To start a consulting firm in Dubai, you need a consultancy licence: either a professional licence from the Department of Economy and Tourism (DET) on the mainland, or a service or consultancy licence from a free zone. Published guides put the first-year cost of a consultancy licence at roughly AED 15,000 to AED 30,000 all in, depending on the jurisdiction, the office and how many visas you need. The right choice depends mostly on who you will be advising.
This guide covers mainland versus free zone for consultants, the activities to choose, the costs, the steps, tax and the mistakes that cost new consulting firms time. It reflects published guidance as of November 2026. Fees change, so confirm current figures before you commit.
Mainland or Free Zone Consultancy Licence?
| Mainland (DET professional licence) | Free zone consultancy licence | |
|---|---|---|
| Who you can serve | Clients anywhere in the UAE, including government tenders | International clients and free zone companies; mainland work has limits |
| Office | A registered office with Ejari is required | Flexi desks and shared offices are common and cheaper |
| Ownership | Professional activities have traditionally allowed full foreign ownership, sometimes with a local service agent; check your activity | Full foreign ownership |
| Typical first-year cost (published guides) | About AED 15,000 to AED 22,000 | About AED 10,000 to AED 30,000, depending on zone and package |
The simple rule: if you mainly advise UAE mainland companies or government bodies, a mainland licence usually makes more sense. If you advise international clients and want the lowest fixed costs, a free zone is often enough. Our guide to free zone versus mainland goes deeper.
Choosing the Right Consulting Activities
Your licence lists specific activities, and you may only offer services those activities cover. Common choices include:
- Management consultancy for strategy, operations and organisational advice
- IT and technology consultancy, including digital transformation and AI advisory
- Marketing and branding consultancy
- Human resources consultancy, separate from recruitment, which usually needs its own approvals
- Engineering consultancy, which often needs qualified, registered engineers
Regulated advice is different. Legal, financial, investment and medical consulting usually need approvals from the relevant regulator, so check before you choose them. For how licence types differ, see trading versus professional licences in the UAE.
How Much a Consultancy Licence Costs in Dubai
| Cost item | What to expect |
|---|---|
| Licence and registration | The main fee; varies by jurisdiction and number of activities |
| Office | Ejari-registered office on the mainland; flexi desk options in free zones |
| Visas | Investor or employee visas, plus medical and Emirates ID, for each person |
| Local service agent | Only where your mainland activity requires one |
| Professional indemnity insurance | Often expected by clients, and required for some activities |
| Renewal from year two | Published guides quote roughly AED 8,000 to AED 20,000 a year |
The sources we reviewed disagree on several of these figures, so treat them as planning ranges. For a full breakdown by jurisdiction, see how much it costs to set up a company in Dubai.
How to Start a Consulting Firm in Dubai: Step by Step
- Decide mainland or free zone based on where the people you advise are based.
- Choose your activities to match the services you will actually sell.
- Reserve the trade name and get initial approval.
- Arrange the office: an Ejari-registered office on the mainland, or a free zone desk.
- Sign the company documents and pay the licence fees.
- Apply for visas for yourself and any staff.
- Open a corporate bank account. Consultancies with clear clients and contracts usually find this easier. See help with UAE corporate bank accounts.
- Register for corporate tax within the deadline, and for VAT when you pass the threshold.
Free zone licences can be issued within days once documents are ready. Mainland setups usually take a few weeks, mainly because of the office and approvals.
Tax for Consulting Firms
- Corporate tax: 9% on taxable profit above AED 375,000. Every company must register, usually within three months of its licence. See the corporate tax registration deadline.
- VAT: registration is mandatory once taxable supplies pass AED 375,000 in 12 months. Services to clients outside the UAE may be zero-rated if the conditions are met. See our VAT registration guide.
- Free zone 0% rate: available only to qualifying free zone persons on qualifying income, which many consulting firms serving mainland clients will not meet. Take advice before relying on it.
Can You Consult Without a Licence?
No. Invoicing UAE companies for consulting work requires a licence that covers the activity, whether you are a firm or a sole consultant. If you are not ready for a company, a freelance permit with a consulting activity can be a cheaper first step, but it limits hiring and partners. Our guide to the cheapest freelance visa in the UAE compares the options.
Mistakes New Consulting Firms Make
- Choosing a free zone, then winning mainland clients the licence does not comfortably serve.
- Picking vague activities that don't match what is on your invoices, which banks notice.
- Offering regulated advice, such as financial or legal, without the approval it needs.
- Ignoring VAT until a large contract pushes you over the threshold.
- Working without a written engagement letter and professional indemnity insurance.
Set Up Your Consultancy With Us
We help consultants choose the jurisdiction and activities that fit their clients, set up the company, open the bank account and handle corporate tax and VAT. See our company formation services or contact SMS Consulting.
Sources
Costs and requirements from published guides by Takween Advisory, DIAC and Business Dubai, which differ on several figures and on ownership rules. Official licensing information from the Department of Economy and Tourism. This guide is general information, not legal or tax advice.
Frequently Asked Questions
Published guides put the first-year cost at roughly AED 15,000 to AED 30,000 all in, depending on mainland or free zone, the office and visas. Renewals are commonly quoted at about AED 8,000 to AED 20,000 a year.
If most clients are UAE mainland companies or government bodies, mainland usually fits better. For international clients and the lowest fixed costs, a free zone is often enough.
Free zone companies allow full foreign ownership. On the mainland, professional activities have traditionally allowed full foreign ownership, sometimes with a local service agent. Check the current rule for your activity.
Common options are management, IT, marketing, HR and engineering consultancy. Legal, financial, investment and medical advice usually need regulator approval.
Free zone licences can be issued within days once documents are ready. Mainland setups usually take a few weeks.
Yes, at 9% on taxable profit above AED 375,000. Every company must register for corporate tax, whatever its profit.
Once taxable supplies pass AED 375,000 in 12 months, VAT registration is mandatory. Services to overseas clients may be zero-rated if conditions are met.