Dubai is ranked as a business heaven with a flourishing business environment. It has become a global hub for any industry. It has been a hotspot destination for entrepreneurs and giant corporations seeking entry points into new markets. The most attractive opportunity in Dubai is consultancy, driven by strategic location, tax benefits, and world-class infrastructure. Regardless of your specialty—management, finance, marketing, or technology—Dubai’s dynamic market is ripe for your consulting expertise.
Why Dubai is the Ideal Location for a Consulting Business
The following is the step-by-step process, but before that, let’s find out why Dubai is a preferable place for setting up a consulting firm:
- Strategic location: Dubai lies between Europe, Africa, and Asia, making it a good location for companies trying to operate internationally.
- Tax optimisation: Among the most impressive features of opening a venture in Dubai is that there is no individual income taxes and most activities in free zones do not require corporate taxes.
- Thriving business ecosystem: With an open economy and government policies that support business, consultants can easily network and locate clients in various industries to assist.
- World-class infrastructure: Dubai has sophisticated infrastructure, ranging from transportation to technology, providing a perfect environment for any business.
- Access to skilled talent: Dubai is a global business hub inhabited by a talented workforce, so a consulting business can hire workers from all over the world.
How to Setup a Consulting Business in Dubai?
Let’s take the practical steps and learn the advantages of starting a consulting business in Dubai.
Step 1: Decide Your Consulting Niche
- Determine your niche: Consulting is a vast industry. Hence, it is essential to narrow the area or expertise. Common types of consultancies found in Dubai include the following:
- Management consulting
- Financial consulting
- IT consulting
- Marketing consulting
The selection of a niche will allow you to concentrate your efforts and make your business more attractive to clients who require customised services.
Step 2: Business Structure
The structure of a consulting business in Dubai is possible either on the mainland or in a free zone. While each of them has some pros and cons, it is necessary to make the right decision according to your business needs:
1. Mainland: A mainland business allows you to trade freely and conduct business activities across the UAE. It is important to note that some activities may require a partner to form the company, however, majority of business activities are now permitted for foreigners. In mainland consulting activities are grouped under certain groups such as:
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- Consultancy -A- Agriculture and Soil
- Consultancy -B- Engineering
- Consultancy -C- Petrol and Water
- Consultancy -D- management, information and marketing
- Consultancy –Technical
- Consultancy – Medical
- Banks, finance & credit group
It is important to note that the regulator in Dubai Mainland (DET), does not allow combining different groups under the same license, for example, if you wanted to add Management and Engineering consultancy activities under the same license or company, that is not possible.
In the past, it was not possible to setup a consulting license with limited liability, however, this is not the case now, largely because of Government policies to ease the business and adhere to international standards.
2. Free zone: A free zone offers 100% foreign ownership, and tax incentives. However, you can only engage in business within the free zone or internationally unless. Unlike Mainland, free zones are liberal in terms of combining various consultancy activities under the same license and usually up to 6 activities does not necessarily pose extra fees. Any additional activity(s) requires extra payment. However, it is important to note that if you are targeting Government or Semi Government entities as your client, a free zone license might not work for you. Free zone companies in general offer “limited liability” legal structures.
Gatestone Group, through expert advice, will help you decide on the most suitable business structure for your consulting firm.
Step 3: Acquire Your Trade License
A consulting business in Dubai would need a trade license to operate. For most consulting businesses, the required license is usually the professional services license.
Step 4: Rent Office Space
After registering your business, you will then seek an office space. It is required to rent a physical office space within Dubai as required by the licensing authority. Office space is available in a wide range, from virtual offices and co-working spaces to classic renting office space.
Step 5: Open a Corporate Bank Account
To operate a company in Dubai, it is commonly required to open a corporate bank account once you have formally registered your business and received your trade license. This account will facilitate all the transactions with clients, suppliers, and employees.
Dubai has several reliable local and international banks that can offer corporate bank accounts. Nevertheless, with the selected bank, you may be required to present additional documents, such as copies of shareholders’ and directors’ passports, proof of residence, and a description of activities, among others, and this usually takes a few days or even up to one or two weeks.
Step 6: Legality and Compliance
Finally, as a consulting business in Dubai, it is crucial to adhere to the local laws and regulations. To begin with, it is required to renew your trade license every year, file taxes as and when required, and do all else your industry may need.
The aim of working with a smart business consultant like Gatestone Group is to ensure that you are on the right side of the law, and hence, you are free to focus on growing your business.
Conclusion
Starting a consulting business in Dubai represents an exceptional opportunity for growth and success. Dubai’s tax-friendly environment, strategic location, and thriving economy present the perfect setup for establishing a consulting firm, especially with its speciality in management, IT, finance, or marketing.
With all these steps enumerated in this blog and working with an expert business setup consultant such as Gatestone Group, you can carry out the process of starting a consulting business in Dubai hassle-free by ensuring that your business is well-positioned for success from its very first day.
FAQs
The cost of opening a consulting business in Dubai varies depending on whether the company is in a free zone or on the mainland. Costs include trade license fees, office rentals, visa processing, and other administrative expenses.
No, foreigners can setup their consulting business in Dubai without the need of a local partner which was the case previously.
