How to Get an IT Consultancy Services Business License in Dubai

Dubai's technology sector is expanding at pace, making it one of the most strategically attractive destinations in the world for IT consultancy businesses seeking a regulated, internationally connected base. This guide explains how to obtain a Business License for computer consultancy activities (Activity Code 6202) at Dubai South Business Hub Free Zone, covering what the licence includes, who it suits, setup costs, and the step-by-step process.

Key Stats: IT Consultancy at Dubai South Free Zone

• Activity Code: 6202 (Computer Consultancy and Computer Facilities Management Activities)

• Licence Type: Business Licence | Category: ICT

• Foreign Ownership: 100% permitted, no local sponsor required

• Typical Licence Issuance Timeline: 3 to 7 working days once documents are complete

• UAE Corporate Tax rate on qualifying free zone income: 0%

• Location Advantage: Adjacent to Al Maktoum International Airport and Expo City Dubai

Why Dubai Is a Strong Base for IT Consultancy

Dubai's ICT sector is a central pillar of the emirate's economic diversification strategy. The UAE's digital economy is targeted to contribute 20% of GDP within the coming decade, supported by government-backed initiatives including the UAE National AI Strategy 2031 and the Dubai Digital Economy Strategy. These programmes are generating sustained institutional and commercial demand for qualified IT advisory services.

Dubai South is particularly well-positioned for technology businesses. Located adjacent to Al Maktoum International Airport and Expo City Dubai, the free zone sits at the intersection of global logistics, aviation, and enterprise activity. This gives IT consultancy firms immediate access to a concentrated base of multinational clients operating across the aviation, logistics, and trade sectors.

Free zone registration at Dubai South permits 100% foreign ownership without the requirement for a local Emirati sponsor. Shareholders retain full rights to repatriate profits and capital, with no restrictions on currency transfer. The growing regional demand for managed IT, cloud advisory, and digital transformation consulting across the GCC makes a Dubai South base a logical entry point for international technology firms.

What the IT Consultancy Business Licence Covers

The Business Licence issued under Activity Code 6202 at Dubai South Business Hub Free Zone covers computer consultancy and computer facilities management activities, as classified under the International Standard Industrial Classification (ISIC) framework. This is an ICT category licence.

Permitted activities under this licence include IT strategy advisory, systems integration consulting, technology project management, IT infrastructure planning, and general computer consultancy services. Businesses may advise clients on hardware and software selection, design and implement technology roadmaps, and provide ongoing technology management guidance.

Activities that fall outside the scope of this licence, such as software development, data processing, or internet service provision, carry separate activity codes and may require distinct licences or supplementary approvals. If your business model spans multiple ICT activities, it is advisable to confirm the full activity list with Dubai South at the application stage to avoid compliance gaps.

Who This Licence Is Suited To

The Activity Code 6202 Business Licence is well-suited to a broad range of technology professionals and organisations, including:

• Independent IT consultants and boutique advisory firms entering the Gulf market for the first time

• International technology companies establishing a regional hub or representative office in the UAE

• Entrepreneurs offering specialised services such as cybersecurity strategy, ERP consulting, digital transformation advisory, or cloud migration planning

• IT project managers and technology directors seeking a compliant structure to operate on a contract or retainer basis across the GCC

Setup Costs and Licensing Requirements

Indicative costs at Dubai South Business Hub Free Zone include licence registration fees, which vary depending on the package selected and the number of visa allocations required. As a general guide, entry-level packages for a single-shareholder company with a flexi-desk facility and one visa allocation typically start from approximately AED 12,000 to AED 20,000 per year, inclusive of licence and facility fees. Costs are subject to change and should be confirmed directly with the free zone authority before committing.

Legal structure options include the Free Zone Establishment (FZE) for a single shareholder and the Free Zone Company (FZCO) for two or more shareholders. There is no mandatory minimum share capital requirement for most ICT activity licences at Dubai South, though this should be verified at the time of application.

Visa allocations are linked to the size of the facility taken. A flexi-desk arrangement typically supports one to two visas, while dedicated office space unlocks higher allocations. Each employment visa involves additional fees for medical testing, Emirates ID registration, and visa stamping.

Ongoing Compliance Considerations

Licence holders must renew their Business Licence annually and maintain a valid lease agreement throughout the licence period. The UAE Corporate Tax regime, which came into effect from June 2023, requires all businesses, including free zone entities, to register with the Federal Tax Authority. Free zone companies earning qualifying income may benefit from a 0% corporate tax rate, provided they meet the conditions set out under the Qualifying Free Zone Person rules. Economic Substance Regulations may also apply to ICT activities, requiring annual notification and, where relevant, a substance report. Professional tax advice is strongly recommended to ensure ongoing compliance.

Step-by-Step Process to Obtain Your Licence

The process for obtaining an IT consultancy Business Licence at Dubai South Business Hub Free Zone follows a clear sequence of steps:

• Step 1: Confirm that Activity Code 6202 covers your intended business activities and select the appropriate legal structure (FZE or FZCO) based on the number of shareholders.

• Step 2: Reserve a trade name through the Dubai South portal, ensuring it complies with UAE naming conventions. Submit the initial application form alongside the required supporting documents.

• Step 3: Receive initial approval from the free zone authority. Prepare and notarise the Memorandum of Association (MOA) and, where applicable, the Articles of Association (AOA).

• Step 4: Sign a lease agreement for your chosen facility, whether a flexi-desk, serviced office, or dedicated unit. The lease must be in place before the licence is issued.

• Step 5: Pay the applicable licence and registration fees. Collect your Business Licence. Apply for the establishment card and then proceed with employee and investor visa applications as required.

Key Documents Required

The standard document checklist for an IT consultancy licence application at Dubai South includes:

• Passport copies of all shareholders and directors

• Completed application forms provided by the free zone authority

• A business plan summary, which may be requested for certain activity types

• A no-objection letter (NOC) from a current employer if the applicant is a UAE resident employed under an existing visa

• Proof of residential address for shareholders, such as a utility bill or bank statement

Business Potential and Market Outlook for IT Consultancy in Dubai

The UAE's National AI Strategy and smart government agenda are creating a sustained pipeline of technology advisory work across both the public and private sectors. Digital transformation programmes, cloud adoption, and cybersecurity investment are accelerating across the GCC, with Dubai consistently ranked as the region's leading technology hub.

IT consultancy is a high-margin, low-overhead business model that scales efficiently within a free zone structure. Day rates for senior technology consultants in the UAE market typically range from USD 800 to USD 2,500 depending on specialisation and client profile, with project-based engagements often generating stronger margins than equivalent work in European markets.

Free zone licence holders are permitted to provide consultancy services to clients outside the UAE, effectively re-exporting advisory services to regional and international clients without restriction. This makes Dubai South an effective regional hub for firms serving clients across Saudi Arabia, Qatar, Kuwait, and beyond. The proximity to major logistics, aviation, and enterprise clients within the Dubai South ecosystem also creates direct commercial opportunity on the doorstep.

Frequently Asked Questions

How much does an IT consultancy business licence at Dubai South cost?

Indicative costs for an entry-level package, including the Business Licence, flexi-desk facility, and one visa allocation, typically start from approximately AED 12,000 to AED 20,000 per year. Additional costs apply for each employment or investor visa, covering medical testing, Emirates ID, and stamping fees. Fee schedules are reviewed periodically, so it is important to confirm current pricing directly with Dubai South Business Hub Free Zone before proceeding.

Can a foreign national own 100% of the company?

Yes. Dubai South Business Hub Free Zone permits 100% foreign ownership of companies registered within its jurisdiction. There is no requirement to appoint a local Emirati sponsor or partner. Shareholders retain full control of the business and are entitled to repatriate all profits and capital without restriction.

Are any special government approvals required for Activity Code 6202?

Computer consultancy activities under Activity Code 6202 are generally straightforward to licence and do not require mandatory approval from an external regulatory body. Unlike certain other ICT activities, such as telecommunications or financial technology services, standard IT advisory and consultancy work falls within the free zone authority's own approval remit. However, if your services touch on regulated sectors such as healthcare IT or financial systems, additional approvals from the relevant sector regulator may be required.

How long does it take to receive the licence?

Once all required documents have been submitted and verified, the Business Licence is typically issued within 3 to 7 working days. Delays can occur if documents require notarisation, if the trade name reservation requires revision, or if additional information is requested by the authority. Planning for a total setup timeline of two to three weeks from initial enquiry to licence in hand is a reasonable expectation.

What profit margins can IT consultancy businesses expect in Dubai?

IT consultancy is one of the higher-margin professional services categories. In the UAE market, senior consultants commonly charge day rates of USD 800 to USD 2,500, with project margins often exceeding 40% to 60% for boutique firms with low overhead structures. The free zone environment enhances net returns further, given the 0% corporate tax rate on qualifying income, no personal income tax, and the absence of VAT on most exported services. Margins will vary significantly based on specialisation, client base, and operational costs.

Can I provide consultancy services to clients outside the UAE?

Yes. Free zone licence holders are permitted to supply services to clients located outside the UAE, including across the GCC and internationally. Consultancy services delivered to overseas clients are effectively re-exported, and there are no restrictions on billing international clients or receiving payment in foreign currencies. This makes a Dubai South licence a practical structure for firms operating a regional or global client base from a single UAE entity.

Do I need a physical office or will a flexi-desk suffice?

For smaller operations, a flexi-desk arrangement at Dubai South Business Hub Free Zone is sufficient to satisfy the facility requirement for licence issuance. Flexi-desk packages provide access to shared workspace, a registered business address, and meeting room facilities. They typically support one to two visa allocations. If your business requires a larger team or dedicated workspace, serviced offices and fitted units are also available within the free zone, with visa allocations scaled accordingly.

Is UAE Corporate Tax applicable to my free zone IT consultancy company?

The UAE Corporate Tax law, effective from June 2023, applies to all businesses including free zone entities. However, companies that qualify as a Qualifying Free Zone Person and earn qualifying income may be subject to a 0% corporate tax rate on that income. To maintain qualifying status, a business must meet substance requirements, ensure its income is derived from qualifying activities, and not elect to be subject to the standard tax regime. All free zone entities are required to register with the Federal Tax Authority regardless of their tax position. Given the complexity of the qualifying rules, professional tax advice is strongly recommended.

Conclusion

Obtaining an IT consultancy Business Licence under Activity Code 6202 at Dubai South Business Hub Free Zone is a structured, accessible process that positions technology advisors at the centre of one of the region's fastest-growing digital economies, with full foreign ownership, a competitive cost base, and straightforward compliance requirements. The combination of Dubai's digital economy agenda, the strategic location of Dubai South, and the favourable free zone framework makes this one of the most compelling jurisdictions in the world for IT consultancy businesses looking to establish or expand their regional presence.

Speak with a licensed business setup adviser to confirm current fee schedules, document requirements, and the fastest route to activating your IT consultancy licence at Dubai South.

References and Citations

• UAE National Strategy for Artificial Intelligence 2031 - UAE Government Portal

• Dubai South Business Hub Free Zone - Official Website

• UAE Corporate Tax - Federal Tax Authority

• UAE Digital Economy Strategy - Ministry of Economy

• International Standard Industrial Classification (ISIC) - United Nations Statistics Division

• Economic Substance Regulations - UAE Ministry of Finance