Opening a consulting company in Dubai requires aligning the structure with the revenue model, client geography, and compliance expectations from the first decision. Consulting activities fall under professional services, which benefit from 100 percent foreign ownership in both mainland and free zone jurisdictions as of 2026. The choice between mainland and free zone determines local market access, operational flexibility, and administrative load. A management consultant primarily serving EU clients often prioritizes a free zone for streamlined international focus and potential tax advantages on qualifying income. One targeting UAE corporate contracts benefits from mainland for direct contracting without intermediaries.
Deciding Between Mainland and Free Zone
Mainland licensing through the Department of Economy and Tourism supports unrestricted access to UAE clients, government opportunities, and seamless local contracting. Free zones offer faster setup and international orientation, with recent Dubai rules allowing approved activities on the mainland via permits and separate accounting. The decision hinges on where the majority of revenue originates. A strategy advisor billing European corporations selects a services oriented free zone to minimize local regulatory touchpoints. One securing projects with Dubai based firms incorporates mainland to avoid distributor arrangements and demonstrate stronger local presence for banking.
Selecting Precise Activity Wording
Consulting licenses require specific activity descriptions that match actual services performed. Broad terms such as business consultancy or management consultancy appear in most zone and mainland lists, yet authorities review the business plan and proposed scope. Inaccurate wording leads to later amendments, extra fees, and potential compliance flags. A digital transformation consultant verifies that the license covers advisory, training, and implementation support to align with contracts and invoicing. Activity selection also influences corporate tax classification and Qualifying Free Zone Person eligibility where applicable.
Preparing Incorporation Documents
Founders submit passports, visa copies or entry stamps, a brief business plan outlining services and revenue projections, and ownership details. Free zones handle most steps digitally through their portals, while mainland involves trade name reservation followed by memorandum of association notarization. The process demands clear ultimate beneficial owner declarations and source of funds evidence to support future banking. A solo consultant prepares these materials early to avoid delays in license issuance and to build a coherent narrative for regulators and banks.
Securing Office Space and Demonstrating Substance
Office requirements vary by jurisdiction. Free zones accept flexi desk options for initial registration, sufficient for low volume consulting yet potentially limiting for visa quotas or banking perception. Mainland demands physical leased premises verified by Ejari, which supports higher substance credibility. Substance expectations under corporate tax and banking rules require evidence of UAE based decision making, such as residency, local contracts, or operational records. A consultant serving international clients starts with flexi desk in a free zone then upgrades to dedicated space once revenue justifies expanded presence and team hiring.
Obtaining Visas and Residency
Investor or partner visas link directly to the license and office quota. Each visa involves medical fitness testing, Emirates ID issuance, and stamping. Family sponsorship becomes possible once the founder holds valid residency, subject to income and accommodation criteria. A founder relocating with dependents factors these steps into the timeline to maintain personal stability while building the business. Employee visas follow similar processes when scaling requires local or international talent.
Opening a Corporate Bank Account
Banks evaluate consulting companies on source of funds, client geography, contract quality, and operational substance. A professional website, engagement letters, and proof of UAE management strengthen the application. Common rejection causes include vague revenue models or insufficient local footprint. A consultant prepares a readiness file with client agreements, service terms, and residency documentation to present a credible profile aligned with the licensed activities.
Managing Corporate Tax and VAT Obligations
Corporate tax applies at 0 percent on taxable income up to AED 375,000 and 9 percent above, with small business relief potentially available for qualifying revenue below AED 3 million in periods ending on or before December 31, 2026. Consulting income classification depends on facts and client location. VAT registration activates at the AED 375,000 taxable turnover threshold, requiring proper invoicing that distinguishes taxable supplies. Founders maintain clean bookkeeping from day one to support filings and audits.
Establishing Governance and Scaling Controls
Shareholder agreements, defined signing authorities, and basic financial controls prevent internal issues as the business grows. A solo founder documents decision rights and invoice approval processes early to support future partner additions or team expansion. These measures also aid compliance during audits and banking reviews.
Partners such as ALand, guided by Dr. Pooyan Ghamari, support the entire process by matching jurisdiction and license to the consulting model, preparing documentation packages, optimizing substance for banking and tax purposes, and delivering ongoing process control to scale operations compliantly without rework or exposure. Opening a consulting company in Dubai proceeds smoothly when each step aligns the structure with actual client work, substance needs, and regulatory realities from the outset.