How to Start a Consulting Business in Dubai?

Dubai stands as a global beacon for business and innovation, offering a strategic location, world-class infrastructure, and a government that actively supports entrepreneurship. This makes it an ideal destination for consultants across various industries, including management, IT, finance, and marketing. Dubai’s Economic Agenda ‘D33’ aims to double the size of its economy by 2033, creating a massive demand for expert advice across all sectors.

This guide provides a clear path for professionals who want to start a consulting business in Dubai. We will break down the entire process into simple, actionable steps. From choosing the right license to understanding the costs, this article covers all the essential information for a successful company formation in UAE.

A consulting license is a professional license that permits an individual or a company to offer expert advice to clients. The UAE government issues this license for specific fields of expertise. This official permit legitimizes the business and allows it to operate legally within the country. Entrepreneurs must choose a jurisdiction before applying for this license.

The two primary options are the Mainland and the Free Zone.

• Mainland: A business setup in Dubai Mainland allows a consultant to work with any client across the UAE, including government bodies. The Department of Economy and Tourism (DET) governs these licenses.
• Free Zone: A business setup in the Dubai Free Zone offers benefits like 100% foreign ownership and tax exemptions. However, business activities are often restricted to the free zone and international clients.

Consultants must select a specific activity code that matches their expertise. Common codes include:

• Management Consultancy
• IT Consultancy
• Human Resources Consultancy
• Marketing Consultancy
• Engineering Consultancy

The choice of legal structure impacts ownership, liability, and operational scope. Dubai offers several options tailored to different business needs.

• Sole Proprietorship: An individual owns and runs the entire business. A Sole Proprietorship in UAE is a simple structure for a single consultant. The owner holds 100% of the profits and has unlimited liability for business debts.
• Civil Company: This structure is ideal for two or more professional partners. It allows 100% ownership for expatriate partners. A UAE national must be appointed as a Local Service Agent (LSA), but the LSA holds no shares.
• Limited Liability Company (LLC): An LLC formation can have a broader scope of activities, including some commercial ones alongside consulting. It provides limited liability, which protects the personal assets of the owners.
• Free Zone Establishment (FZE) or Company (FZCO): In a free zone, a single shareholder can form an FZE. Two or more shareholders can form an FZCO. Both offer limited liability and 100% foreign ownership.

Dubai offers several options tailored to different business needs. Get a detailed walkthrough here: types of company formation in Dubai

Following a clear process simplifies the journey of launching a consultancy. This roadmap outlines how to start a consulting business in Dubai:

1. Select Business Activity and Legal Structure: First, define the exact consulting services the business will offer. Based on this activity and the number of partners, choose the most suitable legal structure (e.g., Civil Company for partners, Sole Proprietorship for an individual).
2. Reserve the Trade Name and Get Initial Approval: Choose a unique trade name that complies with UAE regulations. Submit it to the DED or the relevant Free Zone Authority for approval. At the same time, apply for initial approval, which confirms the government has no objection to the business.
3. Draft and Notarize MOA (if applicable): For structures with multiple partners, like a Civil Company or LLC, a Memorandum of Association (MOA) is necessary. This document outlines the partnership details. A public notary in the UAE must attest this legal document.
4. Lease Office Space or Flexi-Desk: A physical address is a legal requirement. Mainland companies need a physical office with an Ejari (tenancy registration). Free zones offer more flexible options, including co-working spaces, flexi-desks, or virtual offices.  
5. Submit Final Documents and Pay License Fees: Gather all required documents, including the initial approval, MOA, and tenancy contract. Submit the complete file to the relevant authority and pay the final license fees to receive the consulting license.

The choice between a mainland and a free zone is one of the most critical decisions. It directly affects where and how the consultancy can operate.

• Mainland (Department of Economic Development – DED)

A mainland license offers the ultimate flexibility. It allows a business to trade directly with the entire UAE market and bid on government contracts. This is the best choice for consultants who plan to work with a wide range of local clients.

A mainland license allows a business to trade directly with the entire UAE market and bid on government contracts. This is ideal for consultants planning to work with local clients. Learn more about business setup in Dubai Mainland and licensing costs in our Dubai Mainland Company Formation Cost guide.

• Free Zones

Dubai has over 30 free zones, many of which are dedicated to specific industries. These zones provide a supportive ecosystem for startups and established firms. Popular options for consultants include:

• Dubai Multi Commodities Centre (DMCC): Ideal for consulting businesses in trade and professional services. DMCC offers 100% ownership and flexible office options. For professional setup support, check our DMCC Company Formation services
• Dubai Internet City (DIC): Ideal for IT and tech consultants.
• Dubai Knowledge Park (DKP): Suited for educational and HR consultants.

Comparison Table: Mainland vs Free Zone for Consulting Businesses in Dubai

Choosing the right jurisdiction is crucial as it impacts ownership, operations, costs, and flexibility.

Having the correct paperwork is essential for a smooth setup. The basic requirements to start a consulting business in Dubai include:

• Passport copies of all shareholders and managers.
• UAE entry stamp or visa page for non-resident founders.
• Proof of professional qualifications (e.g., attested university degree) for certain activities.
• A comprehensive business plan (required by some free zones).
• A tenancy contract (Ejari for mainland) for the office space.
• A No Objection Certificate (NOC) from a current sponsor if the founder is a UAE resident on an employment visa.

The cost of starting a consulting business in Dubai varies based on the jurisdiction, office type, and visa requirements. Here are the estimated costs for 2025.

• License Fees:
  • Mainland: The license fee ranges from AED 10,000 to AED 20,000+.
  • Free Zone: Fees are generally lower, ranging from AED 5,750 to AED 15,000.
• Office Rent:
  • Costs vary widely from AED 8,000 for a flexi-desk in a free zone to AED 50,000+ for a physical office on the mainland.
• Visa Costs:
  • Mainland: An investor or employee visa costs between AED 3,500 and AED 5,000.
  • Free Zone: Visa costs are slightly less, around AED 3,000 to AED 4,000.

After the company formation, founders can apply for an investor visa, which allows them to live and work in the UAE.

• Investor Visa: As the owner of the company, an individual is eligible for a UAE residency visa. This visa allows the holder to sponsor their family members as well.
• Employee Visas: The number of employee visas a company can obtain depends on the size of its office space. The general rule is one visa per 80-100 square feet. Free zones often have specific visa packages linked to the chosen office type.
• Staffing: Consultants can hire full-time staff or outsource tasks like accounting and marketing. Outsourcing can be a cost-effective strategy for new businesses.

Operating a business in Dubai requires adherence to local laws:

• Professional Indemnity Insurance: While not always mandatory, this insurance is highly recommended for consultants. It protects the business against claims of negligence or failure to deliver services.
• VAT Registration: If the company’s annual revenue exceeds AED 375,000, it must register for Value Added Tax (VAT) with the Federal Tax Authority.
• Economic Substance Regulations (ESR): Consulting businesses offering strategic or management advisory services may need to comply with ESR reporting requirements, ensuring your business is genuinely operating in the UAE.
• Advertising Rules: The UAE has strict regulations on advertising. All marketing materials must be truthful and respectful of local culture and values.
• Professional License Structure: Most consulting firms in the mainland operate under a professional license. While you can have 100% foreign ownership, you may need to appoint a Local Service Agent (Emirati) for representation with government bodies.

Read more about Dubai taxation in Is Dubai Really Tax-Free.

Once the business is set up, the focus shifts to growth.

• Build a Digital Presence: A professional website and active social media profiles are essential for reaching clients in Dubai’s tech-savvy market.
• Network Actively: Attend industry events and join business councils. Dubai’s business hubs are full of networking opportunities to build connections.
• Leverage Free Zone Support: Many free zones offer business support services, including networking events and startup incubators, to help new companies grow.

Dubai offers a fertile ground for consulting businesses to flourish. Its forward-thinking policies, strategic location, and dynamic economy create unparalleled opportunities. By choosing the right legal structure, understanding the costs, and following the official setup process, entrepreneurs can successfully establish their presence. 

With careful planning, anyone can start a consulting business in Dubai and tap into this lucrative market.