A consultancy license is an official authorization issued by a regulatory body that permits an individual or organization to lawfully offer consulting services within a particular industry or field of specialization.
Local or regional governments commonly mandate this authorization to ensure that consulting enterprises function in accordance with established legal requirements and maintain specific standards related to professional credentials, relevant experience, and ethical practices.
There are typically two primary categories of consultancy licenses:
Consultancy licenses are specialized business licenses that permit individuals or companies to offer professional advisory services in specific fields of expertise.
The main types and categories of consultancy licenses in the UAE include:
Authorizes advisory services in business strategy, human resources, marketing initiatives, and operational enhancement for organizational improvement and efficiency.
Permits legal advisory services, arbitration, and mediation activities. Exclusively available to qualified law firms and certified legal professionals.
Enables tax planning, regulatory compliance, and optimization services, typically granted to accounting firms and specialized tax advisory organizations.
Covers information technology advisory services, system integration solutions, and digital transformation consulting for technological advancement and modernization.
: Permits consulting across engineering disciplines, requiring qualified technical personnel and specific professional credentials for specialized project guidance.
Encompasses financial, marketing, human resources, or environmental consulting services, varying according to selected business activities and expertise.
Understanding the various licensing jurisdictions is crucial for selecting the most appropriate operational framework for your consultancy business in the UAE:
Mainland Consultancy License | Free Zone Consultancy License | Offshore Consultancy License |
Enables nationwide operations across the UAE; certain activities may necessitate appointment of a local service agent for compliance purposes. | Provides advantages including complete foreign ownership and favorable tax benefits, though with limited operational scope beyond the designated free zone. | Designed for international advisory operations with no physical business activities conducted within UAE mainland territories. |
Professional License: This comprehensive license category encompasses consultancy services alongside other professional activities, typically permitting complete foreign ownership in most circumstances.
Specialized Classifications: Certain emirates categorize consultancy firms, particularly engineering or technical consultancies, based on experience levels, staff credentials, and project portfolios, spanning from “Special Category” for highly experienced organizations to entry-level classifications for new market participants.
Anyone providing professional advisory or consulting services in the UAE requires a consultancy license, whether operating individually or through a business entity. This applies across multiple sectors including:
Both UAE nationals and foreign professionals may apply, subject to meeting specific qualification and experience standards for their respective fields.
For instance, legal consultants need law degrees plus minimum experience requirements (two years for UAE nationals, eight years for non-UAE nationals).
Consultancy licensing is mandatory for all business structures and operational jurisdictions, requiring regulatory approvals, professional credentials, and potentially specialized examinations or certifications.
To obtain a consultancy license in the UAE, follow these key steps. The process is similar across most emirates, with minor variations depending on whether you choose a mainland or free zone setup:
Clearly identify the specific consultancy services you will provide (such as management, HR, IT, legal, tax, or engineering) and select the appropriate business activity code from the approved regulatory list.
Decide on your business format (sole proprietorship, LLC, or branch office) and select between mainland operations (UAE-wide coverage, may require local service agent) or free zone setup (complete foreign ownership, tax benefits, limited external operations).
Reserve a unique business name through the Department of Economic Development (DED) or relevant free zone authority to secure your corporate identity.
Gather necessary documents, which typically include:
Submit your application and supporting documents to the DED or free zone authority for preliminary approval. Certain consultancy activities may require additional approvals or professional examinations.
Arrange for physical or virtual office space as mandated by your chosen jurisdiction. Free zones typically offer flexible arrangements including virtual offices or flexi-desk solutions.
Submit the complete application with all supporting documents, including trade name reservation and office lease agreements, then pay the required license fees which vary by emirate and business structure.
Once approvals are granted and fees paid, the consultancy license is issued within a few days.
You can then open business bank accounts and apply for residence visas. Maintain ongoing compliance through regular license renewals, tax registration, and accurate record-keeping to ensure continued operations.
Important Considerations:
The documents required for a consultancy license in the UAE vary slightly depending on the type of consultancy and the chosen jurisdiction (mainland or free zone), but the core requirements are consistent across most sectors:
Document Type | Description |
Completed application form | Official licensing application as per regulatory authority requirements |
Passport copies | All shareholders/partners and managers identification documents |
Passport-sized photographs | Usually two colored photographs per applicant |
Emirates ID copy | If applicable for UAE residents |
UAE residence visa copy | If applicable for current UAE residents |
Proof of educational qualifications | Relevant academic credentials for the consultancy activity |
No Objection Certificate (NOC) | From current sponsor if applicant is employed in the UAE |
Office lease agreement | Ejari certificate (mainland) or flexi-desk agreement (free zones) |
Memorandum of Association | Required for Limited Liability Company structure |
Local Service Agent Agreement | For foreign-owned mainland company establishments |
Company profile or business plan | Document outlining business activities and objectives |
Specialized consultancy licenses require additional documentation and qualifications beyond general requirements, tailored to specific professional standards and regulatory compliance:
Legal Consultancy:
Engineering Consultancy:
Educational Consultancy:
Additional Requirements: Certain free zones may mandate Ministry of Foreign Affairs attestation for specific documents to ensure international recognition and validity.
Additionally, sector-specific approvals or professional certifications may be required depending on the particular consultancy field, with each specialization having distinct regulatory standards and compliance obligations that must be met before license approval.
Jurisdiction | Cost Range | Details |
Dubai Mainland | AED 15,000 – AED 30,000 | Average AED 18,500 for basic license fee; additional costs include office rent, visa fees (AED 3,000-7,000 per employee), health insurance, and document notarization (AED 500-2,000) |
Dubai Free Zones | AED 8,050 – AED 25,000 | Starting from AED 8,050 for basic license in smaller/northern emirate free zones; comprehensive packages in major free zones range AED 15,000-25,000 including license, visa, and corporate services |
Other Emirates | AED 6,500 – AED 9,000 | Free zone consultancy licenses including co-working space or flexi-desk arrangements |
The cost of a consultancy license in the UAE varies depending on the emirate, business structure (mainland or free zone), and additional requirements such as office space and visas.
Additional Costs to Consider:
The final cost depends on your chosen jurisdiction, business size, and operational needs. Engaging a business setup specialist can help identify the most cost-effective option for your consultancy requirements.
Consultancy businesses in the UAE must comply with a comprehensive and evolving regulatory framework to operate legally and maintain credibility. Key regulations and compliance requirements include:
A consultancy license in the UAE is valid for one year and must be renewed annually.
Failing to renew on time incurs a penalty of AED 200 per month after the due date. Operating with an expired license can lead to legal issues, fines, and disruption of business operations.
The consultancy license renewal process in the UAE follows a structured approach to ensure continued legal operations:
Ensure your office lease or Ejari certificate remains valid for at least one month beyond the renewal date to meet regulatory requirements.
Submit the renewal application accompanied by required documents including previous license copy, tenancy contract or Ejari certificate, BR/1 form, and partners’ passport copies.
Pay the renewal fees after receiving the official payment voucher from the licensing authority to complete the financial requirements.
Complete the renewal process through available channels including online platforms, mobile applications, SMS services, or in-person visits to authorized service centers.
Additional Considerations: Timely renewal is essential for maintaining employee visas, corporate bank accounts, and ensuring uninterrupted business operations. Additionally, keeping all compliance requirements and supporting documents current facilitates a smooth renewal process and prevents potential regulatory complications.
Obtaining a consultancy license in the UAE requires careful planning, proper documentation, and adherence to regulatory requirements. With costs ranging from AED 6,500 to AED 30,000 depending on jurisdiction and specialization, the investment opens doors to a thriving business environment.
Success depends on choosing the right license type, maintaining compliance, and partnering with experienced professionals to navigate the process efficiently and ensure long-term operational success.
A penalty of AED 200 per month applies for late renewal, and operating with an expired license can result in legal action and business disruption.
Yes, legal, engineering, and other specialized consultancies require additional approvals, professional qualifications, and sector-specific compliance.
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