Dubai Company Setup for Consultants 2026
How to set up a consulting business in Dubai — best free zones (IFZA, DMCC, Meydan, RAKEZ), activity codes, DED mainland licence, freelance permit, corporate tax, VAT, banking, and step-by-step costs.
Last updated: May 2026
Dubai Practical Editorial Team· Collaborative authorship
Signed by: Sarah Al Qasimi (Lead Editor). Fact-checked by the full editorial team.
Why Dubai for Consulting?
Dubai has become the preferred base for MENA-region consultants across management, IT, strategy, HR, and marketing disciplines. The combination of 0% personal income tax, a 9% corporate tax rate that only applies above AED 375,000 profit, world-class connectivity (4-hour flight radius covers 2 billion people), and a MENA hub status makes it uniquely attractive for client-facing professionals.
The consulting advantage in Dubai
- 0% personal income tax — your entire salary/drawings are yours to keep
- 9% corporate tax only above AED 375,000 profit — most early-stage consultants pay 0%
- Free zone QFZP relief — potentially 0% CT on international consulting income
- 100% foreign ownership in both free zone and mainland structures
- MENA hub positioning — serve Gulf, Africa, and South Asian clients from one base
- No currency restrictions — invoice in USD, EUR, GBP, or AED without restriction
Best Setup Options for Consultants
Free Zone Company
AED 6,000–30,000/yrMost consultants
IFZA, DMCC, Meydan, or RAKEZ — 100% foreign ownership, flexi-desk included, fast setup. Best for international and MENA-focused consulting.
Freelance Permit (Green Visa)
AED 15,000–25,000/yrSolo practitioners
DTCM, IFZA, or RAKEZ freelance permit — simplest route, 5-year self-sponsored visa, no staff hiring allowed.
Mainland Professional Licence
AED 20,000–50,000/yrUAE-focused consultants
DED Dubai professional licence — unrestricted UAE market access, required for some government and large corporate clients.
Activity codes matter — choose all you need at setup
Consulting licences are activity-specific. Management consultancy, IT consultancy, HR consultancy, marketing consultancy, and strategy consultancy are separate activity codes in most free zones and DED. Adding activities after the fact costs AED 1,000–3,000 per code. Select all relevant codes upfront — it is far cheaper than adding them later.
Consulting Activity Codes Available in Dubai
| Activity | Description | Free Zone | Mainland (DED) |
|---|---|---|---|
| Management Consultancy | Business strategy, operational improvement, change management | All major free zones | DED Professional Licence |
| IT / Digital Consultancy | Technology advisory, digital transformation, systems architecture | DIC, IFZA, DMCC, RAKEZ | DED Professional Licence |
| Marketing Consultancy | Marketing strategy, brand consulting, growth advisory | IFZA, DMCC, DMC, RAKEZ | DED Professional Licence |
| HR Consultancy | Talent strategy, organisational design, recruitment advisory | IFZA, DMCC, RAKEZ, Meydan | DED Professional Licence |
| Strategy Consultancy | Corporate strategy, market entry, M&A advisory | IFZA, DMCC, DIFC | DED Professional Licence |
| Financial / Business Advisory | Financial planning, investment advisory (non-regulated) | IFZA, DMCC, RAKEZ | DED Professional Licence |
| Training Services | Corporate training, workshops, L&D consulting | IFZA, RAKEZ, KHDA-regulated (education) | DED + KHDA (if accredited) |
Free Zone Comparison for Consultants
Free ZoneIFZA
Annual CostAED 11,500–25,000
Visa Quota1–6
OfficeFlexi-desk included
Setup Time3–5 days
Best ForMost consultants — broadest activity list, fast setup, good banking support
Free ZoneDMCC
Annual CostAED 15,000–30,000
Visa Quota1–6
OfficeFlexi-desk from AED 5,000/yr
Setup Time5–10 days
Best ForPremium-brand consultants; JLT networking; DMCC community events
Free ZoneMeydan
Annual CostAED 6,000–12,000
Visa Quota1–3
OfficeFlexi-desk included
Setup Time3–5 days
Best ForSolo consultants on a budget; 1–2 visa requirement only
Free ZoneRAKEZ
Annual CostAED 8,000–15,000
Visa Quota1–6
OfficeFlexi-desk included
Setup Time5–7 days
Best ForConsultants who don't need a Dubai address; lowest cost with flexible visas
Free ZoneDAFZA
Annual CostAED 25,000+
Visa Quota2–6
OfficePhysical office from AED 15,000/yr
Setup Time7–14 days
Best ForConsultants serving aviation/logistics clients adjacent to DXB airport
Free Zone vs Mainland vs Freelance Permit
CriterionForeign ownership
Free Zone100%
Mainland (DED)100% (most consulting activities)
Freelance Permit100% (individual)
CriterionUAE market access
Free ZoneVia distributor for mainland clients
Mainland (DED)Unrestricted direct billing
Freelance PermitUnrestricted (individual billing)
CriterionAnnual cost (yr 1)
Free ZoneAED 12,000–30,000
Mainland (DED)AED 20,000–50,000
Freelance PermitAED 15,000–25,000
CriterionOffice requirement
Free ZoneFlexi-desk (included in most packages)
Mainland (DED)Virtual office / flexi-desk accepted (post-2024)
Freelance PermitNo office needed
CriterionSetup time
Free Zone1–3 weeks
Mainland (DED)2–4 weeks
Freelance Permit1–3 weeks
CriterionCan hire staff
Free ZoneYes (via visa quota)
Mainland (DED)Yes (via MOHRE WPS)
Freelance PermitNo (individual only)
CriterionVisa duration
Free Zone2–3 years (standard) / 5 years (Green Visa)
Mainland (DED)2–3 years (standard) / 5 years (Green Visa)
Freelance Permit5 years (Green Visa self-sponsored)
CriterionCorporate Tax
Free Zone0% on qualifying income (QFZP); 9% otherwise
Mainland (DED)9% above AED 375K profit
Freelance Permit9% above AED 375K profit
CriterionBest for
Free ZoneInternational + MENA consulting clients
Mainland (DED)UAE government/corporate clients requiring DED licence
Freelance PermitSolo practitioners — maximum simplicity
Free zone advantages for consultants
- 100% foreign ownership — no UAE national partner required
- Fast setup in 3–10 days vs 2–4 weeks for mainland
- Flexi-desk satisfies office requirement — no expensive lease
- Lower year-1 costs (AED 12,000–25,000 vs AED 20,000–50,000 mainland)
- QFZP status may mean 0% corporate tax on qualifying international consulting income
- Simpler annual compliance — single authority renewal
- IFZA and DMCC have bank introduction programmes to ease account opening
Free zone limitations to know
- Technically requires a distributor to bill mainland UAE clients directly
- DMCC and DAFZA significantly pricier than general free zones
- Cannot participate in UAE government tenders that require DED licence
- Limited networking in some free zones compared to DMCC's 22,000+ company community
- Non-qualifying income (mainland UAE revenue) still subject to 9% CT
- QFZP relief requires annual audit + substance requirements — additional cost
8-Step Consultant Company Setup Guide
- 1
Decide: free zone, mainland, or freelance permit
For most consultants, a free zone company (IFZA, DMCC, Meydan, RAKEZ) is the fastest and cheapest route. Choose mainland (DED Professional Licence) only if you need to directly bill UAE government departments or large local corporations that require a DED licence. The freelance permit via Green Visa (DTCM/IFZA/RAKEZ) is ideal if you are a solo practitioner not planning to hire staff.Time: 1–3 days (research) - 2
Select your consulting activity codes
Consulting licences are activity-specific. Management consultancy, IT consultancy, marketing consultancy, HR consultancy, and financial advisory are separate codes in most free zone and DED registers. Select all activities you will actually perform — adding activities later costs AED 1,000–3,000 per code. Do not list activities you do not perform; this creates VAT and corporate-tax categorisation issues.Time: 1 day - 3
Choose your free zone and package
IFZA (AED 11,500–25,000/yr) is the most popular for consultants — broad activity scope, fast setup (3–5 days), flexi-desk included, and strong bank introduction support. DMCC (AED 15,000–30,000/yr) adds premium JLT networking but costs more. Meydan (AED 6,000–12,000/yr) is cheapest but with fewer support services. RAKEZ (AED 8,000–15,000/yr) is best if cost is the primary concern and you do not need a Dubai address. Compare visa quotas carefully — solo consultants need at minimum a 1-visa package.Cost: AED 6,000–30,000 (licence fee, zone-dependent)Time: 1–2 days - 4
Reserve trade name and submit application
Submit your application to the chosen free zone — passport copies, completed application form, and a business description. Name reservation typically takes 1 business day. Most free zones now accept applications 100% online. Avoid names that contain country names, government references, or existing registered names.Cost: AED 600–1,200 (name reservation fee)Time: 1–3 business days - 5
Sign flexi-desk lease and pay licence fee
For most consulting activities, a flexi-desk (registered business address + hot-desk access) satisfies the office requirement. Physical offices are available if you need client-facing space. Pay the full licence fee and receive your trade licence — this is your company's legal founding document. Keep it safe; all government transactions reference the licence number.Cost: Included in licence package or AED 2,500–8,000 additionallyTime: 1–3 business days - 6
Apply for residence visa and Emirates ID
Once the licence is issued, apply for your investor/entrepreneur visa through the free zone authority. The free zone forwards to ICA for visa issuance. Medical fitness test (DHA-approved clinic, AED 350–700) is mandatory. Emirates ID biometrics at an ICA registration centre. Total visa-to-stamp time: 2–3 weeks from licence issuance.Cost: AED 4,500–6,000 (visa fees + medical + Emirates ID)Time: 10–21 days - 7
Open a business bank account
Apply to a UAE business bank immediately after receiving your licence. For new consulting companies, the easiest approval route is Wio Business (digital, AED 0 minimum, 1–3 day opening) or Mashreq Neo Biz (digital, AED 0 minimum, 2–5 days). Traditional banks (ENBD, ADCB, Mashreq) are easier to obtain once you have 3–6 months of trading history. Have your trade licence, MOA, UBO declaration, and a 2-page business plan ready.Cost: AED 0 minimum (digital); AED 25,000–50,000 minimum balance (traditional)Time: 1–21 days (digital vs traditional) - 8
Register with FTA for Corporate Tax (and VAT if applicable)
All UAE businesses must register for Corporate Tax with the Federal Tax Authority (FTA) via tax.gov.ae. CT at 9% applies to profits above AED 375,000. If your consulting turnover is expected to exceed AED 375,000 annually, register for VAT (5%). Free zone companies may qualify as Qualifying Free Zone Persons (QFZP) for 0% CT on qualifying income — consult a UAE tax adviser to confirm eligibility and meet substance requirements.Cost: AED 0 (no registration fee); accounting fees AED 500–2,000/moTime: 1–2 weeks (FTA registration)
First-Year Cost Breakdown
| Item | Price |
|---|---|
| Licence | |
Free zone licence (IFZA — 1 visa package) Flexi-desk included; renewable annually | AED 12,500 |
Free zone licence (DMCC — 1 visa package) Premium; JLT address | AED 17,500 |
Free zone licence (Meydan — 1 visa package) Cheapest option | AED 7,500 |
| Visa | |
Residence visa — investor/entrepreneur Includes visa fees, medical, Emirates ID | AED 4,500–6,000 |
| Legal | |
MOA / company documents (free zone) Free zone standard template; no notary required | AED 500–1,500 |
| Banking | |
Business bank account (digital — Wio/Mashreq Neo) No minimum balance; open in 1–3 days | AED 0 |
Business bank account (traditional — minimum balance) ENBD / ADCB; required in bank, not spent | AED 25,000–50,000 |
| Insurance | |
Health insurance (mandatory) DHA minimum compliance for Dubai visa | AED 650–2,500/yr |
| Compliance | |
FTA VAT + CT registration No fee; CT registration mandatory for all companies | AED 0 |
Accounting / bookkeeping (year 1) AED 500–1,500/mo; quarterly VAT returns if registered | AED 6,000–18,000 |
| PRO | |
PRO service (optional — visa/government) One-off for visa processing; free zone handles most tasks | AED 1,500–3,000 |
| Total | |
Total Year 1 (IFZA, 1 visa, digital banking) IFZA licence + visa + health insurance + accounting | AED 24,000–35,000 |
Typical lean setup: ~AED 24,000–35,000
An IFZA single-visa package (AED 12,500) + visa fees + medical + Emirates ID (AED 5,500) + digital bank (AED 0 minimum) + accounting (AED 6,000/yr) = approximately AED 24,000–35,000 all-in for year 1. DMCC adds AED 5,000–15,000 to that total for the premium network benefit.
Corporate Tax and VAT for Consultants
Corporate Tax (CT)
| Profit Level | Rate | Notes |
|---|---|---|
| AED 0 – 375,000 profit | 0% | Zero rate — most early-stage consultants will pay nothing |
| Above AED 375,000 profit | 9% | Only on the amount ABOVE the threshold |
| Free zone QFZP — qualifying income | 0% | International consulting revenue may qualify; substance rules apply |
| Small Business Relief (turnover < AED 3M) | 0% | Elect for SBR if eligible — check latest FTA guidance |
VAT for Consulting Services
- Register when annual taxable turnover exceeds AED 375,000 (mandatory) or AED 187,500 (voluntary)
- Invoice UAE clients with 5% VAT on all consulting fees
- Services to non-GCC international clients are zero-rated (exported services) — include in VAT return but at 0%
- Include your TRN (Tax Registration Number) on all invoices post-registration
- File VAT returns quarterly via the FTA portal (tax.gov.ae)
- Retain all invoices and records for 5 years
Common mistake: assuming free zone = no UAE tax
Free zone companies are NOT automatically exempt from UAE Corporate Tax. 9% CT applies to profits above AED 375,000 unless you qualify as a Qualifying Free Zone Person (QFZP). QFZP requires annual audit, substance requirements, and qualifying income — consult a UAE-registered tax adviser before assuming 0% applies to your practice.
Business Banking for Consultants
Opening a corporate bank account is often the most frustrating step for new consulting companies. UAE banks apply stringent KYC/AML checks. The strategy: open a digital account immediately (Wio, Mashreq Neo), then apply to a traditional bank after 3–6 months of transaction history.
Wio Business
DigitalMin: AED 0Opens in: 1–3 days
Easiest for new consulting companies; ADNOC-backed; instant approval; supports AED + multi-currency
Mashreq Neo Biz
DigitalMin: AED 0Opens in: 2–5 days
Good accounting integrations; no minimum balance; fast onboarding for free zone companies
ENBD Business
TraditionalMin: AED 50,000–250,000Opens in: 3–5 weeks
UAE's largest bank; good for established consultancies with 6+ months trading history
Mashreq Business
TraditionalMin: AED 25,000–50,000Opens in: 2–3 weeks
More accessible than ENBD for new companies; good digital platform
Get bank account BEFORE finalising your free zone choice
Some free zones have stronger banking relationships than others. IFZA and DMCC have formal bank introduction programmes that significantly improve approval rates at traditional UAE banks. If reliable banking is critical to your consulting practice, weight this heavily in your free zone selection.