Dubai has made a name for itself as a center for consulting firms, drawing in experts and companies worldwide. There is a high demand for advice services in the UAE due to its dynamic economy, changing legal system, and cultural differences in conducting business in the Arab world.

Here, consulting companies flourish, providing the expertise needed to negotiate this challenging but rewarding market successfully.

In the United Arab Emirates, the consulting sector has experienced notable expansion. For instance, industries including business advisory, technology consulting, and legal services drove the billions of dirhams that consultant services brought to the UAE economy in 2023.

According to local business officials, the growing need for expert counsel and strategic solutions is reflected in the 15% increase in consultancy licenses granted in Dubai alone over the previous year.

Well, in this comprehensive guide, let’s explore what a consultancy license is, its different types, how much it costs, and how you can apply for this license.

What is a Consultancy License in the UAE?

A consultant license enables people or companies to provide intellectual and advisory services in various industries. It places more emphasis on knowledge-based operations than on the production or sale of matters, in contrast to trade or industrial licenses.

Key Differences From Other Business Licenses

• Focus on Intellectual Services

Licenses for consulting are designed for service-oriented companies that depend on knowledge and problem-solving, like project management, HR consulting, and business advice.

In contrast:

• Selling or distributing tangible items is part of trading licenses.
• Businesses engaged in production or manufacturing are granted industrial authorizations.

• Specific Clientele

Clients seeking strategic advice, whether enterprises, government agencies, or people needing specialist knowledge, are usually served by consulting firms. Project-based or long-term retainer agreements are common ways that services are offered.

In contrast:

• Independent professionals who frequently engage with smaller clients or on a one-time basis are the target of freelance permits.
• Commercial licenses serve businesses involved in retail commerce or wholesale transactions between businesses.

• Office Requirements

Virtual offices are permitted, particularly in free zones, but some consulting firms may require a physical office location.

In contrast:

• Some types of facilities, mainly virtual offices, must be included to obtain freelance permissions and e-commerce licenses, which frequently do not require a physical office.

• Regulation and Approval

Certain consulting operations, such as legal or financial advising, require further authorization from UAE authorities such as the Ministry of Justice or the Securities and Commodities Authority (SCA).

In contrast:

• Generally speaking, trading licenses can be processed more rapidly and have fewer regulatory restrictions.

Types of Consultancy Services in the UAE

To satisfy the demands of both domestic and foreign companies, the UAE provides a broad range of consulting services. The following are essential and in-demand consulting areas:

• Business Consulting

Business consultants aid in strategy improvement, profitability enhancement, and operational optimization. They offer business development, management consulting, and organizational guidance.

• Financial and Investment Advisory

Financial consultants help organizations navigate complex financial landscapes, such as venture capital and cross-border investments, by offering investment advice, asset management, and wealth planning.

• Marketing and Sales Strategy

Marketing consultants concentrate on enhancing brand visibility and developing successful campaigns, especially in the competitive digital market of the United Arab Emirates.

• Market Research and Analysis

Based on data analysis, these advisors provide insights that help firms take advantage of opportunities and lower risks by illuminating consumer behavior and market dynamics.

• Legal and Compliance Consulting

With an emphasis on labor legislation, intellectual property, and adherence to rules like AML and KYC, legal experts help clients understand the business laws of the United Arab Emirates.

• Human Resources and Recruitment

HR consultants assist companies in creating productive teams and adhering to labor regulations by offering hiring, talent management, and employee retention advice.

• IT and Technology Consulting

IT consultants help companies choose and implement the best technology to boost productivity, strengthen security, and facilitate digital transformation.

• Accounting and Tax Consultancy

While tax experts help with VAT registration, returns, and planning, accounting consultants guarantee proper financial records and tax compliance.

• VAT Consultancy

These professionals assist businesses with understanding and sticking to VAT requirements, including audits and exemptions, since the implementation of VAT in 2018.

• Immigration Consultancy

Immigration advisors assist individuals and companies in obtaining visas, notably the UAE Golden Visa and work permits.

• Education and Training

To improve skills and productivity, education consultants provide training plans and staff development initiatives.

How to Apply for a Consultancy License?

The procedure of launching a consulting business in Dubai is simple and usually takes a few days to finish.

• Step 1: Decide on Your Business Activity

It’s essential to pick a business venture that fits both the UAE market’s demand and your area of expertise.

• Step 2: Choose a Jurisdiction

The next step is to choose a location for your consulting business.

• Mainland: Provides you more access to the UAE market; however, depending on the nature of your firm, you might need local sponsorship.
• Free zone: Offers advantages such as different tax benefits and exemptions and 100% ownership for foreigners.

• Step 3: Register a Trade Name

The selected name has to conform to UAE naming laws and regulations. Steer clear of names that are negative or sound too much like those of other companies.

• Step 4: Submit the Documents

Prepare and submit the required paperwork for your application for a consulting license. They will differ depending on whether you are establishing in a free zone or on the mainland.

• Step 5: Obtain Approvals and Pay Fees

Some consulting services, especially those in industries like law or finance, may require additional permissions from the appropriate government agencies.

The necessary payments must be paid after all permissions have been received. The licensing body will then issue your consulting license, usually in a matter of days.

Essential Documents to Be Prepared

Depending on whether you are registering in a free zone or on the mainland, the following is a complete list:

• Application form
• Copies of your passport and visa
• Photos
• Relevant approvals 
• No Objection Certificate (NOC)
• Unified number: It may be necessary to obtain a Unified Number for individuals with visiting visas.
• Local service agent (LSA) agreement: In some circumstances, this agreement with a UAE national may be required if your business is international.
• Company profile: An overview of your target market, company model, and operations to aid the licensing authorities in reviewing your application.

The application procedure is often completed quickly after all paperwork is received and the license is granted in a few days.

Cost of a Consultancy License in Dubai

The cost of starting a consulting firm in the United Arab Emirates varies based on the type of consultancy, the jurisdiction, and the needs of the company. This is an overview:

• License and Registration Fees: Usually, the cost starts at AED 5,750. After all, the jurisdiction you select will determine the fees.
• Professional Certification Fees: Some industries require professional qualifications or memberships, such as the financial, medical, and legal advisory sectors. The related fees differ depending on the industry, usually falling between AED 2,000 and AED 10,000 per consultant yearly.
• Office Rent and Business Expenses: Although it is not required, office rent can vary significantly based on the location, size, and amenities offered. If you hire staff, digital marketing, supplies, website development, and employment expenditures are additional charges. Some free zones lower costs by providing virtual office solutions.

Benefits of Launching a Consultancy Business in the UAE

The UAE is positioned as the perfect professional center because it offers many advantages to consultants looking to establish their businesses.

• Strategic Location and Market Demand

The UAE is a central hub for international trade and business, situated at the meeting point of Europe, Asia, and Africa. Due to its position as a worldwide financial center, infrastructure development, and economic expansion, Dubai has emerged as a major hub for consulting services.

Opportunities arise in a variety of consulting fields, including IT, business and legal advice, and more, thanks to the UAE’s varied economy.

• Business-Friendly Regulations and Tax Advantages

The following are some major advantages of UAE regulations that encourage entrepreneurship:

• Personal income is tax-free.
• The 9% corporate tax applies to mainland businesses with taxable income over AED 375,000. Free zone entities may qualify for 0% tax on Qualifying Income under Cabinet Decision No. 100 of 2023, provided they avoid Excluded Activities (e.g., banking, insurance).
• Capital repatriation.

Additional benefits include:

• Full foreign ownership
• Co-working spaces, flex desks, and full office setups are flexible office rental solutions that may accommodate various needs and price ranges.
• Business bank accounts 
• Residence visas

• Opportunities for Growth

The UAE’s multicultural population provides excellent networking opportunities. Due to the growing need for consulting services, the dynamic and growing business ecosystem offers consultants several chances to build their companies.

Why Choose UAE-Free Zones for Consultancy Businesses?

The UAE’s free zones are a great place to start a consulting firm because they provide several benefits. This is the reason:

• Low Corporate Taxes and Tax Reliefs for Small Businesses

UAE free zones are renowned for their attractive tax-saving programs and cheap corporate taxes.

Small Business Relief is another option available to small firms; it applies to those with yearly revenue under AED 3 million. Your tax burden can be significantly decreased by doing this.

• Fast and Streamlined Setup Process

Establishing your consulting firm in a UAE-free zone is quick and easy, usually requiring one to two weeks. Because there isn’t much paperwork involved, you may concentrate on starting your company right away.

• Cost-Effective Setup Packages

Free zones frequently provide affordable setup packages that cover all the necessary services for starting a business, such as office space, business licenses, and visas. Certain free zones even provide exclusive promotional packages that include extra services and savings.

• Remote License Registration

Setting up your consulting firm is easier because many free zones enable you to finish the license registration process remotely, even if you are not physically in the UAE.

• Easier Bank Account Opening

Creating an account is made easier by the fact that free zones frequently have established partnerships with specific banks.

Popular Free Zones for Consultancy Businesses

The following are some of the most well-liked free zones for consulting firms:

• Dubai Multi Commodities Centre (DMCC): Known for its affordable rates and business-friendly atmosphere.
• Dubai Internet City (DIC): Excellent for technology and IT consultants.
• Ras Al Khaimah Economic Zone (RAKEZ): Providing affordable packages and adaptable office space to small businesses.
• International Free Zone Authority (IFZA): An excellent choice for anyone working in the creative, consultancy, and media sectors.

The services you intend to provide, your budget, and your company’s needs will all play a role in selecting the best free zone for your consultancy.

Conclusion

Obtaining a consultancy license in the UAE is a smart choice for entrepreneurs. It allows them to establish a professional advisory business in a dynamic market. Businesses can choose to set up in a free zone or on the mainland. Free zones offer tax advantages and, in some cases, 100% foreign ownership. Mainland companies gain access to a thriving client base.

At JSB Incorporation, we simplify the process by offering expert guidance on business registration, legal compliance, and operational setup.

Book your free consultation call today with the experts of JSB Incorporation to get started.

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FAQs

• Who needs a consultancy license in the UAE?

Individuals or firms offering expert advice in fields like management, finance, IT, and marketing need this license.

• Can a foreigner own 100% of a consultancy firm in the UAE?

Yes, foreigners can own 100% of their consultancy business in UAE-free zones and certain mainland jurisdictions. But 100% foreign ownership applies only to non-strategic activities. Strategic sectors (e.g., defense, banking) require UAE national participation per Cabinet Resolution No. 55 of 2021. 

• What are the types of consultancy licenses available?

The UAE offers mainland, free zone, and offshore consultancy licenses, each with specific benefits.

• How long does it take to get a consultancy license in the UAE?

Depending on the jurisdiction, the process typically takes 3 to 7 working days.

• What are the costs involved in obtaining a consulting license?

Costs vary by jurisdiction, including license fees, office space rental, and visa processing.