





Business Insights

Manula Ranasinghe
Dec 23, 2025
How to Start a Consultancy Business in Dubai, and Get Licensed?
How to Start a Consultancy Business in Dubai, and Get Licensed?
Table of Content
Table of Content
Table of Content
Topic Summary
Topic Summary
Conduct Market Research and Define Your Niche
Analyze the GCC consultancy market trends and identify high-demand sectors such as management, IT, HR, finance, sustainability, and digital transformation. Define your consultancy’s specialization to target the appropriate client base and position your services competitively.
Choose the Appropriate Business Structure
Decide on the legal form of your consultancy, such as a Limited Liability Company (LLC), Sole Establishment, or Free Zone Company. Each structure has specific regulatory requirements and ownership rules which impact licensing and operation.
Select a Suitable Location and Licensing Authority
Determine whether to establish your consultancy in a Dubai Free Zone or on the mainland. Free Zones offer benefits like 100% foreign ownership and simplified licensing, whereas mainland companies have wider market access but may require a local sponsor. Apply for your business license through the Dubai Department of Economic Development (DED) or the relevant Free Zone Authority.
Prepare and Submit Required Documentation
Compile essential documents including your business plan, passport copies, proof of qualifications, and a tenancy contract for your office space. Submit these along with the license application to the appropriate authority, ensuring compliance with all regulatory standards.
Obtain Approvals and Complete the Licensing Process
After document submission, await approvals from government bodies such as the DED, Dubai Municipality, and other relevant departments. Upon approval, pay the license fees, and receive your commercial license, allowing you to legally operate your consultancy business in Dubai.
The consultancy market in the Gulf Cooperation Council (GCC) region is expanding rapidly. According to a Gulf Business report, the GCC’s consultancy market had 13.2 per cent growth in 2023, crossing the USD 5 billion mark for the first time. With consulting revenues in the GCC crossing USD 5 billion and demand increasing across management, IT, HR, finance, sustainability, and digital transformation, now is the right time to enter the consultancy sector.
If you are planning a business setup in Dubai, consultancy is one of the most flexible and high-growth models you can choose from. In this blog, we will discuss in detail how to set up your consultancy business in Dubai.
What is a Consultancy Business in Dubai?
Consultancy is the practice of providing professional advice and expert solutions to organisations or individuals in exchange for a fee. A consultant, by principle, can service any sector.
However, the term consultancy has been synonymous with “business advisory,” where consultants help companies improve operations, solve problems, analyse trends, plan growth, and optimise performance.
How to Start a Consultancy Business in Dubai
Here’s a closer look at how to start a consultancy business in Dubai:
1. Select Your Consultancy Business Activities
When applying for a consultancy license in Dubai, the first step is to choose the exact consulting services your firm will offer. You can choose from management, technology, financial, marketing, branding, and human resource consultancy. Choosing the correct consultancy activities is crucial for:
Ensuring full compliance with UAE business setup regulations
Avoiding delays in third-party or government approvals
At Dubai South Business Hub Free Zone, we offer over 3,500 business activities.
2. Choose Between Mainland or Free Zone Setup
Once you have chosen the business activity for your business, the next step is to decide between a mainland and a free zone.
Mainland Consultancy Setup is Ideal for companies that:
Serve clients directly across the UAE market
Participate in government tenders
Operate with no geographical limitations
However, to start a mainland business consultancy, you will need Ejari-registered office space, which might increase your business setup cost in Dubai.
Meanwhile, Free Zone Consultancy Setup is Ideal for:
Consultants looking for a streamlined, affordable, and flexible business environment
Individuals looking for lower setup costs and fast licensing
1. Apply for Your Business License
Once you have identified the type of consultancy service and chosen your jurisdiction, the next step is to apply for your business license. For companies registered in the mainland, you will have to apply for a business license from the Dubai Department of Economy and Tourism (DET). For free zone companies, free zone authorities such as Dubai South Business Hub Free Zone can issue trade business licenses within the samea day.
Reserve Your Trade Name
Every consultancy business in Dubai must register a unique and compliant company name. The name must not:
Be a duplicate of the existing business name
Include religious, offensive, or political terms
Additionally, the trade name should reflect your business identity. You can use our Company Name Check tool to verify if your preferred trade name is available and compliant with the UAE company name rules and regulations.
Secure Office Space
A registered office address is mandatory for companies operating in the mainland. Meanwhile, companies operating in free zones can choose between flexible desks, virtual offices, or dedicated offices. At Dubai South Business Hub Free Zone, a fFlexi-desk workspace is included with the business license, allowing companies to meet office requirements without committing to a full physical office.
Open a Corporate Bank Account
A corporate bank account is essential for any consultancy firm in Dubai. That’s because:
Your business is a separate legal entity
UAE regulations require business transactions to be kept separate from personal funds
Corporate accounts are mandatory for Corporate Tax registration
It ensures clean financial records for compliance and audits
To open an account, you will typically need:
Business license
Passport and visa copies
Emirates ID (if applicable)
Company documents
Register for Corporate Tax
All UAE businesses must register for corporate tax. Taxation is based on annual taxable profits. Therefore, if your yearly profit is below AED 375,000, you don’t have to pay corporate tax. On the other hand, if your annual profit exceeds AED 375,000, you will have to pay a 9% corporate tax.
Moreover, certain income remains exempt, such as:
Dividend income from qualifying shareholdings
Capital gains
Profits from approved group restructuring
Income from intra-group transactions
These provisions ensure that only core business profits are taxed, while personal and investment income remain unaffected.
Final Thoughts
Consultancy is one of the most lucrative sectors in the UAE — . It is powered by digital transformation, rapid economic diversification, and the increasing need for specialised expertise across industries. With the proper license, you can establish a profitable consultancy business quickly.
For consultants seeking a fast, cost-effective, and flexible business setup in Dubai, the Dubai South Business Hub Free Zone offers one of the best environments for launching and scaling. If you are in the UAE, you can call us at 800-DSHUB (37482). You can also email your query to grow@dubaisouthbh.com or schedule a free consultation through our website for help with company setup in Dubai.
Frequently Asked Questions (FAQs)
Is consultancy a profitable business in Dubai?
Yes. Consultancy is one of the fastest-growing sectors in the UAE due to the country’s diversified economy and increasing demand for specialised expertise. Industries such as IT, finance, management, HR, marketing, sustainability, and digital transformation all rely heavily on consultants.
How much does it cost to start a consultancy business in Dubai?
The cost depends on your jurisdiction, visa needs, and activity type. Free zones generally offer the most cost-effective solutions. At Dubai South Business Hub Free Zone, business licenses start at AED 12,500 and include a fFlexi-desk workspace, and up to five business activities.
Can foreigners start a consultancy business in Dubai?
Absolutely. Foreign investors can own 100% of their consultancy business, especially in free zones. Dubai South Business Hub Free Zone offers a fully digital setup that allows international entrepreneurs to open a company remotely.
How long does it take to obtain a consultancy license in Dubai?
In a free zone, the process is speedy. At Dubai South Business Hub Free Zone, licenses are often issued within 1 working day, provided the documents are complete, and no external approvals are required.
Start Your Business with Dubai South Business Hub Free Zone
Start Your Business with Dubai South Business Hub Free Zone
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