In the United Arab Emirates, the need for excellent education is increasing every day. According to education business leaders, the demand is already exceeding the supply. For the recruitment, retention, and also development of qualified local and foreign talent, the establishment of a high-quality private education is necessary. However, to achieve this you need to first acquire the KHDA approval for an education company in the UAE.
In this article, you will find information about the Knowledge and Human Development Authority (KHDA), the process to start an educational business, the teaching licensing system, and also how we can help you obtain the KDHA approval for an education company in the UAE.
- What is the KHDA?
- The process to get the KHDA approval for an education company in the UAE
- What is the teaching licensing system?
- The effect of value-added tax on educational companies
- Reasons why your education company must get the KHDA approval
- Benefits of obtaining approval from the Knowledge and Human Development Authority
- How can we help you establish your education company in the UAE?
1. What is the KDHA?
The Knowledge and Human Development Authority was created in 2006 to regulate the private education system in Dubai (it is governed independently from the rest of the UAE). This government entity requires all new companies to go through a series of steps before starting to operate.
Dubai is the educational center of the UAE, compared to other Emirates, with considerably higher numbers of international and private educational centers. Because of this, the Dubai government has introduced the KHDA to ensure that providers offer only a high level of education.
This institution has the right to audit schools, assess them publicly, and also impose sanctions on incompetent organizations. The KHDA ensures that only high-quality vocational and technical education is offered. Therefore, satisfying the different educational needs of employees and Dubai citizens.
2. Process to get the KHDA approval for an education company in the UAE
If you are planning to start an education business in the United Arab Emirates, you need to go through the following steps to obtain approval from the respective business organization.
2.1 Select location and type of education to impart
There is a wide range of education levels for which you can receive support, ranging from kindergarten to private tutoring. The application you need to fill out will depend on the type of activity you choose.
In terms of location, if your company is based on providing higher education, you will likely want to be in Dubai International Academic City. However, you must bear in mind that providers of specific kinds of working training may prefer a free zone that is more adapted to the industry to which they are going to dedicate themselves.
2.2 Complete your registration
This will be the longest step of all. An entrepreneur must provide all the necessary details and all the supporting documents for registering the business. In addition to this, all the details of the activities that will be undertaken to ensure the growth of the business must be delivered. The registration must contain the following:
- Shareholder information
- Training services – According to the KHDA’s classification
- Customer recruitment process
- Introduction to your organization – showing the value of your company and your purpose
- Staff experience – including relevant qualifications
- Resources and facilities – including classrooms and equipment
- Certification – information on the certificates you provide
- Non-training services – details of other activities
- Marketing – showing how you are going to spread the word about your company.
2.3 Fill up an application
Fill out the Educational Service Permit Form. This form is generally very simple, but some complications may arise. For this reason, it is always recommended that you hire the services of a business consulting agency like Connect Zone.
2.4 Provide the necessary paperwork
Filling out the application is not the only job you have to do. The information provided in the application must be backed up with the relevant documents. These documents may include the following:
- Manager/Director CV
- Name reservation from the competent authority
- Registration plan
- Qualifications certificate for the manager
- Signature of the manager and every shareholder
- Passport copies of all shareholders
- Course list
- Undertaking from the manager attesting that they will manage the training institute full-time, including the proposed working hours.
- Color passport of the manager/director of the institute
- Certificate of good standing
- If one of your shareholders is a corporate, then you must include a board resolution from the mother company announcing the establishment of the institute in Dubai.
Besides the paperwork related to the institute itself, you will also need to provide copies of your tenancy contract, the environmental health and safety certificate, and your trade license.
2.5 Submit your application
Lastly, you must submit the application through the online portal of the KHDA. And you must also, pay the relevant fees.
Depending on the status of your application, the final approval may be delivered in a matter of days for smaller operations. Or, on the other hand, it may take much longer if you are a larger outfit.
3. What is the teaching licensing system?
The teaching licensing system was created by the government of the United Arab Emirates, thinking about the future of education in the country. For the UAE authorities, offering quality education is a priority. For this reason, the acquisition of a license to work as a teacher is mandatory for all professionals in this sector of the country.
By the end of 2020, all UAE teachers have obtained the required license. This helped in equipping the teachers with the competence to compete with all the teachers globally. To obtain a teaching license, all teachers must pass two tests. The first test will be based on practice and general teaching methods. The second will be based on specialization.
In the event that some of the test takers are not able to pass one test or both, the system will help them get better grades in the future by providing them with customized training courses. The customization will deal with the current scenario of the test taker and the needs of the taker.
3.1 Requirements for a teaching license
With the creation of the teaching licensing system, also known as TLS, every teaching business will need a teaching license to be able to work legally in the United Arab Emirates. To receive this license, specific requirements need to be fulfilled by the person. These are the following:
- The applicant cannot have a criminal record
- They must possess a bachelor’s degree or any degree more considerable than the bachelor’s degree
- They must have the original educational certificates
- The applicant must produce a fitness report verified by the concerned authority.
- In the event that the applicant is a graduate of a university outside the UAE, they must present the educational documents attested by the Ministry of Foreign Affairs and the Embassy of the country in the UAE.
Basically, these are the five basic requirements that a person must meet if they want to acquire a teaching license.
4. The effect of value-added tax on educational companies
The implementation of this tax is perceived as a game-changer as it will bring in a new source of revenue for the UAE government. In the country, all the educational supplies and all the related goods will be levied at zero percent Value-added Tax. The educational institutions included in this are the following:
- Preschools, nurseries, schools
- Higher educational institutions owned by the federal or the local government.
Note that not every business is eligible for zero percent VAT. The educational institutions, which are recognized by the regional and local governments should receive 50% or more funding directly from the federal or provincial government.
Also, only the educational services that are recognized by the federal or local government can be zero-rated. If an individual does not match the CV provided by the government, the standard rate of VAT is charged (5%).
5. Reasons why your education company must get the KHDA approval
One of the main reasons to obtain the KDHA approval for an education company in Dubai is that you get 100% foreign ownership. This ensures that educational institutions are managed and run by you.
In addition to this, when you decide to form an educational institute in Dubai, you have the freedom to choose the perfect space for the institution anywhere in the free zone or on the Mainland.
Another advantage of this sector in this emirate is the presence of international educational institutes. This helps you partner with other educational brands and foreign programs and associate with them. On the other side, if you want to acquire a professional license in Mainland Dubai instead of a free zone, you will not have any type of limitation and you will be able to enter a wide variety of markets.
Apart from the final target audience, you will be able to make agreements/contracts with school organizations, major corporations, and also government departments.
6. Benefits of obtaining approval from the Knowledge and Human Development Authority
Those who invest in education in Dubai can enjoy various benefits. You get to choose your location, your educational domain, and also to set up an educational organization for optimal growth. Some of the specific benefits that you can acquire are the following:
6.1 Hassle-free setup
Once you follow the policies related to the formation of the educational institution, the process is quick and uncomplicated. The corresponding authorities will confirm the health, safety, and also security concerns of the education-related organization. Since this is one of the government’s priorities, children and youth are nurtured in the right environment.
You can send your application along with the required documents for the approval of the institution. Our support during this process can be helpful to resolve every issue and to secure the KHDA approval for an education company in the UAE.
6.2 E-learning possibilities
You can include E-learning centers as part of the institution. This is an advantage as it ensures earning more profit through the education-related organization. The formation of e-learning facilities is cost-effective and can attract more students to join you to continue their education online.
6.3 Multiple currency transactions
The Dubai government allows entrepreneurs to transact in several currencies.
6.4 Full ownership
Every owner of an educational institute can own 100% shares of the company.
6.5 Growth prospect
This is one of the biggest advantages of starting an educational business in Dubai. The number of people who come to this emirate, for different requirements, increases every year. Almost 80% of them bring their family with them. With the number of students/children increasing every year the need for educational entities has also been increasing.
The Dubai authorities are strict regarding the setup of education-related institutions/firms. Therefore, you must follow by the letter all the regulations. Otherwise, it can be difficult to get the KHDA approval for an education company in the UAE.
6.6. Freedom to recruit personnel
You have the freedom to recruit professional tutors and teachers, including ex-pats. The government will not interfere in your decisions regarding personnel. Hence, you can recruit the most qualified professionals from the country of your choice.
7. How can we help you establish your education company in the UAE?
Obtaining the KHDA approval for an education company in the UAE may be a challenging process. This is why working alongside an expert in the formation of companies can reduce the chances of making any mistakes.
Connect Zone can help you obtain different legal documents that will ease your stay in the UAE. For example, we can help you get an emirates ID, a residence visa, and also open a corporate bank account.
Do you want to know more about the services we can offer you? You can contact us at the following number +971 43 316 688 or write to us at email@example.com where one of our advisors will answer all your questions.
Check out The Talent Point and find a wide variety of employment opportunities that suit you. You can send your CV to many companies by going to thetalentpoint.com. Also, you can apply through the email firstname.lastname@example.org.