How to Start a Consultancy Business in the UAE

The United Arab Emirates (UAE) is a booming market for consultancy services, with businesses seeking expert advice across various industries. From IT management and finance to marketing and legal advice, consultancy businesses thrive in this growing and diversified economy. If you’re considering starting a consultancy business in the UAE, this step-by-step guide will walk you through the process while optimizing for the essential SEO keywords to boost your search rankings.

Why Start a Consultancy Business in the UAE?

The UAE is known for its rapid economic growth and diversification, moving beyond its reliance on oil and gas. As the second-largest consulting market in the Gulf (after Saudi Arabia), the demand for expert consultancy in the UAE continues to grow across several sectors, including financial services, cybersecurity, healthcare, and IT. Major global events like Expo 2020 in Dubai and the FIFA World Cup in Qatar have further boosted business opportunities.

Types of Consultancy Services in the UAE

There are several consultancy niches to explore in the UAE, including:

IT and IT Management Consultancy: A growing area due to the digital transformation in businesses.
Finance and Accounting Consultancy: High demand for tax advisory, bookkeeping, and financial planning.
Marketing and Business Advisory Consultancy: Helping businesses expand in the region through targeted marketing strategies.
Healthcare Consultancy: Especially relevant in light of increasing healthcare investment and expansion.
Cybersecurity Consultancy: A booming sector, especially after a 28% revenue increase in 2021.

Other sectors include engineering consultancy, waste management, legal consultancy, project management, and more. It’s crucial to identify your area of expertise before diving into the setup process.

Steps to Start Your Consultancy Business in the UAE

1. Choose Your Business Activity and Structure

Before registering, you’ll need to identify the exact business activities your consultancy will engage in. The UAE’s Department of Economic Development (DED) provides a detailed list of predefined activities. Picking the right category ensures you don’t face restrictions later.

Consulting activities could range from corporate management and operations consulting to niche areas like spa & fitness club consultancy or renewable energy consulting.

2. Obtain Necessary Approvals

Depending on your consultancy type, you’ll need to secure approvals from the appropriate authorities. For example:

Legal Consultancy: Requires approval from the Government of Dubai Legal Department.
Real Estate Consultancy: Approved by the Real Estate Regulatory Authority (RERA).
Safety or Fire Safety Consultancy: Requires permission from the Civil Defense authorities.

Navigating these approvals can be complex, so it’s beneficial to work with a corporate services company that has established relationships with government entities.

3. Choose the Right Jurisdiction: Free Zones vs Mainland

In the UAE, you have three main options for setting up your consultancy business:

Mainland: Offers the flexibility to operate anywhere in the UAE but requires a local sponsor for licensing.
Free Zones: Ideal for international consultants and startups, offering 100% ownership and various tax exemptions. Free zones like Dubai Internet City or Abu Dhabi Global Market (ADGM) are popular choices.
Offshore: Suitable for businesses that operate primarily outside the UAE but need a legal presence in the country.

Choosing the right jurisdiction depends on your business goals and the nature of your consultancy. Each has different licensing requirements and trading restrictions.

4. Select a Suitable Business Name

Your business name must comply with UAE regulations. It should not include restricted terms like “Emirates” or government abbreviations. Additionally, it should reflect your business activity and not be offensive or already registered by another company.

5. Apply for Your Consultancy License

Once you’ve decided on your business structure, jurisdiction, and name, the next step is to apply for a consultancy license. Submit all required documents to the relevant licensing authority, which could be the DED for mainland businesses or the respective free zone authority.

6. Visa and Labour Card Applications

Upon receiving your business license, you must apply for an establishment card, a labour card, and a visa. The visa process requires a medical test and biometric information. Free zones usually offer visa packages as part of the company setup.

Why You Should Seek Expert Advice

Starting a consultancy business in the UAE involves various steps that require precision, from approvals to documentation. To avoid delays or costly mistakes, it’s advisable to seek expert advice from a company formation specialist or a corporate services provider. These professionals will streamline the process, helping you navigate legal hurdles and setting up your business efficiently.

Conclusion

Setting up a consultancy business in the UAE is a lucrative opportunity, given the country’s growing demand for professional services across multiple sectors. Whether you choose to operate from the mainland or take advantage of the benefits of a free zone, understanding the local business landscape and securing the right licenses and approvals is critical. By following these steps and seeking expert advice when necessary, you’ll be well on your way to building a successful consultancy business in the UAE.

How Beyond View Can Help You Start a Consultancy Business in the UAE

Starting a consultancy business in the UAE can be a complex process, but Beyond View simplifies it with expert assistance at every stage. From helping you choose the right business structure (mainland, free zone, or offshore) to securing necessary approvals and licenses, Beyond View offers personalized support tailored to your consultancy’s needs.