Dubai is a top destination for consulting startups thanks to 0% personal income tax, low corporate tax, and 100% foreign ownership in free zones and mainland. Its strategic location connects Europe, Asia, and Africa, making it ideal for international clients. Key sectors like management, HR, engineering, and IT consulting are rapidly expanding.
Setting up a consultancy company in Dubai is straightforward, with startup costs starting from AED 8,500 in free zones and around AED 12,000–18,000 in the mainland, depending on your license type and visa package. Dubai also offers coworking spaces, accelerators, and access to funding, making it a smart, scalable launchpad for consulting firms.
Consultancy License in Dubai – Mainland vs Free Zone
To legally operate as a consultant in Dubai, you need a consultancy license, typically issued as a professional license. A professional trade license is required for all types of advisory work, including HR, management, engineering, and IT consulting.
There are two main jurisdictions you can choose for a consultancy business setup: Dubai Mainland and various Free Zones.
In the mainland, you can offer your services anywhere in the UAE, including to government bodies and private companies across all Emirates. Free zone companies, on the other hand, are generally limited to operating within the zone or internationally, unless they appoint a local distributor or open a mainland branch.
Mainland licenses allow greater operational freedom, but often come with slightly more regulatory requirements and higher costs. You may need to appoint a UAE national as a local service agent (without ownership rights), though this requirement is increasingly relaxed. On the other hand, free zones offer simplified procedures, lower setup costs, and complete foreign ownership, which is ideal for startups and solo consultants. Common free zones for consultancy businesses include DMCC, IFZA, and DSO.
Cost Considerations:
- Mainland setup: From AED 12,000 to AED 18,000 depending on activities and visa options
- Free zone setup: From AED 10,000 (basic packages without visa) to AED 25,000+ (with visa and office options)
- Renewal fees: Similar to initial setup costs
Understanding these differences helps you choose the right structure based on your budget, target clients, and long-term goals.
Step-by-Step Guide: How to Open Consultancy Business in Dubai?
Step 1: Define Your Consulting Activity.
Start by identifying your core services and aligning them with approved activity codes provided by Dubai’s Department of Economic Development (DED) or your chosen free zone. Examples include management consultancy, HR consultancy, IT systems advisory, etc.
Step 2: Choose a Legal Structure for Your Consultancy Firm
You can choose from several legal entities like:
- Sole Establishment (ideal for solo consultants)
- LLC (for shared ownership and larger operations)
Step 3: Reserve a Trade Name.
Pick a business name and check its availability. The name must follow UAE naming conventions—no offensive words, religious references, or global brand names.
Step 4: Decide Jurisdiction: Mainland vs Free Zone.
As discussed earlier, consider your budget and client base before choosing your setup.
Step 5: Secure Office Space
- Mainland: Physical office required (minimum 200 sq. ft.)
- Free Zone: Flexi-desks or shared offices available
Step 6: Submit Required Documents.
Documents usually include passport copies, business plan, name reservation certificate, and NOC if applicable.
Step 7: Obtain Initial Approval & Pay Fees.
Once pre-approvals are received, pay the licensing fees and sign your Memorandum of Association (MOA).
Step 8: Collect Your License.
After payment, your license will be issued, and your company will be officially established.
Step 9: Apply for an Establishment Card & Visas.
Get your immigration card and start processing visas for yourself and employees.
Step 10: Open a Corporate Bank Account.
You’ll need your license, Emirates ID (if available), and office lease to open a corporate bank account.
Cost Breakdown & Budget Planner
When starting a company in Dubai, especially a consultancy firm, understanding the financial commitment is critical; Although costs vary depending on the jurisdiction, the nature of the business, location, services selected, and visa requirements, here’s a practical overview:
One-time Setup Costs:
- Trade name registration: AED 620 – AED 1,000
- Initial approval: AED 100 – AED 500
- License issuance: AED 8,000 – AED 20,000
- MOA notarisation: AED 1,000 – AED 2,000
Office & Visa Costs:
- Flexi-desk office: AED 5,000 – AED 10,000/year
- Dedicated office: From AED 20,000/year
- Investor/partner visa: AED 3,500 – AED 5,000
Recurring Costs:
- License renewal: AED 8,000 – AED 15,000
- Accounting/bookkeeping: AED 3,000 – AED 7,000/year
- VAT registration: Free if turnover is under AED 375,000/year, mandatory otherwise
Planning for these costs ahead helps avoid surprises and allows you to scale strategically. It’s essential to note that packages vary depending on the jurisdiction and additional factors like the number of visas, office size, and whether it’s a basic or premium package.
Free Zone vs Mainland vs Offshore: Choosing the Best Jurisdiction
Each jurisdiction offers distinct benefits, and the right one depends on your business model.
Mainland
- Pros: Full UAE market access, ability to deal with government clients
- Cons: Requires physical office; slightly higher cost
Free Zone
- Pros: 100% ownership, affordable packages, simplified procedures
- Cons: Cannot trade directly in the UAE market without a local agent
Offshore
- Pros: Low maintenance, no need for office or visas
- Cons: Can’t do business inside UAE; mainly for invoicing or holding IP/assets
Comparison Table:
| Criteria | Mainland | Free Zone | Offshore |
| Foreign Ownership | 100% for many activities | 100% | 100% |
| Market Access | Mainland Businesses / Free Zones / Outside the UAE | Internationally / Free Zone Businesses | International only / no UAE market access |
| Visa Eligibility | Unlimited requires sufficient office space | Within free zones & outside the UAE | No residence visas |
| Ideal For | For businesses looking to operate within the UAE mainland | If you plan to have a physical presence in the UAE and hire employees | If your business operates globally and you don’t need access to the UAE market, and you need to hold assets |
Specialised Consulting Licences & Extra Approvals
Consulting is a broad field. Depending on your niche, extra approvals may apply:
Human Resources Consultancy
- Requires approval from MOHRE (Ministry of Human Resources & Emiratisation)
- Sensitive handling of employee data and compliance with privacy laws
Engineering Consultancy
- Requires classification by Dubai Municipality
- Must have qualified engineers with attested credentials
IT & Strategy Consulting
- May need additional NOCs depending on technology used (e.g., cybersecurity)
Understanding these sector-specific needs helps you remain compliant and better serve your market.
Legal, Tax & Regulatory Checklist for New Consultancies
Even in a low-tax environment like Dubai, compliance is essential. Here’s what you’ll need:
- ESR (Economic Substance Regulations): Applies if your business performs relevant activities
- UBO (Ultimate Beneficial Owner) Reporting: Required during setup and annually
- VAT Compliance: Register if turnover exceeds AED 375,000/year (businesses can also voluntarily register for VAT even if turnover is below this threshold.)
- Data Protection: Especially critical in HR, IT, and financial consulting
- Insurance: Professional indemnity insurance is highly recommended
Starting a Consultancy in Dubai as a US Citizen: 5 Key Differences to Know
While both countries support consultancy businesses, there are stark contrasts:
1. Company Formation:
- USA: Register an LLC/Corp with state authorities
- Dubai: Choose from mainland, free zone, or offshore routes
2. Licensing & Bureaucracy:
- USA: No “consultancy license” needed; just register a business
- Dubai: Mandatory consultancy license via DED or free zone
3. Tax Structure:
- USA: LLCs pass income through to personal taxes
- Dubai: 0% personal tax; 9% corporate tax only if the threshold is crossed
4 .Visa & Immigration:
- USA: Requires work visa (e.g., H-1B, L-1)
- Dubai: Business owners can apply for investor/residency visas
5. Cost & Speed:
- USA: Lower startup costs but more tax compliance
- Dubai: Higher initial costs, but more tax-friendly
Practical Growth Tips After Licensing
Once you have your license, the real journey begins. Here’s how to grow effectively:
- Join Business Councils: Dubai Chamber, industry meetups
- Invest in Digital Marketing: SEO, Google Ads, and LinkedIn networking
- Hire Smartly: Leverage Dubai’s multi-national talent pool; monitor visa quotas
- Banking Tools: Use multi-currency accounts for easier international transactions
Success in consultancy isn’t just about getting licensed, it’s about building credibility, systems, and a strong client base.
Frequently Asked Questions about Starting a Consultancy Business in Dubai
The cost of a consultancy license in Dubai varies based on the jurisdiction and services you choose. In free zones, packages typically start from AED 10,000 for a basic license without a visa and go up to AED 25,000 or more if you include visas and office space. For a mainland setup, expect to pay between AED 12,000 to AED 20,000, depending on your business activity, office requirements, and visa needs. Additional costs may include name reservation, initial approvals, and notarization of documents.
Starting a consulting business in Dubai is relatively fast and efficient. If all required documents are in order, you can typically get your license issued within 5 to 10 working days. Mainland setups may take slightly longer due to additional approvals, while most free zones offer quick digital processing. The timeline may also vary depending on visa processing, especially if you’re applying for an investor or partner visa alongside the company setup.
Yes, you can operate without a traditional physical office by choosing a free zone that offers flexi-desk or shared office solutions. These setups meet the legal office space requirement while keeping costs low. However, if you register your business in the mainland, you’ll need to lease a physical office space with a minimum size (usually 200 sq. ft.) as part of the licensing process. Flexibility depends on the zone and your business model.
For most consultancy activities in Dubai, a degree is not mandatory, especially for general management or business consulting. However, if you plan to operate in regulated fields like engineering consultancy, HR advisory, or financial consulting, you may be required to submit proof of qualifications, relevant experience, and sometimes attested academic certificates. These are reviewed by authorities like Dubai Municipality or MOHRE, depending on your business activity.
The most cost-effective way to get a consulting license in Dubai is to register in a free zone that offers low-cost packages for solo entrepreneurs. Some free zones provide visa-free packages starting at AED 8,500, with the option to add visas and office space later. These setups are ideal for freelancers or remote consultants who want to keep startup costs minimal while benefiting from 100% ownership and simplified registration.
Yes, you can start a consultancy in Dubai while being employed, but you’ll need a No Objection Certificate (NOC) from your current employer, especially for mainland licenses. In many free zones, a NOC might not be required unless you apply for a visa under your new company. However, it’s essential to check your employment contract and ensure there are no non-compete clauses or legal restrictions before proceeding.
To transfer a consultancy license from one emirate to another, you must cancel the existing license and re-register the company with the relevant licensing authority in the new emirate, such as DED in Dubai or the chosen free zone. This involves submitting closure certificates, obtaining approvals, and reapplying for trade name reservations and licenses. Visa transfers and bank account changes may also be required, depending on the setup.
Final Thoughts
Dubai is a thriving market for consulting services, and now is a great time to get started. With the right setup, proper licensing, and strategic planning, your consultancy can thrive both locally and globally.
Nexus Partners is here to support you in every step, from legal setup and licensing to business growth. Let us handle the technicalities so you can focus on delivering expert solutions to your clients.