MCP

Activities · Education, training and coaching

Set up a Education, training and coaching company in the UAE.

To run an education, training or coaching business in the UAE, particularly in Dubai, you typically need a trade licence and, if offering structured courses to the public, approval from the Knowledge and Human Development Authority (KHDA). Free zones offer cost‑effective packages but a mainland presence is often required for public‑facing training. VAT at 5% applies to course fees, and corporate tax is 9% on profits above amount not yet confirmed. Banking is feasible with proper documentation.

Licence needed

Trade licence (from DED for mainland or a free zone authority) plus a KHDA Educational Services Permit for any training institute offering courses to the public.

When the mainland is needed

When offering structured courses to the public from physical premises in Dubai, a mainland trade licence and KHDA permit are required. A free zone licence alone is insufficient unless the business operates exclusively B2B with no individual enrolments.

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.

ZoneWhyCatalogue entryPackage priceSource
IFZA Low‑cost package including one residence visa; widely accepted activity list for training and consultancy. not published not published source
SHAMS Very low cost for freelancers and solo operators. not published not published source
RAKEZ Strong choice for SMEs and small teams. not published not published source
Meydan Free Zone Dubai‑based; popular with management and training consultancies. not published not published source

Approvals outside the free zone

KHDA Educational Services Permit

Knowledge and Human Development Authority (KHDA)

source

Approval from relevant authority for specialised courses (e.g., Dubai Health Authority for medical courses)

Various (e.g., Dubai Health Authority)

source

Tax and VAT

VAT: 5% standard rate on course fees (not zero‑rated unless the institution is a government‑owned or majority government‑funded qualifying educational institution). Corporate tax: 9% on taxable income above amount not yet confirmed; Small Business Relief available if revenue ≤ amount not yet confirmed. uaefreezonefinder.com, businessdubai.ae

Banking

Mainland training institutes can open corporate bank accounts with the trade licence and KHDA permit. Full KYC, an in‑person meeting, and a payment gateway are typical. Free zone companies may face additional scrutiny. businessdubai.ae

Mistakes that cost a resubmission

  • Assuming a free zone licence alone permits public training without KHDA approval. source
  • Confusing KHDA approval with VAT zero‑rating. source
  • Starting operations before obtaining the KHDA permit. source
  • Believing B2B corporate training is exempt from VAT. source

Questions founders ask

Do I need KHDA approval for a training centre in Dubai?

Yes, if you offer structured courses to the public, a KHDA Educational Services Permit is mandatory.

Can I operate from a free zone without KHDA?

Only if your training is exclusively B2B (corporate clients) with no individual enrolments; otherwise, you need KHDA and likely a mainland presence.

Is training VAT‑exempt?

No, commercial training is standard‑rated at 5% VAT.

What are the typical first‑year costs?

KHDA permit from amount not yet confirmed (1‑2 activities), trade licence from amount not yet confirmed, plus visa, rent, and fit‑out costs; total estimated amount not yet confirmed.

What the research does not settle

  • Official free zone authority fee schedules not available; prices are agent package quotes from uaefreezonefinder.com.
  • Exact activity names in free zone catalogues not provided.
  • Official DED mainland trade licence cost not sourced.
  • Detailed process for free zone companies to obtain KHDA approval (e.g., whether a mainland branch is needed) not fully clarified.

Sources

UAE Education & Training License Guide 2026: School, Training Centre & EdTech Setup UAE Free Zone Finderhttps://uaefreezonefinder.com/uae-education-training-license-guide-2026/read 2026-10-20
KHDA - Issuing an Educational Services Permit for a Training Institutehttps://web.khda.gov.ae/en/Services/Training-Institute-Permit-Services/Issuing-an-Educational-Services-Permit-for-a-Trainread 2026-10-20