Dubai continues to be a leading hub for consultancy businesses across industries—from management and marketing to IT and HR. Its vibrant business ecosystem, strategic global location, and streamlined regulatory framework make it an ideal location to launch a consulting firm.

However, to operate legally and efficiently, you must understand the licensing requirements, compliance procedures, and available jurisdiction options in 2025.

This guide covers everything entrepreneurs need to know to license a consulting firm in Dubai, whether you’re setting up in the Mainland, Free Zone, or Offshore.

1. Types of Consulting Licenses in Dubai

In Dubai, consulting licenses fall under professional licenses, which allow individuals and firms to offer services based on expertise. Popular consulting categories include:

• Management Consultancy

• IT Consultancy

• Marketing Consultancy

• HR & Recruitment Consultancy

• Financial Consultancy

Each category requires specific documentation and may fall under different government authorities depending on your setup location.

2. Mainland vs. Free Zone for Consultants

You can choose between two primary options for licensing:

Dubai Mainland (via DED)

• Allows you to operate anywhere in the UAE

• Requires a Local Service Agent (LSA)—no ownership transfer, but mandatory for professional licenses

• More flexibility for government contracts and local clients

• Office lease (Ejari) required

Free Zones (e.g., DMCC, DSO, IFZA)

• Faster setup with 100% foreign ownership

• Often no physical office required for solo consultants

• Limited to operating within the Free Zone or internationally (unless a dual license is obtained)

• Great for digital and remote consultants

3. Steps to License Your Consulting Firm

Step 1: Choose Activity and Legal Structure

• Choose your consulting activity as listed by DED or the Free Zone authority

• Decide whether to register as a sole proprietorship, civil company, or Free Zone FZE/FZCO

Step 2: Reserve Your Trade Name

Ensure your firm’s name complies with naming standards and reflects the type of consultancy you’re offering.

Step 3: Prepare Documents

Typically includes:

• Passport copies of shareholders

• Passport-size photos

• Visa/Emirates ID (if resident)

• Proof of address (for Free Zones)

• Qualification certificates (may be required depending on activity)

• NOC if you’re employed in the UAE

Step 4: Submit Application

Depending on jurisdiction, apply through DED (Mainland) or the Free Zone authority portal. Most Free Zones allow online document submission and digital signing.

Step 5: Office Setup or Flexi-Desk Lease

Choose from physical offices, co-working spaces, or Flexi-desks (especially popular in Free Zones like IFZA or SHAMS).

Step 6: Get License Issued

Upon approval, your consultancy license and incorporation documents will be issued electronically.

4. Additional Compliance Considerations in 2025

VAT Registration

If your consulting firm earns over AED 375,000/year, VAT registration with the Federal Tax Authority (FTA) is mandatory.

Corporate Tax

As of 2025, consultancy firms earning over the corporate tax threshold may be subject to 9% tax on net profits. However, Free Zones may offer exemptions for qualifying income.

Economic Substance Regulations (ESR)

Check if your consulting activity falls under ESR obligations, which may require annual reporting.

UBO Declaration

Submit Ultimate Beneficial Owner (UBO) details during licensing—this is a legal requirement for transparency.

5. Timeframe and Costs

• Timeframe: 3–7 business days (Free Zone), up to 10 days (Mainland)

• Costs:

  • Free Zone packages: from AED 8,000–15,000/year

  • Mainland licenses: from AED 12,000–20,000/year depending on office size and visa quota

6. Who Should Consider a Dubai Consulting License?

This model is ideal for:

• Independent consultants looking to serve global clients

• Boutique firms expanding into the UAE market

• Professionals transitioning from employment to freelancing

• Experts in digital marketing, management, HR, and finance

Final Thoughts

Licensing a consulting firm in Dubai is straightforward—but it requires clear understanding of your activity code, jurisdiction, and ongoing compliance in 2025. With the right structure and legal setup, Dubai offers you a trusted platform to scale your consultancy in the UAE and beyond.

Work with a licensed business consultant to ensure you meet all regulatory expectations—so you can focus on delivering value to your clients.

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