Starting a consulting company in the United Arab Emirates: complete guide

Setting up a consulting company in the United Arab Emirates (UAE) is a strategic opportunity for entrepreneurs looking to benefit from a favorable tax environment and a rapidly growing market. Here are the steps to turn this project into reality.

1. Define the type of consulting

Before launching your business, it is essential to determine the specialization of your consulting company. Here are some examples of consulting services:

• Strategy consulting: Helping businesses develop their vision and achieve their objectives.

• Human resources consulting: Recruitment, career management, training.

• Marketing and communication consulting: Advertising campaigns, social media management.

• Financial and tax consulting: Budget management, tax optimization.

• Technology consulting: IT solutions, cybersecurity, digital transformation.

Choose a niche aligned with your skills and the needs of the local or international market.

2. Choose the location: Freezone or mainland

In the United Arab Emirates, you can set up your company either in a free zone or in the mainland.

• Freezone:

  • Advantages: 100% foreign ownership, full tax exemption.

  • Disadvantages: Limited access to the local market.

• Mainland:

  • Advantages: Full access to the local and international markets.

  • Disadvantages: need of having commercial premises. 

3. Obtain the license and choose a trade name

• Consulting license: You need to apply to the relevant authority (Department of Economic Development or the chosen free zone entity).

• Trade name: Select a unique name that complies with local regulations.

Once approved, these elements allow you to officially register your company.

4. Apply for visas and salaries

After obtaining the license, you can apply for visas for:

• Partners: Co-founders or shareholders of the company.

• Employees: Staff you plan to hire.

Each visa is tied to a quota based on your license and immigration requirements.

5. Open a bank account

Once your company is registered, you need to open a professional bank account in the United Arab Emirates. This process may take a few weeks depending on the bank's requirements and necessary documents, such as your license and company statutes.

6. Activities and taxation

Your consulting company can offer services:

• Locally: To businesses and individuals within the UAE.

• Internationally: Providing services abroad, often VAT-exempt.

Tax benefits:

• Corporate Tax: No corporate tax in most cases.

• VAT:

  • 5% rate for local revenues exceeding 375,000 AED per year.

  • Exemption for exported services.

7. Operational management

Once your company is established, set up solid contracts with your clients and partners, including:

• Precise and locally compliant service contracts.

• Clear partnership agreements for collaborations.

Conclusion

Starting a consulting company in the United Arab Emirates is an attractive opportunity thanks to its favorable tax framework, modern infrastructure, and access to global markets. By following the steps outlined above, you can establish a strong foundation to grow your business effectively and profitably.

Meyran Partners, with its team of expert lawyers and legal consultants, is ready to assist you at every step of the creation and development of your consulting company in the United Arab Emirates.