Activities · Management and business consultancy
Set up a Management and business consultancy company in the UAE.
A management and business consultancy in the UAE requires a professional licence under ISIC 7020. You can set up in a free zone (lower cost, restricted mainland access) or on the mainland (direct government and local client billing, higher cost). The licence does not permit trading of goods. Degree attestation is often required. Corporate tax is 9% on profit above amount not yet confirmed, with free zone qualifying income rules creating uncertainty for consultants. VAT is 5% on UAE clients and 0% on international clients. Banking can be challenging with a virtual office; some free zones offer better banking support.
Professional licence (ISIC Division 70, code 7020), advisory only, no trading of goods rizmona.com
You need a mainland (DET) licence if you plan to contract directly with UAE government entities, bill mainland clients without a local agent, or require unlimited visa quotas. A free zone licence restricts direct mainland work and often requires a local service agent or permit. rizmona.com dubaiconsultant.com
Zones that fit the activity
Names as the researchers wrote them, with the catalogue entry where the zone publishes one. A price is a package price and may cover a different package than another zone.
| Zone | Why | Catalogue entry | Package price | Source |
|---|---|---|---|---|
| SPC Free Zone | Lowest published annual cost for a solo consultant, includes one visa and one consulting activity. | not published | not published | source |
| SHAMS | Low-cost media and consulting bundle, includes one visa. | not published | not published | source |
| Meydan Free Zone | Official starting price of amount not yet confirmed; 26+ banking partners for faster corporate account opening, ideal for client-facing consultants. | not published | not published | source |
| IFZA | Allows up to 5 consulting activities, good for multi-service consultants; includes one visa (up to 6 possible). | not published | not published | source |
| Dubai Silicon Oasis | Specialist IT/tech consulting focus, includes one visa. | not published | not published | source |
Approvals outside the free zone
Ministry of Education / Ministry of Foreign Affairs and International Cooperation (attestation of educational certificates)
Relevant regulatory body (e.g., Dubai Health Authority, Knowledge and Human Development Authority)
Corporate Tax: 0% on taxable income up to amount not yet confirmed; 9% on taxable income above amount not yet confirmed kpmg.com. For free zone entities, the 0% rate applies only to Qualifying Free Zone Persons with qualifying income. Advisory services sold to third-party clients are often considered non-qualifying, so most consultancy income is subject to 9% above the threshold dubaiconsultant.com. However, some interpretations suggest international consulting income may be qualifying if structured correctly uaefreezonefinder.com. VAT: 5% on supplies to UAE-based clients (if VAT-registered); 0% on services to clients outside the UAE (zero-rated). VAT registration mandatory when taxable turnover exceeds amount not yet confirmed. uaefreezonefinder.com
A virtual office can block a corporate bank account; some banks require a physical Ejari. The activity code on the licence must match the invoicing pattern to avoid queries. Meydan Free Zone has 26+ banking partners, offering a faster route to a corporate account. Banking approval is at the bank's discretion and timelines are indicative. rizmona.com uaefreezonefinder.com
Mistakes that cost a resubmission
- Registering a commercial (trading) licence instead of a professional licence, consultancy is advisory only and cannot trade goods. source
- Not attesting educational degrees, which is often required for professional licence approval. source
- Assuming all free zone income is automatically 0% corporate tax, most consultancy income is non-qualifying and taxed at 9% above the threshold. source
- Using a virtual office without confirming the bank's acceptance, leading to rejection of the corporate account application. source
- Choosing an activity code that does not match the actual services invoiced, causing bank compliance issues. source
Questions founders ask
Yes, but you typically need to appoint a local service agent or obtain a permit from the free zone, and the income may be treated as non-qualifying for the 0% corporate tax rate. Direct unrestricted billing requires a mainland licence. rizmona.com uaqftz.gov.ae
For a mainland licence, a registered address with a tenancy contract (Ejari) is mandatory. Free zones often allow flexi-desk or shared desk packages, which are cheaper but may affect banking. rizmona.com dubaiconsultant.com
The standard rate is 9% on taxable profit above amount not yet confirmed. A 0% rate may apply if the entity is a Qualifying Free Zone Person earning qualifying income, but advisory services to third parties are generally non-qualifying. International consulting income might be structured as qualifying, but professional advice is essential. dubaiconsultant.com uaefreezonefinder.com
Free zone packages start from around amount not yet confirmed (SPC) to amount not yet confirmed (Meydan) per year, including one visa. Mainland solo setups typically cost amount not yet confirmed in the first year when including office, approvals, and visa. Government licence fees alone are roughly amount not yet confirmed. rizmona.com uaefreezonefinder.com meydanfz.ae
What the research does not settle
- Official government fee for a DET-issued professional consultancy licence not found; only agent estimates (amount not yet confirmed) are available.
- Exact activity names in free zone catalogues (e.g., SPC, SHAMS, IFZA) are not provided in the sources; only generic 'consulting activity' is mentioned.
- No official price list from SPC, SHAMS, IFZA, or DSO websites; costs are from an agent comparison site and may not reflect current official fees.
- The tax treatment of international consulting income as qualifying free zone income is ambiguous; sources conflict, and definitive guidance from the Federal Tax Authority is not cited.