose the location and office space. With all these, you can apply for a technical license. We at Arnifi ease all this process by handling all the process and save your time.

Cost of Setting Up a Technical Services Business

The cost for setting up a technical services business depends on different aspects like licensing, operational, staff, and marketing costs. These costs vary based on the freezone and mainland business setup. On average, the costs may vary from AED 16,500 To 30,000.

• Licensing Costs: Costs for mainland is higher than the freezones due to the flexibility and the networking power while the other policies remain the same. 
• Additional Business Setup Costs: These costs include, Trade name registration, Office rental, Visa processing & work permits, Business insurance & liability coverage.
• Equipment & Operational Costs: These include necessary machinery, tools, and safety gear, as well as Digital tools like accounting software & CRM for promotions and marketing. And lastly, the annual maintenance & compliance costs.
• Hiring & Staffing Requirements: The budget required to hire a skilled professional depends on the proficiency level you require to fulfill a position in your business. For instance, A person who is proficient in electrical and related work and promises to handle almost all the aspects around it are higher compared to a person who is good at ONLY one skill.

On the other hand, there are Labor Laws & Employment Visa Requirements, which will cost you depending on Dubai’s regulations for hiring skilled workers. And employee sponsorship and visa processing. Below is a rough Table of the costs required for a Technical Services Business license:

Service Name	Fees in AED
Initial Approval	120
Trade Name	620
Tasheel Pre Approval	345
Tasheel Fees LSA	350
License Fee	6690
Foregin Trade	2000
Arnifi Services Fees	5555
Total License Cost	15680

Marketing & Business Growth Strategies

Building Online Presence: Every business requires a strong online presence to bring awareness among people to choose your services at the maximum times. This includes website creation and optimise the same with SEO so people find you on the internet when the user search for the similar service. Also, Work on listing your business on Google.

Social Media & Digital Marketing: These are the trending ways to promote your business online and reach a wide audience, i.e., worldwide. Start a business page on platforms like Facebook and Instagram and post your expertise to generate leads. Use trendy visuals and attractive ad creatives for people to book and get your services. 

Establishing Business Partners: Along with digital marketing, you must incorporate traditional marketing strategies like banners, pamphlets, webinars, and more. While partnering with others will give you a wide audience and networks.

Challenges in Running a Technical Services Business

The major challenge that almost all business owners face is regulatory compliance and handling all the legal documentation.

This can be sorted out with Arnifi. We have worked along by handling all the legal compliance and registration processes with local support. Apart from this, we also provide visa assistance to the employees, so you can focus on hiring people from different countries. 

The other major challenge would be bringing in the business profitably with the already existing companies. So you need to focus more on the marketing and promotions while you leave the business setup proceedings to us – Arnifi.

Conclusion

If you have reached this far, then congrats! Technical services Business in Dubai is a great idea which one should execute as early as possible. Because the demand for this type of business is enormous. Before setting up, have a detailed plan on why, where, when, and how to start this business and scale huge.

Choose the right location among Freezone and the mainland that fits the purpose of the business and the budget. Make sure all the necessary documents are kept handy and follow the guidelines from DED.
We at Arnifi are here to simplify your business setup in Dubai and across 7 different countries – USA, KSA, Singapore, Oman, Qatar, and Bahrain. Sign up for a free consultation!