Business setup · Professional services
How to Set Up a Consultancy Business in the UAE
A consultancy business in the UAE is licensed under a professional or service activity, such as management consultancy, business consultancy or engineering consultancy, on the mainland or in a free zone. Most advisory activities need no extra approval, but financial and investment advice requires the Securities and Commodities Authority, and legal activities need prior approval.
Fact-checked against official sources on · EH Management Consultancy LLC
At a glance
Key facts
- Licence category
- Professional or service licence
- Usually no extra approval
- Management, business, HR and marketing consultancy
- Needs approval
- Financial and investment advice (SCA); legal activities (prior approval)
- Popular zones
- IFZA, Meydan, Shams, DMCC
- Mainland fit
- Government and onshore corporate clients
What do you need to know first?
Consultancy is one of the most common UAE setups because it needs little capital and no physical stock. The activity name matters more than founders expect: banks, clients and tax rules all look at what your licence says, so “management consultancy” and “investment advisory” lead to very different obligations.
Free zones such as IFZA and Meydan suit consultants serving international or free zone clients. If you will advise UAE government entities or need to work on client sites across the mainland, a mainland professional licence is usually cleaner. Many solo consultants start in a free zone and add a mainland presence later.
Regulators
Which approvals are needed?
Where to set up
Which jurisdictions suit this activity?
Visas: A consultancy usually needs an investor visa for the owner and a small number of employee visas. Choose a package or office that leaves room for your next hires.
Process
Step by step
-
01
Name the activity precisely
Match the licensed activity to the advice you actually give.
-
02
Check for regulated advice
Financial, investment and legal advice need prior approvals.
-
03
Choose jurisdiction
Free zone for international clients, mainland for onshore and government work.
-
04
License and open a bank account
Banks review your activity and client profile closely.
-
05
Register for tax
Register for corporate tax and monitor the VAT threshold.
Checklist
What should you prepare before applying?
Settle these before you pay any government fees.
- 01
Write down the exact advice you will give and match the activity to it.
- 02
Check whether any advice is financial, investment or legal.
- 03
Decide whether you will work for government or onshore clients.
- 04
Prepare a client profile and contracts for the bank.
- 05
Register for corporate tax and watch the VAT threshold.
Frequently asked
Questions about consultancy in the UAE
Do I need a professional licence to consult in Dubai?
Yes. Paid consulting is a licensed activity. You can hold a professional licence on the mainland or a service or professional licence in a free zone.
Can I give investment advice with a consultancy licence?
No. Financial consulting, share broking and investment advisory require approval from the Securities and Commodities Authority, or the relevant regulator in DIFC or ADGM.
Is a free zone or mainland better for consultants?
Free zones suit international and free zone clients. Mainland suits consultants serving UAE government and onshore clients directly.
Do consultants pay corporate tax?
Yes, if they operate through a company or meet the business-activity threshold as individuals. The standard rate is 0% up to AED 375,000 of taxable income and 9% above.
Official sources
Verify it yourself
Regulators update their rules. These are the authoritative references behind this guide.
Related
Services and guides
Ready to license your consultancy business?
We confirm the activity, approvals and best jurisdiction before you pay any government fees.