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There’s a reason you’re seeing more UK consultants posting Linkedin updates from Dubai Marina these days. Running a consultancy in the UK has become financially challenging with April’s corporation tax hike to 25% and higher-rate income tax. If you’re billing £150,000 annually, you’re handling over roughly £70,000 to HMRC once you factor in everything. That’s a problematic business model.
Dubai’s different, when the UAE introduced corporate tax in 2023, it was initially worrisome, but it’s set at 0% for the first AED 375,000 with no dividend tax. For a consultant earning £150,000, this means around £6,000 in tax versus £70,000 in the UK. The difference pays for your entire setup within months.
But this isn’t just about tax arbitrage. The UAE consultancy market hit $3.3 billion in 2021 and is growing at 12.7% annually through 2033. Strategy consulting revenues in the GCC jumped 24% to $838 million in 2021, while cybersecurity consulting grew 28% to $303 million.
The UAE government is actively diversifying away from oil, leading to heavy spending on consulting services. You’re not just saving tax—you’re entering a growing market.
In this guide, we’ll walk through exactly how to do it from the types of management consultancy licences available to the real costs and setup process so you can expand confidently, not cautiously.
If you’re a UK consultant earning £150,000, you already know what happens to your money. After income tax, National Insurance, and corporation tax, you’re left with roughly £80,000. Nearly half your earnings go straight to HMRC, and you’re probably wondering if there’s a better way to run your business.
Dubai offers exactly that. With 0% personal income tax and just 9% corporate tax on profits above £83,000, the savings add up quickly. A consultant at that income level could save between £40,000 and £60,000 annually, which means your setup costs pay for themselves within three to four months of operating.
The UAE government actively wants your expertise and has streamlined the process of getting a consultancy licence in Dubai. In 2021, Dubai issued over 72,000 new business licences, with professional licences making up 59% of them. The consultancy market is expected to reach $8.1 billion by 2033, growing at 12.7% annually, which shows genuine opportunity beyond just tax savings.
Tax structure comparison
| United Kingdom | Dubai, UAE |
|---|---|
| Personal income tax: 20% to 45% based on income brackets | Personal income tax: 0% |
| Corporation tax: 25% on profits | Corporate tax: 0% on first AED 375,000 (£83,000), then 9% above |
| National Insurance contributions | No dividend tax |
| Dividend tax on profit extraction | No capital gains tax |
| Capital gains tax on business sale | Free zone companies can maintain 0% corporate tax with QFZP status |
For a consultant earning £150,000 annually:
Market growth opportunities
The UAE government is diversifying away from oil dependency, creating substantial demand for consulting services:
Business environment benefits
A management consultancy licence in Dubai is your legal authorisation to provide professional advisory services. Dubai requires proper licensing through either the Department of Economic Development (for mainland) or a Free Zone authority.
Operating without one isn’t a grey area, it’s illegal and can result in fines, deportation, or both.
The licence specifies your exact business activities. You might think that sounds restrictive, but the activity list runs to over 2,000 options. For management consulting, you can include:
Here’s what matters for UK consultants: you don’t need specific qualifications to get a consultancy licence in Dubai. An MBA helps with credibility, especially for banking and bigger clients, but the DED doesn’t require it for licensing. Your professional experience carries more weight.
That said, if you’re doing specialised work in regulated sectors, legal consulting, medical advisory, engineering consultancy, or financial services, you’ll need to show relevant qualifications and possibly get regulatory clearances.
Most UK consultants get what’s called a professional licence rather than a commercial one.
If you’re solo or have a small partnership, professional licence is your route.
This choice determines your costs, where you can operate, and your tax structure. Understanding the trade-offs properly matters more than people realise.
Mainland registration
Mainland registration means you’re licensed through Dubai’s Department of Economic Development and operate under UAE commercial law. Your licence works anywhere across all seven Emirates.
You can work directly with government entities, bid on government contracts, and serve mainland clients without restrictions. The UAE removed the requirement for local sponsors in most sectors, so you can have 100% ownership. The trade-off is cost and complexity:
Mainland makes sense if you’re specifically targeting UAE government work or major mainland corporations that prefer mainland-licensed suppliers.
Free Zone registration
Free Zone registration means establishing your company in one of Dubai’s special economic zones. Each Free Zone has its own regulatory authority and streamlined processes designed to attract international businesses. Key advantages include:
The limitation is market access. Free Zone companies are generally restricted to operating within their zone or internationally. If you want to serve mainland UAE clients directly, you need either an agent/distributor arrangement or additional permits.
Some free zones now offer mainland trading permits, but it adds cost and complexity. For UK consultants primarily serving international clients or working regionally, this limitation rarely matters in practice.
| Feature | Mainland | Free Zone |
|---|---|---|
| Foreign Ownership | 100% allowed | 100% guaranteed |
| UAE Market Access | Full access | Limited, permits needed |
| Office Requirement | Physical space mandatory | Virtual office available |
| Setup Cost | £3,300-£6,600 | £1,250-£5,500 |
| Annual Renewal | £2,600-£5,500 | £1,750-£3,300 |
| Corporate Tax | 9% above £83k | Potential 0% with QFZP |
| Setup Timeline | 5-10 working days | 3-7 working days |
Choose mainland if you’re targeting UAE government contracts, need to operate across multiple Emirates regularly, or expect most revenue from mainland UAE clients. Most UK consultants choose free zone because it costs less, sets up faster, offers better tax planning, and works well for serving international clients or operating remotely.
IFZA (International Free Zone Authority) in Dubai Silicon Oasis is the budget-conscious choice. Setup starts around £1,750 for a basic package, you can handle everything remotely from the UK, and they’ll issue your licence within 24-48 hours once documents are approved. What you get:
The trade-offs:
If you’re keeping costs tight or running a digital consultancy where address doesn’t matter much to clients, it works well.
DMCC (Dubai Multi Commodities Centre) in Jumeirah Lakes Towers is the premium option. Setup costs £3,300 to £6,600, annual renewals run £3,300 to £4,400, but you’re getting something tangible for that premium.
Why consultants choose DMCC:
When you tell a client or a bank, you’re DMCC-registered, it carries real weight.
Meydan Free Zone sits between the two. Located near Downtown Dubai and Business Bay, it offers decent location credibility without DMCC’s premium pricing. Key features:
It’s less established than DMCC, so you don’t get quite the same banking smoothness or business community, but it’s significantly more credible than IFZA whilst costing considerably less than DMCC.
Step 1: Choose your business activities
Identify the specific consultancy services you’ll provide. Select from over 2,000 business activities available through DED.
List all activities you might perform, as adding activities later incurs fees (£220 to £660) and processing delays.
Step 2: Select business structure
*Note: Sole Proprietorship under DED applies only to mainland, not Free Zones clarify this distinction.
Step 3: Reserve your trade name
Choose a business name following UAE regulations:
Digital approval typically takes 1 hour (DED) or same day (Free Zones).
Step 4: Prepare required documents
For all applicants:
For UAE residents:
For specialised consulting:
Step 5: Choose office solution
Free Zone options:
Mainland requirement:
Step 6: Submit application and pay fees
| Application Method | Process Steps | Applicable To | Key Features |
|---|---|---|---|
| Online Application | 1. Register on the free zone’s online portal (e.g., IFZA, DMCC, Meydan) 2. Complete the application form digitally 3. Upload required documents 4. Pay fees online via credit card or bank transfer 5. Track application status through the portal 6. Receive digital approval and documents | Free Zones with digital portals | Fully digital process, faster turnaround, real-time tracking, paperless documentation |
| Offline Application | 1. Visit DED office or free zone authority in person 2. Submit physical application form with required documents 3. Pay fees at designated counters 4. Attend any required meetings or interviews 5. Collect physical licence and documents | Mainland or traditional free zones | In-person submission, physical documentation, longer processing time, may require meetings/interviews |
Approximate processing times:
Step 7: Receive your trade licence
Your trade licence includes:
Step 8: Apply for residence visa (optional)
If you plan to live in Dubai:
Entry permit application:
Medical fitness tests:
Emirates ID application:
Visa stamping:
Family sponsorship:
Step 9: Open corporate bank account
Recommended banks: Emirates NBD, Mashreq, RAK Bank, ADCB, FAB
Required documents:
Processing time: 4–8 weeks. Expect additional due diligence in line with 2025 AML rules.
Initial deposits usually range between £5,500 and £11,000.
*Pro Tip: Apply to multiple banks simultaneously to improve approval chances and reduce waiting time.
Step 10: Register for corporate tax and VAT
Corporate Tax (9%):
VAT (5%):
The timeline to obtain a management consultancy licence in Dubai generally spans 6 to 10 weeks, depending on business type and visa requirements. The process starts with finalising business activities, trade name reservation, and document preparation within the first two weeks. Submission and initial approvals occur in weeks two to four, after which you receive the licence and incorporation certificates.
Visa processing, medical tests, and Emirates ID registrations, if needed, typically take place during weeks four to six. Bank account applications and compliance meetings extend over weeks five to eight, with tax and VAT registration, accounting setup, and insurance arrangements finishing the timeline by weeks eight to ten.
The estimated cost for obtaining a management consultancy licence in Dubai typically ranges from AED 15,000 to AED 25,000 (approximately £3,300 to £5,500), depending on business structure (free zone vs mainland), number of visas, office requirements, and specific authority fees.
Annual renewal costs drop significantly. Free zone renewals run £3,740 plus visa costs, whilst mainland renewals cost £9,460 plus visas. You’re only handling renewals rather than initial setup, which makes years two and beyond much more affordable.
Management consultancy licences in Dubai must be renewed annually to keep the business legally operational. Renewal fees are usually similar to the initial licence cost but exclude one-time registration charges.
Consequently, free zone renewal costs typically range from AED 13,500 to AED 15,000 (approximately £3,000–£3,400), while mainland renewals range between AED 35,000 and AED 37,000 (£7,600–£8,000), depending on office rent and visa sponsorships. Before renewal, ensure your office lease (or flexi-desk agreement) is valid and any required Non-Objection Certificates (NOCs) are obtained.
Dubai Economic Department offers multiple renewal options including online, mobile app, offline centres, and even SMS renewal services. Failure to renew on time incurs penalties (AED 200 monthly) and risks license suspension.
The financial case for a management consultancy licence in Dubai works if you’re earning above £100,000 annually. Below that, your first-year setup costs might take 18-24 months to recover through tax savings. Above £150,000, you’re looking at 3-6 months recovery time, which makes the decision considerably easier.
But this isn’t purely a financial calculation. You’re relocating your business and potentially your life to a different country with different business practices, climate, and culture. Some UK consultants thrive in Dubai’s international environment. Others find they miss the UK more than expected.
The market opportunity is genuine, 12.7% annual growth in consultancy, government spending increasing, specific sectors like cybersecurity and strategy showing 24-28% growth. You’re not just relocating for tax efficiency; you’re entering a market with real demand and less competition than saturated UK sectors.
