The United Arab Emirates is the economic powerhouse that has emerged as the global hub for business and innovation. The rapid growth and dynamic business environment of the country have created a significant demand for consultancy services as businesses need expert guidance to get through the complexities of the local laws and procedures. Therefore, we are here to discuss how to start a consultancy business in UAE and the necessary information needed to obtain a consultancy license.
What is a consultancy business in Dubai?
A consultancy firm is a professional service company that provides specialized expertise to different corporations and individuals for a fee. They offer services across various domains, such as management, engineering, advertising, technology, and more. Consultants work with companies to offer tailored advice to improve efficiency and solve complex problems within a specific industry. Through their insights and recommendations, they help businesses make informed decisions and achieve their organizational goals.
Benefits of starting a consultancy business in Dubai
Before getting into how to start a consultancy business in UAE, it is vital to know the benefits that come with this business idea:-
- Tax Advantages: Entrepreneurs and investors looking to start a business in the UAE can enjoy various tax benefits on many business activities, which ultimately help in significant cost savings and improves profitability.
- Strategic Location: The UAE is a global business hub that offers access to various industries and international markets.
- Economic Stability: The robust economy and infrastructure of the UAE ensure the potential for long-term growth for consultancy businesses.
- Support for Entrepreneurs: The government encourages business setup and entrepreneurship in the UAE through numerous incentives, such as free zones and business-friendly regulations.
- High Demand for Expertise: The growing business landscape of the UAE creates a constant demand for specialized consultancy services in various sectors and industries.
- Networking Opportunities: The consultancy firms can find ample opportunities for networking and partnership with local as well as international businesses in the UAE.
Consultancy services in the UAE: Types
Investors can offer advisory services in several key sectors with a consultancy license in the UAE –
- Educational Consultancy
- Immigration Consultancy
- Company Formation
- Strategy Development
- Financial & Investment Consultancy
- Industrial Consultancy
- Market Research & Analysis
- Tax, Accounting & VAT Consultancy
- HR & Recruitment Consultancy
- Operations & Process Management
- Warehousing & Shipping Consultancy
- IT Consultancy
- Engineering Consultancy
- Legal Consultancy
- Risk Management & Compliance
Need to obtain a consultancy license in the UAE
By securing a consultancy license for a consultancy business in Dubai, business owners can capitalize on many advantages:-
- Legality – Operating a business without a license is illegal everywhere. The Department of Economic Development (DED) enforces strict regulations on consultancy firms operating in the UAE. It authorizes only licensed consultants to provide services to different clients.
- Professional Recognition – A business license is a mark of professionalism and credibility. It shows that the company has met the set standards of the DED and is qualified to provide expert services.
- Liability protection – In case of negligence, a consultancy license can protect from liability. For instance, if a consultancy firm provides careless advice, the clients may sue them for damages, but with a consultancy license, they are less likely to be held accountable.
- Access to opportunities – With a consultancy license, businesses can confidently apply for government contracts and other prospects.
- Tax Benefits – Consultancy businesses with a license may be eligible for tax exemptions or low taxes, depending on their activities and the jurisdiction they are registered in.
- 100% Business Ownership – Foreign investors and entrepreneurs can own 100% of their businesses, which is a significant advantage in the region. This flexibility allows them to have full control over their business operations and profits.
- Ease of Business – Dubai is considered one of the world’s most convenient places to conduct business. The government has simplified the business registration process, including the procedures to obtain visas and work permits.
- Opportunity to expand internationally – The strategic location and strong international connections of the UAE make it an ideal base for businesses to expand internationally. This allows them to reach clients in other parts of the world easily.
How to start a consultancy business in UAE: Step-by-Step Procedure
Starting a consultancy business in Dubai is a structured procedure that involves several steps in compliance with local regulations.
Choose your business activity: Identify the business activities or specific consultancy services you want to offer through your firm, such as IT, marketing, management, legal, or human resource consultancy. The business owners must ensure to choose an appropriate activity from DED’s list of predefined activities.
Register a trade name: The unique name selected by the business owner must adhere to the naming guidelines of the UAE, ensuring it’s not offensive or similar to any existing business name. Once selected, submit it to the relevant authorities for approval, such as the Department of Economic Development (DED) or the relevant free zone authority.
Decide on the business structure: Select a suitable legal structure based on the business model and requirements. For example, a Sole Proprietorship, Limited Liability Company (LLC), or a branch of a foreign company,.
Choose a business location: The business owners can either opt for the Mainland or any of the free zones to start their consultancy company. While Mainland entities allow trading locally and bid for government contracts, free zone companies can benefit from 100% ownership and tax exemptions.
Rent an office: Based on the budget and location, the business owners must select an appropriate office space. In free zones, they can operate without a physical office, whereas to operate on the mainland, they will need a registered office address.
Submit required documents: Once all the above requirements are settled, submit a completed application form along with the essential documents such as passport copies, corporate documents, and necessary approvals from relevant authorities.
Pay the fees and obtain the license: Once the application is processed, the business owners must pay the requisite fee amount and receive the consultancy license.
Post-License Steps: After obtaining the license, they can apply for UAE residence visas for themselves and their employees. Additionally, they also need to open a corporate bank account to manage their business finances.
The specific steps and requirements for the licensing process may vary depending on their chosen business structure and location within the region. Therefore, it is advisable to consult with a business setup consultant at Shuraa to ensure a smooth application.
Cost of setting up a consultancy firm in Dubai
The cost of setting up a consultancy business in Dubai involves more than just a business license. It is influenced by several factors such as business location, office space, and visa requirements. In addition, it may also add ongoing expenses such as utilities and employee salaries.
Hence, it is recommended to seek expert consultation from Shuraa Business Setup to learn all about the updated requirements and costs involved in establishing a consultancy firm in the UAE.
Start your business with Shuraa!
Shuraa Business Setup will assist you in obtaining your UAE consultancy license through their expert guidance and tailored solutions. Their business consultants will help you gather and prepare all necessary documents to ensure a smooth application process. Moreover, their streamlined approach assures efficiency, thereby saving time and hassle for business owners.
If you want to learn more about how to start a consultancy business in UAE, you can contact Shuraa by sending a WhatsApp message to +971507775554 or email at info@shuraa.com.
