Business Setup UAE: How to Set Up a Consultancy Company in the UAE

Business setup in UAE offers immense opportunities for entrepreneurs looking to offer consultancy services in a globally connected and tax-friendly environment. If you’re an aspiring business owner aiming to establish a consultancy company in the UAE, understanding the process, legal requirements, and available options is crucial to ensuring long-term success.

Why Start a Consultancy Company in the UAE?

The UAE is strategically located between Europe, Asia, and Africa, making it a prime destination for consultancy firms. Here’s why starting a consultancy company in the UAE is an appealing option:

• 100% foreign ownership allowed in many free zones.
• Tax advantages, including 0% corporate and income tax in several jurisdictions.
• Access to a skilled workforce and advanced infrastructure.
• Business-friendly regulations and supportive government policies.

These benefits make business setup in UAE not only profitable but also efficient for consultants across industries.

Key Steps for Business Setup in UAE

Setting up a consultancy company in the UAE requires careful planning and following a structured process. Below are the essential steps:

1. Define Your Consultancy Business Activity

The first step in launching your consultancy firm is choosing the appropriate business activity. The UAE government mandates that the activity be clearly stated, whether it’s related to management consultancy, HR, IT, or marketing.

2. Decide Between Mainland or Free Zone

In the UAE, you can choose to set up your company in the mainland or Free Zone. Each has its own pros and cons:

• Mainland: Offers more freedom to operate across the UAE but may involve more regulatory steps.
• Free Zone: Ideal for businesses that don’t require a physical presence or want full foreign ownership.

For more details on Free Zones, read our resource on Top Business Hubs & Best Places to Establish a Company in Dubai.

3. Choose a Trade Name

Choose a unique trade name that reflects your business type and does not violate any trademarks or UAE naming conventions. The name must then be approved by the Department of Economic Development (DED) or relevant Free Zone authority.

4. Apply for a Consultancy License

A consultancy license is mandatory and must be issued by the DED for mainland businesses or the relevant Free Zone authority. You will likely need to:

• Submit a completed license application form
• Provide passport copies of shareholders and directors
• Present your business plan
• Lease or own office space, based on the legal requirements

5. Draft the Memorandum of Association (MOA)

This legal document outlines the relationship between the business partners and defines the company’s activities. In mainland setups, the MOA is notarized through UAE authorities.

6. Secure Office Space

Leasing an office is mandatory in many jurisdictions. However, in some Free Zones, virtual office solutions and flexi-desks are permissible. The office is part of your application process and must meet local authority standards.

7. Submit Documents and Pay Fees

Submit all required documents along with the license fee. Once reviewed and cleared by the respective authority, you’ll receive your business license. The processing time is generally between 5–10 working days.

8. Open a Corporate Bank Account

After obtaining your license, open a business bank account with a UAE-based bank. Requirements vary but typically include:

• Business license
• MOA
• Passport copies
• Resident visa

9. Apply for Visas

You can apply for your own visa as the owner and also sponsor visas for your employees. This process involves medical testing, Emirates ID registration, and visa stamping.

Documents Required for Consultancy Business Setup UAE

• Passport copies of all partners and stakeholders
• Proof of address
• Trade name reservation certificate
• Initial approval certificate
• Memorandum of Association (MOA)
• Lease agreement for office space

Costs of Starting a Consultancy Company in the UAE

The cost can vary based on jurisdiction, office size, and number of visas. On average:

• License fee: AED 10,000–25,000
• Visa cost per person: AED 3,000–5,000
• Office rent: AED 10,000–50,000 annually

For cost breakdowns, check out this detailed guide.

Ongoing Responsibilities

After setup, adhere to these mandatory requirements to stay compliant:

• Annual license renewal
• Bookkeeping and accounting
• Employee sponsorship compliance
• Audit reports for specific Free Zones

Read more on this topic in our guide to renewing a trade license in Dubai.

Benefits of Business Setup UAE for Consultants

Setting up a consultancy company in the UAE comes with numerous benefits:

• Strategic location: Gateway to Gulf, Asian, and European markets
• Tax savings: Keep more of your earnings
• Diverse client base: Access to multinational clients and contracts
• Modern amenities: Cutting-edge infrastructure and internet connectivity

Want to learn more about the advantages of various Free Zones in Dubai? Explore this guide.

Common Mistakes to Avoid

Starting a business in the UAE is straightforward, but new entrepreneurs often overlook key steps. Avoid these mistakes:

• Choosing the wrong jurisdiction for business activities
• Failing to renew licenses on time
• Not understanding local labor and visa laws

To avoid these pitfalls, work with licensed business setup consultants familiar with UAE regulations.

Helpful Resources

• UAE Government Portal – Official regulations and eServices
• Step-by-Step Guide to Opening a Company in Dubai

Conclusion

Starting a consultancy company in the UAE is a smart move for entrepreneurs seeking a tax-efficient, business-friendly environment with access to global markets. By following the approved legal steps, selecting the appropriate structure, and complying with ongoing regulations, you can establish a successful consultancy firm. Always seek expert guidance to make your business setup in UAE smooth and hassle-free.