Starting a consultancy firm in the UAE might look like a daunting task. There are multiple legal requirements and licensing and compliance processes. Many aspiring consultants are kept away because of unclear processes and regulatory concerns. With the right guidance, establishing a consultancy business in the UAE is easy and rewarding.
JBC, Jitendra Tax Consultants, gives you the guidance you need to establish a consultancy firm in the UAE.
Why UAE for a Consultancy Firm?
The UAE is one of the best places to start a consultancy firm since it gives tax benefits, has a stable economy, and has low entry barriers. Among all, Dubai has become a global business hub where demand for consultancy services in finance, IT, management, marketing and other industries is high.
Steps to Establish a Consultancy Firm in UAE
-
Define Your Business Activities
Select what you want to offer consultancy services on. Economic departments in the UAE already categorise business. The correct category is supposed to ensure compliance and seamless operations.
-
Obtain relevant Approvals
Consultancy services have various categories that require respective approval from a government agency. Some of them include;
- Legal consultancy– Legal Department, Government of Dubai
- Real estate consultancy– Real Estate Regulatory Authority (RERA)
- Security consultancy – Security Industrial Regulatory Agencies (SIRA)
- Human resources consultancy– Ministry of Human Resources & Emiratisation
-
Select Jurisdiction
There are three options to set up a consultancy firm:
- Mainland: The Department of Economic Development (DED) will have to be approached for approval and the business can be operated from any part of the UAE.
- Free Zone: It provides tax advantages, full ownership, and a hassle-free setup but trade restrictions might apply.
- Offshore: Most viable for international operations; lower setup costs, yet no business in the UAE can be directly conducted there.
-
Name of Business
The name of your business must comply with UAE regulations. It should not contain any offensive terms or city names and the ‘UAE’ or ‘Emirates’ are on the list of restricted words. The name must be unique and indicative of consultancy services.
-
Obtain a Trade License
For running a consultancy firm, you would require a trade license. The required documents have to be submitted to the relevant licensing authority. After approval, pay the fees for registration.
-
Obtain an Establishment Card and Labour Card
After registration, apply through the immigration authority to obtain an Establishment Card, which is necessary for visa processing purposes of the employees. The Labour Card is issued by the Ministry of Human Resources and Emiratisation.
-
Apply for Visas
A residence visa is mandatory for one to work in the UAE. A medical test and a biometric data submission are compulsory. The free zone setup might include visa processing in their package.
Legal Compliance of a Consultancy Firm in UAE
To be legally compliant, you will require the following.
- Trade License: This enables you to provide consultancy services professionally.
- Passport Copy & Photo: Everyone must submit it.
- MOFA-recognized License (for Free Zones): Some free zones need Ministry of Foreign Affairs recognition.
- Financial Audit & Minimum Capital Requirement: Mainland businesses need to meet capital requirements.
- Government Approvals: Required from relevant authorities depending on the business type.
- External Approval: Required from relevant authorities.
- Partnership Agreement: If you have partners, a formal agreement is required.
- Health & Safety Compliance: Adherence to regulations to avoid fines or license revocation.
Advantages of Opening a Consultancy Firm in UAE
-
Tax Benefits
It has tax-free income and low corporate taxes, thus high profitability for consultancy firms.
-
Strategic Location
Dubai serves as a gateway to other international markets and access to various potential clients.
-
Economic Stability
The strong economy in the UAE and business-friendly policies that give a guarantee of security for consultants.
-
Government Support
Entrepreneurs are provided with incentives, free zones, and simplified business regulations.
-
High Demand for Consultancy Services
Opportunities arise because various sectors are found here where business needs expertise.
-
Networking and Growth
UAE is home to ample networking. The consultancy develops networks to engage and grow the client’s reach
Cost Structure for Consultancy Firm in UAE
Setting up a consultancy depends on many aspects, such as the structure of the business, space to establish an office, licensing fees, and other factors. Most of the free zones charge less with a rapid process for registration and have much more flexible options when it comes to opening a business in the UAE. However, the mainland has its advantages.
Choose the Right Business Consultants in UAE, JBC!
Starting a consultancy firm in the UAE is a great business opportunity. You need business consultants who are experienced and knowledgeable in the field and can guide you on how you can make your consultancy firm successful in the UAE. JBC is the best option for you.
