While the consulting sector slows down in other parts of the world, the GCC saw a 13.2% growth in 2023, with a 15% increase predicted for 2024. The sector continues to experience growth, making it a viable industry to start a business in the UAE. If you want to get a consultancy license in Dubai or anywhere in the UAE, this is how to do it.
What is a Consultancy License?
A consultancy license is a type of trade license that allows individuals to start a consultancy business in the UAE. There are three main types of trade licenses in UAE
- Professional
- Commercial
- Industrial
The consultancy license is a type of professional license as it focuses on providing specialized services.
Types of Consultancy Licenses
There are multiple niches you can get a consultancy license in:
- Finance: You can offer services around financial planning, investment management, reporting and analysis, and risk management.
- Business & Management: You can offer services around streamlining operations and increasing efficiency. These types of consultants are generally hired to solve a specific problem in a company.
- Legal: You can offer services around risk & compliance, specialized legal advisory, document review, and contract assistance.
- Marketing: Marketing consultants can help a business create strategies, set up campaigns, and doing market research.
- Artificial intelligence: AI consultants can help businesses identify areas for AI integration to help them automate certain processes and increase their efficiency.
- Banking: You can get a consultancy license as a banking consultant and offer services to banks in compliance, risk assessment, and financial advisory. Banking consultants can also work with the bank’s clients.
- IT: As an IT consultant, you can provide services that help organizations better manage their technology systems.
- Human Resources: HR consultants can help with recruitment strategies, bettering employee well-being, and provide counsel on any HR-related issues in a company.
Benefits of a Consultancy License in UAE
Getting a consultancy license in UAE offers a lot of benefits for entrepreneurs:
- Business-friendly environment: The UAE does not have income taxes or capital gains tax. The government also offers incentives for new businesses. There is also only a 9% corporate tax for turnovers over AED 375,000.
- Complete foreign ownership: Most mainland businesses allow full foreign ownership. Certain business activities may still require a sponsor. Free zones offer 100% foreign ownership.
- Dubai free zones can now trade with mainland: If you get a consultancy license in Dubai, especially in a free zone, you can now trade with the mainland as long as you have a permit from the Dubai Department of Economy and Tourism.
- Large client base: There are thousands of new companies being set up in the country every year. As the market gets more competitive, more businesses will hire consultants to help them stand out and streamline their operations.
Streamline Your Business Setup Process
Steps to Get a Consultancy License in UAE
Knowing how to register a consultancy in UAE involves choosing a business jurisdiction, selecting a legal structure, and applying for a trade license with the required documents.
1. Choose a Jurisdiction
Company registration starts with deciding whether you want a consultancy license in a free zone or on the mainland. There are over 40 free zones in the UAE including Meydan Free Zone, RAKEZ, and SHAMS (Sharjah Media City).
These are the following advantages of setting up in a free zone:
- Easier and quicker licensing process
- Lower license cost
- 100% foreign ownership
Mainland offers the following advantages for business setup in UAE:
- Easy to expand operations
- 100% foreign ownership
- Bid for government projects
2. Pick a Legal Structure
The type of legal structure you choose will depend on the number of people you are going into business with. If it is a solo consultancy, you can set up as a sole establishment. If you want liability protection, you can choose an LLC. Partnerships are also a viable option.
For free zones, you can choose between Free Zone Establishments, Free Zone Companies, or branch companies.
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3. Apply for a Trade License
Once you finalize the jurisdiction and the legal structure, you should register a unique trade name for your business and apply for initial approval. Initial approval involves submitting some preliminary documents to the relevant free zone authority or the Department of Economic Development (DED).
After you obtain initial approval, you can apply for a trade license. The trade license application will take around 1-2 weeks in a free zone, and 1-3 months for the mainland. Working with a business setup consultant in UAE will make the process easier as they can make sure that you submit all the documents you need to avoid delays.
4. Visa Processing
After your trade license has been issued, the relevant authority will start processing your visa. A residence visa in the UAE will allow you to legally work in the country and sponsor your dependents. This visa is renewable and is generally issued for two years.
5. Open a Bank Account
Opening a bank account for your business is usually the last step of setting up a business in the country. A&A Associate’s consultants have helped multiple clients pick the best bank account for their business and handled the entire application process.
Documents to Get a Consultancy License in UAE & Dubai
This is a list of documents you will need to submit to get a consultancy license in Dubai and UAE:
- Visa and passport copy
- Emirates ID (for residents)
- Passport-size photo
- Business plan (if necessary)
- Memorandum of Association (if necessary)
- Trade name reservation
- Initial approval certificate
- License application form
What is the Consultancy License Cost in UAE?
The consultancy license cost in Dubai will depend on the type of legal structure and jurisdiction. Generally, a consultancy license starts around AED 5,700 in a free zone and AED 15,000 on the mainland. You can use our cost calculator to get an exact estimate of starting a consulting business in the UAE.
Get a Consultancy License in UAE With A&A Associate
A&A Associate is the UAE’s largest business setup advisory. Our expert business setup consultants can help you get a freezone license or a mainland license to start your consultancy business anywhere in the UAE.
We can help you choose the right jurisdiction, apply for a trade license, and open a corporate bank account. By handling the entire process, we allow you to solely focus on getting your business off the ground.
