Consultancy License in the UAE: A Comprehensive Guide for 2025

Dubai has established itself as a hub for consultancy businesses, attracting professionals and firms from across the globe. The UAE’s evolving legal framework, dynamic economy, and cultural nuances in doing business in the Arab world create a strong demand for advisory services. Consultancy businesses thrive here, offering expertise to navigate this complex yet rewarding environment.

The consultancy industry in the UAE has seen significant growth. For example, in 2023, consultancy services contributed billions of dirhams to the UAE economy, fueled by sectors like business advisory, technology consulting, and legal services. According to local business authorities, the number of consultancy licenses issued in Dubai alone increased by approximately 15% compared to the previous year, reflecting the rising demand for professional advice and strategic solutions.

What is a consultancy license in the UAE?

A consultancy license allows individuals or businesses to offer advisory and intellectual services across various industries. Unlike trading or industrial licenses, it focuses on knowledge-based activities rather than the sale of goods or production.

Key differences from other business licenses

1. Focus on intellectual services

Consultancy licenses are tailored for service-oriented businesses that rely on expertise and problem-solving, such as business advisory, HR consultancy, or project management.

In contrast:

• Trading licenses involve selling or distributing physical goods.
• Industrial licenses are issued for manufacturing or production businesses.

2. Specific clientele

Consultancy firms typically cater to clients seeking strategic advice — corporations, government entities, or individuals requiring specialized knowledge. Services are often project-based or provided under long-term retainer agreements.

In contrast:

• Freelance permits target independent professionals who often work with smaller clients or on a one-off basis.
• Commercial licenses serve businesses engaging in retail trade or wholesale B2B activities.

3. Office requirements

For certain consultancy businesses a physical office space can be mandatory, however virtual offices are allowed, especially in free zones.

In contrast:

• Freelance permits and e-commerce licenses often do not require a physical office but some sort of facility have to be included, which is usually virtual offices. 

4. Regulation and approval

Certain consultancy activities — for example financial advisory or legal consulting — require additional permissions from UAE authorities like the Securities and Commodities Authority (SCA) or the Ministry of Justice.

In contrast:

• Trading licenses typically involve fewer regulatory requirements and can be processed more quickly.

Types of consultancy services in the UAE

The UAE offers a wide array of consultancy services to meet the needs of both local and international businesses. Below are key areas of consultancy that are highly sought after:

• Business consulting

Business consultants help optimize operations, improve profitability, and refine strategies. Their services include management consulting, business development, and organizational advice.

• Financial and investment advisory

Financial consultants provide guidance on investments, asset management, and wealth planning, assisting businesses in navigating complex financial landscapes, including venture capital and cross-border investments.

• Marketing and sales strategy

Marketing consultants focus on improving brand presence and creating effective campaigns, particularly in the UAE’s competitive digital market.

• Market research and analysis

These advisors deliver insights based on data analysis, shedding light on customer habits and market dynamics to assist businesses in seizing opportunities and reducing risks.

• Legal and compliance consulting

Legal consultants navigate UAE’s business laws, focusing on intellectual property, labor laws, and compliance with regulations like AML and KYC.

• Human resources and recruitment

HR consultants advise on recruitment, talent management, and employee retention, helping businesses build effective teams and comply with labor laws.

• IT and technology consulting

IT consultants assist businesses with selecting and integrating the right technologies to enhance operations, improve security, and support digital transformation.

• Accounting and tax consultancy

Accounting consultants ensure accurate financial records and tax compliance, while tax consultants assist with VAT registration, returns, and planning.

• VAT consultancy

With the introduction of VAT in 2018, these experts help companies understand and follow  VAT regulations, including exemptions and audits.

• Immigration consultancy

Immigration consultants help businesses and individuals secure work permits, visas, including the UAE Golden Visa.

• Education and training

Education consultants design training frameworks and employee development programs, boosting skills and productivity.

How to apply for a consultancy license?

Starting a consultancy business in Dubai involves a straightforward process that can typically be completed within a few days. 

Step 1: Decide on your business activity

It's essential to choose a business activity that aligns with your expertise and the market demand in the UAE.

Step 2: Choose a jurisdiction

Next, you need to decide where you want to base your consultancy business.

• Mainland: Provides broader access to the UAE market, but may require local sponsorship depending on the type of your business activity.
• Free zone: Offers benefits such as 100% ownership for foreigners and certain tax reliefs and exclusions.

Step 3: Register a trade name

The chosen name must adhere to the naming rules and regulations of the UAE. Avoid names that are offensive or similar to existing business names. 

Step 4: Submit the documents

Prepare and submit the necessary documents for your consultancy license application. They will vary based on whether you are setting up on the mainland or in a free zone. 

Step 5: Obtain approvals and pay fees

Certain consultancy services, particularly those in fields like finance or law, might need extra approvals from relevant government bodies. Once all approvals are obtained, you will need to pay the required fees. The licensing authority will then issue your consultancy license, typically within a few days.

Essential documents to be prepared

Here is a comprehensive list, depending on whether you are registering on the mainland or in a free zone:

• Application form
• Copies of your passport and visa
• Photos
• Relevant approvals 
• No Objection Certificate (NOC)
• Unified number: For those on visit visas, a Unified Number might need to be obtained.
• Local service agent (LSA) agreement: If you are a foreign company, this agreement with a UAE national might be needed in certain cases.
• Company profile: An overview of your business activities, target market, and business model to help the licensing authority evaluate your application.

Once all documents are submitted, the application process is usually quick, with the license being issued within a few days. 

Cost of a consultancy license in Dubai

Setting up a consultancy in the UAE involves various costs depending on factors like jurisdiction, type of consultancy, and business requirements. Here's a breakdown:

License and registration fees

The cost typically starts from AED 5,750. Fees depend on the jurisdiction you choose.

Professional certification fees

Specific industries, including finance, healthcare, and legal advisory, mandate professional certifications or memberships. The associated fees vary by sector, typically ranging from AED 2,000 to AED 10,000 per consultant annually.

Office rent and business expenses

Office rent is not mandatory and, if needed, can very widely depending on the location, size and facilities included. Additional expenses include supplies, website development, digital marketing, and staffing costs if you hire employees. Some free zones offer virtual office solutions, reducing costs.

Benefits of launching a consultancy business in the UAE

The UAE provides a wealth of benefits for consultants aiming to set up their business, positioning it as an ideal hub for professionals.

1. Strategic location and market demand

Located at the intersection of Europe, Asia, and Africa, the UAE is a global trade and business hub. Dubai, in particular, has become a leading centre for consultancy services, driven by economic growth, infrastructural development, and its role as a global financial hub. The UAE’s diverse economy offers abundant opportunities across various consultancy sectors, from business and legal advisory to IT and more.

2. Business-friendly regulations and tax advantages

The UAE's regulations foster entrepreneurship with several key benefits:

• No taxes on personal income.
• Corporate tax of just 9% with a range of options to optimize it or reduce to 0%. 
• Repatriation of capital.

Additional benefits include:

• Full foreign ownership
• Flexible office rental options: co-working spaces, flexi-desks, and full office setups cater to various needs and budgets.
• Business bank accounts 
• Residence visas

3. Opportunities for growth

The UAE’s multinational population offers excellent networking opportunities. The dynamic and expanding business ecosystem provides ample opportunities for consultants to grow their businesses, driven by the increasing demand for consultancy services.

Why choose UAE free zones for consultancy businesses?

Free zones in the UAE offer several advantages that make them an ideal choice for setting up your consultancy business. Here’s why:

Low corporate taxes and tax reliefs for small businesses

UAE free zones are known for their low corporate taxes and attractive tax relief programs. For small businesses, there’s also the option of Small Business Relief, which applies to companies with annual revenue under AED 3 million. This can significantly reduce your tax burden.

Fast and streamlined setup process

Setting up your consultancy business in a UAE free zone is a quick and efficient process, typically taking 1-2 weeks. It involves minimal bureaucracy, allowing you to focus on getting your business up and running without unnecessary delays.

Cost-effective setup packages

Free zones often offer cost-effective setup packages that include everything you need to start your business—business license, visa, office space, and other essential services. Some free zones even offer special promotional packages with discounts and additional services.

Remote license registration 

Many free zones allow you to complete the entire license registration process remotely, making it easier to set up your consultancy business, even if you’re not physically in the UAE. 

Easier bank account opening

Free zones often have well-established relationships with certain banks, which facilitates the account-opening process.

Popular free zones for consultancy businesses

Some of the most popular free zones for consultancy businesses include:

• Dubai Multi Commodities Centre (DMCC): Known for its business-friendly environment and low fees.
• Dubai Internet City (DIC): Ideal for IT and technology consultants.
• Ras Al Khaimah Economic Zone (RAKEZ): Offering flexible office space and cost-effective packages for small businesses.
• International Free Zone Authority (IFZA): A great option for those in media, consulting, and creative industries.

Choosing the right free zone for your consultancy will depend on your business needs, budget, and the services you plan to offer.

FAQ

How long does it take to obtain a consultancy license in Dubai?

The timeframe usually ranges from a few weeks to a couple of months, depending on the emirate and the specific type of consultancy.

Is a physical office space necessary to get a consultancy license in Dubai?

For mainland setups, a physical office is generally required. However, many free zones provide cost-effective alternatives, such as flexi-desk options, that fulfill the licensing requirements.

Can I run a consultancy business from home in the UAE?

Some free zones permit home-based operations, but mainland setups usually require a physical office.

Do I need any special certifications to apply for a consultancy license?

Certain consultancies, such as in legal, financial, or healthcare fields, require additional certifications or approvals from relevant authorities.

Smooth consultancy business setup with Emirabiz

Starting a consultancy in the UAE offers many advantages, including low taxes, strategic location, and business growth opportunities. The process can be complex, but Emirabiz is here to simplify it. We provide expert guidance on business setup, licensing, and the best locations, ensuring your consultancy thrives in the UAE.

Contact us today to begin your journey!