Consultancy License in Dubai: 2026 Costs, Zones and Tax

A consultancy license in Dubai costs about AED 5,750 to 18,900 a year in the budget and mid-range free zones and about AED 12,500 to 18,000 in year one on the mainland, according to Takween Advisory's 2026 cost guide. Free zone is usually right if your clients are outside the UAE; mainland is right if you will advise UAE companies or government entities directly.

That is the short answer. The longer one matters more, because the licence fee is the smallest decision you will make. How you are taxed, whether you need a local service agent, whether your clients can contract with you, and, if you are an Indian consultant or firm, whether the structure survives scrutiny in India are what decide whether the setup pays for itself. This guide covers all of it for management, business, strategy, HR, marketing and IT consultants. If you run an Indian services firm and are weighing a Dubai front office, our India-UAE services corridor page explains how we approach that decision.

Key points

• Most consultancy activities can be licensed in a free zone with 100% foreign ownership; IFZA's government fee for a zero-visa licence is AED 12,900 in 2026 (Avyanco, July 2026).
• A mainland professional licence lets a foreign national own 100% of a sole establishment or civil company but requires a UAE national local service agent, typically AED 5,000 to 8,000 a year (Takween Advisory, 2026).
• Consulting for ordinary third-party clients is generally not a qualifying activity for the 0% free zone corporate tax rate, so free zone and mainland consultancies are usually taxed the same way.
• Small Business Relief now runs to tax periods ending on or before 31 December 2029 for revenue up to AED 3 million (DLA Piper, August 2026), which helps most new consultancies.
• Financial, legal and engineering advice are regulated activities and need a sector approval, not just a consultancy licence.

What is a consultancy license in Dubai and who needs one?

A consultancy license is a trade licence that lists one or more advisory activities, such as management consultancy, business strategy, marketing, HR, IT or feasibility studies. You need one to invoice clients from a UAE company, open a UAE corporate bank account, and sponsor your own residence visa through the business. It is issued either by a free zone authority (such as IFZA, Meydan, SHAMS or DMCC) or, on the mainland, by Dubai's Department of Economy and Tourism (DET).

The activity wording matters more than most agents admit. Your bank, your clients' procurement teams and the Federal Tax Authority all read the licence. Pick activities that match what you actually sell, and add related ones (for example, management consultancy plus feasibility studies) rather than a long generic list that invites questions at the bank.

Free zone or mainland: which consultancy licence should you choose?

For the wider trade-offs, our guide to Dubai free zone vs mainland goes into contracting, offices and visas in more depth.

How much does a consultancy license cost in Dubai in 2026?

The table below combines the most specific published 2026 figures we could find. They are indicative: free zones change packages often and agents add their own fees.

Three costs catch consultants out. First, visas: each residence visa adds a few thousand dirhams, and a zero-visa licence means you cannot sponsor yourself. Second, office: mainland licences need an Ejari-registered lease, while free zone packages usually include a flexi-desk. Third, renewal: compare the year-two price, not the first-year promotion. For a full breakdown of government and visa fees across zones, see our Dubai company formation cost guide.

Professional licence vs commercial licence for consultants

On the mainland, consultants usually choose between two routes. A professional licence is issued to a sole establishment (one owner) or a civil company (a partnership of professionals). A foreign national can own 100%, but the business must appoint a UAE national or UAE-owned company as local service agent, who holds no shares and acts as a liaison with government departments. The alternative is a limited liability company with a commercial licence. Since the 2021 amendments to the Commercial Companies Law (Federal Decree-Law No. 26 of 2020), most onshore activities can be 100% foreign-owned in an LLC without a local partner or agent.

The practical difference: a sole establishment does not separate your personal liability from the business, while an LLC does. A consultancy expecting larger contracts, partners or staff usually prefers the LLC; a solo adviser keeping costs low may prefer the professional licence. In free zones the distinction largely disappears: you incorporate a free zone company (an FZ-LLC or FZCO) with a service or consultancy activity.

How is a Dubai consultancy taxed?

Corporate tax. Under Federal Decree-Law No. 47 of 2022, UAE businesses pay 0% on taxable income up to AED 375,000 and 9% above it. Free zone companies can pay 0% on qualifying income if they are a Qualifying Free Zone Person, but the list of qualifying activities is aimed at trading, holding, treasury, logistics, headquarter services to related parties and similar functions. Consulting for ordinary third-party clients is generally not on that list, and once non-qualifying revenue exceeds the de minimis limit (the lower of 5% of revenue or AED 5 million), the company loses the 0% rate for that year and the following four. Our guide to UAE corporate tax for free zone companies explains the tests.

Small Business Relief. A resident business with revenue of AED 3 million or less can elect to be treated as having no taxable income. The relief was due to expire for periods ending after 31 December 2026, but the Ministry of Finance extended it to tax periods ending on or before 31 December 2029 (DLA Piper, Gulf Tax Insights, August 2026). A Qualifying Free Zone Person cannot claim it, which is another reason most consultancies are better off not chasing free zone status.

VAT. VAT registration is mandatory once taxable supplies exceed AED 375,000 in 12 months. Consulting services supplied to a business client located outside the UAE are generally zero-rated as an export of services, so you charge no VAT but still register, file and keep evidence of where the client is. Services to UAE clients carry 5% VAT.

Worked example: what a consultant actually pays in tax

Take two IFZA consultancies with no qualifying activities.

The same results apply on the mainland. So choose the jurisdiction on cost, clients and credibility, not on an expectation of a lower tax rate in a free zone.

How to get a consultancy license in Dubai: step by step

1. Define the activities you will carry out and check none are regulated (financial, legal, engineering, medical).
2. Choose the jurisdiction using the table above, and compare three-year costs including visas.
3. Reserve the trade name and submit the application with passport copies and, for corporate shareholders, attested board resolutions and constitutional documents.
4. Receive initial approval, sign the lease or flexi-desk agreement and, on the mainland, appoint the local service agent if you use the professional route.
5. Pay fees and collect the licence. Dubai Business Services puts unregulated consultancy licensing at a few working days to about two weeks.
6. Apply for the establishment card and visas, including medical tests and Emirates ID.
7. Open a corporate bank account. This is often the slowest step; our guide to UAE corporate bank accounts for Indian-owned companies lists what banks ask for.
8. Register for corporate tax with the Federal Tax Authority, and for VAT when you cross the threshold.

Indian consultants and firms: what to sort out in India first

Many readers searching for a consultancy license in Dubai are Indian consultants or firms whose team, or the founder, will stay in India at least for a while. That is where most structures fail, and none of it is visible on a free zone price list.

• Your own tax residency. If you remain resident in India, your worldwide income, including salary or dividends from the Dubai company, stays taxable in India. Moving the licence does not move you. See our guide to moving to Dubai from India for the day-count tests.
• Where the company is managed. If the key management decisions of the Dubai company are made in India, it can be treated as resident in India under the place of effective management test, taxing its profits in India.
• Who does the work. Consultants who deliver the Dubai company's projects from India can create a permanent establishment of the Dubai company in India. Invoicing from Dubai while the team sits in India needs a proper intercompany arrangement priced at arm's length.
• How you invest. A resident Indian individual can generally make an overseas direct investment in a consultancy company abroad, because it is an operating business outside financial services, within the LRS limit of USD 250,000 a year and with the ODI filings through the bank. An Indian company invests under the automatic route; our explainer on ODI rules covers both.

For a full treatment of the services corridor, read expanding an Indian services business to Dubai. Tech consultancies should also see our IT company setup in Dubai guide.

Common mistakes when setting up a consultancy in Dubai

• Choosing a zero-visa licence and then needing residency. Upgrading the package later costs more than choosing correctly at the start.
• Assuming free zone means 0% tax. For ordinary consulting it usually does not.
• Picking a regulated activity by accident. Words such as "financial advisory" or "investment consultancy" can trigger regulator approval or bank refusals.
• Comparing first-year promotions only. Renewal prices and visa renewals are what you pay for years.
• Ignoring the home country. Indian and UK tax residency, management and permanent establishment rules apply whatever the licence says.
• Skipping VAT registration on export fees. Zero-rated supplies still count towards the registration threshold.

When you should not set up a Dubai consultancy

Do not set one up purely to reduce tax while you, your team and your decision-making stay in India: the structure is likely to be taxed in India anyway and adds cost and filings. Do not set one up if your only clients are Indian companies that would rather contract with an Indian entity. And if your revenue is small and uncertain, test demand first: a licence, visa and bank account commit you to fixed annual costs from day one. If you plan to relocate, a consultancy company can support residency and, at higher levels of investment or income, a longer-term route such as the UAE Golden Visa for company owners.

The Greenwolf view

A Dubai consultancy licence is easy to buy and easy to get wrong. We start with where your clients, your people and your decisions actually are, then choose the jurisdiction, licence activities and ownership that match, and set up the intercompany, tax and FEMA side so the structure holds in both countries. For most consultancies, commercial design comes first and the tax result follows from functions and substance.

If you are planning a consultancy or advisory business in Dubai, speak with a strategist at Greenwolf Advisors, or see how our corporate services team handles incorporation, bank readiness and ongoing compliance in the UAE and India.

This article is general information, not advice for a specific case. Free zone packages, government fees and tax rules change: confirm current requirements with the licensing authority, the Federal Tax Authority and your advisers before you act.